(4.4 / 5)13+ Ratings

Groundfloor Reviews

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Overall Rating

4.4
13 Reviews
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About Groundfloor

Groundfloor.com is an online marketplace that connects individual investors with borrowers seeking short-term financing for real estate projects. The platform allows investors to participate in fractional real estate investing with a minimum investment of $10. Groundfloor offers high-yield, short-term investments backed by real estate assets, with expected returns ranging from 8% to 15%.

Key features include automatic investing, which ensures funds are instantly diversified across available loans, and a user-friendly platform that provides detailed information about each loan. Groundfloor is free for investors, with no trading, management, or account fees. Instead, fees are charged to borrowers, making it an attractive option for both investors and borrowers.

Groundfloor is also notable for being the first company qualified by the SEC to offer real estate debt investments via Regulation A for non-accredited investors. This makes it accessible to a wider range of investors looking to diversify their portfolios and achieve high returns with minimal effort.

Groundfloor Pros & Cons

Pros of Groundfloor:

  • Low Minimum Investment: Groundfloor allows investors to start with as little as $10.
  • No Investor Fees: Investors do not pay any trading, management, or account fees.
  • Predictable Returns: Groundfloor offers predictable returns within short timeframes, often as little as six months.
  • Automated Diversification: The platform provides automated diversification options, making it easier for investors to manage their portfolios.
  • Extensive Due Diligence: Groundfloor conducts thorough research on developers and real estate projects before offering investments.
  • Liquid Product Option: Rollover Notes offer a liquid investment option, allowing investors to withdraw their funds earlier than other investments.

Cons of Groundfloor:

  • Illiquidity: Most Groundfloor investments are illiquid until maturity, except for Rollover Notes.
  • Default Risk: There is a risk of borrower default, which can lead to losses for investors.
  • No Equity Ownership: Investors do not gain any equity in the properties, limiting potential gains.
  • High Default Rate: Groundfloor has a higher uncured default rate compared to other platforms, which can be a significant risk.
  • Limited Transparency: Some investors have noted a lack of detailed information about the proposed renovations and borrower experience, which can make it harder to assess risk.
  • No Bankruptcy Protection: Groundfloor does not offer bankruptcy protection for its investments, which can expose investors to additional risks.

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Groundfloor Customer Reviews (13)

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Omero Barese
Omero Barese
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Jul 9, 2024
Tara Honea
Tara Honea
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Jul 9, 2024
Luana Carvalho
Luana Carvalho
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Jul 8, 2024
Louise Robinson
Louise Robinson
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Jul 8, 2024
Elizabeth Mahon
Elizabeth Mahon
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Jul 8, 2024
Alicia Bass
Alicia Bass
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Jul 8, 2024
Neal Hockaday
Neal Hockaday
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Jul 6, 2024
Tom Leach
Tom Leach
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Jul 4, 2024
Nancy Jimenez
Nancy Jimenez
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Jul 4, 2024
Leah Bachmeier
Leah Bachmeier
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Jul 3, 2024

Groundfloor Customer’s Q&A

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Groundfloor Features and Benefits

Groundfloor.com offers several key features and benefits:

  1. Low Minimum Investment: Start investing with as little as $10, making it accessible for all types of investors.
  2. No Fees for Investors: There are no trading, management, or account fees for investors, ensuring that all returns go directly to the investor.
  3. High Returns: Expected returns range from 8% to 15%, providing a lucrative opportunity for investors.
  4. Short-Term Investments: Average holding period is six to twelve months, allowing for quicker returns compared to traditional real estate investments.
  5. Automatic Investing: Funds are automatically and instantly invested across all available loans, ensuring instant diversification and optimizing the investing strategy.
  6. Real Estate Backed: All investments are backed by real estate assets, providing a level of security and stability.
  7. Competitive Loan Rates for Borrowers: Borrowers benefit from competitive loan rates, making Groundfloor an attractive option for real estate financing.
  8. Transparent Process: Detailed information about each loan, including property pictures and financials, is provided, allowing investors to make informed decisions.
  9. Regulation A Offering: Groundfloor is the first company qualified by the SEC to offer real estate debt investments via Regulation A for non-accredited investors.
  10. Diverse Investment Options: Invest in various types of real estate projects, including fix-and-flip properties, new construction, and buy-and-hold properties.

Groundfloor.com provides a user-friendly platform for both new and experienced investors to diversify their portfolios and achieve high returns with minimal effort.

Groundfloor Pricing

Groundfloor offers fractional real estate investing with a minimum investment of $10. The platform is free for investors, meaning there are no trading, management, or account fees. Instead, Groundfloor charges fees to borrowers. These fees include flat fees, percentage-based fees, and closing costs. Borrowers pay a platform fee to list projects, and loan rates for borrowers range between 2.75% and 4% interest. Additionally, there is a $250 loan application fee and a $1,250 closing fee.

Groundfloor's investment products deliver high returns with expected returns ranging from 8% to 15%. The platform offers short-term investments with an average holding period of six to twelve months. Groundfloor's automatic investing feature ensures funds are automatically invested across all available loans, providing instant diversification and optimizing the investing strategy for the best path to historic returns.

For those looking to diversify their portfolio and elevate their earning potential, Groundfloor provides an accessible and easy-to-use platform backed by real estate assets. The platform's set-it-and-forget-it approach allows investors to sit back and watch their investments grow without heavy lifting.

Groundfloor FAQs

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Groundfloor Alternatives

Here are the top alternatives to Groundfloor.com based on the provided sources:

  1. Fundrise - Best for low investment minimums and non-accredited investors.
  2. Roofstock - Best for single-family rental properties.
  3. CrowdStreet - Best for accredited investors.
  4. Streitwise - Best for small account real estate investing.
  5. Arrived Homes - Best for long-term investors with a $100 minimum investment.
  6. Yieldstreet - Best for non-accredited investors with a wide array of alternative investments.
  7. RealtyMogul - Best for non-accredited investors with access to commercial real estate opportunities.
  8. EquityMultiple - Best for accredited investors with commercial real estate investments.
  9. DiversyFund - Best for crowdfunding with undervalued multifamily properties.
  10. PeerStreet - Focuses on democratizing access to real estate debt.

These platforms offer various investment options and cater to different types of investors, including both accredited and non-accredited individuals.

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