Funding For Flipping

71 Replies

I have the same questions about the funding for flipping. They definitely required a credit score of 780 or better.

So it is not for everyone.

Originally posted by @Michelle M. :

Is anyone familiar with www.fundingforflipping?

 So this post has been up for a while. I too saw their ad on FB. Did you go through with the Line of Credit? Or what happened?

If you have a credit score of at least 700+ and have a definite plan to use the funds to generate cash flow I recommend giving them a call.  I called them back in June and received a DECENT amount of funding by mid to late July.   

hey there, I just talked to them. what they do is essentially apply for credit cards in your name, charge a "procurement fee". very fast talking, urgent urgent, used car salesman conversation. 

I saw the advertising for this company on Facebook and it keeps popping up on my feed.  My first impression was that this is too good to be true.  Nobody is going to extend you lines of credit for 0% for 12 months.  So curiosity got the best of me and I set up a phone call.  This is what I learned:

- They do not get you lines of credit.  They get you credit cards with the introductory 0% for 12-18 months that most major credit cards offer. (JP Morgan, Chase, Wells Fargo, Bank of America, CapitalOne, etc.)

- They ask you to pull your credit report from www.creditnav.com and send it to them.  Apparently they own this credit monitoring company and the way they pull credit reports and scores is special or something.  

- Based off of the score on your report, they use an algorithm to determine how much/many credit cards they'll be able to open in your name.  For a score between 700-750 they 'guarantee' $100K-$150K.  (I told him I have a 735, and that's what the guy told me I would most likely get funded at).

- They assign you a financial consultant and you contact this person to get cash deposited into your account or get proof of funds letters if you need them.  

- After 6 months they transfer all your credit cards into your business entity so these credit cards are not tied to your personal credit.

- Once the expiration of the 0% offers comes near, they start a second round of applications to transfer any balances you have on the first round and to increase your credit availability (they shoot for doubling, so if you started with $100K in the first round, the second round they'll go for $200K, $100K to cover the first round if you still have outstanding balances and another $100K to keep you moving forward).

- Their fees are $4,995, $6,995, and $9,995 depending on how much $$ they 'guarantee' they can get you.  So for my case, he said he'll guarantee $100K, so my fee will be $9,995 which will come out of one of the credit cards I get approved for.

- If they are not able to get you up to the 'guaranteed' funding they promised you, they will waive the fee and send you on your merry way with whatever they did get you approved for.

- The fee is good for the financial consultant and two rounds of credit card applications/approvals and managing your accounts for 12 months.  They will also teach you how to shop for credit cards so you can go out and keep building your credit lines on your own if you wish, or you can stay with them but pay the fees for subsequent years.

My $.02:

- The way they market for "Lines of Credit" is misleading, as most people know a credit card and a line of credit are two different products.

- Their fee is 10% in the case of $100K worth of credit cards, less if you are approved for more.  I'm not sure of what amounts will get you the two lower fees of $4,995 and $6,995.  Much cheaper than a hard money lender, not as cheap as conventional financing.

- Most people will not be comfortable with $100K of credit card debt on their record, let alone having to manage it...Keep in mind they help you manage this for 12 months though. 

- A concern I have is what will this do to my credit score if I'm trying to do conventional financing while these credit cards are being used at the same time...I'm a small time investor here, I'm not making millions yet and I rely on my good credit to get conventional financing.

- I like how they will transfer the credit cards into my LLC after 6 moths so that the credit/debt is off of my personal credit report, but I'm not sure how that is done and/or if it is possible to do.

- What's the difference between me paying them $10K to get me $100K worth of credit cards and me trying to do this on my own?  Supposedly they are able to get you all of this within 2 months because they have relationships with these major banks and based off of your credit history they know where to go to get you more yes's than no's.  If you did it on your own, you'll probably end up with too many inquiries on your credit report and not as much success on credit approvals and in a much larger span of time compared to them.  

Sorry for the length on this post, I just wanted to share what I learned.  I'm not sure if I'll be signing up with them just yet.  I would like to know if anybody here has used them and what they think of their program.  

Complete BS...these companies operate this way and get you credit accounts with companies and vendors that anyone can get on their own and charge you 10% of the line amount.  Run...don't walk.

Thank you all for the posts.  This has been helpful to me. I have had many of the same concerns and questions as you had.  

I'm not interested in more credit card debt.  Lines of credit for sure but not credit card debt.

I agree it is absolute BS. If you have a 735 credit score and you DTI, you can get the credit cards yourself or better yet go to a bank like Bank of America, Chase or Wells Fargo, Charter one AKA Citizens bank and get a business line of credit.

Originally posted by @Charlie Fitzgerald :

Complete BS...these companies operate this way and get you credit accounts with companies and vendors that anyone can get on their own and charge you 10% of the line amount.  Run...don't walk.

 You are EXACTLY CORRECT Sir !!!

And when I pointed that fact out on the comments section of their Facebook page....I was promptly blocked and my informative comments deleted. If the program is legitimate they should have no issues with constructive criticism. Furthermore I recieved a call from management of this company offering me a job as an affiliate. Ha Ha Ha ...

Never !!!!!

I applied for credit cards using my social security number and was approved for ALL12 at 0% and never paid anyone 10% fees. They provide a service that anyone can do on their cell phone in one day.

Originally posted by @Tammy Parsons :

I saw the advertising for this company on Facebook and it keeps popping up on my feed.  My first impression was that this is too good to be true.  Nobody is going to extend you lines of credit for 0% for 12 months.  So curiosity got the best of me and I set up a phone call.  This is what I learned:

- They do not get you lines of credit.  They get you credit cards with the introductory 0% for 12-18 months that most major credit cards offer. (JP Morgan, Chase, Wells Fargo, Bank of America, CapitalOne, etc.)

- They ask you to pull your credit report from www.creditnav.com and send it to them.  Apparently they own this credit monitoring company and the way they pull credit reports and scores is special or something.  

- Based off of the score on your report, they use an algorithm to determine how much/many credit cards they'll be able to open in your name.  For a score between 700-750 they 'guarantee' $100K-$150K.  (I told him I have a 735, and that's what the guy told me I would most likely get funded at).

- They assign you a financial consultant and you contact this person to get cash deposited into your account or get proof of funds letters if you need them.  

- After 6 months they transfer all your credit cards into your business entity so these credit cards are not tied to your personal credit.

- Once the expiration of the 0% offers comes near, they start a second round of applications to transfer any balances you have on the first round and to increase your credit availability (they shoot for doubling, so if you started with $100K in the first round, the second round they'll go for $200K, $100K to cover the first round if you still have outstanding balances and another $100K to keep you moving forward).

- Their fees are $4,995, $6,995, and $9,995 depending on how much $$ they 'guarantee' they can get you.  So for my case, he said he'll guarantee $100K, so my fee will be $9,995 which will come out of one of the credit cards I get approved for.

- If they are not able to get you up to the 'guaranteed' funding they promised you, they will waive the fee and send you on your merry way with whatever they did get you approved for.

- The fee is good for the financial consultant and two rounds of credit card applications/approvals and managing your accounts for 12 months.  They will also teach you how to shop for credit cards so you can go out and keep building your credit lines on your own if you wish, or you can stay with them but pay the fees for subsequent years.

My $.02:

- The way they market for "Lines of Credit" is misleading, as most people know a credit card and a line of credit are two different products.

- Their fee is 10% in the case of $100K worth of credit cards, less if you are approved for more.  I'm not sure of what amounts will get you the two lower fees of $4,995 and $6,995.  Much cheaper than a hard money lender, not as cheap as conventional financing.

- Most people will not be comfortable with $100K of credit card debt on their record, let alone having to manage it...Keep in mind they help you manage this for 12 months though. 

- A concern I have is what will this do to my credit score if I'm trying to do conventional financing while these credit cards are being used at the same time...I'm a small time investor here, I'm not making millions yet and I rely on my good credit to get conventional financing.

- I like how they will transfer the credit cards into my LLC after 6 moths so that the credit/debt is off of my personal credit report, but I'm not sure how that is done and/or if it is possible to do.

- What's the difference between me paying them $10K to get me $100K worth of credit cards and me trying to do this on my own?  Supposedly they are able to get you all of this within 2 months because they have relationships with these major banks and based off of your credit history they know where to go to get you more yes's than no's.  If you did it on your own, you'll probably end up with too many inquiries on your credit report and not as much success on credit approvals and in a much larger span of time compared to them.  

Sorry for the length on this post, I just wanted to share what I learned.  I'm not sure if I'll be signing up with them just yet.  I would like to know if anybody here has used them and what they think of their program.  

Your making a big assumption that they will be able to transfer your accounts into an established LLC. I have to pose 1 question.

Why would any lender take away the personal guarantee you've agreed to by signiture ? Am I wrong in my thinking ? Once they have your %10 fee, I find it hard to believe You will recieve any type of qualified coaching after the commission is taken off the top.   My  $.02 

I truly hope you have been successful in your REI career Tammy you seem like a very intelligent young lady. God Bless You

@Steven Mingione , I'm not very familiar with credit in an LLC or any other entity, I am curious as to how they transfer the credit and debt into the LLC? And you're right, wouldn't I have to remain the personal guarantor to that credit, even if it's under the LLC's name? How does that reflect on my personal credit score and the LLC's score? How does an entity get a credit score if they were created from thin air and have nothing beyond what you put in it? I have some homework to do regarding that. I assume that they provide you "coaching" since you probably sign some type of contract with them, if they don't provide what they promise, sue for breach of contract.

I was curious since the company keeps popping up in my news feed in Facebook, so I had to call and find out what they're about.  I know several members have posted about using their services earlier in this thread, maybe they have more information about it.

And I didn't get a warm and fuzzy when I started talking to them, so I figured I'd share what I learned with everybody else who is curious like me, but I'll be staying away from them unless more people recommend them vs alert me to stay away from them.  I hope the original poster has had their questions answered as well.  

Disclosure: I own the brand Funding For Flipping

Originally posted by @David Briley :

@Joe Kalis, being on BP will at least give you a little more creditability in my eyes, but could you please feel free to address the concerns that @Jay Hinrichs and I brought up.  

Also, got any BP members who've used your service?

 Hey David! Appreciate the confidence, sorry for the delay responding again. :-( It is what certainly people have said it is...unsecured credit by way of credit cards from major banks. Tammy Parsons did a pretty exhaustive explanation of what the program is a few comments up. 

The power behind using this service vs. doing it yourself (which you certainly could) is that there's definitely an art to applying in the right way to maximize the amount of credit you can get. If the average consumer applied for credit, they'd start getting denied after 3-4 inquiries. There's a strategic approach to apply for the right programs from the right banks in the right order that allows us to get more credit than a consumer could on their own. Is the difference worth the fee? That's for everyone to decide on their own...although you'll certainly hear the negative opinions the most on public forums like this. 

I am a client, as well, and was able to acquire $120K in credit that was then liquidated to cash, and the overall fee as a percentage was much lower than I could have gotten elsewhere. We were able to use the funds to run our business for 6 months, not just to acquire properties like traditional hard money loans/private funds (flexible).

As far as other BP members who are clients...we don't crosscheck them, and we also can't divulge who our clients are publicly, so I wouldn't be able to tell you. You can see a few of them have spoken up for themselves...not nearly as many as the people who have negative assumptions and tell everyone to run away without actually knowing anything about what the program actually is.

It's a tough industry to trust, we understand that. I'm glad to chat privately if you have further questions or concerns. We are not a scam, we are not sharks, we are not trying to steal your identity. It's just another funding program that requires a personal guarantor, vs. collateralizing your house or investment portfolio. It's certainly not for everyone, but is certainly a very viable option if you are already a responsible investor and have ways to use additional funds. :-) 

yes...I would NOT use their service.  They basically charge a little under 9k for a 100k "loan" which amounts to several 0% interest credit cards that they apply for in your name.  In the initial conversation, I asked if there were any other fees charged for utilizing the funds and the answer was no.  I went through the whole process and only in the final conversation with a loan processor did I find out that there would be 2-4% fees charged by the credit card companies to access the $$$.  VERY deceptive practices, including the outright lie.  They promised to send an email confirmation regarding the cancelation of the loan request...that was a few days ago...have sent a few email requests and left phone messages but no response so far.  I would stay VERY FAR away from this company.

White collar criminals 

I just spoke to one of the reps at Funding for flipping.  They help you set up 4 to 7 unsecured Lines of Credit at 0% introductory rates at $15k to $25k each for a typical total of $80k to $100k in funding.  These are introductory rate credit cards.  Because they are credit cards I am passing but others can decide what is best for them.  Just FYI.

QUESTION?   So can I get "funding for flipping"  750 score, get 80k CASH and use that as my down payment for 14 apartments valued at $400k?  There's my 20% down..

The issue I see is my credit would be weak after taking $80k credit line, but can show the bank my apartments would provide major cash flow.  

HELP PLEASE I think it could work

I would use all profit to pay off the 80k in 1-2 years

Originally posted by @Joe Kalis :
Originally posted by @David Briley:

@Joe Kalis, being on BP will at least give you a little more creditability in my eyes, but could you please feel free to address the concerns that @Jay Hinrichs and I brought up.  

Also, got any BP members who've used your service?

 Hey David! Appreciate the confidence, sorry for the delay responding again. :-( It is what certainly people have said it is...unsecured credit by way of credit cards from major banks. Tammy Parsons did a pretty exhaustive explanation of what the program is a few comments up. 

The power behind using this service vs. doing it yourself (which you certainly could) is that there's definitely an art to applying in the right way to maximize the amount of credit you can get. If the average consumer applied for credit, they'd start getting denied after 3-4 inquiries. There's a strategic approach to apply for the right programs from the right banks in the right order that allows us to get more credit than a consumer could on their own. Is the difference worth the fee? That's for everyone to decide on their own...although you'll certainly hear the negative opinions the most on public forums like this. 

I am a client, as well, and was able to acquire $120K in credit that was then liquidated to cash, and the overall fee as a percentage was much lower than I could have gotten elsewhere. We were able to use the funds to run our business for 6 months, not just to acquire properties like traditional hard money loans/private funds (flexible).

As far as other BP members who are clients...we don't crosscheck them, and we also can't divulge who our clients are publicly, so I wouldn't be able to tell you. You can see a few of them have spoken up for themselves...not nearly as many as the people who have negative assumptions and tell everyone to run away without actually knowing anything about what the program actually is.

It's a tough industry to trust, we understand that. I'm glad to chat privately if you have further questions or concerns. We are not a scam, we are not sharks, we are not trying to steal your identity. It's just another funding program that requires a personal guarantor, vs. collateralizing your house or investment portfolio. It's certainly not for everyone, but is certainly a very viable option if you are already a responsible investor and have ways to use additional funds. :-) 

How do you consolidate 100k worth of credit cards into one "LOC" I can draw from to purchase real estate?

Originally posted by @Saul G. :
 How do you consolidate 100k worth of credit cards into one "LOC" I can draw from to purchase real estate?

You can't, it's not the same as a bank line of credit you're referencing. 

@Joe Harris   once you pull all your cash out of your credit cards your fico will go down to the low 600's

Originally posted by @Joe Kalis :
Originally posted by @Saul Gonzalez:
 How do you consolidate 100k worth of credit cards into one "LOC" I can draw from to purchase real estate?

You can't, it's not the same as a bank line of credit you're referencing. 

 So how do you make cash available out of credit cards and get around the cash advanced fee?

Originally posted by @Jay Hinrichs :

@Joe Harris   once you pull all your cash out of your credit cards your fico will go down to the low 600's

 I'd be careful not to make claims you can't substantiate and have nothing to do with. The concept you're speaking about not only wasn't the case for me, but varies so wildly on a case-by-case basis, you can't possibly suggest something so matter of factly...even if you worked for the underwriting department of any of these banks. 

Originally posted by @Saul G. :
Originally posted by @Joe Kalis:
Originally posted by @Saul Gonzalez:
 How do you consolidate 100k worth of credit cards into one "LOC" I can draw from to purchase real estate?

You can't, it's not the same as a bank line of credit you're referencing. 

 So how do you make cash available out of credit cards and get around the cash advanced fee?

It varies by bank and program, but that's part of what the program provides...helping you navigate through all that. 

Originally posted by @Jay Hinrichs :

@Joe Harris   once you pull all your cash out of your credit cards your fico will go down to the low 600's

 And once you put it back in it will go up again, in fact it could potentially be stronger than before. For a buy and hold is impossible since you can't refi, but for a quick flip it could be an option for some people, imagine you don't qualify conv, and hard money makes the deal not a deal, what do you do then? 

If there is a system in place to manage all these trade lines and the plan is to capital gain for 2 years and you plan ahead to be creditless in the meantime, then it could certainly be an option, especially to enter the game.

My concern is how exactly are they doing this because it is assumed  that the only way to pull cash from credit cards is cash advanced, and there is no 0% intro on cash advanced, so how do they make this cash available? I have a feeling they might be violating the issuer TC's, or at least pushing it too far to the limit. 

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