Financing Rehab with a Balance Transfer (Credit Card) DFW
So, there are obviously a swarm of different lending companies out there, all of which seem to have varying points, terms, and interest rates. As I have been exploring private lending, hard money, and conventional loans there are advantages and disadvantages to each, but it wasn't until I was opening my mail today that I had a different idea. While I'm sure this isn't a new idea, a balance transfer deal on a credit card I don't currently use often had a low "transfer fee."
I'm thinking the single transfer fee and full access to the funds without an escrow make less work for me.
Has anyone run into any issues with using a balance transfer for helping to finance a rehab?
Basically the terms are 2% transfer fee (equivalent to points I suppose) and 0% APR for 18 months and I just make minimum payments. This sounds like a world better than paying 2-5 points plus interest using any of the other methods. The limit is only the credit limit I suppose and the elevated APR if its not paid off (but 18 months is substantially longer than hard money), but I'm curious if anyone has run into problems or if this is a good strategy for a low cost mini-loan.
