One of the most common requests we hear from GROUNDFLOOR users is for the ability to automatically invest in GROUNDFLOOR loans from their Investor Accounts so their money is continuously being put to work, without needing to actively login and invest. Our team has piloted this new feature over the past few months with shareholders, who have been the first to test it and provide feedback. Today, we are pleased to announce the launch of our new Automatic Investing feature to our entire investor community.
With Auto Investing, you’ll now be able to set an investment schedule to allocate funds automatically by desired investment loan grades each time new loans are released on the platform. It’s now quicker, easier, and more convenient to keep your money working and diversify investments into new loans when you receive repayments or when funds transfers clear your account. Auto Investing helps amplify user returns by eliminating “cash drag,” or missing out on potential interest because available funds go uninvested; with each new loan release, your money will automatically be put to work without you having to log in and invest yourself, ensuring your available cash is continuously earning interest and contributing to your overall returns.
Setting Up Automatic Investing
First, sign into your Investor Account, choose “Account Settings” from the dropdown menu in the upper right hand corner, and navigate to the Auto Investing area.
The Auto Investing area is marked with a "New" icon for easy locating.
From there, you will be able to enter a dollar amount to invest in each loan by risk letter grade. This indicates the amount of money you’d like the tool to automatically allocate to available loans in each risk grade category. As with our manual investing experience, you are able to assign investments in increments of $10.
Set your investment schedule to allocate funds by preferred risk grade.
So, as in the example above, setting the tool to allocate $100 towards loans graded A, $20 towards loans graded B, and $10 each towards C- and D-grade loans will mean that when the next batch of new loans are released, the Auto Investing engine will immediately apply $100 of your funds to each Grade A loan, $20 towards each Grade B loan, and $10 towards each Grade C and D loan available in that batch, until your funds run out.
Once you are satisfied with your choices, click “Save Schedule” -- and you’re done! The Auto Investing tool will run each time new loans are released on the platform, so you don’t have to think about manually investing each week.
How It Works
The Automatic Investing tool operates in three simple steps:
- Each time new loans are released on the platform, the Auto Investing engine will run and process investors’ investment schedules in a random order.
- All loans in which you have not previously invested are eligible for allocation. The engine will randomly allocate funds to all available loans that meet your investment criteria.
- You will be sent a summary email of the investments made by the Auto Investing engine each time it runs. Investments may be accessed via the commitments tab after the engine has run. If for any reason you don’t want to invest in a particular loan that the engine has allocated funds to, you can always elect to cancel the investment within 48 hours.
Automatic Investing Roadmap
The release of this new investor feature represents yet another exciting step forward in meeting the evolving preferences of our growing user base, especially as the number of investor offerings on our platform continues to increase. In the coming months, we’ll be iterating on the Auto Investing tool to enable our users to incorporate more specific investing preferences. As you continue to explore the tool, we encourage you to provide us with your feedback and suggestions via the link at the top of the Auto Investing page -- your comments are valuable to us as we evolve Auto Investing to better serve your investing needs.
Over eight years ago, we designed GROUNDFLOOR to be a simple-to-use tool to help everyone take advantage of the power of real estate investments. As GROUNDFLOOR continues to evolve in sophistication and respond to the changing needs of our growing user base as well as to the evolution and diversity of our product offerings, we’re committed to enhancing your user experience to facilitate your wealth-building strategies. It is our hope that our new Auto Investing feature will help you more quickly and easily diversify your portfolio, while also ensuring your funds are always put to work for you.
Ready to get started using the Automatic Investing tool? Click the button below to set up your automated investing schedule and let Auto Investing put your money to work.