Thank you for joining the Groundfloor Live: Tardus x Flywheel event showcasing the new Flywheel Portfolio! If you missed it or would like to rewatch, check out the recording here. Below, you’ll find questions we answered during the event and ones we did not have time for.
Will LRO product still be able to use Auto Invest feature?
The Auto Investor account will invest in the Flywheel Portfolio exclusively in future, so we cannot switch it back. However, we will offer the opportunity to sweep funds to the Investor account instead. However, it is not recommended as the Flywheel Portfolio accesses the same underlying assets, and we believe it will provide the best performance and ease of use.
Does the Flywheel Portfolio apply to my current investments in my Auto Investor account?
No. The Flywheel Portfolio is a different product, but it is available in your Auto Investor Account. Make sure to opt in when you sign in to your Auto Investor account, and you’ll be able to see the Flywheel Portfolio!
When should I anticipate repayments from the Flywheel Portfolio?
Repayments are made on a monthly basis on the first business day of the month. The purchase date also determines when you will start seeing repayments. For example, for a purchase made on the last day of the month, you should expect to start seeing repayments the first business day following a full month of investing into the Flywheel Portfolio.
How can I get more diversification than what Auto Investor offers?
Auto Investor invests in all LROs currently available. With the Flywheel, you’ll instantly be diversified into ~260 loans vs. the Auto Investor where you are investing in what’s available. If you’re interested in more diversification, Flywheel is for you!
Tardus FBF looks for a 3-year amortized term for best results and to avoid drop off later. How would I use Groundfloor to achieve this goal?
The Flywheel Portfolio has 36-month term lengths, making it seem like a great fit!
Is there a fee for the LRO investing?
No. Individual LROs require a lot more active investing of the account and selections. However, this does take significantly more time and effort than passive automatic investing and reinvesting with the Flywheel Portfolio.
Will I eventually be able to see what loans I'm invested in with the Flywheel Portfolio?
You’ll be able to see what assets are in the Flywheel Portfolio in the upcoming release of our new Flywheel reporting near the end of October.
How long will the investing windows be open?
While our $200 bonus credit promo ends on October 17th, you can invest in the Flywheel Portfolio at any time.
What is the Flywheel Portfolio promotion?
The current promotion is a $200 credit to your Groundfloor account for every $10,000 increments made into the Flywheel Portfolio.
When should I see the promotional credit added to my account?
The promotion will be applied to each client’s account 30 days following the end of the promotion. With the promotion ending October 17th, you can expect to see it applied to your account by November 17th, if not sooner.
If I've already invested into a Flywheel Portfolio, can I invest more into the same portfolio in that 6-month window?
Absolutely!
If I'm about to open a Groundfloor account, should I wait until your transition is complete to Flywheel?
The Flywheel Portfolio is officially live, and our promo lasts until October 17th. Invest now and take advantage of the $200 bonus credit! Don’t wait!
Does the Flywheel Portfolio avoid buying loans that have already been invested in?
The Flywheel Portfolio will instantly invest funds into thefull portfolio of loans. For example, if you invested $1,000, the $1,000 will be equally invested into all available loans (~260 loans). If you were to invest another $1,000, it will also equally invest into all available loans (~260 loans).
Can I invest in the Flywheel Portfolio with my IRA?
Yes! The promo we are running is eligible for Groundfloor IRA accounts as well. Credits will be applied to a taxable account for taxation purposes, so if you only have an Groundfloor IRA, make sure to open a taxable Investor account or Auto Investor account.
If I upgrade LROs to the Flywheel Portfolio, does that count as a new investment to meet the October 17th promo deadline?
The terms of the promo is $200 for every $10,000 invested into the Flywheel Portfolio. As long as you meet the terms, you’ll see the credit by November 17th or sooner!
If I want to speed up my snowball, what would you recommend modeling the passive monthly cash flow?
The fastest snowball will be one that takes as much principal and interest out as quickly as possible to pay down the line of credit and start your next flip. At our historical repayment rates, this will shorten each flip down by about a month, and that means that the exponential growth of the snowball is accelerated. A month at the beginning may not seem like much, but that compounds over years and turns into a huge gain.
Is there an automated way to move funds from my Groundfloor account to my bank account after a repayment is made?
The process to move funds from your Groundfloor account to your bank account is a manual process. There is no automated way to schedule a fund transfer to your bank account. We are considering adding this as a feature though, especially since several Tardus investors have requested it.
What kind of return on my money can I expect from the Flywheel Portfolio?
The loans in the portfolio offer a 9.5% – 14% yield, and we expect best performance with our broad diversification over hundreds of loans. We expect a target return of 9% – 10.5% taking into account fees and losses based on historical performance. This is not a guaranteed return rate, however. The performance of each loan within the portfolio will ultimately guide the final performance and there is risk associated with any investment.
Is it possible to change the passive income target after it has been set at the beginning of the flip?
Yes, you can change the passive income target any time.
When do the new Flywheel Batches come out?
Right now there isn’t a set schedule as we may want or need to accelerate it based on demand.