LandInvestors.com Forums **Ask A Question** Terms & Owner Finance – Software for Tracking, Reporting

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  • #2299

    Troy
    Participant
    Post count: 31

    Hello everyone, I am looking for advice/input from the members that have sold deals using owner finance terms, please share what tools, software, apps, or cloud based solutions you are using in your business to both setup and manage the deals. Hope to learn more about the best all-inclusive, cost effective solution, Pros/cons/costs, etc….

    Mike, you have been very successful selling deals using owner finance with interest terms. I appreciate your deal break downs with all the numbers, but what software are you using to take in payments, and manage/track your payment history, interest, and end of year reporting?

    Has anybody found a good all-inclusive, solution to take payments with interest, tracking of payment history (late/slow/stopped payments), and end of year statements and IRS reports for interest paid to date?

    Some solutions that have been shared within Success Plant are:
    1. Freshbooks and Stripe with Mortgage+Care
    2. Buildium.com – (installment contracts = 2.5X the cash price, no interest)
    3. Wave App – cloud based invoicing (ability to charge compound interest?)
    4. ZimnpleMoney.com (Impressive Loan and lease/rent payment services)
    5. Excel spreadsheet Loan amortization schedule (manually tracking)
    6. Outsource the note servicing to 3rd party Escrow/Loan servicing company

    @admin
    @jilldewit
    @mdugan
    @luketsmith
    @claire
    @jhill28
    @bheath619
    @daws2536

    Thanks – Troy

Viewing 14 replies - 1 through 14 (of 14 total)
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  • Luke Smith
    Moderator
    Post count: 1262
    ProAdvanced

    1 vote for Buildium because that is what I know and use. It is a one stop shop property management solution.

    Online payments cheaper than Stripe. They target property managers collecting rent on a regular basis that tend to be a lower risk higher dollar payment processing segment.

    Their payment system hooks into their accounting system that links to the properties so you can see financials on a business basis or property basis. It just freaking works.

    Starts at 40$ per month.
    Bumps up 1$ per unit. If you have terms deals pile up your subscription cost will go up. If you just flip land then inactivate the property when it is gone to not count in the subscription cost.

    You can still see all its data.

    mike dugan
    Participant
    Post count: 65

    I use quickbooks online for accounting and ccd/ach processing. 10/month,which I need accounting software anyway, so that is OK. invoice can be set to recurring, payments come in and automatically match up to invoice, etc. similiar cost to other processors – just under 3%

    At end of year I will have to manually deal with 1098 interest statements. I would love to have built in amortization schedules and ability for customers to see, but this works for me for right now. Been very happy with QB – nice because I can login in anywhere. Back in January I was on vacation and was able to sell/bill a couple of properties while staring at the ocean!

    Luke Smith
    Moderator
    Post count: 1262
    ProAdvanced

    Buildium also deposits the $ in your bank account the day after it is paid. They have a deal with Fuerte who does the payment back end. Fuerte charges $99 to set up and only ask for two months of bank statements to accept you. It takes about a week to set up the payment processing system.

    Luke Smith
    Moderator
    Post count: 1262
    ProAdvanced

    Mike, I like Quickbooks too. Use them for different business.
    They charge more for credit cards. It depends on your industry. Buildium is 2.5% stripe 2.75% Quickboooks close to 3%.

    Buildium has a system for property owners to log in and see their properties, tennents to log in and see their bills and payments etc. I also put the contracts in there.

    For other owners I have on the houses I manage it is sweet to just point them to the site to see all they need for taxes.

    Now I got an option deal where the owners can see the payments coming and going!

    The buyer can log in and pay. Statements go flying in all directions.

    I’m gonna shut up now, I just like that software.

    Troy
    Participant
    Post count: 31

    Hello Luke,

    I was impressed with the information on Buildium as well, especially for those who also have rental homes. Thanks for all the input on this solution. I do like the idea of simply using installment contracts at a hire sale price (without interest), it seems to be an easy solution to manage and track payments, especially when you first start selling with owner finance deals.

    I have been looking at ZimpleMoney as another affordable option, and it allows for note service (with interest tracking) and lease/rent payments. Not sure if it is capable of any other typical property management functions for houses. Curious if anybody has any experience or comments on this cloud based solution, ZimpleMoney for either type of deal?

    Price sheet:
    http://www.zimplemoney.com/ZimpleMoneyPricingPlans.pdf

    Troy

    Troy
    Participant
    Post count: 31

    Mike, @mdugan

    Thanks for the input on quick books. I too would like to get into the freedom lifestyle with this land investing business. That is what started this whole project. I am looking for stream-lined work-from-anywhere type solutions.

    I took a look at the QB website to learn more about their online service. Setting up the terms deals simple to be fairly straight forward. So help me/us understand how you (will you) handle the agreed to payment (principal and interest) schedule for a buyer that slow pays/stops paying. If you have running compound interest on a 8 year owner finance deal and the buyer decides a few months/years into the deal to not pay you on-time, or every month….how do you (will you) handle that accounting?

    Do you manually recompute the monthly payment amount outside of quick books and then reset the future payment schedule for the buyer each time?

    Thanks again for your help, Troy

    mike dugan
    Participant
    Post count: 65

    I dont break their payment into principal and interest in QB. I use an amortization created in Excel to let me know where they are at – this will handle late payments, no payments, extra payments, etc. I don’t worry about the number of remaining invoices to be generated being exactly right. When someone gets to where they think they are done paying, I will manually verify with spreadsheet. I won’t even open this spreadsheet until someone says they are going to pay off their agreement early. I will then go into QB and see if they made all payments on time, etc.

    again, quite manual, but how I am handling now. Wish their was a magical 3rd party plugin for QB to handle this, but none out there that I know of. Now that I think of it, maybe QB for real estate has it…

    Troy
    Participant
    Post count: 31

    Mike, Thanks for the clarification – it is all helpful information. I look forward to hearing about your future deals.

    Thanks again, Troy

    Jermaine and Faith Hill
    Participant
    Post count: 36
    Pro

    @troy

    I have not yet transition to an automated service. I am currently doing some research in what platform will work for our business. We are hoping to have this done by the end of the month. Right now I am looking at the recommendation from Luke and really like Buildium so far based on what I have read. Right now I am using excel based spreadsheet that keeps track of the amortization payments.

    Troy
    Participant
    Post count: 31

    Jermaine, @jhill28

    Sounds good, I was impressed with what I saw with Buildium as well. They seem to keep it all really simple.

    Also, I was looking at a CRM/project/business management software called Insightly.com that was mentioned in another post here on Success Plant. Its impressive software that integrates with a number of apps and other services. And, I was trying to determine what it may have to support owner finance deals. (invoicing, payments, etc.)

    It looks like it does integrate with Quick Books which has a credit card processing add-on app available through intuit. So if you are looking for all-in one integrated solution, you may want to checkout Insightly.com. and compare it to Buildium.

    Let me/us know what you decide to go with for your business.

    Troy

    Jermaine and Faith Hill
    Participant
    Post count: 36
    Pro

    Yes I sure will…..

    Brandon
    Participant
    Post count: 46
    Pro

    Has anyone looked at Cozy?

    https://cozy.co/

    I use them for my rentals and it is free. I am sure you could use it for land as well.

    Troy
    Participant
    Post count: 31

    Thanks Brandon. Looks like a great resource/tool…and its free. Look like there are adding new features soon.

    – Document signing and storage
    – iOS/Android apps
    – Income and expense tracking

    Thanks again.

    Troy

    Luke Smith
    Moderator
    Post count: 1262
    ProAdvanced

    @livefree nice user name and recommendation will have to look into that more too.

    There is a different one that I found through Stripe that does not have the accounting side like Buildium but does allow buyers to check out online!

    http://www.moonclerk.com

Viewing 14 replies - 1 through 14 (of 14 total)

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