Credit cards are a great way of leveraging money to enable you to invest. Many cards offer cash advance facilities whereby they will transfer up to 90% of your card limit into your bank account. This is ideal for a short term off plan deal whereby a deposit is required. You can also transfer the balance and take advantage of 0% interest rates so that the balance incurs no interest while your property is being built. This is a proven strategy among many shrewd investors. Make sure you do your figures so that the card can be repaid off.
Raising Deposit funds or leaveraging Cash for Property Investment?
Do you want to know how you can profit from off plan property investment by using other peoples money?
Seen an investment property deal and think I don’t have the money to put down?
It’s not about whether you can afford it, its about How can I afford it?
One of the shrewdest ways of raising finance is by doing so with as little interest charges as possible. You also need to make sure that the deal stacks up. What does this mean? Essentially, you need to know all your costs so you know how much the deal will cost you on your exit strategy.
Many investors have used the credit card leveraging system for many years. It works and you are able to raise funds quickly with lower interest charges if you know what you are doing.
It is a simple process.
1 Apply for 2 credit cards.
Make sure the first one will give a competitive rate with a cash advance like the MBNA cards, which include Virgin Cards. Make sure the other card gives 0% balance transfer.
For example, MBNA charge the following:
Transfer funds directly into bank account. 0%.
Balance Transfer 0%
(There may be a handling fee, subject to applicant)
2 Raise the required cash on one card.
MBNA should transfer this into your bank account. Do not go to a cash point as they charge higher interest rates. This can be used for your exchange deposit. Make sure when you apply you tick the box to pay the minimum value each month by direct debit. This way you will not forget to pay it. Non-payments can affect your credit score.
3 Transfer the Balance
At the end of the month when you receive your credit card statement, you can do one of the following:
a) Transfer the balance across to the second credit card. This is better for your credit scoring. As an investor, high credit scoring is worth the small fees you may have to pay or the time to arrange the balance transfers.
b) Or keep the balance on until your promotional rate finishes and then transfer the balance onto another
4 Pay off the Card
If you sell the property before completion then the profits of the sale will be paid to you at completion. You can request that the buyer pays you a deposit so you can pay off your credit card in advance.
A few easy steps to raising funds. It’s not a case of I cant afford it, try the philosophy of How Can I Afford It! 
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