I want to buy a house and I am short about $50k. I have a $50k credit card and I want to use it to help me buy the house. It is a flip so i should be in and out fast.
Me and my partners make $15k a month so in a few months we can pay this off even if the house doesnt sell.
All i want to know is, how do i use a credit card to pay for the $50k.
1) Does the closing company take credit card to buy houses? Can i give them a credit card or do I have to get a cash advance. What is the best way to buy a house with a credit card... the house is like $250, we have $200 just $50k short and we have to close in 30 days ... what is the best way to do this... i dont think the escrow would take credit card.. has anyone done this before?
I believe you will need a cash advance.
Yup cash advance but you may have to check your terms cause some cards only allows a certain portion of the available credit to be used for cash advances.
Can you obtain a cash advance on your credit card? You will have a higher interest rate (2% more I believe), but you would have the cash.
Some other options to raise the 50k are private lenders, hard money lenders, or friends/family.
@Sarah Jones , you don't say where you are getting the $200k. If you have this, and just need the $50k, a hard money loan might help you out. If you are getting a loan for the $200k as well, that probably won't work out.
BiggerPockets has a Hard Money Lending Directory.
As for the credit card, you'd have to get the cash advance. Credit card companies charge a percentage of the transaction to the company taking the card, and those fees on $50,000 would be enormous.
Do Not get a cash advance! These folks are wrong!
A cash advance will accrue an interest rate in the 20% range.
Some credit cards (2 of my visa's) allow what they call a balance transfer. Different companies use different terminology as this is a fairly unknown product. They deposit the money right into your bank account.
I current have $35,000 borrowed from 2 credit cards. These cards had an promotion that the first 14 months were 0% interest. After that it jumps to 12% and 14%.
There is a company out there that teaches people how to find the cards that do this and they charge a $3000 fee. I asked enough question from them to figure it out. It is easy, easy, easy...
Pm me or call me and I can explain it.
If you can't do hard money, you could go to Simon mall every day for ten days and buy $5k in gift cards. Take your visa gift cards to Walmart or Kroger and use the debit feature to purchase money orders. Deposit money orders into your bank account. You now have $50k. I don't suggest doing this because it's a hassle but you could try.
Cash advance is going to be EXPENSIVE.