Wealthtech platform Groundfloor has launched a program to ensure capital for residential real estate development continues to flow during the COVID-19 financial crisis. Under this program, investors will earn an additional 4% interest rate bonus for 90 days on qualifying investments. A diverse range of more than 60 loans currently funding qualify for this program, in addition to future loans slated to be funded in the coming weeks.
“Our community of individual investors is a powerful force that is keeping the value chain of real estate finance moving forward on fair terms for all,” said Co-Founder and CEO Brian Dally. “The Groundfloor stimulus program rewards investors for stepping in to provide real estate entrepreneurs and developers with the funding they need to keep their businesses, and our economy, moving.”
Groundfloor was founded in the wake of the Great Recession of 2008-09 with a vision for reformatting capital markets to be more broadly decentralized and therefore more resilient in challenging times. Unlike other platforms including REITs, Groundfloor is not a fund or a pool. Instead it allows non-accredited and accredited investors alike the opportunity to allocate their capital directly into individual real estate investments with a minimum investment of just $10. Most investments repay in less than 10 months on average.
“We designed Groundfloor to give you control over where and how your money is invested,” added Dally. “Liquidity flows on an individual investment project basis, and no one can take that away from you.”
In order to provide for additional oversight of projects and asset management for investors during these turbulent times, Groundfloor is strategically focusing its lending in six southeastern states where the platform has the most direct experience and market knowledge. Investors in all 50 states, however, are able to continue chipping in $10 or more at a time to invest in real estate loans which are made available weekly. Annualized returns offered range from 5% to 15% over a six- to 18-month loan term. When projects are completed and repaid, investors can reinvest or remove their cash from the platform for their own liquidity purposes.
