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 More | 13m/0%/2% | $18,000 | $18,360 |
| 01/21/2018 | Chase Slate | 16m/0%/0% | $11,970 | $11,970 |
| 02/06/2018 | U.S. Bank Cash 365 American Express | 15m/0%/3% | $24,000 | $24,720 |
| 02/10/2018 | Alliant Credit Union Visa Platinum | 12m/0%/0% | $20,000 | $20,000 |
| 02/11/2018 | Chase Ink Business Cash | 12m/0%/2% | $10,000 | $10,200 |
| 02/13/2018 | Discover it | 12m/0%/3% | $18,100 | $18,643 |
| 02/13/2018 | NFL Extra Points | 15m/0%/3% | $9,700 | $9,991 |
| 03/01/2018 | Citi ThankYou Preferred | 15m/0%/3% | $26,200 | $26,986 |
| 03/06/2018 | Bank of America Cash Rewards | 11m/0%/3% | $19,400 | $19,982 |
| 03/08/2018 | Citi Double Cash | 8m/0%/3% | $26,200 | $26,986 |
| 03/30/2018 | Bank of America BankAmericard | 18m/0%/3% | $19,400 | $19,982 |
| Total | 12.86 months, 0% APR, 2.39% fee | $202,970 | $207,820 | |
I’ve transferred a total balance of $202,970 from 11 different credit cards. The cost of borrowing was 2.39% or $4,850 for 12.86 months.
Return On Investment (ROI): 11.27%
| Description | Net Profit/Loss | Net Return |
|---|---|---|
| Law Firm Financing VII (YieldStreet) | $27,733 | 13.66% |
| Balance Transfer Fees | ($4,850) | (2.39%) |
| Total Return On Investment | $22,883 | 11.27% |
An estimated return on YieldStreet investment over 12.86 months is 13.66%. After subtracting the balance transfer fees, my estimated ROI for this round is 11.27%.
