Setting Up Selling Financing - How do you "Do it yourself?"

[Josh Lonnquist]

Hello BiggerPockets people.  I am new to the real estate investment world and BiggerPockets, and I'm looking for some education.  I have purchased my first two investment properties in Indianapolis, two duplexes, working through an investment company.  So far all is going well and the company I'm working with is making the process easy.    However I'm trying to look ahead to the future and to be able to manage my own deals and property purchases.  One thing I would like to be able to do, or completely understand, is managing a deal through seller financing. In my uneducated mind, the basics are simple, the buyer and the seller determine the price of the property and agree on the financing terms, but after that what else is needed, who manages the agreed on financing etc.....

Any comments or direction are appreciated.  

Thanks, Josh

[Kevin Foster]

Good morning to all BP'ers!

@Josh Lonnquist and @Marv Nettles What you seem to be describing and asking about is what a servicer handles for the seller and buyer. A servicer typically acts as a neutral 3rd party between the seller and buyer who facilitates the timely collection of payments from the buyer and disperses them to the seller. Servicers also provide the amortization, calculate interest, pay-offs, additional principle payments, send out monthly statements or coupons and do the year end IRS notifications. Most can also hold reserve funds to pay the insurance, taxes or HOA dues typically on an annual basis.

If you would like to investigate our services further please feel free to send me a PM here on BP.

Thanks!