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Reselling Structured Settlements

Projected Income Potentially thousands to tens of thousands.
Costs to Start Minimal to high
Time to Start 2-6 months
Category Reselling Things

Our Side Hustles Breakdown

Structured settlements, often awarded in legal cases, offer long-term financial security. You can resell them as an avenue for instant liquidity. While the immediate financial boon is tempting, one must tread with caution, understanding the nuances of the deal, the legal implications, and the potential long-term impacts on financial stability.

cons-icon Cons

  • Potential Loss: You might receive less than the total value of the settlement over time.
  • Complex Process: Requires navigating legal, financial, and possibly tax implications.
  • Future Regrets: Immediate needs might overshadow the long-term security provided by the original structured settlement.

pros-icon Pros

  • Immediate Liquidity: Provides sellers with a large lump sum upfront, which can be crucial during financial crises.
  • Flexible Financial Planning: Allows individuals to adjust their financial plans based on changing circumstances.
  • Regulated Industry: Many regions have legal frameworks to ensure fair transactions.

Here’s a question: if you saw an investment opportunity and had the chance to go all in and win, wouldn’t you take it? Better yet, if you could pay all your student debt in one go, wouldn’t that be a game-changer for you?

This is what reselling structured settlements offers people, especially if you’re a skillful reseller!

To take advantage of this skill, we’ll explain reselling structured settlements and what you should watch out for before going for it.

An Overview of Reselling Structured Settlements: A Primer

Structured settlements are a series of monthly payments awarded to an individual due to a lawsuit settlement, often related to a personal injury.

The recipient of these payments can choose to get his cash in total instead of getting paid over a period of time. This is where reselling the structured settlements’ side hustle begins.

You can buy these settlements from their original recipients at a discount and profit later from future payments. This can leave you wondering: Why would someone take less than what they can?

Sadly, life can change drastically in the blink of an eye. Some individuals may need immediate financial help to pay off urgent medical expenses or surprising debts.

Others spot an investment opportunity to help them get more than they gave away, so they sell their structured settlements for a fair deal.

How Much Can Reselling Structured Settlements Earn You?

Reselling structured settlements can potentially earn you thousands to tens of thousands. The exact amount, though, varies according to several factors, starting with the value of the structured settlement payment.

A larger settlement naturally provides a broader margin for profit, especially if you manage to acquire it at a good discount. Speaking of discount rate, that’s the second most crucial factor that could affect your earnings.

Most settlement buyers charge 9%—18% of the total settlement’s value. The consistency between each sale could affect your profit as well.

A single high-payment deal can look attractive, but consistent small deals could increase your income over the year.

How Much Does it Cost to Start a Side Hustle Reselling Structured Settlements?

Starting a reselling structured settlement business requires more than general knowledge of the financial and legal costs.

For instance, while there’s no formal degree for this job, understanding the legalities and intricacies of laws is crucial. A seminar related to this can be helpful but can cost you around $500–$2,500+.

Once you’re done with that, you can prepare for the legal fees you’re bound to run across. After all, this business is heavily intertwined with legal processes.

Every deal you make will require paperwork and court approvals to ensure legality of reselling. The fees here could vary according to the deal’s requirements, but you’ll need at least $2500.

Another point you need to keep in mind is the capital.

Remember, you’re offering someone else a lump sum payment for their cash flow. Unless you have partners, this point can cast you alone anywhere from $10,000–$100,000+.

Your general ballpark is around $10,000+ with marketing and operational costs, excluding capital.

Where Can You Resell Structured Settlements?

Reselling structured settlements isn’t a one-track business venture forcing you to walk a particular path to get offers. You can do it alone or in collaboration with other platforms and companies.

Where to Independently Resell Structured Settlements

Many people appreciate teamwork but dearly love to work alone. If you’re one of them, you can start by creating a resale website for your business.

Building a professional website to showcase your services with a blog to educate people about structured settlement sales can significantly help.

You can also contact people in your network who want to liquidate their structured settlement. This can feel unnecessary as you’d know who needs what within your family and friends.

Still, don’t let it stop you from talking about your services. This point is for your immediate circle to know so they can share it with their circle.

Gig Economy Companies That Help to Resell Structured Settlements

If you want to let someone else handle the paperwork instead of starting a resale business from scratch, you can opt for prominent companies.

For starters, you have J.G. Wentworth. This company was founded in 1991 and specialized in many aspects, including purchasing structured settlements from sellers.

Other companies include Peachtree Financial Solutions, with JG Wentworth as its parent company. There’s also CBC Settlement Funding, which can help you sell your structured settlements.

Why You Should Consider Reselling Structured Settlements As a Side Hustle

While reselling structured settlements is a niche career path, it’s a rewarding one. Here are some of the main benefits of this venture:

  • High-Profit Potential: One of the most appealing aspects of this field is the high earning potential. A single good deal could set you up for some time.
  • Helps Make a Difference: The people trying to sell their settlements often need immediate cash. Be it for medical care, tuition fees, or living expenses, you’ll be helping them accomplish financial security.
  • Possible Scalability: With each deal you make, you gain more experience and expand your network. Over time, you might find yourself expanding this venture beyond a simple side hustle.

Problems With Reselling Structured Settlements

As with every business venture, reselling structured settlements has its drawbacks. The most popular ones include:

  • Legal Complexities: Because this is a purely legal and financial situation, you’ll constantly deal with laws and courts. For a rookie, navigating these waters can be challenging.
  • Long Waiting Periods: When it’s time to resell the structured settlement you bought, you’ll need to wait for a while. For the most part, it can take around two to three months to get full payment from potential buyers.
  • Upfront Costs: You’ll need a strong capital base to get this venture going. If we put aside licensing, marketing, and other fees aside, the settlement purchase alone could require substantial funds.

Frequently Asked Questions

Now that you’ve learned almost everything about reselling structured settlements, here are some of the most commonly asked questions:

Who Buys Structured Settlements?

Many individuals and companies buy structured settlements. For instance, there are specialized financial companies, like JG Wentworth, that deal exclusively with these types of transactions.

There are also private investors who might want to buy a structured settlement as a part of an investment.

How Long Does it Take to Get Money From a Structured Settlement?

One of the main drawbacks of this venture is the long wait time. You’ll need to wait an average of 45–90 days to get your lump sum settlement from the selling process. Though some cases finish in two months, others can drag on.

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