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.
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 month 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.
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.