All Forum Posts by: Kyle Hardie

All these comments are correct!  Stay away!  If you need cash, you can ask your local bank about secured or unsecured Lines of Credit.  These companies like Sprout make everything so confusing but also make it sound like a good deal.  I was stuck with a fee, two credit cards, and 4 hard inquiries on my credit.  My credit has since come back a little bit, and over time will recover - takes about a year for those hard inquiries to disappear.  Hard lesson learned.  They also said if you "interfere" with the funding process, you could get charged additional fees. Of course this was after the fact.   So if you freeze your credit, turn down one of their credit cards, etc. they will hound you until they can obtain funding. These Loan Sharks were through Connected Investors.  

Joe Clinton, what was the result of your line of credit, did you pay the fees?  Thanks.

I spoke to a representative at Sprout today as well.  Just as said above, they obtain different unsecured lines of credit through credit cards.  They charge a 9.99% fee of your approved amount.  So if you are approved for $50,000, there's automatically a $5,000 balance on your line of credit you are required to pay back.  This will be at 0% interest for 12-18 months.  I asked about the lines of credit and getting hit with inquiries, he said it would affect your credit a little bit at first, but after the lines are open, and you start paying them back, it would actually help your score (that's what he said).  I also asked him if there are any extra fees or interest charged from the companies that issue credit, he said no.  I'm in the process of getting approved.  He said he can limit the number of inquiries and dollar amount of approval.  We'll see.  Does anyone have this same experience?  

Matt, thank you for your post.  I am a new member to BP, so not sure how much clout I have.  Just yesterday I had the same conversation with Jessica LaRusso at Seek Capital and they also offered me lines of credit through un-secured credit cards, offering 0% interest for 12-18 months.  I received a call from them after signing up for lending through Connected Inventors (I know there's mixed feelings about them).  Needless to say after reading reviews on here, and other forums, I became skeptical.  I'm not as far in the process as you were, but I did end up calling and emailing her to cancel any transactions and inquiries.  I have a secured line of credit at my local bank, and for my first deal, I think that is a good way to start - with someone you know and is local.  

Hello, my name is Kyle Hardie and I live in Fairmont MN.  It's a fabulous small town in Southern MN just off Interstate 90.  I first started out in Real Estate by house hacking in college.  I lived for free for a couple years, while collecting rent checks.  It was a great experience as I learned about the benefits of real estate.  After selling the property, my real estate investing journey went on hold for several years while my family grew to a wife and three beautiful daughters.  Last year I re-read Rich Dad Poor Dad, and I've immersed myself in learning more about real estate investing ever since.  I work full time at a decent job, but have quickly learned that I needed to make some changes in my families life by securing our financial future.  I came across Bigger Pockets and am thankful for all of you and the podcasts.  I am researching my first deal in town (a foreclosure), and hoping to slowly but surely acquire properties for cash flow and retirement security.  I hope to see you around the BP community.

Kyle