Soon to graduate from a construction project management degree and am in the very early planning stages of setting up a company to renovate/develop properties in and around London, and looking for some good advice.

I believe the appropriate company to set up would be a private limited company as there will be two parties involved; (I) an investor (II) the developer (myself). Is this the best option?

My main question is, what are the pros and cons of using 100% cash vs. taking out a mortgage? I have read that it is never a good idea to use only cash, but nowhere that I’ve read this really give an explanation.

In terms of investment, I’m looking at starting small and not taking on anything too big, that I don’t have experience of (I’ve already developed a tiny studio flat), in the region of £300,000 and expect my next development to be of a similar budget.

Thanks, really appreciate any advice you can give me starting out

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