Have you ever offered cash, but funded with a CC?

[C Rich]

For most properties, lenders won't do a deal if a property needs work. Choices are HML or local banks. If you didn't want to deal with that, but have good credit and a 'charge-a-plate' (hee hee), have you ever purchased on that card and refinanced.

I'm thinking that you've got more leverage in a deal once you've secured the asset and should have no problem refinancing. Has anybody done this before?

What was your experience?

[Teresa F.]

Hi Brian -- First -- I have never used a hard money lender. I have considered becoming a HML by arbitraging my credit card loans to offer a hard money loan. That said, I haven't done it yet.

I receive the zero interest offers from my credit card holders. It is usually zero interest for a year and the cost to use the cash varies depending on the card $75 flat fee to 4 percent of the amount borrowed.

The money is deposited directly into my bank and I promptly get a certified check and walk into closing.

Since this is an important part of my business, I pay close attention to my credit score and I have a routine of calling my creditors twice a year to see if I can get better terms or an increase. I have also moved some of my personal credit over to a business credit card (this resulted in my interest rate going from 9% to 6%).