koch@holst.DEC (Kevin Koch LTN1-2/B17 DTN229-6274) (01/02/86)
>I heard an interesting one on TV the other night. It goes like this: > Acquire a large number of VISA cards. > Find a house to buy, offer seller CASH TOMORROW ... for 70-80% >of the market value. > ... get a cash advance on all those VISA cards. > Pay for the house using the cash. > Refinance the house for 80% of the value and pay off the VISA >cards within 30 days (to avoid the interest payments). > . > . > . One problem with this is that the credit card companies only offer free floats on merchandise, for which they get 4% or so anyway. When you buy cash with your credit card instead of merchandise, you start paying interest from the day you get the cash.
dgh@sun.uucp (David Hough) (01/03/86)
> >I heard an interesting one on TV the other night. It goes like this: > > Find a house to buy, offer seller CASH TOMORROW ... for 70-80% > >of the market value. > > Refinance the house for 80% of the value and pay off the VISA > >cards within 30 days (to avoid the interest payments). I am curious about where in the country you can close real estate deals in escrow in just a few days, even for all cash, then obtain bank financing in a few days more! The bank for sure will demand that the refinancing close in escrow. The short-term financing starts to cost you, whether obtained by credit cards or otherwise.
mulbery@mot.UUCP (Bill Mulberry) (01/10/86)
In regard to Dave Hough's comment:
Try New Mexico. I bought a house in the southern part of the state
a few years ago. I obtained bank financing from a major state bank
in one day! The realtor and I managed to have the house closed in a matter
of a couple of more days.
At that time, I had very little credit also.
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Bill Mulberry @ Motorola Microsystems, Tempe, AZ U.S.A.
UUCP: {seismo!terak, trwrb!flkvax, utzoo!mnetor, ihnp4!btlunix}!mot!mulbery
ARPA: oakhill!mot!mulbery@ut-sally.ARPA AT&T: 602-438-3039
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