This is a follow up to my above post as I am now at the end of the funding process:
For you all :)
The sales guys do not give you much of the FACTUAL information, they make it sound so easy, but here are some of the positives and negatives, because there are so many details, I will walk you through the process.
The credit is ALL CREDIT CARDS
They told me that I was approved for 80-120k, in fact I ended up with 60k liquid
Once you are sold the product, they send you to another person that now gives you step by step directions on how to draw the money out
The first thing I thought was deceptive is that when I received my first cards in the mail, they asked me for a copy of the front and back of the cards "for credit increase requests."
They never got me any increases, but they immediately charged their $8995 fee to one of my cards. Keep in mind they said we pay this when we get "funded" not when we receive our "credit cards."
The bad thing about this is that you get your first credit card bill for their fee balance pretty much before you have any money that is liquid or have bought a property or whatever. Luckily I had a small amount of money in the bank, but this can be stressful for broke people if they think they are getting zero percent money and now they have a first credit card bill that has to be paid monthly before they can use the money to make money
My process ended up ok, but I had a rough road of things like this happening that really were stressful, things they could have just thoroughly told us up front
Next, I had a credit check card with a check that was not zero percent, but it was approved up to 30,000, but you can only charge your card up to a certain percentage on each line, so she said go deposit a check for 28,000
once it deposits, do two balance transfers from two other cards to pay it off. Sounds great, but just keep in mind that the bank accepting the transfer has up to 4 weeks to process it, so I when my credit card bill came, they had charged me $90.00 in interest for this layover on the 28,000
Oh, don't forget each credit card check and some of the balance transfers charge a fee usually 3% or 4%. In the 28,000 case, if I did it within 30 days of approval, there was no fee, but they charged me the 9.24 % interest for the days I had borrowed it
However, I have had about $2000 in fees charged on my other checks and balance transfers, these have to be paid, they are not interest free
And the credit card bills start coming. I finally figured out you can pay those bills with the money that you cashed out ( I keep it all in a separate account so I don't get confused on what is NOT mine)
Again, if you are very nervous about your credit as I am (it knocked about 20 points off mine) and worried about owing people and paying credit card bills coming in before you have enough cash to buy anything with, this is very stressful.
So I actually paid all of the transfer fees, I still owe about 8500 to my Discover for Seed Capital, I have about 57,000 in the bank, which really isn't enough to buy anything, so I still have to use hard money, but at least I have a down payment right? and I have to pay those 9 credit card bills every month out of my liquid capital.
Its kind of a conundrum. The process took about 2.5 months to get all the cash out with moving money from here to there.
The girl at seed was a little hard to get ahold of, and once I did all the cash out, I have not heard from her again. Not that I need her right now.
I hope this helps. Bottom line, if you are broke, don't do this, you need a little money to pay the extra fees or you are just getting in stressful debt. This program really costs about 13,000 when you add the transaction fees, the 8995 to Seed and the bits of interest you will be charged. Also, you don't get near what they say, I had FICO scores over 800 and they got me approved for 133,000 in credit cards, but you can't use some of it except for purchases and you can only as out like 85% so all in all I ended up with 60,000
so if you are fully knowledgeable of this, and do it, keep about 10,000 aside (which only gives me 50k now) to make credit card payments.
It does work though :)
Have a blessed day!
Don't know if it's the same company, a scam or legit. Funding for flipping has you run credit through CreditNav as well. Josh Allen and David Wadman are the reps I've been speaking with.
I was looking into this as it seems like cheap money based on what they state. They claim this is a line of credit with a $4500 fee once the account is activated with 0 interest for 12 months. This comes out to 4.5% interest of course. If what is said above is true, and these guys are doing the same, they are misrepresenting terms, rates and services. Not saying they are because I don't know but if they are this is fraud.
A credit line and credit cards are not the same thing so looking at this with much suspicion at this point. Still want to check it out though...
Elizabeth and group. Thank you so much for the information on the forum. I recently considered using these guys. However, it is clear to me that this is not the ideal vehicle. I currently work with a small team of renovators. I connect them to projects, find and research funding resources, connect them with lic. contractors and in some cases, if they are out of state, even project manage their fix & flips. I was in the process of re-searching by taking on the role of test dummy. Thank you for saving me the headache. My team pays out 9% and up for privet money. Depending on the risk factor, the interest paid can be higher. If you are interested in investing, I'm here to make a connection. If you are interested in learning about my team and our operation in the Phoenix AZ metro area, feel free to reach out. If you need funding, I have some solid resources and I'm happy to share them. Thank you all for being kind and sharing your experiences on this site. Best of luck in your investments and adventures.
I went for a 3 days seminar in Houston, Texas, to learn more about investing, the company PROSPERITY REAL ESTATE GROUP, with their CEO A.C. RAMOS and some of the big people perhaps manipulated to do a presentation during the seminar. We were told that we will be wealthy if we follow their instructions on how flipping Houses, I told one of their staff, that I do not like when someone considered me as number, as they treated me during the last day of the 3 days seminar. The CEO together with a female who is in charge of getting more people to sign-in online with Seed Capital Funding, she was not interested in me and my problems, rather in how she can get from me about $9000.00, after I was qualified with Seed Capital Funding, I did join the team of investors with PROSPERITY REAL ESTATE GROUP Investors, but I was not happy, nore of receiving a check from SEED CAPITAL FUNDING for a certain amount approved by them, the worst part was PROSPERITY REAL ESTATE GROUP will deduct from a check they wanted me to be received by mail the $49,995.00 dollars, plus the female who signed with Seed Capital Funding will get $9000.00 dollars, she said if I am approved from $80,000.00 to $100.000.00 dollars, that is the amount they will be collecting from me. I was passing 3 days in bad shape, without sleeping well, I did not tell my wife that I signed in with PROSPERITY REAL ESTATE GROUP until 3 days after, and at the end I will have the remaining minimum amount to cover for fixing houses from the $80,000.00, that will not be enough for me to pay for fixing houses, which I will be in need of borrow more money from others lenders, all this was a nightmares, how in my situation with no job I will be able to pay the money back to SEED CAPITAL FUNDING and perhaps others lending companies, with my monthly budget of $3000,00 per month, that PROSPERITY GROUP will put me on the stress, so I decided to get out of the PROSPERITY REAL ESTATE GROUP before receiving a phone call from an employee of SEED CAPITAL FUNDING, and that is what I did, I went to the PROSPERITY GROUP with my wife and I canceled in person telling one of their staff female, PUT ME OUT OF THIS, I am not interested in your company, I did it before my life will be jeopardized, thanks to God for the inspiration I received on time, no money I did received from SEED COMPANY FUNDING and no interview I did with any employee of SEED COMPANY FUNDING as PROSPERITY ESTATE GROUP wanted me to have in order to received a check from SEED COMPANY FUNDING.
By experience, I learned that PROSPERITY GROUP conducts business not to help new investors as they claim but for the benefit of A.C. RAMOS CEO of PROSPERITY GROUP, thanks Universe because the day I decided to get out of that group, I opened my Facebook and someone of my contacts put a message that I took it for me, the message that I read said DO NOT JOIN THEM, the message was not written by that person on Facebook for me directly, but thanks to that message I understood that from the invisible world that message which was the first one I read, was for me, and I thankful whoever posted on Facebook because that was a difference of been alive and do something about it and be death by stress.
I have used seed capital and I also haven't had the greatest experience. The house I purchased is not done being renovated and my year of no-interest on my credit cards has expired. Anyone have ideas for me to avoid the high interest?
Thanks!
@Jarred Curry great question. If you have owned the house for a year, you should have increased the value since you bought it. You may be able to get a home equity line of credit. However, you need to look for a program that does a drive by appraisal as it will increase the likelihood of you getting a high appraisal. Another idea is you can apply for business lines of credit. Typically they have lower interest rates and you can do a balance transfer from your personal credit cards.
Thanks, @Account Closed ! I appreciate the response and I'll look into those options. I think The business line of credit would be the best option for me.
Now that I read all of this I am glad I never applied for any money from them. But how do I cancel my CreditNAV account?
CreditNAV.com does not appear to be active anymore?
Does anyone know of any legal activities?
Thanks
I've used these guys, and I cannot in good conscience recommend them.
These guys are VERY good at what they do. They know exactly how to max out credit cards for you. They are very knowledgeable about the credit card options out there, and know exactly what the banks want to hear.
Unfortunately, they are very good at sales as well. They know exactly how to maximize sales, and hide their "consulting" fees away from you. They know exactly what YOU want to hear as well.
I've been able to leverage enough money using their services, and have been able to use the cash to make investments. However, your credit score will take a huge hit because of how overleveraged you are, and you'd probably need to make 15% on your money just to break even. It's not the numbers that worry me about this company though. It's the smoke and mirrors sales tactics, and just their dishonesty in general.
This thread has been VERY helpful and eye opening. I have a good friend currently going through the process. He received about $85,000 in credit card lines and is about to start pulling from them to purchase a property. I've been hesitant to pull the trigger with Seed Capital basically because I don't like the fact that it's all personal credit versus getting and building my business credit, which is ideal if you can get it. The other drawback with all of these similar companies is the fees they charge to get you the credit! I'd be more acceptable to paying the fees if they can guarantee getting that credit on the business side. Then maybe it's worth it because you're not getting hit with a double whammy! The fees are one thing, but then your credit takes another steep dive! It's a tough call for me to make at the moment.
Elizabeth Hammack, Thank you soooo much for your detailed account and knowledge learned. You've helped me more than you know. :-)
Financial Institution are committing consumer credit card and bank fraud along with partner Seed Consulting LLC
(seedcapital.com) and like many other companies like Seed Consulting LLC. WARNING! Don't get caught up with their scam.
Although there are better alternatives to getting funded for real estate, if you are starting off with little to no liquid capital and are READY to start investing as soon as you are funded then this may be an option to consider as long as it's short term (Less than 1 year). I did it myself and I guess since my background is banking I understood what I was getting into, I knew the credit lines were credit cards and I knew it would affect my credit score that is why I made sure I wasn't going to need to make any major purchases in the near future. Everything played out exactly as it was explained to me and they actually got me approved for more than expected. The funding process is in the form of balance transfers (0% interest for 12-18 months normally but you will pay 2-4 points upfront on the money you pull out), granted you most likely will not be able to access all the funds because there may be some credit cards that do not allow for balance transfers but most do. You can pay the fee Seed Capital charges you from one of the new credit cards (I would use one that doesn't allow balance transfers since you can only use it for purchases anyways). It's good to note that in most cases if you're a new investor hard money lenders will only lend you 70-90% therefore you can use these funds to fill in the gap, if your first flip is successful you should be able to payoff the fees with the profits. You can also use these same liquid funds you got from these credit cards to make the minimum monthly payments. In conclusion, although this isn't the most ideal funding option for some it may work for others looking to get started in real estate investing.
This thread has gone off the rails. The moderators should shut this one down.
@Account Closed, why not? It's about as relevant. Seeds for planting is the standard metaphor used for investment capital. Why not discuss seed planting here in the forums? I am sure we can connect this back to the original thread in due time.