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What is Groundfloor?

Josh avatar
Written by Josh
Updated over a week ago

Groundfloor was founded in 2013 to open up high-yield, short-term real estate investing to everyone—not just the ultra-wealthy. Today, we’re helping thousands of everyday investors grow their wealth through real estate-backed credit products that are simple, transparent, and designed for performance.

How it works:

We originate short-term (6–24 month), high-interest (typically 8–14%) real estate loans to individuals and small businesses across the U.S., helping revitalize neighborhoods while creating strong earning potential for investors.

Those loans are fractionalized, meaning your investment is spread across many loans instead of just one. That diversification helps reduce risk and creates a more stable experience over time.

Meet Flywheel: Your Set-It-and-Forget-It Portfolio

Flywheel is our actively managed real estate credit fund that does the heavy lifting for you. Just invest once, and your funds are automatically spread across a broad, dynamic portfolio of loans. Groundfloor actively manages it to optimize performance, and you earn weekly payouts based on portfolio activity.

  • Target return of 9% (net of management fees and estimated losses)

  • Weekly disbursements of interest and principal

  • Full liquidity after 36 months

  • No upfront fees; just a 0.5% management fee deducted from your returns

How you earn:

As the borrowers repay their loans, you receive your share of principal plus interest—automatically. Groundfloor keeps the process seamless by handling all loan origination and servicing, charging a small management fee only when you get paid.

Why it matters:

  • Everyday investors can build wealth with real estate-backed assets

  • Local communities benefit from loan-funded revitalization projects

  • You earn real, consistent returns (about 9–10% on average)

More questions? We have a whole library of articles and FAQs for you to read that dive into the details. And you can reach out to our support team any time. View the customer support team's calendar here to schedule a chat: https://calendly.com/d/crf2-dk7-kr2/new-meeting

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