What if one small decision in your lending process may jeopardise the entire transaction, and you were completely unaware of it? Although it may seem cost-effective, skipping monthly payments can lead to significant issues down the road, particularly when it comes time to refinance.

Rich Lennon discusses in this episode why he decides not to collect monthly payments, how it impacts loan security, and what lenders frequently forget when attempting to keep things straightforward. You'll discover how this one choice can cause unforeseen hold-ups, damaged borrower relations, and conflict with mortgage lenders. This episode will help you create more intelligent systems, safeguard your transactions, and manage your business according to your conditions if you are a lender or intend to become one.

You’ll Learn How To:

• Recognise the dangers of failing to make monthly payments.
• Make lending guidelines that benefit you and your borrowers.
• Address refinance concerns when there is no payment history.
• Establish clear guidelines when requesting documents from mortgage firms.
• Maintain the simplicity, scalability, and stress-free nature of your lending business.

Who This Episode Is For:

• Private lenders looking to streamline their business without sacrificing security
• Real estate investors navigating refinances and borrower relationships
• Anyone building a lending company and wanting full control of their process
  

Why You Should Listen:
The way you set up your lending terms matters more than you think. One small policy, like skipping monthly payments, can trigger bigger issues if you’re not careful. Rich shares his real-world experience and lessons learned so you can avoid messy situations, stay in control, and build a business that works on your terms.

What You’ll Learn in This Episode:

[00:00] Why Rich sets the rules and expects others to follow
[01:00] Why strong penalties matter in lending
[02:00] Hard vs. private money: key penalty differences
[03:00] Why Rich skips monthly payments and the risk involved
[05:00] The hidden cost of managing multiple payments
[06:00] The refinance problem with no payment history
[07:00] How Rich deals with document requests from lenders
[08:00] Why won’t he send the note, and what does he do instead
[09:00] Teaching borrowers to manage their paperwork
[10:00] Final thoughts on setting boundaries in your lending business

Follow Rich Lennon here:
Website: https://richlennon.com/
Facebook: https://www.facebook.com/rich.lennon.121
Instagram: https://www.instagram.com/richlennon92/