Using Business Credit to Buy Real Estate

Leverage business credit to invest in real estate without using personal funds

$100K-$500K
Business Credit Potential
0% APR
Intro Periods Available
680+
Credit Score Needed

The Business Credit Real Estate Strategy

How It Works

Instead of using traditional mortgages or personal money, you leverage business credit cards and lines of credit to fund real estate deals. This strategy works best for fix-and-flip properties, down payments, renovations, and creative financing.

Key Advantage: Doesn't tie up personal savings, doesn't show on personal credit (if truly business credit), and can access 0% APR periods for 12-18 months.

Step-by-Step Process

1

Build Business Credit Profile

3-6 months

Establish LLC/Corp, get EIN, open business bank account, build credit with vendor accounts

Key: Foundation phase
2

Stack Business Credit Cards

1-2 months

Apply for 5-10 business credit cards within 1-2 months. Target cards with 0% APR intro periods.

Key: $50K-$250K potential
3

Find the Right Deal

Ongoing

Look for properties that can be renovated and sold/refinanced within 12 months (before 0% APR ends)

Key: Exit strategy is critical
4

Use Credit for Down Payment & Renovations

Deal execution

Use business credit for 20% down payment, renovation costs, holding costs. Partner with hard money lender for remaining 80% if needed.

Key: Don't max out cards
5

Sell or Refinance

Within 12 months

Flip property for profit or cash-out refinance with conventional loan. Pay off business credit cards.

Key: Before APR increases

Real-World Example

$200K House Flip Using Business Credit

Purchase Price
$150,000
After Repair Value (ARV)
$220,000

Funding Breakdown

Down Payment (20%)$30,000 (Business Credit Cards)
Renovation Costs$25,000 (Business Credit Cards)
Holding Costs (6 months)$5,000 (Business Line of Credit)
First Mortgage (80%)$120,000 (Hard Money Lender)
Total Business Credit Used$60,000

Exit Strategy & Profit

Sale Price$220,000
Minus: Hard Money Loan-$120,000
Minus: Business Credit Payoff-$60,000
Minus: Selling Costs (6%)-$13,200
Net Profit$26,800
Result: $26,800 profit without using personal savings, completed in 6 months during 0% APR period.

Best Use Cases

Fix & Flip

Perfect for quick turnaround properties. Use credit for down payment and rehab.

High profit potential

BRRRR Strategy

Buy, Rehab, Rent, Refinance, Repeat. Use credit for acquisition and renovation.

Build rental portfolio

Wholesale Deals

Use credit for earnest money deposits and assignment fees.

Quick flips, lower risk

Subject-To Deals

Take over existing mortgage, use credit for seller equity, repairs, and back payments.

Creative financing

Down Payments

Use credit for 20% down on rental properties, conventional loan for remaining 80%.

Build equity fast

Hard Money Gap

Hard money lenders typically lend 80-85%. Use credit to cover the gap.

No personal funds needed

Important Warnings

Have a Clear Exit Strategy

Must sell or refinance before 0% APR expires. Plan for worst case: property takes 6 months longer to sell.

Don't Max Out Cards

Keep utilization under 50%. High utilization can hurt credit and reduce approval for future cards.

Build Cash Reserves

Keep 6 months of payments in reserve in case deal takes longer than expected.

Know Your Market

Only works in markets where you can accurately predict ARV and sell/refinance quickly.

Personal Guarantee Risk

Most business cards require personal guarantee. Your personal credit is on the line if deal fails.

Start Building Business Credit for Real Estate

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