How to Start a Property Business with No Money in the UK

 How to Start a Property Business with No Money in the UK

It’s possible to start a property business with no money in the UK, so long as you have the right tools and knowledge at your disposal. But where do you start when you don’t have any money? That’s where this step-by-step guide to starting a property business with no money comes in! Read on to find out how you can turn a passion for home improvement into real cash flow from the comfort of your own home.

If you’re looking to start a business in the UK, but don’t have any money to invest, fear not! Thanks to decades of house price rises and extremely low-interest rates, there are still plenty of opportunities to make money in property, even if you can only pay in time instead of cash.

Do You Have What it Takes?

It may be tempting to jump into property investment, particularly if you’re just starting out and have little money. However, before rushing into things and dropping thousands on investment property, it’s important that you know what it takes to start a property business. For example, many people are surprised by how much work goes into managing a rental property beyond simply leasing it out.

Things like maintenance and tenant screening require significant amounts of time and effort. Are you prepared for that? If not, make sure you consider your tolerance for work before jumping in headfirst. It might be wise to stick with investing in stocks or mutual funds instead until you can commit more time to your investment opportunities.

The Pros & Cons of Purchasing an Existing Property

If you’re looking for how to start a property business with no money, purchasing an existing property might be an option. A lot of people think that if they don’t have $100,000+ cash on hand then buying pre-existing real estate isn’t possible. Buying an existing property has its pros and cons; you’ll want to consider your personal situation and evaluate whether it’s worth going through all of that hassle. If starting from scratch isn’t what you’re looking for, then purchasing an existing building might work better for you—but there are some things you need to know before pulling out your wallet.

Planning Your First Purchase

If you’re starting from nothing, planning your first purchase is one of your biggest tasks. For most people, their first purchase will be in cash. So how much cash should you have saved? As with everything else on the How to Start a Property Business Without Any Cash list, it all depends on how much money you can safely save without putting yourself at risk.

Buy Cheap, Buy Twice!

It’s not surprising that you can find an abundance of used and pre-owned properties, but what you might not know is that buying property used or pre-owned is almost always a bad idea. You may save money upfront, but over time those costs will start piling up, meaning your purchase will end up costing more than it would have if you had bought new.

For example, say you buy an old home for £200,000 and put £50,000 into renovating it—that’s still less than buying an identically renovated new home. And let’s face it: nothing lasts forever, so sooner or later your old house will need even more work done on it.

Start Up Costs

You may be surprised how little you need to start up your own property business, depending on what area of real estate you want to specialize in. For example, if you want to focus on residential or commercial sales, all that’s required is an internet connection and a phone line. You can then create your company website and begin looking for potential clients who are interested in buying or selling property. Once your reputation grows, so will your client base!

Equity, Cash Flow and Capital Growth vs. Rental Income

Make sure you know what kind of business you want. It’s important to recognize that when it comes to real estate, there are three distinct income streams: Equity, Cash Flow and Capital Growth. Each has its own unique challenges and rewards.

It is essential for investors who are just starting out not only how much money they need to start but also which type of investment might be best suited for their needs and skill set as well as where they want their money invested: property or stocks.

Finding Tenants

Once you’ve done all your research and are ready to take on tenants, there are things you need to know. The first is that finding tenants isn’t easy. And while it’s ultimately up to you and your property managers, who typically handle tenant interviews, if they screen poorly and accept someone who doesn’t pay rent or damages your property? Then it falls back on you. Be picky about whom you rent to; having some money set aside for repairs can be worth it and if someone skips out, at least there won’t be much of a cash flow hit.

Managing your New Rental Income Streams

Starting your own rental business is exciting, but it’s important not to get ahead of yourself. Once you have purchased your first investment property, begin by taking stock of all your new responsibilities. For example, did you know that most states require rental owners to pay for both liability and slip and fall insurance?

If you live in an area prone to earthquakes or hurricanes, remember that it will be on you not your insurance if there is significant damage. Do some research into tenant screening and background checks there are a variety of services out there like SmartMove or MyPropertyManager that can help ease some of these burdens. The more familiar you are with what comes next, the better prepared you will be as an entrepreneur!


Starting a business is hard. However, it doesn’t have to be as difficult or expensive as you might think. All it takes is for you to put your mind to it and work smartly the hard part isn’t starting a property business up but rather maintaining your business once it’s running successfully. That said, if you choose wisely and start small, there’s no reason why you can’t start earning money on your terms sooner than later. Good luck!

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