Any way to convert a silent 2nd into cash flow?

[Sean Dezoysa]

Is there any way to convert a silent 2nd note (no payments until balloon date) into cash flows?

Tangentaly related: what will selling such a note to a note buyer fetch for say, a maturity date 5 years out?

[Matt Devincenzo]

Sure this is the old 'J G Wentworth' we buy (insert long list of slow or future payouts) at a big discount to create a ROI. It's just a time value of money question...you'll probably need to provide an investor with ~12%+ return. For context if your future payout is $40.8K I could give you 60 payments of $500/mo (~$30K total payout). That achieves around a 12% return (quick math so my numbers may be a bit off). But you get the picture, you're going to take a 20-30% haircut depending on the structure of the 2nd, and the structure of the payout you're trying to achieve.