What is a cash note?  I'm referring to the kind that is associated
with a specific "get rich quick" scheme.  Thanks!

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Request for Question Clarification by elmarto-ga on 26 Mar 2003 07:18 PST

Hello cschulte!
The only definition for "cash note" I came across is "paper currency".
I think the "get rich quick" scheme you're talking about is the one
that requires you to mail five one dollar bills to five different
people, and then expect to receive thousands of dollars. Do you want
me to post an answer explaining the scheme?

Best regards,
elmarto

There are "cash flow notes" of different kinds, such as business and
real estate:

Business:

http://www.dalmarai.com/business-notes.html

Unlike real estate notes, which are structured for up to twenty five
years, business notes are typically structured for five to ten years.
Businesses are simply too risky to wait that long to be repaid. It is
due to this high risk why most business (up to 85%) are owner
financed.
Banks are generally unwilling to lend money to purchase small
businesses
as most fail within the first two years of operation. Given all this,
business owners are left with no choice but to offer owner financing.
They accept a cash down payment for part of the transaction and a
promissory note amortized for several years for the balance.

Needless to say, there are many business owners out there with
unwanted notes and would love to sell them for a cash lump sum.


Real Estate:

http://www.dalmarai.com/real-estate-notes.html

Real Estate sellers often choose to finance the loan themselves
because
they have no other option at the time, and buyers for the most part
agree to this type of financing because they don’t qualify for the
traditional loan. Many sellers are therefore very willing to sell
their monthly payments for a lump sum cash settlement.

Most get rich schemes are somewhat dishonest so "cash note" could mean
almost anything. The name suggests that the party described in detail
agrees to pay whoever presents the note $100.00 plus perhaps 6%
interest or some other amount, so the note is just like currency
except the next person has to guess that they can locate the
person/corporation named in detail and that they will really payup as
promised. Similar instruments are sometimes called barrer bonds. Both
are likely illegal unless approved by the SEC = Security Exchange
Commission or other agency, but enforcement is spoty.   Neil

That would be great, thanks!  And thanks for your quick reply!

Catherine