New initiatives offer more capital to qualified borrowers, stimulating the economy and offering more options for retail investors to diversify through real estate
GROUNDFLOOR, the award-winning wealthtech platform that allows everyone to build wealth through real estate, is rolling out a series of initiatives to meet the growing demand for residential real estate investment capital and opportunities to supply it. Since the onset of the pandemic, GROUNDFLOOR has continued to experience record-breaking growth from retail investors who want to diversify their portfolios with short-term, high yield real estate investments. Now, as lending ramps back to pre-pandemic levels, the wealthtech platform is leveraging that supply of capital by dramatically increasing access to capital for experienced real estate entrepreneurs.
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“The early COVID-19 liquidity crunch obliterated all institutional lending in the residential fix and flip and rental property space. While most lenders were frozen, GROUNDFLOOR was able to continue lending through the economic uncertainty thanks to our unique capital structure,” said co-founder and CEO Brian Dally. “This year has proven that capital sourced from mass market investors is more reliable. Now we’re demonstrating that it’s also more powerful and flexible as well.”
The new lending initiatives from GROUNDFLOOR include:
The Loan 100 Program – Available only to the most experienced borrowers in GROUNDFLOOR’s network, the Loan 100 product provides financing for up to 100% of total project costs, including purchase and renovation (i.e. up to 100% Loan-to-Cost). This program allows developers with an extensive and proven track record to borrow funds for their projects with 0% down.
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Reduced Origination Fees and Interest Rates: For the first time since 2017, GROUNDFLOOR is reducing fees and interest rates in order to support borrowers who are faced with increasing pressure on their profit margins. The reduced fees include a decrease of 1% across the board and of up to 1.5% off origination fees for qualifying borrowers. This ability to reduce fees is a direct result of GROUNDFLOOR’s increased capacity to finance larger-balance loans, along with efficiencies gained by the cumulative impact of leveraging proprietary technology to streamline loan processing capacity.
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