GroundfloorReviews of groundfloor.com

As a long-standing retail investor who built a $53,000 Self-Directed IRA portfolio on the Groundfloor platform, I am writing this to warn anyone holding illiquid notes here. I constructed my retirement account under Groundfloor’s explicit, long-standing marketing framework stating they covered ongoing custodial costs. Effective July 1, 2026, Groundfloor unilaterally breached this arrangement, shifting 100% of the custodial maintenance and "per-asset" fees directly onto the investor. Because Groundfloor's Regulation A promissory notes are completely illiquid, investors cannot sell their positions or transfer them to a traditional brokerage to escape. My account holds 84 individual notes. Under the new fee structure, this triggers over $8,500 in annual custodial fees. Against a $53,000 balance, this structure will mathematically extract 100% of my retirement principal in just 6 years, rendering the account completely insolvent. The Compliance Risk: Groundfloor management’s only proposed solution was an informal, off-platform workaround: offering to mail personal, third-party reimbursement checks annually. When I formally requested their compliance team to certify in writing that this workaround is IRS-compliant and would not trigger total tax disqualification of my IRA via a "prohibited transaction," Groundfloor completely refused to answer and went silent. This matter has been officially escalated to the SEC Division of Enforcement (TCR #17795-536-637-956) and the CFPB (Case #260523-33106848), where Groundfloor was flagged as "Past Due" before issuing a flat deflection. If you are considering Groundfloor for an IRA, understand that your capital can be trapped in illiquid assets while unilateral rule changes systematically erode your retirement principal.

Do not invest your money with this company! They hold on to it for 6 + months, and the return is nowhere near 9% You get back what you put in with a few extra cents. You do not make money with this company, and investing with them is not worth it Reply to the company's statement: every single return was at least less than 5% and most were 1-2%. I did talk to someone before I posted this, who said returns vary and there are zero refunds... You have to wait the 6+ months to get money back. I stand by my original statement

I started investing with them in 2021, mostly in notes but also in some early LROs. My experience isn't an investment or two, but rather across hundreds of transactions over nearly five years. Generally speaking, the LROs are garbage loans that aren't collected for many years, if at all. They foreclose, the property is eventually sold at a loss, then they apply their costs and fees and pay you dimes on the dollar. It's important to distinguish the LROs and specialty products from the Groundfloor notes. The GF notes I invested in were all repaid on time as agreed. I'm unlikely to invest further, as I've found their transparency to be lacking, especially in obtaining financial information about Groundfloor itself. Based on the limited financials they have released, they lose tons of money and don't seem to have a clear path to profitability. Quicken calculates my overall annual return with them at 8.46%, but that's over 95% in notes averaging close to 10%, with losses on the small amount of LROs bringing down the IRR. I also have some cost basis remaining from old LROs that are unlikely to ever see a recovery, so at the end, the IRR will be in the 7's. My experience is that a simple ETF produces a much better result, provides liquidity, and results in a lower tax burden. GF desperately needs a publicly traded buyer or to be shutdown. In my opinion, their current business model is unsustainable.

Groundfloor Lending ripped me off on repayment from one of their bad loans (see attached). They falsely rate their loans to investors and then take no responsibility when their clients default. A 7-year investment for a $3,600+ loss (see attached). Sketchy company to say the least. I can't advise others strongly enough to avoid doing business with them at all costs...you'll be sorry if you do.

This company seems to be a scam now by providing misleading descriptions of the loans. Basically 90% of the loans can not be paid as scheduled, and more than 1/3 or even more loans will be default. So do the math. They don't have a solution to handle extremely high percentage of default loans. Has anyone ever heard of a solution or did they post a solution at the website?

What a terrible experience! Misleading maturity dates on investment products. Groundfloor holds your principle for years past the advertised "maturity date" for LRO investments, so consider yourself warned. 70+ loans in default, maturity dates vary from 2022 thru 2024, updates are often repetitive, cut & paste, vague statements. Here in 2026, at this snails pace, I'll be lucky to see a small portion of the principle investment in 10 years. GF offers no resolution except to go through each loan individually which they said would take 2 or 3 weeks - shouldn't they be doing this regularly anyway? Whatever. Stay away, unless you enjoy a consistent loss of principle!

They are efficient in securing loan approvals; however, the disbursement of approved funds can be slow and challenging. Their draw process and communication delays often extend the construction timeline, resulting in increased overall project costs.

If I could give -10 stars, I would. This company is a waste of time and effort. I invested 1k as a test in an LRO 4 years ago. It was to mature in 12 months. It has not. The property has now been in foreclosure for 2 years with no end in sight. Customer service is very dismissive and uninterested in actually solving the problem. It's unfortunate because I had planned to invest quite a bit over time if they had actually panned out. Be advised, invest elsewhere.