Using Business Credit Cards to Buy Multi Family?

Question

Hey BP!!

It is a guy that I met who is using credit cards from his business to put for a downpayment for multi-family purchasing mixed in with seller financing and private partners. Doesn't affect his personal credit since it is all in his business.

He would take money from around let's say 30 business credit cards, he would maybe bring in a couple partners, and he would get some seller financing with it. He would then after maybe 2 years refi out credit card debt and partners. He would have successfully used none of his own money to buy a small multi-family home.

Has anyone ever done something like this before?

Tommy Quach · Answer

James, you could use Plastiq and they only charge 2.5% of the total amount charged and you could send the money just about anywhere.

James Wise · Answer

It's a risky strategy but I bought my 1st duplex on a discover card. Today I run a $50M portfolio. So it can work lol.

Luka Milicevic · Answer

@Jamiel Strickland how would you go about doing that? Take a cash advance on your CC? That's interest being charged as of day one.

I don't doubt that it's possible and Ive heard folks do it. I personally couldn't sleep well with 30 CC worth of debt. I would only ever use a CC for spending on stuff for a house but never a downpayment. I would also only spend money i actually have also.

Like James said-he did and it's possible. I personally wouldn't, but that's just me.

Bryan Richardson · Answer

I bought house number 1, and then our 2nd on credit cards. They where all 0% interest for something like 18 months. We only had to use 2 cards per house tho. Dont think I would use 30 cards.

Jamiel Strickland · Answer

@Michael Montagna - Thanks I will check it out

@James Wise - Haha well the risk was very good! Thanks for your insight.

Michael Montagna · Answer

Having had no experience in this matter, but rather the knowledge of building business credit to utilize for investing, I stumbled across Credit Suite. Their youtube channel is mostly run by their CEO Ty Crandall and they have hundreds of videos, particularly ones with real estate terms in them, that discuss the very matter you speak of.

Using Business Credit Cards to Buy Multi Family?

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