andrewg started this topic @ 14:42 on 07/10/2006
I've been searching through US business opportunity magazines for ideas and came across one which looked interesting.
The essence of the business is that one approaches people who receive annuity-type payments (ie. a regular stream of cash flows) and offer them a lump sum of money in exchange for the right to receive that stream of payments. These payments could be the income from a rental property etc.
The business profits on the difference between the price paid for the stream of payments and those payments that it receives.
Does anyone have any thoughts on this sort of business?
RE: Business Ideas
scottcarpenter | 08/10/2006 05:24 AM
From what you describe it appears you would act a broker then, and you would receive a commission on each sale.
So the usual challenge would be to connect sellers and buyers for this product. The other issues are -
* Is this type of sale legal/allowed in your country?
* If so, is there a market for this product?
I can think of a few other issues off the top of my head as well. If you purchase the right to receive income from a rental property, who owns the rental property? Who is responsible for maintaining the stream of income from the rental property (i.e. who pays the body corporate fees, maintenance, rental management fees)?
Similarly with shares - does this mean you receive any dividend payments, but the person who 'sold' the right to these payments still owns the shares? What if they want to sell the shares?
These are just my thoughts - perhaps we could hear from any members of the forum who are financial planners? 
Regards,
Scott
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