what have you guys found is the best way to pay the lender the monthly payments when you take a property sub 2? Thanks a lot…
aseruti,
Personally I have found a Loan Servicing Company very beneficial as they handle the payments from my buyer and send the payment to the mortgage holder. If I have money coming above the real payment, added interest rate for instance they send me my money.
At the end of the year they calculate the interest deduction if you are selling on a Contract for Deed and send a 1099 to your buyer.
Plus the credibility you have with your buyer as the payments are not coming to you, but going to a Licensed and Bonded company.
John $Cash$ Locke
John -
What type of cut does your loan servicing company take for this service? I was quoted by someone local at 1/10th of 1% of the initial note balance. Thanks!
NoMoneyDown,
Usually $50-$75 to set up the account and $5-$7 dollars a month for each check they send out. When you figure all they do this is pretty inexpensive.
I don’t understand what the loan balance would have to do with setting up a Loan Servicing Company (LSC) account and I have seen hundreds of them set up for creative real estate investors.
John $Cash$ Locke
thanks a lot for your reply mr cash