How i use my CC in 2023 to maximize my ROI
Most Popular Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votesQuote from @Ben Aaron:
Quote from @V.G Jason:
You bought stuff on a 0% APR, prayed they did not have issues before the apr financing ran out, got lucky they didn't and were able to come out safely?
If so, congrats on being lucky. No credit for trying to come off as shrewd or smart. Any luck that went against you, you probably would never recover.
use credit cards only for covering all contraction costs, materials, and other project expenses you can pay with CC( utilities, Insurance etc). Those expenses I will have no matter what but with having the 0% APR CC i was able not to commit my money to one project and manage it.
So when sold/refinanced I paid the cards, I had 2 rentals and one flip on going 2023.
this is not a new concept its been talked about on BP ad nauseam over the years. Works fine for those that are diligent and diciplined in their credit and the jobs go as planned .. For those that lose control of the CC debt great way to bury yourself :) also I have to imagine it affects your fico if your putting a ton on of money on your CC .. ??? So when you go to refi you may have to pay higher rates as your fico is not as good ? maybe ??
12 Replies
- 2yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votes
You bought stuff on a 0% APR, prayed they did not have issues before the apr financing ran out, got lucky they didn't and were able to come out safely?
If so, congrats on being lucky. No credit for trying to come off as shrewd or smart. Any luck that went against you, you probably would never recover.
- Investor · San Francisco · Member since 2024 · 58 posts · 12 votes2y
I use credit cards only for covering all contraction costs, materials, and other project expenses you can pay with CC( utilities, Insurance etc). Those expenses I will have no matter what but with having the 0% APR CC i was able not to commit my money to one project and manage it.
So when sold/refinanced I paid the cards, I had 2 rentals and one flip on going 2023. - Investor · San Francisco · Member since 2024 · 58 posts · 12 votes2y
Quote from @V.G Jason:
You bought stuff on a 0% APR, prayed they did not have issues before the apr financing ran out, got lucky they didn't and were able to come out safely?
If so, congrats on being lucky. No credit for trying to come off as shrewd or smart. Any luck that went against you, you probably would never recover.
use credit cards only for covering all contraction costs, materials, and other project expenses you can pay with CC( utilities, Insurance etc). Those expenses I will have no matter what but with having the 0% APR CC i was able not to commit my money to one project and manage it.
So when sold/refinanced I paid the cards, I had 2 rentals and one flip on going 2023. - 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Ben Aaron:
Quote from @V.G Jason:
You bought stuff on a 0% APR, prayed they did not have issues before the apr financing ran out, got lucky they didn't and were able to come out safely?
If so, congrats on being lucky. No credit for trying to come off as shrewd or smart. Any luck that went against you, you probably would never recover.
use credit cards only for covering all contraction costs, materials, and other project expenses you can pay with CC( utilities, Insurance etc). Those expenses I will have no matter what but with having the 0% APR CC i was able not to commit my money to one project and manage it.
So when sold/refinanced I paid the cards, I had 2 rentals and one flip on going 2023.
this is not a new concept its been talked about on BP ad nauseam over the years. Works fine for those that are diligent and diciplined in their credit and the jobs go as planned .. For those that lose control of the CC debt great way to bury yourself :) also I have to imagine it affects your fico if your putting a ton on of money on your CC .. ??? So when you go to refi you may have to pay higher rates as your fico is not as good ? maybe ?? - Investor · San Francisco · Member since 2024 · 58 posts · 12 votes2y
Quote from @V.G Jason:
Could you cover those costs out of pocket if something slipped off the timeline or you had an extra expense unexpected?
You can always do a balance transfer if you are stuck, but you need to look at it as an option to have more capital for investments and not for buying cars or watches...
- Investor · San Francisco · Member since 2024 · 58 posts · 12 votes2yIt will not affect your FICO score because the credit cards are on your business and not on your personal. you can maximize the cards but your personal utilization rate will not be have negative effects.
Quote from @Jay Hinrichs:
Quote from @Ben Aaron:
Quote from @V.G Jason:
You bought stuff on a 0% APR, prayed they did not have issues before the apr financing ran out, got lucky they didn't and were able to come out safely?
If so, congrats on being lucky. No credit for trying to come off as shrewd or smart. Any luck that went against you, you probably would never recover.
use credit cards only for covering all contraction costs, materials, and other project expenses you can pay with CC( utilities, Insurance etc). Those expenses I will have no matter what but with having the 0% APR CC i was able not to commit my money to one project and manage it.
So when sold/refinanced I paid the cards, I had 2 rentals and one flip on going 2023.
this is not a new concept its been talked about on BP ad nauseam over the years. Works fine for those that are diligent and diciplined in their credit and the jobs go as planned .. For those that lose control of the CC debt great way to bury yourself :) also I have to imagine it affects your fico if your putting a ton on of money on your CC .. ??? So when you go to refi you may have to pay higher rates as your fico is not as good ? maybe ?? - 2yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Quote from @Ben Aaron:
It will not affect your FICO score because the credit cards are on your business and not on your personal. you can maximize the cards but your personal utilization rate will not be have negative effects.Quote from @Jay Hinrichs:
Quote from @Ben Aaron:
Quote from @V.G Jason:
You bought stuff on a 0% APR, prayed they did not have issues before the apr financing ran out, got lucky they didn't and were able to come out safely?
If so, congrats on being lucky. No credit for trying to come off as shrewd or smart. Any luck that went against you, you probably would never recover.
use credit cards only for covering all contraction costs, materials, and other project expenses you can pay with CC( utilities, Insurance etc). Those expenses I will have no matter what but with having the 0% APR CC i was able not to commit my money to one project and manage it.
So when sold/refinanced I paid the cards, I had 2 rentals and one flip on going 2023.
this is not a new concept its been talked about on BP ad nauseam over the years. Works fine for those that are diligent and diciplined in their credit and the jobs go as planned .. For those that lose control of the CC debt great way to bury yourself :) also I have to imagine it affects your fico if your putting a ton on of money on your CC .. ??? So when you go to refi you may have to pay higher rates as your fico is not as good ? maybe ??
Gothca.. Like I said if you are very disciplined this works just fine.. those that are not find themselves in trouble.. - 2yV.G JasonPro MemberInvestor · Member since 2022 · 3k+ posts · 3k+ votes
Quote from @Ben Aaron:
It will not affect your FICO score because the credit cards are on your business and not on your personal. you can maximize the cards but your personal utilization rate will not be have negative effects.Quote from @Jay Hinrichs:
Quote from @Ben Aaron:
Quote from @V.G Jason:
You bought stuff on a 0% APR, prayed they did not have issues before the apr financing ran out, got lucky they didn't and were able to come out safely?
If so, congrats on being lucky. No credit for trying to come off as shrewd or smart. Any luck that went against you, you probably would never recover.
use credit cards only for covering all contraction costs, materials, and other project expenses you can pay with CC( utilities, Insurance etc). Those expenses I will have no matter what but with having the 0% APR CC i was able not to commit my money to one project and manage it.
So when sold/refinanced I paid the cards, I had 2 rentals and one flip on going 2023.
this is not a new concept its been talked about on BP ad nauseam over the years. Works fine for those that are diligent and diciplined in their credit and the jobs go as planned .. For those that lose control of the CC debt great way to bury yourself :) also I have to imagine it affects your fico if your putting a ton on of money on your CC .. ??? So when you go to refi you may have to pay higher rates as your fico is not as good ? maybe ??To get a business credit card--for a single member LLC, they'll still run it under your personal credit. You may not be liable, but your credit is impacted I believe. Utilization won't be impacted, but messing it up by not paying or getting screwed will.
But to Jay's point, this has been used and told for a million times on how to leverage on real estate. In the low rate era this was done and consequences were not severe. In this era, recourse is significantly more severe.
It works if everything goes as planned and you are disciplined, but usually someone in this situations isn't disciplined and is a poor money manager. So there's that.
- Investor · San Francisco · Member since 2024 · 58 posts · 12 votes2y
Quote from @V.G Jason:
Quote from @Ben Aaron:
It will not affect your FICO score because the credit cards are on your business and not on your personal. you can maximize the cards but your personal utilization rate will not be have negative effects.Quote from @Jay Hinrichs:
Quote from @Ben Aaron:
Quote from @V.G Jason:
You bought stuff on a 0% APR, prayed they did not have issues before the apr financing ran out, got lucky they didn't and were able to come out safely?
If so, congrats on being lucky. No credit for trying to come off as shrewd or smart. Any luck that went against you, you probably would never recover.
use credit cards only for covering all contraction costs, materials, and other project expenses you can pay with CC( utilities, Insurance etc). Those expenses I will have no matter what but with having the 0% APR CC i was able not to commit my money to one project and manage it.
So when sold/refinanced I paid the cards, I had 2 rentals and one flip on going 2023.
this is not a new concept its been talked about on BP ad nauseam over the years. Works fine for those that are diligent and diciplined in their credit and the jobs go as planned .. For those that lose control of the CC debt great way to bury yourself :) also I have to imagine it affects your fico if your putting a ton on of money on your CC .. ??? So when you go to refi you may have to pay higher rates as your fico is not as good ? maybe ??To get a business credit card--for a single member LLC, they'll still run it under your personal credit. You may not be liable, but your credit is impacted I believe. Utilization won't be impacted, but messing it up by not paying or getting screwed will.
But to Jay's point, this has been used and told for a million times on how to leverage on real estate. In the low rate era this was done and consequences were not severe. In this era, recourse is significantly more severe.
It works if everything goes as planned and you are disciplined, but usually someone in this situations isn't disciplined and is a poor money manager. So there's that.
Absolute! Leveraging real estate is not for everyone no matter if you are an investor or end buyer taking a mortgage for his own house. If you don't know how to handle debts don't take debts on you!
- Port Chester, NY · Member since 2016 · 210 posts · 157 votes2y
Quote from @Jay Hinrichs:
Quote from @Ben Aaron:
Quote from @V.G Jason:
You bought stuff on a 0% APR, prayed they did not have issues before the apr financing ran out, got lucky they didn't and were able to come out safely?
If so, congrats on being lucky. No credit for trying to come off as shrewd or smart. Any luck that went against you, you probably would never recover.
use credit cards only for covering all contraction costs, materials, and other project expenses you can pay with CC( utilities, Insurance etc). Those expenses I will have no matter what but with having the 0% APR CC i was able not to commit my money to one project and manage it.
So when sold/refinanced I paid the cards, I had 2 rentals and one flip on going 2023.
this is not a new concept its been talked about on BP ad nauseam over the years. Works fine for those that are diligent and diciplined in their credit and the jobs go as planned .. For those that lose control of the CC debt great way to bury yourself :) also I have to imagine it affects your fico if your putting a ton on of money on your CC .. ??? So when you go to refi you may have to pay higher rates as your fico is not as good ? maybe ??Very true. If you go this route, business credit cards or personal credit cards which do not report to the credit bureaus. For personal, the only one I know of is the JP Morgan Reserve Card. For business:
U.S. Bank Business Platinum Card
U.S. Bank Business Triple Cash Rewards World Elite Mastercard
PNC Visa® Business Credit Card
Wells Fargo Reflect® Card
Ink Business Unlimited® Credit Card
Ink Business Cash® Credit Card
The Blue Business® Plus Credit Card from American Express
Best to do them at the same time and day; just don't get a head of one's self and not have a backup strategy to pay them off. The additional rewards are nice too.
- Flipper/Rehabber · CA · Member since 2023 · 1k+ posts · 1k+ votes2y
Quote from @Ben Aaron:
Hey All!
I have been in the game for the past 4 years, started like most people here with not a lot of my own capital. I was always in the look for ways to increase my ROI so I could do more projects.
Fast forward to last year. Interest rates jumped up deals started looking hard to make them happen, every penny we took from our lenders became very expensive. As a result, I found some ways to get 0% capital on my cards like being able to get more ROI on my money because I haven't needed the capital to pay for any of the project expenses.
I will be happy to share with you my case studies. with the knowledge, I learned how to do it also for other investors.
Wishing you all Happy 2024 and many investments (:My wholesale material distributors, lumber, HVAC, Electrical etc provide net 90 billing. No credit pulls necessary, all based on credibility. Most businesses I know dont buy retail, the quality of materials and support is substantially better than retail box stores or on line marketers. The building industry has been around long before HD, Amazon etc.
Join the conversationCreate a free account to reply, vote on answers and follow this thread.