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Real Estate Crowdfunding Platform Groundfloor Goes Nationwide

Investors across the US will now be able to invest in real estate loans originated by Groundfloor with as little as $10.

January 9, 2018 By Ryan Lichtenwald 1 Comment

Views: 68

Groundfloor is a company that has been around since 2013, which is a long time when you consider just how much the fintech industry has changed since then. They first launched their pilot offering in 2014. I was interested in the company from the early days due to their intense focus on serving the retail investor. That focus continues to this day as they built the company with a model very similar to that of LendingClub and Prosper. Only in late 2017 did they share that they would be bringing on their first institutional investor as discussed on the Lend Academy Podcast episode with Founder Brian Dally.

Until now though, the company only operated in a few select states for investors, which left a majority of retail investors on the sidelines. With their announcement today, investors across all 50 states will be able to invest on the real estate crowdfunding platform. This was accomplished through qualification as an issuer under Tier 2 of Regulation A.

What makes Groundfloor’s offering unique is that it isn’t a fund structure like other Regulation A+ deals in the industry. Investors can invest in individual real estate deals with as little as $10. The company currently lends in 27 states and has originated over $50 million across 398 deals. According to the press release, average annualized returns are 11.74%.

In addition to expanding nationwide, Groundfloor has also filed a preliminary offering circular to offer equity in the company also under Regulation A.

Conclusion

Opening up access for retail investors has always been a topic we’ve focused on here at Lend Academy even as the industry has matured. In the early days I was hopeful that the new models pioneered by LendingClub and Prosper would open all sorts of opportunities for retail investors. While that hasn’t come to fruition, I think it’s important to highlight the companies that continue to overcome the regulatory obstacles to make new investment opportunities available to the retail investor. Congratulations to the entire Groundfloor team on this accomplishment! We look forward to seeing where this news takes the company in 2018.

Filed Under: Peer to Peer Lending Tagged With: GROUNDFLOOR, investors, nationwide, non-accredited, Real Estate Crowdfunding

Views: 68

Comments

  1. ANDREW TAUB says

    March 1, 2018 at 7:59 am

    WANT TO GET STARTED IN THIS FIELD,CAN I START WITH $250.00?AND PUT IN MONEY MONTHLY?WHAT KIND OF DIVIDEND RETURNS DO I GET OR CAN I HAVE THAT AUTOMATICLY REINVESTED?DO YOU HAVE A PHONE # I CAN ASK ANY OTHER INFORMATION ABOUT?

    Reply

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LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

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