Credit Card Financing

[Spencer Cuello]

Has anyone taken advantage of 0% APR credit card usage to help fund a deal? I know some companies offer 0% APR for new cardholders for a certain period of months. Read online of some people utilizing to provide liquidity for a deal and want to learn more.

[Chris Seveney]

Quote from @Spencer Cuello:

Has anyone taken advantage of 0% APR credit card usage to help fund a deal? I know some companies offer 0% APR for new cardholders for a certain period of months. Read online of some people utilizing to provide liquidity for a deal and want to learn more.

I know a lot of people who do it, I would ask what is your exit. for example we have done it when we were doing some renovations and had a line of credit as well that we were going to transfer the cost too. As long as you have an exit and do not get stuck with the penalties and interest if you do not pay it off in time, its not a bad idea. Where it goes wrong is people use it to renovate and sell a property but it takes a lot longer and they get caught paying all the penalties and fees which are a crusher.

[Michael Carbonare]

@Spencer Cuello  
I have, and just the other day I wrote about it here. I don't recommend this approach as standard operating procedure, but in that deal, my first, I was somehow able to walk away with a $30K profit.  

[Tom S.]

@Spencer Cuello As others mentioned, can be used if it's short term only and you have a plan to pay off before the 0% expires.

Also note it's best used for the rehab portion of a deal after the purchase is complete.  Typically you can't use the CC funds to fund the downpayment of a conventional loan.  Also be careful of applying before the loan closes, as the lender will ask what the inquires are for.

Good luck!

[Mohammed Rahman]

Never taken advantage of something like this and I'm averse to it... the crunch time with a ticking promo period with an overkill of fees/penalties is not worth it for me.

[Spencer Cuello]

Thanks all! For background, I was thinking of using it for half of an investment in a shorter term syndication that I would aim to pay back before the 0% interest promo expires.