Funding Investments with credit cards

[Craig Conte]

is it possible to do this......

Say you have excellent credit and high credit card limits around 40K and you can get new cards with 0% balance transfer and 0% APR for 15 months.

If you open up a LLC and sign up for a merchant account would i be able to charge my personal credit card to the LLC take the money that goes into the bank account to buy a property with it under the LLC.

I was thinking that if you are able to do this then all you would have to pay on the funds are the credit card fees which would be about $1,000.00 which is like a 0.2% interest rate. Then after 15 months transfer the balance to another credit card with a 0% APR for another 15 months, which would in turn get you 2 1/2 years with no interest on your funds except the initial $1,000 in merchant credit card fees. Also you could probably just rinse and repeat with the 0% Balance transfers and 0% APR credit cards for 15 months for a very long time.

This would allow you to collect free rent with their credit.

Am i missing something? 

[Nathan P.]

Your really on to something. I started a business a few years ago on the same strategy. I actually used a company that specialized in funding through credit cards they were able to get me a couple cards with starting credit lines of 20-30k on just an average credit.

One thing you want to keep in mind is that whenever you run the balance over 50% your credit starts taking a dive. So plan on having your credit lines be double the cash you plan to charge.

My business is just getting into about two years and I am at the point now where I am moving balances around from one card to another. Some companies will give you a few different options on the terms but most often they will charge 2-3% of the balance you move. I noticed that as soon as I pay a card down to zero it takes about two months before they offer me another 0% interest promo period.

The nice thing about this plan is your minimum payments are about 2% of your balance and you can reinvest your extra revenue to create some velocity. Just make sure you have a plan from the start. Message me and I can refer you to some of the better cards I used.