Credit Cards To Fund Real Estate??

Question

Hi everyone. I have been researching online about creative financing methods. If you have used credit cards to fund real estate, can you please share your personal experience? I understand lots of people talk about it on YouTube, Tik Tok, and Instagram - but it would be helpful to hear from anyone who has personally done it. Thank you for sharing!!

Kate Luna · Answer

@Randall LeBlanc I'm looking at doing a 4 unit with some LTR and some STR, not a BRRR. You make a good point. I need to make sure the numbers make sense and I am deeply concerned about my personal credit - which is why I've been spinning my wheels on figuring out how to move forward to finance my first investment deal.

Thanks for your advice!

Randall LeBlanc · Answer

@Kate Luna please please please think about the exit strategy before starting.

If you’re planning to BRRR, consider the hit to your personal credit. I’ve seen it happen too many time where all the rehab is financed on credit cards and it severely reduces loan programs.

Kate Luna · Answer

This is helpful! Thank you @Charles Carillo @David Ojo @Michael Carbonare @Charlotte Goodman

I will check out your post @Michael Carbonare

Charlotte Goodman · Answer

You can do almost anything...once. That said, I'm a newbie too. I've done this the hard way, saved the money. Uncomfortable. Wasn't easy.  Thin days.   By not using credit cards to finance you learn fiscal responsibility. Did I have a "comfortable " salary no. Did I have a used car, drove it forever, bought reasonable things to wear? Yes. Have roommates to pay bills? Yes.

This is where I learn fiscal responsibility. You can do it too.

Michael Carbonare · Answer

Hi, Kate.  I purchased my very first deal on a credit card.  No experience, no know-how, a few dollars cash on hand, I jumped into real estate without fear.  Ignorance is bliss, I suppose.I wrote about this previously:  https://www.biggerpockets.com/forums/12/topics/1154201-somet...

Charles Carillo · Answer

@Kate Luna

I have, BUT be aware this is a very high-risk financing strategy. I would not recommend this to anyone, especially a beginner (if you are).