ZimpleMoney Review: Is this the Best Loan Servicing and Payment Collection Software?

– So if you’ve ever done a
seller financed real estate deal, one of the things you probably know is that as part of your closing process you have to figure out
who is going to handle the collection of these payments
for the life of the loan. Are you gonna have the
borrower send these payments directly to you, or are you
gonna use a loan servicing company and have the borrower
send payments to some third-party and have them manage it? I wouldn’t say there’s necessarily one right or wrong answer, but I will say some choices are definitely gonna involve a lot more
work from you than others. One of the options that I
just recently learned about is this company called ZimpleMoney. What makes them unique is
that you don’t necessarily have to get a loan
servicing company involved, but through their service, you can sync up with the borrower’s bank accounts of their choice and have their monthly payments
automatically withdrawn. When you do it this way, they don’t have to send
any checks anywhere. They don’t have to remember
to make the payment. It just comes out automatically, which for obvious reasons it makes it a lot easier for them and for you, and drastically reduces the likelihood that they’re gonna have a late
payment or a missed payment because it’s just happening automatically. So in this video, I want
to just take you through the ZimpleMoney system and
just show you how it works. As I think you’ll see,
it’s pretty straightforward and pretty easy to use. It’s obviously not
something you have to do. But if you’re looking for an alternative that is a heck of a lot easier
than asking the borrower to manually mail you
checks every single month, this is definitely an option
you should be looking into. So if you want to follow along with me, I’ll show you how it works. All right, so when you first get to ZimpleMoney’s website, you’re gonna see a page that looks something like this. All you have to do is pretty
much exactly what it says. You just have to go ahead and register. So I’ll go ahead and do that right here. Just go ahead and fill this stuff in and then click this thing down here saying that you’ve read the Terms
of Use and you accept it. Go ahead and click Register. Then the system makes you go through the standard process where
it sends you an email and you have to go ahead
and you confirm that. So I’ll go and do that quickly. OK, so I got the email. I clicked the link and then it
brought me here to this page saying that the registration is confirmed. So once that’s done, we’re gonna go ahead and go up here and login. Once I input my login credentials, I’ll just go ahead and click this. This is what it looks like once you first login to your account. ZimpleMoney has a number
of different pricing plans. Depending on how frequently
you are extending loans to people, that should determine what kind of plan you sign up for. This right here is an outline of the plans that they offer at the
time of this recording and what those prices look like. If you scroll through
this, what you can notice is that really for the
most part all these fees and transaction costs are
pretty similar across the board. The main thing that
differentiates these plans from each other is this line right here and then also the one above it, the subscription plan cost. So as you can see here there’s
this one called Essential. Whenever you sign up for a new account, that’s automatically
the one that you have. The good thing about it is that it’s free. But the down side of it
is that for every new loan you create, it’s gonna cost
you 159 bucks to set that up, which is kind of steep. If you’re somebody who’s
gonna be extending loans on a pretty regular basis, say if you’re doing two
to three or more per year, in those cases, you’re probably
gonna want to look over here at these business plans
called the Plus and the Pro. The main difference between
these two is that they both have a monthly subscription cost. Plus is 20 bucks a month. Pro is 35 bucks a month. The setup costs for a new
loan are pretty close. I mean, they’re basically the same thing. One is 39 bucks. One is 35 bucks. But the main different between
these two is this right here where it talks about
being an ACH merchant. With the Pro account, you
basically have to send in an application and get approved, and then pay another 395 bucks
once you get that approval. But what that means is that
once you have that approval, it actually gives you
quite a bit more power, which is a little bit different
from the Plus account. With a Plus plan, whenever
you set up a new loan, what’s gonna happen is you will input the email address of your borrower. The system will send them an
email and the borrower can set up their own account
where they enter in all their own bank account information. It’s just completely in their court and in their hands to
go through those steps and set it up correctly on their behalf. So it’s kind of hands-off
for you and depends on them to take some steps and
complete that process. However, with the Pro
account, you can actually take their information,
assuming they provide it to you, and you can fill this stuff out for them. So if kind of gives you more
control over making sure that information gets put into the system. So if you’re somebody
who’s gonna be doing dozens of these things a year, then
you may want to consider the Pro account simply
because it gives you a little bit more freedom and control over the process of setting up a new loan. But just looking at somebody like myself, the Plus account is probably
what I would sign up for just given my situation where
I always have a handful of seller finance deals out
there at any given time. In any given year, I might add
a few new ones to the books, but I’m not really somebody
who’s doing hundreds of these. So as far as I’m concerned, the Plus plan would be
more appropriate for me. But again, that’s totally in your court. You can decide what you
want to do with that. I’m just letting you know
how I would look at that. So with that in mind, if we
go back to our account here, I’m gonna go over here
where it says Account, click on that. Then what I’m gonna do is I’m gonna upgrade my subscription because right now I just
have ZimpleMoney Essential and that’s not really
the long-term account that I would want to have in my situation. So I’ll go ahead and click on this. What I want to do is ZimpleMoney Plus, which is gonna cost me 20 bucks a month. If I wanted to do ZimpleMoney Pro, I could go down here and click this and send in an application
to get approved for that. But again, I’m just gonna
stick with this one for now. I would click on this
and click New Account, and this is where I would
just put in my credit card information to pay for
that monthly subscription, so I’ll put that in right here. Once I got that in, I’ll just click Submit and there we go. Just like that I am already at the ZimpleMoney Plus subscription plan. So in order to create a new loan, let’s just quick go through that and I can show you just how easy that is. All we gotta do here is
go up here where it says Start a New Contract,
and we’ll click on that. Then I’m gonna go here and
click on Premium Loan Tracker. That’s the fully automated
system that’s going to take these payments out automatically, so I’ll click on that. Once we’re here, we’re
gonna see this page. All we have to do is start
entering in all the loan information which should
be detailed on the note or the land contract or the deed of trust, or whatever agreement you have between the borrower and the lender. Keep in mind you can use this whether you are a borrower or a lender. In my case, I’m using it as the lender. But if you’re ever
trying to buy a property with seller financing,
or if for some reason you’re trying to set up a
loan where you’re borrowing money from somebody else
for whatever reason, just keep in mind you can use this for that exact same purpose. So I’ll just go ahead
and put this in here. I’ll call this Example Loan. Loan Amount, just put $20,000. Interest Rate, 9.99%. We’re gonna say that this is amortized, and then the Loan Term
is gonna be 60 months. Then payments are made monthly. Calculate Interest From, we’re gonna say the closing date for this one was May 1, so we’ll click on that. Payment Start Date, we’re gonna say the first payment is due on June 1. Grace Period, we’re gonna
say 15 days in this case. Late Fee would be a flat fee
and that would be 25 bucks. These are just numbers
that I typically use. I’m not saying you have to do this. This is just how I do it. And then NSF Fee, we’re
gonna leave that at 15 bucks. That’s just if the borrower
doesn’t have sufficient funds in their account when the system goes to automatically withdraw their payment, it’s just gonna give
them a fee of 15 bucks. And then right here, the nice
thing is it also allows you to add some additional fees to the payments. So for example, whenever
I do a self-closing for a seller financed
deal, I’m always charging at least somewhere in the neighborhood of 199 to 299 bucks as a closing or doc preparation fee because make no mistake, it
takes a lot of extra work on my part to create those documents and facilitate those closings. So in this example, I’m just
gonna put $199 in there. And for Fee Description, I’ll just put Closing Fee like this. We’re gonna add it to the payment. Then we’re gonna add
another recurring fee, and this one’s gonna be 25 bucks and this is gonna be a Servicing Fee. If you ever do use a
loan servicing company, typically the cost for those services is 25 bucks or 15 bucks or
somewhere in that ballpark. So that really is a pretty reasonable additional cost to tack onto
those monthly loan payments. So we’ll put that there like that and then we’ll click here
where it says Recalculate. This shows us what that
monthly payment is gonna be. We can also even show the
entire payment schedule if we want to and it’ll
detail all that right here. And then we’ll just go
ahead and click Next. The next step is to put in the email address of the borrower. So what I’m gonna do
here is I’m gonna put in another one of my email addresses just so I can show you what it looks like from the borrower’s end
when they get notified of this new loan that’s been created. So I’ll put my alternative address in here and then click Next. Then it just goes ahead and
details what we’re gonna have to be paying for as we’ve
created this new loan here. It’s gonna cost 39 bucks to
set up this loan and then 2% of the transaction amount
plus $1 per transaction. So really not too terribly expensive, and given that we’ve included
this $25 servicing fee, it’s like more than paid for. Then Disburse payments to the following, this is where we would have
to enter in our bank account information, which is pretty easy to do. All you have to do is pull out a copy of a check from whichever
bank account you want these funds to go to and
put in the information shown right at the bottom of that check. So I would just go ahead and put in the name of my company here. This is a checking account. Name on the account, put
that in here as well. The account number, that’s
typically the number at the bottom right side of the check, and then the routing number, that’s typically the number to the left of that at the bottom of the check. And then Charge my Zimple
fees to the following, I’m just gonna click the
credit card that I just put in a few minutes ago to pay for
my monthly subscriptions. It’s gonna charge it from that account. And go ahead and click
on here the Terms of Use. ZimpleMoney fees, we understand all that. You can also see this breakdown of all the information
over here on the left, so there should be no real
confusion at this point about what you have to do and
what’s gonna happen. And then we will click Confirm. Then it’s gonna ask a little
bit more information here. You will have to fill out
all of the required fields. There’s just a few more left
here that I haven’t done yet. I’ll do that quick. And that’s pretty much all I have to do, so I’m going to click Confirm. OK, so from the borrower’s perspective, once you put in their email address, the ZimpleMoney system
is going to send them an automated email that looks like this. All they would have to do is go right here and click View the Loan, and then it’s going to look like this. If they don’t have a
ZimpleMoney account yet, they can go over here
and click Register here, and then they would go
through the exact same steps I just showed you a
few minutes ago in this video where they would have to
go ahead and register. But once they are registered, they would see a screen that
looks something like this where they could look at
this information on the left, make sure it all looks good, and then they would just accept it. Then they would enter in
all of their information in the system, and then
they would go down here and enter in their account information. So they would put in
their bank account details just based on the
information that they have on their checks and then click Confirm. Then just like that,
the loan is now active. This example’s a little bit messed up because I’m recording this on June 10 and the first payment that I set up when I was creating this was on June 1, so it’s showing that’s there’s
already past due payments. This shouldn’t normally be showing if you set it up for a date in the future. Let’s go ahead and set this up. Set Auto Payment. And this is really what makes ZimpleMoney such a beautiful system
because once you click Update, it’s going to make sure that that payment comes out automatically. So nobody has to remember
anything or write any checks, or come back to their computer
and manually make a payment, or send anything through the mail. It just makes it way, way easier. It puts everything on autopilot and makes the process a lot
more zimple for everybody. So once we’ve got that all
set, we’ll click Update, and then we are pretty much done. Keep in mind there’s
also this section here where if the borrower or
lender want to communicate with each other about anything like, hey, I’m late, but I’ll make this payment, or whatever, fill in the blank, you can go ahead and almost
treat this like a forum where you’re talking back
and forth to each other and you can stay in
the loop on everything. And then there’s also
this Schedule of when all the payments are gonna come out. That’s usually pretty helpful for borrowers to see and be aware of. Documents, I don’t have any here, but if you want to upload
documents like a copy of the note, or the deed of
trust, or the land contract, or the mortgage, or
whatever it was you put together to make this loan agreement, all you’d have to do is do that and then both parties
could see it right here. You know, that’s really
all there is to it. It’s a pretty simple system. I like how it’s just very straightforward for both parties to use. It’s really hard to get
lost in this process as long as you just follow the prompts and do what the system tells you to do, and you have all of your facts straight and your numbers in order. It will calculate things
and make sure it’s all coming out the way it’s supposed to. So hopefully that all makes sense, and hopefully that was a helpful walk-through of ZimpleMoney. Again, there are a
number of different ways to collect payments, but I just thought ZimpleMoney was a really straightforward, pretty easy to understand
method for handling the automation of these payments. And just for full disclosure, I do have an affiliate
relationship with ZimpleMoney, so if you do decide to use this service, I will get a very small
kickback from that. I really appreciate your support. This is part of what keeps the REtipster blog alive and well. Keep in mind there are plenty
of other options out there, too, so don’t feel like
you have to do this. I just wanted to make you
aware of how easy this system is to use and just the
fact that it is available as one potential option for collecting the payments on your loans
that you have outstanding. So appreciate your support
very much if you decide to do that, and if not,
I wish you all the best in finding another solution
to handle your seller finance deals and the various loans
that you’re working on. Thanks again for watching, and I wish you all the
best in your business.

4 comments on “ZimpleMoney Review: Is this the Best Loan Servicing and Payment Collection Software?”

  1. Victor Sinclair says:

    Thanks for this excellent tutorial. Why was there an option for 360 vs 365 days of interest and why did you go with 360?

  2. AU Packmule says:

    Another great tool for us newbies! Thanks man.

  3. robertoospina10 says:

    Excellent tutorial!!!

  4. John Franceschi says:

    Great review! I'm excited to use this platform. Although, One thing that I'd like some clarity about is; Can this loan agreement legally qualify as a binding enforceable contract for both parties? Or do you need to have that done separately and this more so just automates it?

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