Credit Cards as Quick Money for Real Estate Investing
Many people do not really think about it but you can save a great deal of interest, especially with hard money lenders, if you have worked hard to attain good credit.
You can do this by utilizing the balance transfer checks that most credit card companies are sending you in the mail. A good deal of them have a 0% till March 04, or 1.9% till January 04, or 5% for the life of the loan. Even the Discover platinum has a 0% for the life of the loan if you make two purchases a month of $1 each. Most of these card do it for a flat per check fee of $50. That is a low cost to pay to write a $40,000 check to yourself for 6 months.
This can work as quick cash for flipping a property, or doing a rehab for a few months. If you do not already have these types of credit cards, start searching the Internet for companies with good balance transfer rates / periods and take advantage of the resources you have sitting right in front of you.
Not a bad article, but it needs a little more info to really make it useful. CC's can be better than HML's but they will only work for people with great credit and good money management.
Also, while it's fairly easy to obtain up to 10 $5000 limit cards, it's actually more difficult for most to qualify for 1 $50K card. It's also not a good idea to spread the money over 5-10 cards because then the fees will start to really add up.
Roger
I am financing my first rehab project entirely on credit cards. I am currently borrowing about $50,000. I jumped into this full time (or nearly) and it is very hard to manage which payments must be made when and whatnot. I can't wait to the day that I will sell my house and cash in! I should have it up on the market this week. It is located in central iowa. 3% BCC (birddogs??--email me)
Thank-you! I had an offer for 0% til 3-04 25k limit & was told by re mentor NO WAY, but it makes perfect sense to me. yes good credit is required & I would never stretch between 5-10 cards to confusing & to many fees