Being in real estate platforms can give you a big amount of money.
Many real estate developers pay monthly interest payments just to be in a real estate investing company.
Though there is a lot of updates about the foreclosure and legal actions to get back investors money and interest rates and an investment account can be really expensive.
So is it still worthy?
Learn in this review.
But before that…
GroundFloor is a real estate investing program.
Like most real estate investing training courses, you’ll likely be exposed to the “Big 3” investing types:
- Long-term buy-and-hold
Regardless of which path you go down, there is a lot of potential with real estate investing.
After all, it’s the world’s oldest wealth-builder.
However, before you leave this GroundFloor review and go sign up, you might want to ask yourself:
“Is now the right time for me to get into real estate investing?”
Because, no matter which way you slice it, real estate investing is extremely capital intensive, labor intensive, or both.
So if you’ve only got an hour or two a day, or your savings account is a few zeroes lighter than you’re comfortable with, this might not be the best time for you to jump into real estate investing.
But that doesn’t mean you’re out of luck. It just means you need a system to free up more time and give yourself a stronger financial cushion.
A good way to get yourself there is with Digital Real Estate.
Digital Real Estate takes all the best parts of real estate investing, while eliminating most of the headaches:
- Low cashflow
- Interest payments
- High overhead
- Expensive repairs and maintenance
- Problematic tenants
And the best part?
Digital Real Estate allows you to build a passive income stream that’s actually passive!
An income stream that brings in consistent revenues every single month (from a couple thousand dollars to well over $10,000).
An income stream you could actually build in your spare time, and grow as large or as small as you want to, without having to spend hours a day analyzing deals, cold-calling homeowners, or dealing with contractors.
If that sounds like something you’d be interested in, check out Digital Real Estate.
This is the perfect first step to build recurring income that you can then use to start investing in real estate down the line.
However, if you’d still like to know more about GroundFloor, keep reading.
What Is Groundfloor?
Groundfloor is a wealthtech company that offers high-yielding, short-term real estate debt investments to the general public. Groundfloor is regarded as one of the most popular real estate crowdfunding and investing websites.
Their platform is designed for small-scale home improvement tasks. This is an innovative approach to personal budget management. This is a consistent, quantifiable way for ordinary people to achieve high returns on their investments.
Groundfloor is a real estate investment platform that matches individual investors looking for short-term loan investments with borrowers looking for short-term finance for their projects. Borrowers gain from more flexible, faster, and less costly finance than they would get from a traditional bank or hard money lender.
Investors may access short-term, high-yield investments with returns ranging from 6% to 14%, depending on the risk grade of the loan. On its platform, Groundfloor now provides multiple Grade G loans with expected returns of up to 25%. Just bear in mind that the higher the expected return, the bigger the risk.
If you’ve looked at real estate crowdfunding platforms as an investment possibility, you’ve probably seen that most sites only allow accredited investors to participate.
Groundfloor has broken the mold by creating a real estate crowdfunding platform that allows anybody with as little as $10 to lend money for realty fix-and-flip transactions.
The Securities and Exchange Commission (SEC) has registered Groundfloor to conduct business in California, Georgia, Illinois, Maryland, Massachusetts, Texas, Virginia, Washington, and Washington, D.C.
What Are Real Estate Debt Investments?
Borrowers may get short-term funding for a variety of real estate projects via real estate debt investments, implying that the borrowers are often developers or experienced investors.
Real estate debt investment may include a wide range of businesses, such as construction loans, multi-family complexes, and industrial units, to name a few.
Typical real estate debt investments are made up of stock-backed funds that may be given to both asset owners and potential property buyers.
Anyone who makes this kind of investment will often get monthly payments from the interest paid on the capital as well as security imposed against the assets of a property.
Every debt fund usually has a particular investing strategy at its core.
Who Owns Groundfloor? When Was Groundfloor Founded?
GROUNDFLOOR was founded in 2013 by Brian Dally and Nick Bhargava. The company, based in Atlanta, Georgia, has a fast-growing workforce devoted to reformatting and opening private capital markets for the benefit of individual investors and the real estate projects they fund.
Let’s Talk About The Process
The loaner starts the process by looking for a loan to support a home repair or restoration project. Groundfloor investigates the specifics and does due diligence on the transaction and the borrower.
If Groundfloor agrees to underwrite the loan, it is assigned a loan Grade A through G and a corresponding rate of return, with Grade A loans having the lowest investment risk (and therefore the lowest rate of return) and Grade G loans having the most risk (and thus the highest rate of return) (having the highest rate of return with the highest rate of return).
Groundfloor grades loans and determines rates based on location, lien position, borrower commitment, skin-in-the-game, and other variables.
Variables such as loan amount, loan length, personal guarantee, history with Groundfloor, creditworthiness, and others influence the final rate.
Grade A loans normally yield returns of about 6%, while Grade G loans often generate returns of up to 25%, with each letter grade giving a rate in between:
- 6% for grade A
- 8% for grade B
- 11% for grade C
- 14 % for grade D
- 18% for grade E
- 21% for grade F
- 25% for grade G
How Does Groundfloor Real Estate Investing Work?
To get started, just link your checking or other designated account to your Groundfloor account and fund it. You send funds, and after your Groundfloor account is funded, you choose the project(s) in which you wish to invest.
After exploring the overview page of loans being funded on the platform, you may see further information on each loan’s detail page. You have complete control over when, how much, and where you invest.
Once the deal is ready for funding, investors have up to 45 days to fund the loan. The loan is typically for six to twelve months, although it may be shorter or longer.
Technically, you are purchasing a Limited Recourse Obligation (LRO), which is a financial instrument issued by Groundfloor.
Borrowers in 23 states may be eligible for loans ranging from $75,000 to $2 million, with interest rates as low as 5.4 percent (for a Grade A loan on a three-month term with monthly payment). Groundfloor will finance up to 90% of a project’s cost and up to 70% of the after-flip value.
Borrowers may also opt to make no payments throughout the loan’s duration. These conditions are very advantageous when compared to hard money lenders, who usually charge 12–15 % interest and demand a stricter loan-to-value (LTV) ratio.
What Makes Groundfloor Stand Out From Other Real Estate Crowdfunding Platforms?
The possibility for non-accredited investors to participate in private real estate is undoubtedly Groundfloor’s most important advantage.
To clarify, a few other companies, such as Modiv and Fundrise, allow non-accredited investors to invest in private real estate via real estate investment trusts (REITs).
For example, Fundrise is a private REIT that gives investors access to private real estate. The contrast is that, rather than investing in a particular management organization, Groundfloor gives direct access to private real estate.
How Does DiversyFund Make Money?
DiversyFund, like Groundfloor, enables non-accredited investors to diversify their real estate investments. Diversyfund, on the other hand, has a $500 minimum beginning requirement.
Diversyfund does not charge an annual administration fee for each project, but it does charge a 2 to 8% developer fee to find, manage, and buy each investment.
When a property is sold, the investor gets a 7% return before the company makes a profit. If the property makes more than 7% profit, it is shared 65/35 between the investor and the company until the investor achieves 12% annual profits. The investor and the company divided the remaining profit 50/50.
Is GroundFloor A Scam?
So, is GroundFloor a scam? Not technically. You can make money with this program, but it’s definitely not as easy as gurus makes it sound.
There’s a ton of work to be done upfront, no real guarantee of success, and – most importantly – the actual profit margins on real estate investments are pretty small.
Now, there’s nothing wrong with front-loading the work and making the money later.
But if you’re grinding it out for 3 months – looking at deals, sending out offers, negotiating with the seller and lender to buy a rental property – and then your reward is like $100 a month in profits, it’s not really worth it.
What if, instead, you could do that same 3 months of work (in your spare time), and your reward was a $500 to $2,000 payment that came in every single month (with a 90-95% profit margin)?
And what if you actually didn’t need to wait 3 months? What if you could get started today and have your first payment in a week?
And what if you could double it next week?
Well, that’s the power of Digital Real Estate.
And, unlike traditional real estate, you can legitimately do this from anywhere. It’s a true lifestyle business.
Your laptop and an internet connection is all you need.
Some of the most successful students in this program run their entire 6-figure businesses from:
- A camper in the middle of the woods
- A beach chair on the water in Mexico
- A small villa in Greece
They’re able to travel around, living their lives first, and focusing on their income second.
Because even if they stop working for an extended period of time, the money keeps coming in.
So adventure, memories, and experience are the top priority.
And they never have to worry about how to pay for the next trip, or consider asking for time off.
If this sounds more like the type of life you want to lead, just click here to find out more about Digital Real Estate.
Are There Alternatives To GroundFloor?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
What Is My Top Recommendation In Making Money Online In 2022?
Our review team has spent months researching, reviewing, and vetting dozens of business models and thousands of programs.
While there may be no “perfect business”, the research IS conclusive:
Digital Real Estate is the #1 online business model for those just starting out.
Whether you’ve never made a dollar online, or you’ve been in this space for a while but never really “made it,” Digital Real Estate is for you.
1) It’s Flexible: got an hour a day? You can do this. Ready to drop everything else and dive in full time? You can do this. Yes, the more time you put in, the faster you see results. But even with a little time each day, you can move the needle in a Digital Real Estate business.
And because this system is so flexible, you don’t have to constantly be working to make more money. It’s called PASSIVE INCOME because if you stop working, the money doesn’t.
Imagine taking 3 months off to just tour around Europe, rent a cabin in the woods to write a book, hike the Appalachian Trail, or live on the beach and surf all day.
This is only possible if you have an income stream that’s not tied to your time.
Flipping and wholesaling are full-time jobs (and more), no matter what any real estate guru tells you. You always have to be searching for deals, because if you stop, so does the money.
2) You Own & Control EVERYTHING: Yes, in traditional real estate you kind of “own” the properties. But there’s also a ton of debt tied to most real estate investments, which means the property isn’t truly yours.
A lender can take it away if you miss a payment. Not to mention, loan payments really impact your profit margins.
With Digital Real Estate, you own the assets outright (with a 90-95% profit margin), which means you have all the power and all the control.
3) Little To No Startup Costs: It’s possible to get into Digital Real Estate with zero dollars upfront. Because, using the strategies outlined in this program, you can get a client to pay you BEFORE spending a penny out of your own pocket…even before you do any work.
Even without getting paid in advance, you can have your first Digital Rental Property up, running, and generating profits for less than $100.
4) Minimal Ongoing Expenses: With traditional real estate, monthly expenses are HIGH. Between loan payments, ongoing maintenance, and repairs (not to mention the possibility of having to go through the eviction process), profit margins are slim.
Plus, whenever you have a vacancy, factor in the costs to turn over a unit (plus the fact there’s no money coming in until the next tenant moves in).
With Digital Real Estate, a 100% online business with minimal maintenance and ongoing costs, you never even have to think about that risk.
5) Easy To Duplicate: Ok, here’s the best part: once you have your first Digital Rental Property up and running, you can literally DOUBLE your income with a few clicks, a couple keystrokes, and a single phone call (and you don’t actually need the phone call).
Remember: each Digital Rental Property is worth $500 to $2,000 a month in semi-passive income (over 95% profit). Every time you decide to create another one and increase your income, it gets easier.
Because you have more knowledge, more experience, more results, and more momentum.
If you wanted to double your income with traditional real estate investing, you’d have to double your monthly rent, double your deals/number of units OR double your profit margins. And, guaranteed that’s a lot harder than a few clicks and a few minutes of your life.
6) Make Money Helping Real People: This part is what makes it all worth it. With Digital Real Estate, you’re actually helping people by solving your clients’ biggest problem:
Small, local businesses need more customers, and with Digital Real Estate, you are unleashing a flood of happy, paying customers for these businesses.
You make money by helping them make money.
Not a big, faceless corporation either…a small business owner who’s using that money to put food on the table for their family, start a college fund for their kids, or take care of a sick parent.
Once you see how Digital Real Estate makes a real impact in the lives of real people, you’ll sleep like a baby with a big smile on your face.
Now, the choice is yours. You could continue browsing, looking at opportunities like GroundFloor which could one day make you money.
You could continue researching, never making a decision.
OR, you could take a look inside, consider what you really want, and join a program that makes your dreams a reality. At the same time, joining a community of over 2,000 successful students that are living life on their own terms thanks to Digital Real Estate.
A consistent, reliable, semi-passive stream of income that doesn’t depend on you or your time to keep producing profits.
All while genuinely helping real people who are grateful and happy to pay for it.
If this sounds more like what you want out of life (or if you just want some nice side income), click here to learn more about Digital Real Estate.