GROUNDFLOOR offers short-term, high yield, real estate debt investments. They are an Issuer of payment-dependent real estate notes qualified by the SEC under Regulation A+. In 2018 they received regulatory qualification for Reg A+ Tier II, allowing GROUNDFLOOR to sell investment securities to non-accredited and accredited individuals in all 50 states. They moved from North Carolina to Georgia.
The minimum investment amount is $10 and there are currently no fees to invest. They state historical performance of an average of 10-12% annualized returns, on a 6-18 month time frame.
Real estate developers start the process by applying for financing through GROUNDFLOOR. They have built a proprietary algorithm to underwrite and assign a grade to each approved loan. These loans are converted into investment securities (LROs) and qualified by the Securities and Exchange Commission. Once qualified, individual investors can invest into any LRO on a fractional basis with as little as $10 and create a fully-diversified, custom portfolio of real estate debt tailored to their personal risk tolerance. Effectively, individual investors are investing in the short-term loans that professional builders and developers need to either rehab a house, build a new house, or provide rent stabilization for one of their properties.
As each underlying loan is repaid, individual investors’ investments are also repaid, plus interest. Earnings are then able to be withdrawn from the platform at any time with no penalties.
The company has created a standardized way to present all the salient details about each investment opportunity -- such as loan amount, term length, loan to ARV, interest rate, and more -- and has developed an easy-to-understand proprietary grading algorithm that color-codes and grades loan opportunities A through G, allowing investors to easily gauge the opportunity’s relative risk at a glance. We look forward to your feedback on this grading process.
We created an affiliate relationship with GROUNDFLOOR in early 2021.
Tier II of Regulation A, Series B, Preferred Equity
Raised to date: $4,158,263
pre-money valuation: $73,900,000
Additional Insights on the offerings
Solutions for real time market analysis to improve your investment decisions leveraging artificial intelligence, data visualization, machine learning, financial modeling, and predictive analytics. Understand trends, sector and geographic performance for Private Equity, VC.