Groundfloor opens private capital markets to all. Groundfloor is qualified by the U.S. Securities & Exchange Commission to offer direct real estate debt investments via Regulation A for non-accredited and accredited investors alike. Groundfloor connects users with a variety of real estate opportunities offered by developers who are expanding beyond the limitations of bank loans.
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Groundfloor's Products & Differentiators
Limited Recourse Obligation (LRO) is a debt security instrument. GROUNDFLOOR holds a first lien position on each loan, and each loan is backed by the underlying real estate asset(s). Generally, the Loans related to the LROs range between $15,000 and $2,000,000, at interest rates that range between 3% and 26%, and mature six months to five years from the date when the Loan is made. The terms of each series of LROs generally correspond to those of the corresponding Loan. For example, assuming a Borrower wishes to enter into a Loan covering $10,000, with an interest rate of 10% and a 12-month maturity date, the aggregate Purchase Amount of the LROs of the series corresponding to that Loan would be $10,000, with an Expected Rate of Return of 10% per annum, and a final payment date 12 months from the date of issuance.
Expert Collections containing Groundfloor
Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.
Groundfloor is included in 5 Expert Collections, including Mortgage Tech.
Companies here streamline and digitize the mortgage lending process. Collection includes direct lenders, mortgage brokers, process optimization technologies for lenders, as well as tools that support borrowers throughout the search and application phases.
Real Estate Tech
Startups in the space cover the residential and commercial real estate space with a focus on consumers. Categories include buying, selling and investing in real estate (iBuyers, marketplaces, investment/crowdfunding platforms), and also tenant experience, property management, et
Capital Markets Tech
Companies in the capital markets tech space are providing software and/or services for investment banks, hedge funds, investment managers, and so forth. Companies included use technology across the front, middle, and back-offices and streamline all pre- and post-trade operations.
This collection contains companies that provide alternative means for obtaining a loan for personal or business use and companies that provide software to lenders for the application, underwriting, funding or loan collection process.
Latest Groundfloor News
Dec 19, 2022
If you’ve been paying attention over the last 10 years, you’ve probably come across a variety of companies boasting about new investment opportunities in the real estate space. Companies like Fundrise, Arrived Homes, Streitwise, Crowdstreet, and many others have been making their rounds. But today we are going to review Groundfloor Finance, a particularly unique offering within the new age world of crowdfunded real estate. Click here to check out Groundfloor Finance today! But first, a bit of background on how we got here. Real estate crowdfunding became legal in 2012 with the passage of the Jumpstart Our Business Startups (JOBS) Act. This legislation was designed to make it easier for small businesses to raise capital by allowing them to sell securities to investors through crowdfunding platforms. The JOBS Act also created new exemptions from Securities and Exchange Commission (SEC) registration requirements for certain types of securities offerings, including those made through crowdfunding platforms. These changes made it possible for real estate developers and other businesses to use crowdfunding platforms to raise money from a large number of individual investors. What is a real estate crowdsourcing company? Real estate crowdfunding is a relatively new way for investors to invest in real estate projects. It allows investors to pool their money with others to invest in a variety of real estate ventures, such as the development of new properties or the renovation of existing ones. Real estate crowdfunding offers investors the potential to earn a return on their investment through rental income, appreciation of the property's value, or the sale of the property. It also offers investors the opportunity to diversify their investment portfolio and access a wider range of real estate investments than they might be able to on their own. With real estate crowdfunding, investors can invest as little or as much money as they want, depending on the specific investment platform and the requirements of the real estate project. How is Groundfloor different? Rather than raising money to purchase property and provide investors with equity, Groundfloor took a different approach by providing access to real estate lending. Founded in 2014 by Brian Dally, and Nick Bhargava, Groundfloor was the first company in the space to get SEC qualification, so it’s safe to say they are legit. Groundfloor is a lending marketplace that offers investors the opportunity to invest in real estate loans with a minimum investment of $10 per project. The company allows investors to gain exposure to loans in up to 32 states and provides the opportunity for diversification across a growing number of high quality loans. The $10 minimum investment per project is an intentionally low barrier to diversification, allowing investors to easily diversify their portfolio across many projects. However, investors need to be mindful about maintaining diversification and avoid going all in on a single loan. How does Groundfloor work? Groundfloor is a specialized platform that offers alternative investment products, specifically short-term real estate debt. Borrowers apply to Groundfloor for a loan to buy or improve a piece of residential real estate for commercial purposes, and Groundfloor then bundles this debt into a portfolio that investors can invest in. As the borrower makes interest payments, those are portioned out to investors on a pro-rata basis. Investors receive interest payments in proportion to the amount of any given portfolio they own, and when the borrower repays the loan, investors receive their investment back. However, investors should be aware that these investments come with risks. Is Groundfloor risky? Groundfloor offers debt-based assets and the main risk is that of uncured default, where the borrower cannot repay the debt and the lender has to try and sell the underlying collateral to recover as much money as possible. This is a particular danger given Groundfloor's emphasis on house flipping and renovation. That said, it’s important to understand all loans are backed by the actual property and are full recourse loans with personal guarantees. In the event of default, Groundfloor has legal claim to the property plus the borrower's personal wealth, so the risk of losing all the principal is low. However, in very rare cases, a foreclosure may be necessary and investors will get their share back from the sell. It’s important to note that all loans are rated at varying levels of risk, and lenders have the ability to choose the appropriate risk/return trade-off they are looking for. For example, you could tailor your lending only towards borrowers who have already successfully paid off a loan from Groundfloor. Groundfloor Fees Groundfloor is a free platform that charges no fees, costs, or commissions to individual investors. The company makes its money off the fees and costs it charges to its borrowers, which include a 2 - 4.5% fee of the loan amount, a $250 application fee, and $1,250 closing costs. There is no minimum to open an account and investors can invest as little as $10. Groundfloor does not charge its investors any fees, which sets it apart from other real estate crowdfunding platforms. ------------------------------------------------------------------------ Disclaimer: The text above is a press release that was not written by Finyear.com. The issuer is solely responsible for the content of this announcement. Avertissement : Le texte ci-dessus est un communiqué de presse qui n'a pas été rédigé par Finyear.com. L'émetteur est seul responsable du contenu de cette annonce. Fintech, Blockchain News by Finyear
Groundfloor Frequently Asked Questions (FAQ)
When was Groundfloor founded?
Groundfloor was founded in 2013.
Where is Groundfloor's headquarters?
Groundfloor's headquarters is located at 600 Peachtree St. NE, Atlanta.
What is Groundfloor's latest funding round?
Groundfloor's latest funding round is Convertible Note.
How much did Groundfloor raise?
Groundfloor raised a total of $136.31M.
Who are the investors of Groundfloor?
Investors of Groundfloor include Medipower, SeedInvest, Paycheck Protection Program, Mark Easley Sr., Inception Micro Angel Fund and 8 more.
Who are Groundfloor's competitors?
Competitors of Groundfloor include Wealthfront and 4 more.
What products does Groundfloor offer?
Groundfloor's products include LRO and 3 more.
Compare Groundfloor to Competitors
YieldStreet aims to change the way wealth is created by providing access to asset-based investments historically unavailable to most investors. YieldStreet allows users to participate in investment opportunities with low stock market correlation and target yields of 8-20%, across litigation finance, real estate and other alternative asset classes. YieldStreet was founded in 2015 and is based in New York, New York.
Realty Mogul is crowdfunding for real estate, a marketplace for accredited investors to pool money online and buy shares of real property such as office buildings, apartment buildings and retail centers. Realty Mogul provides investors with tools to browse investments, conduct due diligence, invest online and track the performance of their investments 24/7 through an online investor dashboard.
Patch of Land aims to solve the problem of slow, inefficient, fragmented and obscure private real estate lending by using the latest technology, data and process efficiency to more accurately assign risk profiles and project viability, while greatly reducing time and cost of loan underwriting for borrowers with real estate projects that are overlooked or rejected by banks and traditional lenders.
Fund That Flip provides short-term loans to experienced real estate redevelopers who buy and renovate residential properties. After origination, Fund That Flip offers accredited and institutional investors the opportunity to purchase fractional shares of the loan and earn an 8%-9% annualized yield.
Acquicent gives ordinary investors access to high-value luxury assets such as vintage cars and fine art while enabling owners of those assets to turn their equity into cash. Asset owners retain custody and majority ownership; investors buy shares in a minority stake in each asset. The company's core goals are the democratization of the historically exclusive world of high-value luxury assets and solving the liquidity problems that have long plagued the $10T luxury asset market. The company was founded in 2018 and is based in Walnut, California.
FranShares offers a digital platform specializing in wealth-building alternative investment opportunities and helps users invest in franchise portfolios.
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