GeekPay Review: The New Way to Service Loans and Collect Automated Payments

hey guys what’s up this is Seth from the re tipster blog and I wanted to share something we did today because I just recently had a chance to talk with mark Podolski because Mark wanted to give me a quick walkthrough of the latest big software service that he’s bringing to the market which is called geek patio and the thing that makes this special and I think important is that it’s a online a cloud-based payment processing software that not only handles like the bookkeeping aspect and the journal entries and the amortization tables and all that stuff.

It also allows you to accept fully automated payments through both ACH and/or credit cards and another thing that makes it really really cool as you can see in this video is that it actually allows you to tie multiple credit cards and or ACH accounts to each borrower so you know say if a borrower misses a payment because they don’t have funds in their bank account you know it would then go to hit their credit card and if that credit card fails it could go and hit the next credit card has to have a third one there so it’s just kind of a really thoughtfully designed software where I think they just kind of went at it with a mindset of eliminating a lot of the problems and frustrations.

Loan Servicing Payment Processing Software

That had just always been there for this kind of you know loan servicing payment processing software I think I think they’ve really done a pretty good job at it and it’s a really easy to use website it’s not hard to figure out what to do or where to go so anyway without saying anything more I’m just going to jump into the video recording of me and mark talking back and forth about the website and how it works if you can just stick with it and follow along you can get a pretty good idea for how things work and I think I think you’ll probably agree it’s pretty simple and straightforward.

if this is something that you think you might be able to use in your business if you’re doing seller financing for any kind of real estate or even if you’re like a landlord and you want to collect recurring payments or if you need to collect reoccurring payments for anything for that matter I think this could be a viable option for you so again I have not used it a lot yet but from what I’ve seen of it it seems like it’s a pretty cool service . so check out the video and you see what I’m talking about all right Seth Williams re tipster calm I am ready to go now I don’t wanna see your I’m get you on full screen right now so I can’t see the screen should I just watch you go through it on your end or do you want me to like literally create my account in no no I’m going to walk you through it and then you can do it on your end.

Settings And Creating Accounts

okay I got okay so first thing you’re going to do is click create account okay and then you’re going to put in your information okay and you’re going to sign up as a lender right yep you got it and then you’re going to agree the Terms of Service and submit and then you’re going to get your login and when you log in the very first thing I wanted to do Seth is click on your name or score or hover over your name okay okay so when you do that you’re going to go to settings and you’re going to go to merchant accounts okay and this is where you’re going to set up automating getting paid okay so when you click merchant accounts I wanted to go over here to add merchant account you see that all these stripe we pay blue pay are for credit cards connect them is for ACH so when you go through that you’ll go through each each company’s process as far as getting merchant approval right and they’re all different.

now we’ll eventually we’ll have something that kind of gives you you know compare and contrast on other merchants but in your situation I would start with blue pay for credit cards and act them for ACH we are also adding this week so if stripe which is like the easiest to get on kicked you off you just go to a different one right if we pay kicks you off you go to blue pay blue pick you up good off eyes on that right so we’re going to come merchants agnostic right act them happens to be the only bank in the country that does consumer lending they completely understand our business they are the most solid way of getting paid okay okay so now once you do that what we’re going to first do is we got to get our down payment.

So we’re click on down payments and we hit new down payment you’re going to say Seth are a tipster test and how much are the down payment before let’s say six thousand bucks so six thousand okay and then this is really important right here we need to connect the correct merchant account so you click here and you connect your merchant account to collect the wheat the the 6000 so I might do we pay or stripe so let’s just do we pick right hit create once that’s created you’re going to hover over your name and you’re going to click on it you see that so click on it and you’re click copy link copy to clipboard and then you’re going to go to a new tab and paste that link and you’re going to either hyperlink this on your website where you’re going to email this to your borrower and they’re going to complete their information.

okay now that should all actually auto populate into our service but let’s just pretend that it doesn’t so you get your down payment and then we’re going to set up our first loan so we’re in a go to loan portfolio and you’re going to go here new loan you see that yes I noticed we pay in stripes I’ve heard from both of them that you can’t use them for real estate is that we have to have some way of getting around that or well you can use it for down payments right okay so I’ve used stripe for years without issue for down payments now my monthly payments.


I use a CH so yeah technically speaking they don’t love it right so if you do get kicked off of striper or we pay you can go to blue pay and go to alright so you hit me alone and we’re going to put in Seth tests in the amount should be for how much.

so this is after the down payment and right at B say twenty four thousand twenty four thousand interest rate nine point nine nine percent nine point nine nine and then are going to be like a bank three sixty or person 365 mmm I think 360 is usually one of them yep and month term let’s say 60 months 60 months and inter start date let’s say May 1 May 1 and payment start date will say u 1 June 1 okay and now we have our summary so we’re getting five 1147 a month over sixty months at nine point nine nine percent how long is our great spear you’re going to be for I’m going to leave it it let’s go to 15 days 15 days pretty generous.

There’s a late fee of flat or we’ll make it a flat C and how much 25 bucks 25 bucks and I do 60 days default I don’t know about you what do you want to do I’ll lose three maybe thirty days okay awesome now it’s really important that we get paid automated so here’s where we’re going to set up our merchants right so I click here and for credit cards let’s do stripe and for ACH.

Amortization Schedule

Let’s do act them okay now we’re going to just double check over here our amortization schedule because when your borrower comes on they’re going to see something like this they’re gonna be able to see their amortization schedule so it’s going to avoid those two annoying phone calls I always used to get hey Mark what’s my current balance hey Mark can make a prepayment this month the borrower can come in and do it at any time right also the nice thing is the borrower can come in and change their ACH information and their credit card information anytime as well nice so now.
We’re hit continue and now after the down payment technically speaking this should autofill except for social but let’s just put in your information set test now we do tests at tests calm now we do test and test and test and test and then the social this is going to help you when we get to annual reports we need the social so that our bookkeeper can send out the 1098 at the end of the year so that your borrower can write off their interest expense.

I just want to know how did you know what my social security number was I find that somewhere that crazy Myron yeah are there hit continue and now we’re going to upload here a promissory note our land sale contract and our purchase sale agreement if we’re coming over from simple your screenshot of the current balance from simple should go in here as well.

Okay so that way when you set up your new loan they Co you know it’s not starting over from scratch it’s coming from here to here and the purple is just so that both the borrower and the lender can reference all the original increments exactly because there’s no there’s no ambiguity so we’ll upload our docs we can do three at a time or four at a time I mean you can just do as many as you want it open and they all upload and this there’s no ambiguity so now we’re going to continue we gotta get our fees even though it’s a set and forget it system there’s always a monthly fee and this will offset the expense of geek pay so how much are we going to charge our borrower each month let’s say 25 bucks a month 25 it would just say note collection fee and then 2 plus 9 and we get a prorated taxes so what our prorate tax is going to be looks like hundred bucks a month hundred bucks.

okay I would just say prorated monthly taxes hit the plus sign again are there any other fees I guess in this example we’ll say no okay so you can do a three dollar no whining fee right take the pleasure oh and then you go back like oh wait maybe that’s too much it’s a delete it now I don’t know about you but I don’t want to partner with stripe or we pay or blue pay or authorize net so I tell all my ball where’s the same thing I get it I want reward points too but if you want to use your credit card .

Methods of Payment

Then we’re going to charge a three percent convenience fee only for credit cards so hit this little arrow here and we’ll just do for the cards if we want to charge for a CH we can write I don’t because I want to push him to a CH because a CH is so cheap like 45 cents to a buck depending on your merchant right history so you hit continue and we’re going to connect the bank account and we’re going to connect the card in our agreements we ask for both methods of payment.

They authorize it right so now we made it foolproof so we’re not relying on our borrower to fill out this information however if you do have a borrower that is super super sketched out by doing this they can do it themselves okay so hit continue Abby do you want to see how that you want to go back and see how that looks yeah sure all right so we’ll go back I mean it’s really simple with connect bank account right all this is prefilled for you and then you put in their phone and you put the account name the account number the checking account number Acton is going to charge them a dollar because we want to confirm it’s a really good cut count okay and then if it’s an individual or company account right and then we’ll continue there then we’ll go back and we’ll hit connect card and we’ll put the cardholder name the number expiration CVV code and hit connect stripe and that’s it so we’re hit continue so basically you as the lender can only fill that out.

if they’ve given a team correct now if they haven’t given it to you they need to fill it out okay in that happens after you invite them the idea correct so I’ll show you what it looks like okay so hit continue and when we say this is what your borrower is going to see right when I hit Send to borrow for approval they’re going to log in as a borrower and they’re going to see their loan term summary they’re going to see their amortization schedule.

They’re going to see their fees they’re going to see their transaction fees applied to card they’re going to see their agreements and they’re going to see their information okay now what’s great about this is they can create a payment themselves at any time when they log in they can also email you say hey Seth discharge me an extra thousand bucks this month and you can go and do it for them and it takes a second to do but when we hit send to borrow for approval what we’re going to do is we’re gonna go to emails so we can see the email we sent them okay.

It says I added you to loans click on it hi Seth I added you to loan on geek there you can check it out instantly so when they save you this link to access it now this is what they see so it’s really really easy so the borrower flows really nice so if we go to an actual loan so I guess hold on just a second when the borrower clicks on this I mean I guess in this example we have not added a ACH account or credit card yet so where do they go to do the first thing that they would see is add your account that would be the first screen they would see so we go to payment accounts so when they they would know this is what they see yeah.

Bank Account card

So when they log in to say please connect your bank account your card okay yeah yeah if they want to invite their spouse or their partner to also be able to log in they can do that as well and so what we’ll do is let’s just go to an actual loan that’s got some different things going on with it so we can see what it really looks like in real life so it’s go to Nokes and when we click on Nokes we can see what’s going on with this note right the first thing we can see is all their agreements their information their fees right and all that good stuff we can see how much payments we’ve received.

We can see the scheduled payments the final payment and what their statuses but if we go over here to emails we can see needham issues right here’s our first notification you’re charged 100 for the loan and then we do fun facts because every time like I get a charge a little sting in my heart so to mitigate this thing we give a little fun fact so if you put a quarter teaspoon of baking powder on our boiling eggs the egg shells will peel off easier thanks for being the kind of person Islands or commitments I appreciate you you’re the best buy more land right.

payment accounts And Charging Interest 

So here’s another one a payment $104 is successfully posted for the Doakes loan keep on lending the geek pay team right so that’s what we get as a notification your loan is in good standing thanks for making your payment your loan is now in good standing thank you again for being reliable borrow is usual fee any questions are always here to help so what happened was.

she had a payment fail right says your payment $100 has failed please log in and try to make another attempt or add a new payment account to put this loan in good standing so that’s what she sees um now it says your loan is now late oh no your loan is now late however you still have time to pay bring your loan in a good standing just click on the following link and that’s where she would go we will continue charging interest in building as per usual please make sure to make a payment as soon as possible you risk defaulting alone your current past due amount is so this is all automated all the notifications technically speaking.

she should never have had a failed account so we don’t know what happened we go to payment accounts she’s got four accounts on file if the first one fails it charges a second one the second one failed it charges a third one and the third one fails it charges the fourth one right how that happened I don’t know but let’s say Shenandoah caused you success.

I’m sick of getting charged the three percent convenience fee make my ACH the primary all you would do is drag and drop see that and just drag and drop that’s it so she can do that she can she can add more payment accounts.

if she wants you can do it for we have good math we look at the journal entries so we can see the principal entry right here’s another payment we can see the penalty fees because she was late here’s her service fees here’s another service fee which you set up act them here’s a penalty fee right another service fee another principal entry another principal entry so we can see all the journal entries that’s going on proper accounting with her just make sure I understand um I know like in this example we said there was a $6,000 down payment is that is that payment made like apart from this loan we set up oh yeah because that’s not part of the loan that’s just the down payment to set up the loan okay so right because you’re not loaning that amount now you can show that to the journal entry okay.

so it is known as a journal entry really just for accounting purposes but it has nothing to do with the payments that are coming in and out of this loan that’s just like maybe I got it as a cashier’s check or something like that right and I even start with the first loan payment correct that’s right okay is there any way to make the first payment as part of this thing or is that not yeah absolutely you can you can have your payment start date whenever you want you can create a payment you can you could charge it you mean you would just have in there like in down payments or create a payment you would just add like the description of what it was like I charge a $4.99 doc fee oh just to create a payment doc fee right so we can go in and do that as long as you have permission to do it and when you create a payment does that send it to them for approval or just automatic so it automatically does it okay yeah so when we go to payments.

Create a Payment

we will go to overview we do create a payment I would put the description in here charge Barakat Oh leave a explicit approval from borrower right so there should be some paperwork involved with letting them know hey this is what’s going on okay right so that’s how we do it now we do billing statements very similar to American Express so if I look at your American Express statements exact same thing okay.

This does really good math and then um I said you could edit it if you go to your payments let’s say that she calls up and says hey let’s say you know like we do a 90 day refund policy so first month they call say hey I hate I saw the prop read sucks I want a refund just click on here and you make a refund that’s it comes very easy in your payments you can edit the loan you can stop payments all that good stuff annual reports let’s keep our bookkeeper happy right you just hit download it goes out.

VM Billing Statement

They get all the information for each borrower VM the billing statement part is that like a email it goes out to men where that’s just something they can come in in you at their bacon kids yeah they come and see their billing statements but after they make a payment okay yeah and then we have emails and when payments come when payments come out they get email just telling them data payment came out that kind of thing exactly okay when you go to settings and this is where you would set up your email signature I’ll have fun facts for you if you want to copy and paste them and then you can see your subscription and it hit your merchant accounts you can see what’s been set up.

The number of loans per account so if I already have like an existing bloop a merchant account can I somehow enter that in or do I have to apply for it no you’ll be able to just it’ll be seamless if I want to not include fun facts with my emails like if I just wanted to sting people and offer them no joy at all is that possible to do that yeah you just don’t put any foot back so okay awesome we have free support you just come over here and click this and hit new conversation it asks your message okay alright so that is a geek pay any other questions nothing I can really think of if you’re going to work with boom pay or stripe or we pay is blue pay the most expensive one like do they have a monthly feed I could I think what my blue pay I can I got to pay like 25 bucks or something per month.

Payment And Process

Whether I use it or not so I remember to tell ya I’m merchants agnostic I have nothing to do with the merchant fees so you know depending on where you are if you’re a startup in land we are startup in any business your merchant fees are going to be more because more risk right you don’t have a track record you’ve been doing this for as long as I have you can probably get no fee and 2.2% it just depends on on their risk reward.

If you if you didn’t want to start set up a merchant account well I guess you have to with well let’s talk about that right so when we first set up that loan we automated it right but if you remember when we first set it up we could manually track the loan because you will have people that actually just send you checks or they send you cashier’s checks and it’s not automated so you just come in here and you hit create a payment and you would manually do it and that’s where you would do it see how I did that turned in the description I might say April payment and process the payment now.

As they process payment here it won’t charge them you know just the math I’ll figure out your principle and interest it keeps transparency so that’s our journal entry yeah I’ll do the journal entries so everybody knows where they’re at it’s a really ideal but that’s what we can do it’s really all of your seller finance deals whether they’re taking payments out or not this is a good way just to handle the accounting for them right correct okay yeah this is a the only automated financial crm in the world that I know some say if you if you didn’t want to accept credit card payments and only ACH payments is there like a merchant approval process you have to go through with is it called actin is epic a yeah absolutely so you know you’re going to have to send two months bank statements you’re going to be bankable.

Merchant Account Button

They won’t check your credit but if you’ve been to jail they may not accept you so 99% of our merchants are accepted they understand our business they know our business so it’s not an issue as long as you’re bankable yeah so when you first go to your name and you hit settings and you set up your merchant account right here yeah you see that that’s where you’ll go through that process with each merchants attention and you know about how how many days it takes them approximately to approve you it takes 10 business days.

They’re going to have you fill out paperwork okay video just send them paperwork but everything is done through geek pay so like when you when you click on that apply for a merchant account button does that take you to their website and then you do it there or yeah let’s let’s check it out so let’s go add merchant account let’s connect blue pay so now it says fill out the form to add blue pay right so that cow name account ID see your kid to get requires rentals please log into your blue pay account and go to admin accounts list options view Kachemak though blue pay so that does make it pretty easy then feels really easy right it’s nice that’s it that’s awesome man kudos for putting together such a nice system thank you ok guys so that was the geek pay walkthrough and before I wrap this up I just wanted to add a few last-minute thoughts before we end this as you probably noticed that video is recorded in April of this year.

So that was a few months ago now since that time I actually applied for an active account I could accept ACH payments I was able to get that approved no problem it was I wouldn’t say it was like the easiest thing that took a little bit of back and forth and was a little confusing but we did get it done so it wasn’t terribly difficult also since that time they’ve at its as an option here that could be another solid option that I don’t have yet but may be worth keeping in mind also something I was waiting for before I published this video is to see what the pricing of geek pay was going to be just.

I understood you know what’s going to be the cost of maintaining these different merchant accounts in addition to paying for blue pay I can tell you for each one of these blue pay and act them I’m paying 25 bucks a month for each one so that’s 50 bucks a month right there and then the cost of geek pay you can see right here these are kind of the options if you’ve got 0 to 10 notes that’s probably arrange a lot of people are going to be falling into it’s 99 bucks a month so you’re basically looking at like 150 bucks a month which I think you can totally offset that by adding you know servicing fees to your loans and that kind of thing but even then say.

Seller finance DEA’s And real estate transactions

If you’ve got like one loan it’s for really small properties maybe you’re taking in like a hundred or 200 bucks a month it may not make sense for that but I think once you got a few loans up and running and you’ve tacked on monthly servicing fees for each one of those it could totally make sense one final thing I will just note before this video is done in terms of these merchant accounts here deep pay is not affiliated with any of these things so it’s really up to you to make sure you understand the rules and the terms and conditions of using each one of these I will say that you know some of these companies you’re actually not supposed to use them for doing real estate transactions or you can use them for real estate but only in a very limited capacity like for example blue pay it isn’t going to use that but I’ve actually got a separate video on blog post explaining even though you can use it for real estate there’s a lot of situations where it’s not going to make sense based on the rules that they put on their users so that’s just something you know I’m not going to get into all of the specifics of that but that’s something you should be aware of whichever one you decide to use make sure you are familiar with what you’re allowed to use them for in terms of real estate transactions

For a lot of them especially when you get credit cards involved there’s a lot of these rules and restrictions for what you can and can’t do I think the original intent behind geek pay was to help specifically land investors and real estate investors with their seller finance DEA’s but you can also use this for a lot of other things say if you have a loan that has nothing to do with real estate but you just want to collect payments for something and that could be another potential use for this or collecting rent payments or any kind of recurrent payment.

I think a lot of that is fair game but just keep in mind if you are using this specifically for real estate just be aware of the rules that come into play with each one of these or whichever one you decide to use so yeah that’s a thing that’s a wrap pretty solid system it’s got a really nice design very easy flow it’s pretty easy to figure out how to use it and I just thought it was worth telling you guys about so hopefully that was helpful thanks for watching me and I wish you all the best with your next seller finance deal and if geek day makes sense for you hopefully it works out well for you so thanks for watching talk to you later

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