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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Most Popular Reply

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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  • Paul Beets
    Investor · Indianapolis, IN · Member since 2018 · 86 posts · 84 votes
    7y

    CASH ACQUISITION STRATEGY

    One initial note about cash acquisition fees: Don't worry about them. All the cards that Fund&Grow were able to get me had GREAT rewards benefits that nearly completely offset the cost of cash acquisition. Or ... you could take a free vacation. Up to you. Don't forget to follow up and take advantage of these rewards after you have made your cash acquisition using the strategies mentioned below.

    Plastiq

    I wasn't that impressed with Plastiq at first. My wife and I operate several Airbnbs in our local area and so rather than paying rent on our properties with cash - we just paid rent through plastiq using our 0% interest business credit cards. Just make sure you have all your ducks in a row on documentation who you are paying. They do check and if everything doesn't line up it will delay payment.

    I heard during a Fund&Grow podcast with Clayton Morris that you could WIRE money directly to a closing title company escrow rather than trying to pull money off the card into a bank account and then pay to wire the money. So I just did this on 1/17/19 to buy a duplex!. I wired several thousand dollars into an escrow account and purchased a rental property! WARNING: Won't work with AMEX. Which sucks.

    Gold Money

    I did use go the Gold Money route. Real pain to get an account setup. Be persistent. Call them e-mail them follow up. It takes a few weeks but you'll eventually get there. I had a few issues with some of the cards not working with Gold Money. I honestly don't remember which were which. Just figure out how much you can/want to pull off the cards and try all of the cards you get. The ones that don't work go ahead and try some of the other strategies. I want to say I was able to use my AMEX with Gold Money. This also takes a little more time than the other strategies. Purchasing the gold may take a day or two. And then selling the gold takes maybe a day or two. Again... don't worry about the fees or the gold devalue if it happens to you. The rewards pretty close to offset these impacts.

    Paypal (I am not a CPA or Attorney. This worked for me. May not for you. Beware)

    So I may get flogged by the internet for this. But I will put it out there. Please be nice.

    I have a personal paypal account. I already have an LLC with an EIN number. So I created a Business paypal account. I then paid my business paypal account using my personal paypal account using the business credit cards. Yes there are fees. Again ... don't worry about those. I want to say I read somewhere that if you earn beyond $20K in your paypal business account they have to report that income to the IRS. It is still too early to tell if I'll run into that issue. In the future - this will be used as a last resort. I don't recommend it now that I know I can wire money into an escrow account through plastiq. AMEX you might have to use Gold Money. And then use this as a very last resort.

    Swipe it at a register or online purchase

    This one is obvious. I've paid my property taxes online with these cards. My wife and I have furnished Airbnbs with crap bought at Sam's club, Amazon, Target, etc. using these business credit cards. They are great and easy to use this way and I encourage it.

    Good luck!

    Paul B.

    5Reply
  • Maurice Colbert
    Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    7y

    @Paul Beets what card you use to wire? 

    0Reply
  • Paul Beets
    Investor · Indianapolis, IN · Member since 2018 · 86 posts · 84 votes
    7y

    @Maurice Colbert   I was able to use a Fifth Third Bank Mastercard and a Chase Visa.

    2Reply
  • Jose Gonzalez
    Real Estate Investor · Turlock, CA · Member since 2013 · 27 posts · 8 votes
    7y
    Originally posted by @Arielle Levav:

    During my negotiations Sabrina was always able to be reached by e-mail or phone. She was very diligent in acquiring me lots of capital and negotiating accordingly with the card companies I had past relationships with. She was very open to suggestions and a true pleasure to work with! Thanks Sabrina for all your time!

     Thanks for you honest experience..REAL GOOD CONTRIBUTION

    1Reply
  • Isaac Kissiva
    Pickerington, OH · Member since 2016 · 10 posts · 5 votes
    7y

    I enjoyed working with Brandon Kroon of Fund & Grow. I like his professionalism, he explained every step during my funding process, he was quick to respond to my emails and he answered my questions clearly. We were able to get two 0% credit cards for my business out of the four submitted applications. I'm now using my 0% credit cards to fund my business. Thank you very Brandon Kroon and Fund & Grow. Good Job. God Bless You.

    1Reply
  • Jennifer Bacani
    Investor · Lake Forest, CA · Member since 2015 · 2 posts · 1 vote
    7y

    I worked with Sabrina at F&G and she helped me secure over $40k in credit on the first round. I was very happy with the support and guidance she provided along the way. She was responsive and knowledgeable and kept me updated on the progress. The information she provided was helpful. I would highly recommend their service. I truly feel I have benefited a lot from working with F&G. 

    1Reply
  • Darrick S.
    Investor · Southeast Michigan · Member since 2018 · 8 posts · 3 votes
    7y

    Fund&Grow has been great. My account specialist Luis have already helped to obtain 43,000 of business credit and that's only the first batch. I can't wait to see how much more business credit I'll end up with after my last batch. I've been very happy with my service and highly recommend them. 

    1Reply
  • Jessica Maalouf
    Member since 2018 · 27 posts · 5 votes
    7y

    Ok, I have been looking into Fund & Grow and I'm interested to understand HOW it helps you grow your business. Is this line of credit more advantageous for fix and flips? My thought process is even if you purchase a property that you bought with the cards..... wouldn't you have to get it off the card by refinancing.... that would still require 20% down plus closing to secure the loan.

    Im trying to fully understand this opportunity and how to use it. I appreciate your help in advance.

    0Reply
  • Maurice Colbert
    Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    7y

    @Jessica Maalouf looking into the BRRRR, I did take the 20% off the cards to purchase my homes in a commercial deal.

    1Reply
  • Jessica Maalouf
    Member since 2018 · 27 posts · 5 votes
    7y

    @Maurice Colbert ohhh ok I see. I was unfamiliar with that strategy and had to look it up. I found that piece of information very useful. So did you refinance right away?

    0Reply
  • Maurice Colbert
    Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    7y

    @Jessica Maalouf no I waited 6 months. 

    0Reply
  • Jessica Maalouf
    Member since 2018 · 27 posts · 5 votes
    7y

    @Maurice Colbert so now you make payments to the business credit card for the 20% down-and you have a mortgage on the property...correct?

    0Reply
  • James Cook
    Member since 2019 · 1 post · 0 votes
    7y

    I have worked with John Madison at Fund and Grow and my 1st round of funding received was $55,500 and after 7 month that increased by $7,500.  We went in for our second round of funding and received and additional $63,000 of funding for the second round.  I now have a total of $126,000 after two rounds of funding.  Fund and Grow and it’s experienced representative can do all that they say they can do as pertaining to business lines of credit.

    J. Cook

    0Reply
  • Michinori Kaneko
    Rental Property Investor · NY · Member since 2018 · 571 posts · 332 votes
    7y

    why are there so many 1 post replies on this thread? lol and they all conveniently was created right before the comments were posted.  I didn't even know what Fund & Grow is, definitely the first thread I would comment on BP.  That alone to me sounds like a scam/red flag.

    5Reply
  • Jose Gonzalez
    Real Estate Investor · Turlock, CA · Member since 2013 · 27 posts · 8 votes
    7y

    @Michinori Kaneko , it seems like it, but if read thru all posts there is useful information even if you are not working  or planning to work with fund and grow, finding the few golden nuggets in posts is worth reading this tread fully.

    2Reply
  • Jessica Maalouf
    Member since 2018 · 27 posts · 5 votes
    7y

    @Michinori Kaneko I was thinking the same thing. 

    Part of me believes it is real and part of me is like how can I verify this...

    0Reply
  • Maurice Colbert
    Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    7y

    Well if anyone need a real person to talk to, inbox me, it’s not fake at all. I can show you all 10 cards I got! 

    3Reply
  • Parius Futch
    Rental Property Investor · Oakland, CA · Member since 2018 · 19 posts · 16 votes
    7y

     What do you mean by one post replies? I am trying to understand what people are expecting from this forum. I too have considered investigating Fund & Grow. I wouldn't depend solely on what people say here even if they replied 50 times. There are over 500 replies and  I see several people commenting multiple times. On top of that, this isn't the only thread on Fund & Grow. Best way to verify is to talk to the source and look for people who have used the service and will also make themselves available to talk to you.

    6Reply
  • Kenny Wright
    Member since 2019 · 2 posts · 0 votes
    7y

    Donna Fuller helps us with Fund & Grow on our journey to advance our lines of credit. She took us from where we had grown on our own pretty good to another added $150,000. She provides excellent follow up and communication throughout our process. Thank you Donna!

    kw

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

    With all these heart warming and clearly sincere replies it sounds like this must be the best company of all time, ever......

    5Reply
  • James Cole
    Member since 2019 · 6 posts · 2 votes
    7y

    I heard about Fund and Grow through Morris Invest. I didn’t know if it would work or be a good idea, but I figured why not. If it didn’t work, oh well. But what if it did? So I went for it, and I am certainly happy that I did! My representative, Brandon Kroon, went above and beyond in getting me business credit! After the first round of credit, Brandon has gotten me approved for $45,000 in business credit cards! Thank you Fund and Grow! And thank you Brandon Kroon!

    2Reply
  • Joel A.
    Rental Property Investor · Los Angeles, CA · Member since 2015 · 32 posts · 18 votes
    7y

    I’d highly recommend Fund n Grow if you need capital for growing your RE business or rehab funding. I researched a lot of different avenues to get cheap money including business lines of credit, business and personal loans, hard money, etc. and I think the 0apr cards you get via Fund n Grow is among the best options out there. I already had several business and personal credit cards but Fund n Grow helped me get to the next level. All the people I dealt with there provided excellent customer service throughout the process. Veronica Purdy was great to work with early on, as she helped me come up with a strategy to pay down some existing cards and get me in the best lendable position. The plan ended up working really well. Jason Alonzo the client account specialist did an amazing job in securing me $83,500 in my first round of applications, all at 0apr! About $20k of it was personal and $63,500 was business credit. He far surpassed my expectations for the first round. He’s one of the better negotiators there and I’m glad that I was able to work with him. Top notch level of service. These guys are legit and well worth the money I invested. I look forward to future rounds working with this team.

    1Reply
  • Chris S.
    Richmond, VA · Member since 2017 · 4 posts · 1 vote
    7y

    Excellent service and I highly recommend!

    Just finished a year with Fund and Grow and now have well over $100K of business credit that can be utilized at 0% year after year.  Big thanks to Anthony who did a great job making it happen and keeping me well informed during the whole process. This is a great tool to have in the toolbox and the knowledge and execution that fund and grow provide is well worth the cost!

    -Chris 

    1Reply
  • Nicole Heasley Beitenman
    Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    7y

    Be warned--your personal credit will take a huge hit starting out. Just finished my first round. Here's my experience so far:

    We were after a 5-plex that was having trouble selling. We're low on capital, and the owners would only entertain an owner-financed deal with a traditional 20% down payment. We turned to F&G.

    I was hesitant to start F&G because, as I explained to Marty, I wanted to start looking for a MFH to house hack/BRRRR within the next 2-3 months with a 203k loan. He said that was no problem. All I had to do was explain that during the consultation, and they would personalize a plan for me. We drilled Marty with questions to ensure we understood the process thoroughly, inside and out.

    Fast forward to my consultation. F&G now has all of my financial info including my debt and income. Again, I tell them I want to start looking at houses within the next 10 weeks or so. Again, they tell me no problem. The first round will only take 4 or 5 weeks, and I can get financed to buy a house after the first round. 

    I'm stoked. I can get my apartment complex, let it season while I buy my house, and once the house is purchased, I can refi the complex. 

    We're halfway through round 1, and I keep seeing the word "personal" next to these cards, but as they told me they were using a business entity to apply for cards, I'm not worried. I assumed that they were tied to the business entity as F&G's promise to keep your personal credit clean is plastered everywhere. But as time goes on, I think to myself, "I better double check that just to be sure they aren't mucking up my personal credit." 

    Sure enough, my application specialist tells me 3 of my 5 accounts are tied to my personal credit. They know full well that if I utilize their cards, my DTI will be too high to buy a house. Looking back, I should have told my application specialist about my plan, but since I had already mentioned it to so many other people, and since I was told my application specialist had all the notes from my consultation specialist, I didn't think I needed to do so.

    Round 1 is now complete, and of course the complex sold a week or 2 before we finished. My credit took a 50 point hit. Since I can only use $17k of the $33.5k they got for me, I'm not sure what we're going to do. I can't do much with $17k. It is nice having some credit that doesn't show up on my personal credit report, and I'm hoping that moving some of my credit card debt onto those cards will help my score recover. I don't know when I'll be able to start round 2 as I've never done a 203k rehab before, but I will post again when I have more to report. 

    0Reply
  • Maurice Colbert
    Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    7y

    @Nicole Heasley Beitenman that is very interesting, sorry your complex sold. I only had 1 card out of the many they got me that was consider card that was on my personal credit. 

    0Reply
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