Fund & Grow Financing

Fund & Grow Financing

Justin SheleyBusiness Member
Investor · Rockford, IL · Member since 2016 · 94 posts · 220 votes

After listening to the Clayton Morris podcast (EP115 with Mike Banks) about the company Fund & Grow, I became intrigued with the idea of using business credit cards to buy rental properties using the BRRRR method. The whole concept seemed too good to be true, so I hopped on BiggerPockets to see what people were saying about Fund & Grow. I always find great content here, and more often than not I find the answer to my question before I even need to post and ask about it. However, with Fund & Grow, I didn't find much. (If anyone knows of a discussion about Fund & Grow that I didn't find please link me to it) There are a few discussions where people were considering using Fund & Grow to finance a deal, but none that I saw that went all the way through the process and used the funds to find a deal.

That being said, I decided to start this discussion post and share my experience with the company from day 1 till I refinance and hopefully complete the BRRRR method.

For anyone not familiar with Fund & Grow, they are a company started by Ari Page that helps you establish business lines of credit for the purpose of creating working capital for small businesses. In my case, I will be using the line of credit to buy properties in Rockford, IL and rehab them into rental properties.

Phase 1:

Currently I have enrolled with Fund & Grow and completed my initial consultation. This cost $3,000 for their service of negotiating and securing the business credit cards. I spent 1 hr on the phone with a very friendly consultant and discussed my plans for the business credit and established a sole proprietorship for both my wife and I. This allows the business lines of credit to not affect my personal credit score.  The first push for business credit will begin next week, and I should have access to an anticipated 60k by the following week. My wife is not currently receiving accounts yet until a more established credit history can be created for her.  We are currently lining up several refinancing options with banks in the area so that they are aware of what we intend to do. Currently we are being told that we can refinance the properties we buy with cash after 6 months. This is key for us, because we intend to buy and hold these properties and do not want to get stuck after the initial 12 months of 0% interest expires on our business credit cards.

Phase 2 is going to be actually receiving the cash into our account and making our cash purchase. I tried for brevity sake to not go into the entire Fund & Grow concept in my initial post, but if anyone has any questions, comments, or concerns I'd love to discuss them.

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Lender · Peabody, MA · Member since 2015 · 82 posts · 49 votes
9y
I used a similar system to receive roughly $40,000 in credit cards at 0% for a 12 month period. The company I used took 10% upfront and then helped me liquidate everything so I had usable funds fairly quick. I was able to do a flip with the funding I received and pay back all the money before my interest free period ran out. It was expensive, but the flip more than covered everything and I was able to get in the game. I would do it all over again if I had to.
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  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    8y

    @Justin Young in the packet they will give you the into to delete it, they came right off. 

  • Investor · Fort Myers, FL · Member since 2017 · 40 posts · 65 votes
    8y

    @Justin Young I outsourced that task to their partner company Kaydem Credit Help.  It was only $347.  I just followed up with them every once and awhile and they took care of everything.

  • Investor · Honolulu, HI · Member since 2016 · 362 posts · 93 votes
    8y

    Good to know guys, thanks for the info.

  • Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes
    8y

     I have been working with Kaydem as well and they do a very good job. When I speak to their representatives and they explain the process they go through to clean up your credit it is alot of work for the average person. Well worth the money in my opinion even though I am still in the middle of that process.

  • Rental Property Investor · Greater Lansing Area, MI · Member since 2014 · 196 posts · 55 votes
    8y
  • Rental Property Investor · Greater Lansing Area, MI · Member since 2014 · 196 posts · 55 votes
    8y

    Thanks for sharing your journey on this @Justin Sheley!

    I don't see how establishing a sole proprietorship offers business lines of credit that don't show on your personal report since a sole proprietorship is not a separate legal entity. What am I missing? Have any of you who have used this service done so with an established LLC or corporation? Just curious as that surprised me.

  • Clifton, VA · Member since 2017 · 6 posts · 2 votes
    8y

    One of the ways the money is transferred is through a Balance Transfer Check. Long story short, you have a credit card for of $10,000 - the CC company then forwards you the money in a check at a nominal cost of ~3% of the total amount (ex: $300 on top of the $10,000). Then you cash the check and use the money to buy whatever.

  • San Antonio, TX · Member since 2018 · 4 posts · 4 votes
    8y

    I am new to BiggerPockets and I have just signed on with Fund & Grow.  I havent even had my initial consultation yet but I'm very hopeful.  I will keep ya'll posted!!

  • San Antonio, TX · Member since 2018 · 4 posts · 4 votes
    8y

    I have signed up and my consult is Jan 8!!

  • San Antonio, TX · Member since 2018 · 4 posts · 4 votes
    8y

    I'm anxious about getting going with Fund and Grow.  My Fico is 660.  

  • Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
    8y

    @Samuel Vail  Any feedback so far on the process Samuel?

  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    8y
    I am verified with the goldmoney account now! Can someone help or given me guidance on how much you can buy and sell to get your cash.
  • Houston, TX · Member since 2017 · 23 posts · 6 votes
    8y
    Originally posted by @Maurice Colbert:

    I am verified with the goldmoney account now! Can someone help or given me guidance on how much you can buy and sell to get your cash.

    Congrats have you got cash off it yet? Aren't they supposed to help with that?

    How much you got so far?

    Any updates?

  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    8y

    @Donny Aldo I haven’t taken the cash off just yet 

  • Rental Property Investor · Denville, NJ · Member since 2017 · 107 posts · 54 votes
    8y
    Can F&G use an already existing llc? Or do they have to open up a new llc to start their process?
  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    8y

    @Christopher Toth it depends, they usually use sole  proprietor or they will make one for you for free.

  • Rental Property Investor · Birmingham, AL · Member since 2017 · 53 posts · 56 votes
    8y

    in for later

  • New York, NY · Member since 2018 · 13 posts · 33 votes
    8y

    I just created a case study of my experience with Fund & Grow - feel free to check it out here!

  • Queens, NY · Member since 2014 · 73 posts · 12 votes
    8y

    Are there any other companies that offer these services that do charge a high fee? Other then midwest credit and fund&grow

  • Houston, TX · Member since 2017 · 23 posts · 6 votes
    8y
    Originally posted by @Doug Kenney:

    I just created a case study of my experience with Fund & Grow - feel free to check it out here!

     How much did you get on your first round?

    Did you ever get cash off your credit cards?

  • Toronto, Ontario · Member since 2018 · 1 post · 0 votes
    8y

    Hi all,

    I am living in Toronto, Canada. I am interested in this Fund & Grow concept. Do you guys think this company can get me business credit cards to buy properties in US despite of me being in Canada?. 

    I appreciate your responses.

    Have a Good one, Suresh

  • Rockville, MD · Member since 2017 · 45 posts · 11 votes
    8y

    This has been a very informative post. Wish i had all this information a year ago when I went through this process myself. It wasn't all bad though, I secured over 80k across 5 cards, but some of the card 0% rate only last about 6 months. So at this point i don't feel the need to pay someone 3k to do something I was able to do on my own. However what information i don't have is how to remove the inquiring from my credit because it did take a hit. Is anyone willing to share the steps on how to remove the inquiries, I would be eternally grateful? 

  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    8y

    @Kwame Knights it’s in the information they sent to you. Or just google a inquiry dispute letter. It will work, I’ve got mine off successfully 2 rounds. I’m working my last report right now. 

  • Rental Property Investor · MD · Member since 2018 · 15 posts · 10 votes
    8y
    Originally posted by @Corey Robinson:

    @Maurice Colbert I received $40K, or so the first round and my FICO is 790 but when I first applied it was 707.  Went through Kaydem Credit to clean some things up on my credit so I would be stronger the second time around.

    @Corey Robinson, Thank you for all your updates Corey. I've been speaking with Marty Banks from Fund and Grow this week for about 90 minutes in total. He has been very helpful. I have 2 questions for anyone who has gone through it before, how do you exactly take lets say 50K from a credit card to purchase a 50K rental property? Also is it worth is to pay the company to take the inquiries off your record, is it straightforward or super hard if you do it yourself? Thanks again I'm excited to get into the game of real estate!

  • Houston, TX · Member since 2017 · 23 posts · 6 votes
    8y

    Does anybody want to go half on signing up for fund and grow?

    I got my half , it would be more cost effective to split $3,500 down the middle.

    If your interested let me know so we can contact them and sign up together.

    Thanks

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