FundBox - BlueVine - Kabbage - for Property Management Fees??

[Jamey Grant]

I am interested if anyone in the property management business has successfully used any of the new "receivable advance" financing groups out there like Fundbox - Kabbage etc.

I have used Fundbox with my online marketing/data management company to help onboard larger corporate clients that want me to upfront fund their Adwords spend.  Most of my clients just pay the ad spend themselves - but I have 2 corporate clients that - because of accounting - actually really can't do that very easily.

My real estate based interest in this is that I am looking at purchasing a Property Management Company that is looking for 30% down and will owner finance the rest of the purchase price - and if I can use a receivables advance to fund a portion of that 30% down - it would make coming up with the rest a little easier.  If they are running $50,000 per month in rent - the company is getting $5000 +/- as their management fee.  I could - based on what I do now - probably pull $4000 from the monthly receivable in an advance - maybe more based on gross revenue??  Pay it back over 6 months . . . not a bad deal - if those groups looks at PM companies . . . .

I am just trying to put the pieces together - and working to tie up as little of my personal capital as possible on the front end as this is a distressed sale and to really make this work the way I want I will need a decent amount of cash on hand to fund marketing and staff to get things straightened out on the ground.

Any thoughts or ideas would be greatly appreciated.