Fund & Grow Financing

Creative Real Estate Financing
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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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Drew Cameron
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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  • Maurice Colbert
    Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    8y

    @David S. I know what they did for me was great, I can’t speak for others. So for you to say they shady and haven’t worked with them is kinda like hating on the process. To each it’s own

    1Reply
  • Daniel Rutledge
    Anderson, SC · Member since 2016 · 91 posts · 40 votes
    8y

    I dont appreciate being called shady. At no point has F&G asked me to post anything. I found this thread when researching them and now that I have worked with them I am glad I did. For those needing some creative solutions it's worked great. Why would you two belittle these people for trying to jump start their business? Amazing.

    0Reply
  • CP Chou
    Real Estate Agent · Austin, TX · Member since 2008 · 58 posts · 26 votes
    8y

    Either way before this thread gets locked, let's get back on topic. It seems like for a price, they can help direct efforts in expanding access to credit. Specific details appreciated. Any 1st posters please provide more context to help this thread. Thanks.

    I think the @David S. comment was in reference to the flood of 1st posters with no votes or history on BP. Not you specifically, @Daniel Rutledge

    1Reply
  • Daniel Rutledge
    Anderson, SC · Member since 2016 · 91 posts · 40 votes
    8y

    I see the point. I missed the fact that many are first time posts.

    1Reply
  • David S.
    Investor · Fridley, MN · Member since 2015 · 108 posts · 25 votes
    8y

    @Daniel Rutledge My comment wasn't aimed at you, but at the four posters just on this page that all have a single post to their name, with glowing reviews of the company. That is shady. And in no way did I disparage people trying to grow their business. I am saying F&G seems to be causing fake reviews to be posted. 

    @Maurice Colbert Hating on what process? I'm saying posting reviews either via sockpuppets or by telling their customer to post here looks shady. So you had a good experience. So did some people with Trump University. 

    2Reply
  • Steve Hegel
    Member since 2018 · 2 posts · 2 votes
    8y

    I was one of the first time posters noted above. I rarely post on blogs like this, due to the often negative posts that follow - just like above. Yes, Fund and Grow requested a review, if I was pleased with their performance - just like every other business in this country does.  I get review requests for $10 items purchased at Home Depot! 

    I declined Fund and Grow at first, since I normally keep a low profile on social media/ on-line chatter. There was no negative consequence in doing so, and reviews are not required. However, after receiving a significant amount of credit that has saved me a lot of interest, that I would have normally paid, I decided to give them a thumbs up.

    Yes, there is a fee.  And maybe it's not for you. And if your mother doesn't approve, then don't do it. No need to follow up on this, as I won't be accessing this thread any more, as I have better things to do.

    2Reply
  • Daulton H.
    Rental Property Investor · SC · Member since 2017 · 37 posts · 35 votes
    8y

    @David S. Agreed, I came here to gauge if I wanted to use this system and now I feel like we need triple the legit positive postings to outweigh the potential shills. 

    0Reply
  • Mykael Williamson
    Investor · Nashville, TN · Member since 2014 · 42 posts · 20 votes
    8y

    @Justin Sheley  Thank you for this post!  This entire thread has been most helpful.  @Maurice Colbert  thank you as well for telling us about your experience.

    My partner and I are evaluating using this service.  I appreciated your advice to secure your cash out refinance term and "concept pre-approval" with your 30 year lender.  That was forward thinking.

    At the end of the day, it is utilizing a 0% interest credit card to get into a property.  Comes with big risk if you cannot make the deal work, but it is straight forward.  Ideally it is also a launching point so that after the intro period you should be a better cash position and able to fly on your own.

    0Reply
  • Kris Russell
    Rental Property Investor · DFW · Member since 2016 · 20 posts · 17 votes
    8y

    Hey can anyone give anymore updates on their experience with fund and grow? 

    How much did you end up paying to change the credit to cash? 

    How was the overall experience? 

    Was it what you expected? 

    What did you not like about it? (if anything) 

    Or any feedback you would like to give, I'm about to sign up soon and wanted some more perspectives.

    0Reply
  • Maurice Colbert
    Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    8y

    GOLDMONEY WORKS!! I just had a successful transaction I’m excited 

    1Reply
  • Paul Keckeisen
    Investor · Islip, NY · Member since 2016 · 1 post · 1 vote
    8y

    I just recently completed my first round of funding through Fung & Grow and they were able to get me $61,000 in credit from 4 credit cards. My client account specialist was Jason Alonso and I can’t speak highly enough about him. He was very efficient and professional and was quick to return calls and answer any questions that arose. What most impressed me about this company is their detailed knowledge of the credit card industry and how they knew exactly what to do, submit and say to obtain these credit cards. Their ability to obtain a credit increase with in 2 weeks after opening the card was very surprising to me. For example, I had a card with a limit of $15,000 and they were able to increase it to $27,000 . Something I wouldn’t have even thought to inquire about because I just figured the credit card company would never agree. That being said, the availability of the credit was a bit disappointing. For starters even though I had a limit of $27,000, they would only allow me to perform a balance transfer up to $15,000. There are other ways of accessing the rest of that credit but they are more complicated and in some cases more risky. In addition to that, I was advised not to use more than around 35% of the available credit, or if I do to make sure I pay it back down to that level. If not, it will negatively impact the amount of credit I can obtain in the next round of funding. This creates a problem for me because the reason I signed up for this is to obtain as much credit as I can to purchase real estate. That 35% would leave me only $18,000 to work with and not nearly enough for the purchase of a property. Also in most cases, the promotions are available for the first 12 months. If I hold off on using the money until the last round of funding (there are 3), then I would not be able to take advantage of the 0% financing they offer. If you are looking for quick cash to use for short time frames like 2-3 months, then this is a great program. But, if you are looking to utilize the funding for a longer time frame then this may not be the program for you. All in all I learned a lot about how the credit card companies work and they did get me a good amount of credit, but I have yet to see how the next round will go as I have used much more than the recommended 35% of my credit line and am not able to pay it back for at least another 8 months. Based on your individual needs this could be a great way to get access to short term money. Just know what your needs are before you dive in.

    1Reply
  • Isaac Akinsanya
    Member since 2018 · 1 post · 0 votes
    8y

    just reaching out to make a big shout out to the fund and grow team via this medium, I heard about them through bigger pocket on YouTube, get in touch with there representative through phone call and the experience has been awesome from the bigining to this stage. Am saying thumbs up to Brandon kroon of fund and grow he and his team have vast experience in helping me get access to robust line of credit within 2weeks. Once again thank you guyz for doing a great job.

    0Reply
  • Winston Cummings
    Clinton, MD · Member since 2018 · 25 posts · 17 votes
    8y

    I went through this program recently and my expectations so far have been met. My experience with Jason and his team was phenomenal. You have to follow their instructions as they are outlined. They got my business $38000 in 10 days and I’m waiting for our second and third rounds. I can attest to my experience and yes I have and will refer Fund&Grow

    0Reply
  • Daniel Rutledge
    Anderson, SC · Member since 2016 · 91 posts · 40 votes
    8y
    So during the process I somehow missed the fact that one particular credit card reports on your personal credit (capital one). In missing this important fact I used the card along with others to transfer balances and pay off a loan and converted the rest to cash for investing. The plan was to increase my DTI, lower my personal CC utilization and set aside cash to buy the next property. I have applied for a HELOC this week and the plan was to move the balances into it before the next round. All has been going as planned until today. I was speaking with a company to help remove the inquires and was told the capital one couldn't be removed because it would be on my credit report. I quickly logged into credit karma and within the last two days I have the inquiry for my HELOC as well as a new account with a maxed out capital one card. This has temporarily taken 46 points off my score and I'm not yet sure if the HELOC hit before it after. Literally the worst timing! I am waiting to hear back on the HELOC application before knowing if it made it in on time. If it didn't I may need to hold off for another 30 days so I can pay the card off. Still pleased with F&G but I wished I had of listened a little better when discussing this part. Like many of you I'm being creative and each thing I'm doing builds on the last. This could alter my plan as I currently have an offer in on a home and had everything lined up for that. Might be time for plan B.
    2Reply
  • Will Zena
    Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes
    8y

    @Daniel Rutledge thanks for letting us know about Capital One. I will keep that in mind

    0Reply
  • Jacob Reaves
    Denver, CO · Member since 2016 · 4 posts · 0 votes
    8y

    Here is a tip for all of you trying to pull the cash off of the credit cards.

    Open a personal line of credit at the bank

    Or a HELOC-this is best

    Put whatever amount you can/need on the line of credit or transfer the cash to your checking account

    Use plastiq.com

    Use your new credit card on plastiq to mail a payment to the line of credit at your bank

    You will pay the 2.5% fee

    You will get 1% in rewards/cash back

    Great deal

    0Reply
  • Randy Snider
    Member since 2018 · 1 post · 2 votes
    8y

    I took the leap of faith with Fund and Grow. They got me $23,700 in credit after 1 round of credit negotiations. I did VERY little of the work. Ryan Fuller was the person I worked with and he couldn't have been more helpful. Hope that's helpful.

    2Reply
  • Account Closed
    Property Manager · Baton Rouge, LA · Member since 2014 · 2k+ posts · 195 votes
    8y

    Business lines of credit using credit cards like Winston Cummings is giving thumbs  up to are offered by many companies.  I have used such companies and have even made such offerings myself.  The variants to help you through this type of lending is only limited by the imagination

    0Reply
  • Will Zena
    Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes
    8y

    I'm wondering after the introductory interest rate promotion what is the rate you all see these credit cards go up to? ALso what is your strategy at that point?

    0Reply
  • Ty Truong
    Flipper/Rehabber · Fairfax, VA · Member since 2016 · 10 posts · 2 votes
    8y

    Quick question for those who are using Fund and Grow. I read through the posts and there aren't that many strategies of how to convert your credit line to cash without incurring the balance transferring fee. Some mentioned GoldMoney and Plastiq as the alternative method. I'm interested because I did a balance transfer with my personal cc at 0% fee for 12months (it rarely happens so I maxed out $40k on that cc for the transfer). Fund and Grow just called me recently to do that for the business. I can pretty apply the same concept that I did before to my business without paying the $3997 fee. Is it really worth it? How do you remove these soft inquiries that affecting your business score btw? Any feedback is helpful. Thanks. Ty

    0Reply
  • Ty Truong
    Flipper/Rehabber · Fairfax, VA · Member since 2016 · 10 posts · 2 votes
    8y

    Also, many of you mentioned that you shouldn't utilize 35% of the credit limit that Fund and Grow gets for you. But if you need $400k to buy a distressed property, how long would that take for you to get there? Given that you combine part from your credit card and HML.

    0Reply
  • Jason McGloin
    Akron, OH · Member since 2015 · 12 posts · 3 votes
    8y

    Just brainstorming a little bit here... Let's say you've set up your rental biz to accept rent payments online by credit card (under an LLC different from the one you use with F&G). Can you somehow pay your rental biz with the F&G cards and pull cash out? Yes you'd have the 2.5% fee (not interest, though, just a one time fee) but you wouldn't have to go through third parties, buying gold and such. While I cannot come up with a reason why this wouldn't work, this whole thing is so money-laundering-esque that I'm having trouble arriving at a route to cash that doesn't feel a bit off.

    1Reply
  • Jared Broderick
    Chatham, IL · Member since 2018 · 7 posts · 5 votes
    8y

    So... I don't usually like leaving reviews... But, I do believe in showing gratitude for what and how something is given to you.... So, here's my two cents on Fund & Grow.


    First, I heard about Fund & Grow from Clayton Morris's YouTube channel and by visiting his site... From what I've read in other parts of the Bigger Pockets forums, Clayton Morris is liked as a person... But, most don't like his turnkey business... Regardless of what you think of his business or of him, I believe he's serious about trying to help others in finding financial freedom in "creative" ways. Case in point, just for mentioning that I was referred to Fund & Grow by Clayton Morris, got me $500 off their price and allowed my wife (who is also my business partner), to participate as a secondary applicant for free (this would normally cost another ~$4000). So, $8,000 in service provided for ~$3,500, that was a nice deal.


    The folks at Fund & Grow had us do some things to "smooth out" our credit, and then the application process began for me. It took me a few days to realize that I had to set my wife up separately, so her process started a bit later than mine, thus she is only now starting her first round.


    So, I've finished the first round with around $64,600 in BUSINESS credit, whereas my wife is just about to start her first round which is focused on her PERSONAL credit, as she hasn't been using credit as long as I have. That's a good chunk of 0% interest credit that I'm currently using to purchase between 7 and 10 rental properties CFD.
    They also continue to work for you for a whole year, trying to make sure you get 0% for as long as you can and getting you more credit where possible.


    Additionally, not only do the get your credit cards w/ 0% interest to help fund your business, I’ve found that they have an extensive guide on how to build credit for your business… It takes some time to complete everything, but I can see how it could benefit me and my business in the long run.


    They also have you sign up for a newsletter on investing and funding at $50 an issue, it seems a bit outrageous… but if you stay signed up for a year, you also get a free 1 week stay (travel not included) anywhere in the US… $600 for investing/funding information and a 1 week stay anywhere I want in the US, I just have to get there… I guess it’s an okay deal.


    So, that’s pretty much everything you get from the business, and it’s not all too bad, and generally worth it…


    To access the money, they basically recommend two methods outside of transferring funds and regular use, Plastiq (2.5% fee, tax deductible) and Goldmoney (no less than 3% fee plus transfer fees). 

    Plastiq apparently works well to make down payments on property purchases with everything but American Express (they don’t seem to like it when folks use their card to buy a house). 

    Goldmoney may get flagged by the card fraud department, even if you call and explain that you plan on extracting most of your money (this caused me such a headache). The other problem with Goldmoney is that you MUST buy gold, platinum, silver, or palladium before you can cash out and have the money placed back into your account… If you’ve been following any of the precious metal markets (and I highly suggest you investigate it before using Goldmoney) you’ll know that precious metals are falling in their value fast (it’s not a big deal if you intend on long term investment… but big if you intend to pull out soon after investing). I lost ~$6000 between the fees and the falling market in less than a week. Unless the market is shooting upward… take your money out of the precious metals about as soon as you put them in and count your losses on the fees.


    So, there you have it, as detailed information as I can recall on Fund & Grow. I’m pleased overall at the service that they’ve provided so far and look forward to what may be in store… Now if there was only a better way to get the money out of the credit accounts...

    3Reply
  • Luke Mitchell
    Contractor · Albany, GA · Member since 2017 · 57 posts · 33 votes
    8y

    So I've spent the better part of a day reading this entire thread. Some good. Some bad. Some questions.

    1) How does F&G go about getting permission to even negotiate on your behalf? Is it like adding a spouse to be on the account too?

    2) I still don't see how they provide that much service on the building credit cards side, when a person could just do a little research themselves on how to get business cc and put their info in on the site. What makes them unique? Is it merely a speed and knowledge issue? 

    0Reply
  • Maurice Colbert
    Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    8y

    @Luke Mitchell they wouldn’t give that into out or they wouldn’t be in business. Also time is money, I spent $3500 bucks and I’ve already have 5 properties. So it’s all based on your desire if you want to move quick or not. Yes you can research all this info, that’s no doubt, I did that before I signed up with them, but then it took me more time to look up this stuff than building my businesss and corporate credit so I can get farther. It’s some negatives on this post but I really feel F&D has seen and fixed and addressed them. They are a hard working group. From the start I have had good stuff.

    0Reply
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