Nail down a hard money loan, with rates as low as 5.5%
"Closing the gap between the real estate investor and borrower through crowdfunding is what makes Groundfloor innovative."
"Groundfloor is unusual in that its mission opens real estate investing to the general population….The investment is secured by the real property, and there’s an aggressive pre-screening process for developers."
"Groundfloor’s investors are regular Americans who partner with developers on 20 to 30 real estate projects over a six month period, investing on average $500 per project. They earn between a 5 percent and 16 percent return on their investment within six to 12 months…. Investors run the gamut from retirees to professionals who want to invest in real estate part time."
"Unlike several other real estate crowdfunding platforms that require a minimum investment of $5,000, Groundfloor asks for a minimum investment of only $10. Typical Groundfloor loans, which carry interest rates varying between 7 and 26 percent, return 12 percent annually on a six-to-12-month term…. Real estate crowdfunding opens up the potential for achieving high risk-adjusted yields that have traditionally remained the province of a very narrow sliver of privileged people…"
"While most funds allow only “accredited” investors – those with at least $1 million net worth after their principal residence – a few like Groundfloor have modeled their business on more recent federal rules that allow non-accredited investors to play."
"GROUNDFLOOR fills a void for real estate entrepreneurs...They provide short-term, high-yield returns backed by real estate to entrepreneurs who are often ignored by traditional lenders..."
"Developers…have embraced the opportunity. They see it as a viable way to quickly raise cash for a project."
"'It was a nightmare working with banks,' Costanzo said. 'It was bureaucratic and tedious.' Costanzo then reached out to Groundfloor…. Groundfloor allows developers, homebuilders and remodelers like Costanzo to crowdfund money from online investors across the U.S. — similar to how startups raise funds on Kickstarter to manufacture new products. Within a couple of weeks, Costanzo, a former wealth manager, raised $100,000 from 130 investors through Groundfloor….'They just make it happen,' Costanzo said. “It seems more efficient and faster than a bank."
I decided to invest in GROUNDFLOOR because it gives me the ability to invest & make money in the rebounding housing market, without the large-scale capital requirements, time requirement, and managerial overhead of being a direct real estate investor and developer. Groundfloor allows you to take part with a relatively low cost of entry. Further, I like being able to understand how the funds will be spent, and who will be spending them…. The return is attractive, and the investment terms are short enough to where you don’t have to be without the liquidity for too long.
"My first GROUNDFLOOR project, which had 100% equity, was denied funding from a bank and a credit union since I owned the property for less than 6 months; I couldn’t even get a home equity line with my 740+ credit score! Thankfully Groundfloor arrived. The project funded relatively swiftly and the loan underwriting was timely and much smoother than what I’ve experienced at large banks. Loan servicing and post-closing support were also responsive and they were prompt to make payments on any construction draws."
Groundfloor makes investing in real estate a simple process. With a minimum investment size of $10 per project, it is easy for me to diversify my capital investment, while being able to quickly filter through project options to find what best fits my strategy. The process of investing through Groundfloor has been very smooth, and I look forward to enjoying continued investments and returns in the future. I would definitely recommend the Groundfloor platforms to anyone looking to invest in real estate assets or make a superior return on their capital.
"Groundfloor’s innovative approach to real estate financing is proving to be an effective way for us to keep pace with rising demand in our communities. I was blown away by how quickly and easily we were able to fund a project--it took less than 36 hours on our first deal."
I like having the ability to invest in real estate without having to make either a massive commitment to a single property or trust a vague portfolio of properties selected by someone else.
"We will defintely be using Groundfloor again. Groundfloor investors have become a meaningful part of our financing and business strategy. In addition to providing funds for our projects, we blieve that our cost of capital and fundraising timeline will decrease over time."
