We apologize, but the forums are closed for new posts. Click Here To Join The Unemployables Facebook Group

Welcome, Guest. Please login or register.
May 07, 2021, 05:22:49 pm
Home Help Search Calendar Login Register

Welcome, Guest. Please login or register.
May 07, 2021, 05:22:49 pm
Home Help Search Calendar Login Register

Author Topic: Credit cards to buy invest. properties? Am I crazy?  (Read 4659 times)

Offline Purspeed

  • Member
  • **
  • Posts: 66
Credit cards to buy invest. properties? Am I crazy?
« on: August 22, 2006, 12:17:24 pm »
Can you buy properties using credit cards? (let's say you find a  70K properties and you have five 15K credit cards...)

What am I missing?

Offline JOHNNY Q

  • Member
  • ****
  • Posts: 568
    • http://www.therealestatevaultstore.com
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #1 on: August 22, 2006, 10:49:35 pm »
You can but, you better have your ducks in order. Credit cards is just a leverage tool use, if you have it, can can flip that property in 30 days are lease. Look at lease option, will explain how it is done later...tired. There is a book on this site that talks about it. No credit and no of your money. After  you read it then we can talk.
John Quebedeaux-CEO-Quebedeaux Financial Investment Holding LLC
Residential, Commercial, Construction, Land Acquisitions, Lot Loans, Bridge Loan, Hard Money, Foreclosure Bailout & Short Sales.MTN, BG, SBLC etc...

Offline Purspeed

  • Member
  • **
  • Posts: 66
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #2 on: August 23, 2006, 12:41:28 pm »
Well thank you very much for your reply.

Who would actually charge the credit cards? Escrow?

Or, would I have to get cash advances?

I look forward to your info! ;)

Offline JOHNNY Q

  • Member
  • ****
  • Posts: 568
    • http://www.therealestatevaultstore.com
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #3 on: August 23, 2006, 03:59:35 pm »
Do not recommend unless you have your ducks in order. Cash advance charges is 3-% to 5%. Need to be cashier check. Need to confir with  escrow officer. Any informoration I give and an other person should always get a second opinion. That is doing your homework so there will be no surprise or wrong assumption.  
John Quebedeaux-CEO-Quebedeaux Financial Investment Holding LLC
Residential, Commercial, Construction, Land Acquisitions, Lot Loans, Bridge Loan, Hard Money, Foreclosure Bailout & Short Sales.MTN, BG, SBLC etc...

Offline Purspeed

  • Member
  • **
  • Posts: 66
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #4 on: August 24, 2006, 11:38:57 am »
Do you have the name of the book?

Having your ducks in a row means what in your terms?

Thank you!

Offline JOHNNY Q

  • Member
  • ****
  • Posts: 568
    • http://www.therealestatevaultstore.com
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #5 on: August 24, 2006, 12:53:07 pm »
There is no book. Just experience and access to experts. Get youducks in oreder is a term I use mean to dot you i and  cross your t. Attention to detail and have back up plan.
John Quebedeaux-CEO-Quebedeaux Financial Investment Holding LLC
Residential, Commercial, Construction, Land Acquisitions, Lot Loans, Bridge Loan, Hard Money, Foreclosure Bailout & Short Sales.MTN, BG, SBLC etc...

Offline Purspeed

  • Member
  • **
  • Posts: 66
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #6 on: August 24, 2006, 10:17:18 pm »
Thanks Johnny Q. Who are the resident experts when it comes to these sort of  deals?

Offline involvedsolutions

  • Member
  • *
  • Posts: 43
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #7 on: August 24, 2006, 11:14:12 pm »
Its definetly not crazy to do that.   But the "Ducks in a row"  Statement is not to be missed.  

You must have a plan if you are using this method.   I have done this twice.  

I have a merchant account,  I charged the amount,  I only had a 1.24% fee.    I then did the casheirs check through my bank where the money was deposited automatically.  

Now that i had the home in my possesion,  I had a hard core plan to make the house worth more to obtain a single refinance mortgage for it.   Had the appraisel done and i had gained 20%.     I got the 80% value,  refinanced quickly cause 80% is much easier then 100%  And usually really fast.

I had my ducks in a row.   If you don't have a set plan and potential to pay the credit cards off quickly  like within 30 days  maximum 60.  Its not a go.

I got the home fixed up in 20 days the refinance took 5.  3 days to possibly pull out if i decided too.. then 2 daays to fund.

I paid the credit cards by the grace period having no intrest acrue.

If the property cant be easily financed or improved dramartcally to increase the value in the short term they aren't smart.

Plan Plan Plan and Have discipline.  Credit cards in use like this are like guns.  In the right direction they're great,  in the wrong direction they could kill you.

Offline Purspeed

  • Member
  • **
  • Posts: 66
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #8 on: August 25, 2006, 01:11:09 pm »
Wow. Thanks for spelling out that  scenario!

Any other scenarios or pitfalls?

What type of merchant account do you recommend for charging the cards? Paypal?

So, you charge the credit card account instead of pulling cash advances? (to save money and avoid limits?)

Offline involvedsolutions

  • Member
  • *
  • Posts: 43
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #9 on: August 25, 2006, 04:52:48 pm »
I'm a member of costco.... costco had a merchant account program so its easy to do.   Just run the card and sign for it.  Just like you did it.  Now one thing i didn't consider is depending on your intrest rate and introductory rates.

I found one where the Credit union has the card for 5.99 percent fixed.   one had 12 months no intrest.  So anything to pay pays to the total... so your equity builds up quicker, but the payment program with them is what matters.

But the wise statement posted earlier is reiterated "Ducks in a row"  

Mine was 50,000 and 25,000 dollar credit lines.. bought a cheap house needing work done.  quick equity.  so 75000 - 1.24% was quick for me.

The intrest rates on money done by advance is charged a higher separate intrest rate.  so the merchant account will pay easily for its self.  My equiptment also runs wirelessly.  So anywhere i'm near cell phone tower that emmits signal i'm able to connect and do it fast. Like when collecting rent :)

But find a situation and the right credit.. it took me 4 solid years of work to build my credit.   I hate FICO scores they're stupid.   Fico scores show  I LOVE DEBT.  I hate it but,  I had to pay thousands of inrest to buy the lever i have now. so it works.


Offline JOHNNY Q

  • Member
  • ****
  • Posts: 568
    • http://www.therealestatevaultstore.com
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #10 on: August 25, 2006, 05:22:21 pm »
I started a catch phrase. Get your ducks in a row.

Make sure all your ducks are facing the same direction!  
John Quebedeaux-CEO-Quebedeaux Financial Investment Holding LLC
Residential, Commercial, Construction, Land Acquisitions, Lot Loans, Bridge Loan, Hard Money, Foreclosure Bailout & Short Sales.MTN, BG, SBLC etc...

Offline involvedsolutions

  • Member
  • *
  • Posts: 43
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #11 on: August 25, 2006, 06:08:54 pm »
Yup.  You did.  

Offline Purspeed

  • Member
  • **
  • Posts: 66
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #12 on: August 25, 2006, 07:48:48 pm »
Forgive, but I am still a little foggy on how to get money from the credit cards.

Do you have a business with your own credit card machine? How do you get the cash from the cards?

How much should the credit limit be, say, on one card? (just to get a feel for limits I should try to obtain)

Offline involvedsolutions

  • Member
  • *
  • Posts: 43
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #13 on: August 26, 2006, 02:31:56 am »
higher balances on fewer cards.   Makes you more desireable to other companies.  if you have everybodies cards they're not going to give you specials like 0% intrest on transfer balances... or other enticing things.

Just a Tax ID  easy to obtain,  the equiptment,   and a merchant account.  Paypals equiptment is the internet....  my equiptent is phyical,  but i could accept online too if i desired.

When you open a merchant account it is tied with a business checking.  The fees are taken out then the rest of the money is deposited into the account.  Then you go to your bank,  withdrawl by cashiers check.  simple as that.  3 credit cards  swipe. sign swipe,sign,swipe,sign.  your fees taken out automatically.  And in your bank account.  

Thats it.  Banks have merchant account programs too.  i find them to be more costly,  costco at 1.24% was the best i could find.   so 100,000 would cost 1024 dollars to take out,  vrs higher at 3% and 5%.  3000, to 5000.    Equiptment pays for itself.  

And its nice to collect rents that way... or security deposits,  application fees... ect.  Its just handy.  

Offline Purspeed

  • Member
  • **
  • Posts: 66
Re:Credit cards to buy invest. properties? Am I crazy?
« Reply #14 on: August 26, 2006, 07:44:39 pm »
Oh, I see now. Thanks!!

 




SMF 2.0.15 | SMF © 2017, Simple Machines