HDT Cash Flow

[not so lucky]

Hi folks, I am after some advice from those that have some experience operating their HDTs. I have recently purchased my 1st IP in my HDT . Really happy with that and all the great people that helped me with it. So now I am settling into maintaining it and thinking about my next purchase.

I have rent going into my HDT bank account and I am paying the loan from my personal income. My question is how do I manage the cash flow from the HDT into my private account to maintain loan payments, particularly when I have a few more properties and the cash flow is a bit tighter.
eg, can I just transfer the funds each month and balance the books at the end of FY, or can I pay the interest bill annually when I do the distribution from the HDT?
I would like to hear how others manage their cash flows with a few IPs.

Thanks

 

[redwing]

Accountant

Your accountant or whoever helped you set up your trust should be able to help you with this shouldn't they?

Do you have to have a solicitor draw up a loan arrangement between you and the trust??

Sorry, haven't got a HDT operating so cant help...

 

[Ebbie]

can I just transfer the funds each month and balance the books at the end of FY

Yes, I have a hybrid trust and my accountant is fine doing it this way.

 

[not so lucky]

Thanks for that. Anyone else have different approaches to managing cash flow and distributions from HDTs?