FundThatFlip vs Groundfloor: The Ultimate Showdown
LAST UPDATED: April 21, 2023 | By Conrad Golly
Hey there! Real estate investing has become more accessible to investors of all sizes in recent years, thanks to the rise of online investment platforms.
One of these platforms, Fund That Flip, has been making waves in the real estate loans space since it started. But how does it compare to other investment platforms, like Groundfloor?
I’ve been checking out different real estate investment options. Fundthatflip vs Groundfloor:
I’ve found both Fund That Flip and Groundfloor, and they both offer opportunities to invest in short-term real estate debt. But there are some key differences to consider.
According to its website, Fund That Flip provides short-term notes and real estate development loans for commercial and residential properties.
Their interest rates range from 8% to 12%, and they offer pre-funded fractional loans, which let investors diversify their portfolios with a minimum investment of $5,000.
Fund That Flip’s fees are also competitive, and principal repayments usually take six to 18 months.
But how does it stack up against other real estate investing platforms, like Groundfloor? (P.S. I like Groundfloor better currently)
Overview of FundThatFlip vs Groundfloor
Hey, let’s talk about real estate investing! Two platforms that you should check out are our Fund That Flip and Groundfloor.
They both offer short-term real estate debt opportunities, specifically real estate development loans. But, there are some differences that you should know about before making a choice.
Fund That Flip is a real estate investment platform that provides short-term notes and real estate development loans.
They’ve given out over $1.9 billion in loans for real estate development projects, and you need a minimum investment of $5,000 to join as an accredited investor.
Their loans cover residential and commercial real estate, including office buildings and retail centers, and offer interest rates ranging from 8% to 12%.
The average return for investors is 10.8% annually, and Fund That Flip fees are typically a spread of 1%-3% on the loan amount.
Groundfloor, on the other hand, specializes in fix-and-flip loans and has a minimum investment amount of only $10. That means anyone can join in on the fun!
They offer short-term real estate debt opportunities, with loans lasting six to twelve months and interest rates varying depending on the project and risk involved.
The average return for investors is 10.2% annually, and Groundfloor fees are typically a spread of 2%-4% on the loan amount.
So, both Fund That Flip and Groundfloor offer short-term real estate debt opportunities with competitive interest rates.
Fund That Flip is for accredited investors with a minimum investment of $5,000, while Groundfloor is open to all investors with a minimum investment of $10.
Take some time to weigh your options and choose the platform that’s right for you!
Loan Types and Investment Opportunities
Let’s talk about real estate loans! Fund That Flip and Groundfloor both offer investors the chance to invest in short-term real estate debt, but there are some differences to consider.
Fund That Flip is open to accredited investors only, while Groundfloor is open to both accredited and non-accredited investors.
Groundfloor provides borrowers in 23 states with loans for real estate development projects, including fix-and-flip, rental, and commercial real estate.
Borrowers can get loans for $75,000 to $2 million at rates as low as 5.4%.
Groundfloor will fund up to 90% of the cost of a project and up to 70% of the after-flip value. Borrowers can choose to make no payments during the term of the loan.
Groundfloor also provides investment options for borrowers, brokers, and shareholders.
Fund That Flip offers two types of investment opportunities: Bridge Note Offerings and Series Note Offerings. Bridge Note Offerings let investors invest in individual real estate development projects with a minimum investment of $5,000.
Series Note Offerings let investors invest in a diversified pool of short-term notes in $1,000 increments. According to its website, Fund That Flip has originated over $1.9 billion in loans since its inception.
Both Fund That Flip and Groundfloor offer competitive interest rates, with Fund That Flip offering rates ranging from 7-12% and Groundfloor offering an average return of 10.8% annually.
Both platforms have fees structured as a spread of 1%-3%. However, investors should be aware of any additional fees or charges that may apply when investing in real estate development projects.
Investors are interested in Fund That Flip or Groundfloor can invest through their websites, with principal repayments generally taking place at the end of the loan term.
So, take some time to weigh your options and choose the platform that’s right for you!
Groundfloor
Groundfloor Overview
Groundfloor is a real estate investment platform that offers short-term real estate debt investment opportunities.
It’s open to all investors, with a minimum investment of $10. Groundfloor’s investment opportunities include short-term notes and real estate development loans, with interest rates ranging from 5.5% to 14%.
Borrowers can choose to make no payments during the term of the loan. Groundfloor has reasonable fees, with a 2-4% origination fee for borrowers and a 1-2% servicing fee for investors.
It’s a great alternative to traditional real estate investing and hard money lending, with lower minimum investment amounts and more favorable terms.
However, investors should carefully consider their options before investing in real estate loans, and Groundfloor provides a detailed explanation of its platform and risks on its website.
Groundfloor Pros And Cons
Groundfloor Features
- Groundfloor is a real estate investing platform that offers short-term real estate debt investments to non-accredited, accredited, and non-US investors.
- Groundfloor has originated over $1.9 billion in loans for real estate development projects.
- Groundfloor provides investors with a minimum investment amount of $10, making it an attractive investment platform for those who are just starting with real estate investing.
- Groundfloor is open to accredited and non-accredited investors, making it a great alternative for those interested in real estate debt investing.
- Groundfloor offers investors an interest rate on their investments, with principal repayments generally taking place at the end of the investment term.
- Groundfloor’s fees are reasonable, with a servicing fee of 2-4% and a late fee of 5%.
- Groundfloor’s website is easy to use and provides investors with all the information they need to make informed investment decisions.
- Investors can expect an average return of 10.8% annually, according to Groundfloor’s analyst briefing.
Groundfloor Borrow
Groundfloor provides real estate developers with an opportunity to access financing for their real estate development projects. Groundfloor offers loans for fix and flip projects, new construction, and commercial real estate development.
Borrowers can choose from a range of loan options with flexible terms and competitive rates.
Groundfloor’s loans are typically short-term, with principal repayments generally taking place within 12 months. The loans are secured by real estate, and the interest rate varies depending on the loan and the risk level.
To obtain funding from Groundfloor, borrowers must apply for a loan and provide relevant information about their project. Once the loan is approved, it is funded by investors who invest in the loan on a fractional basis.
Groundfloor creates investment securities based on the loans and files them for qualification with the U.S. Securities & Exchange Commission (SEC).
Groundfloor provides real estate developers with a unique opportunity to access financing for their projects with flexible terms and competitive rates.
Groundfloor Invest
Groundfloor is an investment platform that allows both accredited and non-accredited investors to invest in short-term, high-yield returns backed by real estate.
According to its website, Groundfloor provides investment options for borrowers, brokers, and shareholders.
Groundfloor offers real estate development loans that are secured by first-lien mortgages on the underlying real estate.
Groundfloor’s minimum investment amount is $10, which makes it accessible to almost anyone interested in real estate investing.
This is in contrast to other platforms like Fund That Flip, which is open only to accredited investors.
Groundfloor’s offerings include short-term notes that mature in six to twelve months, with principal repayments generally taking place at the end of the term.
Groundfloor invests in a wide range of real estate development projects, including residential and commercial properties, office buildings, and mixed-use developments.
Groundfloor provides investors with detailed information about each project, including the interest rate, loan-to-value ratio, and other key metrics.
Groundfloor fees are reasonable, with investors (those borrowing money) paying a 2-4% origination fee and a 1-2% servicing fee.
Groundfloor also offers a referral program that rewards investors for referring new investors to the platform.
Groundfloor is one of the best alternatives to Fund that Flip for investors who want to invest in short-term real estate debt.
Groundfloor provides investors with access to a wide range of real estate development projects, with an average return of 10.8% annually, according to its website.
FundThatFlip Overview
Fund That Flip is a real estate investment platform that offers short-term real estate debt investing.
The minimum investment amount is $5,000, and the platform is only open to accredited investors.
Fund That Flip is a real estate investment platform that offers short-term real estate debt investing. According to its website, Fund That Flip has funded over $1.9 billion in loans for real estate development projects.
The platform provides investors with the opportunity to invest in short-term notes backed by real estate development loans.
The minimum investment amount is $5,000, and the platform is only open to accredited investors.
One of the key advantages of Fund That Flip is that it offers a low loan-to-value ratio, which reduces the risk for investors.
Additionally, principal repayments generally take place within six to eighteen months, which means that investors can expect to see returns on their investments relatively quickly.
Fund That Flip fees can be higher than some of the best alternatives in the market. For example, Groundfloor, a similar platform, offers a minimum investment of $10 and lower fees.
If you’re interested in investing with Fund That Flip, you can contact them through their website. Their team will work with you to find the best investment opportunities based on your investment goals and risk tolerance.
Fund That Flip provides accredited investors with a unique opportunity to invest in short-term real estate debt.
The platform has some advantages, such as a low loan-to-value ratio and relatively quick returns, but it’s important to consider the fees and other factors before making an investment decision.
FundThatFlip Pros And Cons
FundThatFlip Features
- Fund That Flip is an investment platform for short-term real estate debt investing, open only to accredited investors with a minimum investment amount of $5,000.
- The platform offers pre-funded fractional loans, which are short-term notes secured by real estate development loans.
- Fund That Flip fees are transparent and explained on its website.
- Groundfloor is a similar platform to Fund That Flip, but with a lower minimum investment amount of $10 and is open to non-accredited investors.
- Fund That Flip provides a low loan-to-value and easy-to-use platform, with interest rates between 7-12% and principal repayments generally taking 6-18 months.
- Fund That Flip offers funding for commercial real estate projects, including office buildings and retail spaces.
- The platform performs due diligence on individual investments, providing transparency to investors.
- For more information or questions, contact Fund That Flips directly on their website.
FundThatFlip Borrow
- Fund That Flip offers hard money loans for real estate investors, with loan amounts ranging from $75,000 to $10 million.
- The loans are typically short-term, with repayment terms ranging from six to 18 months.
- Fund That Flip’s hard money loans are secured by real estate, with a loan-to-value ratio of up to 85%.
- The application process is simple and quick, with funding available in as little as seven days.
- Fund That Flip charges an origination fee of 2-4% and a servicing fee of 1-2%, which is comparable to other hard money lenders in the industry.
- If you’re interested in borrowing from Fund That Flip, you can apply directly on their website. Their team will work with you to find the best loan options based on your specific needs and qualifications.
Fund That Flip is a great option for real estate investors looking for short-term hard money loans.
With competitive rates and a simple application process, Fund That Flip can help you get the funding you need for your next project.
FundThatFlip Invest
I have been exploring various real estate investment platforms, and Fund That Flip caught my attention.
Fund That Flip is a short-term real estate debt investing platform that provides investors the opportunity to invest in real estate development loans.
According to its website, Fund That Flip has originated over $1.9 billion in loans and has funded over 2,500 real estate development projects.
One of the things that caught my attention about Fund That Flip is its low minimum investment amount.
Investors can start investing with as little as $5,000. This makes it easier for investors to diversify their portfolios and reduce their risk exposure.
Fund That Flip provides investors with the opportunity to invest in short-term notes that are secured by real estate.
The interest rate varies depending on the investment, but the website states that the average annual return is 10.8%.
In addition, principal repayments generally take place within six to eighteen months of the investment.
It’s important to note that Fund That Flip charges fees for its services. The fees vary depending on the investment, but they are disclosed upfront, so investors can make informed decisions.
For more information on Fund That Flip fees, contact Fund That Flip directly.
Fund That Flip provides accredited investors with a unique opportunity to invest in short-term real estate debt.
The platform is easy to use, and the minimum investment amount is relatively low.
While there are other real estate investment platforms available, FundThatFlip is one of the best alternatives for investors looking to invest in commercial real estate.
Fundthatflip vs Groundfloor Investment Process
When it comes to investing in real estate loans, Fund That Flip and Groundfloor are two great options for both accredited and non-accredited investors.
Fund That Flip focuses on short-term real estate debt investing, while Groundfloor offers both short-term notes and real estate development loans.
Fund That Flip provides investors with the opportunity to invest in short-term loans for residential and commercial real estate projects, with principal repayments generally taking place within six to twelve months.
On the other hand, Groundfloor offers investors the chance to invest in a variety of real estate development projects, including office buildings and multi-family residences.
To get started with Fund That Flip, investors can visit the website, create an account, and begin browsing Fund That Flip offerings.
According to its website, the minimum investment amount is $5,000, and Fund That Flip fees vary depending on the investment opportunity.
Similarly, to start investing with Groundfloor, investors can visit the website, create an account, and begin investing in real estate debt. Groundfloor is open to accredited and non-accredited investors, and the minimum investment amount is just $10.
Unlike Fund That Flip, Groundfloor does not charge any fees for investing.
Both platforms offer user-friendly interfaces and detailed information about each investment opportunity, including the interest rate and expected return on investment. Neither platform currently offers a mobile app for investing, but both have mobile-responsive websites.
When it comes to customer support, both Fund That Flip and Groundfloor provide investors with a variety of ways to get in touch.
Fund That Flip provides investors with a phone number and an email address to contact their customer support team, while Groundfloor provides investors with a chat feature on their website.
Alternatives and Competitors
| Investment Platform | Investment Type | Minimum Investment Amount | Fees | Interest Rate Range |
|---|---|---|---|---|
| Fundrise | Commercial Real Estate | $500 | 1% annual management fee | N/A |
| Yieldstreet | Short-Term Real Estate Debt | $5,000 | 1-2% origination fee, 1-2% servicing fee | 6-20% |
| Patch of Land | Short-Term Notes | $5,000 | 1-3% origination fee, 1% servicing fee | 8-12% |
When it comes to real estate loans, Fund That Flip and Groundfloor are not the only players in the game.
Here are some alternative investment platforms that offer real estate investment opportunities to accredited investors:
- Fundrise: Offers a diversified portfolio of real estate assets, including office buildings, apartments, and hotels. The minimum investment amount is $500 with a 1% annual management fee.
- Yieldstreet: Provides access to real estate development loans with a term of 6-36 months. The minimum investment amount is $5,000 with a 1-2% origination fee and a 1-2% servicing fee. Interest rate ranges from 6-20%.
- Patch of Land: Offers short-term notes with a minimum investment amount of $5,000. The origination fee ranges from 1-3% and servicing fee is 1%. Interest rate ranges from 8-12%.
Each platform has its own unique features and investment opportunities, so it is important to do your research and choose the one that best fits your investment goals and risk tolerance.
Final Thoughts: Fundthatflip vs Groundfloor
Fund That Flip and Groundfloor are two great options for investing in short-term real estate debt. Here’s what you need to know:
- Fund That Flip specializes in real estate loans for residential and commercial properties, while Groundfloor focuses primarily on short-term real estate debt for single and multi-family homes.
- Fund That Flip is open to accredited investors only, while Groundfloor is open to both accredited and non-accredited investors.
- Fund That Flip offers a wider range of real estate development projects, including office buildings, while Groundfloor focuses primarily on single and multi-family homes.
- Groundfloor does not charge any fees for investors, while Fund That Flip charges a service fee of 2-4% on each investment. Groundfloor also offers a lower minimum investment amount of $10, compared to Fund That Flip’s minimum investment of $5,000.
- Fund That Flip has done over $1.9 billion in loan origination volume and paid over $535 million in interest, fees, and principal returns to investors, with an average gross yield of 10.8% annually. Groundfloor also offers strong returns on short-term notes backed by real property liens.
Fund That Flip provides a wider range of real estate development loans, while Groundfloor offers lower minimum investments and no fees for investors.
It is important to carefully consider your investment goals and do your research before investing in any platform.
I personally like Groundfloor all around for all of its features and benefits.
Don’t run off yet… read this articles too if you have time
- groundfloor vs fundrise
- What Are groundfloor notes
- Are there groundfloor competitors
- groundfloor private lender
FAQs
Do people make money on Groundfloor?
Groundfloor offers short-term real estate debt investments, which can provide investors with high-yield returns.
According to its website, Groundfloor investors have earned an average annualized return of 10.38% since 2013.
However, as with any investment, there are risks involved, and investors should carefully consider their investment goals and risk tolerance before investing.
What are the cons of Groundfloor?
Groundfloor primarily focuses on short-term real estate debt for single-family homes, which may not be suitable for investors looking for a wider range of real estate investment opportunities.
While Groundfloor does not charge any fees for investors, there are still risks involved with any investment.
Is Groundfloor A Good Idea?
Groundfloor can be a good idea for investors looking to diversify their portfolios and earn high-yield returns on short-term real estate debt investments.
Groundfloor offers a user-friendly platform, low minimum investment amounts, and no fees for investors.
However, as with any investment, there are risks involved, and investors should carefully consider their investment goals and risk tolerance before investing.
Additionally, it is important to note that Groundfloor is only open to investors in certain states, so investors should check to make sure they are eligible to invest before getting started.
