Starting the process on my first fix n flip

[Charlie Zelaya]

Hello, this is my first rodeo on investing in a run down house, my Amex gold business card approved me to spend 120k and I got approved for a line of credit for 50k. This will be used for repair cost and down payment

Any advices going forward? Am I on the right track?

[Tanner Lewis]

I HIGHLY SUGGEST NOT USING CREDIT CARDS FOR FLIPS. If you want to leverage for the purchase and reno of a deal, I suggest using either hard money or private money, especially if you want to refinance a deal and hold onto it as a BRRRR.

When people put reno on credit cards or credit lines, it increases their credit utilization rate, which decreases their credit score. It sounds great on the surface: use a 0% APR intro offer on a credit card and then pay it off when you sell/refinance the property. Unfortunately, I see a lot of borrowers come looking for a refinance with an 800 credit score before reno, and then after reno, it looks like a 580, forcing them to sell a deal for an ok margin when they would have been much better off with a BRRRR as intended. Using hard money and private money will not affect your credit score nearly as much.