Paying with credit card

K

KeenInvestor

Hi,

I know this may sound silly at first but hear me out. I would like to know if anyone has ever paid for a investment property using a credit card?

As an example:

I am buying a investment property worth $100,000
I have a loan approved and settled for $100,000
I have a credit card with a $20,000 limit on it.

I ask the vendors selling agent to make 5 x $20,000 payments over 2 weeks. Each time I make a payment on the credit card I then move 20k from the loan account to pay off the credit card. I do this 5 times and the vendor receives all the money for the property.

Has anyone been able to setup this type of payment arrangement?

Cheers!
 
KeenInvestor said:
Hi,

I know this may sound silly at first but hear me out. I would like to know if anyone has ever paid for a investment property using a credit card?

As an example:

I am buying a investment property worth $100,000
I have a loan approved and settled for $100,000
I have a credit card with a $20,000 limit on it.

I ask the vendors selling agent to make 5 x $20,000 payments over 2 weeks. Each time I make a payment on the credit card I then move 20k from the loan account to pay off the credit card. I do this 5 times and the vendor receives all the money for the property.

Has anyone been able to setup this type of payment arrangement?

Cheers!
Click to expand...
Just a couple of things:

1. Glad to see you pay off the balance on your card before any interest kicks in, because if you don't, that'd make your eyes water!!!

2. Hope you got a rewards point set up linked to this card (which is the only reason I can see why you'd want to use this method) in which case you'd hopefully get a few frequent flyer points and/or fly buys for your efforts!!!

I sure as heck couldn't buy a property on my credit card; my limit would hardly even cover the 10% deposit!!! :eek:
 
This also assumes that;

a) The realestate agent has a credit card facility to charge you with.

and if they do

b) They are willing to do it considering the processing fee for the credit card transactions would cut out half or more of their 2% commission. Unless you volunteer to pay the extra $2k surcharge of the property value, which in effect just means you're paying for the 100,000 reward points and don't really get any benefit.
 
It would only work from a lending perspective if you had the loan secured against another property, not the one you are purchasing. Like cash converters, lenders wont hand over the cash until they have the guitar/property.
 
I asked if we could buy our car and put it on a credit car, but the most they would allow me to put on the card was $1K (might have been $2K).

The car yard didn't want to pay the extra fees.
 
wylie said:
I asked if we could buy our car and put it on a credit car, but the most they would allow me to put on the card was $1K (might have been $2K).

The car yard didn't want to pay the extra fees.
Click to expand...

We bought a car on a credit card once. 10k. I think the seller didn't stop to think about the surcharge. :D
 
rugrat said:
We bought a car on a credit card once. 10k. I think the seller didn't stop to think about the surcharge. :D
Click to expand...
I use to buy my paint on AMEX,excess of 100K a year,they were happy to accept it,now last month they stopped.I have a lot of points x 2 :D
 
Or if they do then you know you're not getting the best price possible. No free lunches as far as suppliers or the credit card companies goes.

Gools
 
The sales contract generally states the method of payment to be made which is mostly bank cheque.
No vendor (or their legal agent) in their right mind would ever consider taking a credit card, which is the most insecure form of payment ever devised.
 
If you purchase a property with a bank cheque its a done deal but with a credit card you can dispute the transaction for quite a few years after that. I don't know what the legal implications of that would be since you would be the legal owner of the property but could still put in a dispute on the transaction used to make the purchase. I haven't dealed with settlements for many years but from memory real estates and solicitors who are accepting funds on behalf of the seller place these funds in trust account to disburse to their customer. I am not sure how this would work being that its a credit card purchase. Also when you say you are doing 5 payments over 2 weeks, does your contract reflect this? From your original post you mentioned that you have a loan in place which is where the funds are coming from to clear the credit card debt...is there a reason why you can't just access the loan funds and use that directly to make the purchase? I can't see a real benefit in this expect for the reward points. If that is the only reason I would be asking the real estate if they are going to ask for you to cover their costs for the credit card transaction
 
We've used c/c cash to buy quite a few cheap properties. The point is on paper you completely own the property outright day one - that's power baby and with many other pluses .

We've usually left enough on the cards to cover repayments for the 12 mths until resell .

We don't pay seller using the cards , we go to the bank and take cash out of the card direct , then pay for the property with that cash , well cash converted to a bank cheque anyway or into our account and then transfered through the solicitor.

It really has it's benefits with cheap properties believe me.
You own it outright , no exit fees , no bank bs or hard loans ,no other fees, cash bargaining power , no justifying your deals to anyone , it goes on and on. You do what you want , just the way I like it !
Of course if your sell strategy gets held up as with my last one , your out of repayment funds and left forking out v/h rates from your own pocket until the deal is out the door, but we got through , with some pretty serious wangling that is .
And , the fact that you do own the property outright and that you have reno'd it and sometimes doubled it's value in that period , means that if you really get stuck you can always refinance against it and pay out your cards . We looked at that with the last.
But with all the bank bs , fees and costs involved it wasn't worth it short term.

Cheers
 
Last edited:
We bought a small furnished mobile home.
Paid by credit card...but used the cheques they sent with it.
Paid $10 K in $2007.
Rents for $900 month all inclusive. Not bad :)
 
random said:
We've used c/c cash to buy quite a few cheap properties. The point is on paper you completely own the property outright day one - that's power baby and with many other pluses .

We've usually left enough on the cards to cover repayments for the 12 mths until resell .

We don't pay seller using the cards , we go to the bank and take cash out of the card direct , then pay for the property with that cash , well cash converted to a bank cheque anyway or into our account and then transfered through the solicitor.

It really has it's benefits with cheap properties believe me.
You own it outright , no exit fees , no bank bs or hard loans ,no other fees, cash bargaining power , no justifying your deals to anyone , it goes on and on. You do what you want , just the way I like it !
Of course if your sell strategy gets held up as with my last one , your out of repayment funds and left forking out v/h rates from your own pocket until the deal is out the door, but we got through , with some pretty serious wangling that is .
And , the fact that you do own the property outright and that you have reno'd it and sometimes doubled it's value in that period , means that if you really get stuck you can always refinance against it and pay out your cards . We looked at that with the last.
But with all the bank bs , fees and costs involved it wasn't worth it short term.

Cheers
Click to expand...
Cash advance from a credit card is instant high interest rates, :mad:
I would personally never take cash from a credit card as then I have to pay interest.
I have "never paid any interest" from my credit card in years,just use their money for the 55 days for free,pay out fully at the end of the month.
Collect the rewards.
Your system I believe has flaws?
 
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