Investor · Windsor, WI · Member since 2014 · 73 posts · 15 votes
I bought a property using private money, and I would like to electronically send the monthly payments directly into the private lenders' bank accounts. I would prefer not to use a third party site (ie Dwolla, etc) where they have to sign up for an account. I just want the money to show up in their account, and make it as easy as possible for the lenders. I have the account and routing numbers for each lender.
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
9y
I have several borrowers who pay me through the ACH system. They set it up on their end to deposit the payments into my account monthly. There is no paper check this way.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
9y
You can use the online bill pay feature from your bank. It will "electronically" deduct the money from your account. In actuality your bank will cut a check and mail it to your lender - so they will have to deposit. Not exactly what you are looking for but it is how I pay distributions to my investment partners.
It's a paypal like service that is usually used among friends to "settle up" , it links bank accounts. I've not tried it yet but others who frequently owe me small amounts have asked me to set up an account for them to pay me.
Simply use the auto-pay service at your bank as mentioned.
Read your profile, congrats, but I can't help thinking of the relationship between you and your private lenders.
Often, investors will work with a select few investor/lenders cross lines of syndicating and brokering activities working with a "pool" of non-regulated lenders.
Also, remember that funds from one investor should not be used to pay another investor, which is a common mistake, law enforcement and regulators put such transactions in the ponzi scheme category.
Nothing implied here as to your activities, just the potential of issues, but ensure you have an attorney look at your big picture of operations. Good luck :)
Investor · Windsor, WI · Member since 2014 · 73 posts · 15 votes
9y
Thank you @John Thedford, @Don Harris, and @Bill Gulley. I appreciate the tips. I think I'll try the Bill Pay service with my bank and see how that works. Thanks for the advice Bill. Yes, we keep it very simple with Promissory Notes and Mortgages for each property, but definitely something to be careful about.
Investor/Landlord · Farmington Hills, MI · Member since 2011 · 1k+ posts · 1k+ votes
9y
I have several borrowers who pay me through the ACH system. They set it up on their end to deposit the payments into my account monthly. There is no paper check this way.