Use a credit card for all flip materials to build up points?

Question

I've done 3 live in flips and have always used cash on hand. After I sell the 3rd which should be in a month or so, I hope to start doing side houses and flip 3-5 a year. That got me thinking about all of the materials I will be purchasing over the year. I had planned on paying cash like always, but I got to thinking about what if I used a credit card of some sort every time and paid the card off before the bill was due to rack up the points or rewards or xxx% back.

Do any of you guys do that? Or have a card that you would recommend that has a pretty good points system, x% back program that you take advantage of?

Do any of you guys do that?  Or have a card that you would recommend that has a pretty good points system, x% back program that you take advantage of?

Aaron McGinnis · Answer

I run as much as I humanly can through a Chase Visa business card, then transfer the points over to my personal Chase Visa Sapphire Reserve card.... which in turn transfers out to Star Alliance, Southwest, Hilton Honors, Hyatt, and a whole slew of other travel partners.

Result? My wife and I travel to Europe and Japan like most people go to the beach... and usually in business class. Last year we had excess points and blew 25,000 or so on a night in the Tokyo Grand Hyatt, which was a hoot.

Downside: Chase points don't transfer over to OneWorld partners, which means that even though I'm in Atlanta I don't typically fly Delta... so for example, when flying to Europe I usually go Lufthansa which requires a transfer through Frankfurt, and when flying to Japan I tend to go through a United Hub like SFO, IAH, or something like that. It's a bit less convenient than Delta's direct connect.....
But at the same time, Star Alliance is generally cheaper/fewer points for international business class than Delta is, so worst case scenario I find a lounge and knock back Manhattan's like it's my personal job to diminish the world's bourbon stock. Also, Lufthansa and ANA put on a great show.

Before committing to a card, I would recommend spending some time researching. A good resource is The Points Guy. Playing the reward point game is a lot of fun and, dare I say it, can be life changing for people who do a lot of spending, but getting set up does require some careful thought.

William Allen · Answer

We do this for my company and personal.  We use the capital one venture card for my personal purchases and personal rentals with 2% cash back and I use the Capital One Sparks Business card for my company account that kicks back cash back as well (I believe that rate is 1.5% but it could be 2%).  We spend about $100k on the personal card each year and $500k or so on the business card.  It's a great bonus instead of using the cash, just make sure you are responsible with it and not over extending yourself because you can.

J Scott · Answer

I've gotten several million frequently flier miles this way over the past 10 years.

These days, we use the Southwest Visa -- we get points (which can be used towards free travel) and with $110,000 in spend per year, we get a companion pass so my wife (or whomever) can fly free with me.

Joshua Ferreira · Answer

Awesome to see others have thought of this as well. This idea came to me recently and i acquired a Platinum Delta Skymiles card in order to gain maximum miles.

Dylan Vargas · Answer

@JR

@JR Connor   Welcome! I use my Citi Costco but will be getting Chase for Travel. My first couple flips I wish I had been using one of these cards. Last one I did and its adding up real fast.  Points guy is good to check out. Chase sounds like the way to go.

Derrick W. · Answer

I fish all over the u.s. Using cc points. Headed to california next month, florida in November and Alaska next summer....

Doug W. · Answer

I like to use the Capital One Spark card. It's 2% back plus they often have a sign up bonus where you can get an extra $500 if you spend $4500 in the first 3 months. At this time in my life the cash back cards are worth more to my family than the airline or hotel points.

The Chase Ink Preferred is also great if you can spend within their rewards categories.

Linda Weygant · Answer

Credit Cards are a great financial vehicle, if used properly.

The way you are proposing is excellent - getting points or miles or even cashback (like Discover) - goes a long way when you're buying like a flipper (think I'm gonna trademark that - Buying Like A Flipper (TM)).  So long as you pay the balance off each month, I see nothing wrong with this.

I've also utilized my credit cards the "other" way.  I've pulled a cash advance off of several cards that had a 0% interest rate for anywhere from 12 to 18 months with anywhere between a 3% and 5% cash advance fee.  You aren't going to find a cheaper HML anywhere else on the planet.  Yeah, it trashes your credit score when you max them all out at once like I did, but once it's all paid back, the credit score bounces back too.  That's the only downside I've found so far.

The issue with utilizing credit cards is, as always, discipline.  You've got to pay the charged amount in full each month or you have to pay the cash advance in the time limit allowed.  Otherwise, the interest rate is a real killer.

Nick C. · Answer

Ditto above, we use a credit card whenever possible. Materials and utilities mostly.

Use a credit card for all flip materials to build up points?

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