Investment Advice



New Member
Hello, I am in the process of writing a business plan for a buy to let property company that I want to start at some time in the next 12 months. I have read a lot of helpful posts on this forum but I am looking for some niche advice for my specific situation and wondered if I have considered everything correctly.

I have around a million pounds that I would like to begin investing in property & I'm looking for the most efficient way to do so, it's worth saying at this point that I'm not looking to make quick money, I want to continue to invest and reinvest in property for the foreseeable future - for this reason my plan in a nutshell is to purchase between 10-12 "ready to rent" properties to get the Cash-Flow going and basically use the rental returns from each property to purchase more properties once there is enough cash available after management fees / maintenance / overheads.

I'm not in a rush to buy the next property, I will do so when the money is there. My goal is to build a nice life for me and my family, I don't want to get involved in HMO's, Student lettings, buying low and selling high etc. to begin with as I think that would make things too difficult and complicated for me. I would like to diversify and try other things in the distant future but this is the plan for now.

My main question is, am I best to start up a LTD company or work as a sole trader? From research everything is pointing towards LTD company for me for the following reasons;

1) I don't want to spend any of the money earned from rent, I want to reinvest - on paper if I reinvest the money earned in to new property then the company will not be in profit, I will not take a dividend but may take a tiny wage. Does this make sense? Am I missing any form of tax that will hurt the business in the long run.

2) I don't want to sell any properties, just remortgage or sell to pay off the property after the initial 25 year mortgage term. The only risk I can see is the properties falling under the value of the mortgage and the banks calling the money back... does this happen? how risky is it?

It seems that as long as each property is at the very least earning back enough to cover the interest only mortgage then I will not lose any money.

I will be getting a lot of proper formal advice before starting up and I'm spending a long time researching before doing anything but I'd love to hear from anybody that's started in or is currently in a similar situation and had success. If you see a tonne of red flags in my line of thinking please let me know, I'd love to learn now rather than learn later.

Also if there is any specific books, studies, documentaries, interviews etc that are essential please do send over a link. Thanks all!


Hi @Fosse

For starters you might find the following YouTube channel and eBooks very useful:-

The is also a mentor service run by the site own @Nicholas Wallwork - I am sure he will be able to explain more to you :)


You seem to have a relatively straightforward and uncomplicated plan for the future which makes perfect sense. However, you may be spreading yourself a little thin looking at up to 12 properties for your million pound investment fund. Some additional comments:-

• A limited company does sound sensible but take advice from an accountant
• Your idea to reinvest funds and look longer term is perfect for property investment
• It is essential to research as much information as possible
• Take advice on the taxation element to avoid any unnecessary charges

I certainly wouldn’t rule out the idea of investing in HMO/student accommodation and I certainly wouldn’t rule out the idea of selling a property especially one which had perhaps run ahead of the market value. You can still look long-term but where sensible take a profit on an investment which has performed well – or sell one which is going the wrong way.


Active Member
I have read your quandary and some of the comments above and agree that a limited company does make sense but I would also speak with your accountant. There is also the issue of potentially spreading yourself too thinly with regards to investing in 12 properties with your £1 million funding pot. Personally, I would be inclined to go for fewer properties, higher value and therefore higher rental income. The e-books that have been mentioned above have proven very useful to me when setting out on my property investment journey.