Close Popup Icon
New Minimum: Begin Investing With Just $500. Get Started Now!New $500 Minimum. Invest Now!
https://diversyfund.com/how-does-investment-servicing-work/
Advanced Investing

How Does Investment Servicing Work?

The world of investment servicing can become quite confusing. This is especially true is you’re new to investing. With so many questions pouring into our investment servicing department, we decided to put together some of the most helpful answers here for you to learn more.

Investment Servicing Frequently Asked Questions

How does the Operator of an investment know when to make payments?

When funded and closed, a welcome packet goes out that includes their first payment letter, mortgage statement, and coupon payment booklet. In the event of a late payment, letters go out to them on the 15th of each month. In addition, Balloon Payment letters go out at the 90/60/30 day mark before the investment is due.

What do investors receive once the investment is closed and funded?

When the investment is funded and closed, a notification goes to all invested parties. This informs them of their investment number, property address, and percentage breakdown of all investing parties.

When are distributions made?

Interest payment processing takes 3-5 business days. Disbursements to investors are made on Tuesdays and Fridays, following a 5 day hold to ensure payments clear.

Why are the first disbursements lower than the monthly return?

The day investors fund the investment is the first day you earn interest. In most cases, funding takes place somewhere in the middle of the month and as a result, this is considered odd day’s interest. Depending on the day that your investment closes, disbursements go to Investors on Tuesdays and Fridays, following a 5-day hold to ensure payments clear. Payments either go out through direct deposit or the mail. Investors that set up for direct deposit will see their payment hit their account the following business day.

If I set up direct deposit (ACH), will I lose the ability to have a paper trail or keep track of what each payment is for?

Investor’s set up for direct deposit receive monthly statements detailing a summary of their serviced investments. Investor statements illustrate information on each payment disbursed.

Can I use multiple bank accounts for my direct deposit?

Each investment is set up to only disburse to one account.

Do Investor’s get a copy of all statements that go out to Operators?

Investors are always notified when welcome packets go out to Operators. Upon request, we can provide a copy of statements sent to Operators.

What are the benefits of Servicing?

  • Timely and effective responses providing resolutions to customer service needs
  • Mailing of Operator welcome letter including payment coupons and servicing standards
  • Collection of monthly payments and payoffs from Operators
  • Secure and timely disbursements to Investors
  • Providing monthly investor statements with disbursements
  • Mailing of late and maturity notices to Operators
  • Preparation and submission of Payoff Demands
  • Preparation and submission of Reconveyance documentation
  • Tracking the status of insurance and delinquency on all investments
  • When action is required we notify Operators and investors
  • Referral to foreclosure department – upon investor request
  • Providing end of year Tax documentation for all investments

To sign up for a free account on DiversyFund’s crowdfunding real estate platform, click here.

Related Articles

An Investor’s Guide: Alternative Investments Explained
  • Advanced Investing

An Investor’s Guide: Alternative Investments Explained

Most of us are familiar with the stock market. But have you ever wondered what the institutions and high net worth individuals are investing in? Alternatives. We’re here to break the news to everyday investors—stocks and bonds are not the only investment vehicles out there! From art to coins, farmland to venture capital, natural gas…

Sourcing Direct Multifamily CRE Investments: A Guide For Individual Investors
  • Advanced Investing

Sourcing Direct Multifamily CRE Investments: A Guide For Individual Investors

With all the different types of real estate to choose from, investors are often left wondering where to start. We explain the step by step process that goes into finding and acquiring high-potential real estate and best practices for investors to source real estate opportunities to add to their portfolio. Types of Multifamily Real Estate…

Your Ultimate Guide to Finding the Perfect Real Estate Investment Property
  • Advanced Investing

Your Ultimate Guide to Finding the Perfect Real Estate Investment Property

Investing in real estate is a great way to increase personal wealth. That’s why a majority of America’s wealthiest individuals have a substantial amount of their portfolio in real estate. Many investors turn to single-family housing to start making money right away. However, this short-term strategy may not play out as well in the long…