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When constructing a private note, a useful option is getting your note serviced by a loan servicing company. We recently went through this process, and we’ve found it to be efficient and beneficial. If you’ve decided to construct a private note, this episode is one you won't want to miss!
Today on Investing in Real Estate, Natali and I are detailing our personal experience with loan servicing companies. We’ll discuss the benefits and drawbacks, cost, how the process works, and more! Join us on episode 91!
More About This Show
On episode 37, we discussed how we set up a private money loan. Both parties agreed to the terms of the note, and we set up monthly payments. Although we trust our borrower, there are certain roles that go into private money loans that we were not comfortable performing.
For example, if you’ve arranged a private money agreement with a borrower, what would you do if they didn’t make their payment on time? Would you feel comfortable approaching them? Would you feel guilty about tacking on late payment fees? We just didn’t want to deal with those complexities. We didn’t want the responsibility of managing the loan.
So we sought out a loan servicing company to handle these duties. It turns out these services are incredibly valuable. Not only is the cost low, (ours is $15, per month), but it also provides a convenient online portal for both the lender and the borrower.
On today’s show, we’re getting into the nitty gritty of private note servicing! We’ll give the specific details of the company we work with, and how to find a servicing company that works for you. We'll also discuss the importance of an online servicing portal, and why it's important to think ahead when you construct your deals.
If you’re ready to begin building a passive income through rental real estate, book a FREE call with my team today. We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you’ll learn:
- Are their any downsides to a note servicing company?
- Where should your servicing company be located?
- What information will a note servicing company require?
- How should you incorporate this service in your note?
- And much more!
Get 20% off your order at Drobo with coupon code IRE20!
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