Mid Month Payment

As a Real Estate Investor, sometimes when we are offering Creative Financing like a Lease Option, Lease Purchase or Owner Financing on a property we will be collecting a Mid Month Payment when a Buyer or Tenant Buyer did not put enough Down Payment down.

In the case of a Lease Option, we may structure the Mid Month Payment as payments on a Promissory Note to pay the Option Fee.

In the case of a Lease Purchase, we may structure the Mid Month Payment as payments on a Promissory Note to pay the Non-Refundable Purchase Deposit.

In the case of a Owner Financing, we may structure the Mid Month Payment as principle payments on a Promissory Note to pay the Mortgage.

You will often want to set up these payments to be automatically withdrawn from the Buyer’s or Tenant Buyer’s account and deposited directly into yours. See Automatic Rent Collection.

The Mid Month Payment is one strategy to help overcome Negative Cash Flow.

See also…

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