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
M

Quality of borrowers and communication falls short

Too many loans in default for extremely long periods of time I think the company should list on their website the current percentages of loans that are in default as well as in work out and performing status
R

Meh Not for Me Quoted returns are NOT what I got

I was very excited to invest in this platform due to the user interface and what appeared to be quality deals Unfortunately this has fallen short for me both in terms of deal execution by borrowers and communication from the team It is staggering how many deals I invested in were or are still in default They don t seem it is that important to keep investors updated on the status of deals or the circumstances that have caused delays or minimal returns The importance of communication with investors seems to align with the minimum investment If the minimum investment were 10k I guarantee the communication would be exponentially better
T

The app didn t have many features and I

Meh Not for me I started off with a small investment just to see how it works if it was legit My investment was only supposed to be for 6 months the return was supposed to be 9 HA What a joke I fully understand that it can take longer than the stated time I was okay with that assuming I was making 9 Just got the payoff notice after over 10 months and that 9 Was only 3 What the heck Not at ALL what I was expecting I can make higher profits in other pursuits With the risk Groundfloor just isn t worth a lousy 3 return
M

LAZY AND SLOW

The app didn t have many features and I couldn t see all my investments Todd
R

Fails to meet expectations

LAZY AND SLOW - AS WELL AS BEING MISLEADING IN HOW YOUR RATE IS COMPUTED in 3 years I turned 55k in to 88k investing in 1 property based on what you ve done so far there is no way i ll give you any of that money
L

Good selection of deals but more follow up needs to be done

I posted a 2 Star review in June 22 and had hoped that by this time the platform would have evolved into something more predictable and informative It hasn t After 18 months of investing the same issues still persist without any signs of improvement Most notably loan maturity dates continue to be meaningless They indicate nothing other than the point in time in which the loans will transition from Perform to Extended status which they almost always do Once extended the loans drift away into the ether Information on status and or when how they will be closed is practically non-existent At best cryptic one-line quips are provided keeping you submerged in the gray zone You essentially know nothing on the future of your loans as the weeks then months pass by My stats - 86 1 of loans extended- On average loans that eventually closed were extended 107 days beyond their maturity date- On average loans that are still open are 240 days beyond maturity date and counting- 13 9 of loans went into default but half these were eventually paidI badly want the GF platform to work and become a significant part of my investment portfolio The concept is great but the execution is severely lacking and arguably stressful My advice would be to use it like you would a slot machine in Vegas Throw in a little money and try to have fun but for sure don t invest an amount that would have a significant impact if lost or if tied up for months on end
P

Because I bought shares in your company

Good selection of deals But they need better follow up on delinquent loans Sometimes there is no updates for months and we investors are left in the dark
J

Potential of foreclosures leading to no payments for many years

Because I bought shares in your company years ago and you re not taking a public Maybe you don t want the scrutiny of the SEC looking at your books or publicly traded company so I don t invest in your company no more
S

This was a fantastic company in the

Extremely great potential of loans going into default and foreclosure modes Leading to principal locked in without any guarantees of retrieving Invest only if you are ready to lose your invested principal and have no regrets Foreclosure processes takes months to years
M

Good at first then problems

This was a fantastic company in the start of it Then they became shady I needed to modify my account information and now they have my money they refuse the bank I ve been using since I opened My account and give me no access to my funds They are essentially forcing me to continue to invest or do nothing They told Me My bank was no longer acceptable that they do better with more well known banks They refused to send me a check or close my account They are robbing me of 400 dollars

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.

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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.