Cheapest hard money you're ever going to get!

[Tim Bee]

Wondered if anyone else has done this.  I have two credit cards.  Chase and BofA.  I canceled all other cards and have perfect credit.  I have limits close to 100K on each card.  Every year or so I buy a fixer-upper rental all cash.  It's been my experience that regular banks freak out when the home has lots of damage and won't lend on it.  And we also all know hard money isn't cheap and interests rates are up.  So my solution was to utilize the zero interest direct deposit promotions from credit cards.  I take out 97K from the card, and now have a debt of 100K because of the 3% fee.  Now I have a zero interest unsecured debt and 97K more cash than I had before.  I now can complete the purchase and have my tenant help pay off my card.  Secondly:  lets say at the end of 18 months I wasn't able to complete the card payoff.  I do a direct deposit from the other card and pay off the first one.  So I continue the zero interest as long as I want.  The only fee is the 3% every 18 months.  It's so easy to do it I wondered if anyone else is doing this or maybe has an even cheaper way. 

[Tim Bee]

Quote from @Ecaterina Katerina Morosan:

Oh wow! I've heard of this strategy years ago but haven't met anyone who is actually using it. How do you get your credit line increased up to $100K with each bank?

 Call every 6 months and ask them to raise it.  Tell them you want to go as high as you can or maybe suggest a high number and see if they will honor it.  If your at 20k tell them you want 75k.  The worst they will do is maybe only give you 40k.  Then call back again in 6 months.  Do this over and over until you hit their max.  FYI only use chase and b of a. The other cards don't raise it high and don't do many direct deposit promotions