Business credit card
I'm thinking of getting a business credit card to pay for the rehab side of my investments. That way I can earn points/cash back and some of them have 0% interest for the first 15-24 months. Which credit cards are best?
@Kiley Boss, I recommend going a slightly different route.
I recommend getting a card from Lowe's and/or Home Depot. For example using the Lowe's card at Lowe's gets you 5% off at the register.
That's just the first step though. After you have their store card, when you can put together a significant order of materials go to the pro-desk. Home Depot is stricter about what is a larger enough order to work with on this.
However, if you go to the pro desk with an order over maybe $1500, they will quote you prices for the materials. Those price quotes will usually be 10-20% off the retail prices! They require you to pay with their store card. So, you need that first. Those 10-20% savings on large orders should far outpace the points/cash back on a traditional credit card.
Quote from @Kevin Sobilo:Great recommendation by Kevin. I personally like the Chase Ink series of cards as I use Chase for my personal cards as well.
@Kiley Boss, I recommend going a slightly different route.
I recommend getting a card from Lowe's and/or Home Depot. For example using the Lowe's card at Lowe's gets you 5% off at the register.
That's just the first step though. After you have their store card, when you can put together a significant order of materials go to the pro-desk. Home Depot is stricter about what is a larger enough order to work with on this.
However, if you go to the pro desk with an order over maybe $1500, they will quote you prices for the materials. Those price quotes will usually be 10-20% off the retail prices! They require you to pay with their store card. So, you need that first. Those 10-20% savings on large orders should far outpace the points/cash back on a traditional credit card.
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@Kiley Boss definitely worth not missing out on opportunities. However how much are you spending is this even going to be noticeable to your bottom line, or would you be better focusing energy on other items? If you are getting 2% cash back and spend 50k you get 1k back. Like @Kevin Sobilo mentioned there might be much better ways to actually save money then a cash back card.
Best of luck and keep crushing it!
What I would do is get Chase Ink Cards. You can get 1 sign up bonus a month and open 2 for each LLC. This is a 90,000 point sign up, worth $900 if you spend 6k in 90 days, plus the 9,000 points you get at 1.5 points per dollar. Lets say you do that 4 times a year, it is about 400k points. Now the trick with chase cards is to open a sapphire card(either work) and use them to transfer to Hyatt, or an international airline. When you do this, you can get 2.5-5 cents per point of value. At 3 cents per point, spending 24k a year, getting 4 sign up bonuses, you get 400k points per year, which is worth $12,000 in travel. That is a pretty good pick up.
Also bonus points, if you have a spouse that is not sure about RE/ rehabs, your spending paying for vacations always helps.
They also are 0% for 12 months right now, with the min payment being 1% of the balance.
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Make sure your plan is rock solid, unlike hard money, you can't pay a point to extend the loan. You are going to hurt if you can't pay that credit card loan off.