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 · Atlanta, GA · Member since 2019 · 11 posts · 7 votes
    7y

    @Jordan Ward I’ve just used them so for for balance transfers to make my personal credit look better for financing elsewhere.

  • Member since 2018 · 1 post · 0 votes
    7y

    Thanks very much to the Fund & Grow team especially Donna Fuller for helping me obtain business credit.  Donna is very attentive and professional and I recommend her for newbies and seasoned real estate investors. Finding funding was easier and less stressful.

  • Jason G.Pro Member
    Rental Property Investor · Long Island, NY · Member since 2015 · 434 posts · 495 votes
    7y

    This entire thread is pretty amusing.  All these accounts with one post created solely to praise Fund and Grow on this thread.  How is this not an obvious red flag?  I imagine if these people really went through this process the vast majority are likely underwater right now.  It sounds like nothing more than another get rich quick pursuit.

  • Member since 2018 · 1 post · 1 vote
    7y

    So far, my experience with Fund&Grow has been great!! Anthony helped me achieve a total of $61,000 and I am looking forward to my next batch!! Thank you Fund&Grow

  • Newport News, VA · Member since 2018 · 1 post · 1 vote
    7y

    I heard of Fund&Grow through a Clayton Morris podcast and decided to take that route rather than using a hard money loan.  I started back in October 2018 and so far Anthony helped me achieve a total of $120,00 in business credit and I am looking forward to seeing more when the next batch is run!  

    I have not used any of the credit yet in a real estate deal so I have not turned the credit into cash as of yet.  I would like to continue to grow the credit before I pull out cash for an investment.  I do appreciate what Fund&Grow offers!

  • Rental Property Investor · Monterey, CA · Member since 2019 · 13 posts · 9 votes
    7y

    So far my experience with Fund&Grow has been great!!. Bianca has helped me obtain funding and I am looking forward to my next batch!! Thank you Fund&Grow –

  • Rental Property Investor · Louisville, KY · Member since 2017 · 10 posts · 7 votes
    7y

    We concluded the second round of applications with Fund and Grow about a month ago.

    We couldn’t be more pleased with the results. Luis and Donna did an amazing job. We got way more credit than the first time and we already closed on another property and are about the finished the rehabs of two other properties that we bought with the credit my husband got in the second round.

    This process is totally worth every is how penny!

    I know Luis provided amazing costumer service to Boris, he was very impressed. In my case I with Donna I did see that the costumer service changed, the response time was not the best at times like the first time. Donna explained to me that they now have more clients and work however that is not the client's responsibility. They have to hire more personal or figure put how to keep providing the same outstanding costumer service. Also, due to the high clientele, I had to wait a lot for my second application once I was ready to do it, since as I explained in my first review the inquiry removal process is not as simple as you will be told when you hire the services, and when the day came my HELOC was already showing in my credit report. Still, Donna did amazing job negotiations with the lenders. My husband and I have discussed to do this whole process again once the 3rd round of negotiations is done, it is that worthy.

    This time I’ll hire Keydem for the credit inquiry removal because I do not want to deal them the credit bureaus again and let’s see how it goes.

  • Member since 2018 · 1 post · 0 votes
    7y

    Bianca was responsive and a pleasure to work with. Multiple cards came in quickly with 0% interest. Stay organized so you don't get into trouble! =)

  • Columbus, OH · Member since 2018 · 1 post · 0 votes
    7y

    @Maurice Colbert....I am also looking for information on F&G. I honestly have not had such a good experience so far. I'm going through the credit removal phase right now from my first round. Kaydem Credit has made mistakes along the way prolonging the process. 

    How do you use PayPal to pull funds off of the card. I have not received very much feedback from F&G unfortunately. 

  • Flipper · Hartford, CT · Member since 2017 · 89 posts · 10 votes
    7y

    @Corey Robinson when do you pay the credit card advances back,

    is it monthly?

  • Investor · Fort Myers, FL · Member since 2017 · 40 posts · 65 votes
    7y

    @Regina Jones yea it's monthly so you would have to factor that into your costs.  I ended up using my business to source the funds for deals.

  • Rental Property Investor · Huntsville, AL · Member since 2019 · 21 posts · 7 votes
    7y

    What prevents people from just going to Wallethub or any other card comparison site and doing this on their own?

    https://wallethub.com/credit-cards/good-credit-business-0-apr/

  • Member since 2019 · 1 post · 0 votes
    7y

    Sabrina with fund & grow has been excellent! She walked me through the process and explained every step along the way! It has been a great experience with her so far! Can't wait for the second round of funding!

  • Rental Property Investor · CA · Member since 2018 · 135 posts · 174 votes
    7y

    Oh man..... So many damn things to consider. This thread is off the damn hook! I LOVE IT!!!!!!

    First of all - all these fake accounts praising F&G. You have to be a fool not to see that they were created specifically for this purpose. Just as Jason Gines said – obvious red flag.

    Second – There is nothing a company can do with your credit that YOU yourself cannot accomplish. Fixing credit – you can do that yourself. Negotiating to remove bad credit entries – you can do that yourself. Disputing anything the credit bureau got incorrectly – you can do that yourself. Applying for CASH ADVANCE – are you freaking kidding me, YOU CAN DO THAT YOURSELF. There is absolutely 0 reasons to pay somebody a fee to apply for cash advances for you lmao.

    Third – Credit card debt is some of the most brutal debt you can get yourself into. My time as a personal banker has provided me with the opportunity to meet a lot of people who are neck deep in 20% APR debt and CANNOT get out of it!!! It is absolutely insane. What do you think happens when that teaser rate of 0% APR runs out after 12,18 or 24 months?

    Fourth – Now I am not a lender, so maybe somebody else can chip in. (Any MLOs out there wanna comment? I could be incorrect.) Say you have gone through the process and got yourself an insane amount of cash advance capital that is enough to fund an investment property…. Seeing how BP is mostly geared towards the BRRRRRRRR method (enough Rs? If not – heres some more: RRRRRR) What happens after you got your Cash Advance funds, got the property, did the reno, placed a tenant and now its time to refinance….. What is the lender going to think when they run your reports and see that you owe 13k here, 15k there, 8.5k over yonder, 10.4k to the “lolwtf credit union”, 4k to the “we’lldrownyouinCCdebt financial”, 7k to “bankofohmanwejustFedyou” Whats gonna happen then? Are you going to get some favorable rates for refinancing? I doubt it. If at all…….. Now your 24 months of free chicken are over and you are…… For the lack of a better term….. F. in the A.

    This is just my personal opinion and I might be completely incorrect on my 4th point, but this sounds like the type of crap that got us Dodd Frank in the first place.

    Now I’d LOVE to hear an opinion of some MLOs / underwriters on this (preferably someone with more than one freaking post to their name lmao).

    @Jay Hinrichs, you are a HML. what do you think??

  • Nadia JarrettPro Member
    Member since 2018 · 14 posts · 1 vote
    7y

    Hey Justin Sheley started this thread. Justin I'd like to hear where you are now with fund and grow. Did you BRRR? Did you have a hard time refinancing? where you able to repay the CC before your 0% intro rate expired. I see a lot of first round posts. Id like to hear from some others who have purchased and refi'd or sold and paid the CC back.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Pavel Shemyakin:

    Oh man..... So many damn things to consider. This thread is off the damn hook! I LOVE IT!!!!!!

    First of all - all these fake accounts praising F&G. You have to be a fool not to see that they were created specifically for this purpose. Just as Jason Gines said – obvious red flag.

    Second – There is nothing a company can do with your credit that YOU yourself cannot accomplish. Fixing credit – you can do that yourself. Negotiating to remove bad credit entries – you can do that yourself. Disputing anything the credit bureau got incorrectly – you can do that yourself. Applying for CASH ADVANCE – are you freaking kidding me, YOU CAN DO THAT YOURSELF. There is absolutely 0 reasons to pay somebody a fee to apply for cash advances for you lmao.

    Third – Credit card debt is some of the most brutal debt you can get yourself into. My time as a personal banker has provided me with the opportunity to meet a lot of people who are neck deep in 20% APR debt and CANNOT get out of it!!! It is absolutely insane. What do you think happens when that teaser rate of 0% APR runs out after 12,18 or 24 months?

    Fourth – Now I am not a lender, so maybe somebody else can chip in. (Any MLOs out there wanna comment? I could be incorrect.) Say you have gone through the process and got yourself an insane amount of cash advance capital that is enough to fund an investment property…. Seeing how BP is mostly geared towards the BRRRRRRRR method (enough Rs? If not – heres some more: RRRRRR) What happens after you got your Cash Advance funds, got the property, did the reno, placed a tenant and now its time to refinance….. What is the lender going to think when they run your reports and see that you owe 13k here, 15k there, 8.5k over yonder, 10.4k to the “lolwtf credit union”, 4k to the “we’lldrownyouinCCdebt financial”, 7k to “bankofohmanwejustFedyou” Whats gonna happen then? Are you going to get some favorable rates for refinancing? I doubt it. If at all…….. Now your 24 months of free chicken are over and you are…… For the lack of a better term….. F. in the A.

    This is just my personal opinion and I might be completely incorrect on my 4th point, but this sounds like the type of crap that got us Dodd Frank in the first place.

    Now I’d LOVE to hear an opinion of some MLOs / underwriters on this (preferably someone with more than one freaking post to their name lmao).

    @Jay Hinrichs, you are a HML. what do you think??

    to me highly risky..  and many frankly don't have the personal habits to not get caught up in CC Hell..  I only see this working if your a flipper and you never hold anything..  and use these funds ONLY for rehab work then exit and pay card off.

    your fico will go down 100 points you pull all this credit.  

  • Las Vegas, NV · Member since 2018 · 100 posts · 140 votes
    7y

    Apart from the initial inquiry, BUSINESS credit cards (*) do not report to your personal credit, hence their attractiveness 

    If a deal won’t stand the 3% fee, and be completed within the 12 months promotional period, the deal probably isn’t worth doing !

    * Capital One & Discover cards DO report to personal credit 

    These companies have access to lesser known banks beyond the high street obvious card providers, and how best to apply to them, as in your business profile, that’s what you are paying for.

  • Las Vegas, NV · Member since 2018 · 100 posts · 140 votes
    7y

    Your FICo will go down slightly due to inquiries, it will not go down by 100....

  • Rental Property Investor · CA · Member since 2018 · 135 posts · 174 votes
    7y

    @Account Closed

    So lets talk about business profile....  Do they set you up with DNB number? Dont you have to have a proven NET 30 record before you can get large amounts?

    You are telling me these guys are able to set you up with BUSINESS credit without PG right out of the gate? Seems wrong.

  • Las Vegas, NV · Member since 2018 · 100 posts · 140 votes
    7y

    All this talk on here about using other people’s money and creative financing and clever tactics....and when I comes to it you’re scared of a plastic card ??

    There is no cheaper borrowing than 0%......business cards offer that, often for a year or more, here in the UK we get 2/3 year offers at 0%

    And before anyone mentions the 3% fee, the sign on bonus will cover that too....and if you know how to do transfers with a mule card, you can cut the fee right down

  • Rental Property Investor · CA · Member since 2018 · 135 posts · 174 votes
    7y

    @Account Closed

    I'll ask again. What about DNB number and no PG without NET 30 record?

  • Las Vegas, NV · Member since 2018 · 100 posts · 140 votes
    7y
    Originally posted by @Pavel Shemyakin:

    @Account Closed

    So lets talk about business profile....  Do they set you up with DNB number? Dont you have to have a proven NET 30 record before you can get large amounts?

    You are telling me these guys are able to set you up with BUSINESS credit without PG right out of the gate? Seems wrong.

     I’m talking in general about business cards, I don’t have any experience with this company

    Nobody gets cards without PG, that’s nobody this side of multi millionaires, I don’t care who tells you different....it’s not going to happen

    Duns and net 30 is easy to do yourself, I did ! 

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

    I have not worked with these guys but my brother in law has and he says his experience has been good and he has been able to BRRRR at least 1rental. I, however, agree with @Jay Hinrichs. It makes more sense to me if your a flipper and only going to use the funds for rehab cost and have the discipline to not go overboard.

    As for being able to get business credit, fix credit or get advances on your own, sure you could but most people don't know how to do that or don't have the time. and frankly, you could do anything on your own. But that's why businesses exist, I mean why go to a restaurant when you could grow your own food and cook at home.  Why hire a banker to manage your money when you could invest on your own or hire a contractor when you could learn to build or rehab a home on your own ect..ect. But to each his own. 

  • Las Vegas, NV · Member since 2018 · 100 posts · 140 votes
    7y
    Originally posted by @Pavel Shemyakin:

    @Account Closed

    I'll ask again. What about DNB number and no PG without NET 30 record?

     I’ll tell you again.....no PG is NEVER going to happen !!

  • Rental Property Investor · Valley Stream NY · Member since 2019 · 51 posts · 10 votes
    7y

    @Justin Sheley I currently work along with Fund and Grow and this is my first round of funding and they got me $79k and fund and grow work along side with a company called Plastiq that wire the money on your behalf and then they charge the credit cards thats was accumulated from fund and grow. That’s basically how it works.

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