Hi @Stephanie Crespo , what do you plan on doing with the property you purchase, is it going to be used as a rental?
Also when you say you are trying to figure out how to get the funds, are you looking to purchase the property with straight cash or are you referring to the down payment?
So, you're thinking you'll set up an LLC, take out a bunch of cards in the LLCs name, then buy a property completely using cash advances with the credit cards? Well, one, I'm not sure you'll get large enough limits to allow you to buy anything but a gut rehab in a horrible area. Two, no, its quite possibly the most expensive legal credit source besides payday lenders. It is however a great way to go bankrupt if any little thing goes wrong and you don't have a proper cash buffer ...
@Stephanie Crespo I agree with @Gregory Hiban , steer clear of this path. You'd have better luck getting enough credit limits in your personal name (assuming you have good credit and income) to do this but its not advised. Exhaust any and all options before going to credit card advances including but not limited to:
1. Residential mortgage
2. Commerical bank loan
3. Private money/SDIRA loan
4. 401k/IRA loan from personal funds
5. Hard money
6. Rob a bank and pay them back when you refinance
Then i'd probably put credit card advances as #7 in the list. For a seasoned investor with proven systems its less of a risk, but for someone going to their 2nd deal it doesn't sound advisable. Partner with someone who has the capital if you can find someone interested.
No. You would never take a cash advance on a credit card. Why would you pay almost 30% for OPM? The strategy behind this involves the ability to use business credit cards with 0% interest as the down payment alongside private hard money to create 100% financing. Then depending on your exit strategy, you sell for a profit or refinance into a long term mortgage. Then rinse and repeat.