Home Depot Credit Cards for Flipping?

[Garrett Maki]

Hello fellow BP members! I have recently been looking into purchasing a property to flip, using private money to fund the purchase of the property. I plan to buy something that is in need of a moderate rehab, doing things such as flooring, painting, interior trim, appliances, etc. I am a contractor, and would likely be doing some of the work myself, to help stay busy during the slow winter months here in Eastern Washington. 

I have some cash savings that I am able to invest into the rehab of this project, but have also been looking into using home depot credit cards or their "Project Loan" that they offer. My thoughts are that if I use the credit cards or project loan, I will be able to mix them with some of my current cash savings so that I can afford to do a larger rehab on the property that I purchase. I would be keeping some of my cash savings to ensure that if I cannot flip this house on schedule, I will be able to pay off a good portion of the credit and be able to turn it into a rental if necessary. 

My question is, has anyone had this similar experience with credit cards or project loans? And what have others experienced when they use a mix of their cash savings and credit cards to fund a rehab project on a flip? 

I appreciate all the feedback, and best of luck to you all in your investing!

Thanks!!

-Garrett

[Will Barnard]

My pleasure, happy to help. Using this type of partial financing is very beneficial for any rehabber or developer as you only get charged interest once you purchase the items. So for example, if you borrow $100k for rehab from a hard money or private money source, you start paying interest from day one on the entire $100k. But lets say you only borrow $75k from that source and get a $25k credit line at HD, you can save interest expenses on each and every job.