Welcome to passive real estate investing, the show where busy people like you learn

how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Hello my friends and welcome to an Now here's your host, Marco Santorelli's.

Hello, my friends and welcome to another episode of Ask Marco.

Today's question comes from Rose and she says,

hi Marco, I've been a subscriber for over a year

and love your podcast. Thank you. I was hoping you can answer my escrow related question. I am a relatively new investor, one and a half years. I bought a three unit property in Massachusetts in April 2019.

Four months ago, the loan servicer sent me an annual escrow analysis with the projected

shortage that I paid. Today, I've received another letter demanding another check. Basically, every time

I manage to accumulate some cash, I have to give it interest-free to the mortgage company.

Question, is it even worth it to try to handle the property tax payments on my own?

If that path is not worth exploring, what can I do on my end to better manage the escrow?

Thank you in advance, and please stay safe.

Sincerely Rose. Rose, thank you for the question. Okay you've got a simple question and

I'll give you a simple answer. The best way to manage your property taxes, in my opinion and probably in the

opinion of many other real estate investors is simply this. Most, if not all, lenders offer and actually encourage you to use their escrow services

so they have a

collect the property taxes and the property insurance for the property that they have

a loan on, a lean on.

It's in their best interest and it's for their protection to make sure that the property is insured and that it doesn't get

foreclosed on because you have neglected to pay your property taxes for multiple years.

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