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Buying a first property using private funds

Any questions, advice or comments on being a landlord.
warnergran
Posts:1
Joined:Fri May 14, 2021 9:40 am
Buying a first property using private funds

Postby warnergran » Thu Sep 23, 2021 9:01 am

I have just set up an LTD company to manage the start of my property investments. Im due to exchange on my first property however I plan to fund the purchase by BACS from my personal bank account rather than move the funds to the LTD bank account to then sent it from there. How would I record that I have purchased the asset using personal funds on LV or is this going to be messy?

roy
Posts:59
Joined:Tue Aug 23, 2016 11:38 am
Location:United Kingdom

Re: Buying a first property using private funds

Postby roy » Fri Sep 24, 2021 12:35 pm

Hello

Thank you for your post

The best way to do this is to set up a separate account for the payment to go out of. Please follow this method:

Go to Settings > Chart of Accounts > Add Account
Account Type: Liability
Account Name: Owner's account (or similar)
Tick Allow Payments From / To Account
Leave everything else as it is (you can add a description if you wish) and press Save

Go to Property Manager > Expenses and set up the expense if you haven't already done so
To record the payment you made, click Add Payment
Set the Account field to be the Owner's Account you setup earlier - you will find it at the bottom of the list
Press Save

The expense will now show as having been paid by your personal account and not by the LTD company account

Kind regards
Roy


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