Credit Card Source of Funding

[Dan Hill]

OK.  I have excellent credit ( 780 ) and numerous credit cards with a total credit availability around 150k.  Question: how can I effectively use the credit available to me in my real estate investor business?  Cash advances are expensive so I don't want to do that but how else can I take advantage of the credit cards?

[Chris Simmons]

I am in the tail end of this as we speak.  I have used the checks that get mailed to me and have paid fees anywhere from 1% to 3% to access the funds and in return get 0% for 12-19 months with interest only payments required.

This has allowed me to purchase a single family flip, 2 town houses and fund a new driveway for a duplex i recently bought.  

Right now, I am sitting at about $120,000 in credit card debt but have 3 properties without liens because of it.  I am almost done with the flip house and the two townhouses are rented and cashflowing.  

I will sell the flip house and retire around $70,000 of the debt and let my remaining 9 rentals to take care of the rest in short order.  

Then I can go to my commercial lender with 2 townhouses free and clear or close to it, collateralize those to free up additional funds to go buy more properties and releverage my credit cards again as needed when the cheap money offers come back my way.

For what it is worth, I have seen my credit drop from low 800's to upper 600's over the last several months, but this is just because of the new debt load.  Once paid down, my score will rebound and then some.  It's part of the process.