0
Cash flow notes are legally binding contracts which document the promise of the borrower to repay the lender. They often appear in various wealth schemes involving real estate. Long story short you won't get rich quick off them and you could lose money just as easily if you aren't very careful.
What else can I help you with?
What is a real estate cash flow note?
Cash flow notes are legal documents that promise the borrower will repay the lender. There are currently 60 types of cash flow notes. Read more at http://askville.amazon.com/exact-definition-term-cash-flow-notes/AnswerViewer.do?requestId=32026025.
What is cash flow when referring to the accounting term?
The term cash flow is a loose term in accounting that refers to the amount of cash available over a fixed period of time. Subset terms include net cash flow and operating cash flow.
what does a cash flow note look like?
cash flow note is a business term used for a working budget that tells you how much cash your business actually has.With the use of a Cash Flow, your business will have more money and a road map for the future.there are also such things as realastate cash flow notes and they do not help you get rich but they can sure make youalot of money.
What is the future cash flow of cash?
The term "future cash flow(s)" describes cash that will be received in the future.
Long term loans are repaid from what source of cash flow?
Long term loans are part of cash flow from financing activities.
Guide To Cash Flow Notes?
You may have heard the term 'cash flow note' and have no idea what it means. In the most basic terminology, a cash flow note is essentially a legally binding contract that says a borrower must repay a lender. There are many types of cash flow notes. The most common ones include real estate notes and structured settlements. Usually, cash flow notes are secured by something. For example, a real estate note is secured by whatever property is on the note such a house or building. If the borrow defaults, the property can be seized. Cash flow notes can be bought and sold as well. For example, someone can sell their cash flow note for a flat rate instead of collecting money over a period of time. As a result cash flow notes are often hot items for real estate investors. Cash flow notes aren't just tied to real estate. Structured settlements are cash flow notes that cover a wide range of areas. If you receive compensation as a result of an injury from a person or company you will likely receive a structured settlement. This settlement is secured by insurance companies that pay you a certain amount of money each year over a designated period of time. This is the same theory that is applied to winning the lottery. If you win $100 million in the lottery, you can choose to receive annual payments or a lump sum payment. A lump sum payment is typically a small percentage of what you would get if you followed through on the annuity plan. Structured settlements are geared toward long term financial compensation. Like real estate cash flow notes, structured settlements can also be bought and sold. Another common form of cash flow notes is account factoring. In this case, a company sells its invoices to a factoring company in order to be paid immediately. The customer is then billed through the factoring company. In this case, the credit of the customers is more important than that of a business. Cash flow notes may seem confusing because there are so many types. The principle in all of them is the same though. It is a contract between a creditor and debtor or a buyer and seller that promises payment over time. Cash flow notes can be bought by investors or other entities that in turn provide the recipient with a lump sum payment. They then possess the cash flow note and are afforded the same security as the initial person on that note.
How do you enter the journal entries of short term notes transactions?
debit cash / bankcredit notes payable
What are the cash items in a cash flow statement?
Cash items in the cash flow statement encompasses all items that can be categorised under cash and cash equivalent. these include cash, bank, bank overdraft, short term investment.
Where is decrease in short-term investments placed in cash flow statement?
A short term investment isn't always placed in a cash flow statement. When you are looking at a problem for a cash flow statement, and the additional information section says something about selling a short term investment, then the cash received from the investment is placed in the operating activities section. But if you are just looking at the balance sheet, see a decrease in the short term investments account, but no additional information is given about STI's, then you don't place the decrease anywhere. It also depends on if you are doing an indirect cash flow statement or a direct cash flow statement.
How do you calculate free cash flow?
Free cash flow is calculated by subtracting capital expenditures from operating cash flow. This formula helps determine how much cash a company has available after covering its expenses and investments in long-term assets.
what is a cash flow note?
In the language of the private cash flow business the word "note" is shorthand for promissory note. While it is easy to get tripped up in the various types of notes, this term refers to an official IOU; the right to collect payments based on terms outlined in the promissory note itself. http://ezinearticles.com/?What-is-a-Cash-Flow-Note?&id=1443655 what is cash flow note A cash flow note is a written document where someone promises to pay. The amount, the interest rate and the length of time will be printed on the note. It is a promissory note or a debt. To use them you would be a debt collector.
What does the term cash flow refer to?
Cash flow refers to both money being spent and money earned for a business or an individual's personal finances. A positive cash flow is when you are earning more money than pay out.
