Best Use Of Business Credit Cards: Networking Monday!!

Peace Family:

Thought I'd share this info. I have actively been networking with folks looking at fix n' flips and facing the same challenges many of us do when it comes to funding the rehabs. Hope this is useful... Love n' Light to our community.

🚨🚨🚨Make Sure You Use Your Business Credit Cards de Right Way 🚨🚨🚨

Over the past 13 months, we've had the privilege of helping many fix-and-flip business owners secure 0% interest capital for their LLCs. Through this journey, I've learned some valuable lessons that I believe can greatly benefit our community.

🔥 Real Estate Entrepreneurs: A Guide to Proper Use of Business Credit Cards

When we first receive 0% interest business credit cards (BCCs) for funding our ventures, it can be both exciting and daunting. Many of us feel a bit lost on how to best utilize this newfound capital. It's essential to understand that to make the most out of these cards, we DON'T need to liquidate them (convert them to cash) to lend or use for our real estate businesses.

❌❌❌ The Wrong Turns:❌❌❌

Let me share a few stories about the mistakes some of us have made, so you can avoid the same pitfalls:

❌The POS Pitfall:

One of our fellow entrepreneurs tried using his own Point of Sale (POS) system to liquidate his business credit card. Unfortunately, this is considered fraud by most banks. His bank detected the activity, canceled his card, and he lost the 0% introductory offer. It's a risky move that almost never ends well.

❌The Casino Cash Trap:

Another business owner thought he could outsmart the system by buying chips at a casino and then cashing them out. He ended up paying over 15% in fees, which ate into his capital significantly. It was an expensive lesson that we can all learn from.

❌The Cash Advance Quagmire:

Some tried using apps like Venmo or Cash App, or even ATMs, to get cash. These methods are treated as "cash advances," and most BCCs only offer 0% interest on new purchases, not cash advances. This mistake can lead to hefty fees and higher interest rates.

❌The Big Chunk Blunder:

A friend tried to liquidate a large sum all at once using a friend's POS system. The bank flagged the large transaction, suspected fraud, and canceled his card. It’s crucial to increase your credit card balance gradually and inform your bank before making significant transactions.

✅✅✅The Right Path: ✅✅✅

Now, let’s talk about how to use your business credit cards effectively for your real estate ventures:

✅ Melio Payments:

Melio Payments has been a game-changer for many of us. This service allows you to pay invoices from vendors or other companies using your credit card, with a 2.8% fee on the total amount. Your vendor receives an ACH payment, completely unaware that you used a credit card. It’s a seamless and efficient way to manage payments.

✅Plastiq:

Plastiq is another fantastic option. Similar to Melio, it lets you pay bills with your credit card. What’s more, you can send payments directly to THE TITLE COMPANY via a paper check. Many of us have found this incredibly useful for our real estate transactions.

💸💸Final Thoughts:💸💸

Here’s what I suggest: Set up accounts with Melio and Plastiq today. Start with small otransactions to get comfortable with the process. And always remember, never send money directly to a company you owe to avoid complications.

By using these tools wisely, you can maximize the benefits of your business credit cards, ensuring your real estate business runs smoothly and efficiently.

I hope you find these insights helpful. Let's continue to support each other and grow our businesses together. If you have any, feel free to reach out for help!

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