Under the hood, the Flywheel Portfolio is structured as a series of Real Estate Investment Trusts (REITs). REITs are a specific type of investment fund that pools qualifying real estate investments. Groundfloor acts as manager of the REITs that constitute the portfolio. We periodically allocate capital across a broad range of the real estate loans that we originate. Overall, the Flywheel Portfolio is constructed to deliver an investor experience that simulates investing directly in a broad range of our traditional Limited Recourse Obligation (LRO) offerings over time. However, whereas investing in LROs is a manual process, the Flywheel Portfolio is automated.

Unlike traditional REITs, investors in the Flywheel Portfolio are repaid as the loans within the Portfolio are repaid on a weekly basis, with the option of reinvesting or collecting the proceeds. We expect you will start to see repayments within three months of opting-in to the Flywheel.