Foundation is poured, are you ready?

Don't be Like these men....


The last important service provider you will need on your team is a servicing company.  This servicing company allows several things to happen and take place.  Most importantly, they track your monthly payments and act as a 3rd party between you and your borrower.  All communication is between the servicing company and your borrower.  This allows you to continue to work in your career and not have to worry about collecting payments and tracking for tax purposes, all monies received from the borrower.  So what does a servicing company provide?

  • 3rd Party collections of all monies owed by your borrower.
  • If payments are late according to your Mortgage/ Deed of Trust and Note, then the servicing company will send out notices of late payment, and they will calculate all late fees
  • They maintain all records of monies coming in and going out for each of your loans and can prepare your tax forms to give to your CPA.
  • They can send out Notices of default and begin the foreclosure proceedings for you if you decide that foreclosure is the only available option of settlement between you and the borrower.

As you can see a servicing company handles and performs ALOT of the activities that come with servicing a loan.  They keep you on the legal side of the tax man and ensure that you have documented proof of communication with your borrowers.  One of the highlights of using a servicing company is the fact that the borrower pays for their service!  Just like all the other professionals on your team, at closing, all your professionals are paid for as part of the closing cost!  Then if your servicing company requires monthly payments for servicing the loan, they simply add that into the payoff demand letter (The letter that is drafted when the borrower is finished with the rehab and they are selling the property) and those costs are calculated into the loan when the borrower sales the property.

If you would like to know of some of the servicing companies I have worked with and the pro's and con's then please shoot me an email and ask.  This wraps up the laying your foundation series for becoming a private mortgage/ deed of trust investor.  Should you have more questions and be interested in how you can further implement this strategy into your investing portfolio, please do not hesitate to reach out and contact me.  We will be setting up monthly video conference calls, and I will be establishing a monthly or possibly bi-weekly meetup group in the Tampa Bay area of FL.  If your ever in town you can always swing by and join us!  Here is to you and your success! 

Edwin Epperson

Spearson Investment Group LLC, 19046 Bruce B Downs Boulevard #413, Tampa, FL, 33647

Edwin Epperson III, is the Owner and Manager of Spearson Investment Group LLC.  Having started private lending in Florida in 2011, he has grown his company from a boutique private lending company to a mover and shaker in the south eastern united states.  Providing hard money loans, and even joint venture loans, he has grown his company to  rival the established lenders in Florida.  His personal attitude and unwavering loyalty to his real estate investors has kept his business on the cutting edge of investment loans to the rehab and new construction investors.