Groundfloor Reviews 403

The site is easy to use, it provides a wealth of information. I love the projection tool. I also like having everything available in one spot .

I have been an investor on this platform since 2019. The experience and customer service was great in the first couple of years but it has gone downhill since then. All of my LRO investments have been in default status for months, and some for years. Now it appears they are holding investor funds even on investments that have been completed. The property backing this particular investment (construction equity deal) was sold over a month ago and yet they still have not disbursed the funds back to the investors.

Expectation:
"You will receive a one-time payment of your earnings directly into your Groundfloor account upon liquidation of the asset"
Reality:
It has been over a month since the property was sold and still no return of principal or earnings.

Expectation:
"Monthly emails will be sent to update investors on relevant metrics related to your investment, similar to our investor updates."
Reality:
Not a single update was sent to investors during the entire 14-month duration of the project, which by the way was twice as long as they originally projected, which cuts the projected IRR in half.

I would not be posting this review if Groundfloor would just communicate with the investors on what is going on. I am hopeful this can get resolved soon.

One of the best experiences that I expected for my retirement. I would definitely recommend this company to get your retirement started and to contribute to your future and years to come. Please go over and sign up and contribute to your retirement and your future because your fellow government won't do that with only social security only.

Beware of this lender there will string you along make you lose your money by declining your loan at the eleventh hour. We had two great deals both tri-plex and the underwriter would not approve with original terms. Our numbers worked the properties were permitted, zoned, and had suitable comps. I truly believe someone at ground wanted our deals for themselves and block us from getting them, so they or a colleague can get it; which I am learning is not so far fetch in this industry.

I have about 30 investments with Groundfloor. All bought between 12/21 and 7/22. I looked at the top ten today. 6 are in foreclosure. 2 are in default. 1 has exit strategies being discussed. 1, only 1, was completed. This business strategy never delivered. I suggest you look elsewhere.

THEY WILL BASICALLY TAKE YOUR MONEY AND YOU WILL HAVE NO IDEA WHEN YOU WILL GET IT BACK. I WANTED TO CLOSE MY ACCOUNT AND NOW LOST MY MONEY. FRAUD FRAUD FRAUD

RUN AWAY FROM THIS LENDER! They are liars and predatory lenders. I had completed 3 successful projects with them and was working on a 4th. I reached out inquiring on expanding my scope of work and refinancing my deal. They said they would be glad to do it but wanted an additional $120,000 from me. I told them that was ridiculous and I would continue with my original project. They then refused to issue my draw request for work that was already completed, tried to force me to refinance, when I refused they chose to ignore me for a month whilst daily interest continued to accrue. They are scammers. Do not trust them!

Relax, it's a debt position.

Many of the complaints I see on here are due to late payment and extended loan status. Extended loans have been the most lucrative section of my overall Groundfloor portfolio. If the borrower has my money, they're on the clock, I'm getting paid.

I've seen some people mention REITS, however being that those are often equity investments, they are often far riskier. The reason people feel more comfortable with them is because real estate lending is something new with regards to retail investors being able to participate. The risk here is far less than in many other RE investment vehicles.

Check any publicly traded REIT's performance over the past 365 days from my review date. You'll find that most of them are down well over 8% on the year, and that's after a monthlong bull run in the sector.

I made 9.3% in 2023 on Groundfloor. The key is to DIVERSIFY into as many loans as possible. They make it very easy to do so with $10 minimums per loan on their desktop site, and $1 minimums per loan on their mobile app "Groundfloor Investor"

Their auto investor account on mobile is great for someone who wants completely passive income and maximum diversification.

Your customer service reps are friendly but any level above that is non responsive. My mistake to have invested $1000 on one project. It was initially supposed to be a 4 month payout but It’s been 11 months and property was almost in foreclosure once and now possibly again. Other than that information from the CSR, no one from Groundfloor will provide any further details.
In addition, there is limited communication on the website. One CSR suggested I spread out my risk going forward. This is also what I suggest to anyone planning to invest with this type of platform.

What a crap platform. They don’t properly vet their borrowers, and the lenders (you) end up on the hook. The “reasons” for not getting your money back vary, but they are all along the lines of, “My dog ate my homework.”

Here are some examples on deals where I've been waiting on getting my money back, some as much as three years old.

"This asset is REO and listed for sale. A price improvement will be processed this week. One offer received to date but it was too low."

"Borrower had documents to execute DIL paperwork. claims he doesn't have the funds to complete them all together. Working on solutions. "

Every week, it's some sort of nonsense.

The bottom line: It doesn't seem like they really vet their borrowers the way they imply.

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.

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.

This company is completely dishonest and misleading. A majority of all investments I have made with them have gone to default, despite their claims of high success. I would highly recommend other alternative investments.

The rates never pay out what they say. My 8.5% return did not give me an actual 8.5% but rather 5.5%. However, my negative 9.1% actually took 9.2% of my investment. Shady math and both these properties paid as far as I can tell and were given lengthy extension. I wouldn't mind the extensions if I were actually making what they claim I would. I'm also still trying to figure out my loss as there is very little up front info or easily found info on your investments so in the end I have no idea what went down with this.