True to our mission, Groundfloor has now opened the opportunity for everyone to own a part of the platform. Why should VCs get all the upside? Now, instead of just owning a piece of our loans, you can own a piece of Groundfloor itself as well.
Groundfloor began with a vision for how the personal capital of millions could be put to work on a broad scale in radical new ways, to dramatic effect. A vision to disrupt the world of private market securities and real estate investing, opening it up to the public. And by “the public,” we mean all of us, as in “everyone with ten bucks.” Kind of like “the people” from “we the people”. Everyone.
We thought we all deserve a shot, not just the top 5%, the so called "accredited investors" who with Wall Street and the Banks previously kept these high yield investments to themselves.
And once inside the club, these average Americans have done pretty well for themselves. Through investing in these fix and flip real estate loans, Groundfloor investors have earned over 14% per year. That’s 50% better than they would have made in the stock market that year, and over 1000% more than they would have made socking their money away in a CD or savings account. Turns out “we the people” can do a pretty decent job making a nice return on our money in the private markets if we just have access to the same investment opportunities previously reserved for the select few accredited investors among us. And beyond the solid returns, the investments have the added benefit of being collateralized, secured by the underlying real estate asset with a first lien position..
Thousands of regular Americans have invested millions of dollars in Groundfloor’s crowdfunded real estate loans, which connect investors, a.k.a. regular people, with real estate developers who want to borrow funds to purchase, renovate and sell houses at a profit.
Now no one said beating the system would be easy, and getting here required a historical regulatory milestone with the Securities and Exchange Commission. In 2015, Groundfloor became the first real estate direct issuer that the SEC ever qualified.
Demand is so strong, our loans often sell out in minutes. We’ve originated over 417 loans worth over $54 million.
Our results have been strong. We have grown at a 219% compound annual growth rate over the past two years.
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.
Developers…have embraced the opportunity. They see it as a viable way to quickly raise cash for a project.
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...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…
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…
Groundfloor’s investors are regular Americans who partner with developers on 20 to 30 real estate projects over a six month period...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.
Groundfloor made the higher returns of real estate investing available to people who previously did not have access.
I applaud Groundfloor in really building a business from the ground up where they're focused on the non-accredited investor.
Under U.S. Securities law, only accredited investors have access to the diversification, risk-adjusted returns & control available via private market offerings. That’s why we created Groundfloor. We identified a large, lucrative initial private debt market and structured a simple investment security allowing everyone to access it directly and efficiently.
We offer a higher yield, on a shorter time horizon, for lower fees at less risk than any other publicly available investment. That’s why thousands already use Groundfloor to build custom portfolios of real estate loans $10 to $10,000 at a time.
Investor who include real estate in their portfolios out performthose who don't. Yale endowment portfolio, which includes 20%
Groundfloor has sold over 417 loans. You can browse some of our recent loans below:
Groundfloor has originated over $54 million in loans, and has generated over two million in total revenue. Our retail investment volume has grown at a 219% CAGR over the past two years.
Since Groundfloor started, only 2 loans out of the total loans repaid have been subject to fundamental default (just 0.3% of total loan value repaid). Over 80% have been current at the time of repayment.
Groundfloor has begun with the real estate fix and flip market - a $40 billon dollar market in the US annually. In the future, we will expand in adjacent markets like multifamily acquisition and renovation, and non-bank new construction, which will greatly expand the market size addressed by Groundfloor.
Demand is greater than supply, and our loans often sell out in minutes. In addition to allowing Groundfloor to expand into adjacent categories, this funding will enable us to continue to grow our sales and lending operations teams so we can continue to offer more loans and supply our investors’ demands for these high return investments.
No investor fees for life *
Access to exclusive loan investment offerings for shareholders
Invitation to attend annual Groundfloor shareholder events
Get your choice of official Groundfloor company gear.
When Groundfloor was just getting started five years ago, critics and cynics objected with what we nicknamed “the Groucho Marx problem” -- i.e. the idea that no borrower we wanted would ever accept a loan from us. We’ve been lending for four years now, and lending extensively in non-Atlanta area markets for just over two years of that time. As our 2017 Year In Review indicates, volume has grown significantly.
All of us at Groundfloor are excited about our plans for 2018. Before the new year gets too much further underway, though, let’s take a look back at the progress the company made in 2017. From total investments and interest paid to loan originations and principal repaid, 2017 was another record year that set the stage for more to come. Check out our graphical summary below to put it in perspective.
Today we’re pleased to announce that Groundfloor’s product offering has been qualified by the U.S. Securities & Exchange Commission under Tier II of Regulation A. This is an important milestone not only for us as a company, but for individual investors nationwide as well.
In July, we published an analysis quantifying the effect diversification had on the range of returns realized in the portfolios of over 2,400 Groundfloor investors up until that time. With 2017 now behind us, we’ve updated and enhanced that analysis. The data now includes 2,950 portfolios, with over 209 loans repaid representing $21 million in principal invested.
Investing in startups is not without risk. There are risk factors you should consider before deciding to invest. We are a young company with limited operating history. Our business is premised on being able to successfully originate real estate loans and sell corresponding investments. We may be affected by economic cycles we cannot control. We must be able to expand into other markets successfully. For a complete discussion on risks, please see page 8 of our Offering Circular. .
All of the terms, conditions, and other details of our offering can be found in our Offering Circular . This should be read in with the Subscription Agreement and the Voting Agreement . You do not have to print out or otherwise manually sign these documents. They will be automatically filled out for you when you invest and will be available for your records in your dashboard.