Seed Capital, LLC For Funding?

20 Replies

Here is an email I received from Seed Capital, LLC regarding funding for my real estate endeavors.....Anyone ever use them?....any stories about them---any good....decent company.....

After looking at your credit report you qualify for our $50,000 Guarantee package. Your estimated approval amounts will be $70,000 -$80,000+in revolving credit card lines.

Please review all this information and get back to me with any questions by next week, if you elect not to go forward with our program let me know so I can shred your information or keep you on file for contract coming in soon.

Here is the link for the contracts that you will need to print out and review.

http://seedcapitalcorp.com/dwnld65OP.html

This is the link to get to the two contract links and support paperwork

Then if you have any questions to let me know a good time to call you to go over with you any questions about our program. The charges that are written in the contracts are:

  1. $495.00 credit review fee which is due when all notarized contracts and support paperwork has been returned to us viva scanned emailed or faxed back to us at the fax number below. This puts you under contract and allows us to start working for you like disputing balances that have not updated yet. We will look into getting this fee moved to after funding for you.
  1. $3,000.00,Credit Establishment Fee: this is due once we have started the application process and we have gotten you to at least $50,000 of approved lines, we will not stop at $50,000 in approvals we will get you as many approvals as your credit profile will allow or what you are qualified for out of your 100+ data base of lenders.
  1. $3,000.00 Consulting Fee, Optional, if you decide you would like to use this added services this is charged 7 days after the credit establishment fee has been charged there is no requirement for it in order to get your funding . http://www.seedcapitalcorp.com/forms/Seed_Capital_Consulting_Description.pdf

This link will detail what this covers for your consulting agreement.

  1. $100.00 Miscellaneous Fees: this $100.00 budget will cover the fees associated with freezing a credit bureau to keep banks from pulling more inquiries then they should, in order to protect your credit as much as possible. The bureaus charge $5-10 per bureau lock (fees vary from state to state). Typically we will have to initiate no more than 2 or 3 locks. It is very rare that the bureau freezes result in more than $30-40 total.
  1. $29.95 per month for Credit Nav: our underwriting team will need access to this site for approximately 60 days in order to monitor inquiries and bank approvals. Once we are done with the application process we encourage you to keep this membership active as it is a very valuable tool to monitor your credit. However, after 60 days you are welcome to cancel at anytime if you so desire.

This link will give you an overview of how our process works and the time frames you can expect: http://www.seedcapitalcorp.com/forms/Seed_Capital_Process.pdf

This link provides a welcome letter and in depth description of our company and process: http://www.seedcapitalcorp.com/forms/client_welcome_letter.pdf

This explains why credit cards are the absolute best financial tool possible for a small business: http://www.seedcapitalcorp.com/forms/Financial_Tools_for_Small_Businesses.pdf

Sincerely,
Erin Thomas

Mark,

Not sure if this is the same company but I have had communications with a business with the same name before that never went anywhere due to their credit requirements.

Its been my experience that any reputable lender will not as for upfront fees they will take any fees out of the proceeds of the loan or line of credit once it has been supplied to you.

Ultimately its your decision, but for me it seems they are asking for an awful lot of you upfront without any promise of delivering.

Kevin Rizzo

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It's legit. They will get you additional credit cards that have 0% interest that range from 15-24 months. You can pull 90% of the available credit off the cards as cash and deposit the cash into you checking account to use at 0% for whatever the period is set at. I've seen some complaints that people are now stuck with all sorts of debt and high monthly credit card minimum payments. Well duh, if you are going to use the credit and then yes you have to pay it back. Don't do it if you don't have a solid plan to repay the debt within the 0% interest time period. However if you are confident you will be able to pay it back, it is a great tool to help when you need cash or credit to get started.

I had a similar question about WCAP Financial. I believe from what I have read that they are the same company or was once the same company. @Erica Nagle Thanks for posting!

I have used them and they will get you more credit. They don't charge the $3,000 until they have gotten you $50,000 in credit. You also don't have to do the next $3,000 if you don't want to but if you want to pull cash off then cards then I'd suggest doing the next $3,000 and they will help you step by step.

I pulled this from ripoffreport.com...any truth to it?

I was contacted by Daeus Financial. They sold me a package for $6495 promising 0% interest on my initial credit of up to $100K for the first two years. What I got with that money was a call from Seed Capital promising me over $100,000 in credit for my business. I did get the $100K of credit, on numerous PERSONAL credit cards with 0% interest for a year, which cost me over $9000 in fees from Seed Capital. I have excellent credit (until now) and did not realize that all I would end up with is over $800/month in credit card payments, no business credit, and a looming debt at the end of 12 months. I did not want $100K in credit in the first place. I specifically asked for less than $50,000 to help with my business start-up costs. If I had known that all they were going to do for me was get me a bunch of personal credit cards, I could have done that and saved over $9000.

Lesson learned the hard way!!!! Please be aware of companies like this one. Be very careful before signing any sort of contract, especially if they have your credit card on file - they will charge fees without your consent because you signed the initial contract allowing them to do so. What they did to me is extremely unethical and I don't want anyone else to end up in my situation.

This report was posted on Ripoff Report on 09/18/2013 05:02 AM and is a permanent record located here: http://www.ripoffreport.com/r/Seed-Capital/Henderson-Nevada-89074/Seed-Capital-Left-me-with-949500-in-debt-and-numerous-credit-cards-in-my-name-Henderso-1085398. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report.

Anyone that gets involved in these types of programs need to do their due diligence! That being said this program will work great for people that understand how they got the money and how to best utilize it! To me it gives you the freedom to make your own decisions as to how and what type of property to use the money for! Maybe not for everyone but it's only a ripoff it you let it be!!

...Or if they mess up your financing.  They advertised 0% but after doing the liquidation, 26000 of my funding was and continues to be charged ~24%.  It seems that the 0% is only for purchases, and not direct deposits, as they advertise.  The rest remains at 0% but now I'm scrambling to get out of a project, instead of waiting for my price.

 Its an unfortunate situation, and they claim to have parted ways with the employee who screwed up, but they haven't done anything to resolve the situation either.

Could you afford to do your deals if it cost you 24%?  I'd steer clear of these guys.

The only way the interest remains 0% is if you can continue to stay on the promotional periods for the balance transfers. Even then, each balance transfer is 3% of transfer amount.

Many promotional periods are 30 - 60 days after opening the card, and the 0% interest lasts for 12 - 18 months. However, you do pay some 1% or so of the balance each month towards principle.

@Mark Rogozinski just saw this post. 

Glad to hear you are doing you due diligence to fully understand this company. I have recently started working with them and here is my understanding:

What they do:

Seed Capital works with real estate investors and business owners to get them approved for credit cards. Their special ingredient is having access to a special database that can predict what income, credit score and other factors are required for you to get approved (for the maximum amount). They also help you get your credit looking as good as possible and only have you apply to cards that you have a high chance of getting approved. All of this is done as a done for you service.

Potential issues / concerns:

It seems a number of people have expressed concerns about the credit cards and how they work. Also, the payments that you need to make to the credit cards. Here are my thoughts:

- Credit cards are credit cards - Seed is simply helping you get more credit. It is no different than the credit cards you already have. Some have high interest rates and require you to pay down a big piece of your line each month and some have lower interests rates. Seed's goal is to get you promotional offers that start at low interest rates. This does not change the actual interest rate that is after the promotional period

- Debt is debt - You cannot blame Seed if you took on debt that you were not ready to pay or did not have reserves to make the payments on. If you are taking on any debt be aware of the full consequences and ask questions upfront.

Final thoughts:

If there is any way I can help you with your real estate projects or to better understand credit, please let me know or send me a direct message. 

Hello @David G. . How are things going with Seed Capital now? Have you received funding? Was it a personal or business credit card? Thanks. 

If you can't get traditional funding from a local bank, there is probably a good reason.  Either you are not as smart as you think you are, your deal is not as good as you think it is, or both. Be careful with credit cards.  It is the number two reason that people file for bankruptcy.

Run Forest Run! Guys be careful with credit cards. They sunk me 15 yrs ago doing this same thing. Buying houses on credit cards. They are worse than hard money loans. 25% is crazy to me. Charging you 7 grand to secure is crazy. If you have a deal and have to have the money find a hard money guy. Get in get out. Even when with thier fees you'll be way ahead AND those loans will hold you accountable. Unless your a very disaplend

Guess I shouldn't type and drive it shut me off. Just be careful guys with those credit cards. 

Hopefully OP did not go through with this, it's over a year old. Seemed suspect, too many upfront fees. 

@Sim Hamilton They have help me to get a few cards. I am in their one year program, so we are working through a couple things in our business (like new tax returns) that will allow us to get more credit before we do the full push. Happy to keep you in the loop if you want to DM me and keep in touch.

@Anthony Dooley Completely agree, don't take on more credit than you can handle. It is much safe to grow incrementally and only buy what you can afford

Also, as a point of clarification Seed only charges you if they can guarantee at least $50k in credit. That being said, I agree with the general sentiment that is very important to be careful with credit. It is not smart to use credit for down money or take balance transfer to get cash. It is much better to use credit for renovation money or reserve money (in case you go over budget).

I have a question to ask about Seed Capital. Why they lie on the applications with false information on personal and business income? They say it is projected income. There is no whare on credit card applications say use your projected income a pretend income thinking you going to get that much with in a year in real estate fix and flip. 

@Brenda V. There are two approaches by business owners and investors. Either you can paint the picture of the future and your optimism or you can focus on where you are in the present. Ambitious people project the future on today and take steps to get there.

In general banks will only lend money or provide credit to people who do not need it or who are a very low risk of losing their money. Seed Capital is doing their job to help you meet the bank's criteria. If you do not personally feel that is an approach that agrees with your moral compass or way of doing business, you should not be obtaining credit from credit cards or getting loans in general.

I am happy to help you think this through for your specific situation. Feel free to send me a DM if you have questions. 

Originally posted by @David G. :

@Sim Hamilton They have help me to get a few cards. I am in their one year program, so we are working through a couple things in our business (like new tax returns) that will allow us to get more credit before we do the full push. Happy to keep you in the loop if you want to DM me and keep in touch.

@Anthony Dooley Completely agree, don't take on more credit than you can handle. It is much safe to grow incrementally and only buy what you can afford

Also, as a point of clarification Seed only charges you if they can guarantee at least $50k in credit. That being said, I agree with the general sentiment that is very important to be careful with credit. It is not smart to use credit for down money or take balance transfer to get cash. It is much better to use credit for renovation money or reserve money (in case you go over budget).

Hey David,

its been about 6 months and I understand you're in a 12 month program. how are things going? just looking to get an update. thanks.

Kudos,

Mary  

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