Yes, if you know state lottery winners some of them may be most anxious to share some of their prize money with you. By showing them how to receive cash today for some of all of their future lottery payments you can offer them a great service while at the same time possibly earn a handsome fee yourself. Let’s see what this is all about. Lottery winners have various motives for desiring lump sum moneys. Maybe they would like to buy a business available for $500,000 up-front cash which they could not buy, at least for the same favorable price, with the $100,000/year they are now receiving from their lottery they know they should be doing something to prepare for the time when the lottery payments would end. Maybe they would like to establish an estate tax cash reserve account to make sure their beneficiaries have access to enough cash to pay the substantial federal and possible state inheritances taxes that could be due upon their death because their lottery ownership. How about buying that farm in the country where conventional financing would not be available. The list of other possible reasons is endless.
Once you have established the necessary rapport with the winner and have helped this person determine how much pre-tax cash is desired a computation is done to determine how much future cash flow should be sold (the next 5 payments, half of each of the next 10 payments, all future payments, etc.) To generate the desired amount. The most important aspect of this calculation is knowing what you would be able to resell this income stream for to make it profitable for you and to cover all your expenses which mainly would be legal.
The next step would be to have your attorney contact that of the winner’s ( you should always want the winner represented by counsel in dealing with you). A formal lottery purchase agreement should then be prepared and signed by all relevant parties. Your attorney would then commence a court proceeding usually required to obtain the lottery payment assignment you now need. Your objective should be to have the future payments you are buying come directly to you or your assigns (investors) from the lottery commission or whoever is the direct issuer of the lottery checks.
At some point after you have the signed lottery purchase agreement from the winner you should be making the necessary contact to get this transaction placed with an investor, private or institutional. As the legal proceeding is taking place you may want to include this buyer in the process with their attorney working along with yours. An investor escrow account could be established into which the purchase funds are deposited only to be released upon verification from the lottery commission of the completion of the assignment.
The end result of your efforts should be a thrilled lottery winner able to do things not possible before because of now having a “substantial“ cash balance available. If the transaction was priced properly your investor would now be receiving an above market rate of return with substantial guarantees behind this investment (no foreclosure or late payment concerns here). And as the broker who either both found the winner and investor or who went to a third party for assistance in completing this acquisition you should have been able to earn a most worthwhile fee for your efforts.
As a closing note you should know lottery assignments are not do-able in all lottery states and a simple reading of the state law is usually not sufficient to determine yes or no. Your attorney should be used to guide you in this area as well.
Martin S. Granoff of Granoff Enterprises has exclusively been in the lottery acquisition business for about 5 years and has completed numerous lottery assignment transactions. He can be reached in south Florida at 1 800 869-6060, fax 1 (954) 370-1807
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