GROUNDFLOOR was born out of the belief that there is a fundamentally better way to capitalize America. We believe a critical mass of individuals can keep an important part of our economy moving. Concentrating capital allocation among the few unnecessarily constricts liquidity in times of financial stress. When lending is financed through millions of individual decisions, we are free.
GROUNDFLOOR is the first and only company qualified by the SEC under Regulation A that offers debt-secured residential real estate investment opportunities to accredited and non-accredited investors alike.
Our unique positioning within the wealthtech industry stems from our innovative use of existing securities law to structure a private debt market (real estate loans) as simple investment securities that everyone can access simply and directly, regardless of their wealth or financial status. GROUNDFLOOR is strategically positioned to deliver unique value, especially in these uncertain times.
HOW IT WORKS
GROUNDFLOOR originates and underwrites loans for residential real estate projects. These loans are converted into investment securities (LROs) and qualified by the SEC. Once qualified, individual investors can invest in 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.
For seven straight years, investors have enjoyed average annualized returns of over 10% each year (10.40% in 2020). This past year, registered users on our platform exceeded 87,500 and annual investment volume topped $145M (a 50% YoY increase), signaling the public’s overwhelmingly positive response to our industry-disrupting model. We have also originated over 2,000 loans in 31 states since inception, including 232 in Q1 2021 alone, a 71% QOQ increase.