Are you having problems receiving checks in the mail from the buyers you did seller financing or a lease option with? Are you worried about taxes and insurance being paid on time or knowing that they have been paid?
I recommend using an escrow account or a loan servicing center to collect and handle these concerns for you. I have seen an average fee of around $12-$20 a month for the general service. I make the borrower pay it each month.
Depending on who you work with you might find that they will send out montly billing statements to the borrower, receive funds, pay all property associated fees (sauch as underlying mortgages, insurance, taxes, and HOA fees), and a lot more. They might charge additional fees for certain services. It is a matter of speaking with them to identify what they fee structure is right now. They will transfer funds to the accounts that you want them to send the money too also.
When a payment is late, they will notify you right away and the borrower will recieve the appropriate late notice letters.
In most cases, I have not known them to start the foreclosure process for you, so you will need to handle that part, but they will have all of the necessary documents leading up to that point.
In some cases for an additional yearly fee they will send out 1099 to your borrowers for their year end taxes and yours too.
If you did seller financing and you want to sell your note, they normally have a list of note buyers interested in buying notes that they can refer to you.
It offers you and your borrower piece of mind. It helps you stay in compliance and accurately tracking all payments coming in and going out for that property.
Title companies, attorneys, and escrow companies provide these services nationwide. You don't have to have a local company do it...it can be a company located in another state. You just want to make sure that the company knows what is required in the area where the property is located.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125