Fund & Grow Case Study 2019 (A detailed and in-depth analysis)

Fund & Grow Case Study 2019 (A detailed and in-depth analysis)

Winston Salem, NC · Member since 2014 · 21 posts · 17 votes

Hello all!

After two months of thorough research, my wife and I decided to take the leap into using Fund & Grow to fund our first rental property investment. We decided to use Fund & Grow (F&G) over other similar companies like Midwest Corporate Credit (MCC) because F&G charges less for their services. We will pay a $3,500 upfront fee to get started with F&G which is cheap compared to the 10% fee that MCC would charge on the total amount of business credit that they obtained for you. For example, if MCC obtained $100,000 worth of business credit for you, the total fee would amount to $10,000 based on the 10% fee.

I was inspired by several other BiggerPocket users who have posted similar case studies, so I wanted to add more value by posting my own case study of F&G in an attempt to inform and inspire anyone else who reads this and is hesitant or just starting out. I will try to be as detailed as possible about all of my interactions with the company, and if all goes well, I will post a separate case study about my first investment property and the turnkey company that we decide to use. Let’s get started!

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December 31, 2018 - I signed up to get “pre-qualified” by F&G via Clayton Morris’ website, Morris Invest, so that I could get a $500 off coupon. I only went through the Morris Invest website to get this discount.

SIDENOTE: I personally would never use Morris Invest to buy investment properties because of the countless horror stories I’ve read about the company here on BiggerPockets and various YouTube videos. I will include a few below, but I implore you to do your own research. A simple “morris invest reviews” Google search will give you an abundance of information that will save you thousands, possibly tens of thousands of dollars in the long run.

Scary BiggerPockets Case Study About Morris Invest: https://www.biggerpockets.com/forums/92/topics/392727-morris-invest-case-study-20

Another Scary BiggerPockets Case Study About Morris Invest: https://www.biggerpockets.com/forums/52/topics/562268-turnkey-nightmare-with-morris-invest-indianapolis

Scary video of a Morris Invest property that was sold to an investor https://www.youtube.com/watch?v=z0jXyRHrbYo

Another Scary video of a Morris Invest property that was sold to an investor:

https://www.youtube.com/watch?v=_txQfbuEARA

BACK ON TOPIC: After signing up for the pre-qualification I received an automated email from F&G. The email said that one of their consultants would be reaching out to me shortly to get started, but if I wanted to I could call them using the number provided in the email. I wasted no time and dialed the number. Marty answered. He said that he was on the phone with someone else and asked if he could call me back to which I obliged.

He quickly called back within 2 minutes and began explaining to me in a nutshell what F&G could do for me. He immediately tried to sign me up for the program. I didn’t feel comfortable giving him my credit card so soon - the process seemed a little rushed. I told him I was going to give it a few days to talk it over with my spouse who also happens to be my partner in this (F&G allows you to do the program with a partner at no extra cost). He seemed content with that and sent me an email with some information and his personal line. I would like to add that Marty was very pleasant to speak with. Tomorrow is New Year’s Day, so I will have to wait until the following day to call him.

January 2, 2019 – Welcome to 2019 everyone! Around 11:25 am EST, Marty gave me a call, but I missed it, so he left a voicemail asking if I was ready to sign up for the program. I am ready, so I gave him a call back. After about 20 minutes of personable and enjoyable conversation, Marty got me signed up. The total after the $500 discount was $3,497. I am thrilled with my initial interaction with F&G, at least Marty, he was pleasant to speak with and optimistic about my journey. Of course, there is the inclination to be cynical and say that Marty was just being nice to get a sale to meet some quota, but my intuition expected otherwise.

Here are the key takeaways from today’s call:

  • F&G will start by building both me and my wife’s personal credit before getting us business credit to increase the amount of business credit we will be able to obtain. This will take approximately 6 months. My credit score is at a 706, and my wife is at a 690.
  • F&G will work with us for 18 months total. 6 months of personal credit building, then 12 months of business credit. We do not have to pay any additional costs for the extra 6 months, which is nice.
  • When working with F&G, you do have to sign a power of attorney form. If you aren’t familiar with what this is, it’s a written authorization to represent or act on another's behalf in private affairs, business, or some other legal matter. This may be a little unsettling for some. For me, I don’t mind doing this. You have to make that choice for yourself. They do give you the option with the click of a button to REVOKE the power of attorney at any point during the process if you want.

I received an email to register my account with F&G. Once I signed into the dashboard, there was a video that explains the next steps in the process. You can actually view the unlisted video here: https://www.youtube.com/watch?time_continue=77&v=P3siQvQttUQ

I scheduled my first call with my wife as an attendee for Friday, January 11 at 11:00 am EST which is about a week away. Looking forward to the initial call! I should note that F&G has a large influx of clientele, so you may have to wait upwards of 1-2 weeks before your initial consultation call. If I would have known this, I would have signed on to the program earlier. But now you know! Next update in a week after my first call.

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Most Popular Reply

Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
7y

@Jay Hinrichs

It all smacks of something for nothing and if you just buy these little coupons, everything will change for you because Charlie P. knows the insider's rules to how the sausage is made. I'm not saying that's what it is, but it's certain what it presents itself as. This is not the first time I've listened to a guy named "Ari" tell me he could sell me a foolproof system for making me money, and every other time in that far-off land where "Ari" is a very common name it was not 2 Legit 2 Quit, no, no, no, filoi kai aderfia, not by a long shot.

In any case, the biggest problem, the bottleneck that keeps us from scaling up our ghetto BRRRRing quickly, isn't the cost of borrowed money to keep up with deal flow, it's the lack of affordable competent renovation tradesmen to plan, manage, and carry out the renovating. If I could find and hire those people more easily I could comfortably scale up with the 5.58% rates I'm getting from my bank for cash-out re-financing.

Every renovation outfit currently working in my area has exactly the same problem, and 0% interest on our financing isn't going to make a dent in that. if I want those dudes I'm going to have to train them and manage them.

See this reply in the discussion

63 Replies

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  • Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Jay Hinrichs:
    Originally posted by @Joshua Mayo:

    @Jay Hinrichs  

    Hi Jay,

    I failed to mention this in my post above, but I do not plan to use the personal cards for business.

     Ok why would u pay someone to put applications in for u.  U can do that all on line ???

     My thoughts exactly. Everything that they are doing for you you could easily do yourself. In fact, it's what I've done since 2014 to get to my current 790 credit score. And I didn't have to pay $4,000 to do it ;)

  • Rental Property Investor · Montgomery, AL · Member since 2017 · 277 posts · 221 votes
    7y

    @Joshua Mayo I have never heard of Fund & Grow, but they seem to have a really interesting business model and look forward to seeing how it turns out for you. I have 3 properties in my portfolio and come across many amazing deals everyday given I work full time as a wholesaler. Really interested to see how quickly F&G can build a large line of business credit for you and at what rate. Always looking for new ways to fund purchasing more cash flowing real estate.

  • Winston Salem, NC · Member since 2014 · 21 posts · 17 votes
    7y
    Originally posted by @Andrey Y.:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Joshua Mayo:

    @Jay Hinrichs  

    Hi Jay,

    I failed to mention this in my post above, but I do not plan to use the personal cards for business.

     Ok why would u pay someone to put applications in for u.  U can do that all on line ???

     My thoughts exactly. Everything that they are doing for you you could easily do yourself. In fact, it's what I've done since 2014 to get to my current 790 credit score. And I didn't have to pay $4,000 to do it ;)

    Are you talking about personal credit or business credit? If you built your own lines of business credit, how much do you have? And I would be interested to know how you did it (and other readers as well who read this in the future). I think Jay was under the impression that I paid someone to build my personal credit, which is not the case. Of course, I could do this on my own without paying a premium.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Joshua Mayo:
    Originally posted by @Andrey Y.:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Joshua Mayo:

    @Jay Hinrichs  

    Hi Jay,

    I failed to mention this in my post above, but I do not plan to use the personal cards for business.

     Ok why would u pay someone to put applications in for u.  U can do that all on line ???

     My thoughts exactly. Everything that they are doing for you you could easily do yourself. In fact, it's what I've done since 2014 to get to my current 790 credit score. And I didn't have to pay $4,000 to do it ;)

    Are you talking about personal credit or business credit? If you built your own lines of business credit, how much do you have? And I would be interested to know how you did it (and other readers as well who read this in the future). I think Jay was under the impression that I paid someone to build my personal credit, which is not the case. Of course, I could do this on my own without paying a premium.

    I think your asking Andrey..  proper use of this kind of credit can be just fine.. improper use can lead you to credit hell and BK 

  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    @Jay Hinrichs

    It all smacks of something for nothing and if you just buy these little coupons, everything will change for you because Charlie P. knows the insider's rules to how the sausage is made. I'm not saying that's what it is, but it's certain what it presents itself as. This is not the first time I've listened to a guy named "Ari" tell me he could sell me a foolproof system for making me money, and every other time in that far-off land where "Ari" is a very common name it was not 2 Legit 2 Quit, no, no, no, filoi kai aderfia, not by a long shot.

    In any case, the biggest problem, the bottleneck that keeps us from scaling up our ghetto BRRRRing quickly, isn't the cost of borrowed money to keep up with deal flow, it's the lack of affordable competent renovation tradesmen to plan, manage, and carry out the renovating. If I could find and hire those people more easily I could comfortably scale up with the 5.58% rates I'm getting from my bank for cash-out re-financing.

    Every renovation outfit currently working in my area has exactly the same problem, and 0% interest on our financing isn't going to make a dent in that. if I want those dudes I'm going to have to train them and manage them.

  • Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Joshua Mayo:
    Originally posted by @Andrey Y.:
    Originally posted by @Jay Hinrichs:
    Originally posted by @Joshua Mayo:

    @Jay Hinrichs  

    Hi Jay,

    I failed to mention this in my post above, but I do not plan to use the personal cards for business.

     Ok why would u pay someone to put applications in for u.  U can do that all on line ???

     My thoughts exactly. Everything that they are doing for you you could easily do yourself. In fact, it's what I've done since 2014 to get to my current 790 credit score. And I didn't have to pay $4,000 to do it ;)

    Are you talking about personal credit or business credit? If you built your own lines of business credit, how much do you have? And I would be interested to know how you did it (and other readers as well who read this in the future). I think Jay was under the impression that I paid someone to build my personal credit, which is not the case. Of course, I could do this on my own without paying a premium.

    You could do the same process, just take out the credit cards in your LLC name. No different.

    I have about $500K in HELOC I can use at 2.4% IO for 10 years.. I don't really use em much since I haven't needed to.

    Credit worthiness is credit worthiness. You can call it personal or business but it funds the exact same stuff ;)

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

    @Jay Hinrichs

    It all smacks of something for nothing and if you just buy these little coupons, everything will change for you because Charlie P. knows the insider's rules to how the sausage is made. I'm not saying that's what it is, but it's certain what it presents itself as. This is not the first time I've listened to a guy named "Ari" tell me he could sell me a foolproof system for making me money, and every other time in that far-off land where "Ari" is a very common name it was not 2 legit 2 quit.

    In any case, the biggest problem, the bottleneck that keeps us from scaling up our ghetto BRRRRing quickly, isn't the cost of borrowed money to keep up with deal flow, it's the lack of affordable competent renovation tradesmen to plan, manage, and carry out the renovating. If I could find and hire those people more easily I could comfortably scale up with the 5.58% rates I'm getting from my bank for cash-out re-financing.

    Every renovation outfit currently working in my area has exactly the same problem, and 0% interest on our financing isn't going to make a dent in that. if I want those dudes I'm going to have to train them and manage them.

    need to be like some Asian countries and import labor and house them. 

  • Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
    7y

    @Jay Hinrichs

    NOT the first time I've thought that!

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

    @Jay Hinrichs

    NOT the first time I've thought that!

    I had a vendor over in the deep south and the local rehabbers were just horrid to work with .. I told them put an add in the paper in Houston have someone speak Spanish and offer housing as part of the comp.. put 10 of them in one home..  And that worked. 

    Just like farmers do with housing in their land holdings.  

  • Lender · Fort Collins, CO · Member since 2017 · 67 posts · 19 votes
    7y

    @Joshua Mayo -- sounds super interesting. I'm very interested in the idea, broadly speaking. Paying $4k up front seems a bit steep, but so does paying 9% on the back end if I just use the $1 sign up fee. Can use the funds to cover the down payment and rehab costs on a flip deal, for example. 

  • Flipper/Rehabber · Stone Mountain, GA · Member since 2014 · 1 post · 1 vote
    7y

    @Andrey Y. How did you do it?Far as getting the business credit, on your own?

  • Winston Salem, NC · Member since 2014 · 21 posts · 17 votes
    7y
    Originally posted by @David Hooper:

    @Joshua Mayo -- sounds super interesting. I'm very interested in the idea, broadly speaking. Paying $4k up front seems a bit steep, but so does paying 9% on the back end if I just use the $1 sign up fee. Can use the funds to cover the down payment and rehab costs on a flip deal, for example. 

    For sure, David! If you go through an affiliate website such as Morris Invest, you can get $500 off and pay $3,500 instead of $4,000 (which is still a bit steep). For us, after looking at all of our options, this seemed like a good route and would give us the leverage we needed to get started in real estate investing.

  • Rental Property Investor · Houston, TX · Member since 2019 · 30 posts · 13 votes
    7y

    @Joshua Mayo

    Thanks for this detailed post. I had never heard of this before so it is very interesting and informative. Please keep updating I'm very curious to see how it goes.

  • Rehabber · Los Angeles, CA · Member since 2009 · 47 posts · 18 votes
    7y

    This is very interesting.  I was working with a private money lender that would give me a line of credit after establishing a track record through deals.  This way seems faster... gonna see if there's anything else on the forum that has done this before or maybe on YouTube U.

  • Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Leonard Jamison:

    @Andrey Y. How did you do it?Far as getting the business credit, on your own?

     High income, stable income, track record, high personal credit score.

  • Rockville, MD · Member since 2017 · 16 posts · 4 votes
    7y
    Originally posted by @Jim K.:

    @Jay Hinrichs

    It all smacks of something for nothing and if you just buy these little coupons, everything will change for you because Charlie P. knows the insider's rules to how the sausage is made. I'm not saying that's what it is, but it's certain what it presents itself as. This is not the first time I've listened to a guy named "Ari" tell me he could sell me a foolproof system for making me money, and every other time in that far-off land where "Ari" is a very common name it was not 2 Legit 2 Quit, no, no, no, filoi kai aderfia, not by a long shot.

    In any case, the biggest problem, the bottleneck that keeps us from scaling up our ghetto BRRRRing quickly, isn't the cost of borrowed money to keep up with deal flow, it's the lack of affordable competent renovation tradesmen to plan, manage, and carry out the renovating. If I could find and hire those people more easily I could comfortably scale up with the 5.58% rates I'm getting from my bank for cash-out re-financing.

    Every renovation outfit currently working in my area has exactly the same problem, and 0% interest on our financing isn't going to make a dent in that. if I want those dudes I'm going to have to train them and manage them.

  • Rockville, MD · Member since 2017 · 16 posts · 4 votes
    7y
    Originally posted by @Jim K.:

    @Jay Hinrichs

    It all smacks of something for nothing and if you just buy these little coupons, everything will change for you because Charlie P. knows the insider's rules to how the sausage is made. I'm not saying that's what it is, but it's certain what it presents itself as. This is not the first time I've listened to a guy named "Ari" tell me he could sell me a foolproof system for making me money, and every other time in that far-off land where "Ari" is a very common name it was not 2 Legit 2 Quit, no, no, no, filoi kai aderfia, not by a long shot.

    In any case, the biggest problem, the bottleneck that keeps us from scaling up our ghetto BRRRRing quickly, isn't the cost of borrowed money to keep up with deal flow, it's the lack of affordable competent renovation tradesmen to plan, manage, and carry out the renovating. If I could find and hire those people more easily I could comfortably scale up with the 5.58% rates I'm getting from my bank for cash-out re-financing.

    Every renovation outfit currently working in my area has exactly the same problem, and 0% interest on our financing isn't going to make a dent in that. if I want those dudes I'm going to have to train them and manage them.

    Contractors are my sticking point, too. 

  • Member since 2018 · 27 posts · 5 votes
    7y

    @Joshua Mayo keep me updated on the ease of pulling the cash off the cards and the associated fees. Also, how long are the cards no interest? I am pretty serious about fund and grow I am just nervous.

  • Winston Salem, NC · Member since 2014 · 21 posts · 17 votes
    7y

    @Jessica Maalouf I'll keep you updated with this. Currently, I am just waiting to let my new personal credit cards season a little more before F&G does another round, this time for business credit. From what I've been told and have researched in other topics here on BiggerPockets, the no interest periods can be anywhere from 6 months to 18 months; more commonly they are 12 months - 18 months though. 

  • Member since 2018 · 27 posts · 5 votes
    7y

    @Joshua Mayo thanks!

  • Rehabber · Los Angeles, CA · Member since 2009 · 47 posts · 18 votes
    7y

    @Joshua Mayo

    Did they mention how long the seasoning is?

  • Winston Salem, NC · Member since 2014 · 21 posts · 17 votes
    7y
    Originally posted by @Jason Medina:

    @Joshua Mayo

    Did they mention how long the seasoning is?

    About 6 months is what they originally told me. They emailed me earlier this week saying the next round will begin on July 21. My round of personal credit began in late January, so that's about 6 months which is in line with their promise.

  • Rehabber · Los Angeles, CA · Member since 2009 · 47 posts · 18 votes
    7y

    @Joshua Mayo

    This is like waiting for your show to come back after the season finale.

  • Winston Salem, NC · Member since 2014 · 21 posts · 17 votes
    7y
    Originally posted by @Jason Medina:

    @Joshua Mayo

    This is like waiting for your show to come back after the season finale.

    Lol exactly. I'm (trying) to be patient in the meantime. My credit dropped to around 685 because of all the hard inquiries. They give you a walkthrough on how to get the inquiries off yourself. Apparently, from what I've read on other BiggerPocket topics regarding F&G, it's just a lot of calling and waiting and calling and waiting. Or, you can pay another company to do it which will run for about $350-$400. I think I'm going to try and work on getting a few off and if all goes well, I'll get the rest off.

  • Member since 2019 · 16 posts · 5 votes
    7y

    Well I think its certainly more convenient to hire a credit consultant to help you obtain credit cards and inprove credit. I wouldnt pay $4,500 for service. Could simply put that amount toward a secured bank of america credit card. Im happy to reccomend a few others. Welcome to message me. Based on my past experience its much easier to obtain secured credit card and use it to build credit history and obtain non-secured credit line. Many books on how to build your credit are avaliable at book store as well. Having avaliable credit is good thing but obviously be careful about using it long term to finance investments. High apr will make it very difficult to earn worthwhile return on investment. But if you can accept risk and use it to leverage short term investment then fine. 

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