Sign Colorado Banking Promissory Note Template Online

Industry sign banking alaska promissory note template online

so this year i earned over two thousand dollars entirely passively from cash that i just had sitting in the bank by using a promissory note here's exactly how i did and how you could do it too towards the end of last year i stumbled into an opportunity that has been one of the most reliable passive income sources of 2020 for me now i was working with an early stage startup and they needed a little bit of cash about 20 000 to float them to cash flow positive territory they were looking at things like stripes cash advance feature but once you went down the rabbit hole of learning about how the payback period works and how the interest rate works and things like that they ended up looking at paying a 11 to 10 11 to 12 interest on that and i knew i had cash sitting in my investment storage account that i didn't have any use for right now i didn't have a real estate investment coming up so i could use this so i started doing some research into promissory notes and learn that a promissory note is actually very simple to put together especially with a uh with someone that you trust to actually pay you back so i ended up structuring a promissory note for about 10 annual interest for me and earning me about 2 200 over the year so this is a good time for that disclaimer where i am not a financial advisor i'm just a dude on youtube teaching you what i learned and how i'm investing my money so do with this as you will promissory notes are actually very simple to put together especially when you do a non-collateralized or non-secured promissory note like i did so a couple of things you should know before you offer your cash and terms of a promissory note is one you should know that you don't need that cash anytime soon because it's very unlikely that you're going to be able to get the lendee to pay that cash back early unless you work something in the contract where they're obligated to do that which i did not and i haven't needed the cash since the other thing you should know is that you sh you can trust them to pay you back so i did an unsecured promissory note which is more risky because there is no collateral behind the scenes now if you're working with someone that it's a little higher risk of an investment this was not the case for me you may want to look into doing a collateralized or a secured promissory note which there's plenty of templates online to figure this out i would definitely recommend talking with a lawyer to put this together properly and it's kind of out of the scope of this video so the first thing you need to do to put one of these loans together is to come up with terms so we put together a 12 month term with a 10 interest amortized over the time period you can also do interest-only payments which is a lot simpler of a payment structure with a balloon payment at the end but that does require the lendee to have a little bit more knowledge in terms of making sure they have the cash to pay at the end next we need to put the contract together i will link down in the description a template contract that i used i pretty sure i just found this on google somewhere you can also reach out to an attorney they typically have templates or they can hand craft one for you for the low low price of whatever their hourly rate is these are not complex things especially in the unsecured promissory note space so the template i have down below should serve you well but again i am not an attorney or a financial advisor so please consult one before you use this put the payment schedule together if you're doing an amortized payment that is a lot more complicated to put together and i also have a link in the description for a spreadsheet that will help you put those payment terms together it's the exact spreadsheet that i use to put our payment terms together and i hope it helps you because amortization schedules are really complex to put together put that all together on a single document get assigned by both parties and you are done now you just sit back and collect that interest every single month as well as your principal if it's an amortized payment so every single month i get 2200 payment in my bank account part of that as principle part of that is interest at this point i'm nearing the end of the term of the loan so most of it is uh as principal at this point so that is how i have earned 2 200 this month this month not this month this year on passive income with cash that was literally just sitting in my bank account is incredibly easy to do and i highly recommend it if you have some cash saving around you have nothing to use it for and you know someone that needs some money i hope this was helpful if it was share with someone that might like it and hit that like button subscribe and i will see you guys next time peace