Groundfloor, an alternative real estate crowdfunding platform that allows non-accredited investors to invest in high-yield, short-term real estate loans, released a new batch of loans to investors Thursday.
These loans have a minimum investment of only $10 and have returns that range from 6% to 10%.
The Investment Platform: Groundfloor provides short-term, hard money loans to real estate investors and builders for the renovation or construction of residential properties. The loans are then paid back once the project is complete and the properties are either sold or refinanced.
Once the loans are originated, they are added to Groundfloor’s platform, where investors can contribute any amount in $10 increments to any number of properties they wish.
Goundfloor has 65 loans available on the platform with returns ranging from 6% to 11.5% and terms ranging from six to 12 months.
To date, the actual returns on the platform average 10.5%, with over $12.6 million in interest paid to investors.
Due Diligence: Groundfloor has a proprietary system for vetting and grading each deal before it's offered on the platform, and investors can review details on each loan before making any investment decisions. This includes information on the property as well as the borrower’s track record.
The investments are offered through a limited recourse obligation, which is a debt security created for each loan. Groundfloor holds a first lien position on each loan, all of which are backed by the underlying real estate asset.
How To Invest: You can review available loans and decide if this type of investment is right for you by signing up for Groundfloor’s investment platform here. The company also provides an automated investing feature that allows you to simply choose your criteria and the tool spreads your investment out across the loans that are the best match.
No comments:
Post a Comment