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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  • JD McKelvey
    Rental Property Investor · Member since 2021 · 6 posts · 3 votes
    5y

    Think my wife and I are about to take the plunge. Will update with any useful information.

    1Reply
  • An Bui
    Member since 2021 · 4 posts · 0 votes
    5y

    Anyone know what is the minimum monthly payment for those credit card? Is it 1% or 2% of the balance?

    0Reply
  • Sathiya Gane
    Investor · NC · Member since 2020 · 20 posts · 11 votes
    5y
    Originally posted by @Jason Alonso:
    Originally posted by @Account Closed:

    OMG the "WORST", should have never listen to Clayton Morris. I applied with Fund & Grow and at first everything was going well until I received my EIN # (IRS Doc) and notice the name was incorrect on all the document, so I called in immediately and informed them about the name was incorrect and there response were " we can fix it once everything goes thru" so then I said ok they probably know what they are doing. I started receiving credit cards in the incorrect name so I called them back and told them that the name is incorrect and I would like to create an LLC for the EIN number and credit cards which was included with the service, there response were " once the first round of funding is complete we will correct everything" so I still had faith in them. Now in order to liquidate the funds that Fund and Grow received on my behalf I have to go thru a 3rd party company (Plastiq) which is referred by Fund and Grow, they now charge a percentage to fund the money on my behalf.

    So then I seen a property I was interested in and when I told the company how I was going to fund the transaction I was told they do not accept that because it would be consider a loan against a loan (debt to ratio), so basically the credit cards that Fund and Grow got for me in the incorrect name could not work in the real estate world. Fund and grow also stated they fix your credit after funding, but there's a catch to that also because you have to pay a 3rd party company to clear up the inquiries that was pull by Fund and Grow so there is nothing included in the price you pay with Fund and Grow. 

    So I went out on my own and got my own LLC with the correct name and credit cards link to my LLC because fund and grow couldn't get it right the first time, so basically I paid Fund & Grow for nothing. I called all the credit card company's to change the name and EIN number to the one I created and they stated that I would have to do a new application with the new EIN number which means running my credit again (mind you my credit score is 800 and above).

    Fund and Grow have a 60 day money back guarantee so of course I passed it because they kept giving me the run around, so when I inquire about a refund for legitimate reasons 

    1: Incorrect name (Can't use the funds if the names don't match), 

    2: Real Estate world wouldn't accept Plastiq as a form of payment, 

    3: Funds are not in an LLC like I requested,

    4: I had to clear up my own credit with all the bureaus, 

    5: I had to do everything on my own that they were paid to do, 

    they said "no refund" so I filled a smalls claim against Fund & Grow for my refund. STAY AWAY FROM CLAYTON MORRIS AND FUND & GROW......

    Hello Tony,

    I am sorry that you are not satisfied with the services you received, or the $69,000 in 0% interest business credit we, Fund and Grow, obtained for you. When we spoke on the phone, I remember you telling me that you were not able to use the funding for real estate because you told the buyer you were purchasing the property with a credit card. You also told me that you have used the credit in other ways. When reviewing your file again, I see that you signed up with us on 3/29/19, and then called in on 4/9/19, saying that the name you provided was no longer your name and you did a legal name change. All the documents that were submitted to us had your previous name on them, including your credit reports. As I explained on the phone, we would need the proper identification from you in order to change the name on your EIN document from the IRS and the name on your business credit accounts. You told us at that time that everything was fine and you understood the issue. Your account manager made it very clear that he would be able to change the names on the accounts if you would submit the proper documentation as stated above. Included in our membership, is the creation of an LLC, free of charge. All you would be responsible for is the state filing fees. We recommend to all our clients that they do not use a brand-new business entity to obtain funding due to the length of time the business has been established. We have had hundreds of clients express how they were able to use the funding we obtained on their behalf to purchase real estate. Also, during the sign up process and through the membership, it is made clear that we will provide you with the tools to remove any inquiry that results in business funding, OR you can work with our affiliate and have the professional credit repair team do it for you, which is an extra charge. As far as the new LLC you created, the banks you called are 100% correct when they told you that you cannot change the EIN under an existing business account. Therefore, we told you to send us your new identification documents so we can change everything for you, which you declined. I see that you applied for new business credit under your new LLC, as you mentioned above, however, you said you cannot use business credit to accomplish what you want with the business credit we obtained for you. I hope the new credit cards work out better than the ones we obtained you. As far as your reasons for refunding, we told you we would correct your name, you declined. We told you how to go about using Plastiq to purchase real estate and you did not listen to our recommendations. We explained to you that the funds would be set up under a sole proprietorship, which you agreed to. We gave you the option to work with our credit repair affiliate and gave you the tools to remove the inquiries. I am not sure what you did on your own, but we were the ones who obtained the credit for you and gave you all the tools needed to build on it. The refund policy is simple, "When a client receives service, in the form of credit gained or utilizing complimentary services, services will be considered rendered. If a client does not receive service as stated above, client can request refund and enroll again at a later time."

    We are more than willing to help you and continue your membership with Fund and Grow. 

    So Finally Fund & Grow team member accepts that they are creating this fake profile and giving raring review .This makes me  highly skeptical to work with you guys.

    0Reply
  • Shera Linares
    Investor · Foothill Ranch, CA · Member since 2021 · 35 posts · 25 votes
    5y

    @JD McKelvey Did you end up taking the plunge with your wife? I am wondering if anyone now has used F&G since this thread is several years old.

    0Reply
  • Shera Linares
    Investor · Foothill Ranch, CA · Member since 2021 · 35 posts · 25 votes
    5y
    Originally posted by @Sergio Roman II:

    Ive read through 22 of the 35 pages of this forum and the hardest question to get a solid answer on is how to liquidate multiple lines of credit into actual cash that can be used to aquire RE.

    I agree with many others that it might be expecting too much from this type of financing.

    Using the cards to pay contractors for rehabs (the contractors tht actually accept CCs) is a real option with this. But what everyone wishes this could do is allow you to completely purchase a property with the credit turned into cash. 

    strategies im still uncertain about: Paypal/Venmo (due to small volumes and fees), Purchasing gold/gift cards/etc and re-selling or cashing them out. Ive looked through my personal CCs and my one business credit line (not an actual card) and anything resembling "manufactured spending" is against the banks terms of use in the contract.

    One  *possible* option if youre already self-managing your properties and use a landlord/tenent portal (like app-folio or buildium) that is linked to an operating account would be to make contributions to your landlord account via your CC(s) and then cut a check from the operating account. I've used this to pay a painter and landscaper for big projects via my PM in the past for a fee (i think 3%). Not sure if there are other implications to this though. I'd enjoy reading someone that may know the backside of that.

    Wow @Sergio. You got through a hell of a lot more pages than I...I got through page 5 and had to skip to the end to see if anyone has recently used F&G. As for liquidating the card, I actually did a cash advance option through my personal credit card back in 2019 because they were offering 0% APR for 18 months. At the time, I cash advanced $12,000 for a nominal fee to help towards a down payment. Then when I refinanced a year later, I paid the balance off on my credit card. I'm guessing the same concept would be used if I were to go through F&G. The problem I see is usually the 0% APR options are introductory promotions when you get a new credit card. Once you pay the card back, the 0% APR promotion no longer exists, so I would have to go out and get another new card.

    0Reply
  • Ian Cherkowski
    Member since 2020 · 6 posts · 6 votes
    5y

    I had 800 fico and paid off personal credit cards before I started with Fund & Grow. I got $50k and my wife got $50k. I used a hard money lender that would do 90% of cost price and 100% of rehab. I had to have enough cash in bank account before they would do the loan. After purchasing I had to pay the contractor some money to start the rehab. After a few items are completed I applied for a rehab draw from the lender. They sent an inspector and then sent me a check for the rehab that was done. So the funds are great to cover the rehab costs between draws but not for down payment cash. I sold the first flip and used the funds to pay down my personal credit under 30% and business credit under 40% so that I can start the 2nd round of funding with them. 

    2Reply
  • Bernard Chouinard
    Leicester, MA · Member since 2016 · 137 posts · 36 votes
    4y

    I bought into fund and grow which allows for a 2nd person to sign up as well. If anyone is looking to do this week can split the cost 50/50.  $1900 for your half. Reach out if interested. 

    0Reply
  • Avery Coleman
    Rental Property Investor · Atlanta, GA · Member since 2014 · 14 posts · 7 votes
    4y
    Originally posted by @Ian Cherkowski:

    I had 800 fico and paid off personal credit cards before I started with Fund & Grow. I got $50k and my wife got $50k. I used a hard money lender that would do 90% of cost price and 100% of rehab. I had to have enough cash in bank account before they would do the loan. After purchasing I had to pay the contractor some money to start the rehab. After a few items are completed I applied for a rehab draw from the lender. They sent an inspector and then sent me a check for the rehab that was done. So the funds are great to cover the rehab costs between draws but not for down payment cash. I sold the first flip and used the funds to pay down my personal credit under 30% and business credit under 40% so that I can start the 2nd round of funding with them. 

     Hey Ian, thanks for sharing. What hard money lender did you use, if you don't mind me asking?

    0Reply
  • Ian Cherkowski
    Member since 2020 · 6 posts · 6 votes
    4y
    Originally posted by @Avery Coleman:
    Originally posted by @Ian Cherkowski:

    I had 800 fico and paid off personal credit cards before I started with Fund & Grow. I got $50k and my wife got $50k. I used a hard money lender that would do 90% of cost price and 100% of rehab. I had to have enough cash in bank account before they would do the loan. After purchasing I had to pay the contractor some money to start the rehab. After a few items are completed I applied for a rehab draw from the lender. They sent an inspector and then sent me a check for the rehab that was done. So the funds are great to cover the rehab costs between draws but not for down payment cash. I sold the first flip and used the funds to pay down my personal credit under 30% and business credit under 40% so that I can start the 2nd round of funding with them. 

     Hey Ian, thanks for sharing. What hard money lender did you use, if you don't mind me asking?

    I used Sherman Bridge https://www.shermanbridge.com/

    0Reply
  • Ryan H.
    Investor · Portland, OR · Member since 2014 · 100 posts · 25 votes
    4y

    [Removed]

    0Reply
  • Ryan H.
    Investor · Portland, OR · Member since 2014 · 100 posts · 25 votes
    4y

    I'd really like to explore working with Fund & Grow. I own a healthcare practice and could certainly obtain business credit cards for that business, but I'm more interested in obtaining business credit cards to assist with investing in real estate (which is what so many of their clients do). Thing is - in the eyes of the IRS my rental activities don't qualify as a business.  What to do?

    0Reply
  • John Mason
    Member since 2024 · 1k+ posts · 351 votes
    2y

    https://retipster.com/fundandgrowreview/

    0Reply
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