馃攳
ZimpleMoney Review: Is this the Best Loan Servicing and Payment Collection Software? - YouTube
Channel: REtipster
[0]
so if you've ever done a cellar finance
[1]
real estate deal one of the things you
[3]
probably know is that as part of your
[5]
closing process you have to figure out
[7]
who is going to handle the collection of
[10]
these payments for the life of the loan
[12]
are you gonna have the borrower's send
[14]
these payments directly to you or are
[16]
you gonna use a loan servicing company
[17]
and have the borrower sent payments to
[19]
some third party and have them manage it
[21]
I wouldn't say there's necessarily a one
[23]
right or wrong answer but I will say
[25]
some choices are definitely going to
[27]
involve a lot more work from you than
[29]
others and one of the options that I
[31]
just recently learned about is this
[33]
company called simple money yeah what
[35]
makes them unique is that you don't
[37]
necessarily have to give you a little
[38]
servicing company involved but through
[40]
their service you can sync up with the
[43]
borrower's bank account of their choice
[45]
and have their monthly payments
[47]
automatically withdrawn and when you do
[49]
it this way they don't have to send any
[51]
checks anywhere they don't have to
[52]
remember to make the payment it just
[54]
comes out automatically which for
[56]
obvious reasons makes it a lot easier
[58]
for them and for you and drastically
[61]
reduces the likelihood that they're
[63]
gonna have a late payment or a missed
[65]
payment because it's just happening
[66]
automatically so in this video I want to
[68]
just take you through the simple money
[70]
system and just show you how it works
[72]
and as I think you'll see it's pretty
[73]
straightforward and pretty easy to use
[75]
and you know that's obviously not
[77]
something you have to do but if you're
[79]
looking for an alternative that is a
[81]
heck of a lot easier than asking the
[83]
borrower to manually mail you checks
[85]
every single month this is definitely an
[88]
option you should be looking into so if
[90]
you want to follow along with me I'll
[91]
show you how it works all right so when
[93]
you first get to simple money as a
[94]
website you're gonna see a page that
[96]
looks something like this and all you
[98]
have to do is pretty much exactly what
[100]
it says you just have to go ahead and
[101]
register so I'll go ahead and do that
[103]
right here let's go ahead and fill this
[104]
stuff in and then click this thing down
[106]
here saying that you've read the Terms
[108]
of Use and you accept it and go ahead
[110]
and click register and then the system
[112]
makes you go through the standard
[113]
process where it sends you an email and
[114]
you have to go ahead and confirm that so
[116]
I'll go and do that quickly okay so I
[120]
got the email I click the link and then
[122]
it brought me here to this page saying
[124]
that the registration is confirmed so
[126]
once that's done we're going to go ahead
[127]
and go up here and log in and once I
[129]
input my login credentials just go ahead
[131]
and click this
[133]
and then this is what it looks like once
[136]
you first log into your account
[138]
and simple money has a number of
[140]
different pricing plans and depending on
[142]
how frequently you are extending loans
[145]
to people that should sort of determine
[147]
what kind of plan you sign up for this
[149]
right here is an outline of the plans
[151]
that they offer at the time of this
[152]
recording and what those prices look
[154]
like and if you scroll through this what
[156]
you can sort of notice is that really
[159]
for the most part all these fees in
[161]
transaction costs are pretty similar
[163]
across the board the main thing that
[166]
differentiates these plans from each
[168]
other is this line right here and then
[171]
also the one above it the subscription
[173]
plan cost so as you can see here there's
[175]
this one called essential and whenever
[177]
you sign up for a new account that's
[178]
automatically the one that you have and
[180]
the good thing about it is that it's
[181]
free but the downside of it is that for
[183]
every new loan you create it's gonna
[185]
cost you a hundred fifty nine bucks to
[188]
set that up which is kind of steep if
[190]
you're somebody who's gonna be extending
[192]
loans on a pretty regular basis say if
[194]
you're doing two or three or more per
[196]
year in those cases you're probably
[198]
gonna want to look over here at these
[200]
business plans called the plus and the
[202]
Pro and the main difference between
[203]
these two is that they both have a
[205]
monthly subscription cost plus is twenty
[209]
bucks a month pro is thirty five bucks a
[211]
month and the set-up cost for a new loan
[213]
are pretty close I mean they're
[215]
basically the same thing
[216]
one is thirty nine bucks one is
[218]
thirty-five bucks but the main
[219]
difference between these two is this
[221]
right here where it talks about being an
[223]
ACH merchant with the pro account
[225]
you basically have to send in an
[228]
application and get approved and then
[229]
pay another three hundred ninety five
[231]
bucks once you get that approval but
[233]
what that means is that once you have
[235]
that approval it actually gives you
[237]
quite a bit more power which is a little
[239]
bit different from the Plus account with
[241]
a Plus plan and whenever you set up a
[242]
new loan what's gonna happen is you will
[244]
input the email address of your borrower
[247]
and the system will send them an email
[249]
and the borrower can set up their own
[250]
account where they enter in all their
[252]
own bank account information and it's
[254]
just completely in their Court and in
[255]
their hands to go through those steps
[257]
and set it up correctly on their behalf
[259]
so it's kind of hands off for you and
[262]
depends on them to take some steps and
[264]
complete that process however with the
[266]
pro
[266]
account you can actually take their
[268]
information assuming they provide it to
[270]
you and you can fill this stuff out for
[272]
them so it kind of gives you more
[273]
control over making sure that
[276]
information gets put into the system so
[278]
if you're somebody who's gonna be doing
[279]
like dozens of these things a year and
[282]
you may want to consider the pro account
[283]
simply because it gives you a little bit
[285]
more freedom and control over the
[287]
process of setting up a new loan but
[289]
just looking at somebody like myself the
[291]
Plus account is probably what I would
[293]
sign up for just given my situation
[295]
where I always have a handful of seller
[297]
finance deals out there at any given
[299]
time and in any given year I might add a
[301]
few new ones to the books but I'm not
[303]
really somebody who's doing like
[304]
hundreds of these so as far as I'm
[306]
concerned the Plus plan would be more
[309]
appropriate for me but again that's
[311]
totally in your court you can decide
[312]
what you want to do with that I'm just
[314]
sort of letting you know how I would
[315]
look at that so with that in mind if we
[318]
go back to our account here I'm gonna go
[320]
over here where it says account click on
[323]
that and then what I'm gonna do is I'm
[325]
gonna upgrade my subscription because
[327]
right now I just have a simple money
[329]
essential and that's not really the long
[331]
term account that I would want to have
[333]
in my situation so go ahead and click on
[335]
this and what I want to do is simple
[338]
money Plus which is gonna cost me 20
[340]
bucks a month and if I wanted to do
[342]
simple money Pro I could go down here
[344]
and click this and send it an
[346]
application to get approved for that but
[348]
again I'm just gonna stick with this one
[350]
for now and I would click on this and
[352]
click new account and this is where I
[354]
would just put in my credit card
[355]
information to pay for that monthly
[358]
subscriptions I'll put that in right
[359]
here and then once I got that in I'll
[361]
just click Submit and there we go just
[364]
like that I am already at the simple
[366]
money plus subscription plan so in order
[369]
to create a new loan let's just quit go
[371]
through that and I can show you just how
[373]
easy that is all we got to do here is go
[375]
up here where it says start a new
[377]
contract don't click on that and then
[379]
I'm gonna go here and click on premium
[381]
loan tracker that's the fully automated
[383]
system that's going to take these
[385]
payments out automatically so I'll click
[386]
on that and then once we're here we're
[388]
gonna see this page and all we have to
[390]
do is start entering in all the loan
[392]
information which should be detailed on
[394]
the note or the land contract or the
[396]
deed of trust or whatever agreement you
[398]
have
[399]
the borrower and the lender and keep in
[401]
mind you can use this whether you are a
[403]
borrower or a lender in my case I'm
[405]
using it as the lender but if you're
[407]
ever trying to buy a property with
[409]
seller financing or if some reason
[410]
you're trying to set up a loan where
[412]
you're borrowing money from somebody
[413]
else for whatever reason just keep in
[415]
mind you can use this for that exact
[417]
same purpose so just go ahead and put
[419]
this in here call this example loan loan
[422]
I'll just put $20,000 interest rate nine
[426]
point nine nine percent we're gonna say
[428]
that this is amortized and then the loan
[431]
term is going to be sixty months and
[433]
then payments are made monthly calculate
[435]
interest from we're gonna say the
[438]
closing date for this one was May one so
[440]
we'll click on that and payments start
[442]
date we're gonna say the first payment
[444]
is due on June 1 in grace period we're
[447]
gonna say 15 days in this case late fee
[450]
would be a flat fee and that would be 25
[454]
bucks and these are just numbers that I
[456]
typically use I'm not saying you have to
[457]
do this this is just how I do it and
[459]
then NSF fee we're gonna leave that at
[461]
15 bucks that's just if the borrower
[463]
doesn't have sufficient funds in their
[464]
account when the system goes to
[466]
automatically withdraw their payment
[468]
it's just gonna give them a fee of 15
[470]
bucks and then right here the nice thing
[472]
is it also allows you to add some
[475]
additional fees to the payments so for
[479]
example whenever I do a self-closing for
[481]
a seller finance deal
[483]
I'm always charging at least some or in
[486]
the neighborhood of like one hundred
[487]
ninety nine to two hundred ninety nine
[488]
bucks as like a closing or doc
[491]
preparation fee because make no mistake
[493]
it takes a lot of extra work on my part
[495]
to create those documents and facilitate
[498]
those closings so in this example I'm
[500]
just gonna put $1.99 in there if a fee
[502]
description I'll just put closing fee
[504]
like this we're gonna add it to the
[506]
payment then we're gonna add another
[508]
reoccurring fee and this one's gonna be
[510]
25 bucks and this is gonna be a
[512]
servicing fee and if you ever do use
[515]
like a loan servicing company typically
[518]
the cost for those services is 25 bucks
[521]
or 15 bucks or somewhere in that
[523]
ballpark so that really is a pretty
[525]
reasonable additional cost to tack on to
[528]
those monthly loan payment
[530]
so we'll put that there like that and
[531]
then we'll click here where it says
[532]
recalculate and this shows us what that
[536]
monthly payment is gonna be and we can
[539]
also even show the entire payment
[541]
schedule if we want to and it'll detail
[542]
all that right here and then we'll just
[545]
go ahead and click Next
[546]
the next step is to put in the email
[548]
address of the borrower so what I'm
[551]
gonna do here is I'm gonna put in
[552]
another one of my email addresses just
[554]
so I can show you what it looks like
[557]
from the borrower's end when they get
[559]
notified of this new loan that's been
[560]
created so I'll put my alternative
[562]
address in here and then click Next and
[565]
then it just goes ahead and details what
[568]
we're gonna have to be paying for as
[569]
we've created this new loan here it's
[571]
gonna cost 39 bucks to set up this loan
[574]
and then 2% of the transaction amount
[576]
plus $1 per transaction so really not
[580]
too terribly expensive and given that
[582]
we've included this $25 servicing fee I
[585]
mean it's like more than paid for and
[587]
then dispersed payments to the following
[588]
this is where we would have to enter in
[591]
our bank account information which is
[593]
pretty easy to do all I have to do is
[594]
pull out a copy of a check from
[596]
whichever bank account you want these
[598]
funds to go to and put in the
[600]
information shown right at the bottom of
[601]
that check so I would just go ahead and
[603]
put in the name of my company here and
[605]
then this is a checking account name on
[607]
the account put that in here as well and
[609]
the account number that's typically the
[611]
number at the bottom right side of the
[613]
check and then the routing number that's
[615]
typically the number to the left of that
[617]
at the bottom of the check and then
[619]
charge my simple fees to the following
[621]
I'm just gonna click the credit card
[624]
that I just put in a few minutes ago to
[626]
pay for my monthly subscriptions it's
[627]
gonna charge it from that account and go
[630]
ahead and click on here the Terms of Use
[631]
implementing fees we understand all that
[633]
and you can also see this breakdown of
[635]
all the information over here on the
[636]
left so there should be no real
[638]
confusion at this point about what you
[639]
have to do and what's going to happen
[641]
and then we will click confirm and then
[643]
it's going to ask a little bit more
[644]
information here you will have to fill
[646]
out all of the required fields so
[648]
there's just a few more left here that I
[650]
haven't done
[650]
yeah I'll do that quick yeah that's
[652]
pretty much all I have to do so I'm
[654]
going to click confirm okay so from the
[659]
borrower's perspective once you put in
[661]
their email address the simple money
[663]
system is going to send them an
[664]
automated email that looks like this and
[666]
all they would have to do is go right
[668]
here and click view the loan and then
[670]
it's going to look like this and if they
[672]
don't have a simple money account yet
[674]
they can go over here and click register
[676]
here and then they would go through the
[678]
exact same steps I just showed you a few
[680]
minutes ago in this video where they
[681]
would have to go ahead and register but
[682]
once they are registered they would see
[684]
a screen that looks something like this
[686]
or they could look at this information
[688]
on the left make sure it all looks good
[690]
and then they would just accept it and
[691]
then they would enter in all of their
[692]
information in the system and then they
[694]
would go down here and enter in their
[696]
account information so they would put in
[698]
their bank account details just based on
[701]
the information that they have on their
[702]
cheques and then click confirm and then
[705]
just like that the loan is now active
[708]
and this example is a little bit messed
[709]
up because I'm recording this on June 10
[712]
and the first payment that I set up when
[714]
I was creating this was on June 1 so
[717]
it's showing that there's already past
[718]
due payments this shouldn't normally be
[719]
showing if you set it up for a date in
[721]
the future let's go ahead and set this
[724]
up set auto payments and this is really
[726]
what makes simple money such a beautiful
[728]
system because once you click update
[730]
it's going to make sure that that
[732]
payment comes out automatically so
[734]
nobody has to remember anything or write
[736]
any checks or come back to their
[738]
computer and manually make a payment or
[740]
send anything through the mail it just
[741]
makes it way way easier puts everything
[743]
on autopilot and makes the process a lot
[746]
more simple for everybody so once we've
[748]
got that all set we'll click update and
[750]
then we are pretty much done and keep in
[753]
mind there's also this section here
[755]
where if the borrower or lender want to
[757]
communicate with each other about
[758]
anything like hey you know I'm late but
[761]
I'll make this payment or you know
[762]
whatever fill in the blank you can go
[764]
ahead and almost treat this like a forum
[766]
where you're talking back and forth to
[768]
each other and you can stay in the loop
[769]
on everything and then there's also this
[771]
schedule of when all the payments are
[772]
gonna come out that's usually pretty
[773]
helpful for borrowers to see and be
[776]
aware of documents I don't have any here
[778]
but if you wanted to upload
[780]
would documents like a copy of the note
[783]
or the deed of trust or the land
[785]
contract of the mortgage or whatever it
[787]
was you put together to make this loan
[789]
agreements all I'd have to do is do that
[790]
and then both parties to see it right
[792]
here and you know that's really all
[795]
there is to it it's it's a pretty simple
[797]
system I like how it's just very
[799]
straightforward for both parties to use
[801]
it's really hard to get lost in this
[802]
process as long as you just follow the
[805]
prompts and do what the system tells you
[806]
to do and you have all of your facts
[808]
straight in your numbers in order I mean
[810]
it will calculate things and make sure
[812]
it's all coming out the way it's
[813]
supposed to so hopefully that all makes
[816]
sense and hopefully that was a helpful
[817]
walkthrough of simple money again there
[819]
are a number of different ways to
[820]
collect payments but I just thought
[822]
simple money was a really
[824]
straightforward pretty easy to
[826]
understand method for handling the
[828]
automation of these payments and just
[831]
for full disclosure I do have an
[832]
affiliate relationship with a simple
[834]
money so if you do decide to use this
[836]
service I will get a very small kickback
[838]
from that and I really appreciate your
[840]
support this is part of what keeps the
[842]
re tips your blog alive and well and
[844]
keep in mind I mean there are plenty of
[846]
other options out there twos I don't
[848]
feel like you have to do this I just
[849]
wanted to make you aware of how easy
[851]
this system is to use and just the fact
[854]
that it is available as one potential
[856]
option for collecting the payments on
[859]
your loans that you have outstanding so
[861]
appreciate your support very much if you
[863]
decide to do that and or not I wish you
[864]
all the best in finding another solution
[866]
to handle your seller finance deals and
[869]
the various loans that you're working on
[871]
thanks again for watching and I wish you
[872]
all the best in your business
Most Recent Videos:
You can go back to the homepage right here: Homepage