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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J

Borrowers rarely pay off on time Most loans are extended

When borrowers pay off on time the return is acceptable However 90 of borrowers that I ve experienced have not paid off on time and most loans are extended While all loans so far have paid off in the end the high volume of extended loans is concerning
R

underlying offering is good

underlying offering is good but wish there was better reporting on how their overall portfolio was performing and the website ux could use a lot of work
C

Review of Groundfloor from an investor s perspective

As far as customer service is concerned anytime I have had questions or concerns Groundfloor staff have been very responsive I would give the staff 5 stars for the quality of their customer service with investors The reason why I did not give 5 stars overall is because unfortunately the majority of the loans I have invested in have essentially been in default which means for me the investor that several of these loans have gone beyond the normal period that would make these short-term investments I do understand and appreciate that each of these loans is backed with collateral the property but I would like to going forward see more careful vetting of lenders or at least more firm boundaries set with the lenders Several of the lenders have been given multiple chances by Groundfloor to respond and come up with a game plan for repayment but appear to really be dragging their feet in actually paying off their debts I am not suggesting turning this into a standard bank loan program but do think there is a need to set some more firm clear boundaries with lenders
G

Risky business

I have started investing in Groundfloor in February 2022 About 6 months now I have invested 90 in LRO s Purchased about 60 now I have invested in A B and C rated only About 1 3 of each Some LRO s already have been repaid much before maturity So return on the interest is minimal So far most of LRO s that had stayed to maturity have been extended I would estimate 7 out of 10 And I feel that at least half of them will go into default It is awfully high percent of LRO s are not paid on time It is a very high risk investment to me With the returns are low for the high risk of loss of principal I will see how it will go I am not planning to add anymore funds for now It looks like we are going for big losses here Will update my review as time will go
J

Too many loans are extended and

Too many loans are extended and defaulted in my case currently 35 loans are performing 46 are extended and 7 are in default Groundfloor can do a better job screening those taking loans
D

Ground floor is OK just be aware your

Ground floor is OK just be aware your loans may not get paid back or may be delayed in getting paid back Overall it s an OK platform but I ll invest with other funds and not put all my money into Groundfloor
W

The loans with GROUNDFLOOR are taking too long

The loans with GROUNDFLOOR are taking way too long to be repaid 6 month loans are being paid back in 12-15 month time span And only receiving a dollar more The percentage that is shown as the rate of return seems to be a little off The numbers shown seem to be higher than what is being paid Also only being shown very vague robotic updates on the status of the properties that are over due Taking wayyyy too long
S

More loans than expected have been

More loans than expected have been deferred or defaulted and this has led to a reporting of returns much less than expected I think that expectations could be set better and more realistically or the reporting needs to change to reflect more accurate long term expected returns Maybe it s just the first year or two that returns are so much lower because of the high amount of deferred payments But it seems like the risk is s higher than expected and the returns are lower
M

I enjoy the platform overall

I enjoy the platform overall It s ease of use and the investment opportunities it provides for small investors are very positive However it seems that the vast majority of my investments are constantly Extended which ties up my money for months--without much of a reward I feel that investors should be compensated with higher returns for having their money tied up like that
C

An innovative way to invest

Groundfloor offers an innovative way to invest in real estate loans I have been investing through their platform for nearly two years I have invested in both notes and LROs While I have not lost money on any investment I find that over time the quality of the investments seems to be declining Currently over 90 percent of my investments are in the extended or default categories Some of them have been extended for many months Groundfloor seems to be slow in resolving some of these outstanding situations With rising interest rates I am concerned that some may go into default and lose money

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.