I currently have good credit I would love to learn how to make more money.I contacted the real estate instition abouty finding a mentor to show me how to make money the cost 4 the mentor is $3775. but he is sugesting that I start out buy getting credit cards using them to purchase properties then transfer the balance from credit card to credit card if they don't sell fast every 30 days. is this okay I don't want to ruin my credit. I just want to be able to make money.
2007-11-27 01:40:29 · 11 answers · asked by Healing for My Soul 3 in Business & Finance ➔ Renting & Real Estate
The people that you are talking to are thieves. They are out to steal your money and nothiing more.
They will ruin your credit with that advice.
If you really want to learn how to invest in real estate, I recommend that you first become very good at determining the fair market value of a piece of real estate.
I recommend that you contact The Appraisal Institute and tell them that you waould like to learn about real estate appraisal and that your ultimate goal is to earn the MAI (Member of The Appraisal Institute) designation.
Take all of the training classes and go to work for an appraisal firm that is owned by a Member of the Appraisal Institute. Earn your MAI designation. At that point you are ready to begin investing in real estate and you will be able to invest successfully in real estate for the rest of your life, especially if you keep your credit good.
The characters that you are talking to will steal your $3,775, destroy your credit and teach you nothing about investing in real estate. And to make things even worse, you will not even make any money with those characters. You will lose money.
2007-11-27 02:06:37 · answer #1 · answered by Anonymous · 1⤊ 0⤋
I am going to have to agree and say this is not generally a good plan. However, it is not ALWAYS a totally bad situation. If you find the right bargain and that is the only way that you can finance it, you may want to take that leap. I have seen it done successfully on property ladder. People often finance the rehab with credit cards. If you could get a 0% rate for 12 months (not uncommon) it would be even better.
You have to be prepared for the failure though. What are the options if the property doesn't sell? I would go no higher than 50% loan to value for sure. That way if you have to refi or dump the property you can.
Again, this is a very risky scheme. Not sure I would recommend it for a first time flipper. Don't forget that you will have additional expenses once you get the house. It is going to need some work.
2007-11-27 10:17:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
that's a quick way to find yourself out the street - that's one of the worst scams I've ever heard of. There is no way even in the best realestate market (and we're in one of the worst in a long time) you can buy a house, turn around the next day and put it up for sale and sell it for a profit and close in 30 days - it's just impossible. You'd have to sell it for at least 6% higher just to cover sales commissions and why would the house be worth 6% more right after buying it and doing nothing to improve it? doesn't make any sense. The only guy making money with that kind of advice is the guy selling the advice to suckers for $3775 - go to the library and read books for free on real estate - watch the real estate/home improvement shows on TV for free
2007-11-27 13:16:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Stay away from this 'mentor'. Not only is he ripping you off, but is also giving you horrid advice. Credit cards should NOT be used for something like real estate. What will you do if you can't find a place to 'zero balance transfer' ? You will pay the rates as agreed on the card you used. Do you REALLY want to finance a real estate purchase at 25% ?
Send this dimwit packing and save your $3775.
2007-11-27 09:48:04 · answer #4 · answered by acermill 7 · 3⤊ 0⤋
This is a terrible idea.
Credit card companies today are the equivalent of Loan Sharks.
This strategy may have worked when homes were selling in 7-14 days.
Today it is taking 6-12 months to sell a home.
The credit card rate will eat you alive.
P.S. The card companies are onto people moving money from one card to another. The "Cash Advance" fee for using credit cards can be as high as 24%
2007-11-27 20:09:28 · answer #5 · answered by Terry S 5 · 0⤊ 0⤋
No. Credit cards should not be used to buy real estate. Its too risky and i don't think these companies accept credit cards as payment. Often these are paid cash, financed through banks or issued with postdated checks. Also, credit cards don't have that high credit limits. And if in case you have one, i don't think all your credit cards will have the same limits. And why would your mentor give such advise? Believe me, you won't benefit from this proposal. Better avoid this mentor, he is just fooling you.
2007-11-27 10:10:19 · answer #6 · answered by april 3 · 1⤊ 0⤋
Credit card balance transfer is one of the preferred ways to get rid of credit card debt and is used by many people to get immediate relief. Credit card balance transfer essentially means that we transfer our outstanding balances from a high APR credit card to a credit card which offers low APR's. A 0% Intro APR credit card is the preferred credit card to transfer balances, but because of the widespread misuse of such credit card offers, credit card companies have withdrawn all such offers.
Indeed balance transfer saves a lot of money and can save things from going worse, but many people simply don't know the right way to do balance transfer. This article takes a look at the correct process to initiate and complete the balance transfer.
The first thing to look out, when a person wants to transfer his balances is a credit card which offers the lowest apr rates and lowest balance transfer fees. Many online credit card companies offer credit card comparisons. It is indeed a good practice to search for the credit cards using their services and decide on a credit card which offers the maximum savings. It is important to note here that balance transfer APRs depend on a person's credit history. If the credit card in question offers the lowest rates, it is definitely for those with the best credit ratings. There are different balance transfer apr's for people with lower credit ratings. So, it becomes imperative that one chooses the credit card which offers the lowest apr and balance transfer fees for his credit ratings. Raed more from: http://www.credit-card-gallery.com/article/414,The_right_way_to_credit_card_balance_transfers
2007-11-29 06:22:02 · answer #7 · answered by lacy k 2 · 0⤊ 0⤋
Go Broke 101? Why not send me the money I will send it to a charity and do some good. Any quack can tell you to shuffle paper and make it look good, Flipping houses can easily make you broke the way you are describing. Save and then invest. Nobody really gets rich quick without paying the price. And who cares? I believe there are Federal Laws against using borrowed money to borrow money, similar to kiting.
2007-11-27 09:53:31 · answer #8 · answered by Wylie Coyote 6 · 0⤊ 0⤋
Everybody wants to earn easy bucks, almost nobody does so however. If you want to use CCs for this game than I think you are either very brave or very silly or you have a psyciatric problem.
Property speculation is for specialists, making money from amateurs who want easy money is less difficult.
2007-11-27 09:45:23 · answer #9 · answered by psychopiet 6 · 0⤊ 1⤋
Not a wise decision and doesn't sound like a very good company if they're giving such bad advice. I'd stay away.
2007-11-27 09:44:10 · answer #10 · answered by ? 3 · 0⤊ 1⤋