When I used my
credit cards to raise finance for rapid growth business deals I was able to
raise over £70,000 on cards alone. I could raise a further £30,000 or so on
overdrafts and 'personal reserve' accounts with agreed borrowing limits.
There are many
opportunities to make a lot of money in a short time when you have the capital
to invest. Naturally, because of the high interest rates payable for cash
borrowing on credit cards, the only reason you should borrow large sums of
money using this method is to invest in opportunities which virtually guarantee
a good profit in a short time.
Before I made the
mistake of investing in business opportunities which I had not looked into in
enough depth, and so consequently lost money on, I used credit cards to borrow
several thousands at a time to finance some very profitable deals.
Some of these
included the cash purchase of luxury cars, often after I had already located a
buyer with ready money to buy from me immediately after I had taken possession.
The best of these deals was when I bough a Mercedes 190E for £8,750 from a
private owner in London and sold it for £11,000 to an eager buyer in Edinburgh
who had already told me that was the price he would pay for this particular
car. The purchase price was raised solely through my Visa and Mastercards.
I actually
borrowed £9,000 and took a luxury overnight stay at the Hampshire hotel in
Leicester Square as a perk of the "job". The best part, though, was
driving the car from London to Edinburgh.
I knew that I was
making a sound investment, because, even if the man who had agreed to buy the
car from me had changed his mind, I had a car with a book price of around £12,000
for less than three quarters of that sum. The very worst I was likely to end up
with was my money back!
Although I have
made more money in property dealing than any other business venture, followed
closely by selling information, I still buy and sell the occasional luxury car.
Not because I need to, sometimes I only make a few hundred pounds. I do it,
just occasionally, because I enjoy it...it certainly beats working for a
living!
Please note,
because of the high interest rates of credit cards it is often not a good idea
to use the money borrowed on them to finance property deals. The trouble with
property, although it is nearly always a good investment, is that it can take
some time to turn it around.
Credit card
borrowing should only be used when you are virtually certain that a property is
going to be ready for sale in a very short time and that you are confident that
it will sell quickly.
I bought a shop,
over three years ago, which I still have not managed to sell. It has been on
the market now for over two years and looks like it will be some time before I
finally dispose of it. The initial sum of £25,000 for purchase and repairs was
raised on credit cards. But, after paying out thousands in interest I finally
paid off the credit cards with a long term bank loan. I was able to use the
property itself as collateral, so getting the loan was not a problem. I mention
it here simply to warn of the dangers.
When I first
decided to buy the shop I was confident that I could have it ready for sale within
three or four months. This I did. I then used it as a storage space for a
further 9 months and then put it on the market. I know it will sell eventually,
and I expect to get the asking price of £57,000, but my initial hope of a fast
profit soon disappeared.
So, although
there is great potential in using your credit cards as a means of raising cash
quickly to finance lucrative deals in property or any other business
transaction, please be warned: Tread carefully.
Providing that
you take care to research the opportunity in which you intend to invest, and
make certain that you have every last iota of information available, there is
no reason for you to not make excellent profits. And once you have done a few
deals in whatever area of business you choose, you should recoup the profits to
build yourself a capital base. Working like this you will soon be able to
finance your dealings with your own money.
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