Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
I've recently been using some of those "0% Balance Transfer" cards to help fund my deals. They have a 0% introductory rate for 12 months or so, and you pay 3 points up front. That's incredible compared to hard-money. Anyway, I have one of my rehabs finished and it's under contract to sell and will be closing soon. I will use the proceeds to pay off the cards before the introductory period ends (which is soon). Here's my question. When the introductory period ends, and if I have no balance on the card, can I just cancel the card and then apply for the same card again to get a new introductory period? Has anyone done this?
I did this for years and it's a great way to fund acquisitions and rehabs.
If you cancel after the intro period, I'm pretty sure they won't let you reapply right away, but there's really no need to as there are so many offers out there. Keep the card open as you will almost certainly get another offer at some point.
The trick is to get enough of the cards open both in you and your spouse's name. Once there's a certain number you will always have a certain number of offers outstanding if you want to roll one over. It's really hard to predict when a card is going to give you offers, but I've noticed over the years that the quality and quantity of the offers diminishes as you leverage up more and more.
I always make it a point once a year to call my cc companies and ask for a credit line increase even if it's a just a few grand. Over the years it really boosts your access to credit and, ironically, your credit score as your revolving line % goes down.
The biggest thing to do is always make sure you never miss a payment. I use autopay but even then I had Citi screw me once. I had set it up for autopay, but they did not have it kick in. Their fault and they admitted it. They let me keep the rate but cut my line. It was really scummy. The lesson I learned is keeping making those payments until you see an autopay actually hit. Yes, you might make two payments in one month, but it's better than missing a payment, even if its their fault.
I played the 0% game for years back when no fee offers came all the time.
At one time I had well over $100K of the banks money earning me 5% or so.
I wasn't into RE at the time, so I'd just move the money into high yield accounts and earn the free interest.
I have several Chase cards that send balance transfer offers every month. Generally they are 0% for 12 months with the fee capped at 3 or 4%.
Have an RBS card that sends me offers capped at $99. I've used that one for large expenditures I want to spread out over time. I charge the purchase to a Chase card for the points, then balance transfer to RBS for $99 fee, that way I get the points and the 0%.
There's no need to cancel a card since you'll get the offers over and over again. I get them like clockwork on the RBS card, a couple of the Chase cards and a Citi card.
I still play the CC games, charge everything I can to earn points, then pay the card in full every month. CC points, If you know how to use them, are quite valuable for flights and some hotels. With the right cards, you can earn points at 3 to 5 points per dollar spent. I routinely pick up certain RT flights for 9K points, and those points can sometimes be earned with less than $2K in total spend.
Play it right and the banks pay you to use their cards - I've done it for years.
This isn't arbitrage, but I used to have this "high-yield" checking account back before everything crashed (and back when I had a little money). In order to get the high yield, you had to make at least 10 debit card transactions per month. So I would go to Wal-Mart, grab 10 bags of peanuts (about 50cents each) and go through the self-check-out line with 1 bag of peanuts per transaction. It took a few minutes, but it was pretty easy money.
@Chris K.
Which banks / companies presently have these offers?
thanks
I have CitiBank cards. They send me the 0% checks in the mail at least once a month. I just jump the balance back and forth between the 2 and use the 3rd card for my everyday purchases. Only thing is they do have a fee of 3% up to a max of $75.
the only reason why I'm asking to PM me is because its too much info to post on the thread. I'm not soliciting any services or anything, just sharing some tricks i've learned with credit cards that i don't think I've seen anyone comment on yet! Anyone heard of American Express Bluebird? Thats basically the key!
I'm a more experienced churner then investor ( here learning)
Using the method your mentioning has the potential to raise flags with the CC companies for misuse of the program
Chase has been known to shut down accounts and Amex calls you for a "audit"
The method is valid but carries some risk if abused
@michael swantek: you're absolutely correct. I churn to meet bonuses and to raise emergency capital. I've never had a problem with any of these methods because there is obviously a line u shouldn't cross. The cases where I've seen ppl get shut down has been when major abuse has taken place. Just make sure to fly low and you'll be fine!
I have always thought about this method and after reading this, I am more inclinded to try. I think this is an ideal and safer way to save up money for a downpayment. The only risk/issue I am worried about is not being able to make the minimal payments so I think I will only try to do max 5k at a time. I'm a beginner so I'm trying to be safe. It might take a while to save up a large lump sum but until I learn more tips and tricks, I think this is a good start.
I have a citi card and they send me checks or have balance transfers offers quite often.
Some people mentioned that they got reward points off of this, how did it work? I have asked if I get reward points on transfers and they have said no. Is there a way to get around this? I would love free points
Would like to get an idea of what cards I should be using, who I should be calling to get them, and a rough estimate as to how much capital I will have access to. Any help would be great!