RE: Does that mean29 Oct 2018 08:46
The company makes it's money from fees , management fees and from the mark-up from the initial deal and then the percentage upon cashing in policies. So, all in all there is a steady stream of cash coming in from each deal.
The trick is to add more and more contracts, as the more contracts you have, the more consistent the money is. The addition of contracts is essential because as the group of policies included in a contract is A) a relatively small number of people, B) might die sooner or later and C) the more contracts you have, equals more policies under management and more policies being cashed in at a more consistent rate.
If you only have 100-300 policies, these could potentially take 10 years for the bulk of them to be cashed in or it could be 1 year. However, if you have 1000-2000 policies under management, your cash flow will greatly improve.
One thing I think is certain, once ALGW sign the next deal it will allow other investors to invest in these instruments and have ALGW manage them