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Atlanta
Why you should be in on GroundFloor: Invest and grow your money feature
$10 bonus offer / Special Advertising Content
I came across the Atlanta based fintech company (financial technology) GroundFloor in 2014 while looking for real estate house flipping investments. My plan was to buy, rehab and resell single family or duplex homes as a way to diversify out of the stock market and get into real estate investments. However, the time required to manage a full house renovation on an investment property is significant.
I knew buying up houses that needed some work, fixing them up and then selling or renting them is a great way to get ahead financially, and when I discovered that a company was matching up house flippers that needed funding from investors, I decided to give it a try. My personal results so far have seen a 10.7% rate of return on now hundreds of GroundFloor LRO house flipping investments I have made over the last few years.
So, how does GroundFloor work?
Click here to find out from them or continue reading below:
A real estate investor, interested in buying a property to fix up and resell for profit, secures a loan through GROUNDFLOOR rather than a traditional bank to finance a residential real estate project. That borrower submits a loan application and GroundFloor reviews and underwrites the loan using our loan grading engine. After review, the loan is assigned a loan Grade A through G and a corresponding rate where Grade A loans are the least risky, with the lowest rate of return and Grade G loans are most risky, with the highest rate of return. Grade A loans generally offer returns of 5.5% and Grade G loans generally offer returns of 20+%.
Then, investors like you crowdfund the loan. For example, if the house flipper needs $100,000 to fix up the property, 1,000 investors would commit $100 each (or any combination of that) to fund the flip. GroundFloor takes care of the paperwork and also holds the lien on the property, securing the loan.
Once a loan is fully funded, a closing is initiated with the borrower. The loan closes, the borrower draws money according to a schedule, and completes the renovation or rehab project. The property is then listed, sells, and closes. At closing the borrower repays investors via GROUNDFLOOR. A lump sum of principal invested plus interest earned is deposited into your GROUNDFLOOR Investor Account. The balance in your GROUNDFLOOR Investor Account can be withdrawn or reinvested in other projects.
You can browse the summary view of loans funding on the site by clicking the invest button at the top or view more information on each loan's detail page. You decide when, how much, and where to invest. Investing is simple and efficient. You fund your GROUNDFLOOR Invest Account here in any amount you choose and can invest after your funds post in 4 to 5 business days.
Ready to invest? Go here...link.
Learn more here, or click here to start to join today and receive a $10 bonus after you make your first investment.
This article is part of our consumer reports series. Read more consumer / personal finance articles at MoneyStoic.com. When a company we like offers an affiliate program, we will link to that company. If you engage in the product through the link, in some cases a commission will be earned. These are generally companies which we use ourselves and would like to share with you. Special Advertising Content