Is it possible to buy a house with a credit card?

Dreamworx
Dreamworx

Is it possible to buy a house with a credit card?

Say i have a card with like a 5k limit and theres a cheap house i can fix up for sale for 5k.

can i just swipe?

Raving_Cute
Raving_Cute

@Dreamworx
I guess so.. you would get a better rate with a mortgage though.

Lunatick
Lunatick

@Dreamworx
There's not like some sort of POS terminal for house buying, BUT:

Yes, you can kinda-sorta do this. Remove the bank out of the picture, get a title company involved, and get them to handle escrow. Doing this via a credit card would be difficult, but I'm betting you could probably just pay out of a bank account and live off the credit card for a bit.

Booteefool
Booteefool

@Dreamworx
Where the fuck do you live where you can buy a house for 5k?

King_Martha
King_Martha

@Booteefool
In the south man, I live in the ghetto of a run down city and houses can be had cheap here, They are fixer uppers though but i can rent them to mexicans.

Soft_member
Soft_member

@Lunatick
The reason i ask is because i don't have a job or any income so the bank will most likely not give me a loan even if i explain to them my plan is to rent the house.

So the only capital i have access to is the 5,000 limit on my credit card.

farquit
farquit

@King_Martha
I live in Ausfailia, the idea of a house being 5k blows my fucking mind

How much rent would a 5k house pull in, and what are the US's laws about foreigners buying houses as investments?

happy_sad
happy_sad

@farquit
i could easily pull in $350 to $430 per month from one of these shit holes.

takes2long
takes2long

@Soft_member
Gotta think more broadly, then.

Can you convince an investor to loan you the $5k? See if you can't leverage your network - $5k isn't much, and if you can promise a decent rate of return (invest $5k, get 50% of your revenue from the house rent, or something like that), you may have some bites.

What I'd do:
- Get a few people to loan me small amounts ($1k x 5 people or something)
- Promise them a percentage of your income stream (10%) plus joint ownership of the property (so, worst case scenario, they just own $1k in a home)
- Take the 50% you receive and save it up for another house
- Buy that house on your own, collect 100%
- Rinse, repeat.

w8t4u
w8t4u

@happy_sad
So a 5k house would pay for itself in one year of rent? (ok realistically more like 1.5 years what with expenses and all)

Time to look into US housing laws and potentially immigration laws

idontknow
idontknow

@takes2long
I asked my wealthy uncle if he would loan me the 5k but he's really fucking tight. I offered him the deed to the house as collateral plus interest and he still didn't bite, I guess he thinks i will fail.

I don't have any other contact that have money enough to help.

Only way i know of is credit card checks which unfortuenaly come with an insane interest rate.

Bank wont loan without collateral and even with collateral probably wont loan with no proof of income.

It's fucking hard to start from the bottom.

Burnblaze
Burnblaze

@w8t4u
Yes basically. At least until Trump is elected and deports all the illegals.

LuckyDusty
LuckyDusty

@idontknow
The obvious answer here is for you to get a job and save up the cash yourself. $5k is pennies, you could save that much up working nights or something.

Nojokur
Nojokur

I find it hard to believe that you could buy a house that is not a total teardown and/or not subject to significant liens or back taxes. Is this really possible? I remember people were talking about all the cheap houses in Detroit a few years back, but you'd end up having to pay thousands in unpaid property taxes to actually buy them.

Raving_Cute
Raving_Cute

@King_Martha

Trump is going to deport them all

MPmaster
MPmaster

@Nojokur
Depends. I've been looking a bit today, as this topic has piqued my interest. Houses seem to fall into one of two categories:

1) Asspains (need repair, etc.), or
2) Financial pains (back taxes, liens, etc.

(1) Can be fixed if you have time/skill/energy. I'm considering that myself, assuming I could get some other equally motivated yuppies onboard. (2) is a bit more difficult - you can get details on the property and certainly wouldn't be blindsided, but it'd add to the cost and be a bit of a time sink.

I'm strongly considering seeing if I can't get a place in a small market but near a college (e.g. Richmond VA, Charlottesville VA, Charlotte NC, etc.) that falls into (1) and giving it a go.

The biggest risk here, honestly, seems to be that you'd have a hard time finding/managing a renter.

whereismyname
whereismyname

@MPmaster

wrong

Ignoramus
Ignoramus

@King_Martha
Protip. Rent to a mexican that does construction. Tell them they can live rent free if they fix it up and give you ~$250 in reciepts for paint and boards and shit.

U run a large risk of getting had if they want to rob u. Also, risk of shitty work or unfisnished rooms. Get a descent contract drawn up stating they cant do any major construction without written approval by u. Little shit like paint and carpet and hole patching makes a nice looking house. And u dont have to fix dick all that way.

nb4 muh liability

Wtf ever. If u fonna buy a shithole for 5k and rent to spics go for it. Most of them are illegal and cant sue.

Just find a guy u think u can trust with a job and without a dope problem.

Owner of 3 crackhouses checking in.

I lose roughly $200 a month but i can adequitly cover it. Have 3 credit cards in case a hot water heater blows or roof leaks etc.

All 3 of my houses are getting fixed up for free.

Buy shit house for $10k
let retarded alchaholic construction worker i know live there free for $200 in suplies from local hardware store.
Tell him drop or mail envelope of reciepts in mailbox.

Dude is 100% happy. Has cheap rent and bills. Fixing it up makes it more like his own and takes pride in landscaping and painti g the outside and shit.

I get tax writeoffs and probably a life long tennant.

He asked me if he could add a room on the other day because there is nothing left for him to do. Told him id go get a $10,000 loan and trade him for reciepts. Nigga is beyond happy, does descent work, and if he ever does move or dies my ass will rent that 10k crackhouse (turned nice with an added bedroom) for like $650 bucks.

Spamalot
Spamalot

@Ignoramus
Finding quality labor like that is the most difficult thing depending on your geographical location. People severely overestimate what their labor is worth, especially now that there's a new inflation crisis ensuing with $15/hour demanding burger flippers.

Evil_kitten
Evil_kitten

@MPmaster
It's easy to find mexicans. They are the only ones actually working now, They got the construction and landscaping businesses completely cornered.

But when Trump is elected that may change.

Bidwell
Bidwell

@Spamalot
Right u are. The trick is to live in a shitsmall place like i do where everyone knows everything. Find a dude newly single that cant afford any other option and make him love the fact it all worked out. I leave my tenants the fuck alone. Unless they need me idgaf. Dude just last week got arrested. Guess he was fighting someone in the front yard. Was all over the scanner and people calling me and shit. Couple days latter he called to appologize and said there is a hole in the wall he fixing when he fets paid. Told him i give 0 fucks. Just pretend its your house and dont fuck it up. Your personal life is all u.

It is tricky to find people like this but worth it.

In fact. One guy left r months ago and i am eating the mortgage. Dont care. Got like 4 buddies about to get a divorce. The first one to move out doesnt know it yet, but they get to live there 2 months free and then start working on it. Or pay dick nothing rent. What do i care if it covers the mortgage and i get a free house? Or even better i get to borrow against it every 6 months ensuring i always have capital and if anyone sues me and wins, well faggot. Have fun paying on half a dozen houses that are nearly upside down with renters that dont pay rent. And, seeing as how most of them i think like me. I can probably get them to fuck up those houses when they leave ;)

Burnblaze
Burnblaze

@Soft_member
Investment properties are really easy to get loans for if you can prove that the property will be profitable. As long as you have the down payment in hand, banks will jump over it.

Even post crash they barely even give credit checks more than a glance if you have a decent chunk of the down payment.

takes2long
takes2long

@Burnblaze
My credit is good but i have no money other than whats on my credit card. Do you really think they will give me a ninja loan?

BunnyJinx
BunnyJinx

Hey meng, just saw this post.

I may be interested to get in on some slumlording action. Send me an email at my throwaway email [email protected]

Let me know which properties you've checked out, which location they're in, maybe send me even a few MLS listings with some rent estimates.

We'll talk.

Raving_Cute
Raving_Cute

@Ignoramus
That honestly sounds kinda fun, managing a portfolio of crackhouses. Maybe I'll just buy 30 crackhouses instead of a shitty basement condo in my expensive neighborhood.

askme
askme

@Dreamworx
You could buy a giftcard and then turn it into a money order and then use that cash

People do this all the time to churn credit card points for travel and such. Not so much real estate as the interest rates kill you

Might work for a fix and flip but it sounds like youre buying in detroit

Stupidasole
Stupidasole

@askme
I never thought about that but wouldn't buying a $5,000 gift card be kind of a red flag? Or do the credit card companies just not give a shit?

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