Does anyone have a decent inventory for these (or a wholesaler that you can refer me to)? I have a case that I'm working on with a broker and I'm having trouble finding some good options with my current providers.
Thanks.
Thanks.
Secondary Market Annuities
- Thread starter Tahoe Ray
- Start date
SMAguy
New Member
Good evening, I specialize in the Secondary Market Annuity asset class and have been perfecting this class for over 4 years. It is a very unique and frustrating product not only for the agent but also the investor. There have been a lot of changes to this industry that people need to be aware of and a lot of dangers as well. Hopefully I can help.
I can definitely refer you to a list that will satisfy your inventory needs for your clients.
If you are interested in speaking or need additional information on this asset class please PM me.
-Tyson Wright
I can definitely refer you to a list that will satisfy your inventory needs for your clients.
If you are interested in speaking or need additional information on this asset class please PM me.
-Tyson Wright
Last edited:
- 10,826
Hi Tyson, welcome to the forum. Could you go into detail on the dangers of SMAs?
SMAguy
New Member
Not a problem. These types of transactions have been going on for well over a decade now, the only difference is there are a lot more factoring companies, factoring competition and a lot more private retail investors. Prior to 2008, most if not all of these transactions were done with large institutions. When the credit crunch happened most of the banks pulled the credit lines from these factoring companies thus leading them to sell to individual investors.
We have been specializing in this asset class since 2009. Over that period of time we have been involved in well over 2,000 transactions with retail and institutional investors. So far, "knock on wood" we have not had a single purchaser loose their investment. Now I said "loose their investment" not "not receive a payment". (I will jump more into this below)
Anyone who tells you that these are safe investments are half right. In my professional opinion they are safe on three accounts, one if they are properly reviewed by an attorney, two if they are properly reviewed by an attorney who represents the purchaser/investor (not the seller) and three if the transaction is done by a firm who's process protects the client in every manner. All of these issues can be safe guarded against by not purchasing directly from the company who's best interests are not of your clients but their client the seller.
A few dangers of this asset class is one, the Insurance companies rating and claims paying ability, a risk we are all familiar with. Two, the factoring company supplying the product, are they reputable? Do they have all of the necessary steps, procedures, documents complete before the transaction is complete? Three, did the seller sign all of the documents prior to going to court? Was the court order forged by the factoring company, was the stipulation forged by the factoring company in order to push the case forward, did the factor amend the order during the 30 day amendment period with out the investors knowledge, thus redirecting the income stream to someone else? etc. etc.
The above examples are issues that have happened to some of our purchasers, and they may have not lost any money, but in some cases the checks may have stopped arriving temporarily until these issues are resolved.
I do not like to pretend that this asset class is free from issues like some agents will but I also do not want people to stay clear from this asset either. If I did not truly believe in this product and what it can offer I would not be devoting my professional career trying to make it a more viable investment product for agents to sell and consumers to purchase.
The great thing about the SMAs is that we are using these disadvantageous situations in our favor. We are constantly evolving our process and product to prevent these issues from ever happening. We have put protections in place to prevent every single one of the issues that I have witnessed and spoke about above.
I know this is long winded but I would be more than happy to speak with you in more detail if you would like. If so, please let me know.
-Tyson
- 8,707
Thank god you now have 20 posts and you can stop with the idiotic posts....Though I expect the spam will shortly be coming from you.
TheFactor
Expert
- 20
There are also factored account receivables. Same caveats apply but they can be a bit more lucrative.
