Know How to Make Money As a Structured Settlement Buyer

Making money as a structure settlement buyer is uncomplicated, especially when you are dealing with the experts. All it requires is to have some extra cash to invest and registration with one or more structure settlement brokerage services on line. These portals deal in transferring all types of financial contracts. One can choose to buy a cell phone contract or even an apartment lease, however the best form of investment is a structure settlement on the market for sale.

Many people who win their claims for compensation for damages accept the most lucrative offer for fear of having to spend on court cases and lawyers fee. More than that they do not know how long the case might last or if they will win the case after all. The fear of losing the case will drive them to accepting whatever amount the defendant or his or her lawyers will offer them. To make the most of the offer the defendants representatives will offer a structured settlement, which is the entire compensation sum in installments called annuities, as opposed to a lump sum payout. The fear psychosis of losing the case prevailing forces claimants to make hasty decisions most of the time and they accept the offer.

While it may seem good at the beginning receiving all that money over a lengthy period of time, many claimants feel the pinch after some time and decide to look for ways to get the entire sum in one go. Here is where a structured settlement buyer makes money on the deal.

A structure settlement buyer offers to take over the agreement and become the legal recipient of the annuity to be paid out by the defendant. This is legal and safe. The original claimant agrees to transfer the rights to receive the annuity to the structured settlement buyer who in return for the agreement pays the original claimant the entire sum of the settlement minus a percentage. This percentage is negotiable and once it has been decided the structured settlement is transferred.

The structured settlement purchaser will, in most cases, keep 25 to 30 percent of the total amount of the compensation. The structured settlement buyer agrees to pay the entire processing and transfer amount out of this percentage. Or on the other hand, he or she may reach an agreement where this amount is shared by the seller of the agreement. Whatever the case may be a structured settlement investor makes a neat 20 percent on the deal.

A structure settlement purchaser is like a moneylender. The sum he or she pays for the purchase of the structure settlement is the principle amount while the annuity is the installment of the loan. The profit is the difference in the sum paid for the purchase and the total amount received in installments over a period of time.

Becoming a structured settlement buyer is a safer way to invest. The annuity is assured by law and the defendants companies will not default in payment for this reason. Apart from this the payer of the annuity is usually an insurance company that buys an annuity policy from the government or purchases an annuity property. This assures repayment and a profit for them at the end of the term of the settlement. They gain through tax exemptions as well on payouts to structure settlements. So, payments are guaranteed and the profits are high.


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