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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R

I ve been investing on the Groundfloor

I ve been investing on the Groundfloor for many years It is a very good platform for newbies as well as experienced investors to invest in real estate at an affordable entry point During COVID we had a lot of defaults but understandably so The Groundfloor legal team pursued those in defaul to the very end I feel confident investing even when the borrower doesn t pay back on time because Groundfloor keeps the investor informed to the very end
R

Steady income stream

I have invested in Groundfloor for a little over a year In that time I averaged between 11-12 return on my investment As yet I have not invested in a unit that has gone through foreclosure but it will happen sooner or later which is why Groundfloor strongly encourages you to invest smaller amounts into many loans One thing to note is that a loan may go longer or shorter than the time stated in the loan You still get the interest the whole time so not a huge concern for me If you have savings in a bank drawing pennies a year in interest this should be something you look into as a part of your investment portfolio
R

Solid platform and fun to be part of

Minimal risk per investment with low minimum investment of 10 The site makes it simple to spread investments across many properties Love getting a Text saying a loan has been repaid Every one of my investments have returned 10 as expected or slightly higher I try to mix my investments up so my money isn t always tied up for a year in every loan Sometimes I put it in an opportunity with 3-4 months remaining on the project I m not giving financial advice but will say the platform is intuitive and keeps me informed It s also fun to see updates on renovations as they happen
H

Real-estate investing made easy

Real-estate investing made easy Web portal is simple even with multiple accounts The Investment Wizard gives you your time back by not having to plug in all the criteria you wish to filter through A fantastic investment vehicle with decent returns
N

Invest like a landlord skip the renters

Groundfloor answers the common investor delima How to invest in Real Estate and get the banks out of our profits Example I invested 1 500 on 7 26 22 Got paid of 9 6 22 1 520 31 13 interest rate Compare that to your savings account rate Its all backed by 1st position liens on Real Estate
D

Great investments - Know your risk

This is a great tool to use for getting into real estate in a few different forms As with any real estate investment the higher the risk the higher potential return The GF Notes are a great place to start if you want to get in with some guardrails on your investment The LORs have more risk and the timeline on them can be cut short or extended I have experienced a bit of it all I invest in both the LROs and Notes I would only remind you that you are investing in real estate lending and that there are risks with this form of investing If you cant lose the money don t invest keep it in a savings account Don t put all your money in one investment spread the risk so you can mitigate any catastrophic losses
J

Beats my Bank my Broker

When I refinanced my home I took out money for renovations I didn t need yet to capture the low interest rate That plus some personal retirement funds are invested in over 500 Groundfloor LRO and Stairs Oh and Groundfloor Equity which has more than DOUBLED in 2 years Compare that to S P 500 ETF at my traditional brokerage down 17 for the first 8 months of 2022 and pennies at my bank Yes I m happy with Groundfloor
T

Good Alternative Real Estate Investing

Groundfloor provides an easy way to set up a diversified investment into various real estate properties You can choose your level of risk from lower yielding A-rated projects and higher yields with B C D and more lower rated and higher yielding projects available An Auto-Invest bot can make selections for you if you wish Pretty pleased with my account in my almost year of investing there
T

I ve been investing for over 3 years

I ve been investing for over 3 years now Yes it is taking longer to get repaid but its Real Estate It s taking longer for investors to get permits and work completed This is something everyone needs to be realistic when investing Since investing I seen foreclosures on properties but GF has always paid their debt to the investors I also invest in their notes Maybe consider that instead of properties You re paid monthly on interest earned and the principal is paid on completion
S

Relax

Relax it s a debt position Many of the complaints I see on here are due to late payment and extended loan status Extended loans have been the most lucrative section of my overall Groundfloor portfolio If the borrower has my Im getting paid I ve seen some people mention REITS however being that those are often equity investments they are often far riskier The reason people feel more comfortable with them is because real estate lending is something new with regards to retail investors being able to participate The risk here is far less than in many other RE investment vehicles

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.