Real estate investing can require a lot of capital. Even if you are starting out with a house hacking experience, you’ll notice that the costs can add up quickly.
Whether you are doing a house hack or working with dozens of rental properties, you should expect to spend a good chunk of change. The major costs you might immediately think of include renovations. However, other costs such as insurance and taxes can add up as well.
Of course, most of these costs are unavoidable. But if you don’t think strategically about how you pay for these expenses, you are missing out.
Credit card rewards offer a way for real estate investors to earn extra value for the expenses they will inevitably have. It’s all about maximizing credit card spending and credit card rewards. Let’s take a look at what these programs have to offer.
A breakdown of the types of credit cards on the market
Before you can choose which type of card will work best for you, it is important to see what is available. We will take a closer look at the types of credit card rewards that you can take advantage of below.
Travel rewards cards for real estate investors
Travel reward credit cards are fairly self-explanatory. In exchange for your spending, you will receive travel rewards points. As you put more spending on a particular card, you will be rewarded accordingly. Plus, most premium travel rewards credit cards offer welcome bonuses that can grant you thousands of points after hitting a spending threshold.
These points can be redeemed for travel in four different ways.
1. Rewards portals
Rewards portals are a place where you can redeem your points for travel. Some credit card rewards programs will require that you redeem your points for travel purchases directly through their portal.
A few of the popular rewards portals include:
- Chase Ultimate Rewards Travel Portal. This portal allows you to spend Chase Ultimate Rewards points for a variety of travel purchases such as flights, hotels, car rentals, and experiences.
- Citi ThankYou Travel Center. You can redeem your Citi ThankYou points through their Travel Center. Although you also have the option to redeem these points for statement credits that could potentially cover your travel expenses, the portal offers a better value.
- American Express Membership Rewards. You can use Amex Membership Rewards to score paid for travel.
These represent a few of the best travel rewards portals. With rewards portals, you can conveniently redeem your points for travel with very little hassle. However, you may get more value for your points if you choose to transfer your points to a travel partner instead.
2. Erase travel on your statement
With certain rewards points, you can erase travel expenses on your statement. You will make your purchase upfront but when it comes time to pay the bill, you will simply redeem points instead.
One of the best options for this is the Capital One Venture Rewards. You will have the option to use their ‘Purchase Eraser’ feature. After signing into your Venture Rewards account, you can redeem your points for any eligible travel purchases made in the last 90 days.
3. Airline specific rewards cards
Airline specific rewards are less flexible rewards because they are tied to a single airline. However, if you are a frequent flyer of a certain airline then it might be worth signing up for one of these cards.
Here are a few options:
- Southwest Rapid Rewards. Southwest Rapid Rewards offer an easy way to rack up points for domestic flights.
- American Airlines AAdvantage program. American Airlines offers this program to frequent fliers and credit cardholders.
For each of these, you will need to redeem your points directly with the airline.
4. Hotel specific rewards cards
If you enjoy high-end hotels for your travels, then hotel-specific rewards cards are a great option.
One of the most popular cards is the Marriot Bonvoy Brilliant American Express Card. You can earn 75,000 points after spending $3,000 in the first 3 months. However, you’ll also score a free night and a $300 annual Marriot statement credit. It is a great option for those that want to Other types of credit cards and their rewards for real estate investors
Travel rewards credit cards are not the only option. Even if you are not planning to use travel rewards, there are other rewards that real estate investors can take advantage of.
General rewards points
General rewards points can be redeemed for a variety of useful things.
For example, some rewards programs offer cash back as a reward for your spending. You could pour that cash back into your real estate empire or use it to treat yourself.
Other rewards programs allow you to redeem points for gift cards. It can be a fun surprise as a reward for your spending.
Standard credit cards
Standard credit cards may not offer a lot in terms of rewards. However, they may offer lower interest rates and attractive balance transfer offers.
If you are managing debt, then this may be more useful than a free vacation. maximize their real estate spending.
Bonus! Travel Rewards Credit Cards for Business Owners
As a real estate investor, you gain access to a slew of credit cards specifically designed for business owners. Not only do you have access to personal cards but also business credit cards. Business credit cards can offer attractive travel rewards features.
You may have the ability to sign up for business credit cards. Typically, business credit cards offer a higher bonus of welcome points. However, you usually have to spend more to hit these signup bonuses. This might be easy if you are working on a renovation through your real estate business.
If you are serious about scoring travel rewards, then business credit cards can be a great way to hit your goals quickly.
The bottom line
As a real estate investor, you will likely spend a lot over the course of your investment career. By taking advantage of credit card rewards programs, you can stretch your dollar a little bit farther.