Trying to build up money for investing using credit cards - Posted by Todd (AL)

Posted by RR Smith (not an expert) on January 26, 2000 at 08:45:54:

Sit down with a bank service depart. and talk about estabishing a signature (unsecured) LOCedit. Usually there are three levels with dropping interest rates, depending on how many loans you have paid back. It is not “instant” success but a process of establishing a history of larger and larger signature loans which are payed off.

Trying to build up money for investing using credit cards - Posted by Todd (AL)

Posted by Todd (AL) on January 25, 2000 at 02:18:49:

I have a question relating to credit cards as a means for start up money for investing. I have other credit cards that have balances I am trying to consolidate under one note to a hard money lender. One credit card has 0 interest for 6 months. I was wondering is there I way I can get the hard money lender to give me an unsecured note to consolidate my credit card debt and use the 0 interest card to build startup capital for real estate purposes? I don’t know if the hard money lender will be willing to give me the note or not? I have paid off two other notes from the same lender? Any suggestions would be appreciated…

P.S. If colateral is needed can I negotiate how long the colateral is attached to the note?

Todd (AL)

Re: Trying to build up money for investing using credit cards - Posted by Tim

Posted by Tim on February 06, 2000 at 14:05:33:

I’d advise you to be extremely cautious about getting cash advances from credit cards for anything. I believe the value of credit cards when it relates to real estate inventing is to have them to ensure you will be able to make unexpected costly repairs to rental properties. Usually, when acquiring a property, you’re only talking about a few thousand dollars of cash required. I’d suggest, as an alternative to cash advances, that you work some overtime at your job for a few months, or get a second part-time job temporarily. I hate to see anybody create too much stress in their life. I’m positive that scores of people will tell you that credit card debt can create lots and lots of stress. Good luck my friend!

Re: Trying to build up money for investing using credit cards - Posted by MDF

Posted by MDF on January 26, 2000 at 21:33:35:

Easy does it on the credit cards! Please listen to Ron LeGrand…“If you can’t make money without money, then you can’t make money with money.” As usual Ron is right …again. Please train yourself to invest this way. It will force you to keep away from the credit cards. Credit cards provide enormous temptation because its instant cash, no waiting, without having to get anyones approval. Who could resist? They should only be used by very experienced investors who’ve been around the block a few times. Heres a quick real life lesson. I had a bunch of inner city apartment buildings. These properties had some mechanical problems that weren’t easily visible, not to mention some bad tenant problems. In my efforts to turn these properties around it cost me everything I had, so I then turned to credit cards so that I could keep the turn-around on track. The introductory teaser rates eventually exploded and it clamped down on me like a great white shark who hadn’t eaten in quite sometime. Really…I kid you not! Before I knew it the payments were so out of control I just couldn’t keep up with it. I filed chapter 7 for $156,000 ($90k were the actual cash advances and the balance was the accrued interest that builtup from the time I stopped paying on the cards until the time that I filed) Through bankruptcy I walked away from every penny of it except for AT&T Universal. They hired a criminal attorney to litigate me. My lawyer is a very well known politician in town, long story short…we got into a two year battle. Two weeks before my trial date AT&T made a settlement offer. I owed $13,000 and they offered to settle for $5400 no money down with payments over 3 years or $4400 with $2500 down and monthly payments for 2 years. I countered with $3500 cash as payment in full and they quickly accepted. As I read this it’s pretty funny. AT&T must have purchased Ron’s multiple offer stratedgy course! Anyhow, prior to bankruptcy my credit was flawless. Since then its been a long and difficult road back, but I’m on my way. Once you loose your credit cards go try to rent a car or make a plane reservation or order something over the internet. We all take that stuff for granted until you no longer have the ability to do it. I wouldn’t trade my real estate investing experience for the world because my real life education, difficult and costly as its been…has proven to be invaluable. I certainly don’t recommend that you get your experience the way I did. Again, listen to Ron. Go figure out a way to do it without money(incidentally credit card money is not yours…its the banks and don’t forget this) and if you can’t make it happen without money you should stay away until you can make it happen that way. I know this is not the easy way and yes, you will be a better real estate investor because of it. Remember…credit cards are the devils poison when it comes to investing. Even the most careful and responsible people like me can get tripped up before we know it. The wisest word of wisdom that I can offer is to be careful and keep away from the credit cards. Good luck

Re: Trying to build up money for investing using credit cards - Posted by Todd (AL)

Posted by Todd (AL) on January 25, 2000 at 22:53:50:

This in a local credit union where I have paid off a small signiture note and I thought that I could ask for the maximum allowable, unsecured, if I told the loan officer I was going to consolidate credit card debt. The maximum allowed is 15,000 @ 13.00%. I just thought it might be something to try to get better established with the credit union and there real estate department and consolidate my credit card debt.

I am in the recovery stages after being laid off from work for 10 months.

I will talk to them about establishing a line of credit and keep looking at property.

Many thanks to Bob, Steve-ATL, Steve.

Re: Trying to build up money for investing using credit cards - Posted by bobthornton

Posted by bobthornton on January 25, 2000 at 18:28:58:

Check with banks,saving & loans for LINES OF CREDIT. They usely come in 10,000.00 dollors and can be created very easy - to set up ;if they know what you are doing and again cost less than a credit card … they supply you with blank checks and you write the anount in as you need it but be carefull you got to pay it back …works well for up to 30 to 90 days… bob

Re: Trying to build up money for investing using credit cards - Posted by Steve-Atl

Posted by Steve-Atl on January 25, 2000 at 15:20:36:

I don’t know of any hard money lenders that make unsecured loans. There may be some out there, but look at it from their perspective. If you don’t repay, what recourse do they have?

Rather than using hard money to consolidate credit cards, instead find a good deal that you can buy at 50%-60% of after repair value. Use hard money to do the deal (that should be easy) and then use your profits when you sell to pay off credit cards.

Similar question for experts - Posted by Steve

Posted by Steve on January 25, 2000 at 12:25:37:

Are their any hard money lenders or individuals who are willing to give an unsecured short term note with a high interest rate (+20%) on it?