Automatic payments include things that we have set up to automatically be paid like Mortgage payments, property Insurance and Property Taxes. We primarily confirm that these were paid and that the correct amount was paid for these. Once they are confirmed we log that it was done.
Manual payments are for most other bills that need to be paid manually. We may still use bill pay to pay them, but not an automatic, recurring bill pay service.
Once we have made the manual payments there usually is some logging to be done regarding the payment and that is included in our system for paying bills manually as well to completely document that payments were made and to keep our files organized for taxes and accounting purposes.
The system we have for paying bills is important, but becomes increasingly more important for Real Estate Investors opting to work with Private Lenders and buying properties with Owner Financing or Subject To.
- Use our bill pay system to pay the bill that needs to be paid manually.
- Update the following forms in the Property File to log the payment:
- Update our accounting software to properly track the payment and categorize it correctly
Related Resources To Auto Payment Checklist™
|↑ Bills Checklist™|
|← Auto Payment Checklist™||Rents Checklist™ →|