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!

------------

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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  • Sierra Vista, AZ · Member since 2017 · 4 posts · 0 votes
    7y

    Hi Joshua,

    Thanks so much for starting this Fund and Grow case study. As I haven't read anything really horrible about them on BP forums, today I paid my $3497 to start on this RE investment journey. 

    I'm a complete novice at investing of any sort and am attending a workshop on note investing in SoCal this weekend.  

    Fund and Grow came into my view through the Morris Invest video on You Tube about 10 days ago. It seemed a good way to fund note purchases rather than risking our little nest egg. Planning to use the business credit cards very carefully as we begin. I want to feel really comfortable with RE notes before going all crazy with the credit lines Fund and Grow will set up for us.

    Anyway, my husband and I both have great credit scores according to Christy Banks at F&G (she checked this out as we spoke on the phone, without putting an inquiry on our records). She said we'd be eligible for $70-80K each on the first round. Next step is to fill out and return the applications.

    I'll post updates here, if that's ok. 

    By the way, I'm new to BP, too! My first forum post.

  • Sierra Vista, AZ · Member since 2017 · 4 posts · 0 votes
    7y

    Wow, has it really been 22 days since I last posted? 

    The business credit cards have started to come in. Last week, I got my first 2 with total spending limit between them of $15,000. And I'm still getting contacted by banks to verify that I have made an application to them, so I think more cards are coming.  I have no idea how many cards to expect.

    I have to reach out to my Fund and Grow specialist to get a status on the process. They are supposed to help with setting up an LLC, too., but haven't talked with anyone about that yet.

    So far, I am getting approval for business credit cards, I just don't get much contact from Fund and Grow. My specialist did say that any emails or texts I get from the banks, I should forward to her and I have been doing that. So far, that's it.

    I'm hoping that I get more info about how best to do the cash outs and set up my LLC. And I hope I get a bit higher credit limits.

    That's all I have for now. Till next time...

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

    Hi guys I've been following this case study.  I have been partnering on deals for rental properties and I stumbled onto Fund and Grow since by the videos I watched they could actually help me accelerate my acquistion of properties.  

    My concern is if you are doing this for a rental property, I'm just throwing numbers, but let's say $50K for down payment, rehab, and escrow fees.  The property cash flows $450 a month.  What will happen when the 0% intro rate expires?  The rates can go as high as 25% and 50K on a high interest credit card will destroy your cash flow.

    Through my research, they said they will roll you balance onto another 0% card while making efforts to pay it off.  Is that true?

  • Sierra Vista, AZ · Member since 2017 · 4 posts · 0 votes
    7y

    Hi Jermaine,

    Sorry for the delayed reply. I don't believe Fund and Grow rolls the balances over for you. Once you have the first round of credit cards, they tell you how to get the all inquires off your credit record that all those cards put on. Then, they do another round to get you 0% interest again. 

    The cards I received so far are two for 12 months and three for 9 months at 0%. Only two of those cards will accept balance transfers from other cards, so that is something to watch, too.

    I still have not used the cards to make a real estate purchase. I used one card to hire a RE financial advisor to help me manage/leverage these credit lines for maximum benefit and so I don't wreck my credit record.

    Still trying to figure out how best to use these 0% interest cards.  I'll post again, once I have something of use to others thinking about using this service.

  • Eric HeinenPro Member
    Fargo, ND · Member since 2017 · 35 posts · 15 votes
    7y
    Originally posted by @Jermaine Agustin:

    Hi guys I've been following this case study.  I have been partnering on deals for rental properties and I stumbled onto Fund and Grow since by the videos I watched they could actually help me accelerate my acquistion of properties.  

    My concern is if you are doing this for a rental property, I'm just throwing numbers, but let's say $50K for down payment, rehab, and escrow fees.  The property cash flows $450 a month.  What will happen when the 0% intro rate expires?  The rates can go as high as 25% and 50K on a high interest credit card will destroy your cash flow.

    Through my research, they said they will roll you balance onto another 0% card while making efforts to pay it off.  Is that true?

     You refinance the rehabbed property into a conventional mortgage and pull out 70-80% of the newly appraised value to pay off the credit cards in full.  If done right, you're left with a cash flowing asset that you essentially paid zero to acquire. Rinse and repeat. :) 

  • Sierra Vista, AZ · Member since 2017 · 4 posts · 0 votes
    7y

    Thank you for those next steps, Eric. Makes perfect sense:)

  • Kenosha, WI · Member since 2015 · 89 posts · 81 votes
    7y

    So far most of the comments in this thread have been about Fund & Grow's performance in gaining personal credit for their clients.  Remember that a major part of their pitch is to get a line of business credit - credit that is unsecured and invisible on the client's personal credit rating.

    My curiosity was aroused when the OP stated that Fund & Grow was applying for business credit for him before he has a LLC . To get any meaningful line of business credit a business needs a track record or some pretty hefty assets. Obviously Fund & Grow has a method to sidestep the credit department's underwriting standards.

    My theory is that they are making use of " shelf corporations ", corporations with no assets or current business activity.  A couple of minutes ago I checked Google and easily found a site that offered such corporations for sale for a one time fee of between $700 and $5000 depending on the date of incorporation.  They promise paprs of incorporation, minutes of board meetings, a company seal... basically a business in a can.  The salient point is that it is a pre-aged business that will get serious consideration from the card issuer.

    This is just a theory, but if I am correct the $4000 fee is not only buying you a credit limit, it is buying you a business.  Well...sort of.

  • Atlanta, GA · Member since 2019 · 1 post · 1 vote
    7y

    Hello everyone! 

    This is my first post (so please bear with me). I just wanted to share my experience as well in the hopes that it might help someone else. 

    I started my process with Fund & Grow on 7/11. I had already had a couple of calls with Christy Banks to answer some of my specific questions and this was just the phone call to get the process going and make my payment. I even got a $500 discount for mentioning that I'd heard about them from Bigger Pockets. 

    The next day (7/12), I was sent a Registration Confirmed email that advised me to log into the Client Portal and complete my information at my earliest convenience (however, this info was needed before any other steps could be completed). Of course, I missed this email and didn't see in until late that Friday night.Once I did log in, I eSigned both the Credit Authorization and POA forms and filled out some other basic personal info. The email stated that once I'd completed everything I would be contacted by a consultant within 24-48 hours.

    On 7/15, I got another email stating that my information was being reviewed by their Processing Team and that someone would be in touch within the next 2-3 business days. They did ask that I upload a copy of my driver's license and a current utility bill (both had to have my current address). 

    On 7/16, I got a congratulatory email saying my credit reports had been reviewed and that my info was being assigned an Account Manager. It also said that I'd receive an email from said Account Manager with a time and date for a phone call. 

    On 7/17, I received an email telling me to expect to be contacted by an Account Manager on 7/18 between the hours of 11am-2pm EST and that no additional information would be able to be submitted until that call took place. In telling me what to expect, it said that the Account Manager would be able to answer any questions I had about this phase of the process and share with me the lenders that had been chosen for my applications. 

    On 7/18, and 10:23am I got a call from a 800 number I didn't recognize. They did leave a voicemail. I was at the dentist and couldn't get to the phone. On my way home, at 11:46am, the same number called again. It was a nice chat and Giovanni answered the last few remaining questions I had. I incorporated a subsection of my business as a Non-Profit Non-Stock Corp just over 2 years ago and wanted to know if I could use that. I was instructed to upload copies of my Articles of Incorporation via the portal and someone would look into it for me. If not, they would create an entity for me. The 5 lender's chosen for the first round were:

    Flag Star
    Capital One
    American Express
    Bank Of America
    Chase

    I was also told that any applications that came back as Pending or Declined to not stress over as F&G would go back and attempt to clarify/correct any problems. Giovanni also told me to start expecting the first set of cards in the next 1-2 weeks and that he would be providing weekly updates for me as well. Lastly, I was instructed to forward any correspondence from any lender directly to him. Our call lasted 18 minutes. At 12:21pm Giovanni called me back, as they didn't want to use my Non-Profit and were attempting to obtain an EIN for me to proceed, but couldn't because the IRS said I already had one. 

    • Back in early 2016 I had attempt this process myself but decided to go in another direction, but only after I had already received an EIN. 

    Luckily, I'm a digital hoarder and had a scan of it. I text Giovanni back at 12:25 and let him know that I found the document and had already uploaded it into the Client. 

    I also have several credit apps on my phone (I like to try them out and make suggestions for my clients) and starting about 2:15pm I started getting notifications that new inquires had appeared on the various credit reports... and since I have several apps that make noise, and the emails, it was amusingly music there for a while.  

    At 3:16 I got an email from Giovanni that my first batch of applications had been completed (but I already knew) and to remind me to not correspond with any bank or lender, but to forward that to him to handle. There was also a reminder that the majority of the cards can come in declined (pending verification) or with low limits and that their processors were trained in communicating with underwriters and would work to get the most out of each approval and overturn and denials with an appeals process that could sometimes take up to 5 weeks. 

    The results of my Round #1 were as follows: 


      • Bank Of America - BOA ADV TRAVEL/CASH – 0% APR on purchases for 9 months Approved $16,000

      • Capital One - SPARKS SELECT 0% APR on purchases for 9 months.
        Approved $15,000

      • American Express - BLUE BUSINESS PLUS – 0% APR on purchases and transfers for 12 months Approved $2,000

      • Flag Star - CASH/Real Rewards: 0% APR for 6 months on purchases and balance transfers 
      • Pending

      • CHASE - INK CASH: 0% APR for 12 months on purchases
        Pending

    The Capital One card arrived in the mail on 7/22 and the BOA card arrived on 7/23 (I was shocked by just how fast they got to me). Giovanni has also requested the card information so that he can work on increasing the credit limits I was initially approved for. 

    I hope my post was helpful to someone (if not a bit long) and I plan to continue to update throughout the process as it happens. I'm happy to answer any questions anyone my have or clarify any details. 

    • Investor · Member since 2018 · 32 posts · 14 votes
      6y

      @Joshua Mayo Just wanted to check in on your journey so far with Fund and Grow and if you've acquired any deals yet from creating the lines of credit. 

    • Investor · Philadelphia, PA · Member since 2010 · 739 posts · 372 votes
      6y
      Originally posted by @DeMarc Campbell:

      Hello everyone! 

      This is my first post (so please bear with me). I just wanted to share my experience as well in the hopes that it might help someone else. 

      I started my process with Fund & Grow on 7/11. I had already had a couple of calls with Christy Banks to answer some of my specific questions and this was just the phone call to get the process going and make my payment. I even got a $500 discount for mentioning that I'd heard about them from Bigger Pockets. 

      The next day (7/12), I was sent a Registration Confirmed email that advised me to log into the Client Portal and complete my information at my earliest convenience (however, this info was needed before any other steps could be completed). Of course, I missed this email and didn't see in until late that Friday night.Once I did log in, I eSigned both the Credit Authorization and POA forms and filled out some other basic personal info. The email stated that once I'd completed everything I would be contacted by a consultant within 24-48 hours.

      On 7/15, I got another email stating that my information was being reviewed by their Processing Team and that someone would be in touch within the next 2-3 business days. They did ask that I upload a copy of my driver's license and a current utility bill (both had to have my current address). 

      On 7/16, I got a congratulatory email saying my credit reports had been reviewed and that my info was being assigned an Account Manager. It also said that I'd receive an email from said Account Manager with a time and date for a phone call. 

      On 7/17, I received an email telling me to expect to be contacted by an Account Manager on 7/18 between the hours of 11am-2pm EST and that no additional information would be able to be submitted until that call took place. In telling me what to expect, it said that the Account Manager would be able to answer any questions I had about this phase of the process and share with me the lenders that had been chosen for my applications. 

      On 7/18, and 10:23am I got a call from a 800 number I didn't recognize. They did leave a voicemail. I was at the dentist and couldn't get to the phone. On my way home, at 11:46am, the same number called again. It was a nice chat and Giovanni answered the last few remaining questions I had. I incorporated a subsection of my business as a Non-Profit Non-Stock Corp just over 2 years ago and wanted to know if I could use that. I was instructed to upload copies of my Articles of Incorporation via the portal and someone would look into it for me. If not, they would create an entity for me. The 5 lender's chosen for the first round were:

      Flag Star
      Capital One
      American Express
      Bank Of America
      Chase

      I was also told that any applications that came back as Pending or Declined to not stress over as F&G would go back and attempt to clarify/correct any problems. Giovanni also told me to start expecting the first set of cards in the next 1-2 weeks and that he would be providing weekly updates for me as well. Lastly, I was instructed to forward any correspondence from any lender directly to him. Our call lasted 18 minutes. At 12:21pm Giovanni called me back, as they didn't want to use my Non-Profit and were attempting to obtain an EIN for me to proceed, but couldn't because the IRS said I already had one. 

      • Back in early 2016 I had attempt this process myself but decided to go in another direction, but only after I had already received an EIN. 

      Luckily, I'm a digital hoarder and had a scan of it. I text Giovanni back at 12:25 and let him know that I found the document and had already uploaded it into the Client. 

      I also have several credit apps on my phone (I like to try them out and make suggestions for my clients) and starting about 2:15pm I started getting notifications that new inquires had appeared on the various credit reports... and since I have several apps that make noise, and the emails, it was amusingly music there for a while.  

      At 3:16 I got an email from Giovanni that my first batch of applications had been completed (but I already knew) and to remind me to not correspond with any bank or lender, but to forward that to him to handle. There was also a reminder that the majority of the cards can come in declined (pending verification) or with low limits and that their processors were trained in communicating with underwriters and would work to get the most out of each approval and overturn and denials with an appeals process that could sometimes take up to 5 weeks. 

      The results of my Round #1 were as follows: 


        • Bank Of America - BOA ADV TRAVEL/CASH – 0% APR on purchases for 9 months Approved $16,000

        • Capital One - SPARKS SELECT 0% APR on purchases for 9 months.
          Approved $15,000

        • American Express - BLUE BUSINESS PLUS – 0% APR on purchases and transfers for 12 months Approved $2,000

        • Flag Star - CASH/Real Rewards: 0% APR for 6 months on purchases and balance transfers 
        • Pending

        • CHASE - INK CASH: 0% APR for 12 months on purchases
          Pending

      The Capital One card arrived in the mail on 7/22 and the BOA card arrived on 7/23 (I was shocked by just how fast they got to me). Giovanni has also requested the card information so that he can work on increasing the credit limits I was initially approved for. 

      I hope my post was helpful to someone (if not a bit long) and I plan to continue to update throughout the process as it happens. I'm happy to answer any questions anyone my have or clarify any details. 

         Hello!  Any update on your progress?

      • Bozeman, MT · Member since 2015 · 9 posts · 0 votes
        5y

        Hello @DeMarc Campbell. Have you made any progress on your Fund&Grow real estate path?

      • Bozeman, MT · Member since 2015 · 9 posts · 0 votes
        5y

        Hello @Anapilar Caballero Shaw. How about you, have you made any progress on your Fund&Grow real estate path?

      Join the conversationCreate a free account to reply, vote on answers and follow this thread.