How to collect Owner Finance Payments?

[Rick Edgeworth]

I recently owner financed a property but I'm not sure the best way to collect payments to keep up with the balance as we go along. I was told I could set up an account at a credit union or bank but I'm 0 for 3 on CU and 0 for 1 on banks. What's the best way to do this?

[Kevin Moen]

You can google "Note Servicing" and get a bunch of results. We typically use FCI or National Asset Mortgage. NAM is probably better suited for a seller financed note. I would strongly recommend using a servicer as you are likely not familiar with a CFPB regulations, and you need to keep extremely tight books for servicing your own loan, which most us investors are not well equipped to do. Plus if you ever want to sell your note you are going to have a tougher time is you are self servicing.