Using a HELOC and Credit Cards to fund a Flip?

[Johnny L.]

Quick question for all my fellow BPers!

I am looking to do my first flip, and want to fund it using a HELOC. The plan is to purchase the property with cash using the HELOC and then using a credit card to fund the rehab costs. My question is...have any of you used this strategy? Also what tips you may have for me? Thank you in advance for all the replies!

Johnny Lujan

[Wilson Churchill]

I use HELOCs and CCs to buy rentals and flips.

Tips:

1. Shop around for the best rate on the HELOC

2. Use balance transfer promotions with the credit cards, or use Home Depot and Lowe's credit cards to finance the rehab. Ask for credit line increases after they have been paid off and your scores bounce back, and apply for additional cards simultaneously to limit the impact on your credit.