Credit Card stacking In LLC to Conventional loan?

Question

I'm looking to use a credit card stacking for my LLC to get up to 370k in financing at 0% for up to 18 months to buy a property and then develop it, the property would then be worth approximately 500k or 75% LTV. Once complete, I would do a quit claim deed to myself to be able to get a conventional 30 year loan. Does this seem possible?

Brendan Bunce · Answer

Theoretically possible but I would not recommend. 0% APR interest typically only applies to purchases made within 3 or 4 months of opening a card. So you have to be meticulously strategic about when you opened new cards in order to purchase land, get permits, buy materials, and pay for labor. And then what happens if you're counting on a new card to keep to project going but the creditor denies you or gives you a much lower limit? Or maybe you simply run out of cards to apply for? Another consideration is that you would need cash advances for a lot of your expenses which come with their own limitations.

Jacob Sherman · Answer

Hey Ammon ! If you are going to rent it out can do a no income no doc cashout refinance DSCR loan after its complete and pay off the credit lines

Andrew Postell · Answer

@Ammon Jensen I don't think this would be possible but I would strongly recommend to speak with your loan officer on how to structure this right away.

Caroline Gerardo · Answer

I know of NO credit card company that grants a LLC 0% for 18 months do you? Maybe you can get $10000 here and there for six months but all credit card companies require you guarantee as a person and use your personal FICO score and will report. Can you buy the land/get permits and plans even approved in a year?

Ammon Jensen · Answer

Chris, thank you for the reply. I have the sufficient credit, and I would have the dti. I currently own a home and am looking to upgrade and then rent out my current home. I could pay the mortgages even without renters. I just don’t have the capital to buy the property and materials for development.

I built my current house, and looking to build my next one. You’re absolutely right, I would not enjoy paying 25%.

Chris Seveney · Answer

@Ammon Jensen

Typically the credit card companies will also want you to personal guarantee the credit cards

Will you have the sufficient credit and dti with all that debt to qualify ?

Have you ever built a home before and confirm it can be done in 18 months? If not then the 25% interest will not be a fun penalty