Raising the deposit and capital
The deposit and purchase costs are usually the first real obstacle. The good news: there are more routes to that money than most people first realise.
Common sources of capital
- Personal savings
- Releasing equity from your own home
- Remortgaging an existing investment property
- Cash from savings or investments
- Selling shares or other assets
- Borrowing from private investors
- Joint ventures (partnering on a deal)
- Director's loans into a limited company
- Retained profits from an existing business
Most investors use more than one of these over time. Early on it's often personal savings or equity from a home; later, the capital recycled out of earlier deals does the heavy lifting.
Whatever the source, budget for the full cost of getting in — not just the deposit. Stamp duty, legal fees, broker and valuation fees, and a contingency all need to be funded on day one.
Raising via a company changes the tax and lending picture — worth understanding early.
Company vs personal nameKey takeaways
- The deposit plus purchase costs is the first hurdle — plan for all of it.
- Capital can come from savings, equity, JVs, private investors or retained profit.
- Recycled capital from earlier deals becomes the main engine over time.
Want to check whether a real deal is financeable? Shape it, then send it over for a sense-check.
Open the Deal ShaperModule exam
Answer all 4 questions. You need 75% to pass and complete the module — anything you miss points you back to the right section.
1. Which of these is a common source of deposit capital?
2. Beyond the deposit, what else must be funded on day one?
3. A joint venture is:
4. Over time, the main engine of capital for most investors becomes: