GroundfloorReviews of groundfloor.com

I expected more if a return of my investment besides the obvious repayment.

Still waiting for closure for my defaulted investments, some should have matured in 2019

The concept is great, but way too many, SOOOO Many of the loans don't pay off when they are supposed to more than I expected are defaulting. Also the communication on the loans that are not meeting maturity is beyond poor. For me if something is not going to pay on maturity I would expect weekly updates at least. And if maturity date is coming up then I would expect an update just prior to that date to know where I stand. I have started putting more of my money into the bonds and a lot less into the individual LRO's because 80%+ did not pay on maturity date. I currently have several that were supposed to mature last November!.

My real estate portfolio spreads over 5 platforms and GF pays the highest returns but the contracts take so long to mature. I have been clearing out my GF account and putting that money into faster return properties.

When borrowers pay off on time, the return is acceptable. However, 90% of borrowers that I've experienced have not paid off on time, and most loans are "extended." While all loans so far have paid off in the end, the high volume of extended loans is concerning.

More than half of my investments have been multiple months late on repayment with no clear explanation about future repayment. Starting to question if this is a good investment tool. 🤔

Been investing with them extensively for over 2 years now, with overall decent results, around 100 loans, avg ROI around 8.7% so far. Surprisingly many loans went into default/extended status (28% extended, 19% default currently), but all broke even at least so far. The idea is that the LTV covers the loss in a foreclosure and that seems to work as borrower has to give up his skin in the game, and this even creates a better ROI sometimes. However, one recent payoff of an extended loan from 2019 is a big loss and rather fishy (and GF so far failed to respond or provide an explanation on request!): The property, 955 Montague Road, was purchased for $225k in 2019, renovated at least partially with borrower skin in game of $75k. GF loan was for $209k total to pay off an existing loan and finance renovations. The property underwent a long foreclosure process since 2020 (covid surely prolonged court proceedings), was listed on market by GF in March 2021 and finally closed this January 2022 for a mere $165k, yielding a net of $164k after fees for investors. After over two years of a notoriously booming RE market! So a paper loss of at least $61k in value!? when it should yield in theory $225k plus 75k borrower skin = $300k? ie 90k profit?! (not adjusted for rising market prices, which rose another 20-30% in the time?!). One may suspect insider dealing with the buyer, or an overall careless sale process or something else that's fishy, since yes, auctions sometimes yield bad prices way below value, but this was apparently marketed and it simply doesnt add up. Either the borrower burnt it all down, ran with the money or something else is wrong with this deal. Yet GF so far hasn't responded, which doesn't instill confidence. I for sure would like to get access to these kinda foreclosure deals if they come up.