Anyone here using hard money lenders or better yet their own credit cards to purchase a house? We have a credit card machine with another business we own and want to use the available credit on the cards to purchase a house. It seems so much cheaper than using hard money, and less risky than using HELOC. Just looking for opinions and any input appreciated.

People use to do this all of the time.

Some people would charge a car on there and then not make payments on the credit card and get a free car that way.

CC companies have caught onto this and there is usually a provision about car and house purchases using your credit card.It's usually in the real small print in the disclosure pamphlet.I would read those for each card and see what they say.

Some other people would get a cc then transfer the balance to a larger limit one and then keep doing that until they couldn't afford the payment then they would file bankruptcy after charging hundreds of thousands of dollars over the years.

I believe that American Express is the only card company that allows a person to charge their card for a down payment or mortgage payment. However, the interest is almost the same as a Cash Advance; I don't know the specifics beyond that...

Keep in mind that it is against the law to borrow money to borrow money.

I have done two purchases so far this year with a credit card. I bought 1 for $50K(the property was worth almost $90K in its current condition) and then refinanced it $70K and paid off the card and used the additional cash to complete the rehab and then sold it in 6 weeks for $142K. The second deal had similiar numbers.

Best part about it was I used the credit card companies money free for the first 25 days and then paid off the mortgage before a single payment was due!

If you have a card with a high enough limit(or two+ cards) especially if you have convience checks it can work but you should be careful and had better have your exit strategy already figured out befor you do it.

That would be especially true if that was what we were doing. However, we are not borrowing to borrow. The only transaction that will take place will be the credit card transfer. However I dont know if this would effect any future refinancing?

I know several people who have used their credit cards to cover a down payment and rehab. Infact, I just sold a duplex to a guy who used hard money for 95% of the purchase price and put the rest on his credit card. It's sorta like getting a second mortgage. Just make sure you refi to get a better interest rate or have a quick exit strategy.

How did you go about getting your cash advance on the cards?

My old manager used to always use a credit card to buy up mobile homes and rent them...she found it easier than getting financing for used ones...

My card accounts all have convenience checks that you just write as a regular check and then deposit to my business account.