Raise your hand (figuratively, of course…we can’t see you through the computer) if you have been to a “free seminar” at a hotel conference room to be told that you should all your credit card company and increase the limits in order to pay for expensive additional training. Has this happened to you or someone you know? This is becoming a common theme…one which should bring shame upon those who perpetrate it.
I can’t think of a scenario where buying a house on a credit card is a good idea. In reality, the gurus aren’t wanting you to buy a house with your increased limit. They are simply trying to milk your credit card dry. There are free community sites out there with their share of “keyboard experts” that really don’t have the background to be giving any advice. The truth, as with most things, is somewhere in the middle.
Mentorship is a great thing, but only when it makes sense. Newer, inexperienced investors should have someone they can count on to bounce ideas off of. They might even need a partner…someone with a great deal of experience or capital to help you along your way.
One of the reasons we created the Institute was to give newer investors a way to garner real, helpful information from experts in the field that you can access for very little. Schemes where you pay for a course to get a taste and then you discover you must pay a great deal more for “more training.” Let me let you in on a little secret. The hotel gurus generally don’t have a strong background in what they are peddling. If you do have a mentor, make sure they are going to bring you the value that you expect.
In short, you shouldn’t have to, nor is it a good idea to, increase your credit card limits to get into real estate investment. You’ll only find yourself deeper in debt with little to show for it.