All Forum Posts by: Jesse Ritter

Thank you everyone for your responses. They have been very insightful.

Through applying for some credit cards with my business partner we have learned that we can't possibly get enough credit through traditional credit cards or charge cards to fund a flip.

I have, through this post, met someone named Adam Horowitz that offers a Line Of Credit product that allows you to use a line of credit for 18 months and it costs you 8% of the line you establish. For example, if I get approved for a $200K line, I will pay $16K and be able to use that LOC for 18 months interest free.

I am in the application process now and will update this thread once I have experience using the LOC. I am very excited to begin using this source of funding because if I'm able to use the line for 2 or 3 flips I will bring my effective rate potentially down below 3 percent.

One other source of funding I have recently discovered is the ability to use your 401K to loan yourself up to 50% or $50,000, whichever is less. You then pay your 401K a percentage and can use that money to invest in other opportunities, provided, you make the loan payments on time to your 401K.

-Jesse

Hello Everyone,

Thank you for all of your responses.

My business partner and I both have personal incomes above $100K and the first credit card we applied for we got a $2K limit.

I learned from American Express the other day that they have "Charge Cards" that have almost no limit but must be paid back in 60 days. 

Either way, using credit/charge cards under our LLC at this time does not seem feasible. That's fine. I'm just trying to explore all of my possible financing options.

As of now, I'm trying to get a few family members involved as private lenders (slow to develop) and have a few hard money lenders where I'm looking at minimum 2 points and 10-12% APR and only funding 70-80% of the deal.

Our plan is to use some of these modes of financing and then build up cash from our flips so we can fund ourselves.

Thanks again for everyone's input!

-Jesse

Hello Everyone,

I recently formed a real estate LLC as a 50/50 partnership. We are looking to have credit cards as an option to:

1) Fund an entire Flip

2) Pay for materials for a Flip

Questions:

1) Should we apply for cards through our LLC or personally? I see lots of people talking about using 0% APR cards. We applied for an American Express Card through our LLC and get $2,000 of line of credit. Not much we can do with that.

2) What specific cards do you recommend and please designate whether the are personal credit cards or business credit cards (applied for as a business).

I appreciate everyone's help!

-Jesse