Do you send monthly statements to your private investors?
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!