Groundfloor Reviews

Groundfloor | What are you building?

groundfloor.us
3.54
142 reviews
Great Rating
Based on 142 user experiences

Rated 3.54 out of 5 by 142 Happy Customers

42.3%
14.1%
14.8%
13.4%
14.8%
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M

Disappointing experience

My first two investments went well They were very timely in repayment The last two investments I made are both in a workout situation I think that this is going to take months to years to resolve In the meantime my capital is tied up I believe that I would have been better off investing in REITs that pay a monthly or quarterly dividend And REITs can be bought or sold at any time on a brokerage exchange
L

Time to move on

Joined up during covid and the promise was interesting However there is a clear disconnect between advertising and the user experience specially for how loans are presented and what happens when loans don t payback The company sells diversification but allows inexperienced builders to sell off multiple units into the system which of course all default at once If you re unlucky like me to have bought into 3 thinking you were diversified then you re out 1000s The company of course made all it s fees already When it comes to late payment the company extends longer payment terms with little transparency into the process Basically this company takes your free loan uses it as they wish and if they gamble and make money you get some back If they lose you lose everything
D

Don t advertise to use what your

I ve been investing at Groundfloor for more than a year and I m disappointed at the number of investments that run late Currently about 50 are overdue My Spouse has a one-year loan that is 7 months overdue I m beginning to lose faith in the viability of this business model I will not be investing anymore
B

The rates never pay out what they say

Don t advertise to use what your expected is only to have actual be so so much less That s BS You should not only insure that your richly rewarded but your clients that put up the cash should be paid some gurrantees If a coustomer asks for 15 months and repays in 2 5 months that is false expectations from someone and early penalty s should be added to their loans
B

Little confidence

The rates never pay out what they say My 8 5 return did not give me an actual 8 5 but rather 5 5 However my negative 9 1 actually took 9 2 of my investment Shady math and both these properties paid as far as I can tell and were given lengthy extension I wouldn t mind the extensions if I were actually making what they claim I would I m also still trying to figure out my loss as there is very little up front info or easily found info on your investments so in the end I have no idea what went down with this
W

Wouldn t recommend this platform until fundamental changes made

As an investor I have little confidence i will get money out of funds i invested in the platforms Most of the loaned money went to projects around 100 of them and majority of projects have been heavily delayed for months and now about 30 have been in default state which may end badly for me I am hoping to get my principal amount out and that is it Also they misrepresent the numbers to show high returns when in reality those numbers are in low tens of
T

Limited communication

The problem with the Groundfloor experience is twofold 1 Groundfloor hardly loses hence there is no shared risk and secondly the ratings on the loans are opaque What is a B rating What are all the factors All my loans in default all of them were rated B less risky while most of my loans that repaid were rated C or D How is that possible Also as a few people have noted too many loans in default almost no effort to foreclose too many loans that defaulted were by investors with no skin in game yet were rated a B Too many loans extended Even for a person who can tolerate risk the reward is not sufficient for risk involved I wouldn t recommend this platform until they make fundamental changes on how they rate loans and are more aggressive with their borrowers
K

Sight the name in my display picture for assistance like i did too

Your customer service reps are friendly but any level above that is non responsive My mistake to have invested 1000 on one project It was initially supposed to be a 4 month payout but It s been 11 months and property was almost in foreclosure once and now possibly again Other than that information from the CSR no one from Groundfloor will provide any further details In addition there is limited communication on the website One CSR suggested I spread out my risk going forward This is also what I suggest to anyone planning to invest with this type of platform
K

TERRIBLE Company

Returns are mixed and do not meet what is advertised Open investments are far past their expected return dates Had some fraudulent activity on my account as well which Groundfloor dragged their feet to assist and never resolved I WOULD NEVER RECOMMEND THIS COMPANY TO ANYONE FAMILY FRIENDS ETC

About Groundfloor

Groundfloor is a new financial tool for retail investors. We open the door to short-term, high-yield returns backed by real estate.

United States

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Frequently Asked Questions

Groundfloor is a financial technology company and funding portal that connects individual investors with short-term, high-yield real estate debt investments. Its mission is to democratize real estate investing by making it accessible to non-accredited investors with low minimum investment requirements, primarily focusing on residential fix-and-flip and new construction projects.

Investors browse vetted loan opportunities on the Groundfloor platform, each detailed with property information, loan purpose, borrower history, projected returns, and a risk rating (A through G). Investors purchase fractional debt notes, not direct property ownership, with minimums as low as $10. They receive proportional interest payments as borrowers repay their loans, typically over 6 to 18 months.

No, accreditation is not required to invest through Groundfloor. The platform operates under Regulation A of the Securities Act, which qualifies its offerings for both accredited and non-accredited investors, making real estate debt investing available to the general public.

The minimum investment on Groundfloor starts at $10 per loan. This low threshold allows investors to build diversified portfolios across multiple real estate projects, helping to spread and manage investment risk effectively.

Groundfloor primarily finances short-term loans for residential real estate projects, including fix-and-flip renovations and new construction. These loans are used by developers and house flippers to purchase, renovate, and sell properties, with terms generally ranging from 6 to 18 months.

About Groundfloor

Groundfloor: Democratizing Real Estate Investing

Groundfloor.us is the official website of Groundfloor, a financial technology company that has pioneered a unique model for real estate investment. The platform operates as a limited liability company and functions as a funding portal, connecting individual investors with short-term, high-yield real estate debt investments. Its core mission is to make real estate lending accessible to a broader audience, breaking down the traditional barriers of high capital requirements and accreditation status that have long defined the private real estate market.

How Groundfloor Works

The platform facilitates investments in residential fix-and-flip and new construction projects. Here is a breakdown of its operational model:

  • For Borrowers:Real estate developers and house flippers apply to Groundfloor for loans to finance their projects. These are typically short-term loans (6-18 months) used for purchasing, renovating, and selling residential properties.
  • For Investors:Individual investors can browse vetted loan opportunities on the Groundfloor website or mobile app. Each project is listed with detailed information, including the property location, loan purpose, borrower track record, projected returns (often ranging from 6% to 14% annually), and a risk rating assigned by Groundfloor (A through G).
  • The Investment Vehicle:Investors do not directly own a piece of the property. Instead, they purchase securities in the form of fractional debt notes. This means an investor can participate in a loan with a minimum investment often as low as $10, receiving proportional interest payments as the borrower repays the loan.

Key Features and Offerings

Groundfloor distinguishes itself through several key features designed for investor accessibility and education.

  • No Accreditation Required:Unlike many private real estate investment platforms, Groundfloor is open to non-accredited investors. This is possible because its offerings are qualified under Regulation A of the Securities Act, making them available to the general public.
  • Low Minimum Investment:With minimums starting at just $10, the platform allows for highly diversified portfolios across numerous loans, enabling investors to spread risk effectively.
  • Automated Investing Tools:Groundfloor offers an "Autopilot" feature, which allows investors to set custom criteria (like risk grade, loan term, or return target). The system then automatically allocates funds to new loans that match those parameters.
  • Transparency and Education:The website provides extensive educational resources, including a blog, guides, and a detailed explanation of its loan grading system. Each investment opportunity features a comprehensive project summary, fostering informed decision-making.
  • Secondary Market:Groundfloor operates a limited secondary market, providing some liquidity for investors who wish to sell their notes before a loan matures, though this is subject to market demand.

Considerations for Investors

While Groundfloor opens new doors, it is crucial for potential investors to understand the associated risks. These investments are not FDIC-insured and are subject to potential loss. The success of an investment is directly tied to the borrower's ability to complete and sell the property profitably. Groundfloor's risk ratings provide guidance, but all investments carry inherent risk, including the possibility of default. The platform's historical performance data is available for review, but past performance does not guarantee future results.

In summary, Groundfloor.us presents an innovative online platform that demystifies and opens access to real estate debt investing. By fractionalizing loans and eliminating accreditation hurdles, it empowers everyday individuals to build a diversified portfolio of short-term, income-generating real estate assets, fundamentally altering who can participate in the private lending market.