Do they use a servicing company to make the payments directly to the , or do they make payments directly to the seller and hope they pass them on to the lender?

A savings to put deposits and another account for everything elseyou don't need separate bank accounts as accounting software will classify all of those items.

I’m struggling to understand why all of this is necessary just to use their property management software.

A third party company that integrates with our system.

What would be considered the easiest program for small hard money lenders to use to track loans and history and sending out 1098 's? Im a small lender.

@Alec Barnes As the owner of a property management company in Texas, I completely agree that a solid screening process is essential for placing quality tenants.

Also look at pricing softwares and adjust accordingly.

Which companies did you choose?

My wife and I also own the only interior design company specifically for real estate investors, Ivory Home.

I know people who do this and I do not believe there are issues with it, but speak to an attorney and they should probably notify the company if they are an employee of that company that they are doing this.