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%
All 5 ★ 4 ★ 3 ★ 2 ★ 1 ★ 😊 Positive 😐 Neutral 😞 Negative Reset Filter
S

Groundfloor is a scam

Groundfloor is a scam Nearly all of the investments with them dozens have gone into default Some still have not paid from 15 months PAST maturity date I would recommend avoiding this company
M

Frustrating

Still haven t received payment on a 25 000 loan that was due about 1 5 years ago Updates are vague reached out to borrower I understand wanting to work with the borrower to avoid foreclosure but I wish I had a better idea on how long groundfloor plans on letting them string us along Will I get any of this money back in the next year Who knows
B

Not what it seems

Groundfloor is not exactly what they try to make you believe My most recent loan repayment is a perfect example The loan was originally marketed as a 1 year loan with a ROI of 14 3 What it ended up being was a 39 month loan with a ROI of 3 I m sure that Groundfloor made all of their money through the fees charged to the borrower but to the investors not ao much I could have done better in a savings account
D

I invested in a real estate project

I invested in a real estate project about a year and a half ago It was supposed to be a six month investment A year and a half later still haven t received a single penny back no update just nothing from these people save your money don t wast it with these people
J

Forget interest if you can just get your principal

Scam Almost most of loans 10 ran into delays ITs been multiple years and still have to recover my invested principal for multiple loans Forget the interest Underwriting and rating of loans are too loose and company seems is not investing required amount and resources to recover unpaid loans
N

You will never see your money again

This company never forecloses on these properties I m infested in 13 loans right now all of them are in default most of them have been that way for over a year and they still haven t even attempted to foreclose My money is just tied up and not going anywhere and my returns are drying up while I wait Don t invest here Find someplace else to put your money
B

This is my second review of Groundfloor

This is my second review of Groundfloor and the song remains the same What started out as a 12 month loan with an expected ROI of 10 turned into a 15 35 month loan with an ROI of 1 9 I guess that might be slightly better than I could have done in a savings account Be very careful before you entrust your retirement savings to this organization All of my remaining loans through Groundfloor are either in default or in what they call work out mode which means they are not being paid as agreed to by the person who got the loan
B

Losses defaults 100 of my C level LRO 20 of them are

100 of my C level LRO 20 of them are in default after almost two years since in investing Most of the loans were with 6 months duration I started getting negative rates of return of 50 in actual loss of investment which they calculate and present as 20 negative rate of return I am slowly moving all my investments out of GF as it seems they are in a massive default risk at the moment Stay out of Groundfloor and avoid getting rekt
R

Stay Away from Groundfloor

I invested with a play money of 1 000 just to test the water starting late July 2021 Their platform allocated the funds to 33 Notes each of them worth 30 I tried to put the funds in most conservative options to mitigate the risk Fast forward after approximately two years I ve got only 950 44 which includes the Principal plus interests of 30 Notes I m currently sitting on 3 Default Notes worth total nominal value of 90 with no certain time frame to recover my funds Given the high inflation rates in past two years I ve not even been able to restore my original 1K and underwater more than algebraic sum of - 49 56 I think they need to revise their underwriting criteria before offering the loans to investors There are certainly much stronger and more robust Crowd Funding Platform out there On my part it was a Pilot Project with a small fund to check these folks They certainly failed
J

I ve invested well over 500 000

I ve invested well over 500 000 on dozens and dozens of properties and in note funds since 2018 Several investments have defaulted to which I accepted the risk However Groundfloor has no regard for their investors it has taken 3 years and they still can t even bother to provide updates Is it too much to ask for an update I m sitting on 30 000 of money owed Why do I have to send 20 emails to get any info Sloppy sloppy company and I would definitely avoid investing any money you aren t comfortably able to lose

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

Visit Website

Own this business?

Claim your profile to respond to reviews, manage your listing, and build trust with customers.

Claim This Business

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.