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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  • Justin SheleyBusiness Member
    OP
    Investor · Rockford, IL · Member since 2016 · 94 posts · 220 votes
    9y

    @Jaye Seay I've received $29,000 so far. I was hampered by the fact that I'm in the process of using another card to cover a homes renovation and I haven't refinanced out a paid down that existing debt. So that hurt my first round of business credit. 

  • Orlando, FL · Member since 2017 · 241 posts · 254 votes
    9y

    @Justin Sheley Thanks for posting this, it is valuable information for my decision process -- and others too I am sure.

  • Brighton, MI · Member since 2016 · 49 posts · 10 votes
    9y
    I'll be curious about the progress. Thanks for posting.
  • Real Estate Investor · Middle Island, NY · Member since 2016 · 147 posts · 68 votes
    9y

    Any update on this? Were you able to cash out the credit?

  • Garrett MayPro Member
    Investor · Cleveland, OH · Member since 2008 · 67 posts · 14 votes
    9y

    @Micah Markowitz

    Have you actually used Midwest Corporate Credit for funding, and if so, what was your experience?

    Garrett

  • Financial Advisor · St Louis, MO · Member since 2016 · 25 posts · 44 votes
    9y

    Just for those who are curious a very legit way to get money off the credit cards, find a "no fee on cash advance" credit card.  Request a cash advance, start paying interest, but make a balance transfer from one of the cards to pay it off immediately and you won't pay any interest.

    You should try to find one with a high enough limit to make it easy enough to do (not $just 500/advance!).  Use it like an ATM.  Totally legit, completely legal.

    This link in 5 years from now will for sure be useless, but I'll post it for us for the "now."  It's of the first ones that came up with Google.

    http://www.magnifymoney.com/blog/best-of/20-credit...

    http://www.thesimpledollar.com/credit-cards-with-c...

  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    9y

    I am glad I have come across this post, I am going to stop playing and pull the trigger on Fund & Grow, its all about educating yourself and making the correct moves. As I can see @Corey Robinson and @Justin Sheley are making moves. The longer I wait and make excuses the longer my journey will take.  Thanks everyone who's been honest on this post. Wish me Luck!!

  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    9y

    Also I have a question, so once you have Fund & Grow help with getting the financing, should you be building up your "own" entity also on the side so that you can continue to obtain business financing? Someone help me out on that.

  • Justin SheleyBusiness Member
    OP
    Investor · Rockford, IL · Member since 2016 · 94 posts · 220 votes
    9y

    @Maurice Colbert

    I would definitely suggest you create an LLC in addition to what Fund & Grow is doing. I know there is a lot of posts on this site abut when to create an LLC and how to do it.

    I have the cards from my first round at F&G, but have not successfully turned them into cash. I may not end up evening using them for cash, but instead might use them to cover rehab expenses. Then refinance once the project is complete. I just haven't found the right home that needs a large rehab yet.

  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    9y

    Thanks for the responds @Justin Sheley

  • Real Estate Agent / Investor · Houston, TX · Member since 2016 · 73 posts · 36 votes
    9y

    @Justin Sheley Were you able to get instructions on how they remove those inquiries? Very curious and skeptical of this part of the process.

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y

    Reading all this gives me a sick feeling in the pit of my stomach like when someone close to you is about to make a bad decision.  Anxiety, really. I'm worried for my people!

    I had about $200k in revolving credit lines at one point. 14 cards if I remember right. Personal and thru 2 business entities.  

    I did it myself, not paying $3000 for a program.  (just love how they make you feel like it's a privilege and you're special for not paying $3500 LOL)  Genius!  Anywho....

    The cards monitor your credit the whole time you own them.  All of the sudden, my lines were closing and being called even though I never missed a payment.  0% intro periods were revoked and being replaced by penalty pricing (one rate increased to 30%)  simply because I was seen as having too much credit available.  Too many inquiries.  High utilization rates from other cards that weren't even the same company.

    So beware.  Most know my stance on debt and this was one reason why.  Watch yourselves out there.  When the music stops, my hope is all of you find a chair!

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Steve Vaughan  agreed very slippery slope... we all hear about Hewlit and Packard starting in a garage with 15k of credit cards in the early days... and well look where they ended up.. so who knows.. but it sure is a gamble. I suspect many many folks have tried this and ended up in bankruptcy and basically ruined their credit life for a decade... so like U said one must be very very cautious with this approach....

    I just look back when I was doing pre foreclosure work.. before it became illegal in Oregon and Washingon.. Or let me say HIGHLY regulated... and I would sit with folks.. and for the life of them they could not figure out how they got where they were... Of course most of the time is just the inability to manage consumer debt.. And they don't have the ability to make big hits..  I can see it in flipping where you can make 50k and pay down your credit card.. but what happens if you have a bummer and we all do and you lose 20k... what then ?

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y
    Originally posted by @Micah Markowitz:

    @Laurie Clark How many cards?  Also, what does your credit score look like, and how old is your relationship with the card that's so big?  Midwest Corporate Credit told me that they like to wait to request the increases until after a big of seasoning of the cards, since the limit increase doesn't always work so quickly.

    @Steve Vaughan Most people don't have that problem. If you know how to use them properly (and don't max them all out to 100%!) that is a rare occurrence.  Also, with business cards, most lenders won't know the other ones exist, since they don't report to your personal credit history, so there's less chance for that to occur.

     The one specifically that closed my line and shot up to 30% was a business acct.  The company, Advanta, was struggling. Per the fine print (that's in ALL cards) they could pretty much do whatever they  wanted and did. It wasn't poor credit utilisation or maxing things out on my end, but thanks for assuming I was reckless.

    If a calm warning to others offends you, Micah, I'll share the afterword. I haven't had a credit card or consumer debt of any kind, nor have I had to borrow from a bank for any reason since 2012.  I am paying off 2-3 mortgages a year and can also buy whatever RE  I care to , but go ahead and keep playing your little card game.  

    Disclose if and how you benefit when others get into this while you're at it.

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    9y
    Originally posted by @Micah Markowitz:

    @Steve Vaughan You are definitely lucky enough to be out of the CC game.  Ideally you should be moving to a strategy likes yours to have REAL money flowing through your system.

    You haven't borrowed from a bank, but you have mortgages.  So you're still borrowing, you just haven't taken out a new loan yet.  You're on the other side of the game - Many people on this specific forum are just starting out, and this is a very valid and time-testing true way to do it.

    If anyone wants to make referral fees with Midwest Corporate Credit, they can contact Bailey over there and get paid referral fees for passing on their friends and family.  There are no add-on fees (you pay the same if you came in cold, or if you got referred), their fees stay the same for everyone no matter what, and they are very honest.  Please just mention my name or this forum post :)

    The one-time success rate at Midwest is just a different business model than just the $3500/year.  Midwest won't charge you for the limit increases, only the initial approvals, and it's a lifetime consultation fee.

     Thanks. Yes, mostly true except for the luck part. Self-managing a few dozen rentals, driving around in a beater eating pb&j's while dressed as a homeless-looking construction painter plumber was very on purpose. Not lucky. Freedom from the cubicle and cards and their fine print was just a little important to me :). 

    I also like leaving for 2 weeks having only 6 pieces of mail in my mailbox when I get back. The credit card days made sorting all the solicitations & junk mail a full time job. Get a bigger mailbox, ya'll.

    Thanks for sharing how you (or anyone) benefits by sending people to this company.   MCC won't have a chair for anyone though when the music stops and the card co's struggle and start enforcing fine print. They won't care if your flip runs long or over-budget. If they randomly review your credit and don't like something...  I'm just glad I didn't pay for my lesson at the back end AND the front.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Steve Vaughan SAME thing with HELOC's folks don't read the fine print.. ANY heloc can be called with out any warning.. no future draws and balance due... at the sole discretion of the bank.. you know those 20 page tiny print mortgages its in there believe me... LOL

    Of course those that sell this system tout it.. just like any other guru.... but I am sure some folks have used it well and do fine.. the caution comes from NO actual cash and good credit folks that get leveraged up with no reserves it does not go right they get their butts kicked.. 

    Just like spending 30k on a guru program.. if U got the dough in your account and can cut a check go for it if that's what yo want to do.. if you have to borrow it... well your setting yourself up for some heartache big time.

  • Financial Advisor · St Louis, MO · Member since 2016 · 25 posts · 44 votes
    9y

    "Banks are the place you go for money when you can prove that you don't need it."

  • Investor · Philadelphia, PA · Member since 2010 · 739 posts · 372 votes
    9y

    @Micah Markowitz

    How much do you get for referrals.  Christ I've never seen someone push something so hard as you've pushed this Midwest bank

  • Financial Advisor · St Louis, MO · Member since 2016 · 25 posts · 44 votes
    9y

    @Chris Purcell

    Call Bailey yourself and find out.  I'm not exactly sure why you think I'm pushing it so hard.  This is a pretty non-aggressive sales technique if you ask me.  Posting on an open forum?  PUSHING is telemarketing.  I'm not doing that.  

    Also, they're not a bank - they're a consulting firm with direct bank relationships.  I want people to make informed decisions.  Trust me, I can make far more money with other forms of income, but this is pretty passive.  They're very careful about relationships - they first question they ask is, "How did you hear about us?"

    The reason to "push" them is because they do a great job, and they are really nice, and they make you want to sell their product.

  • Investor · Chandler, AZ · Member since 2016 · 26 posts · 7 votes
    9y

    Any progress since the last post on these funding resources?

  • Real Estate Investor · Burlington, VT · Member since 2010 · 2k+ posts · 1k+ votes
    9y

    @Justin Sheley Justin - any further update?  Scrolling through the 6 pages (popular post!), sounds like you received $29k in business credit, although the business credit is still impacted by your personal credit - is that right?  And you're waiting to do another round of funding soon?

    Thanks,

    Tom

  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    9y
    Well today I pulled the trigger and paid to start the process! Crossing fingers
  • Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
    9y
    Ugh Laurie Clark is for sure a shill account. 1 post. Standard testimonial from just another happy customer? And Micah Markowitz we get it. You work for them and get a referall for mentioning your post. But please go hijack another thread. This one is for F&D, and following the results of actual users. One mention of the competition was enough for people to be able to check out both companies and decide for themselves. Lastly, when Jay talks I listen. The 2 veterans on this board are telling it like it is so take heed people. These things work if you can get in and get out. And if you know how to manage money. Using them for a down payment seem like the worst idea in ever heard, at least for a buy and hold, flips a different beast. Cash flow will not cover the mortgage, expenses, AND credit card payments, at least on most deals. Maybe title companies will start accepting CC and we can just buy up $10k houses by the handful. I really do with those the best of luck who are trying this method. Following along to see how some of these stories play out. I truly hope it's a gateway to the next HP as mentioned above.
  • Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
    9y

    OMG.....defense....testimonial story....call to action for the referral.  Every single post is the same for this MWCC employee!   I don't want to hear about your stories.  Tell me about what you've done, or GTFO.

    Yes, you can do whatever you want.  Actually the forum post has a title, and it has an OP, and typically on the internet we respect the OP and what the purpose of the thread was for.  That's just me.  All I was pointing out was the title of the thread,  and why I subscribed.  I also have the right to unsubscribe, which I Have no problem doing if this kind of hijacking continues.     I realize you have only been here for long enough to accumulate 21 posts, but that's how this COMMUNITY works.  Yes, community.  I'm just trying to make sure newbies see through the crap pushed by shills.  Oh I heard this amazing story about 50 guys who bought a million homes on CC..... so I'll nicely this time.  Please do not come onto this thread and post another BS story about a company already mentioned.  We get it.  You've told us the same story more than once now.   Move on.  Thanks!

  • Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
    9y

    "ignore user" is a new tool I just learned to use, right after "report abuse". 

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