How to transfer money via Credit Card to Contractor?

12 Replies

Good morning/afternoon,

I have 2 duplexes that require significant rehab in Dayton Ohio and I am having a recommended contractor do the work.  The problem is that I dont think he is set up to accept credit card.  He has no problem with me paying via credit card if it just transfers the money into his bank account.  How can I do that?

Paypal was the only option I could think of but looking for advice because its easier to pay the rehab via credit cards that have 0% interest for 12-18 months and refinance after 6-12 months to pay off any remaining balances I didnt pay off yet.

I may be misunderstanding the question, but I assume you want to take a lump sum interest free cash advance on the credit card?  Why not just do that and pay the contractor with a check (paper or electronic)?

Promotion
Speed To Lead
Buy hot seller leads w/o subscription
Buy daily seller leads that are actually ready to sell
Finally there's a place where you can buy leads that asked for urgent help selling their house
Sign up for free

Someone has to get hit with the transaction fees when you use a credit card, and I doubt your contractor is willing to absorb that. You could, for example, use the app 'square cash' to transfer funds using your credit card, but it will hit you with a 3%, one time transaction fee. It also typically limits you to $2500 total transfer per week. Although, maybe the one time 3% is worth it if you are going to ride out a 0% offer after that. Depends on your situation.

@Chad Harter & @Andrew S.  thanks for the input...yes I am trying to use the credit cards because I have plenty of avail credit and 0% for 12-18 months...i can then turn around and refinance say 6-12 months later.  I can eat the 3% fee since it enables me to get all 4 units rental ready and get income flowing.  I will pay down balances monthly to make it easier to pay off before 0% interest expires (back up plan in case refinance doesnt work).

@Christina Carey thanks.  Just looking for options to pay the contractor with my credit cards.  I think Paypal is the best bet.

I have these offeres on my credit cards all the time. I just call them and they transfer the money into my Cheking account with 3% transaction fees for 0% intereste for 12 month. If you have the offer available call the credit card and most of them send it to your checking account.  

Let's us know how it goes 

Ya, limitation right now is trying to do this while overseas LOL.  Already running into problems trying to use Paypal.

There has to be another solution similar to Paypal but different.

@Bryan C. There are a couple, but you will have to pay the 3%, if you are willing to do it, the best way is to open them from the contractor's bank, however, this will entail him to subscribe to a cc payment processor, so you might need to negotiate half of that fee also. This way, your contractor will at least have to simply pickup the phone if there is any problem. Second option is to get something like your suggestions but they entail really tech savvy contractors, if they are, they can go for Square, Shopify, PayPal, etc. Third best is for him to use an e-commerce store like google or amazon and sell a package there. Last option is to hire (free of charge, like an agent or broker) someone who handles cc payment processors, there are millions out there, but they entail a larger % of cc's processed, somewhere around 4-5%. In the US, you know services can't pass on cc fees, so he will have to increase the agreed price without it reflecting in the invoice. Also, if I was the contractor, I have the risk of being charged back, you declaring unauthorized transaction and all that.

Promotion
PropStream
Web + D4D Mobile App for you & the team!
Trusted Provider of Real Estate Data, Marketing, Skip Tracing & A
#1 Real Estate Software for Investors, Agents & Brokers to find leads and close deals nationwide.
7 Day Free Trial!