Funding Deal with Credit Cards or Loan

[Victor Mays]

Hi everyone,

I am starting my first flip & I'm looking for funding options. I have run into a couple of companies such as Midwest Corporate Credit, & Pathway financial that help you get unsecured funding or credit card funding with limits 20K-40k or more, etc. for 0% APR for 0 to 12 months. They charge 10% for their services & provide a variety of options. I'm looking to get a loan to fund the construction of the project for 60k max at a low interest rate. Is the credit card route a good option? What is the Pro's & Cons? Would you suggest getting a loan instead? If so, who do you recommend?

[Kenneth Garrett]

@Victor Mays

If the credit cards are a low interest rate then I think it’s fine.  Remember you will have monthly payments so make sure include those payments in your numbers.

How are you purchasing the property?  If you are going with a residential loan, the new unsecured credit card debt will impact your credit initially.

Good Luck.