Investing with credit card teasers

[Brandon Kamm]

I have always chunked these in the trash but happened to open one yesterday. Credit card I haven't used in years extending 0% for 15 months and 2% for 21 months. I believe there was a 3 or 4 % fee to use. Curious as to if any of you are utilizing this as a quick means of capital for a project that you may look to flip or refi in a short period of time. Looked to be cheap short term capital with a big penalty if you can't get out in time, much better rates than hard money. If you had a few of these you could quickly have a huge chunk of capital to invest. Curious to thoughts of all on this topic.

[Thomas Dionne]

I flip houses on credit cards and over the last 3 years have paid UNDER 3% on roughly 120k. Total out the door.  I have another 60k on top of that that I am paying around 8.5% for last year or so.  I have another 50k in reserve that I wont use unless/until they offer me a teaser. 

I also got to bid cash and had properties that were not incumberd saving me even more money as a cash HUD just looks so much better.

All you need to do, other than knowing which cards are offering highest limits and how to apply, is get 1 cc that lets you right checks, usually from a credit union. You can call card companies and ask for checks and some have them. 

I have 8 cards and 2 with checks but I turn them all into cash very cheaply. I simply write my LLC a check for 25k (or whatever card limit is) then I balance transfer that 25k to a card without checks, starting with the best balance transfer offer. I have gotten 0% for 18 months sometimes. Sometimes (rarely) they even do not charge a balance transfer fee, sometimes they charge a max of 150.00 but most times its 3%. But a 3% one time for for longer than 3 months is money under 3%. Compared to my hard money rates of 4pts and 12% (OR 30% annually if your flipping quick). Its a no brainer. Once you become someone who balance transfers money youll get offers galore.

If your willing to spend hours searching for homes or buyers or swinging hammers, you should definatly think about building a credit portfolio and getting some homes that way. Takes me 15 mins a month to manage. You cant do it to the tune of 1MM but like all things in real estate, its just another tool.