Archive List for Credit Card Arbitrage

Round #3

Strategy For the 3rd round of the credit card arbitrage investment strategy, I am going to invest in a long-term and high-yield litigation portfolio through YieldStreet. In theory, a 13% ROI over 12-months with a borrowing cost of 3% will generate 10% profit. Total Balance Transfers: $202,970 Date Credit Card Promotion Cash Balance 01/13/2018 Discover […]

Round #2

Strategy My first experiment ended with success. I balance transferred $219,497, invested in DLI Fund, and earned $17,951 net profit. For the 2nd round, I am going to invest in real estate crowdfunding for short-term and high-yield investment opportunities. Groundfloor will be my primary platform, and iFunding for backup. In theory, a 16% ROI over […]

Round #1

Strategy My original plan was to invest in Lending Club using funds from credit card balance transfers. However, after investing $100,000+ over a year, I realized this platform was not suitable for my strategy due to the following reasons: Cash Drag Tax Inefficiency Liquidity For the investment of over $100,000, opting for fund route may […]

Credit Card Arbitrage

According to Investopedia: Borrowing money at a low interest rate from a credit card then investing that money at a higher interest rate to try to make a profit. The lowest risk and most common type of credit card arbitrage entails taking advantage of a 0% introductory APR balance transfer offer to borrow thousands of […]