Groundfloor

Groundfloor is a unique financial platform that opens the door to high-yield real estate debt investing for non-accredited investors. Unlike traditional Real Estate Investment Trusts (REITs) that pool money into long-term equity, Groundfloor allows users to act as the bank, funding short-term renovation loans (fix-and-flips) for independent real estate entrepreneurs. Investors can browse specific projects and contribute as little as $10 per loan, making it incredibly easy to diversify risk across dozens of properties.

The platform focuses on short-term debt products, known as Limited Recourse Obligations (LROs), which typically mature in 6 to 12 months. This structure provides a faster liquidity cycle compared to equity crowdfunding. Groundfloor historically offers returns averaging around 10%, positioning itself as a powerful tool for passive income generation. It bridges the gap between institutional lending and the everyday investor seeking better rates than a savings account.

Frequently Asked Questions

1. Is Groundfloor safe?

Groundfloor loans are backed by the underlying real estate assets; however, like all investments, there is a risk of borrower default.

2. What is the minimum investment?

You can start investing with as little as $10, allowing you to easily build a diversified portfolio of loans.

3. Do I need to be an accredited investor?

No, Groundfloor is open to non-accredited investors, making private real estate debt accessible to the general public.

4. When do I get paid?

Principal and interest are paid back to investors once the borrower repays the loan, typically within 6 to 12 months.

5. are there fees for investors?

Groundfloor does not charge fees to investors; their revenue comes from closing costs and interest charged to the borrowers.