Type:
Real Estate
Focus:
Equity & Debt

Overall:

Platform Provided Due Diligence:

Platform Fees:

Quality of Deals:

Website  - Groundfloor

Fees - 1-2% annual management fee

Phone - 678-701-1194

WE MAY ONLY MAKE OFFERS FOR INVESTMENT SECURITIES TO RESIDENTS OF MA, MD, DC, VA, GA, IL, TX, WA, and CA.

GROUNDFLOOR is open to accredited and non-accredited investors alike. 

GROUNDFLOOR is the first and only real estate lending marketplace open to non-accredited investors. We open the door to short-term, high-yield returns backed by real estate. Typical loans have returned 12 percent annually on a six to 12 month term.

GROUNDFLOOR is a marketplace that brings together investors and borrowers. Borrowers have access to more flexible, faster, and cheaper capital and investors earn more by having access to short-term, high-yield investments offering returns of 5% to 26%.

It all starts with the borrower. A real estate investor, who we call a borrower, secures a loan through GROUNDFLOOR rather than a traditional bank or a hard money lender to finance a residential real estate project. That borrower submits a loan application and we review and underwrite the loan using our loan grading engine. After review, the loan is assigned a loan Grade A through G and a corresponding rate where Grade A loans are the least risky, with the lowest rate of return and Grade G loans are most risky, with the highest rate of return. Grade A loans generally offer returns of 6% and Grade G loans generally offer returns of 26% with each letter grade offering a rate in that in range.

Our Borrower Services Team works with the borrower to tailor the loan to meet the needs of the project. The loan is then underwritten and assigned a grade and interest rate. We have filed an offering circular with the Securities Exchange Commission (SEC) through which we sell securities. The proceeds of these securities and the performance of these securities are tied to the individual loans we decide to originate. If we decide to put a loan up for funding, we amend our offering circular with the details of that loan. When that amendment is qualified, the loan may be taken live for investment. "Qualification" by the SEC is not an endorsement of our investments, and no government or agency has passed on the merits of our offering.

Due Diligence & Discussions

Share your experience. Rate and comment!

Jason Feldman

Mar 10, 2020

I have been using this site for several years now, and believe it has improved considerably in the last few years. In particular, the deal flow has greatly increased as well as the due diligence. Both of these were issues about 3 years ago.

There are also no fees to the loan investors now.

I primarily use it for self-directed IRA investments for tax reasons. I also like the low miniumums as it is easy to reinvest distributions paid from other investments.

 

Sam G

Dec 19, 2017

Been on platform for only about 6 months but so far no credit issues.  At this point the primary issue has been a serious supply limitation.  Another weakness of this platform is that the loans are all full balloon payments (principal and interest).

Alex Trepetin

Feb 03, 2017

They have much lower limits (I think as low as $100 or $500) per loan, which might be a good site for none accredited investors.

Communications is pretty good, especially when a loan doesn't perform as expected.

Downside of the site is they don't have very many loans up often, and good loans can fund very quickly. Another downside and major difference of Groundfloor from the other debt investment sites is there is no cash flow (no monthly payment). All notes and interest is due at maturity. The issue with that is investors don't find out if there is a problem with their investment until after maturity (usually 12 months from investment date)

 

A G

Feb 03, 2017

I tried using GroundFloor like lendingclub because of the low minimums and loan grading. I tested the site out with 5K and invested in around 10 loans. Almost all of them were returned because the deal didn't close. I have one outstanding where the home was vandalized. Communication is on par with the other CF sites. 

The biggest problem is that there are no interest payments. Interest is paid in balloon fashion at the end of the loan. An 11% balloon payment is not the same as 11% paid monthly (time cost of money).  

Top 5 by Overall Rating
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Groundfloor Groundfloor
Rated 2.8/5 based on 6 customer reviews

Website  - Groundfloor

Fees - 1-2% annual management fee

Phone - 678-701-1194

WE MAY ONLY MAKE OFFERS FOR INVESTMENT SECURITIES TO RESIDENTS OF MA, MD, DC, VA, GA, IL, TX, WA, and CA.

GROUNDFLOOR is open to accredited and non-accredited investors alike. 

GROUNDFLOOR is the first and only real estate lending marketplace open to non-accredited investors. We open the door to short-term, high-yield returns backed by real estate. Typical loans have returned 12 percent annually on a six to 12 month term.

GROUNDFLOOR is a marketplace that brings together investors and borrowers. Borrowers have access to more flexible, faster, and cheaper capital and investors earn more by having access to short-term, high-yield investments offering returns of 5% to 26%.

It all starts with the borrower. A real estate investor, who we call a borrower, secures a loan through GROUNDFLOOR rather than a traditional bank or a hard money lender to finance a residential real estate project. That borrower submits a loan application and we review and underwrite the loan using our loan grading engine. After review, the loan is assigned a loan Grade A through G and a corresponding rate where Grade A loans are the least risky, with the lowest rate of return and Grade G loans are most risky, with the highest rate of return. Grade A loans generally offer returns of 6% and Grade G loans generally offer returns of 26% with each letter grade offering a rate in that in range.

Our Borrower Services Team works with the borrower to tailor the loan to meet the needs of the project. The loan is then underwritten and assigned a grade and interest rate. We have filed an offering circular with the Securities Exchange Commission (SEC) through which we sell securities. The proceeds of these securities and the performance of these securities are tied to the individual loans we decide to originate. If we decide to put a loan up for funding, we amend our offering circular with the details of that loan. When that amendment is qualified, the loan may be taken live for investment. "Qualification" by the SEC is not an endorsement of our investments, and no government or agency has passed on the merits of our offering.