How To Raise Finance To Build Your Property Portfolio?


How to raise finance should you wish to invest in property on a longer term as a professional investor?

A question that probably troubles the most and a solution without which we can’t move an inch.

At Limitless Monks, when we started our property investment journey we started by investing our own money.


Needless to say that met the predictable end of running out of money by the time we bought a couple of units.

On a positive note though:

That pushed us to explore ways and means by which we could raise funds.

We have divided this into 3 different posts given the number of options at our disposal to share with you.

This post is a summary of options we explored and implemented few to raise finance for our property investment journey.

1) Vendor finance

Vendor finance is simply the vendor (seller), providing some of the finance on the property at the time of sale.

What? Is that really possible?

Yes, It is.


What do you think of the 0% finance option for purchasing a car?

It is a loan being given by the seller to the buyer to purchase the car. You get the car and pay the loan over a period to own the car.

In case of property, this is a similar transaction where the vendor is providing a loan, for the buyer to purchase the property.


There are many scenarios where the vendors don’t need the money immediately after the sale of the property, but they do want to get rid of the property.

Be it landlord wanting to retire or don’t want to take the headache of renovating the property.

How about motivated sellers?

There are several reasons why few sellers would be desperate to sell the property.

Bankruptcy, divorce, death of a relative, moving out to different place due to new job or business, getting behind on payments hence the risk of being repossessed.

By offering vendor finance, you probably are doing a favour and creating a win-win situation for both yourself and the vendor.


This strategy works well if you are discussing with the vendor directly.

During the conversations while viewing or negotiation, discuss vendor finance as an option.

A quick couple of questions could be:

  1. What are you planning to do with the money after the sale?
  2. Do you need “all” the money immediately? If they don’t need all the money, they could lend some vendor finance.

MUST Do’s:

Please do your due diligence around the deal, if the vendor can provide the finance.

If they can’t it will put yourself and the vendor in jeopardy. If you don’t have alternative options for funds, the deal could fall through.

Absolute must that you discuss all the legalities with a real estate solicitor. Always be on the right side of the law.

We discussed our experience of vendor finance in the article Angel Investment: Raising Investment For Growing Your Property Portfolio under section vendor finance.

2) Property Sourcing

Limitless Monks are registered sourcing company and do source properties to investors as part of our property investment journey.

If you believe in “Compound Effect” then here is the thing.

Sourcing one property may not get you the funds you need but if you repeat the system and source multiple properties with commission coming to your account consistently…….

That becomes a different story.

You will be in a position to raise finance enough to place a deposit on a property irrespective of the location you wish to invest.

Property sourcers play an important role in the journey of many property investors, who either don’t have time or lack skill in finding those deals.

Additionally, it benefits you as an investor.

What kind of benefits? You may ask?

If you have allocated time to view properties to source them to potential investors:

  1. You get to know the investment area more, as you are spending a lot of time there.
  2. You get to build relationships with the estate agents, letting agents and other power teams.
  3. If you have created a solid build team, you could offer project management services as well once the property investor completes on the deal, another source of income.

What do I need to do to source property?

Firstly, you need to set up property sourcing as a business and adhere to legal compliance to ensure you avoid any financial penalties.

This post summarises in detail on how to setup a sourcing company with all necessary checks and balances.

3) Angel investment

The most common practice raising finance within the property community today is angel loan or angle investment.

At Limitless Monks we have been fortunate to build a network who have had the opportunity to invest with us on our properties.

If you follow a simple “given when then” scenario:



The interests rates are low and the likelihood of interest rates even going lower if the market crashes


You ask investment for higher interest after building a trust relationship


There is a high probability of you securing the investment.

It probably is easier said than done.

However, with a right mindset and being able to build your trust relationship with people, one can raise funds ranging from as small as £10K to a million+ depending on how limitless the deal is and you are.

This post here summarises nicely on how to raise angel investment to grow your property portfolio.

4) Refinance your property

Refinance is one other way we have raised finance for our first few properties in our journey.

If you have a property that has enough equity in it that you could remortgage and cash your equity, you are able to raise funds for your next purchase.

If I have to personalise this to our experience, our first property was at £46,500 and we could not get a mortgage for that amount on a Limited Company.

The only option for us to raise finance at that time quickly was to cash out some of the equity within our existing home and that gave us a good startup capital to do a cash purchase.

  1. We were able to raise capital for less than 2.5% interest. Cheap capital.
  2. After the renovation, we were able to refinance the property and get our money out.
  3. We kept the money to invest further as the cost of money was cheap.


  1. Please ensure that refinance terms and conditions allows you to do what you want to do with the raised funds.
  2. Make sure you can afford the repayment of additional loan raised post taking out the equity.

And finally to conclude:

As a little note of caution and a disclaimer, please note that we are not financial advisors and you as a potential investor have to seek professional advice from your broker/solicitor for all your fund raising requirements. This post is just our experiences of what we implemented and should not be seen as professional advice.

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