That’s right. I said it. Use your credit card.

I’m sure most of you have heard the explanation of bad debt versus good debt. Bad debt is when you finance purchases like flat screen TVs, cars,455195539_d2daff6208 vacations, or…look out, I’m about to say it… your own home. Good debt is when you finance purchases that will give you a return. Education is a big one. Another big one? Real estate! (The right real estate, of course)

It’s simple. If the interest rate on a loan or debt service is lower than the return you are making on whatever you buy, you’re making a profit!

When and How to Use Your Credit Card

Using a credit card will obviously only get you so far in real estate because most likely you have a credit limit. Say $15,000. So you won’t be paying all cash for a $100,000 property anytime soon, but there is a lot in real estate you can do with $15,000. You can buy a $50,000 rental property using a mortgage with 20% down. $10,000 for the down payment and $5,000 should cover closing costs. Bam! You just bought a rental property with a credit card!

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  • Karin and Kim

    Hello Ali,
    I have enjoyed reading the articles on your website. Thank you very much for the information. I wanted to know how do I find out which states are landlord friendly vs tenant friendly? Also, we are interested in investing in Atlanta, do you have any helpful suggestions or contacts?

    Kim and Karin

    • Ali

      Hey! You bet. I’ll email you.

  • Luis Acevedo

    I love your article on calculating rental property on a napkin; you made it so easy even a newbie like me can get it. Well, I live in NYC and as you know the prices of real estate are crazy here. My question is can you recommend a good property management company in Savannah, GA? I plan to move there and I want to get a jump on investing there. Any help would be appreciated. Thank you in advance.

    • Ali

      Hi Luis! Moving to Savannah, huh? That sounds great. I went to Georgia Southern for two years in Statesboro not too far away and spent plenty of time in Savannah. It’s a great town. Unfortunately I don’t know any real estate contacts down there. If you want to gear any of your investing into Atlanta, I can definitely help you there. So sorry! Have fun down there and watch out for St. Patty’s day activities down there 🙂

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