Sprout Financial unsecured loan funding review

Private Lending & Conventional Mortgage Advice

Sprout Financial unsecured loan funding review

Wholesaler · BOCA RATON, FL · Member since 2016 · 9 posts · 3 votes

Recently, I have been trying to take out a loan for investing in fix-n-flip and I came across Sprout financial and they are offering me $70,000 with no collateral and no interest with fees of $6500. Has anyone used this company. I don't know if its legit or not?

https://www.sproutfin.com

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Mindy JensenPro Member

BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes

@Sagar Gogia , If they ask you for ANY type of fee - some sort of "loan insurance" fee is a popular one with the scammers - then run.

[email protected]Podcast Guest on Show #261

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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
9y
If it's due to be paid back in a year, I'm coming up with 9.3% for the effective interest rate (APR approximation). If it's due to be paid back in six months, 18.6%.
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Sagar Gogia
OP
Wholesaler · BOCA RATON, FL · Member since 2016 · 9 posts · 3 votes
9y
It's for a year. But i am not sure if this company is a scam or not. i tried to check it online but couldn't find anything wrong with it. I am still a bit skeptical about it.
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y
@Sagar Gogia , If they ask you for ANY type of fee - some sort of "loan insurance" fee is a popular one with the scammers - then run.
[email protected]Podcast Guest on Show #261
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Sagar Gogia
OP
Wholesaler · BOCA RATON, FL · Member since 2016 · 9 posts · 3 votes
9y
Sprout Financial is offering me line of credit for about $60,000 on which i can take out cash or write checks upto 95% of my credit limit. The fees for getting the line of credit is 7.99%, which will be deducted from the line of credit that they give me. after 1 year my APR will be set according to my credit or they will match according to the other credit card that i have.
Should I be aware of anything in this situation? Do I need to know anything else before proceeding?
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Erik Cabral
Investor · Trenton, NJ · Member since 2017 · 97 posts · 60 votes
9y
@Sagar Gogia I'm pretty confident these guys aren't a scam. They were present at a huge training session I attended to promote their services. Did you ever end up using them? They're offering me a 100k credit line but I'm in the process of looking for local private lenders before signing up with them.
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Romeo Youkhana
Gilbert, AZ · Member since 2015 · 5 posts · 1 vote
9y
Hi, any one ever use this company yet really eager to get some answers I have a friend that was just talking about them. He said that basically they shop you around with other investors and charge you 10% upfront from the line of credit that you get offered. Just on that Your already in the hole for 10K on a 100K line of credit and from what EriK Cabral just said another $30 a month in fees.
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Al R.
Flipper/Rehabber · mount juliet, TN · Member since 2015 · 28 posts · 8 votes
9y
This is sort of like a MCA = Merchant Cash Advance, so beware of what you ask for cause you may get it for what cost? If you ask me its REAl HIGH! Theres plenty of others out there that are not doing so much marketing efforts to get your attention! SO Beware!
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Jimmy Warr
Logistics Manager · Cordova, TN · Member since 2014 · 157 posts · 32 votes
9y
@sagar How did the loan go ?
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Denise Fisher
Rental Property Investor · Bristol, TN · Member since 2015 · 29 posts · 5 votes
9y
Any one have any updates on dealing with Sprout. They say they can get me unsecured monies needed to do a downpayment on a deal, but also told me I could not pursue any financing of my own until they had completed their process. I've got a great deal, but low cash to get a loan. Looking at an 8 unit multifamily for 250K. Could use some feedback on this one..
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Bruce Edwards
Atlanta, GA · Member since 2017 · 13 posts · 9 votes
8y
Just got a call from one of the guys at sprout financial. Any updates and other fees to be aware of?
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Tom S.
Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
8y
@Sagar Gogia Sagar - any feedback on these guys? Did you end up using them?
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Bruce Edwards
Atlanta, GA · Member since 2017 · 13 posts · 9 votes
8y
Unless you can stomach them running your credit through the ringer... folks are suggesting we avoid them.
See more below:
https://www.trustpilot.com/review/sproutfin.com
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Joe Clinton
Investor · Phoenix, AZ · Member since 2017 · 3 posts · 1 vote
8y
I've just recently been awarded $5,700 through a credit card that Sprout financing requested on my behalf. In the process of obtaining this line of credit for me Sprout requested credit from several credit card companies on my behalf which had the effect of several hard inquiries showing up on my credit report. Sprout charges a one time fee of 9.99% of the amount of credit awarded to you through each of the credit card companies that they submit a request for credit through. I asked Sprout if there is any interest charged by the credit card companies for using the credit awarded to me or if there is any fee for using the account to get a cash advance and I was told that there is neither any interest charged by the credit card companies nor any fee charged for obtaining a cash advance. A few minutes ago I called the credit card company that awarded me $5,700 in credit and asked them if they have a fee for obtaining a cash advance on my account and the representative told me that there is a fee of 25.5% of the amount of money that I receive on a cash advance.
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Ramesh Nyberg
Investor · Miami, FL · Member since 2018 · 47 posts · 21 votes
8y
I spoke to one of their guys today. They didn't hide anything about the "credit score monitoring" service of $29.99/month, and said it was month to month.
So far, this is looking interesting. I'll report back as I dig a little deeper
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Kyle Hardie
Fairmont, MN · Member since 2017 · 5 posts · 3 votes
8y
I spoke to a representative at Sprout today as well. Just as said above, they obtain different unsecured lines of credit through credit cards. They charge a 9.99% fee of your approved amount. So if you are approved for $50,000, there's automatically a $5,000 balance on your line of credit you are required to pay back. This will be at 0% interest for 12-18 months. I asked about the lines of credit and getting hit with inquiries, he said it would affect your credit a little bit at first, but after the lines are open, and you start paying them back, it would actually help your score (that's what he said). I also asked him if there are any extra fees or interest charged from the companies that issue credit, he said no. I'm in the process of getting approved. He said he can limit the number of inquiries and dollar amount of approval. We'll see. Does anyone have this same experience?
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Kyle Hardie
Fairmont, MN · Member since 2017 · 5 posts · 3 votes
8y
Joe Clinton, what was the result of your line of credit, did you pay the fees? Thanks.
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Jason Dale
New Milford, CT · Member since 2017 · 25 posts · 6 votes
8y
Been looking into this company, the trustpilot link above is filled with 5 star reviews by users with a single review. Probably fake accounts to boost their rating.
Did a whois on their domain, it's a GoDaddy site and the registrar is Domains by Proxy (hides the true registrar information). Not that this is particularly BAD but it hints at less professionalism and something to hide.
2 Reply
Boone Nerren
Member since 2017 · 2 posts · 0 votes
8y
So what other companies are trustworthy while offering better overall blended rates/costs?
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Aram L.
Long Island City, NY · Member since 2018 · 36 posts · 6 votes
8y
Thinking about using them within the BRRR method - so having them refi at a 20-30 yr fixed. Anyone use then for that?
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Chris MasonPro Member
Moderator
Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
8y
Originally posted by @Boone Nerren:

So what other companies are trustworthy while offering better overall blended rates/costs?
Your bank or credit union might offer personal lines of credit. I've also seen people call all their credit cards and request increased limits every 6-12 months with surprising success.
2 Reply
Caleb Heimsoth
Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
8y
So all they do is open credit cards for you and charge you a ten percent fee for that? You can probably get that yourself if you already have good credit
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Boone Nerren
Member since 2017 · 2 posts · 0 votes
8y
Thanks Chris and Caleb, I am in a solid enough credit position to pursue on my own. I appreciate your comments.
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Stephanie MedellinBusiness Member
Mortgage Broker · CA · Member since 2014 · 1k+ posts · 644 votes
8y
Yeah I'm not really following why you would need a company to open credit cards for you - it's something you can do very easily without any additional fees!
[email protected]
Stephanie Medellin, Loan Factory58 Reviews
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Tosin Oluwatoye
Rental Property Investor · Drexel Hill, PA · Member since 2017 · 21 posts · 0 votes
8y
Makes absolutely no sense!!!
Those fees are ridiculously high and like many on here have said, you can shop around yourself and save a ton of cash!. Typically, I'm not a fan of companies that shop your credit around. those multiple hard inquiries(which you have no control over) will come back to haunt you!.
I've had this company call me and tell me to just fill out the pre-qualification application which costs only $1. No disclosure on the monthly fee or on the upfront 9-10% fee on any of ur LOCs.
Run!!
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Kyle Hardie
Fairmont, MN · Member since 2017 · 5 posts · 3 votes
8y
All these comments are correct! Stay away! If you need cash, you can ask your local bank about secured or unsecured Lines of Credit. These companies like Sprout make everything so confusing but also make it sound like a good deal. I was stuck with a fee, two credit cards, and 4 hard inquiries on my credit. My credit has since come back a little bit, and over time will recover - takes about a year for those hard inquiries to disappear. Hard lesson learned. They also said if you "interfere" with the funding process, you could get charged additional fees. Of course this was after the fact. So if you freeze your credit, turn down one of their credit cards, etc. they will hound you until they can obtain funding. These Loan Sharks were through Connected Investors.
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