balance transfers allowed for downpayment???

Financing, Hard Money Lenders, Private Money
1

Hello Fellow Investors…

Can anyone suggest several commercial lenders for apartment buildings who will allow the 20% downpayment to be paid through credit card balance transfers?

I have great credit, but every lender I’ve spoken to so far will not accept balance transfers. Any suggestions as to lenders or the best way to identify these specific lenders?

I’d appreciate your help.

2

Borrowing funds from your credit card just isn’t a good idea for any reason let alone real estate. The rates charged on balance transfers run very high not to mention they will have an impact on your credit. You’re better off waiting until you can save the cash or find a lender to fund your deal.

Thanks -

Herman

Herman A. Brunson, Jr.
HBInvestCo, Inc.

3

In general, I agree with what Herman said. It is, however, possible to find deals every now and then on credit card advances. My wife and I got started with our first property by taking out an advance on one of my cards. It was not an advertised deal. I called the company and they offered me any amount I wanted up to my limit at 3.5% fixed for the life of the balance. So we did that and then quit using the card. We then started paying huge payments each month to bring the balance down. It gave us the money we needed to get into our first property at a low fixed rate. I can’t think a bank would go for balance transfers, but if you can take an advance and put the money in your acct. you might be able to make that work. Of course, just realize the higher you make your balances with respect to your limit - your score will drop.
I’m not advocating or recommending this method as maxing out your credit could put you in high risk of default. I’m just saying we were able to find a way to make it work to get us into the game.

4

Thanks everyone for your feedback.

I’ve been able to get new cards that will allow 0% APRs for the next 12months, with low transaction fees. So I plan to purchase a commercial property and to re-fi before the year is over.

There are so many lenders out there, so I’m really trying to find a few that will accept the balance transfers.

I’ll be putting the funds into my acct as you suggested and wait 2 or more months before approaching a lender, but I know that they will just make the connection by looking at both my personal and biz credit accounts. Hopefully, they will overlook this as long as I’m paying on time and I have bank statements.

It would save me tons of time and energy if I just knew which lenders to look at. Anyone who has suggestions, please email me directly if convenient.

Thanks.

5

You need to start calling around and asking all the banks in your area about your potential deal. Their lending policies can change any day because of current market conditions. Some banks won’t even be willing to deal with commercial property. Just move on and keep calling. Find out about how much you’ll need to put down and see how that fits with your savings and credit limit.