How to Get 0% Funding Using Credit Cards

[Adam Bartomeo]

After emailing a few investors about using credit cards to free up capital I realized that not many people know how to use their credit cards to free up cash without getting hit with huge interest charges. 

I started researching a company that promised to get funding of $100,000 at 0% interest for a year. After speaking with representatives of this company I realized that what they were doing was helping folks open credit cards that had certain promotions. These promotions allowed you to turn the credit into cash at a promotional rate of 0%. The company charges $3,000 to do this and another $3,000 for advice.

So, I started call my existing CC's to see if they had a promotion like this. I got a few no's before  a visa said that they call this a balance transfer. They take your existing maximum minus your balance and transfer it into a bank account of your choice. They gave me 0% interest for 14 months. I tried a couple of others and another visa did the same thing.

There are a couple of small things you need to know. They normally charge a 2% upfront fee (maxing out at $300-$500) to do this. Also, if you have any credit left on the card and you purchase anything they will charge you interest on it even if you pay off the charge in full.

I freed up $55,000!

[Jeff Rabinowitz]

@Logan Hicks, don't get too hung up on your credit score. Yes, the strategy above may lower it a bit but it may not be anywhere near as much as you think. As you add more properties (more mortgage loans) it will be difficult to get bank financing no matter what your credit score is. At that point many investors turn to other strategies to finance their portfolio when they wish to expand. As long as one's credit score is not terrible it is nowhere near as important at that point.