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Alvin

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  1. @lah111, it makes sense! Thank you! The little things make life much easier. Right, the card reader authentication is a real pain sometimes if it is not with you especially when away and need to make a payment.
  2. @lah111 thanks, good point. I'll make sure to include this item in the clause!
  3. Thank you very much @onkar and @alja nosm. I am going to use the investor's money for a flip, so it won't be feasible to return the interest monthly in my case over the 12 months. It would be on the 12th month or earlier.
  4. Hello @onkar Thanks for the information and your point of view. It makes sense, I already have a business bank account and will see what they need to open another one.
  5. I am thinking of having 2 separate SPVs for BTLs and Flips. I would really appreciate if I have some feedback regarding how others manage the bank accounts. Do you have 2 separate bank accounts? one to be used only for BTLs and one for Flips? If yes, do you open it with the same bank ? Thank you
  6. I have an investor who can provide a private finance to be used for buying a property. I will be adding my own money to it. For whose using investor's money, how do you payback the money loaned and the interest payment. Say 20k is loaned with a fixed interest rate of 10% with pay back after 12 months. Do you return the £20k + 2k Interest payment at the end of the 12 months and let the investor deal with his tax? Thank you
  7. @charlessrhodes, It depends on your plan, if you just want some cash flow from the rent like @matt hall mentioned, you can do down this route. However if your goals is to grow and have a certain amount of income over the years, you can get buy to let, leaving your money in, or do a buy refurb and refinance (leaving a small amount of money in) or potential flip as a first project if the project looks good. I am starting with the same money pot as you and writing down you concrete goals helps to drive what you need to look for. Do you mean steady growth of the property of appreciation ? Growth in revenue stream?
  8. @naveedj it is better you have all your in/out related to the business to your business account so that it is easier to manage in terms of accounting, else it will be difficult to differentiate from your personal debits/credits. So, best to check with your accountant. Director's loan is the lending to the business. You can transfer the money, however this need to be documented and agreed in the minutes of the company board meetings. You should also put a note in the transfer that it is a director's loan so that it is trackable. Your accountant can provide you more details.
  9. I was mentioning checks on ABC Ltd as in your example, ABC Ltd got the money as director's loan. The same person has taken a personal loan, injected into ABC Ltd, in addition being a director. Then ABC Ltd loaned to SPV. If you follow the cash flow, it looks like all is linked. It's best to check with both an accountant and brokers who specialises in the intercompany loans to avoid any surprises and smooth any process once you start.
  10. @joe brown a personal loan would go to your credit history if I not wrong and the lender would potentially see if you have a loan repayment. Secondly, lenders do not usually like other loans to be used as deposit from what I understand. When applying for loan, you would need to stipulate where the source of funds is coming from and personal loan may be frowned upon, best to check with a broker. I was thinking the same for a personal loan mainly to cover some refurbishment, not be to used as deposit for BTL mortgages or deposit for bridging finance.
  11. I believe that the lender would require source of funds proof as compliance and antimoney laundering checks, etc and would require accounts checks of ABC Ltd and this loan would be spotted. Also if the individual took a personal loan, wouldn't that be on the credit history of the individual. As a director of the limited companies, they will be asked to provide credit history and it would come up as having other loans. The lenders will be making appropriate checks and they will need to cover their risk and you should read their agreements as you will probably be breaching their terms and conditions and will potentially have consequences if spotted later.
  12. referring to point 1. - I did some research and saw that if there is an agreement between my friend and myself for the fixed return, it should be fine. Now regarding bridging lenders, say my friend lends me the money directly to my personal account and I transfer it to my limited company (adding also my own money) to be used as total deposit for the bridging finance. Are bridging lenders fine for this kind of deposit not coming entirely from the director's own savings? do they need proof of the agreement between me and my friend? Will they require proof of his funds? Anybody has done this before?
  13. I have posted this to Progress Journals . Please refer there for update
  14. @alja nosm I am referring to deposit for bridging, not for mortgage
  15. Hello, I am looking into doing flips to build capital faster. I already own a property though a limited company. The problems with using savings only to acquire property are that it takes time to save, months, and you can only do one property at a time. I do not own any personal property or have any other avenue to extract cash to used as deposit. I know a few friends who would be fine to lend me some money for a year. As a starting point, I am looking for suggestions on how to structure the financing with the people. They will only provide the money and not do anything in regards to the property. I will agree to give them a fixed return when I pay them pack. Any suggestion is much appreciated. For example on a property below and I belive the same principle will apply for a more expensive one. Purchase Price : £ 75k Deposit: £ 22.5k I put in £12.5k and the other person put in £10k. I return them an additioanl of £500 (5% much better than interest rate) Some thought I had I was thinking of taking a private loan from the person a few months prior to buying. This agreement would only be between me and the lender. Then, do a director's loan to my current Limited Company and use the money as deposit for a bridging finance. Is that something feasible ? Joint Venture though new SPV created only for this property but the downside would I would need to pay tax under my own name and it would not be worth to build capital. How to put the private loan directly to my current limited company so that bridging lenders accept it? They are not director's so it cannot be a directors loan. Is there any way? How does that work to put the friend as a second charge on the property ? Does the above make sense ? Any other ways please? Thank you
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