Need help transferring 100k in credit cards into cash for real estate investing?

Question

Hello, recently acquired 100k in business credit cards for my corporation from a number of banks.  Interested in feedback on how to turn 40k into liquid cash to purchase real estate..the credit card companies gave me 0% interest for 12 months but does not include cash advances.  I have a good paying job to make the payments and very experienced in buying and rehabbing real estate. My personal credit score is 800?  Any suggestions for transferring my credit cards into 40k and up into cash?

Andrew O. · Answer

Buying coins from the mint? You may be able to find someone who run it through their merchant account for a cut. There would probably be a 3% cc processing fee, plus whatever you would have to kick back to someone for the privilege. Don't know about the legalities, but you may be able to save a few points against private money rates.

Just throwing ideas around, hopefully someone more versed could enlighten the both of us. Are they cash back cards?

Nicole A. · Answer

I know this is an old thread, but if the 0% intro apr isn't for those checks, why not try calling the company and asking if they'd offer that to you instead of the 0% on purchases? If they ask why, keep your answer vague...I wouldn't say "so i can buy properties".

Chuck Catchings · Answer

Dan, Like these other guys mentioned you can do this through anyone that does CCs. Let me ask you something, what return are you looking to make on your real estate investments and do you have a time frame? $40K is not much to work with but you seem to have the good credit to do whatever you want. If you have a 800 credit score why would you look to do what your thinking here and not just open a line of credit??? Cash tends to vanish once it's in your pocket !!!

Rob K. · Answer

If you were to write a check using their "convenience checks", is there an upfront charge then? If not, write yourself a check. If there is a charge, call them and ask them to waive the fee. They might do it one time to get your business. It would be worth a phone call.

If you get a call center in India, tell them you need to talk to someone who's first language is English.

Doug French · Answer

Sounds like a bad idea. CC companies are brutal and real estate is full of unknowns. Too much risk IMHO.

Tim Delp · Answer

It would seem to me that there would be better ways to acquire real estate than using credit cards.  What is your plan at the end of 12 months when these cards start charging 12% and up?

Also the other issue is the minimum payments required.  Most cards charge 2 to 3% of the outstanding balance as a minimum payment. 2% of $100,000 is $2,000/month, not sure where you can buy anything for that amount of money that will cash flow that much.  I understand that the $2,000 will all goes towards principal for the first year but then you are going to have to try and roll all this debt to new cards, incurring balance transfer fee of 2 to 5%.

If you have sufficient income to afford a $2,000 payment why not just save money and look to borrow through another source.

Do you own your current home, is an equity loan available, what about a personal loan with payments amortized over longer period of time?

Oliver Trojahn · Answer

As a note:  I dont think you can directly pay yourself through paypal but you can simply make another account with a new email address and pay from one to the other.

Oliver Trojahn · Answer

I have done this numerous times for both down payment and reserve help when trying to use conventional financing.  The most easiest way to perform this is to pay yourself through Paypal.  You will pay 3% or so up front to complete this transaction.  But as you said it is 0 percent interest so the three percent up front seems like  a pretty good deal to me.

Ed Nunno · Answer

i was wondering the same thing, i have 25k in credit and was wondering how i can turn that into a down payment if necessary.

Jon Klaus · Answer

Welcome to BiggerPockets, Dan.  There is some overhead (and more risk) to managing a bunch of credit cards. With your credit, you should be able to get a line of credit at Chase or Wells Fargo.

Need help transferring 100k in credit cards into cash for real estate investing?

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