All Forum Posts by: Bukka Levy

@Chad Trail Well there you go. That exactly what these types of business cards are for and why the banks issue them. So I'd say you're right on target.

@Caleb Heimsoth There’s one of two problems with a private lender. Either a) They are a “partner” to some extent or b) They will still want 20-30% down.

To me, option B is a waste of time and money because I’ll still have to refinance to get my money out to do another deal.

Option A would be fine if you can find someone to just put up money, collect their payments, and let you continue rolling it into future deals. I’ve been looking for this person for two years but I haven’t found anyone that isn’t looking for  the quick massive returns others are getting here in California.

I’ll continue to look for private money in that form, but I won’t wait any longer. I need other options to work for me meanwhile and this is what I came up with. Not my first choice, but currently my only option.

BTW, good on you. I was set to retire in my 30s doing what you’re doing but made a dumb mistake that cost me everything (don’t ask. Too long and personal/specific to me). 

Starting over has been much harder but I have enough experience that I can do it again faster once I get off the ground.

@Caleb Heimsoth thanks, lots to think about here.

For me, this is not my first deal. I’ve bought & held several properties, fixed and flipped as well. However, I no longer have the capital and am looking for other options.

I’d also like to continue to do it on my own (without partners) so this seems like a good option.

I also am not keen on rehabbing for my first few that I’m looking to do out of state. Thinking I want to buy wholesale or below value enough that some minor cosmetic upgrades and time might afford a refinance.

Even still I understand the risks with this method. Lots to consider.

@Chad Trail I would recommend using a service. Because of their experience and contacts they can get a much higher success rate, much faster.

They’re all a bit pricey, though, so you’ll want to factor that in. I don’t know enough about the individual firms to recommend one in particular just yet.

You could each get cards as individual llc’s via individual EIN’s.

I haven’t cashed a card out yet but there are various methods. Buying and selling assets being one that takes a few days I believe. I’m looking into Plastiq which can issue a check or bank transfer and costs 2.5%.

@Frankie Woods That’s pretty much the idea. The real trick to the whole thing is knowing your ability to refinance your money back out and executing before you lose your 0%.

Jill, there’s a bunch of business cards that do this 0% deal. Chase, Capital One, Amex, US Bank are some for starters.

@Daren H. Thanks. That’s the scenario I was trying to describe. So ya, know your after rehab value. Thanks for confirming!

Thanks for the rant, Chris ;) I get your perspective as well. It's certainly not for everyone, but the general idea is one I'm quite familiar with. It's no different than any other deal using other people's money (private money, hard money, etc) which I would imagine falls under this category you do not endorse.

I've bought many things with credit (cards or loans, all the same to me) and flipped them for double or triple what they cost me. All without using a penny of my own cash. It's just a technique. One you have to be very comfortable doing. Otherwise, I agree, one should not even consider a method such as this.

I've not come across or qualified for most of the "legit" ways others have been blessed to find for their investments. Thus, the need to look elsewhere.

Still, there is this factor I'm questioning which may be the discomfort that keeps me from going this route.

Lisa, I do know this... They are business credit cards which report to different agencies than your personal credit, so it wouldn't affect your personal status at all. It may even improve it since you wouldn't have to put your business transactions on your personal cards anymore. Also, business cards are evaluated differently and high balances aren't treated as severely, if at all.

My main concern is how to structure a deal so these get paid back in a timely manor.