Do you send monthly statements to your private investors?

2 Replies

Hi all,

I recently completed my first single family rehab project (!!!), which I turned into an unintentional brrrr and ended up renting and refinancing.

I have a private lender who will be receiving monthly payments of principal and interest going forward, so I wanted to pick the brains of some of the more seasoned investors out there about the question of reporting.

Do you send regular statements to your private money lenders? If so, do you report monthly, quarterly, or yearly? I'd like to have some way to track the amount of principal and interest being paid each month, as well as the remaining loan balance. If you have experience issuing these types of statements, any input would be appreciated. And if anyone has access to simple forms or templates for this, that would be great too!

Also, I'm assuming that I will need to issue some sort of year-end statement or 1099 so that the lender can report the interest income on their taxes. Any input on this would be welcome as well.

Alternatively, if anyone knows of an existing forum thread that covers this topic, please point me in the right direction! I have tried searching the forums but haven't been able to find specific posts on this.

Thanks in advance!

Marc

Hi Marc - Congrats on the final project! So all private lenders are going to have different requirements from their borrowers. I would ask your lender what the best option is and how their current borrowers are handling this. 

Originally posted by @Hannah Wollmershauser :

Hi Marc - Congrats on the final project! So all private lenders are going to have different requirements from their borrowers. I would ask your lender what the best option is and how their current borrowers are handling this. 

Hey Hannah,


Thanks so much for jumping in on this thread!

So full disclosure, the private lender on this deal is a family member. They will be receiving monthly principal and interest payments going forward, so I wanted to establish a practice of sending out some sort of regular statements which state the amount being paid and the remaining loan amount, etc. They do not have any specific requirements, so it's up to me to come up with the statement format and frequency. But I want to come up with a convention now and stick to it, so that I'll be able to do the same on future deals with other investors!

Have you (or anyone else reading) ever generated monthly statements for a private (non-professional) investor?

Cheers,

Marc