Groundfloor is a unique platform that allows everyday investors to invest fractionally in real estate projects happening around the country. In a few words, Groundfloor pre-funds loans to real estate developers, then sells a debt investment that corresponds to those specific loans.
When you invest with Groundfloor, you have the ability to invest in Limited Recourse Obligations (formerly known as LROs, AKA loans), which is a debt security offered on our platform that Groundfloor submits to the SEC for qualification. Groundfloor holds a first lien position on each loan, and each loan is backed by the underlying real estate asset(s). "Qualification" by the SEC is not an endorsement of our investments, and no government or agency (federal or state) has passed or given an opinion on the merits of our offering.
With the Investor Account, you choose which projects to invest in and how much to invest in each project. The loan position you are buying corresponds to the project that you have chosen to fund. Each loan's performance is determined by the performance of the borrower's loan, and each loan will be repaid to investors from the cash the borrower uses to repay the loan.
A loan may have its own loan or be part of a series of loans. For loans hat are part of a series, an individual loan within the series may have either a senior or junior lien position. Please refer to the Financial Details and the Project Specific Risk factors on the Loan Detail page for information on that loan's specific lien position.
In addition to the Loan Detail page, you can always consult our offering circular for complete details on individual loans.