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
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
N

Still waiting for closure for my

Still waiting for closure for my defaulted investments some should have matured in 2019
R

Good company as far as investing but

Good company as far as investing But they are not the best at communicating with their investors about resolutions to unpaid loans
J

Groundfloor mixed bag

I like Groundfloor The customer service is excellent My returns have been underwhelming and the number of loans in default is concerning
J

More than half of my investments have

More than half of my investments have been multiple months late on repayment with no clear explanation about future repayment Starting to question if this is a good investment tool
S

Notes are working out loans not as much

I have been investing in the notes almost exclusively because of the firm repayment schedule I have found that the loans get extended or go into default way more frequently than I m comfortable with
B

Selling Off

My real estate portfolio spreads over 5 platforms and GF pays the highest returns but the contracts take so long to mature I have been clearing out my GF account and putting that money into faster return properties
A

One big problem a huge number of defaults

It was very easy to establish and fund and account and investing is also made easy with a user friendly website Groundfloor also does a good job your investments current and past The big problem the most important problem out of about 25 investments I have currently in the form of loans about 20 are in default and 4 are in some sort of delayed payback workout arrangement but will likely go into default soon GF seems to loan money to a number of less qualified if not unqualified borrowers Even the B rated loans are in default I have more money available to invest but will not until I see how my current investments play out
A

The concept is great but

The concept is great but way too many SOOOO Many of the loans don t pay off when they are supposed to more than I expected are defaulting Also the communication on the loans that are not meeting maturity is beyond poor For me if something is not going to pay on maturity I would expect weekly updates at least And if maturity date is coming up then I would expect an update just prior to that date to know where I stand I have started putting more of my money into the bonds and a lot less into the individual LRO s because 80 did not pay on maturity date I currently have several that were supposed to mature last November
P

Novel product Bad Site Reporting

Super novel product - democratized hard money lending Website and reporting on investments and results are abysmalInvestment results are good IF you don t put more than 5 of any one property and you can t put too much in their C properties

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.