While any investing comes with inherent risks, Groundfloor's key to high rates of return and low overall loss percentage is diversification. The more an investor is diversified across the Groundfloor portfolio, the better the chances for a higher rate of return.
This is where the Flywheel Portfolio really shines. Your funds are automatically diversified across a collection of hundreds of loans, limiting your investment risk and increasing your chances of higher yields. Loans within the Flywheel Portfolio have interest rates ranging from 8 to 15% (average 12.5%), and historical loss ratios of around 1%. The Flywheel also offers target yields of 8-10%, net of fees and expected losses.
Here is an in-depth look at Groundfloor's historical performance:
10.79% (or 10.8%) realized return on real estate loans originated within the last 3 years, inclusive of realized losses (*based on an analysis of loans originated in 2022-2024 and offered on the Groundfloor platform and resolved as of February 2025, inclusive of losses and weighted based on principal amount invested and holding period to repayment)
8.29% (or 8.3%) realized return on real estate loans originated within the last 5 years, inclusive of realized losses (*based on an analysis of loans originated in 2022-2024 and offered on the Groundfloor platform and resolved as of February 2025, inclusive of losses and weighted based on principal amount invested and holding period to repayment)
11.54% (or 11.5%) average return on loans repaid within the Flywheel Portfolio since its launch in July 2024 (*based on an analysis of repaid fractional loan interests held by the subsidiary entities underlying the Flywheel Portfolio and repaid as of February 2025, inclusive of losses and weighted based on principal amount invested and holding period to repayment)
Realized loss ratio of less than 1% on real estate loans originated within the last 5 years (*based on an analysis of loans originated in 2022-2024 and offered on the Groundfloor platform and resolved as of February 2025, inclusive of losses and weighted based on principal amount invested)
8-9% realized return on real estate loans originated within the last 5 years, net of realized losses
10-11% realized return on real estate loans originated within the last 3 years, net of realized losses
Historical yields 4-6% above 1-year U.S. Treasuries