Using credit cards + other creative ways to finance investments
Hi all! Newbie here. I was chatting with my mom a few weeks ago about an area for potential growth where homes are currently under the $50k mark — a.k.a., an area that's ripe for a newcomer like me to invest.
I could definitely afford a 20% down payment on a few of these homes, so traditional financing is not an issue; but my mom (a banker herself), mentioned how I could purchase some of the lower-cost homes with a credit card. Apparently this is a thing?
I know that BP is all about creative ways to finance, but does anyone have direct experience with home purchases on a credit card? Or other creative ways to finance? What are the benefits of buying with a credit card/non-traditional method of financing vs. putting the 20% down? Anything you wish you had known prior?
All feedback is appreciated!
Most Popular Reply
Yes, I've used this before. The great thing about the credit cards (especially business credit cards), is that you can use the 0% interest cards that only require you to pay about 1-2 % of the balance until you pay it off. So not only would you be using bank money, but 0% bank money to fund your deals. It's pretty sweet if you know how to do it.