Has anyone used Seed Capital?

50 Replies

Hello BP community! I was wondering if anyone has used Seed Capital for financing real estate investments? I'm interested in your opinion positive or negative regarding your experience with this company.

Real Estate debt financing is the wrong industry group... unless you have a company with a proven, repeatable process and are willing to give up substantial equity.

Hi Kelly, 

I've recently started working with Seed funding Captial.  Did you end up using them or find out any more info?  Thanks! 



I am also interested in Seed Capital after I recently heard a podcast about their services . So far what is your experience with them?


@Michael Medeiros  @Peter Gadaleta  I guess I heard the same podcast. It sounds interesting. I'm reading mixed reviews online, but they have an "A" rating from the BBB. I haven't initiated contact with them yet, but I am definitely looking into it.


@Michael Wentzel  undefined

Hey guys, please share your experience with seed capital. I'm looking forward in hearing them.



@Sam Zdrum  I did contact them. They sent me some info in an email and have followed-up with phone calls. I have been too busy and not desperate enough to pursue it yet. But let me know how it goes if you run with it in the short-term.


I did more research into BBB website and found numerous same complaints. I will translate to my best ability but don't take my word for it. Do your own due diligence. I am only providing my own research results.

My finding is: You pay seed capital a few thousand dollars for them to go apply for you or your business a bunch of credit cards.


I too was recommended to them and was told the same thing Sam. Sounds like we can do that ourselves. Like anything else sounds like a numbers game.

@Sam Zdrum @Davon Lowery

I'm actually working with them now and about to get funding through them soon. This is probably something that we can do ourselves, but there is a certain way to liquidate the funds, which is where their help comes in. Also, after looking at the numbers and comparing it to other sources that are available to me at the moment, this is far cheaper than elsewhere. I'll give you guys an update, good or bad, once the process is complete and my property is purchased.


Thank you and good luck George!

I looked into using Seed Capital myself but ultimately decided it was not for me.  Basically you end up paying a $3500 consulting fee for them to sign you up for specific business credit cards that offer promotional interest rates of 0% for 12-18 months.  From what I can tell it is NOT a scam, but you need to understand what you are getting yourself into.  Your credit score will suffer initially and your monthly debt service payments are going to be very high if you have a bunch of credit cards with balances on them.  Much higher than a similar balance on a mortgage loan.  So this means your debt to income ratios will go up, possibly affecting your ability to quality for other mortgages or loans on your other business activities.  I actually had a couple of the credit cards they offered already, so it was even less of a benefit for me.  The credits cards they offer are available to anyone.  A few of them are Chase Ink, Capital One Sparks, and Amex Open.  These 3 are all good cards as, from what I can tell, they do not report your business lines to your personal credit. 

I think there consulting might help some people get some business credit going, but if you already know how to play the credit card game you could probably do it on your own.

I actually have a family friend that works with SeedCapital.com. Anyone can feel free to message me and I can pass along their info to help you with your endeavors. In no way shape or form am I soliciting business, I am going to be participating in the program myself as well. And when I do, I will report my findings/experience. Thanks.

Hey @Kelly S. I know this post is a Few months old, but Yes- I have used Seed Capital and am happy with the results.

As previous posters mentioned- there is a $3000 fee for their services. Is it worth it? It depends- can you make money if you have some to start?

My results: I paid the fee- and they were able to get me about 100k in unsecured credit card debt. Some is interest free for 12 months, some for 18 months. I used the $ to buy and rehab a 7 unit rental property, and am using an additional sum to buy and rehab my first SF.

Was $3000 a lot? Sure. But it would be very difficult to get that much credit all on your own without the banks putting a hold on your account and denying the application.

If you've done your homework, then I say they're great to work with.

Hey everyone -

I thought I'd chime in as I am about 3 weeks into using Seed Capital. So far it has been satisfactory. They answer all your questions quickly at the beginning. Then once you sign the contract and pay, you get switched to a different rep who is not very responsive (probably given too many client accounts).

Please note if they raise more than $50k for you, there's a second $3k fee. Thus, you're looking at $6,500 + ~$100 fees + 2-4% balance transfer fees (against cash liquified amount). They don't seem communicate this very clearly.

Seed is definitely a fix n flip financing strategy. I'll report back later with an update.

Updated almost 3 years ago

Update: Honestly, I would avoid it if at all possible. Its $6500 to get rolling, then balance transfers out of the credit cards charge a one time 3% fee. There are some other nickels and dimes but those are the main costs. Then of course you gotta pay most of it back in 12 months (thus, only realistically for rehabs and wholetails). And the most painful part of all is the disconnected customer service. They "forgot" a couple of our phone call appts and i could hardly get my "rep" on the phone. I also found the whole process quite cumbersome and slow, so you would have to either have a 45+ day closing period OR sign up for Seed and hope you find a good deal in the next 30 - 60 days (before the 0% interest promotion ends for balance transfers). Wish I'd known all this sooner! And as previously mentioned in this thread, all Seed is doing is opening credit cards for you. You can do that. And, I'm just a PM away from some pointers on how to get significant credit card "loans" for free.

they never returned any of my call or emails

@Christopher Stanis, Did you use your Seed Capital money to purchase the property or was it financed as well? What I am really trying to figure out is that if you get all these new lines of credit, won't it hurt your ability to finance a home? I was thinking the Seed Capital program might just be for people making cash purchases without financing. I would ideally purchase a home with traditional financing and then use Seed Capital to help pay for the renovations and then flip the home. 

@ryan cybulski, 

Seed Cap was able to get me about 100k lines of credit on multiple different credit cards. I pulled 30k off of the cards to purchase a 7 unit fixer-upper. This was a 100% creative finance deal. The sellers agreed to carry a note for 120k on the property, and they are short term seller financing it to us for a 3 year term. $0 of my own money in, to get started, and after the remaining units are rehabbed, I should have a property worth b/w $250-$270k. 0% on most of my cards until spring 2016. and even then, my tenants will pay the bill until we refinance with a bank. 

Would you pay an organization 6k for help to buy a 7 unit property that when rehabbed will cash flow about 2k/month after all expenses (including loan servicing)? 

I know I would do it again in a heartbeat. It only makes sense if you have confidence that you can make more money with the credit than you have to pay. In my case, the numbers made a lot of sense. 

Thank you everyone who replied! Your input is greatly appreciated. At this point we haven't moved forward with Seed Capital. We haven't ruled it completely out at this point, but we haven't had the need to move forward with them just yet. We have never used this type of financing and were wondering about it in the event we found a property that we needed some additional funds not available by traditional means.

Anybody else have any thoughts or updates on how they've liked or disliked the product?

@Ryan Cybulski - Your assumption about cash purchases is likely correct in the short term. I would go into details but as I plan on using the program and I have read the contracts I cannot discuss the details of them. There are others that might be willing but discussing the details could breach the contract. My best suggestion is to contact them, get the contracts, read them and understand the cost associated and any short term limitations before signing on.

For someone, like me, serious about investing in RE (but new to the game) this is one of if not the best option I have found for access to cash relatively quickly without having a huge amount of savings myself or doing a 100% no money down deals. If you understand how to manage money it has huge upside. For people getting started this does seem like an all in kind of scenario for fix-n-flips....but it is a calculated risk.


Thanks for the info.  I too have been looking at using them, and they have been very aggressive about pursuing a relationship.  My use of the money will be pretty much just salaries for my growing team.  I have been boot strapping for the last two years, and I have enough business to take it to the next level, just not the capital backing.  The last two months having been killing me with 3 new employees, and I just need some bridge financing until they start producing.  Do you think its a good fit?  BTW grew up in Binghamton.

Originally posted by @Ben McMahon :


Thanks for the info.  I too have been looking at using them, and they have been very aggressive about pursuing a relationship.  My use of the money will be pretty much just salaries for my growing team.  I have been boot strapping for the last two years, and I have enough business to take it to the next level, just not the capital backing.  The last two months having been killing me with 3 new employees, and I just need some bridge financing until they start producing.  Do you think its a good fit?  BTW grew up in Binghamton.

Hey Ben,

It's totally your call. My suggestion is that if you are using credit cards/ Seed Cap to finance short term expenses, that you have a very definite plan in place on how you're going to use that money. Are the employees in place already producing results that will give you more of a return than you would be paying them?  Is your plan written, detailed, and are you running conservative scenarios that if the worst case scenario happens (your employees dont produce, a project that will pay back the cards falls through) - will you sill be able to pay it back and make a profit? If the answers to those questions is a strong yes, then great. If the plan is based on "the optimistic case scenario" then you may want to think twice. 

Hope this helps. 

Once again, BP members' comments here proved extremely helpful to me - thanks all!

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