The new year calls for new resolutions, and one of the most popular is getting fit. While exercise and a healthier diet definitely help, it’s also important to improve your financial fitness by creating a steady stream of passive income. That’s where Groundfloor comes in.
Why Groundfloor Is Your Perfect Financial Fitness Partner
With Groundfloor, getting financially fit is the perfect fail-proof resolution. We’re a first-of-its-kind investment platform that gives both accredited and non-accredited investors direct access to short-term, high yield returns backed by real estate. In short, our tech makes it easy to get shares of real estate, and our historic 10% returns means you’re consistently getting great returns.
Plus, you’ll get these fractional shares for your portfolio on your terms without having to go through a preexisting Real Estate Investment Trust (REIT) or fund.
We also make it easy for anyone to invest with a low investment minimum of $10, so you can try the platform out and see how you can easily diversify your portfolio with an automatic investing experience.
How Groundfloor Works
What sets Groundfloor apart from the rest is the ability to easily invest in real estate. These types of investments entitle you to repayment on debt issued by Groundfloor.
With Groundfloor, you’re not taking equity in a property and you won’t pay any fees. Instead, your money is lent to a real estate buyer, usually a renovator, developer, or private citizen. Groundfloor services the debt on behalf of thousands of investors, and once the borrower repays the loan, you get repayment based on your share percentage.
While traditional REITs can trade up and down, LROs with Groundfloor remain steady. Your investments help fund housing projects or developments, and you’ll be paid back at an industry-standard, or even industry-beating, interest rate.
It’s a great way to earn passive income and is popular among income-oriented investors because of its short duration time horizons and history of 10% consistent returns. Because Groundfloor funds dozens of LROs, it also offers a wide array of possible investing opportunities.
Best part? Once you transfer funds, Groundfloor handles the rest. So you can sit back and watch relax while the high yields keep coming in.
Okay, So What Do I Have to Do?
When you sign up for Groundfloor, you’ll have two account options to choose from: Investor Account and Auto Investor Account.
Auto Investor Account
The Auto Investor Account is like your easy button for real estate investing. Unlike the Investor Account, this account has a lower minimum threshold of just $10, making it easy for anyone to start their real estate investing journey.
The moment your transferred funds have reached your Groundfloor account, they’ll be immediately invested in a multitude of real estate investments. From there, our algorithm assesses the most optimal strategy, looking for loans that have high contractual return rates. Then, once your investments are selected, you’ll be able to see them in action in your mobile app.
While this sounds like a lot, Groundfloor does 95% of the work. All you have to do is link your bank account and hit “Transfer Funds”, and we’ll handle the rest as you steadily earn cash flow and passive income.
The Auto Investor Account also shows you a wider, more detailed picture of your portfolio. In the app, you can see your portfolio summary, active investments, and a projection chart across a one year period. You can also see your recent transactions, repayments breakdown, and the projections chart.
The projections chart is an especially handy tool that shows your account’s potential growth over a selected time frame. You can enter either a one-time or recurring transfer amount (we recommend the latter for greater gains), set the desired duration, and see how your account grows over time.
With an Investor Account, you can develop your own strategy to diversify your portfolio the way you want. You can select LROs from all over the country, choose the risk level you’re comfortable with, research the financial overview for each property, and invest how much or little as you want.
All of these LROs are backed by collateral, and Groundfloor requires a minimum of $1,000 to get started with an Investment Account. You can invest these evenly across the board in $10 increments or put more into one or more investments over the others.
As the new year quickly approaches, it’s important to determine your resolutions for 2024. Our recommendation? Getting financially fit, especially as Groundfloor makes that resolution fail-proof. Our first-of-its-kind platform helps you achieve a steady stream of passive income and a historial 10% consistent returns. Your financial future’s looking pretty good.
*When we use the term “loan”, we are referring to a Limited Resource Obligation (LRO). An LRO is a debt security available on our platform. While the term “loan” is commonly understood, it’s important to note that in our context, it specifically refers to LROs. The full definition of LRO can be found in our offering circular.