Is there a service I can use to manage my private lending?

Question

Is there a subscription base service I can use to become a lender much like a landlord would use Himlane or Turbo Tenant?  I have the capital but I am looking for a platform to manage receiving ACH payments as well as creating legal docs through templates to send to borrowers.  Please advise if a service like this exists.

Jeff S. · Answer

The private lending industry is awash in software solutions, @Patrick Henderson:

Find the Best Loan Servicing Software

These will help you run and organize your lending business. Of course, they are not substitutes for solid lending criteria, well-established practices, and the relationships that form the basis of most successful loans.

Alternatively, investing in a syndicated mortgage fund will defer all loan management to a sponsor, who would take care of this for you.

Chris Seveney · Answer

@Patrick Henderson

The one service would be a debt fund to invest in

Otherwise you can use a servicer but they won’t originate the documents. You could use an attorney to draft them or other links provided as mentioned by others

Melanie P. · Answer

Just a note that Plaid also offers banking verification services that give you a deep view into a prospective borrower (or tenants) banking history. Better than bank statements - by far.

Jeff S. · Answer

I should have added that a middle ground between entering data yourself into software, managing the loan on your own, and hands-off investing in a fund is to use a note servicer.

A note servicer will manage ACH payments, track property taxes and property insurance, manage late fees, provide invoices and reports, and much else.  Depending upon who you lend to, the law might require you to use a servicer.

Some servicers will provide loan docs, but I recommend using services like Lightning Docs or Doss Docs as they are attorney-based and are continuously updated.  Some automated loan document services seem to prioritize their interface and user experience over the quality of the documents themselves.

If you are new to this process, it’s best to avoid automated loan doc services altogether.  Your documents are the heart of your loan.   Instead, work with a lending attorney who can explain the laws and terms used in your loan documents until you feel confident navigating them on your own.  This does not preclude you from using a note servicer for other aspects of the process.

Bonnie Low · Answer

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Bonnie Low · Answer

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Is there a service I can use to manage my private lending?

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