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How GROUNDFLOOR’s real estate investing platform works
For the everyday investor, investing in real estate can be time-consuming, confusing, or not readily accessible. GROUNDFLOOR is on a mission to change this with its wealthtech platform that gives everyone simple and direct access to private real estate debt investments.
Here’s how the platform works:
• Real estate developers apply for financing through GROUNDFLOOR.
• The team combines years of collective real estate experience with a proprietary algorithm to underwrite and assign a grade to each approved loan.
• Once GROUNDFLOOR closes and funds the loans, it creates investment securities (limited recourse obligations or “LROs”) based on the loans, and files the securities offerings for SEC qualification.
• Investments are then released on the platform for individual investors to invest a minimum of $10 at a time.
• Once the loan is repaid to GROUNDFLOOR, investors in the LRO receive principal and interest repayments, which they can withdraw at any time or reinvest into more LROs.
Over 75k registered users have invested more than $250mm in GROUNDFLOOR’s real estate investments which earned an average rate of return of 10.6% since inception.