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Updated over 1 year ago on . Most recent reply
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Funding deals via business credit
There is a lot of info out regarding obtaining business credit to fund your business. We're already familiar with the process, as we already have over 100k of business credit for our LLC. We're also familiar with some of the strategies to legitimately liquidate a business credit card. The biggest hold up is that the majority of the information available will tell you how to fund a business, but leave out how to make the monthly payments along the way.
We're looking to use business credit as down payments and for rehab and closing costs. The exit strategy is to refi and clear the cards to be able to reuse the for another project. We understand the strategy itself is contingent o a lot of different factors, and has high risk,but we all have to start somewhere. (So for now, let's just assume all debt is less than the 80% appraised value.)
My question is, how are others paying the monthly payments on these cards/loans while the property is still a project and not cashflowing/sold?
Although everyone's financial picture is unique, I want to see how others are deploying this strategy?