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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  • Developer · Nashville, TN · Member since 2016 · 484 posts · 406 votes
    9y

    @Michael McKenzie actually I've personally used neither. I started the process with MCC, and they were great, but our TK company here in Indy has been swamped with new business, and I'm focused on that. I'm researching moving my personal LLC, and until that happens, I'm not making any moves. Once this is resolved, I'll get the process started with MCC. I like their program and approach better.

  • Lender · Cary, NC · Member since 2016 · 82 posts · 13 votes
    9y

    @Jeff Schechter thanks for the info. Also let me know when you're ready I'll connect you with my guy over there.

  • Wholesaler · Roanoke, VA · Member since 2015 · 277 posts · 95 votes
    9y

    Does anybody have any alternatives to the 2 companies that have been presented? 

  • Houston, TX · Member since 2017 · 23 posts · 6 votes
    9y
    Originally posted by @Justin Sheley:

    So I need to clear the air a bit with Fund & Grow. I had reached a pretty frustrated level with my rep their, and although I don't regret getting the line of credit, I was beginning to regret the company I chose to do it with. I mentioned it before but I had not received a reply to an email in over a month, and I thought I was being smart by looking in my junk mail box in gmail as well. However, as I was literally on hold to talk to my F&G rep, I opened my trash to clear it out, and wouldn't you know it was a reply from Robert Moran for every email I sent him. He was just as confused as I was, as to why I wasn't receiving his emails. So although he probably will never see this forum, I do feel like I owe him an apology. I don't understand why in the world those email would go straight to my trash. The only thing I can think of is that I had been consistently deleting the more "spam-ish" emails that F&G has been sending me. (Side note, these emails are as if their program doesn't know I've already paid for and utilized their program). So perhaps my gmail was trying to be "smart" and automatically trash messages from them. I really don't know. Regardless, that issue was cleared up, and I was relieved to know that I was not actually getting the cold shoulder.

    So at this point I do have the instructions on clearing inquires from my credit report, so I'll update you guys on how that goes. And although I am also so curious about the turing the credit to cash methods, I actually have the perfect BRRRR project right now that I'm going to use the cards for the rehab, so I don't need to worry about the transfer into cash.

    ---

    Justin did you ever get any of those inquires off your credit report?

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

    I haven't started the process of removing the inquiries. I really need to get going on that. I was experiencing some trouble turning my credit into cash. Although I'm currently using my funds for a rehab, I soon realized that I can't pay my roofer, AC guy, other other misc jobs with a credit card. Buying supplies was easy, but I needed to turn some of the credit into cash. So I looked into convience checks, but my cards wouldn't issue those to me. So I signed up for an account to buy gold. But to be honest, I just had trouble moving forward with that strategy. Just got a bad feeling, although it probably is a legitimate way to do it. Ultimately, at 3:30am it came to me to just transfer money to myself using the cash app. I added my credit card as a funding source and was able to send the money to myself that way. Downside is it's a 3% fee. So my $4500 transfer cost me $135 in fees.

    We also had an exciting moment as we finished our first BRRRR on another home.

    Purchase: $40,000

    Rehab: $1500

    Rents: $950

    Appraised: $74,000

    Refinanced: $43,000

    We plan on using our credit from F&G to do this again with the property I'm currently working on. Pretty amazing as I begin to learn this business how these deals can work out. Definitely gives a bright hope for the future!

  • Rental Property Investor · Blacklick, OH · Member since 2015 · 111 posts · 80 votes
    9y
    Justin Sheley that $145 isn't really bad, but I really think it might be a easier way. Like use swipe or some type of app like you did for cash app. That's a good idea. Good luck. I'm in process of raising the limits.
  • Flipper · Morrisville, PA · Member since 2010 · 36 posts · 6 votes
    9y

    What is the minimum credit score I'd need to participate in this program?

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

    @James Dodson I'm not sure if there is a minimum credit score, but the amount you can get is mostly based on credit score. However, F&G does offer a credit repair program as well to get people's credit score up.

  • Flipper · Morrisville, PA · Member since 2010 · 36 posts · 6 votes
    9y

    Thanks

  • Developer · Nashville, TN · Member since 2016 · 484 posts · 406 votes
    9y

    Most of these services work well with 680 or above.

  • Investor · Pueblo, CO · Member since 2012 · 96 posts · 63 votes
    9y

    "just transfer money to myself using the cash app"

    Not sure I understand this part.  What app is this?

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

    @Sam Dangremond There are various phone apps like "Cash" or "Venmo" where you can put in the CC number as the funding source.  Downside is it's subject to fees, although they're not terrible. $145 was quoted above.

    - Tom

  • Investor · Honolulu, HI · Member since 2016 · 362 posts · 93 votes
    9y

    @Justin Sheley I tried using the Cash app to fund myself money from my personal credit card. I received an email stating the transaction went through then a minute later got another email saying the "For your protection, Square canceled this request". How did you get the app to operate correctly?

  • Investor · Fort Myers, FL · Member since 2017 · 40 posts · 65 votes
    9y

    Has anybody tried getting balance transfer checks for one of their personal credit cards, take the cash off their personal account and then transfer the balance to one of their business credit cards?

  • Lake Elsinore, CA · Member since 2016 · 8 posts · 15 votes
    9y

    I can't speak to the Fund and Grow credit cards, but I recently had a balance transfer offer on a personal card that would not do cash at the promotional rate. I  used a couple of other cards to buy gold and then transferred them to the 0% offer. I held the gold for a while as I did not need the cash immediately. I lost about 1.63% when all was said and done, not bad considering I got 12 months at 0% for my troubles.

  • Adelanto, CA · Member since 2016 · 2 posts · 0 votes
    9y

    @Justin Sheley and Corey Robinson Thanks for sharing your positive experiences with Fund and Grow. Just curious after the initial period of 0% Interest Rates is over and say for whaever reason I was not able to do a balance transfer.

    Let's say for example on 1 Business Credit Card charges (15% with a Balance Owed $10K).

    How would you calculate the minimum monthly payment be at for 15% and a balance of $10K?

    Would the minimum payment be at ($1,500 Monthly) to that 1 Business Credit Card? 

    (Or can you provide sample on 1 of your Business Credit Card that Charges an Specific%% that has an amount$$$ Balance Owed. What was the Minimum Monthly Payment was like?)

    Please advise. Thanks in advance.

  • Lake Elsinore, CA · Member since 2016 · 8 posts · 15 votes
    9y

    Typical credit card minimum repayment is 1% of principal + interest. 15% interest is daily rate of .041% assuming 31 days, 1.27% for the month. That means a payment of $227.40 ($100 + $127.40), for you example. Not sure if this is true for the business cards, but I would assume a similar structure. Maybe a higher % of principal.

  • Adelanto, CA · Member since 2016 · 2 posts · 0 votes
    9y

    @Benjamin Centeio Got It, Thanks so much for providing the numbers from the example of thee above (Personal Credit Card) Min Monthly Payment calculations. 

    Anyone else thinks that it might be different calculations in "Business Credit Card" structure?

    Thanks in advance.

  • Lake Elsinore, CA · Member since 2016 · 8 posts · 15 votes
    9y

    @Josh Day I think so long as you buy the gold on one card and then transfer to another you should be fine. I also believe that part of the service with Fund and Grow is helping you get the cash off the cards. I have just signed up for their service so I will share on this forum my experience. I have my initial appointment with them next Friday.

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

    @ Justin Young In order to avoid that I setup my wife with a cash app account and transferred from my account to my wifes. The first time I did it, I got a fraud alert from Chase and they canceled the transaction, but I went online and accepted the transaction as legit and then I haven't had a problem since. Fund & Grow does provide a packet with info on how to turn your credit into cash, however many of the options are very credible in my opinion. The downside of using the cash app is that you can only do $2500 a week. So if you need to free up $100k it would take 10 months to free up the cash, which obviously kinda destroys the usefulness of it. I'm using my credit currently to do a 15k rehab, so it hasn't been to bad for me, but otherwise I'm pretty disenchanted with the F&G strategy. I don't regret giving it a shot, because how else would I learn, but I'm not sure I'll be using it again after this current house is finished.

  • Investor · Fort Myers, FL · Member since 2017 · 40 posts · 65 votes
    9y

    @Justin Sheley which cash app did you use? After I get these inquiries off my Equifax account and get more funds from the second round I wanted to try using venmo.

  • Rental Property Investor · Estero, FL · Member since 2016 · 195 posts · 105 votes
    9y

    I think the question still remains. Has anyone been able to successfully convert all of the credit to cash that used Fund and Grow? 

  • Investor · Honolulu, HI · Member since 2016 · 362 posts · 93 votes
    9y
    Originally posted by Justin@Justin Sheley:

    @ Justin Young In order to avoid that I setup my wife with a cash app account and transferred from my account to my wifes. The first time I did it, I got a fraud alert from Chase and they canceled the transaction, but I went online and accepted the transaction as legit and then I haven't had a problem since. Fund & Grow does provide a packet with info on how to turn your credit into cash, however many of the options are very credible in my opinion. The downside of using the cash app is that you can only do $2500 a week. So if you need to free up $100k it would take 10 months to free up the cash, which obviously kinda destroys the usefulness of it. I'm using my credit currently to do a 15k rehab, so it hasn't been to bad for me, but otherwise I'm pretty disenchanted with the F&G strategy. I don't regret giving it a shot, because how else would I learn, but I'm not sure I'll be using it again after this current house is finished.

     Thanks for the feedback. I'll give that a try and sign my wife to see how the process plays out. Like you said, at least you tried this method and gave it a shot. You're that much more knowledgeable on other means of financing.

  • New to Real Estate · Bronx, NY · Member since 2017 · 36 posts · 7 votes
    9y

    I've been considering it also can you explain your experience in detail after the length of the loan(18months)what is the interest rate at that time?, pretty sure it's still not one percent of the amount borrowed.

  • Roslyn, NY · Member since 2017 · 2 posts · 0 votes
    9y

    What is the fee to transfer money to yourself 

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