Sprout Financial unsecured loan funding review

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Sprout Financial unsecured loan funding review

Sagar Gogia
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
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.

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  • Jason Ray Richardson
    Rental Property Investor · Brookhaven, MS · Member since 2017 · 186 posts · 108 votes
    8y

    Essentially you are paying them to shop out credit cards for you. The money you are getting are balance transfers from the credit cards (depending on the size of your loan as to how many you will need) to your checking account.

    0Reply
  • Edgar Alvarez Jr
    Flipper/Rehabber · Member since 2018 · 2 posts · 0 votes
    8y
    @Erik Cabral I am curios if it is possible to get 100% financing on Fix and flips or BRRRR startegies in NJ? My Name is Edgar Alvarez and I am in Belleville NJ I am truly motivated and ready to go in on a few properties. Any advice will be greatly appreciated !
    0Reply
  • Adam Horowitz
    Lender · Fort Lauderdale, FL · Member since 2018 · 22 posts · 15 votes
    8y

    I cannot speak to this individual company, but to a common theme on this thread that "anyone can do this themselves". I know several people that wanted to DIY and they end up with $30k in credit, a FICO hit of 30 points, and extra fees from the credit card companies. 

    Professional companies will get qualified investors up to $250k in unsecured funds. I have personally recommended to several people from BiggerPockets with success. It is just a fact that you will not be able to do this yourself...unless you have some competitive advantage that I am unaware of.

    1Reply
  • Casey Powers
    Las Vegas, NV · Member since 2018 · 405 posts · 474 votes
    7y

    Sprout Financil is crap. They claim you’ll get $$$$ in “unsecured lines of credit” with 0% interest for 12-18 months. 

    I spoke with one of their reps who was super aggressive and very careful not to ever say they would be applying for credit cards on my behalf. He would only ever say “unsecured lines of credit”, even when I specifically asked if they’re credit cards. 

    Of course they’ll need all your personal info to do that, and they won’t tell you which companies they’ll use first, so you can’t research them or decide if those are the cards you want. They won’t tell you about the large cash advance fees the CC companies charge. 

    So basically, avoid. You can apply for 0% intro-rate credit cards on your own. No need to pay someone to take all your personal info (and no telling what else they might do with said info). IMHO, Sprout Financial is just barely a notch above total ripoff. 

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  • Mike G.
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Casey Powers

    Sprout Financil is crap. They claim you’ll get $$$$ in “unsecured lines of credit” with 0% interest for 12-18 months.

    I spoke with one of their reps who was super aggressive and very careful not to ever say they would be applying for credit cards on my behalf. He would only ever say “unsecured lines of credit”, even when I specifically asked if they’re credit cards.

    Of course they’ll need all your personal info to do that, and they won’t tell you which companies they’ll use first, so you can’t research them or decide if those are the cards you want. They won’t tell you about the large cash advance fees the CC companies charge.

    So basically, avoid. You can apply for 0% intro-rate credit cards on your own. No need to pay someone to take all your personal info (and no telling what else they might do with said info). IMHO, Sprout Financial is just barely a notch above total ripoff.

    Yikes!!! I think ill steer clear of them. thanks for the details about how they do business.  

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  • Mike G.
    Real Estate Agent · Las Vegas, NV · Member since 2016 · 589 posts · 275 votes
    7y

    @Kyle Hardie

    These Loan Sharks were through Connected Investors.

    I made the mistake a while back of creating an account, boy what a mistake it was. I still get spam mail from them and ive unsubscribed from their email blasts i dont know how many times.  Its spam central.. . .  

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  • Jason Ray Richardson
    Rental Property Investor · Brookhaven, MS · Member since 2017 · 186 posts · 108 votes
    7y

    I made the mistake of using them. Smacked my credit score with all of the inquires. I ended up getting a bunch of small credit line credit cards (one as low as 500). Then after they charged me I had one credit card issuer cancel my card because they found out they had applied for it for me. I should have stuck with the old adage that if it sounds too good to be true it probably is. They didn't even get the line that they "pre approved" me for

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  • Albert Bui
    Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
    7y
    Originally posted by @Stephanie Medellin:

    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!

     Nice Stephanie you switched to C2 corp? 

    0Reply
  • Account Closed
    Las Vegas, NV · Member since 2018 · 100 posts · 140 votes
    7y

    @Adam Horowitz

    Please advise who these professional companies are who can secure suitably qualified individuals ( I’m reading as code for high FICO ?) higher limits than can be attained by applying for business cards and lines yourself......I’m at a loss to understand who these mystery secret credit card companies are that are so generous with their limits......that people keep alluring to as if it’s some exclusive gentleman’s club........but nobody ever names ?

    0Reply
  • Ronald Barnes
    Member since 2018 · 7 posts · 6 votes
    7y

    Sproudt is a company that applies for credit cards on your behalf.   Whatever credit they get for you they charge a percentage.    The credit cards they apply for have the introductory 0% for purchases, so they word it as if the interest rate on the line of credit is 0% for 12-15 months (depending on the card)     They are very misleading and they know it.    They really want you to think you are getting a line of credit you can draw from and write checks against.    But its just credit cards you could apply for on your own.     Their value is if you didn't know that Chase, Bankof America, Discover, Citibank existed, but if you know they exist their value is close to zero.         But if you have good credit and absolutely need cash for that golden deal,   then it may be worth it going the credit card rout.     They also have some creative ways to get cash off of the cards as purchases where you pay a 1-3% fee,  but its treated as a purchase.   Some cards have introductory cash back amounts in that percentage range so you can break almost even.      Are the a flat out scam?  The answer is no,  a credit card can technically be considered a line of credit.    But they know that is not what the person who contacts them is looking for.     Lastly,  you credit is going to take a big hit and have many many inquiries.   They will suggest credit repair that is hit or miss with those things.     I think if they were honest and upfront that they would get more business.  But they are not transparent.

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  • David Hooper
    Lender · Fort Collins, CO · Member since 2017 · 67 posts · 19 votes
    7y

    Sprout is one of my company's non-QM mortgage investors and while not every experience has been smooth as silk, they offer a variety of lending options (especially for investors) that would not be even considered by other companies.

    https://sproutmortgage.com/our-loan-programs/

    Unless we're talking about a different Sprout?

    0Reply
  • Omar Parks
    Investor · Eau Claire, WI · Member since 2014 · 35 posts · 3 votes
    7y

    @David Hooper, I think the individual that started this thread is referring to Sprout Financial https://www.sproutfin.com/. It seems like you're referring to Sprout Mortgage which looks like a great company to work with (disclaimer, I've not worked with either company).

    0Reply
  • Tracy Spencer
    Investor · Phoenix, AZ · Member since 2010 · 27 posts · 7 votes
    7y

    Try credit card builders, or one of the other services like that that get you business credit.  when we did it some time back, it was a $2500 fee.  They applied for business and personal cards with 0% offers, and high limits.  Was very successful for us, and now we use as revolving lines by reupping with a 0% offer, generally with a 3% cash advance fee.

    0Reply
  • Brian Crowe
    Rental Property Investor · Los Angeles, CA · Member since 2009 · 22 posts · 12 votes
    7y

    Wanted to check back on this thread to see if anyone has used Sprout. I appreciate the advice from everyone, but please only looking for people that have used or currently using Sprout. They seem to be showing up to many REI Club Meetings in major cities. Thank you!

    0Reply
  • Joe Clinton
    Investor · Phoenix, AZ · Member since 2017 · 3 posts · 1 vote
    7y
    Originally posted by @Kyle Hardie:

    Joe Clinton, what was the result of your line of credit, did you pay the fees?  Thanks.

    They actually waived the fee because they weren't able to get the full amount for me that they originally told me that they would get for me.

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  • Joe Clinton
    Investor · Phoenix, AZ · Member since 2017 · 3 posts · 1 vote
    7y
    Originally posted by @Brian Crowe:

    Wanted to check back on this thread to see if anyone has used Sprout. I appreciate the advice from everyone, but please only looking for people that have used or currently using Sprout. They seem to be showing up to many REI Club Meetings in major cities. Thank you!

    Brian, please see my other posts in this thread.  I have used Sprout.

    0Reply
  • Eamon Conheady
    Investor · Seattle, WA · Member since 2016 · 46 posts · 14 votes
    6y

    I was looking into obtaining some business financing for my LLC that will do the deal transaction, due diligence, etc and if the property is purchased, would then manage the LLC that the individual property is maintained in. So, it'd be nice to have some business credit available to pay all the diligence items with and potentially have enough to be able to contribute to the downpayment on a property or pay for the immediate capital expenditures or updates that might crop up.

    I had submitted through Connected Investors and have been receiving numerous calls a day from various agencies like Sprout and Seek offering to open these "business lines of credit" that are actually just business credit cards. They claim that there will be NO fees for cash advances whatsoever, that there will be 0% interest for 18 months, and the only account opening fee is the roughly 8%-12% they charge as a finders fee. 

    I have called a couple of institutions and they all require businesses to have a history both in time and in revenue, which doesn't help me at this moment, but they can likely offer a personally guaranteed business credit card with modest credit limits. All of them assure me that they charge hefty fees for cash advances except my local credit union (who just charges the standard finance rate on the card). 

    My knee jerk reaction is "it's too good to be true so it probably is..."

    Has anyone had any success with these agencies in opening actual business lines of credit? Or just CCs? 

    Does anyone have other suggestions where I might find folks friendly to lend to a new LLC that will be purchasing cash flowing property?

    0Reply
  • Kavon I. Simmons
    Member since 2021 · 2 posts · 0 votes
    5y

    Currently in the process with them, but I was offered an installment loan. I guess your offer depends on the type of investor you are. Buy and hold investors seem to be favorable. 

    0Reply
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