š 7 Ways to Use $100Kā$200K in 0% Business Credit to Scale Your Real Estate Portfolio Faster
Here are 7 ways you can help your clients get funding to grow their portfolios! You can go from 1-2 properties a year to 3-6 with this method. Most people think you need years of saving to invest in real estate. The truth? You can walk into a property without touching your own cash. Hereās how it works:Hard money lenders usually cover 80% of the purchase. With $100K to $200K in 0% business credit, you can cover the rest ā down payment, closing costs, and even gap funding. First, let me clarify: business credit cards are different from business lines of credit. A line of credit usually requires revenue and caps at 10% of annual income (500K revenue = 50K line). With business credit cards you can access 100K to 200K in 0% funding right away. To use it for down payments and closings you liquidate the credit into cash at around a 6% fee. (Never use cash advances that cost 20% to 29%.) Hereās what you can do with this strategy: 1ļøā£ Marketing and deal flow If you are wholesaling, you can use cards directly for ads, VAs, and dialers. No liquidation needed. More leads = more deals closed. 2ļøā£ Down payments and closing costs Example: You need 20% down on a DSCR loan. On a 200K property that is 40K. Liquidation costs $2,400. Add cash back of $800 and your net cost is only $1,600. Would you pay $1,600 to acquire a property with tax benefits, appreciation, tenant pay down, and monthly cash flow? 3ļøā£ Gap funding If a lender covers 90% of purchase, you can gap fund the last 10% using business credit. This lets you scale deals faster instead of waiting years to save up. 4ļøā£ Courses and mentorships Want to hire a mentor or join a 10K program too fast track your portfolio? Swipe your business credit card at 0% and give yourself 12 to 18 months to pay it off. 5ļøā£ Tenants and toilets (the ugly side of investing) Every investor has heard this phrase. When mold pops up in the walls or a furnace dies in winter, itās better to have access to capital than to be cash strapped.