This is a double edged sword. However, if used carefully, it will expand your rental portfolio. There is two prerequisite for this strategy: having an excel credit score and a good lender. If you don’t have one or neither, you have to start working on fixing and finding them. If cash is king, credit is the queen.

The concept is very simple. you apply for the credit card that is 0% interest for the 1st 12 months, then take that money as a down payment to go buy a house. If your credit is good, there should be no problem getting a $20,000 credit card. After that, go find a house, get it in the contract and finance it out.

I simply use commercial lender because the process is so easy and the loan officer is on my side. They look at me, and they also look at the deal. If the deal cash flow well. there should be no problem getting it approved.

Take this a little further. you don’t have event have to invest in real estate directly for this. You can use this 0% interest in one year to invest in the stock market and make millions (i hope) Or use it to to lend to other investors for a fix, stable and secure rate. One thing i’m looking at it right now is the lending club and cloud funding. They have some pretty cool concept. about raising money.

The problem is that you have to be discipline enough to pay back $20,000 with in one year.  Otherwise, the interest on the card will choke you! How are you gonna do it. I don’t know…There are many way: go flip a house, get a 2nd job, sell your stuff on eBay, drive Uber, Airbnb your house out, do what ever it take to pay off the card an restart the process all over.

Or worst case scenarios, by the end of year 1 and you haven’t pay it off, applied for another card and use that card amount to pay off the 1st card. I am assuming that you are discipline enough to pay a significant amount of the original card back already.

Be discipline and do whatever it take for your future.

Happy Investing.