The peer-to-peer economy (P2P) is where individuals buy and sell goods and services directly with one another. Peer-to-peer investing or peer-to-peer lending describes when self-directed investors use alternative financial products, like Groundfloor, to invest their money.
Peer-to-peer lending is becoming increasingly common in the real estate industry. Groundfloor is the only marketplace offering direct access to private real estate investing for accredited and nonaccredited investors alike. Investors earn high yields over short-terms with loans backed by real estate.
Peer-to-peer investing at Groundfloor gives you the opportunity to directly fund a fix-and-flip loan and earn returns from 7% to 26%. Loans are graded, A through G, and assigned a corresponding interest rate by our rating algorithm. Our Lending Operations team reviews and approves only a select few that meet our high underwriting standards. You choose when, where, and how much to invest.
With so many options for investing - Certificate of Deposit (CD), Exchange-Traded Funds (ETF), Real Estate Investment Trust (REIT), and more - what sets peer-to-peer investing apart?
Certificate of Deposit (CD)
Parking your money in a CD, generally issued by a commercial bank, offers you a pre-determined interest rate for depositing your money for a certain amount of time. Peer-to-peer investing with Groundfloor affords you the same predetermined rate and term, only you earn more. Where you can earn 1% with a 1 year CD, Groundfloor offers returns from 7% to 26% over terms of 6 to 12 months.
Exchange-Traded Fund (ETF)
An ETF is traded like stock on a stock exchange. The benefit of investing in an ETF is that you earn when the ETF price jumps throughout the trading day. Consequently, if the market is down, you’re losing money; and you’re still paying fees. Creating an account, investing, and earning with Groundfloor is fee-free.
Real Estate Investment Trust (REIT)
Investing your money in a REIT affords you access to high returns and dividends. Additionally, your investment supports diversification within the portfolio, but without any visibility. When you invest with Groundfloor, you can build your own REIT. You diversify your portfolio according to your investment strategy and risk tolerance. You are completely in control of your money.
Thousands of Internet investors are changing finance by investing through alternative financial products like Groundfloor. When the crowd comes together to fund loans, it creates a more stable and more reliable financial environment. Everybody wins. Borrowers get access to cheaper and faster capital; and investors, like you, earn greater returns than with traditional investment products.
Build better finance. Sign up for an account today, fund your account, and start earning average returns of 13%.