Groundfloor Real Estate Investment Trusts Review

Investment options

Groundfloor is different than many other real estate investment platforms. Rather than having a variety of funds that individuals can choose to invest in, as with real estate investment trusts (REITs), Groundfloor uses the money it collects from investors to provide loans to real estate developers, who then pay back the loan over time with interest. Investors then get a portion of this interest as their profit. According to Groundfloor, it provides an average 10% return with repayments received within six to nine months on average. These are shorter terms than you usually see with REITs, so Groundfloor could be a better choice if you're worried about locking up your money for a prolonged period of time.

Groundfloor is also unusual in that it only requires a $10 minimum deposit. Obviously, you won't see a huge return if that's all you invest, but the low minimum makes investing in real estate a lot more accessible for those without a ton of extra cash than it otherwise would be.

Fees

Groundfloor collects origination fees and closing costs from the real estate developers that borrow from the platform, but it doesn't charge fees to investors unless they choose to open a Groundfloor self-directed IRA. The company has waived these fees for 2020, but it does not disclose what they will be going forward, so you must reach out to the company for this information. It does promise that if it decides to begin charging investors fees, it will provide at least 90 days' notice.

Accessibility

It's easier to get started investing with Groundfloor than it is with most other real estate investment platforms, so that's great news for those who don't have tens of thousands of dollars to spare. All you need is $10 to get started, though of course you're free to invest more than this if you'd like.

You can view your account and deposit or withdraw funds at any time through your online account. The Groundfloor platform is also fully functional on mobile devices so you're always able to access your portfolio and manage your investments on the go. 

Educational resources

Investing in real estate can seem confusing, especially for those who are new to it. Groundfloor has a comprehensive FAQ and support section to answer some of the most common questions about investing with Groundfloor. It also maintains a blog. If you can't find the answers to your questions in either of these places, you can always reach out to the company via phone or email for additional information. A representative should be able to explain the process to you and help you decide if it's the right place for your money.