The Science of Flipping - How to Use Credit Cards to Fund Real Estate Deals | Scotty Tregellas

Starting point is 00:00:00 All right, Science Flipping podcast listeners, as always, this episode is brought to you by Rocketly.ai. If you're looking for a seller lead generating system that has automation in AI bot and has sellers coming to you, then Rocketly.ai is your choice. Make sure you head over to the website, fill out an application and schedule a demo now to see the power of Rocketly.ai. What is up, Science Flipping family? Welcome back to another incredible episode of the Science of Flipping with an incredible guest.

Starting point is 00:00:35 Scotty T is in the house. He is someone who I look to for credit advice. He has built an incredible business in real estate using leverage, understanding credit, understanding credit cards, lines of credit, et cetera. And so I'm super excited to have him here on the episode. What's up, dude? Thanks for having me, Justin. Yeah, man. This is going to be fun because you are new to me, but you're not new to real estate.

Starting point is 00:00:57 You're not new to a lot of my friends and colleagues. And you are the man when it comes to credit cards, lines of credit, financing your real estate business. You yourself are a real estate investor and have been for a long time. So let's dive right in. The credit card is good or bad? Good. All right. Good. It's so funny. People think they're bad. They're not scary. Dave Ramsey, Grant Cardone, whatever perspective that you want to have. Credit cards are good. Credit cards are bad. It's all about like, how are you managed debt? Are you using the credit cards to create a profit and leverage that? Then that's great. It's good debt. So of course they're good. So you out of the gate, um, got me set up. You said these are the nine, 12.

Starting point is 00:01:43 How many cards did you say I need to go get i think the first stack was around nine nine yeah nine cards and what cards did you give me because i can remember off the top of my head looking at the the list um the premium chase premiere yeah so it wasn't the premiere because that's just another charge card um it's like the the twin brother to the mx platinum okay it's valuable but it's a charge card you got to pay it off every month so i think the ones that i recommended you were a couple personal cards because of course like me you like to travel yeah so working towards that goal i think it was chase that fire reason you and that's right yeah uh and then of course a few more business credit

Starting point is 00:02:18 cards that focus more of more rewards geared towards the spend that you're using like most marketing right so like amex gold the chase inc uh preferred and then okay you want zero percent there's the chase inc unlimited right so it's like you kind of gave me a direction on what you wanted out of the credit cards and then i just gave you a list of credit cards to go out and apply for. And there we are. Yeah. So I want to jump directly into how does this affect real estate investors? How can real estate investors, and I'm telling all of you to go find him on Instagram, YouTube, Scotty T. I think Tregalus is his last name, but I think it's easiest if you do Scotty T. Yeah. You can just search S-C-O-T-T-Y-T. And I'm usually the first one that pops up in Instagram, YouTube, Facebook,

Starting point is 00:03:04 anything. I'm the verified one. So you can follow me and find me there. But yeah, no, with real estate, I used credit to get into real estate. I would have never been able to even get started with wholesaling if I did not first master the credit. I feel like I've repeated this story so many times and I hate saying it because I don't want any sympathy. But I was actually very homeless when I closed my very first wholesale deal. And I was in a really bad motorcycle accident in 2015. I wrecked at like 130 mile an hour. I'm blessed to be alive, but I couldn't walk or work for about a year. It completely destroyed my life. And then I had someone approach me wanting to basically get into real estate. And I grew up watching my dad build custom homes all over the country. And so I had this like passion and love for real estate, but didn't know anything about it.

Starting point is 00:03:58 And so I was like, yeah, I want to get in real estate. He's like, well, you need to fix your credit. So I paid a guy and I got ripped off. Of course, like we all know, like the credit industry is very sketch. It's very hard to trust people in the credit world. That's why I hate it. But of course, I got ripped off. I actually sold my very last gun. I'm from Kansas. So, you know, we all got guns there.

Starting point is 00:04:21 Sold my very last gun, paid this guy to repair my credit and nothing. But I don't have that like, oh, well, I guess I don't get to invest in real estate. There goes my dreams because this guy took advantage of me. No, I don't have that kind of mindset. So I started YouTube University and figured out how to start like disputing. And in two months, I went from a 531 with tens of thousands of medical debt and collections on my credit to a 741 in literally less than two months.

Starting point is 00:04:52 I'm like, whoa. Okay. Two months. You're able to move your needle that fast in two months. Oh yeah. And now I can do that in less than five days. Five days you can move your needle 200 points.

Starting point is 00:05:02 Oh yeah. And we'll get there. Okay. We'll get there. We're gonna stay tuned because even I need to know how he's gonna do that. Yes. Oh, yeah. And we'll get there. Okay. We'll get there. Stay tuned. Because even I need to know how he's going to do that. Yes. So, go ahead.

Starting point is 00:05:08 I will give you guys the exact blueprint. So, if you hang out and watch this full episode, there's going to be a QR code somewhere where you can download this exact blueprint on how to be able to do that in five days. There you go. So, anyways. So, went to 741. I'm like, okay, cool. And then I got access to a couple credit cards. And I think this was back in like 2017, back when Cody Sperber was huge on YouTube.

Starting point is 00:05:30 Sure. So I maxed out two personal credit cards. Don't max out personal credit cards, guys. I paid 10 grand for his mentorship program, invested another $1,000 in direct mail marketing in Tulsa, Oklahoma. So direct mail, 1,000 bucks, closed 80 grand next month. So my very first wholesale deal was 60,000. Now, why did you say don't max out your personal

Starting point is 00:05:53 credit cards? Because if you're maxing out your personal credit, yes, it benefited me. But if you max out your personal credit cards, utilization is going to skyrocket and your scores are going to drop drastically because utilization is 30 of your overall score factor it's 35 is on time payments so our utilization just for those is is like what percentage of available credit that you have that you've used yeah so just so make sure easy numbers you. You got $10,000 in credit. You're using $3,000 of it. That's 30%. If you're at that 30% threshold, you're going to see your scores drop drastically. Okay.

Starting point is 00:06:31 So with that being said, as someone, literally, I told you and I took you on, I went and paid off all my credit cards. Whether I needed to or not, I just did it because I could. But in your example, I would make the argument what you did was smart still to this day. Absolutely. Right? Like you leveraged credit so you could go find $80,000 of wholesale fees. So if you do that for 60 days, get your 80 grand just because closing times, et cetera, pay it off. Does it still really hurt you? And if so, how long does it hurt you? What does that look like?

Starting point is 00:07:06 Absolutely not. So, of course, it was a sacrifice I made back then. Of course, it turned out in my favor. But it will only hurt you temporarily because if you were to pay off those credit cards, just like you did recently, that utilization is going to to drop your score is going to rise so as long as you're paying those cards down but before the statement date your scores will reflect that so giving that into real estate i'm i'm more like i support you this is why we're going to do a lot of cool stuff together like i do want people to use leverage when correct right because it's an

Starting point is 00:07:44 investment in their business if done correctly. Buying this watch or buying that watch, dumb. Paying for coaching, investing in coaching, investing in marketing, investing in the business, smart, right? Absolutely. So keep going along your journey because what I want people to understand as real estate investors, there is good credit, there's bad credit, and there's good debt, there's bad debt. How would you suggest people to look at this for themselves obviously again kind of as always like i don't want you to have to sell yourself i know i work with them i know what he's already doing

Starting point is 00:08:15 and his team's doing for me so look them up get them on instagram youtube scotty t or tergalis but um what is your first piece of advice like you're speaking in my mastermind tomorrow yeah what are the first pieces of advice you're going to go tell that room stop leveraging personal credit for business okay that's the first thing that i want everyone to stop doing of course i did it and it was it worked out in my favor but if you do it too long you will really restrict your entire like livelihood and business. You're going to restrict it because it's going to restrict getting access to more and more capital. Right. Then you can have, you know, amazing credit when it's paid off 800 or you can be in,

Starting point is 00:09:00 you know, the 600s if you have maxed out personal credit. And if you're in that range of 600s, you'll get denied for everything. But if you have those credit cards paid off, you'll get approved for everything. So that's just the biggest difference from using personal credit and not. So of course, use it if that's your only option, but temporarily. You really want to shift your focus over to business credit because the way business credit is scored, it's only based off of one thing on time payments. So as long as you're never late, you've got a good score. So you have a Chase Sapphire Reserve card on the personal side, it's going to report the balance of your personal credit. But if you have a Chase Inc. Preferred on a business credit card, it's not

Starting point is 00:09:41 going to report that balance to your personal credit. You can max that sucker out and it will never punish you as long as you're never late. So the focus should be stop leveraging personal credit, get access to business credit as quickly as possible. Because also if you can get approved for $10,000 on personal, you can get approved for $100,000 on business, right? So having good personal credit and established business credit, you can really see three to five X the credit card limit. If someone doesn't know, first of all, I would tell most people don't try to do this alone. Like anything else, like go get ahold of Scotty because you might just think you're getting a good credit card because he said, go get a business credit scotty because you might just think you're getting a good credit card because he said go get a business credit card so you go to wells fargo and get a business credit card don't do that because it's probably not the right card um but if someone's sitting

Starting point is 00:10:34 here saying i want to start getting business credit cards i have five personal cards what do i do what do they do besides come to you which is what i want them to do because otherwise they're going to go to wells fargo or Chase and just get the generic card. Yeah, yeah. What can they do? This episode is brought to you by my friends and today's sponsor, LamassuLeads.com, the real estate industry's only enterprise-level call center.

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Starting point is 00:11:39 Seriously, if you need more motivated seller leads, if you're tired of babysitting cold callers on the other side of the world, Lamassu Leads is your answer. Go to LamassuLeads.com to learn more. That's Lamassu, L-A-M-A-S-S-U Leads.com. Man, I see so many people, big players in our industry, either not using credit. Which is crazy to me. And if they are, they're doing it completely wrong.

Starting point is 00:12:10 Right. And I can circle back to that. But I mean, the first thing that you want to do is really build relationships with banks. Okay. So you've got all the top tier banks like Chase, Bank of America, US Bank, and then of course, Amex, which isn't really a bank, but you want to build a relationship with them. And if you have to do so on the personal credit side, great. Go after personal credit cards with them or, and, or go open up a business and a personal checking account with those banks. Because if you have a relationship

Starting point is 00:12:39 with those banks, they're willing to give you money if they know who you are, right? If you didn't know me, you wouldn't lend me money, right? But if we had a relationship, you'd be more opt-in to lend me money. If we had a really good relationship, you might give me a lot of money. So that's the goal. The banks work the same way. They want to know who you are. They want to know that you're credible. Go establish that relationship, okay? Of course, maintain good personal credit. Don't have any derogatories or anything like that. My goal for everyone that I work with, I want to see you above 740 across the board. And then from there, as far as a business credit, at least three to five trade lines. So that's an 80 Paydex score.

Starting point is 00:13:15 Okay. And once you're done. What's a trade line? A trade line is really just an account that's reporting to the business credit bureaus. Like Home Depot? Like Home Depot. Best Buy? Best Buy.

Starting point is 00:13:27 Yep. Yep. Yep. Office of Supply. Anything. So how many trade lines? Three to five. You want three to five trade lines reporting to Dun & Bradstreet and Experian.

Starting point is 00:13:36 So three will establish you an 80 Paydex score with Dun & Bradstreet, and that's considered like a perfect business credit score. It scored from zero to 100. 80 is on on time anything above that is you pay it early so you only need three and once you have three you don't ever have to go back those will stay on there forever yeah so just get those three knock them out and move on now what by the way what if you have like for me i have four different charge cards right you know that yep effectively the same thing or no nope absolutely not good question because very good question because a lot of people think hey i have this business credit card there's my business trade line like no no no no those credit cards do not report to dun & bradstreet experian or ecofax business credit they do not report so you have to go and get trade

Starting point is 00:14:22 lines that actually report to those bureaus in order to establish a score. Credit cards don't. Which even charge cards, even Amex, Platinum. So where can people go? So you said Office Depot. Yeah. I mean, there's Uline, Granger, Office Supplies. I mean, we literally have a list of a hundred, like hundreds of them. Um, and you know, tier one is just simple net thirties where you just go make an account. Um, you can get approved as long as you have your like business foundation set up correctly, like address, everything's reporting consistently, like secretary of state, IRS, your banks, everything is consistent. Create an account with one of these like Granger, Uline, Quill, Office Depot, right? Create an account and then set up

Starting point is 00:15:06 a net 30. So basically you're buying something and then you have 30 days to pay that off. Once you get that statement, you pay it off and then they have like 30, 45 days to report that. And then once it's reported, boom, you've got one. Okay. You only need three. You've got your 80 paydex score, move on. So good personal credit, 740 plus, 80 Paydex score, then the bank relationships. And once you have that, our data shows that you're getting approved for 3 to 5x the credit card limits. Wow. So how does someone break into the real estate space using credit cards to their advantage? Same way I did.

Starting point is 00:15:45 Okay. I would not be here and I've made millions of dollars in real estate all because I maxed out two credit cards. But it's not a perfect story. As business owners, we know it's a fucking roller coaster. Yeah. Right?

Starting point is 00:16:01 I've failed, I've succeeded, and I've failed over and over and over again. COVID killed me. I lost $2. million dollars in May of what, 2019. It's a lot of COVID killed me. Yeah. But because I had access to credit, I was able to restart. Right. The interest rate spikes a couple of years ago killed a lot of people, knocked a lot of people out of our industry. But guess what? I had hundreds of thousands of dollars that i was able to fund my business and keep going on right so the goal is just to have access to that to be able to either start scale or even buy a business i call it having a runway absolutely right and so i think out of the i think you said there was nine that you sent my way

Starting point is 00:16:41 i think there was four or so that were like, just get these because the interest rate. Right. And I think a lot of people don't even realize it's still a thing. It's very much a thing. Yeah. Right. I had one of our members of science flipping just got $36,000 on a 0% interest rate credit card like last week. I know interest rates are up, but they gave it to them for 18 months. Yeah. Right. I mean, that's free money. That is the definition of it. And if you need marketing runway, if you need just sustainability runway, because things are getting a little wobbly, that's why you have some of these things. It's not the perfect answer, but that's a way to be able to have runway to get through a tough time or even

Starting point is 00:17:20 to get ramped up. Right. So this is how I like to compare it. So put me or anybody, me for an example, back where I was, I was living in a camper in the middle of woods in Southeast Kansas. What the hell? Yeah. When I closed my first deal. Now tell me this and you, you're a mentor to several. I'm sure you've heard this. Oh, I'm going to wait to get started until i save up money of course right yeah if i would have said that in the position i was in in 2016 would i be here today no chance it's way way easier to get access to 250 000 in credit than it would be to save 250 000 to start your business so say that louder for people in the back. But what I would say to that is it is the common rebuttal a coach, a community leader like myself gets is I'm going to wait because they're short-sighted. I'm going to go get my first deal by watching YouTube university. From there, I'll

Starting point is 00:18:17 invest in coaching. Right. Your, your argument, and you have nothing to make this argument for me for is to take the leap of faith, invest in the coaching so you can fast forward your line to success. Yep. I think the, absolutely take the risk. Right. I mean, it's easy for me to say, because I literally had nothing to lose. Proof of it. Yeah. I borrowed 20, not from a credit card because I couldn't, because I was, you know, my, I lost my home to foreclosure, re-managed to take my car, but I borrowed $25,000 from a friend. Same idea. Yeah yeah i'm about to shoot a private money lending fund your deal course i'm actually going to ask you to be a part of it because it's really about being able to fund your deal and get access to funding for all things marketing deal flow

Starting point is 00:18:56 right uh you know you can use some credit cards will give you cash advances what's your thoughts on that no need no need so the thing with advances, so for example, I just got approved for a card the other day. I'd get so many. That's great. But let's just use like I have a Chase Inc. Unlimited, 0% interest for 12 months. The limit is $80,000. And the cash advance is something like $7,000. Okay.

Starting point is 00:19:23 What is that $7,000 going to do for us when we're spending $40,000 a month in PPC? Nothing. Not much, right? But as soon as I take that cash advance out, one, I lose the 0% interest. Okay? So that'd be dumb. That'd be dumb. And $7,000 is not much.

Starting point is 00:19:39 What if they give you, what about those credit cards that give you a check that says, here's 0% interest check from the credit card that's 0% interest? So there is that route. Like Citizens Bank sends me those, right? Yeah. Citizens Bank is awesome. Awesome. I don't have access to Citizens Bank being in Vegas, but here in Florida, or if you're really in the southeast region of the country, Citizens Bank is a great one to go at.

Starting point is 00:20:02 But anyway, but those are still 0%. So for that example, it probably makes sense. So what I suggest doing is liquidating, right? So let's just go back to my Chase Inc. Unlimited 0% interest for 12 months, $80,000. We're in real estate. So let's talk real estate. If I want to buy a house, can I go to the title company with credit card and swipe? Nope. No. So if I had $0, but that is one hell of a deal and I go to the title company with credit card and swipe? Nope. No. So if I had $0, but that is one hell of a deal and I want to take it down. Okay. Yeah, we can go get private money.

Starting point is 00:20:32 We got to do the pitch. We got to do all this, but damn it. I have that 0% interest card, $80,000. How do I get that? We'll just liquidate it. Turn that $80,000 into cash. Does it stay 0% interest? It stays 0% interest. Is there some secret sauce you can't tell us? Some secret sauce that we may not have to say out loud. in cash. Does it stay 0% interest? It stays 0% interest.

Starting point is 00:20:46 Is there some secret sauce you can't... It's some secret sauce that we may not have to say out loud. Just shoot me a DM. Yeah, DM them. See, this is the key. DM them now. DM me liquidation and we can get you that cash in a few days. There you go. Good. So there you go. Now it's cash. So that whole $80,000 though?

Starting point is 00:21:02 Yeah. You can liquidate all $80,000 at zero percent interest still maybe some fees maybe a couple yeah processing fees sure yeah and any like crazy terms like it's got to be back in 30 days or no nothing it's the length of the same length of this you ran the credit card at nordstrom's same wow so what. So what you want, I mean, we can get into the secret sauce if you DM me liquidation, but we can even set it up to where the merchant that is taking that card is, you know, card specific. So for example, if they always do it on like a Amex gold, right? I wouldn't liquidate an Amex gold. I don't recommend liquidation with amex but if i was i would want to be charged something with marketing so i can get 4x rewards yeah

Starting point is 00:21:52 so it's like great i'm getting cash and i'm getting 4x rewards just because of this so it's like double whammy so one of the things i think there's a lot of people that don't even understand the points game let's talk about that i live i did a video a long time on youtube go check that out i don't even know the name is but like i did a seven night stay at the four seasons in maui first class of the family zero dollars right people like want to brag about their lifestyle but you have to understand sometimes when you're looking at that lifestyle it doesn't actually cost anything because they know how to work the game right so let's talk about some of the hacks that people should be doing um and then dm them to get the real knowledge go get my guy but like

Starting point is 00:22:35 what are some of the hacks i mean i know a lot of them but let's talk about what people may not know so the biggest thing that i'm seeing people do when they think they're travel hacking. By the way, I didn't want to bring up. Didn't mean the cocktails and dinners and lunches and breakfasts were free. That's still a boatload of money. Those are pricey. But getting there and sleeping. But flying there first class, staying in the best room for free.

Starting point is 00:22:59 We get to ball out a little bit more on those dinners and drinks. Yeah, you can afford $48 eggs. Exactly. Welcome to Maui afford $48 eggs. Exactly. Welcome to Maui. That's right. Yeah. Well, so the biggest thing that I'm seeing people do, because I have some clients who are spending seven figures a month on credit cards.

Starting point is 00:23:14 Yeah. So they have a shit ton of points. Yeah. And they think, millions. So they think by just going to Amex Portal and booking a flight with their points that they're travel hacking and saving money. Well, no, you're not. You're actually spending probably about 3 to 4x the points that you need to. So you're not saving money at all.

Starting point is 00:23:35 Because how, like, the point system is scored, it's one point per penny. Okay. Okay? On Amex, if you run the Amex. Really across the board. Yeah. Everywhere, right? So if you booked it within the Amex or you run the Amex really across the board everywhere right so if you

Starting point is 00:23:45 booked it within the Amex or anywhere it's it's typically one point per penny and um we've gotten upwards to uh 52 cents per point so a lot better than a penny yeah yeah um let's see so I went to Norway uh so you know Robert Winsley yeah. So every year we we were somewhere in the world. Right. For New Year's and Christmas and this this past, we only booked one way. Cash value was $29,800. Just two tickets, first class, one way. I spent $101. Now the point guys out there who are using their, they're booking their flights with just points straight in the portal. They're like, oh, you probably spent 800,000 points. Nope. 174,000 points. That's there. DM you DM me. I like it. Travel. DM me travel. There you go. Yeah. Yeah. Because I, I'm one of those guys. I mean, the reality is that story I just told you about the four seasons for class. I did directly line to line through Amex.

Starting point is 00:24:59 I had 2 million Amex points. I think it cost me a million two or something like that to go do all that, the first class of four seasons. But it was direct Amex. So I thought I was like, bro, I got this. So you're saying, Justin. Oh, man, you probably could have went to Maui like three times, taking that same vacation at least three times. So now that I'm already working with you,

Starting point is 00:25:22 you're going to let me in on some of these secrets? Oh, absolutely. Okay. Absolutely. Because I actually have to book a flight to Kauai soon. I'll do it for you while I'm here in Miami. Done. Yeah.

Starting point is 00:25:30 Here? Yeah. So that's actually something that Robert Winsley and I are partnering up on is a travel concierge service. Yeah. You know, like for the top InvestLift clients, for our friends and colleagues that are traveling. Like me, I'm doing a shit ton of traveling now domestically. I think the rest of the people can pay you, right? And of course, yeah.

Starting point is 00:25:49 Hey, if you want to concierge, we'll literally book everything for you, right? There are some qualifications as far as like spending, credit cards, credit. You have to qualify for this service, but we will literally tell you, just like I did with you, hey, you need these cards. Apply for these this way. Once you have them you need to spend them these wet this way oh you have a trip coming up great you text this number we're gonna call it alfred like batman batman i love that right so you're gonna text alfred and then we're just gonna send you back a whole itinerary of here's your trip so i give you like this is real time i need to book a

Starting point is 00:26:25 basically a week-long stay in kawaii in november i would tell you the dates i would tell you what credit card points i have where or even give you access to them we'll know all that you just go you don't need to tell me anything except for the trip that you want to take because it's kind of a three-step onboarding process one an application once you're in you're in and then two is basically an onboarding we'll have all your information so like you're we won't have like your bank account information right but like chase and amex they have separate portals of course right my bookkeeper has all the portals you can see everything it's so we have that we know how many points points you have and we'll be able to leverage everything. You just simply put in a travel request form and say, hey, Scotty, we want to go here for a week long.

Starting point is 00:27:11 Here's what our preference is. And then we book it, send you back the itinerary. This is great. So you will be able to help people actually understand the point scheme. Because I think it's underutilized, not just in real estate investors i'm just saying in general people don't they get credit cards because they just get credit cards right and in to some extent i'm that guy meaning i fly american a ton so i have three different american airlines credit cards because they kept giving me like 60 000 free points when you spend the first three grand i I'm like, I spend three grand a day.

Starting point is 00:27:45 All right. So that's done. So I just kept applying because I got free points. While there's some goodness to that, you're just saying it's not really the right way to work this system because I can get just a J a chase card. That's not connected American. I get way more points. You're able to use those points on different platforms and i can get 4x what i

Starting point is 00:28:06 would be doing one for one on exactly so i don't have any airline cards right so i do have hotel uh you don't want to go after like airline and hotel until you're chasing status right so for example like we've got the platinum everyone really has the platinum and they think it's super baller having the platinum and like i i laugh when people throw that down on the table it's like well you know what you're getting one point for dollar i'm throwing my gold where i'm getting four points right so but with the travel cards the way to travel hack is being able to like manipulate the points and send them out to obviously get more value out of them um but with like specific airline hotel cards they're locked in so you have american you cannot use those american airline points anywhere outside

Starting point is 00:28:53 of american airlines right right so you're kind of glued there but if you used your gold your amex and you had all those points within your um you know your your portal, you can transfer those out to United anywhere. Anywhere. And to your point, I wouldn't want to do it through American. I would do it in a different, I don't know how you make all your magic work, but essentially you say,

Starting point is 00:29:14 Justin, you have a million five Amex points. So I think I'm somewhere around there. I don't even know where I'm at. I'm going to go book you on United to Kauai. Don't worry about it. But it's probably not going from amex directly to united is that correct um it might it might go to a partner um so for example um i have most of my status and relationship with united sure um so my trip overseas was through

Starting point is 00:29:41 united but i flew with klm so air france got it yeah yeah right so it's like they do partner up um yeah and that's another thing is just being aware of transfer bonuses so what is today the first so yesterday was the very last day to be able to transfer chase points to klm so air france for 25 bonus so if you had 100,000 points in Chase and you transferred them over to Air France, you would now have 125,000 points. Now remember, mine and my wife's trip flying KLM, $30,000 flight was only 144,000, give or take, or 174, something like that. So there you go. You start to realize the, the value of the points when they're transferred and manipulated. So when you can do

Starting point is 00:30:30 that, now you're really doing a second level of hacking, which is like, there's transfer bonuses that if you know, you're going to Kauai and you would say, Justin, we have until the end of April, right? Today's May 1st, transfer this a hundred grand over to KLM because we're going to book you on KLM to Kauai. You're going to get for the a hundred grand, you're getting $125,000 or 125,000 points. Yeah. Knowing that kind of stuff is a second level. And you would just tell your client, Justin, you got to do this now because this thing is. So real world scenario, this is what I would do. And this is like what I did with my wife because our next big month long vacation is going to be Switzerland. Okay. Can you go bring us back some watches, please?

Starting point is 00:31:08 Absolutely. It's so hard to get out here. I know. I know. Get me the damn new LeMans. I need it. Okay. I'm going to go find the meteorite. Done. I'll find yours. You can get your meteorite. I'll get the LeMans. Say less.

Starting point is 00:31:17 Done. Awesome. Yeah. Winsley and I have a little Switzerland date going on. So we're going to go buy watches together. I'll pick yours up. I'm actually not joking. On a 0% interest zero percent card yes and then you'll get the points enough the point in cash yep yep yes hacking guys right dm me no but um so it's like i said rachel hey um are we going to switzerland this year because there's this transfer bonus going on right now and this is exactly what i would do with like my clients um so we had to sit down and talk this is what i would do with you um hey because klm in air france it's good for like europe or middle east okay so i'd say justin are do you plan on going

Starting point is 00:31:54 to the middle east or anywhere in europe at all this year if not then we're gonna keep our points in chase if so we're gonna transfer these out for this bonus you don't have to plan a trip or anything but we're just going to park them over there for a 25 bonus that's right and with us i was like i'm i'm traveling literally every other weekend for like events and stuff like that this year let's not travel heavily out of the country let's just focus on this this year and um so we didn't end up transferring another thing a, a lot of people are, I'm going to like a lot of events and I have a client like, Hey, Scotty, will you, will you book a trip from, you know, Houston to Cancun? I'm like, no, no. So here's what I do when I'm flying domestic, I pay for all my flights. Okay. So if you're flying domestic, fly with your preferred airline, right?

Starting point is 00:32:46 That way you're stacking point and use the correct credit card. So, for example, from Vegas to Miami, I flew American. But you paid for it. And I paid for it. With the right credit card. With the platinum. Because I'm probably getting two, three, four X the points anyways. So five X.

Starting point is 00:33:01 Okay. I used the platinum, my business card. Yeah. Platinum within thes. Okay. I use the Platinum, my business card, Platinum within the portal. Okay. Not in American Airlines, but within the Amex portal. Okay. So I log into the Amex portal.

Starting point is 00:33:12 I've never done that. Got it. Okay. Now, you might see a little bit of a dollar difference. It might be a little bit more expensive, maybe $40, $50, maybe $100, whatever. But outside of the portal, you're getting 3X points But outside of the portal, you're getting three X points. Inside of the portal, you're getting five X points for $40 more bucks, whatever. Dude, there are so many hacks.

Starting point is 00:33:31 This is wild. I thought I knew the game. So there are just so many ways just to continuously rack up points. So kind of getting back to real estate just because we could go on this deep dive. But if someone is in real estate investing or wants to or is aspiring, the first point you'd make is charge it to the game and get a coach

Starting point is 00:33:52 to teach you what really to do. Yes. So you can get to the front of the line so you can learn what really actually works to get a deal versus trying to do it on YouTube University. Use the right credit cards on something like that. Yep.

Starting point is 00:34:07 But even then, if they don't have a business credit card, would you make them go do that? Or could they go get a new personal credit card and get 0%? Like when you want them to go get more cards, no matter what. Absolutely. Absolutely. Because I mean, I've got, I think now over 70, um, yeah and it's like you I doubt they have more than me so I'm always going to encourage them to get more um is there a point of like it's going to hurt you no absolutely not absolutely because the more credit lines the better your credit profile absolutely and I was when I was broke I had a credit coach right because he had to get me back going he's like what people underestimate is the credit profile. They think the credit score is the best thing.

Starting point is 00:34:48 But if you have no profile and you have an 800 credit score, banks still won't lend you money because you have no history of borrowing it or giving it back. Yep. Yep. We're actually helping someone right now. He was using personal credit. We stopped him from that.

Starting point is 00:35:04 His scores are around 760 now, and he's still getting denied on business credit because he only has one personal credit card. Right? So it's like, hey, we have to follow the process and the blueprint that I've laid down, and we have to slow down to speed up and go focus on step one, and that's your personal profile. Because you, the business business owner are the foundation of everything so so you cut a check to get a coach learn how to do it go out there and do it what are the reasons and what strategy should they be using with even like i know you told me to go into a certain bank here in florida open up a bank account. What strategies should aspiring real estate investors or even active real estate investors be doing with all of this? So I think the best strategy

Starting point is 00:35:53 would be to not just like application dump too many cards. Because for example, like you, we could go out and get 20 cards right now, but we don't need 20 cards. The whole point of having credit is to have that risk tolerance where it's like, okay, if fucking COVID happens again, do I have more available credit over here? And if not, can I go get access to that credit and it still be on 0%? So for example, if that $80,000 Chase card is completely maxed out, now the, the, the interest rate is over. It's like, what do I do? Oh shit. What if I can't pay that off? Well, guess what? I can go out and get access to more 0% interest and roll that balance over to that new 0% interest. Right. So everything can just continue rolling over to 0%. So the strategy

Starting point is 00:36:43 for real estate investors would be obviously stop using your personal credit, start leveraging business credit, but in a very strategic way. It's, it's, I think this is one of the most important things that people, it's really hard to see on the surface is if you apply out of order, then it can really restrict you on what you can get access one, two years down the road. And that's why it's like, I built the perfect credit stacking blueprint. And I'm actually going to be sharing that tomorrow. And if you're still around on this podcast, you can actually get access to that here. Oh, they're around. Awesome. Hit up Scotty. So first thing they need to do is build business credit.

Starting point is 00:37:27 First thing there is go get the trade lines, which is the Best Buy, Home Depot, Quill, etc. Then what business credit cards or lines of credit should they be? So the first one that I'd recommend going to is always build a relationship with Chase Bank. Chase first. Okay. To me, they have the best credit cards out there. They may not be the best bank, but the best credit cards. Remember, we're going after the credit cards.

Starting point is 00:37:51 That's right. All right. So it depends, right? So for someone in like our position, 0% may not be the focus, but someone just starting out, 0%. So you have to make that decision. Do you want more rewards for what you're already spending money on? Great. Marketing, cool.

Starting point is 00:38:07 Go get the Inc. Preferred card. But if you are a 0% interest person right now, go after the Inc. Unlimited card. But remember, there's bank rules that you have to be aware of. For example, there's three Chase credit cards. And of course, the Premier, which is a charge card, just like a Platinum. But the three cards are the Inc. Unlimited, Inc. Preferred course, the Premier, which is a charge card, just like a Platinum. But the three cards are the Ink Unlimited, Ink Preferred, and the Ink Cash. You, Justin, can only have two of those three. All right?

Starting point is 00:38:31 So you have to pick and choose between do you want more rewards on the marketing spend, the Preferred, or do you want the 0% interest? Got it. So you'll pick one. Three months down the road, you can go get that cash, that Ink Cash. So I get two of the three. You get two of the three, you get two of the three. But if you had a wife that was equity partner or a business partner, let's talk about double stacking. All right. So which card did you pick the unlimited or the preferred? Unlimited. Okay. So you've got the unlimited and the cash. All right. Your partner is going to

Starting point is 00:38:59 spend PPC marketing. He's going to go get the preferred same day. Yeah. Same business. Okay. So now you both literally just got the preferred and the unlimited. And then three months down the road. It's a good view result to have my wife on my LLC docs. Boom. I'm thinking about adding mine too. I don't believe in it, but I might do that just for this one example. Yeah.

Starting point is 00:39:19 Yeah. So, yeah, I'm a sole owner of all my companies. So it's like, I get so excited when people have like their wives or business partners. I'm like, hell yeah, we're literally going to double and triple the amount of funding we can get access to. That's insane. Yeah. This is wild.

Starting point is 00:39:33 Dude, here's what I want. I want to stop here. Why? Because I want them to reach out to you. I want you guys to all go get him on Instagram, Scotty Dragalis, YouTube, Scotty Dragalis. He gave you some words to drop in his dms he has my business i'm his client if it's good enough for me he's damn sure good enough for you guys i appreciate you being here man let's go help people understand credit in a bigger much bigger

Starting point is 00:39:55 way than they do now absolutely let's do it all right y'all that's it for today we will see you on the next episode peace

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The Science of Flipping - How to Use Credit Cards to Fund Real Estate Deals | Scotty Tregellas

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