With more than $10 million repaid on over 50 investments in March alone, the wealthtech platform continues to demonstrate the power of retail investors and decentralized capital markets
GROUNDFLOOR, the wealth tech platform that allows everyone to build wealth through real estate, announced the launch of a new program to ensure capital for residential real estate development continues to flow during the COVID-19 financial crisis. Under this program, investors will earn an additional 4% interest rate bonus for 90 days on qualifying investments. A diverse range of over 60 loans currently funding qualify for this program, in addition to future loans slated to be funded in the coming weeks.
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“Our community of individual investors is a powerful force that is keeping the value chain of real estate finance moving forward on fair terms for all,” said co-founder & CEO Brian Dally. “The GROUNDFLOOR stimulus program rewards investors for stepping in to provide real estate entrepreneurs and developers with the funding they need to keep their businesses, and our economy, moving.”
GROUNDFLOOR was founded in the wake of the Great Recession of 2008-09 with a vision for reformatting capital markets to be more broadly decentralized and therefore more resilient in challenging times. As capital markets dominated by large financial institutions again seize up due to constraints on their leverage and liquidity, this time around individual investors armed with full sovereignty over their decision making are empowered to step into the void.
Competing real estate investment platforms such as eREITs have recently announced retroactive suspensions of fund redemptions. By contrast, GROUNDFLOOR is not a fund or a pool, but allows non-accredited and accredited investors alike the opportunity to allocate their capital directly into individual real estate investments with a minimum investment of just $10. Most investments repay in less than 10 months on average. In March alone, GROUNDFLOOR repaid over $10 million of principal and interest, distributed across 53 individual investments.
“We designed GROUNDFLOOR to give you control over where and how your money is invested,” added Dally. “Liquidity flows on an individual investment project basis, and no one can take that away from you.”
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