Mike Banks and Ari Page
Episode 2: “FUNDING YOUR DEALS” using Private Funding Sources:
0% Credit Cards and Unsecured Business Lines of Credit
Ari Page is the owner and CEO of Fund & Grow. His company helps small businesses and real estate investors get significant funding (up to $250,000 and more) and much of it is at zero percent interest via creative credit card financing. To date, the Company has raised over $250M in credit for its small business clients. Ari acquired the Company in 2009 and has grown Fund & Grow by 450% despite the great recession. Their approach to employees, affiliates and vendors the same – treat people with kindness, respect and care, go out of your way for them, and everybody wins. Ari resides in Spring Hill, Florida with his wife, Maja, and their two children.
Mike Banks is the COO and Marketing Director of Fund & Grow and works directly with CEO Ari Page. With over 8 years of success and growth, they have built a thriving business based on offering exceptional service to their customers and a dynamic and rewarding work environment to their employees.
Mike regularly hosts live webinars and creates elite Joint Ventures and Partnerships with other Expert Trainers and Affiliate networks, many of which are looking to help their clientele finance deals and purchases at 0% for 12-18 months.
What you’ll learn about in this episode:
- How bad credit REALLY hurts you!
- Some easy types of funding
- The difference between “Good Debt” and “Bad Debt”
- The difference between “Personal Credit” and “Business Credit”
- How you can use these private funding sources for any type of business – not just for real estate deals
- How to use these funding sources to make your deal a no-brainer for your private lender
- Why 8 out of 10 new businesses fail
- How to ensure you never run out of public/private funding sources
- Why you should let the pros fix your credit and increase your funding resources
- How inaccurate data affects your credit scores
- Why banks like to give out credit cards
- How you can build up to $250,000 in credit over 12 months
Mitch: This is Mitch. And we are here with Real Estate Investor’s Summit Podcast, I’ve got two guests today. And boy, they are a great team. Ari Page and Mike Banks of Fund and Grow, that’s Fund and Grow. And you’re going to want to pay close attention because these guys can be the key to getting your career, your business, especially your real estate career off the ground.
One of the biggest obstacles that real estate investors face when they first starting is they just don’t have any money. I can’t tell you how many times I’ve heard that. This is a solution to that. And I’m gonna tell you more about why I know about this solution. But right now, I want to introduce Ari Page and Mike Banks.
How are you all doing?
Ari: Hey, Mitch. Thank you so much for having us on. This is Ari, am really looking forward to this today. And like you said, we have Mike here also.
Mike: Hey, Mitch. Thank you so much for having us today. We are really excited to be doing this with you.
Mitch: Well, it’s a pleasure. By now, we’re good friends because we’ve been doing business together for a while and sharing each other’s stories. I really wanna thank you for coming because you have helped at least 90 of my coaching students with their credit issues and to find lines of credit or zero percent interest credit cards that they have used to launch their career.
As a matter of fact, I want to point out to the audience, Ari and Mike and their business, Fund and Grow, has produced over 6 million dollars or headed towards the 6 million dollar mark for my coaching students. And boy, it really makes a difference. I mean, you don’t have to have money when you start out this business but the sooner you can find funding these private funding sources, you know the sooner you start to explode.
So, I wanna address the first thing. I don’t think people understand, Mike, just how bad credit can hurt you, and hurt you in all different ways. If you have bad credit, you may not realize how expensive your life is because you have bad credit. Tell us some of the things that are more expensive if you have bad credit, Mike.
Mike: Well, for one, you could end up with higher insurance rates, some of the insurance companies are gonna check your credit, you could end up paying higher interests rates on your mortgages, on your auto loans, on your credit cards, really anything that has to do with a credit review. If you are not taking care of your credit, if you don’t have high credit scores, you will end up paying more on all of those things. And even if you gonna rent a car in some cases, they will look into your credit or your employers will look into your credit.
So, if you are looking to get into real estate investing or you are an entrepreneur starting business or you are already in business, at this point, you should really start looking at your credit and take the steps you need to improve it.
Mitch: Yeah, I know that even sometimes, the utility companies charge bigger deposits or something, if you don’t have very good credit. So, if you are a real estate investor and you are buying multiple houses, and you have to pay an extra 150-200 dollars every time you want to turn the utilities and put it out as a deposit. And of course, you real estate investors know how it goes; you don’t always get all that deposit back or it’s a long time to get it back. And you have to keep track of them to get them back because no one’s gonna voluntarily send your stuff back, of course.
So, how are people using Fund and Grow and tell us a little bit of the types of credit lines that you guys can get for people. What kind of sources?
Ari: Yes, that’s a great question because they are so many different forms of funding out there. One of the things that we do at Fund and Grow is actually help explain and teach folks the differences between corporate credit and business credit and how does your personal credit tie into all of that. And so the loans that we generate that are most desirable by our clients is the loans that can be accessed directly as cash, and these loans are business credit cards. And so the credit card does not show up on your personal report. You do not have to pay a cash advance rate. We show our clients how to get the cash off the card and we are also able to utilize the zero interest introductory period. It could be as long as 18 months, it could be 12 months, there are some that are shorter like 6 months but, regardless of the duration of the zero percent period, we all can agree getting access to credit at no interest rate, even if it’s only for 12 months is – could really be amazing.
And what we do is we do card stacking, so we are getting these business credit cards that are unsecured, they do not appear on your personal credit. They have a zero percent introductory rate for at least 6 months, most of them 12 to 18 months. You can pull the cash off those cards and spend it anywhere in your business. And the card stacking aspect is when you are adding multiple credit lines together. When you add multiple credit lines together, then you can get the larger amount 200 -300 thousand.
Mitch: Wow. So, I wanna let everyone know that I did my first 100 deals on credit cards and in my book, “My Life in a Thousand Houses: Failing Forward to Financial Freedom”, there are some pretty funny stories about the stress and distress that falls on the people around me, mainly my wife. I was never worried about borrowing money on credit cards because I always knew that, that was a good debt for me. There is good debt and there is bad debt, right? You know, Kiyosaki’s good debt, bad debt. And good debt makes more money that costs and bad debt costs you money at the end of the day.
So, I was, you know, I might have had a hundred thousand dollars worth of credit card debt, or two hundred thousand dollars worth of credit card debt, but I had four and five hundred thousand dollars worth of houses that they didn’t had any payments, you know, and so I could have some time to breathe and manipulate them, one at a time. So, for the record out there, you guys, I have lived this life of using credit cards to buy houses, it does work. It goes against standard or traditional thinking, and at first sight, or the first time you hear this, you will think, “Oh no, credit card debt! Credit card debt is horrible. Don’t ever do that.” No, no, no, no, no…Credit cards don’t ask any questions. Once you get approved and you have a credit limit set, you can go use that credit limit. They don’t ask any questions, and you own that house basically free and clear because they are no liens on it. You just have to remember that when you sell that house, call the credit card companies and make sure you pay them off just to keep the difference.
So, you know, I know you have real estate people doing this, because I sent you a lot of those people. There is probably tons of them around the nation, but what kind of other companies are using you. You are not limited to real estate investors, I mean you have other businesses using your services, too, right?
Mike: Yes, absolutely. I wanna say one thing about the good versus bad debt.
Mike: Any type of debt that you have, if it is being used towards an asset – and, obviously, an asset is something that makes you money – then, that’s good debt. Like you said, anything that is making you money, that’s gonna be good debt. So, it doesn’t matter if you are making a hard money loan, or if it is coming out of your pocket with your own cash, or if you are using a credit line with zero interest, either way, that debt is good debt because it’s gonna be providing you with a return on your investment. So, anyway that you can leverage, you should definitely be doing that. And then…
Mitch: It is hard to argue on zero percent interest, right? I mean, that’s the cheap – credit cards are the cheapest partner you’ll ever have. It doesn’t complain, it won’t steal anything from you.
Mike: Doesn’t want any equity…
Mitch: It doesn’t want any equity, it doesn’t want any part on your lifelong cash flow, you know, it just sits there and shuts up and does its job. It does its job one time and lets you take the money out of it, it does its job another time when you pay it off and then it zeroes out. So, that you only have two things to do.
Ari: Exactly. And we find that the best way of building this equity is, because we are obviously big believers in credit cards but, we like using business credit cards and am not sure when you were doing your investing, when you were at the point where you were using credit cards, Mitch. Were they personal credit cards? Or were they business cards? It is a big difference, if it will show up on your personal credit report or not.
Mitch: Oh, mine were personal, and this is a great point. Mine were personal credit cards and my credit suffered because of the way I was using these cards sometimes. I mean, they didn’t really like what I was doing, the credit scoring system didn’t like it. And, you know it was good enough, and it got me where I was going and I would have been better off or better served. But, I wasn’t smart enough to get someone like Fund and Grow to help me. I don’t even know that there was Fund and Grow kind of company back then. This was in the early 2000s, or 1999-2000, 2001 and 2002. I don’t think there was even someone remotely like Fund and Grow, was there?
Ari: I don’t remember any credit card companies back then. I could remember doing home equity lines – that was the big thing back then was, everyone was getting home equity lines.
Mitch: Yeah. You know. I guess it has a place. I’m not a real fan, I’d like to keep my home out of that.
Mitch: You know. So, just for some history, both Ari and Mike were doing mortgage loans way before 2007. They did over 600 hundred million dollars worth of mortgage loans, so they are not new to this money borrowing business. And then, since 2007, they have put together over 250 million dollars worth of credit limits for people. So, these guys are not just trying this business on to see if it works. They really know what they are doing. So, Mike, tell me about the other kinds of businesses that use you, because I do wanna cast a bigger net than just real estate because there’s got to be all kinds of companies that could use zero percent credit cards or business lines of credit or whatever.
Mike: Absolutely. We have all different types of affiliate organizations sending us clients on a daily, weekly basis and we have clients in the attorney field, we have clients who own an Amazon business where they re-sell different things on Amazon so they need funding for inventory. We have just your standard brick and mortars, local businesses, whether it is like a landscaping business, and used car auto dealership, really any type of business owner or real estate investor, obviously, like we discussed earlier, can use this type of funding. But, Ari, do you have any other examples of the businesses that we work with? I am just trying to think off of the top of my head.
Ari: What we have are entrepreneurs that own multiple businesses where they may still even work a professional job and they own an investing business where they may be generating passive income using certain passive income vehicles. So, there’s a lot of different ways to make money. As long as you have a model to make money, you’re going to need access to funding, you’re gonna want access to funding in order to expand that.
Mike: We have a lot of clients, also, who are in the trucking business or construction business, we have a lot of clients who are just looking for funding to start marketing their own brand so that they can start doing their own type of coaching.
Mitch: Listen up, entrepreneurs. I mean, just because we are in the real estate business, doesn’t mean that I won’t reach over there and buy a Corvette if I see one for half price, you know, the neighbor across the street or something. So, it’s sometimes all about just being able to reach over there and grab the money to capitalize on a spur of the moment deal that you see.
Ari: Yeah, absolutely. You know, an interesting story kind of going back to the use of your personal versus the business – I have a house over by our office in Spring Hill here in Florida and my neighbor over that house, they’ve been flipping homes for quite some time now, for long before we had ever bought that house. We lived there for a period of time and we met the neighbors and they were really cool, they told us about what they were doing and the money that they were making flipping homes, and the interesting thing was they were doing a lot of this using personal credit cards. And there ended up being issues when their credit scores were depressed in between flips when they were most maxed out, where they had issues where certain credit accounts have been called and interest rates have been jacked up and they had certain kind of issues that came along with maxing out all their personal accounts.
And so, eventually they broke down and they signed up with us because they know me personally and they’ve literally received hundreds of thousands of dollars now that are completely not tied to their personal. So, you can now, they can leverage the entire account without their personal scores being affected at all. They can co-sign for their son, who happens to be a bowling expert. This kid is amazing, he is all over TV down here in Florida, and so they co-signed for a car for him and all that. And usually, those kind of things will hurt you, if you’re completely maxed out on your personal, then you can’t co-sign for your kid, you can’t help them out when they need help and so, using business is, using your business credit, not allowing these accounts to show up on your personal credit – don’t be fooled by the fact that they call it a “credit card”, these are business credit lines and can be used just as that when you use it properly and have it report to the tax ID of your company.
Mitch: And you are even giving me ideas. I’m gonna show up on your doorstep here in a couple of days myself because, when you start thinking about zero percent interest and what you can do with that. I mean, imagine if you are a real estate investor and you didn’t have – you could buy a house for 30 thousand and you needed 20 thousand for the repairs, but you could go to your lender, whoever that is, your private lender or whatever and say, “Look, loan me the 30 thousand to buy the house and I’ll give you the first lien, don’t worry about the repairs, I’m gonna handle that”. Then, BAM, you put your 20 thousand dollars of repairs on your zero percent credit card, you know. And, number one, it makes real easy to get a loan, because the lender sees you taking some of that risk by paying for all the repairs at your side of the equation.
This is a great way to raise private money is to use these zero percent credit cards to make your deal a no-brainer-deal for your lender, if you are following me. You know, if you can have a house you can buy for 50, why don’t you put up 30 thousand on your – I’m sorry, put up 20 thousand on your zero percent credit cards and just ask for your lender for 30, and let’s assume that this house is worth 80 to a hundred thousand dollars. So, now you just can buy it for 50, you put up 20 thousand on your zero percent credit card, and now you are just asking your private lender, who you want to get to know, who you wanna get your hooks into, and you are only asking him for 30 thousand dollars on an 80 to a hundred thousand dollars house and you’re gonna give him first lien.
This is the perfect way to make a deal so good, that anybody with money would be tempted to loan you their money. Because, how can a private lender lose when they’re only gonna loan you 30 thousand dollars on a house that’s worth 80 to a hundred thousand, you know? When you have it done because you have zero percent credit cards and you could put in 20 thousand yourself towards that 50 thousand dollars sales price. So, I know a lot of ways to use these cards to get private money and use your credit card money.
The other upside to that is, you got twenty thousand dollars without paying any interest on – it’s your whole rehab! – It’s your whole rehab, and there is no draw process, you don’t have to slow down and wait for the lender to come out and look at your job before he’ll give you the next draw on your rehab budget. There’s a lot of reasons in real estate to do this and I love it. So, how long does it take to…?
Ari: You know what…
Mitch: Go ahead. Go ahead.
Ari: I’m sorry for cutting in there, I just wanted to say, you know, that according to Bloomberg, 8 out of 10 businesses fail within the first 18 months due to not having funding. So, you can pretty much say that, if you are a real estate investor out there – If you are one of those 2 out of 10 that are succeeding – you are definitely using all forms of leverage available to you. You are not sitting around, twiddling your thumbs, thinking, like a deer in the headlights “Should I, should I not”. You are definitely going to be that 8 out of 10 that fails.
If you wanna really move your business forward, advantageously, you have to strategically use all forms of financing available. Obviously, you have to be strategic about it and using funding that is not secured, that is unsecured, is huge. And you may not be able to get away with using unsecured funding for all aspects of your real estate business, but, for the rehabs, for buying small properties under a hundred thousand – if you can buy all of that and keep it all unsecured, then, God forbid, you are not able to make your payments one month. If you are unable to make your payments and you missed a few payments in a row, they don’t take away any of your assets. They don’t take away, if you bought company assets, like a vehicle, or pizza ovens or if you buy a piece of real estate, or if you were doing a rehab, none of it is tied to any of the assets.
So, your assets stay intact and those assets are earning you your income. So, luckily enough, your assets and your income generation stays intact, while you may end up getting a bad mark on your credit report because you didn’t pay the credit. So, using unsecured credit is a much safer form of funding and, in the case that you do incur a late payment or something from one of the business credit cards, that can be deleted. You can get those things removed off your credit report and, like in the past, I had a lot of derogatories on my personal credit report. But, now, I have scores that are over 800 and that’s because I got those items deleted and then I moved forward and built myself good personal credit. But, I continued to use it and paying everything, the way you are supposed to pay it.
But, if the worst would happen, like what happened in 2008 when Citibank and Chase and all these big banks – they needed a bail out. They didn’t get a big fat 30 day late on their credit report, they didn’t get a 60 days late on their credit report but, you know, if the worst happens where, just like in 2008, the banks couldn’t pay it, if it comes where we can’t pay it, the worst that’s going to happen is you just get a late payment on your credit report and they give you a period of time to get the account back into good standing and then you can get those late payments removed. So, using safe forms of financing is much more desirable than using financing where the investor could call the note, they could take the entire property if you are not being able to pay the note, or there’s other technicalities involved that if you don’t make certain payments at certain times, certain balloon payments, you then end up losing the whole property.
Mitch: Well, what a great set of people to have at your round table: Ari Paige and Mike Banks. You know, if you have questions about that, you could call them up and say, “You know, I’m faced with this dilemma, what’s the best thing to do?”, and then they tell you. You know, and they’d be right on top of the game. And I’m glad that you mentioned about the time that it takes to close deals because, sometimes, closings don’t happen on our time frame.
And so, let me ask you this, do you all have a success story of how people have used Fund and Grow in the real estate business? Do you have a short case study?
Ari: Yeah. Actually, one of my friends, his name is Seth Hemrod, well he was a client of ours. He started and Seth didn’t have great credit. His credit was kind of shot due to the whole 2007-2008 debacle. But, he did have a brother who, his brother was willing to work with him. And his brother was a retired librarian, but had fairly good credit. So, he got started with us. And in the first 30 days, or I’m sorry, in the first 60 days, he got a hundred and twenty thousand, using his brother’s – his brother as his guarantor, so his brother working together with him created business funding that didn’t show up on either of their credit reports, got a hundred and twenty thousand that Seth was able to able to go out and invest with. Then he continued working in our program where we then helped him fixed his credit, and we helped him rebuild the array of accounts on his personal credit needed in order to have a good personal credit score, because when you delete bad credit, you have to build back an array of good accounts. You have to build back some accounts to show that you have good credit.
So, we built that back for Seth, then, we moved forward and build him a business credit profile. So, within that year period of time, between him and his credit partner, they built $347,500 and again, I want to remind you that, Seth’s brother was a retired librarian. And so, he had good credit but he didn’t have a lot of income, that was not what was needed in order to get this start up funded. So, now, they have $347,000 and that was just on their first cycle with us. So, they’ve since subsequently signed up again for a second year’s worth of service so that they can build that even further. And his company is MW Realty Advisors, LLC and they are just one of our clients. We have a lot of great clients, though. We have a lot of clients that are fairly big names, like you, Mitch. You know, we have others that no one has ever heard of, but they are highly successful in their model. They’re selling a lot of real estate, they are doing investing.
We have clients that are in a whole different variety of fields. They are not all in real estate. They are in all the different models, business models out there. We have clients that are making funding. We have one client, Randy Larkins, who actually Mike is personal friends with.
Mike, tell us a little bit about Randy.
Mike: Yeah, Randy Larkins – he’s out of, I think, Memphis, Tennessee, and he owns a used car dealership. He also owns a pawn shop but he, just after working with us, he got into real estate investing and he’s being doing a flip every 90 days using the credit that we got him. We got him $180,000 and he’s been doing a flip every 90 days. He’s gotten more inventory in his car dealership and his pawn shop, of course. Blue Moon LLC is the name of his auto dealership in, I believe it’s Tennessee.
Mitch: Well, so, look there’s two great case studies, everyone. And I wanna tell you: If this program cost $10,000, it would be worth it. And I’m here to tell you that it doesn’t cost $10,000. It does not cost $10,000. But, if it did cost $10,000, it’d be crazy to walk around this world, with all the opportunities that an entrepreneur can see and not have funds to take advantage of them. And to think that you could not make back $10,000 with a fifty or a hundred or a hundred- twenty thousand dollar zero percent or very low interest rate credit card, would be crazy.
In fact, it would cost you money not to have this kind of funding source at some point, because, at some point, there’s going to be a deal that you should have done and you would’ve done, if you’d have just been ready. And, because you hesitated or you waited, there goes twenty thousand dollars worth of profit on that house because you sat on the fence too long. And I’ve seen it happened, you know. In houses, in most great deals on anything, you can’t make great deals in slow motion. Usually, you have to move fast – there’s usually some kind of back pressure and you need to – you don’t have time to go ask the bank’s permission and fill out all these forms and do all this stuff. You just need to cut a check right now at the title company or whatever. So.
Mike: That’s a great point and something that you just reminded me of is the negotiations process that we carry out for our clients and, looking at Randy Larkins’ credit gain view right now, and when he initially started with us, when we initially applied, the bank only wanted to give him a total of $15,000. It wasn’t until after we did our appeals and negotiating process that we got him up to $180,000.
So, he went from fifteen, one-five to a hundred and eighty thousand due to the negotiations process that we are talking about, which is us following up on a client’s behalf with each lender that we applied to and getting the largest approval with each application. Because, in many cases, the bank is only going to grant you a small amount when you initially apply. So, you really need to follow that negotiations concept and follow up with each bank and request to get the largest amount possible. And that is something that we have a team here in Florida doing for our clients on a daily basis. They communicate with the bank.
We have relationships with each bank that we work with, so it makes it a lot easier for them to connect with the decision makers and really get an approval that is actually gonna be substantial for you and your real estate business.
Mitch: Yeah. I was gonna ask you for a success story in the credit repair and you just give it to me ahead of time. Are you clairvoyant, Mike?
Mike: A little bit. [LAUGHTER|
Mitch: I want my audience to hear me really loud and clear right now. Do not try to do this on your own. Don’t go to the internet and buy a ten dollar, or a fifty dollar or a hundred and fifty dollar course on how to fix your credit, because, these guys are professionals. They know the algorithms. They know what these companies are looking for. They do it every day. Don’t waste your time doing that. If you are in the house business, then let’s concentrate on finding more deals and making great deals and leave this to the professionals. This is one of those things you can delegate. And I enjoy a great life these days because I have learned the art of delegation and you would never find me trying to fix my own credit because that’s not where I make my money.
I make money finding houses, putting them under contract for half price and then selling them at a great profit. And you take some of that money that you make and you let professionals help you, and this is a perfect area in one of the chairs that needs to be on your round table, is right here; zero percent interest funding, business credit lines that don’t affect your personal credit. You don’t have to ask permission. It’s fast. I don’t know, this has been a great conversation, I don’t think we need to drag this out much longer, because, if you haven’t gotten the point right now, guys, you’re just not gonna get it.
Ari: Well, Mitch. One thing I did want to insert real quick was that there’s probably some people who are listening right now that are thinking, “Well, I’ve gone and tried to get this on my own and I couldn’t get it, so, this is all bull-hooey.” And I just wanna speak to those folks for just a minute because positioning is a really important aspect of what we do. Making sure that someone really qualifies for this before applying and, remember, when you apply with the bank, you’re kind of establishing where you’re at. I mean, they’re gonna hold on to that application for at least 6 months, maybe a year, and so you really need to fix all of that ahead of time. And we’re not just talking about credit repair, because there’s some people that are listening right now that say, “Hey, I have good credit and I am not getting access to the $250,000 of unsecured business credit cards not on my credit report.” And I can go through a whole lot of reasons why. There’s many reasons why.
The capital acquisition process – there’s many different bullet points that we have to go over on your credit report to make sure that you can batch and qualify, and guess what, all of these things are items that we can perform for you to make your scores go higher. We’re not even taking credit repair, now. We are talking merging, merging like accounts together. We are talking about updating, mortgage seasoning, because one mortgage bank was bought out by another mortgage bank because of the 2008 debacle. And so, a lot of these banks that were bought out just reset the seasoning because they only held the mortgage for, you know – if they just bought out the other bank, they reset all the seasoning of all the mortgage loans they just bought. I could go down a whole list of items that we see commonly on folks that have good credit scores, but these are unbalanced ratios and items that have to be updated and addressed. Sometimes, it is as simple as the employer, where they have mismatched employer and address information, and you kind of laugh at that and say this is why they are having a hard time with fraud and the bank doesn’t believe who they are, and they have good credit and they are just not getting approved and they don’t know why.
Mike: And, if you Google it, you’ll find articles about the millions of Americans that have all this inaccurate data on their credit report that’s hindering their scores and disallowing them to get further credit lines or further mortgages. And it is really just inaccurate data on their reports, so that’s what Ari’s talking about. We help you guys correct that stuff before applying so that you get the best results possible.
Mitch: It’s incredible stuff. Like, I said, I’m going to reiterate. I bought houses and made deals on my credit cards for hundreds, and that’s how I launched my career. I know students, we have over 90 students, my students that have gone with Fund and Grow. Some of them were able to start out, right off the bat, because they have good credit scores and start getting lines of credit. Others have worked on their credit. And I know the success stories in the pile there. You know, there’s been numerous people go from credit scores that weren’t worthy to credit scores that actually can get the job done. What is the credit score tp get the job done? The last time I’ve heard, it was around 720. Is that right?
Ari: If you have a 720, then that means that we can move forward right away pretty much.
Ari: But, if you have below a 720, then that doesn’t mean you can’t be helped. Remember, Seth? Seth received $347,000, but his credit, we were unable to move forward on. And even his credit partner, it still took us 2 months to move forward on the first batch, but then we got over a hundred thousand on the first batch. So, the positioning can take time. For example, with Seth, and within that specific situation, the credit partner, there were items we had to update. So, when we update those items with the bank, it takes 30 days for that to update with the credit bureaus. And we are dealing with 3 credit bureaus.
We are dealing with a variety of different banks. Sometimes, one of them won’t update it that month, so we have to wait another month. Either way, when we update your report, we then have to wait the 30 day cycle for it to update. Now, we could do a rapid re-score but, a rapid re-score would put more inquiries on your credit report. So, we are trying to remove inquiries, consolidate, merge accounts together, remove any accounts that have short seasoning, merge the older accounts into the newer accounts so that we have longer overall accounts but less overall accounts. And what we call this is killing codes. We can affect these specific codes that we know will hurt you the most. They are the codes that the underwriter’s asking about when our people are doing the negotiations for you. And you remember how important the negotiations process is.
That’s where we’re really taking their situation, wherever it is, after we’ve already enhanced it and we have applied. We then take it and we try to enhance it even after the application. We call and we explain, “Well, this is why this is the way it is on my report. And that is why that is the way it is and this is what my business model is. This is why I’m a good bet.” And, when that underwriter, they have the ability to decline you, or they have the ability to approve you for a $75,000 account. The underwriting on business credit cards is completely different than the underwriting on a mortgage loan, on a secured loan, on an auto loan. All those loans are highly regulated by the government. These business credit cards are not. They are the preferred way that the banks are getting money out.
We keep a close look at the – a close eye on the Beige Book that the Federal Reserve puts out every month, or, I’m sorry, every quarter. And, so, they put out 4 of the Beige Books every quarter, or every year, once per quarter. And, in the Beige Book, consistently, over the past, I believe it has been 11, ten or eleven quarters, they have consistently shown that credit cards and unsecured lending has outperformed auto loans and mortgage loans.
Ari: That’s right. There is more credit card and unsecured lending going on than even on mortgage loans. That’s a shocking statistic but it is also telling us that the banks really like giving out money through unsecured funding, through these credit cards because they are not highly regulated by the banks or by the government.
Mike: Also, the other reason is that it takes less employees to approve a credit card than it does to approve a business loan or a business line of credit because, there’s a lot more of verifications, there’s a lot more documentation that they need before they can approve it.
Ari: There’s simply less regulation, which makes it costs less for the banks to…
Mike: Exactly. Exactly.
Mitch: So, let me tell the folks out here how to get to you. It’s www.reinvestorsummit.com/grow. Then there’ll be a little intake form there. You fill it out – it’s real simple – and you owe it to yourself just to get an initial consult of what might be possible. And don’t, don’t pigeonhole yourself, no matter what you think, you owe it to yourself to get a little consultation with Fund and Grow and see what the possibilities are. Because, believe me, you have no idea how many options there are for you. And they’re gonna tell you about those options.
How long does it take, Mike, by the time, if someone comes to you and they say they’re gonna go with your program – How long does it take before they start getting funding? Let’s say they have a 720 credit score and they are ready to hit the ground running. How long does it take to see some results?
Mike: Typically, within the first 30 days, sometimes within the first 2 weeks but, within the first 30 days, our clients are receiving between $30,000 to a $150,000. And, for the clients that bring a partner into the program with them, they can get even more than that in the first 30 days. So, the 720 and up, they are looking at about $30,000 to a $150,000 and that varies because everyone’s credit varies. Some people are going to have larger credit cards on their reports. Some people just started using credit, so, those people are gonna need to add a little bit of strength. And that is something that we help them with, as well. So, if a client has below 720, we also have a solution for them. It is called Kaydem Credit Help, it is our credit repair company who will remove their negative items, whether it’s a late payment, a bankruptcy, foreclosure, lien, whatever it is. Our credit repair team will remove those items so that, in the next couple of short months, they’ll be ready for us to start applying for the business credit lines for them. And also, they have the option of adding on a partner. So, they can bring in their spouse, family member, business partner, and that will allow us to get them immediate funding.
Ari: And, to be succinct, what all that we’ll provide for anyone that joins us, is we provide up to $250,000 of the zero percent business credit cards. We show you how to cash out. We also provide a $100,000 of the nonrecourse corporate credit, which we haven’t really talked about on this podcast. So, we also help out the client with the formation of a lendable entity. And when I say help out, we set up an entity for you at no cost. There’s no ongoing cost to this entity. And this is set up so that you’re most lendable.
In some cases, we use the client’s existing entity, but we go over with that with the client when they get started. Then, of course, we’re gonna help them remove the cash off the cards, without doing a cash advance and we’re also gonna help the client remove credit inquiries off of their personal credit report because sometimes, inquiries can be incurred through this whole process. So, through the 12 months of one on one unlimited coaching, you’re gonna build up to $250,000 of this type of funding. And we have some bonuses that are laid out and you’re gonna see them on the website. Once you go to the link that Mitch mentioned earlier, you’re gonna see the bonuses that we have for anybody who is an action taker.
If you are an action taker, and you want to start making this make money for you right away, then go ahead and put your information in. We’re gonna have one of our associates reach out as soon as you put your information into the website, you’ve locked in all the bonuses should you get started for the program.
Mike: Be sure to use that link, it’s reinvestorsummit.com/grow, that’s R.E as in real estate investorsummit.com / grow and make sure you owe it to yourself to get a consultation. You have no idea, and this could be the difference between doing alright this year and really making some great money because you’re gonna be able to take advantage of opportunities and not have to ask permission, not have to go find partners, not have to fill out a bunch of paperwork and wait until the deal’s dead or cold. You’re gonna be able to move fast and grab your deals. You know, you can’t steal houses in slow motion, that’s what they say.
Mitch: Alright, Ari and Mike. I think we’re about at the end of our time here. So, I really wanna say thank you and I appreciate you guys taking the time to come on. You’ve been a really big blessing to me and a lot of my students. I just wanted to have you on the podcast.
Ari: Thank you so much. I just wanted to throw in there that we are really excited about the fact that, we are close to $6 million now of funding that we have created for your pool of clients so far. For just for the clients that you have sent us. We’ve generated almost $6 million in funding.
Mitch: Yeah, that’s true. And it has changed a lot of people’s lives. Because, you know in the beginning, it’s tough. And that’s where, like you said, the rubber meets the road. I mean, if you’re gonna make it, you’ve got to make it through the first 18 months, the first 2 years and it’s hard when you have no funding and you are running around in a panic all the time. It is also very stressful. And this takes a lot of that stress out of it.
So, again, thank you very much. That’s reinvestorsummit.com/grow. G.R.O.W. Alright you guys, have a great day and we look forward to hearing some more case studies, maybe in the future, huh?
Mike: Definitely. Thank you so much, Mitch.
Ari: Thank you for having us on today, Mitch. We really appreciate it.