Investor · Philadelphia, PA · Member since 2014 · 351 posts · 80 votes
Has anyone ever paid for a property with a credit card? Would a credit card even be an acceptable method of payment at closing?
I'd really like to hear some stories (If you have one), when you (or someone you know) has ever purchased Real Estate with a credit card. It could be an $8,000 sheriff sale shell, or down payment on a larger scale property
Just did a deal with a credit card. As it was a quick close and financing took longer than expected. Once my LOC was approved with my credit union I paid off my credit card within 3 weeks. Not sure if this was a good process as I am a newbie but it worked for me and allowed me to get a Great deal, I would have missed out on.
@Chad Maxwell You could use PayPal as a method to pass money from the Credit Card to Cash without the Cash Advance fee but there are some things you have to consider:
1. The Credit Card will charge 3% Balance Transfer fee.
2. PayPal will charge 3% fee to receive money.
3. PayPal will have a mandatory holding period of the funds before they are available if over a certain amount.
4. PayPal will only let you "cash out" a certain amount of money within a month's time.
If you do your due diligence and the numbers work this could be an option.
@Mindy Zimmerman in a previous post, a BPer posted about the Barlclaycard, with minimal C.A. fees and only 8.25% interest (I looked it up myself to verify). This card doesn't do reward points though.
@Ken T. Yes, it is doable. Even though I take the full amount of my BOFA and Discovery cards, they still send me new 0% conveniece checks for me to use. I have proven to be a valuable customer/cardholder. I have even received letters from them stating, "We see you are serious about your finances and we would lot to offer you xxxxx."
hey all, just wanted to put my two cents in. I bought my first deal this way, I used 2 line of credit/credit cards for my deal the first was 8k for a downpayment with a hard money lender and rhe second was for repairs. I used convenience checks to avoid crazy rates and did a cash out refi as soon as possible to pay rhe cards off and would never been able to get my foot in the door if this option didn't work. Usaa, navy federal credit union, bbva compas, and amex all have some good cards that allow the whole limit to be used with a cashiers check minus transfer fees and have some decent rates after the 0% rate expires. Word of caution nake sure you can get a traditional loan BEFORE the purchase and make sure you do your due diligence to know what repairs will give you the best forced appreciation and higher property level. If you work it right you could start off with a credit card and eventualy have a very large heloc to use in its place with much better interest rates. Good luck and make sure your deal works with this strategy.
@Jerome Depner Thank you for taking time to share your story. In particular, the tip about investigating anything else that might hold back a traditional loan when the time comes is great advice!
@Peter C. That came from experience with the traditonal financing. I was incredibly lucky my first deal and was expecting to be just handed a loan, which is not how it works anymore. I barely made my deadline with my hardmoney lender but we were successful and managed to gain 40k in equity in the property we never planned for.
@Jerome Depner. Thanks for the input. I see this method is very much divided in this thread. Good to hear actual experience doing so, proving that this method CAN work.