Using business credit cards to fund buy and hold. Help?

[Bukka Levy]

I've heard a tremendous amount about using promotional 0% interest business credit cards to fund buy-and-hold investment deals. Dozens of podcasts & articles explaining the how-to's and the advantages of doing this. Okay, fine. I get it.

However, the one thing I've never heard is how exactly you go about paying these cards back before the introductory period runs out and the accumulated interest bankrupts you.

The only option I can figure is that you (hope to) refinance your cash out and pay back the cards(?). This, of course, would require the bank appraises 20% equity on top of what you paid. 

Additionally, if you got a loan on top of your cash advance (say, you only had enough cash for a down payment) then I imagine you're also paying loan fees twice.

This may all be fine and dandy if the numbers work, but is this a viable plan or a total gamble?

[Daren H.]

I completely disgree with the notion that using credit cards for purchasing properties is irresponsible but I can respect the opinion. Borrowing money in any fashion is irresponsible if you don't know what you are doing whether it be from a bank or a friend. I have performed this exercise a number of times using my own personal credit cards, and other lines of credit. For instance, I have 3 personal cards with limits of ~$60K, ~$30K, and ~$30K. I get 0% promotional offers for 12 - 18 months consistently. My credit card companies will direct deposit the cash into my bank account in a day or two upon request. Origination fee ranges from 1.5% to 3% of the cash advance with 0% interest going forward. I find a deal and purchase the property at a discount with the cash. I rehab the property and then later go and get 30 year fixed rate conventional financing based on 70% - 75% of appraised value.  You gotta know your after repair value. With the cash back from the financing I pay off the credit cards and wait until I find the next deal to do it again. I have even bought properties with this CC method and sold them wholesale a week later. Got the cash back from the sale and paid off the card. Stuffed the profit in my pocket :) Sometimes I dont even pay the credit card off if I have another deal in the pipeline since I am not paying interest on the money. I just use the money again. I view it as using other people's money, no different than a private lender. Be careful about credit utilization dinging your credit score below 720 and clogging up your refinance. I am not saying my method is scalable but it does work with discipline.