Groundfloor, an award-winning investment technology platform with over US$1 billion in investment volume, is announcing the launch of its next-generation investing experience: Groundfloor 3.0. This innovative platform, born from a decade of insights from 230,000+ users, defines a new path for mass market investors seeking exposure to private market real estate. Available via mobile app, Groundfloor 3.0 offers an effortless way for everyone to create a well-diversified portfolio of high-yield real estate investments, with the industry’s lowest barriers to entry and most consistent returns. Since 2013, Groundfloor has delivered nearly 10% annualised returns and returned more than US$500 million in repayments.
“The alternative investments industry has scaled to the point where it’s now possible to offer automatic diversification,” said Groundfloor Co-founder and CEO Brian Dally. “Fractional real estate investing is coming to the masses, bringing a consistency of returns that isn’t available in public markets, in an asset class that people know and trust. That’s why we’re excited to launch Groundfloor 3.0. People want to adopt alternative investments, and the combination of our scale and technology makes it easier than ever before.”
Groundfloor 3.0 offers a mobile-first experience, providing a seamless interface to create cash flows that beat REIT dividends by 10 times in as little as three months. No matter the investment amount, investors instantly build a diversified portfolio akin to investing in an index fund with no fees to a fund manager, no minimum hold time and no restrictions on redemption.
The biggest advantage for users of Groundfloor 3.0 is that it immediately allocates invested dollars across all investment opportunities on the platform in increments as low as US$1. As a result, investors can mirror the performance of Groundfloor’s overall portfolio, with set-it-and-forget-it simplicity. No prior real estate investing knowledge is required since investments are automatically disbursed across 50-100 projects at a time.
“REITs are overdue for a big disruption, at the same scale and for the same reasons that active stock and bond funds have lost to ETFs and index funds,” added Dally. “Groundfloor 3.0 is the new easy button for real estate investing. By giving investors an automated way to take full control over their cash returns and liquidity, our technology enables everyone to escape the REIT fund trap and reap the rewards of being their own fund manager.”
Key features of Groundfloor 3.0 include:
• Minimum to start: US$100 for new investors
• Minimum amount allocated to an individual loan: US$1
• Expected yield: Consistent 10% returns based on historical data
• Simplicity: Automatic reinvestment of repaid investments
• Automatic diversification: Investments across 50-100 deals, on average, at a time
• First repayment by month one
• Steady cash flow by month three
• Ease of use: A single step to add funds and start investing.
• Liquidity controls: With the Cash Target feature, pause reinvestments until a desired level of cash is reached for withdrawal
Investors who want to customise their Groundfloor portfolio can opt to use their existing Groundfloor investor accounts. These traditional accounts will continue to offer tools to select investments based on risk tolerance across products including LROs, Notes and Labs. By contrast, Groundfloor 3.0 offers less complexity and greater ease of use. Rather than choosing individual deals, investments via Groundfloor 3.0 are allocated automatically across all available opportunities, in increments as low as US$1.