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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  • Contractor · Albany, GA · Member since 2017 · 57 posts · 33 votes
    8y

    @Maurice Colbert Yeah they sound overall pretty fair...I was just wondering about a few things. Could you speak a little more on the Corporate Funding since its non recourse credit and how that could benefit someone like us investors. 

  • Chatham, IL · Member since 2018 · 7 posts · 5 votes
    8y

    @Luke Mitchell - I'm not Maurice... Nor am I an expert or married to the idea of Fund & Grow (I'm a recent customer, that's it)... Here's my thoughts on a few of the topics you've asked about:

    Non-Recourse Credit - I don't know if this will directly help investors or not... My thought is, why not build good credit any and every way... just in case... it can't hurt.

    Soft Credit Inquiries - Fund and Grow seems to have a guide on how to remove these (I have yet to see it... though I'm pretty sure the guy I'm working with will be sending me a copy soon, as I inquired not long ago about it).

    Why Pay Fund & Grow - Why pay a property manager, you know how to take care of properties the way they would... But, do you really want to spend the time and effort that they are willing to do for a nominal fee.  It's the same thing here with Fund & Grow, you're paying for their expertise, knowledge, and willingness to do a good portion of the work for you (for a whole year, which is quite competitive in the realm of credit funding companies from what I've read).

    Permissions to work on your credit - … This one you have to be willing to trust the business on... They ask for limited power of attorney to act on your behalf to get the credit cards setup for you.  They also ask for all of the information that would ever be needed to setup these accounts... Which can be very personal.

    Anyhow, I definitely had my reservations about what they did at first... and I actually sat and waited for them to do anything for a month while they waited for me to "fix" my credit (moving money between different cards and removing myself as an authorized user on certain accounts). 

    So, by no means is it a perfect solution... but it is a solution, and for the most part, it works.

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

    @Luke Mitchell they will give you all the info how to set up corporate credit also. 

    @Jared Broderick I have successfully gotten the inquires off by using their steps. 

  • Contractor · Albany, GA · Member since 2017 · 57 posts · 33 votes
    8y

    I just wanted to add that I spoke with Christy Banks from F&G about the program and she answered some of our questions regarding how it works. We have chosen to hold off at this time due to timing and wanting to move our debt around a bit so that the process will be more efficient when we do decide to join. Its important to realize that your financial house must be in order for things to move quickly relating to the available credit cards you can receive and utilize for your business. I do think I've learned a great deal however, concerning how business credit is viewed vs personal credit, how having your LLC, S-Corp or Sole Proprietorship set up correctly with its name and exactly what your describe the business function to be, and also just how important your ability or as in this case, F&G's ability to know exactly what the underwriters are thinking and want to hear in order to greatly increase your funds. I have a feeling I will be using them to increase my funds soon, however, I do still have concerns of how this works long term and what exactly occurs when the 0% runs out and you need another 0% option. Are we constantly canceling cards with these companies? If we are, will they still lend to us another credit card in the future? I feel this is only a short term solution and that the end game and the gold standard must be private money.

  • Real Estate Agent · Nassau, NY · Member since 2017 · 1 post · 1 vote
    8y

    I had a great experience with Fund and Grow. In the first round I got around $20K, 4 months later Brandon Kroon helped me get $78K in funding with 0% for a year. I'll be using these funds to get into some real estate deals I otherwise would not have been able to. I highly recommend them!

  • Pompano Beach, FL · Member since 2016 · 19 posts · 4 votes
    8y

    Just to clarify my understanding of how they operate:

    They apply for business credit cards on your behalf that report only to the business credit bureaus (e.g. D&B and Experian Business) with low 12-18 month introductory rates. There's still a personal guarantee (pretty much unavoidable unless you're operating a highly profitable and long established business), and the hard inquiry shows up on your personal credit report.

    After applying for multiple cards, they somehow are able to dispute the hard inquiry and get it off your personal report. As such, the business cards and their respective utilization will have no impact on your personal credit unless you don't pay the bill. Disputing legit inquiries seems a bit shady though.

    After you're approved for the cards, you can use Gold Money to get the cash out, but there's a transaction fee.

    After doing some research, I determined which cards report to the correct bureaus. The only thing stopping me from doing this myself and saving a few thousand on their fee is the dispute process. Do they send certified letters? How does that work?

  • Meriden, CT · Member since 2016 · 3 posts · 2 votes
    8y

    I'm a local REI investor out of CT. I found out about Fund and Grow through REI club and a few other investors and I have had nothing but a positive experience. Between my existing personal lines and the 81k I obtained through Fund and Grow I have >100k to invest in real estate with. With the Hard money companies that offer funding at 80% LTV I'll be able to get the 20% down I need from my own lines of credit. I would seriously recommend. It takes time to build, so build it now so it's there when you need it!

    This was my second round of funding that I received from Fund and Grow, this time around I got 37k in unsecured business funding! In addition to that I had them go for increases on my personal lines and that added up to about 10k! In addition to the funding I received earlier I have a total of 81.5k in business credit cards! Brand Kroon was my representative and has been incredibly helpful throughout the process. He has been very prompt, responsive and knowledgeable throughout the whole process. Jennifer Soriano also assisted with my file was very professional and helpful in assisting with the funding process. If you’re looking for unsecured business lines of credit to help grow your business, Fund and Grow is the place to go! I still have about 6 months of funding left so I’m confident at this rate my 81.5k will continue to grow as will my business operations. Thanks Fund and Grow.

    If anyone is interested in the process start to finish I will gladly post that, but this specific review is in regards to my 2nd successful batch of funding.

  • Bakersfield, CA · Member since 2017 · 9 posts · 6 votes
    8y

    I am very thankful to Sabrina U. for assisting me in obtaining almost $40,000 in business credit. I can't wait till the next phase to increase this amount. Tuddles to you Sabina!!

  • Member since 2018 · 1 post · 0 votes
    8y

    I just completed my first round with Fund & Grow and I would have to say that Ryan was super reliable, I didn't have to chase him. He helped me increase my credit and to get $15K in personal credit in my first round. Looking forward to the next round to start getting business credit and increasing my personal credit.

  • Rental Property Investor · South Florida · Member since 2018 · 12 posts · 6 votes
    8y

    Hey Guys,

    Awesome experience with Fund&Grow!!  

    I was targeting about $70K and Jason Alonso helped me achieve a total of $94K in the first batch ;) , way above our expectations and will have more batches coming.

    They will explain you everything along the way, and the tricks / options to get the money you need.

    Thank you Fund&Grow & Jason for get us up & running :) 

  • Member since 2018 · 1 post · 0 votes
    8y

    This was my first time using Fund & Grow and they delivered on their promise by providing me with business credit. Brandon Kroon was my account specialist and he took care of everything for me. His communication was clear, concise and very responsive. I was impressed with his professionalism and would recommend Fund & Grow.

  • Member since 2018 · 5 posts · 1 vote
    8y

    I have to say that Fund and Grow did a OK job, for me and as far as i'm concerned they did deliver  but I was mislead at first by the recruiter, I'm not writing this to complain, because i'm completely satisfied with end result because of one of their really good agents

    SABRINA UBELE/ from Fund and Grow

    she was Awesome, Responsive, worked hard to get the amounts as high as she could. didn't take NO for an answer and made my experience as a fund and grow member well work my while. $34,500 worth my while and we are just getting started

  • Manorville, NY · Member since 2018 · 17 posts · 3 votes
    8y

    Any new techniques on converting cc to 💵?

  • Member since 2018 · 16 posts · 4 votes
    8y
    How long after you started the process and submitted all the necessary paper work and id’s and stuff did you receive your first batch of funding? I’m currently in the first stage and awaiting my applications according to danyelle and zac ricci. I’m just trying to figure out a time frame to make my first deal.
  • Member since 2018 · 16 posts · 4 votes
    8y
    @Enrique Caballero How long after you started the process and submitted all the necessary paper work and id’s and stuff did you receive your first batch of funding? I’m currently in the first stage and awaiting my applications according to danyelle and zac ricci. I’m just trying to figure out a time frame to make my first deal.
  • Member since 2018 · 1 post · 0 votes
    8y

    I heard about Fund & Grow through the Morris Invest podcast. It sounded like a great way to work with our business of flipping our first homes and it has not disappointed. The whole process has been thorough, professional and very beneficial with our first round coming in at over $54,000!

  • Member since 2010 · 1 post · 0 votes
    8y

    Great experience as well.  I heard about Fund & Grow through the Morris Invest Podcast.  In less than two months, Anthony F. over at Fund & Grow was able to obtain $86,000 in funding.  I have used a portion of my lines of credit to secure two single family residences as part of my real estate portfolio.  Anthony and the team were always available when I needed to contact them, and he kept me up to date every step of the way.

    It's a great way to a cheaper alternative to hard money when you're trying to get on the ground and running.  Fund & Grow allowed me to create my own bridge loan to kick-start my business, and I'm rocking and rolling now.

  • Anderson, SC · Member since 2016 · 91 posts · 40 votes
    8y
    Originally posted by @Jonathan Ahle:
    @Enrique Caballero How long after you started the process and submitted all the necessary paper work and id’s and stuff did you receive your first batch of funding? I’m currently in the first stage and awaiting my applications according to danyelle and zac ricci. I’m just trying to figure out a time frame to make my first deal.

     Its definitely a process and takes some time. It doesn't take a long time to get the first card but you dont want to use the card until they try to get the credit amounts higher. I believe it took about a month from start to the day I began using cards. Keep in mind the cards need to stay below 50% usage before doing round 2.

  • Member since 2018 · 16 posts · 4 votes
    8y
    @Daniel Rutledge why do you need to keep the usage below 50%. No one told me that. So say my deal is 50k and I only get approved for 40k what would my best option be? Go for conventional financing and use the cash for a down payment? If I do that how can I repay the cash in a years time to keep from those high interest rates?
  • Member since 2018 · 16 posts · 4 votes
    8y
    @Daniel Rutledge What about Facebook messenger. They allow you to to send money to anyone. Couldn’t you set up the service with one card and send money to someone you trust? And then they could withdraw the money from they’re account and give it to you. And it’s a free service!
  • Rental Property Investor · Newark, NJ · Member since 2018 · 13 posts · 5 votes
    8y
    @Justin Sheley I heard of them also through the clayton moriss podcast, looked Into the company also but have not pulled the trigger on using there services. Please keep us posted on how everything goes.
  • Member since 2018 · 1 post · 0 votes
    8y

    I am making a sincere, but scary switch from corporate life to real estate entrepreneurial ventures. Its on me as to whether I succeed or fail. One of the things I have decided to do is align myself with service providers and partners who can add significant value to my endeavors. That is especially true this first year of transition. It can mean the difference between having an income or going broke. One of the tools I chose to use after research is Fund and Grow. Their first round effort has produced $42K in 0% funds to use over the next year and I am going to use those to accelerate my purchases and re-selling activity. It is a solid tool and I am enthusiastic about what they will do for me in the second round. For now though, I have $42K in funding available that was not available to leverage a month ago. I am pleased with their service.

  • Member since 2018 · 1 post · 0 votes
    8y

    Hi All, 

    This post helped me gain the courage to take the leap I am now happy I did, so I thought I would share the beginning part of my journey....

    I heard about Fund & Grow on a real estate investing podcast that I frequent and it sounded too good to be true. For the longest time I have wanted to get into real estate investing, but it has the stigma that it is only for those with tons of money...the mantra "cash is king". For the longest time I merely read about real estate investing and managed to save up enough money to purchase my first duplex. Wanting to grow more as an investor I joined a local read estate investment association and learned something very quickly that was a motto of every single SUCCESSFUL real estate investor...they were creative! If you find the right deal the money will come. After exploring different routes to provide the funding I need to acquire deals as I find them (i.e. hard money, private money, seller financing, lease to own, etc.) I came across Fund & Grow. What I love about F&G is the professionalism that they have in doing what they do best. Could I have sent all the applications out on my own?...yes. Could I have managed their approvals and tried to get the limits increased?...probably. Would I have been able to do it as seamlessly, quickly, efficiently, and thorough as they did?...no, and it would have required a ton of my personal time. My time is valuable so I chose to work with people whose profession is raising business funding! Not only that, but as a man of a million questions, every single person at F&G was there to help reassure me along the way of everything we were doing. It has been a great, highly communicative, learning process so far.

    Now to the good stuff...after my first round (which took about a month in total) I have secured $54,000 in business credit with terms anywhere from 6-15 months 0%. This was my first round, and my company is fairly new (<2 years), but still....this is exactly what I needed to rehab a single family home I purchase with hard money from a wholesaler, then refinance the home after a 6-month seasoning...paying off the credit lines. Just in time to do it again with my next round of funding with F&G.

    The ways in which you could use the funding are endless, however, my plan is to use it to fund my rehab efforts using the BRRRR method.

    I would highly recommend to anyone who needs a shot of adrenaline to their ability to grow their asset column (shout out to Rich Dad Poor Dad). The longer you wait, the more you'll be telling the story, you wish you would've done it sooner. Also, be prepared for family and friends to tell you, you're crazy. As long as you do your due diligence, when people are telling you you're crazy, you're probably doing something right...to rise above the rat race and start making your money work for you! Always keep your eyes open for new, creative, opportunities. 

    I hope this helps you all in making your decision to partner with F&G.

  • Richard P.Pro Member
    Investor · Rockdale, TX · Member since 2015 · 1 post · 0 votes
    8y

    I recently used fund and grow to obtain business funding.  The process was very simple.  The customer service was really helpful.  Thank you Sabrina Ubele for explaining everything to us.  We are just in the first round and already have $51000 in funds available.  I look forward to working with Sabrina to extend this even more.  

  • Portage, MI · Member since 2017 · 6 posts · 1 vote
    8y

    Sabrina at Fund & Grow was great to work with! She was very prompt in communicating and was organized throughout the process! She was able to answer all my questions. I would most certainly work with her again!  She was able to get me over $33K!

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