Credit cards can be a tool or a vice that destroys you quickly. I have used them for both.Once I wanted to build a home. The builder wanted $10,000 down.
I gave him $10,000 off a credit card I had that charged me $75 and zero percent interest.
He built the home for $162,000. I then had to get a loan and cash him out, and I used it to pay off the credit card before they started charging me interest.
This is truly a nothing down deal, and a credit card was a great tool. I currently have this home under contract to sell for $198,000. So basically I used $75 to make $27,000.
I have also had deals where I used a credit card to put my 10% down on a home. Six months go by and my client doesn't exercise his option. Now I am paying 9.99% interest while I hope he exercises his option.
It can be an expensive way to get a deal done, and really only works if the deal is short term.
I guess the best philosophy is that if you use credit cards to buy assets, you are usually ok. Just make sure your assets are liquid enough to pull the money out in time before the higher interest starts to eat you alive.
Thanks Burke Bennett
http://www.seidahohomes.com/
208 589 5599
burkebennett@hotmail.com
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