GroundfloorReviews of groundfloor.com

Risk ratings don't make any sense. Limited information and communication on status of investments. Loans go into default/extension with no effort to foreclose.

This is a great tool to use for getting into real estate in a few different forms. As with any real estate investment the higher the risk the higher potential return. The GF Notes are a great place to start if you want to get in with some guardrails on your investment. The LORs have more risk and the timeline on them can be cut short or extended. I have experienced a bit of it all. I invest in both the LROs and Notes. I would only remind you, that you are investing in real estate lending and that there are risks with this form of investing. If you cant lose the money don’t invest, keep it in a savings account. Don’t put all your money in one investment, spread the risk so you can mitigate any catastrophic losses.

Good profit and easy to use!

The problem with the Groundfloor experience is twofold.. 1. Groundfloor hardly loses, hence there is no shared risk and secondly, the ratings on the loans are opaque. What is a B rating?. What are all the factors?. All my loans in default, all of them were rated B (less risky) while most of my loans that repaid were rated C or D. How is that possible?. Also as a few people have noted, too many loans in default, almost no effort to foreclose, too many loans that defaulted were by investors with no skin in game yet were rated a B. Too many loans extended. Even for a person who can tolerate risk, the reward is not sufficient for risk involved. I wouldn’t recommend this platform until they make fundamental changes on how they rate loans and are more aggressive with their borrowers.

This is my second review of Groundfloor and the song remains the same. What started out as a 12 month loan with an expected ROI of 10% turned into a 15.35 month loan with an ROI of 1.9%. I guess that might be slightly better than I could have done in a savings account. Be very careful before you entrust your retirement savings to this organization. All of my remaining loans through Groundfloor are either in default or in what they call work out mode which means they are not being paid as agreed to by the person who got the loan.

I invested with a play money of $1,000 just to test the water, starting late July 2021. Their platform allocated the funds to 33 Notes each of them worth $30. I tried to put the funds in most conservative options to mitigate the risk. Fast forward after approximately two years, I've got only $950.44 which includes the Principal plus interests of 30 Notes. I'm currently sitting on 3 Default Notes (worth total nominal value of $90) with no certain time frame to recover my funds. Given the high inflation rates in past two years, I've not even been able to restore my original $1K and underwater more than algebraic sum of -$49.56. I think they need to revise their underwriting criteria before offering the loans to investors. There are certainly much stronger and more robust Crowd Funding Platform out there. On my part it was a Pilot Project with a small fund to check these folks. They certainly failed.

This company never forecloses on these properties. I'm infested in 13 loans right now all of them are in default most of them have been that way for over a year and they still haven't even attempted to foreclose. My money is just tied up and not going anywhere and my returns are drying up while I wait. Don't invest here. Find someplace else to put your money.

I’ve invested well over $500,000 on dozens and dozens of properties and in note funds since 2018. Several investments have defaulted, to which I accepted the risk. However, Groundfloor has no regard for their investors it has taken 3+ years and they still can’t even bother to provide updates. Is it too much to ask for an update? I’m sitting on $30,000+ of money owed. Why do I have to send 20 emails to get any info? Sloppy sloppy company, and I would definitely avoid investing any money you aren’t comfortably able to lose.