GROUNDFLOOR
Equity Offering

True to our mission, Groundfloor has now opened the opportunity for everyone to own a part of the platform. Now, instead of just owning a piece of our loans, you can own a piece of Groundfloor itself as well.

Deal Terms
Type of Security Common Stock
Pre-Money Valuation $28 million
Maximum Offering Amount $5 million
Minimum Investment $100
Shareholders
2,002
Amount Purchased
$3,761,300
Next Closing
June 29th*
* Equity Investments are closed every two weeks. Your investment documents are posted to your dashboard the following Friday of the close date applicable to your equity investment. You must have funds in your account in order to purchase shares. If you do not already have a Groundfloor account, you will be given the opportunity to establish an account and add funds after you click Invest.

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About GROUNDFLOOR

Groundfloor is taking private real estate lending public by being the first and only crowdsourced real estate lending platform open to non-accredited investors. Before Groundfloor, only accredited investors had access to the diversification, risk-adjusted returns & control available via private market investments. As a direct lender offering crowdsourced capital for short-term residential real estate loans, Groundfloor opens the door to short-term, high-yield returns to everyday Americans, backed by real estate. We bring together individuals looking for short-term lending investments with real estate investors looking for short-term financing for their specific real estate projects. The renovators get access to more flexible, faster and cheaper capital than a traditional bank or a hard-money lender.  Individuals get access to short-term, high-yield investments offering returns that average over 10%. 

Since funding the first Groundfloor loan in 2014, thousands of individuals have built their own portfolios of loans ranging in yield from 5% to 23%, on terms of 6 to 12 months, starting at a minimum investment of $10 per loan. Groundfloor earned a historic qualification by the SEC in August 2015 to sell private real estate debt investments to non-accredited investors. The company was founded in 2013 by Brian Dally and Nick Bhargava and is headquartered in Atlanta, Georgia. Our fast-growing team is on a mission to benefit individual and the investments they fund by reformatting and opening private capital markets to broad public participation.  We are democratizing and revolutionizing real estate lending.

How Groundfloor Works

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.

Example of a $100,000 Loan With a 11% Return

The landscape

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.

Competitive Differentiation
Comparable Online Investment Products

The Future

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.

Our Value to Investors

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.

Returns
13.6%
annually on average
Diversification
Portfolios that include real estate outperform those that don’t
Control
choose different loan grades, returning from
7% to 26%
Short Term
6- 12 Month
loan terms
secured
loans secured by the underlying real estate asset
Open
to
everyone
not just accredited investors
Groundbreaking
Groundfloor was first issuer to be qualified by the SEC to sell investment securities to the public under the new Regulation A rules of the JOBS Act
High Underwriting Standards
Only 5% of loans approved
Real estate expertise
100+ years
experience in mortgage industry
Confidence
we are so confident in our underwriting standards that we pre-fund our loans before taking them to the crowd
$10
Minimum Investment
Security
bank-rate security for your protection

Our Value to Borrowers

Since Groundfloor is the only direct lender offering crowdsourced capital for short-term residential real estate loans, we can give borrowers access to more flexible and cheaper capital than any other traditional banks or hard-money lenders.

Rates starting at
5.4%
Fix-and-flip hard money loans from
$75,000 to $2,000,000
for residential properties
(not-owner - occupied)
Closing as fast as
5 Days
Monthly Payments
or
Balloon Payment
at maturity date
ALL POINTS
can be rolled into the loan
no personal guarantee required
Lend up to
70% ARV
(after repair value)
Borrow up to
90% ltc
(loan to cost)
Fast & Simple Application
with minimal documentation (no tax returns, no bank statements on loans under 500k)

Shareholder Benefits

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.

* “Fee-free” benefit excludes third-party fees charged by Groundfloor on behalf of our partners, for example but not limited to IRA custodial fees and payment transfer fees, and also excludes all loan origination or servicing fees charged in connection with borrowing from Groundfloor. To be eligible for the fee-free benefit a minimum of $2,500 must be invested from a single Groundfloor account. Investments from multiple accounts cannot be combined to earn the fee-free benefit. Fee credits will only be awarded to qualifying accounts. Additional accounts are not eligible unless a qualifying investment is made in that account.

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Own shares in one of Venture Atlanta's 2018 "Top 10 Atlanta Companies to Watch"

Testimonials

What other Shareholders say about Groundfloor

John Austin

Shareholder
In the last 5 years we've had 150 companies come through NC Idea Labs, and Groundfloor is probably one of the top three or four companies that we've worked with. Groundfloor has built a platform that they can expand upon as they see other opportunities. They're disrupting an industry that has hundreds of billions of dollars of opportunity.

Michael Olander

Shareholder
Traditionally only high net worth individuals and a small select group of people would have access to something like this. Now through Groundfloor everybody can participate in this and earn these returns....I really feel like Groundfloor is at that inflection point right now - it is really about to come together and just take off.

Merrill Mason

Shareholder
The unique 'crack the code' idea is they've given the ability for every person that wants to participate in these sort of fundings. So if there's someone who's unaccredited who feels there's money to be made, now there's a way for them to do it that wasn't there before Groundfloor.

Mark Easley

Shareholder
From day one, Groundfloor has had the important philosophy that they're going to enable the retail investors in this space, and there are very few people doing this, so it is a competitive advantage...This is more difficult to do, and takes more time, but once it works, then the sky's the limit, because everyone in the US can do this kind of investing....I've invested in a lot of companies, and we don't often come across one that has this kind of scale factor to it....The potential for this turning into a really high scale business is absolutely there - that's what I like about Groundfloor, and I think that's what the other investors like about it too.

Meet The Team

Brian Dally
Co-Founder & CEO

Brian is a co-founder and director of GROUNDFLOOR and serves as our CEO. He is responsible for marketing as well as setting long term direction and goals for the company. more

Nick Bhargava
Co-Founder & EVP Regulatory Affairs

Nick is a co-founder and director of GROUNDFLOOR and EVP Regulatory Affairs. He leads product development and is responsible for regulatory strategy. more

Chris Schmitt
VP Software

Chris writes code. Lots of it, quickly. And it works. He drives software development and technology for GROUNDFLOOR. more

Rich Pulido
SVP, Head of Lending and Risk Management

Rich is the Senior Vice President of Real Estate Operations. He is responsible for designing and building systems and processes critical to the origination, underwriting, closing, and servicing of commercial loan assets. Rich's scope spans individual loans to the entire portfolio. He strives to ensure Groundfloor's investors and borrowers have p... more

Debora Valentine
SVP Business Development

She is an accomplished and experienced leader with 25+ years of experience and a proven record of increasing sales and profits in the Consumer Finance sector. During her stellar career, Debora has worked for companies such as National City Bank, PCFS/Provident Bank, & Ford Consumer Finance. more

Rhonda Hills
SVP Marketing

Rhonda Hills is Senior Vice President of Marketing, responsible for driving engagement and revenue growth for the Groundfloor. Rhonda has spent her career building internet based supply and demand marketplaces. more

Institutional Investors

AS SEEN IN

Ask The Founders A Question

What is this offering?

Groundfloor is now raising our next round of funding. This financing will be used to advance continuing development and operations of the company, and to allow us to grow our sales and lending operations team as we scale the business, so that we can continue to satisfy more and more consumer demand for our real estate investments.

How is investing in this offering different from investing in a Groundfloor loan?

Groundfloor loans are a form of debt issued for the purpose of funding a real estate development project. Your investment plus interest is due to be repaid within a stated timeframe, usually less than one year. By contrast, this offering is an opportunity to purchase stock in Groundfloor itself.

How or when will I receive a return on my investment?

In general, stockholders in a company can receive returns through dividends, an acquisition or other corporate transaction, by selling shares individually on a private basis, or trading shares should the company list on a public exchange (“IPO”). Potential investors in Groundfloor are advised that the company has never paid a dividend and has no plans to do so in the near future. There is currently no market for selling shares in the company, and shares may never be listed on a public exchange. Investors may not realize any return on their investment, or may realize a return only after an extended and indeterminate amount of time.

When will it start and end?

Following a preliminary period during which we accepted indications of interest and reserved shares for prospective investors, the offering started upon its qualification by the U.S. Securities and Exchange Commission on February 12, 2018. No end date has been set, but we reserve the right to end the offering at any time.

What is the price and valuation?

We have established a price of $10 per share, which represents a market capitalization for the company prior to financing ("pre-money valuation") of approximately $28 million.

Are there any special benefits to being a Groundfloor shareholder?

Yes. Shareholders will have access to shareholder-only loan offerings. Shareholders who purchase 250 shares or more will enjoy fee-free* investing for life on IRA and taxable Groundfloor investor accounts (*certain third-party IRA custodial fees and third-party transaction fees excluded). We’ve also added some fun extras such as shareholder-only events and official Groundfloor company gear.

How will the capital be used? What are Groundfloor's expansion plans?

The capital will be used to fund our operations for further expansion in several ways. Soon, Groundfloor will be expanding geographically, accepting investors from all 50 states. We will also be growing the team - on the lending side to enable us to originate more loans, and on the technology side so we can continue to add more features and functionality to the Groundfloor platform.

Risks & Disclosures

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 .

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.

[1] Groundfloor returns are based on the actual dollar-weighted average annualized returns realized on all loans originated by us that were repaid in calendar years 2015, 2016 and 2017. Comparable yields on the one-year Treasury note and the national average for one-year Certificates of Deposit were sourced on February 19, 2018 from Treasury.gov and Bankrate.com as of that date and December 29, 2014 (2.00% for the current 1-year Treasury note, 0.25% for the 1-year Treasury note three years ago and 0.27% for the average 1-year CD three years ago).
Not an offer of securities. Securities may only be offered to residents of states where Groundfloor has given notice of its intent to sell securities under Tier 2 of Regulation A. Please read the Offering Circular, Voting Agreement, and Subscription Agreement on Groundfloor's website for complete details.