Taxes, insurance, private lender, seller, all of those things are individually going to have to be paid every single month, the last thing I want to do is pay them. So what I’d rather do is let’s see, you got to ask that question. So as we’re closing escrow, I don’t ever like to pay any of these bills, especially when you have a private lender. Sometimes you’ll I don’t know if this house has an HOA or not, because the first mortgage to the seller, right. And if it’s a seller finance, guess what I’m not paying the seller, I’m not paying the seller, any taxes and insurance.
So we’re gonna have taxes, insurance, private lender, seller, all of those things are individually going to have to be paid every single month, the last thing I want to do is pay them. So what I’d rather do is set up a servicing company to pull that money out of my account every month, and then pay those four people individually. And then the servicing company, we can use evergreen note servicing, that’s what we typically will use evergreen will now take that money out of my account disperse properly to everybody.
And then everybody gets an email saying this has been paid even the seller, the seller gets an email saying hey, your payments been made, even though he can see it in his bank account. It’s nice to have the servicing company send them an email updating on when the payments been made. Same thing with the private lender. It’s a great thing for the private lender to get an email every single month.
If you put that on a bookkeeper think about how much time that would take Tony counts my bookkeeper, she sets up for individual payments and then verifies and goes to the things and sends an email and says here’s where we’re at currently with the amortization schedule because that’s the other thing a servicing company will do actually, is they will actually manage the amortization schedule for me for the seller finance note. And so the seller will get an email every month from Evergreen note servicing saying hey, your buyer has paid one payment of 360 payments still left on this note.
When you buy a property subject to always have it serviced with a licensed servicing company. So I would pick up this big fat check from the insurance company. And I would go to the nearest Bank of America that was close by the insurance company’s office because it was Friday, I would get the check Friday, I had to rush down and make sure I made the deposit, then I could then wire out my individual paychecks to all my guys, depending on the bank, I would go to I would get these big checks of 200,000 $300,000.
And I would go to my bank, and I’d wait all the way through the line for 3045 minutes, because again, it’s Friday, and I would go to the bank teller. And I would say I’d like to make this available from withdrawal so I can pay my people. And you go, Oh, I’ll see about that. Click, click, click, click, click, click. I’m sorry, we have to put a mandatory 10 Day hold on this check. Has anybody ever dealt with that I would get so frustrated because I used to take their word as gospel addict, freaking. And I would have to go borrow money from my friends for like a week to pay my payroll until that cheque cleared.
Then one of my friends told me dude, demand that they release your cheque or just go to another branch, you dumb ass. I’m like, Oh my gosh, it’s so brilliant. So the next time this happened, I go through line, I wait for the bank teller go, here’s my $250,000 Check. She says it’s bank policy. It’s bank policy Bank of America’s policy is to make sure that you have a 10 day mandatory hold on checks over bla bla, bla, bla, bla dollar amount, like, oh, my gosh. So I would say can I talk to your manager manager comes over? Do you think the manager is going to side with her employee? Or they’re going to side with me? All day long.
They’re going to side with their employee and say, sorry, sir, this has bank policy. Fine, give me the check. I took the check. And as I’m taking the check, I said, I’m going to do your job for you. So I drove all the way back down to my home branch where I opened my bank account, where I knew the tellers they know my wife, they knew my kids, they knew my world. They knew me by name. I wait through the little line, I deposit the check. Do you think they made the check available immediately? 1,000% They did. So I get that receipt. Oh, I forgot the best part of this story. As I’m telling that teller, hey, teller, I’m going to go and do your job for you.
And I’m going to bring you the receipt and show you that somebody else at Bank of America will make that check available. The bank manager chuckles at me rolls her eyes and says Good luck. Have a great day. Oh, now you got now you got me going right now you got me going. So I go all the way down there. My bank teller, I don’t say anything to her. The nice one, I don’t say anything to her. Just thank you so much, you’re the best Have a great day, blah, blah, blah, I take that receipt. I drive my ass all the way to the other side of town.
I wait all the way through that line. Again, just to hand the receipt to that bank teller said I did your job for you. And I walked out. And I learned in that valuable moment. This was like 12 years ago, I learned in that valuable moment, the bank teller paradox that when one person tells me I can or cannot do something, it doesn’t mean that it’s legal, not legal, or otherwise, it just means that they are either lazy, stupid, or inexperienced. That’s it.
And so what you’re going to run into and why I told you that big long story is because you are going to run into title companies closing attorneys loan officers, underwriters at the loan officers office that will say I’m sorry, we can’t wipe out their debt to income ratio and say, Okay, well, my mentor or my business partner, PACE Morbi has done this over 400 times where he’s wiped out people’s debt to income ratio. And I know for a fact that it’s possible. So what are our options? Tell me how you’re going to overcome this. So here’s the biggest challenge with that.
The last time I did this was like six months ago for another student, the student said, this lender says, that’s impossible. So I got on the phone, I said, Hey, my name is pace. Morbi. I used to be a licensed loan officer. So I’d like to know how the laws changed since I was a licensed loan officer, that state blah, blah, blah, blah, blah, blah, blah, blah, blah. And all sudden that loan officer is like, uh, I didn’t know that that was a thing. Of course you didn’t. Because this is a creative finance transaction. And we’re doing something outside of your experience level. So you told me it’s not possible. So let me tell you what I’ve done in the past.