GroundfloorReviews of groundfloor.com

Am using and investing in the Stairs app by Groundfloor. The app stops showing the balance all of the sudden with no error. This is really weird. Sent a email to support and waiting for the reply.

I purchased a 1918 small farmhouse for cash. I turned to Groundfloor for a rehab line of credit. They knew this was going to be a tear down to studs/rebuild project and that I was already in the process of demo. Initially, the process was very smooth, great communication with Andy, business account manager. My business partner had 800+ credit score. The ARV report came back higher than I projected (who doesn't enjoy hearing they think you will make more $$ than you have estimated!). Market analysis DOM supplied by a local RE agent came back at 55 days (well below the required 120 days). All three of my previous flips were verified with public documents. My LLC was in good standing. The feasibility study came back and said my cost estimates were spot-on, said I should probably add more money to Paint estimate and I should have a termite inspection (Agreed, two small changes means pretty great estimates, right?) All reports said my property would make money even if something happened to me and Groundfloor would need to pay someone else to complete the project. After three weeks of doing/submitting everything they asked of me, I was told underwriting declined my loan because "as-is" condition wasn't valued at $50k or more. They said it was valued at $19k. I countered back with local tax assessor values of $81k. They sent me a report that did not explain their $19k as-is value. I asked them to explain it to me. I was told the decision was final. That's it. End of discussion. Maybe Groundfloor should focus on as-is value in the beginning if it is a deal-breaker rather than string someone along for three weeks. In this business, time is money. I can accept a No when it can be explained to me. I was declined for no good reason and I think others should be aware.

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.

I started investment in groundfloor in 2018. My initial investment was 10K. Here is what my dashboard shows on ground floor: Cash available 320 Default 770 Extended 3670 Performing 6200 I haven't withdrawn anymoney from the account I have pretty much lost all the interest credited due to default of 770. So much for 4 years of investment. The extended loans of about 3670, some of them are extended since 2020 and signs of that money coming back. I am looking at losing 35% or even more. And this is for investments rated A and B grade with lower rates of 6% or so. Lesson learnt: If something is too good to be true, don't even smell it. Basically the people who are taking loans from here are very bad credit score, if not why would they come here and pay 8%+ rate when loans available in market for 3%?????

I invested in 2 loans, both are in arrears and groundfloor did not have any communications with me. Would stay away from groundfloor. Not worth the risk.

Trustpilot, thanks for your reply yes it was a mistake on my part I was in the wrong page. The money I invested is there and is growing, so I wanted to update my review to reflect this. Also I did increase my investment amount. Thanks for your help!

Initially I loved investing on this site, however far too many of the projects that went into default have not moved promptly to foreclosure. They spend the better part of a year trying to work things out, taking too long to file for foreclosure, these projects would be finished faster if foreclosed on and sold. I stopped investing well over a year and a half ago and still have dozens of projects I am waiting to be paid back on. I understood the risk, their process when loans default is slow and not what’s in the investors’ best interests. Edit: 1/3/2022 two years now waiting for default properties to be forclosed on. Do not invest on GF!

** edit after using Groundfloor for two years I had to downgrade my rating and I am pulling all my funds out. The concept is great but lenders are not compensated for the level of risk. When you loan on GF you are loaning to anyone and everyone who watched too many house flipping shows. I discovered that many of the borrowers on the site seem to have limited experience and a large percent of notes go into default. Lenders also have to realize that not only are you gambling on the flippers ability but you are also taking a chance that the home probably won’t sell and close on time. If GF charges fees for being late they must keep them because I never saw any extra $ from all my late or extended loans. I think some may have had decent success on the platform but I didn’t. My realized return was only 3.2% so not even keeping up with inflation. This is a p2p lending platform that allows people to loan and borrow funds from Groundfloor which are mostly supplied by the users. Groundfloor funds different Real Estate projects and then users are able to fund portions of the deal starting at just $10. There are different grades of investments available at different rates of return and lengths of loans. Most users will find something that suits their particular risk level and time horizon. I like that Groundfloor provides a good amount of details about each different loan so users can conduct their own due diligence. This is important since although Groundfloor likely does their own it is possible for each user to conduct even more analysis of the deals. I also like the ability to select only deals in non-judicial states which would make it easier for Groundfloor to foreclose on a project should the borrower not repay the loan. I think the site could improve slightly on the user interface especially when trying to view loans the user has already invested in. I also would like to see more filter options available so I could view loans that meet my criteria quicker. Right now there are basic filter and sort options which could be improved upon slightly. Also, all of the investments must be in increments of $10. So if you have $9 of interest sitting in your account that money can not be invested until there is $10 available, so you could not invest $19 into a loan. Overall this seems like a good opportunity for investors to earn a decent return especially if they only have a small amount to get started with. I have already had several loans get repaid and the system they have in place seems to work pretty efficiently. I could see myself using the site to add money each week and building up a sizable investment over time.