Yesterday, independent developer John Mangham launched our second property for funding, 905 Tift Ave. Like our first property, 748 Charles Allen, this is a renovation project offering its backers an attractive interest rate to crowdfinance a loan that is secured by the value of the underlying property. In the first 24 hours, 905 Tift Ave was already 53% funded with 23 investors pledging $21,000.
Innovators like John and Pat are stepping up to cut out the bank and borrow direct from a new and better source of capital: You, the individual investor. As a result, we’re able to offer an extraordinary investment value. There isn’t a comparable risk-adjusted return like this available anywhere. Most uniquely of all, we've intentionally designed GROUNDFLOOR to be open to anyone, with no minimum income or wealth requirements, and offering an opportunity to get started with as little as $100. While our current offering limited by the constraints of securities law to the state of Georgia, we will be expanding to additional states very soon. Sign up for an investor account to be notified when we're available where you live.
This loan differs in a few respects from our original issue. It is a shorter term (six months instead of one year). A single-family house, the business plan is to renovate and sell, rather than leasing it out. Like Pat before him, however, John has done this successfully many times in the very same neighborhood, with the very same type of property. Both of these developers are experienced hands who are utilizing GROUNDFLOOR’s innovations in securities regulation to offer everyone the chance to tag along, financially.
Funding real estate development this way, 100% bank-free, is a triple win:
- Developers get better access to capital
- Neighborhoods receive much-needed investment for further development
- Individual savers and investors earn above-market returns
Questions or comments about how it all works and where we’re going from here? Feel free to use the comments below, write us at founders@groundfloor.us or comment/ask on the project page itself.