What it is:
The Flywheel is an actively managed, dynamic real estate credit portfolio, designed to provide broad, diversified exposure to the Groundfloor platform and a target rate of return.
Who it’s for:
The Flywheel Portfolio is for all investors seeking to build a real estate credit portfolio, with minimal effort.
Key benefits:
Groundfloor manages it; you don’t have to — set it and forget it
Broad, diversified exposure
Frequent payouts, amounts variable based on portfolio activity, processed each week
Easy to invest and reinvest
Target rate of return of 9%, net of management fees and estimated losses
2–3 year investment horizon, full liquidity at month 36
What it costs:
$100 minimum investment to start, no max. No fees upfront; management fee of 0.5% of the funds you invest, assessed when you get paid back
How it works:
Money invested into the Flywheel is pooled and allocated into a diverse, actively managed selection of real estate-backed investments (a “Flywheel Portfolio”)
New portfolios are launched approximately every six months; they will fund
Loans are changed frequently for best performance
New loans added — 6 to 24 mo timeline for repayment
Repayments processed weekly, amounts vary based on portfolio activity, will include your share of interest and repaid principal
Loans repay principal and all accrued interest at their maturity (18–24 months after origination)
As the bulk of loans repay during the middle of the 36 month period, it takes time to get to the target rate of return, but you’re able to start earning right away.
What’s in it:
Direct or indirect interests in short-term loans backed by real estate, within these guidelines:
Term to maturity between 6 and 24 months
Secured by first-lien mortgage on the underlying property
Annual interest rates between 5% and 15%
Monthly or deferred payments
How to invest:
Available to all investors via web or mobile app. Select the amount you’d like to invest, and set your reinvestment setting to either reinvest repayments or have them paid out to your Groundfloor account.