After you close - use a loan servicer to collect payments.

However, in recent years, I've seen this used as a methodology of raising money to buy low barrier of entry real estate and make sponsors very wealthy collecting fees while leaving the LP's with nothing but capital calls and suspended distributions.

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

These guys talk a good talk and collect Appraisal Fees.

The best part, they only get paid if I am collecting rent.

And they still owed me 200 dollars so I “reminded” them to pay again and I’ll be up there on Thursday to collect.

@Matthew Wright you're going to have a hard time doing this.Currently, you are bypassing a LOT of regulation requirements by letting the prospects pay the 3rd party directly.If you want to collect Application Fees, you will need to take on all the responsibilities & corresponding liabilities of Fair Credit Reporting Act and Data Privacy regulations. 

What app do you recommend to screen for tenants and collect rent?

At HIS Capital, we collect payment for third-party services such as appraisals, background checks, and credit reports.

My gut response is for us to sell at 2 year mark and collect the equity (tax free).