Real estate investor explains how she uses credit cards to buy homes

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Real estate investor explains how she uses credit cards to buy homes
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A real-estate investor who owns 35 units has never bought a home with a traditional mortgage. She explains how she uses 0% APR credit cards to fund investment properties, and why it's not for everyone.

is 6.59% as of July 2023) and she'd rather take on more risk by funding a purchase with a credit card that offers 0% interest for the first year, which is"essentially a free loan," she explained.

"Once the funds are directly deposited into my bank account, that is when I get the cashier's check or do the wire transfer to purchase the property."experts typically recommend against doing a transfer like thisHamilton doesn't recommend rookie investors try this strategy, either, unless they consult with someone who has successfully purchased real estate this way.

After purchasing a property, Hamilton will fix it up to rent it out and then refinance to get cash to pay off the balance transfer. "While it's 0% interest for the first year, if you don't pay it off, now you've got the highest interest after that one year is up," she explained. Thewas 20.92% in the first quarter of 2023."You have to make sure that you are able to execute and complete the project in a timely manner."

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