Groundfloor Review: Be The Bank In Real Estate

Investing in real estate can be a great way to diversify your portfolio, but it can also be a daunting prospect, especially for non-accredited investors.

With so many different real estate platforms and loans available, it can be hard to know where to start. That’s where Groundfloor comes in.

Groundfloor Review: Groundfloor’s investment model is straightforward: investors fund loans for real estate projects, and in return, they receive principal and all interest earned once a loan is repaid. 

Groundfloor is a real estate crowdfunding platform that allows investors to invest in short-term, high-yield loans for residential real estate projects.

With a minimum investment of just $10, investors can start building their own real estate investment portfolio, without having to worry about high minimums or limited recourse obligations.

With an average loan term of just 6 to 18 months, investors can quickly see returns on their investment, making Groundfloor an attractive option for those looking to invest in real estate without tying up their funds for years on end.

What is Groundfloor?

If you’re looking for a way to invest in real estate debt investments, Groundfloor is a great platform to consider.

It is a real estate crowdfunding platform that allows you to invest in real estate projects for as little as $10, making it accessible to non-accredited investors.

When you invest in Groundfloor loans, you are providing capital to real estate investors seeking to finance their residential projects.

As a result of your investment, you will earn interest payments and also reap the rewards when the property is sold by profiting from some of its proceeds.

Groundfloor loans are limited recourse obligations (LROs), which means that your investment is secured by the actual property.

This provides an added layer of security for your investment, as opposed to investing in a traditional bank account where your investment is only secured by the bank’s promise to pay you interest payments.

Groundfloor offers a variety of loan grades, ranging from A to G, with varying interest rates and risk levels.

The loan grade is determined by Groundfloor’s underwriting team, who evaluate the borrower’s creditworthiness and the property’s potential for profitability.

Groundfloor is a reliable platform that has proven to be successful in the real estate industry.

Groundfloor offers a low minimum investment option with minimal risk that is available to both accredited and non-accredited investors when looking into residential project investments.

Before deciding on any type of investment, it’s essential to assess your financial risks and create an appropriate strategy – this applies too when considering investing in Groundfloor.

Who Founded Groundfloor?

Groundfloor was founded in 2013 by Brian Dally and Nick Bhargava.

They created the platform to provide an opportunity for individuals to invest in real estate projects that were previously only available to accredited investors.

Groundfloor provides a unique investment opportunity for those looking to add real estate debt investments to their investment portfolio.

Is Groundfloor legit?

Yes, its a legitimate company with a good track record.

What Makes Groundfloor Different?

Groundfloor Is Not Just An Investing Platform

As there are numerous options for investing in real estate, Groundfloor stands out from the rest by not being a just a investing platform.

Instead of pooling funds with various investors to fund projects, Groundfloor offers individuals direct investment into real estate debt investments – enabling them to select which properties they want to invest in.

Top Benefits of Groundfloor

One of the top benefits of Groundfloor is that it is open to non-accredited investors.

This means that even if you don’t have a large investment portfolio, you can still invest in real estate through Groundfloor.

Groundfloor has a low minimum investment of just $10, making it accessible to a wide range of investors.

Plus, Groundfloor’s limited recourse obligation means that investors are not personally liable for the loans they invest in. Groundfloor also offers a range of loan grades, allowing investors to choose the level of risk they are comfortable with.

From ground-up construction projects to single-family rental properties, investors can choose the real estate projects that align with their investment strategy and risk tolerance.

When it comes to fees, Groundfloor is transparent and reasonable.

Investing through Groundfloor is an advantageous experience, as the fees are transparent and inexpensive.

Plus, transferring money from a bank account to your Groundfloor account is quick and easy – making it effortless for you to begin investing quickly!

Doing Your Due Diligence

Of course, as with any investment, it’s important to do your due diligence before investing with Groundfloor.

This means researching the real estate market and the specific projects you are considering investing loan money in.

Moreover, you must comprehend your investment strategy and risk tolerance.

Groundfloor is a fun real estate investing platform that offers an array of investment opportunities to individual investors alike.

This creative method encourages growth like no other!

With its low minimum investment, interest payments, and transparent fees, Groundfloor is a great option for investors looking to diversify their investment portfolio and earn passive income through real estate investing.

Best Features of Groundfloor

If you’re interested in real estate investing but don’t have the capital or accreditation to invest in traditional real estate projects, Groundfloor is an excellent platform to consider.

Here are some of the best features of Groundfloor:

• Low minimum investment: With Groundfloor, you can start investing in real estate projects for as little as $10.
• Short-term loans: Groundfloor offers short-term loans for residential real estate projects, typically ranging from 6 to 18 months. This means you can quickly turn your investment around and reinvest your funds elsewhere.
• Automatic investing: Groundfloor’s automatic investing feature allows you to set investment criteria and transfer funds into your account, making it easy to grow your investment portfolio without actively managing it.
• Diversification: Groundfloor offers a variety of loan grades and real estate projects, allowing you to diversify your investment portfolio and reduce risk.
• Limited recourse obligation: Groundfloor’s loans are structured as a limited recourse obligation, meaning that if a borrower defaults, you are only liable for the total principal invested, not any additional costs or fees.
• No fees for investors: Groundfloor does not charge investors any fees. Instead, it keeps the spread between what it charges borrowers and what it pays you.
• Investment security: Groundfloor loans are secured by actual property, providing an extra layer of security for your investment.
• Groundfloor Stairs: Savings on steroids’.

Groundfloor Pricing And Fees

As an online investment brokerage that focuses on real estate, Groundfloor offers a unique opportunity for investors to invest in real estate debt investments.

With a minimum investment of only $10, Groundfloor offers non-accredited investors something that traditional real estate investments can’t – the ability to diversify their portfolio beyond just bank account interest payments and other popular investing options.

This makes it easy for everyone to take advantage of lucrative opportunities in the world of real estate.

Groundfloor offers a Limited Recourse Obligation (LRO) structure, meaning that investors are not personally responsible for the loans they contribute to.

Instead, invest in a diverse portfolio of loans which lessens risk and allows you to safely invest in real estate debt without having to worry about the potential dangers associated with owning the property itself.

Groundfloor’s investor fees are significantly lower than the majority of other real estate investing platforms. Borrowers pay a minimal platform fee to list their projects, while investors can register for free!

To earn income, Groundfloor takes a small spread between the interest rate paid by borrowers and what is dispersed to investors – usually around 2-3%, which is more than reasonable considering the inherent risk associated with lending money for residential real estate developments.

Groundfloor loans are graded based on the risk and return profile of the loan.

The loan grade determines the interest rate paid by the borrower and the interest rate paid to the investor.

Groundfloor offers a range of loan grades, from Grade A (low risk, low return) to Grade G (high risk, high return).

Investors can choose to invest in one or more loan grades, depending on their risk tolerance and investment strategy.

Groundfloor offers automatic investing, which allows investors to set up investment criteria and transfer funds into their Groundfloor account.

The automatic investing feature makes it easy for investors to start investing in real estate debt investments without having to worry about the details of individual loans.

However, investors need to do their own due diligence and research before investing.

Groundfloor is a legitimate, reliable real estate crowdfunding platform providing individual investors with investment opportunities.

With its low minimum requirements, short-term loans, and interest payments – it’s an ideal way to diversify your portfolio beyond the usual stocks and bonds.

As with any investment, there are risks involved, and investors should carefully consider their own risk tolerance and investment strategy before investing in Groundfloor loans.

Groundfloor Pros And Cons

Groundfloor Pros

• Groundfloor enables investment in real estate debt with a low minimum investment of $10 for access to residential real estate projects.
• Investing in Groundfloor loans diversifies your portfolio and offers an alternative to traditional investment options like bank account interest payments or real estate investment trusts.
• Limited recourse obligation (LRO) investments provided by Groundfloor ensure that investors are not personally liable for their investments, mitigating the risk to the total principal invested.
• Groundfloor is a legitimate real estate crowdfunding platform with a team possessing collective real estate experience. It’s favorable for retail investors wanting access to real estate without high minimum investment requirements on other platforms.

Groundfloor Cons

• Groundfloor loans are short-term, typically lasting between 6 and 18 months. Frequent reinvestment may be required to maintain a steady stream of income.
• Some Of Groundfloor loans are high-risk and not FDIC insured, requiring high-risk tolerance from investors who must be willing to lose their investment.
• Investors should ensure investing in Groundfloor loans aligns with their investment strategy and risk tolerance, conducting proper due diligence before investing.
• Groundfloor customer service is only available during regular business hours, which investors should keep in mind.

What Are Groundfloor Returns and Statistics?

As an investor, one of the most critical considerations is the potential return on investment.

Historically, Groundfloor investors have averaged 10% annualized returns on a 6-18 month timeframe, with no investor fees.

According to Groundfloor’s most recent analysis in December 2022, the average annualized return on Groundfloor portfolios was 9.96%.

These returns are competitive with other real estate crowdfunding investment platforms, and are higher than what one could expect from a traditional bank account.

Groundfloor currently has over 213,000 registered users on the platform.

The company has seen investment sales of over $570M and has processed over $1B in transactions on the platform.

These impressive numbers are a testament to the popularity and success of the Groundfloor platform.

Groundfloor is also an award-winning company, with numerous accolades to its name.

Some of these distinctions include being ranked on Inc Magazine’s Inc. 5000 List three years in a row from 2020 to 2022, being ranked in the top 10% on Inc. Magazine’s 2020 Inc. 5000 List, and being ranked #102 on the 2020 Deloitte Fast500 List.

Groundfloor has been the recipient of several awards, including the 2020 Benzinga Global Fintech Awards for Best Lending Platform and a Fintech Breakthrough Award for their Crowdfunding Platform.

They were even honored with Real Estate Platform of the Year by StartupStarter. This success can be attributed to their creative approach in revolutionizing real estate investing.

The platform offers a unique investment opportunity for non-accredited investors to invest in real estate projects with a low minimum investment.

Groundfloor loans are also structured as Limited Recourse Obligations (LROs), which means that investors’ risk is limited to their investment in a particular loan grade.

The platform also offers automatic investing and a model portfolio consisting of residential real estate projects.

Groundfloor stands apart as a legitimate real estate investment platform that provides opportunities to both accredited and non-accredited investors.

With its cutting-edge approach to investing, combined with consistent returns and greater industry recognition, this is an ideal solution for those looking to broaden their investments.

It’s paramount to conduct your due diligence and analyze your risk tolerance before investing in real estate crowdfunding platforms like Groundfloor.

As with any investment decision, this is an essential step that will help safeguard the future of your finances.

Groundfloor Case Study And Personal Experience

My Experience Using Groundfloor

I have been investing in real estate for quite some time now and I have tried different investment vehicles, including real estate crowdfunding platforms, using hard money loans from lenders, and real estate investment trusts.

However, I knew there had to be something else out there.

That’s when I stumbled upon Groundfloor – a real estate investment platform that allows non-accredited investors the ability to get into residential projects with only $10!

It was like a dream come true for me.

What attracted me to Groundfloor was its limited recourse obligation (LRO) feature, which means that I am only liable for the amount I invested in a particular project.

Utilizing this feature has given me a sense of security, understanding my investment portfolio is sheltered from possible total loss due to one poor choice.

I created an account with Groundfloor and began investing in residential real estate projects.

The process was straightforward and the funds were quickly transferred from my bank account into my Groundfloor account without any issues or glitches.

For small investors like me, Groundfloor loans are perfect since the minimum investment is only $10.

Furthermore, they provide clear and precise information about their real estate projects along with accompanying loan grades; these show you how much risk an individual investment entails.

Also notable is that most of Groundfloor’s portfolio consists of short-term loans where interest payments are made every month—making it even easier to keep track!

This means that I can earn a steady stream of income from my investments.

Groundfloor also offers an automatic investing feature, which allows me to set up investment criteria and have my funds automatically invested in projects that meet those criteria.

This feature saves me time and makes investing on the platform more convenient. My experience using Groundfloor has been positive.

I have earned a decent return on my investment, and the platform’s customer service has been responsive and helpful.

Groundfloor is a legitimate investment platform that offers investment opportunities to both accredited and non-accredited investors.

Nevertheless, as with any investment, there are certain risks involved and investors must assess their risk threshold before investing.

Groundfloor is a great option for those hoping to invest in real estate debt investments.

Its low minimum investment requirement along with the limited recourse obligation and interest payments make it an appealing choice for both retail and non-accredited investors alike!

How Do You Get Started With Groundfloor?

Setting up an account on Groundfloor is a quick and easy process.

First, head to the Groundfloor Investors page and begin the process to open a new account.

Enter your name, address, and other personal information on Groundfloor’s secure site.

Next, add your bank account information through Plaid to transfer funds to my Groundfloor account.

Deposits may take three to five business days to appear in my Investor Account. Deposited funds are held in my name (not Groundfloor’s) and are FDIC-insured until invested.

Groundfloor is open to both accredited and non-accredited investors, making it an accessible platform for anyone interested in real estate investing.

International investors are also accommodated on the platform on a case-by-case basis. Groundfloor currently supports investing from personal accounts as well as LLCs, trusts, FBOs, and IRAs.

This makes it effortless to invest via your chosen investment channel and diversify my portfolio with real estate debt investments, granting me a sound financial future.

Groundfloor has a user-friendly platform that allows me to easily transfer funds, invest in real estate projects, and receive interest payments.

For savvy investors searching for a way to diversify their portfolio, Groundfloor offers an attractive proposition with limited recourse obligation and competitive interest rates.

Verdict: Groundfloor Review

Groundfloor, the real estate crowdfunding platform that permits non-accredited investors to invest in real estate debt investments, provides a straightforward and accessible way for people with limited funds to take part in the lucrative world of property investing.

With an impressive track record of delivering successful yearly returns, this investment option can be highly profitable – but it is important to remember that due to a possible borrower defaulting, there may also come associated risks when taking part in this type of money-making venture.

Groundfloor provides short-term loans tailored to residential real estate projects that are secured by the property with a limited recourse obligation, protecting investors from losses beyond their initial investment.

With varying levels of risk associated with each loan, investors can determine which ones best fit their tolerance for risk or strategy for investing.

Groundfloor’s investment portfolio consists of single-family rental properties, and other residential real estate projects.

Groundfloor loans have a low minimum investment of $10, which makes them accessible to retail investors.

Groundfloor charges fees for its services, including a loan origination fee and a servicing fee.

Investors can earn interest payments on their investments, which are deposited into their Groundfloor account. Groundfloor account holders can transfer funds from their bank account to their Groundfloor account and start investing.

Groundfloor offers an automatic investing feature, which allows investors to set up equal investment amounts across multiple loans.

Groundfloor is a legit way to invest in real estate debt. However, investors should do their due diligence and assess their risk tolerance before investing.

Groundfloor loans are high-risk loans, and investors should be aware of the potential risks and rewards. Groundfloor customer service is available to answer any questions and provide support.

Groundfloor is a good option for investors who want to add real estate debt investments to their investment portfolios.

Groundfloor’s low minimum investment and interest payments make it accessible to individual investors. Investors should carefully review the loan grades and investment criteria before making any investment decisions.

If you’re looking for a way to invest in real estate without the high costs associated with traditional real estate investments, Groundfloor may be the right choice for you.

Groundfloor provides a one-of-a-kind investment called an alternative investment, thanks to its portfolio of return on investments and interest earnings.

If you’re looking for the best way to begin investing in real estate crowdfunding platforms and building your wealth, then sign up with Groundfloor right now!

FAQs

Related Real Estate Articles to Groundfloor Review:

• A real estate fund: Cardone Capital Review
• Stairs By Groundfloor: Stairs by Groundfloor: Savesting Simplified
• Self Management: Avail Review

Current recommendations:

Over the past years, I have discovered several tools and products that have helped me tremendously on my path to financial freedom:

P.S.: The links below are affiliate links, which means I receive a small commission at no extra cost to you when you sign up for one of the services. Thank you for your support!

1)Another great way to get exposure to the real estate sector is by investing in real estate debt. Groundfloor offers fantastic short-term, high-yield bonds that can add diversification to your portfolio!

2) Take a look at M1 Finance, my favorite broker (I like to be passive). I love how easy it is to invest and maintain my portfolio with them. I can set up automatic transfers, rebalance my portfolio with one click and even borrow up to 35% of my assets at super low interest rates!