Skip to main content
All CollectionsFlywheel Portfolio
How is the Flywheel Portfolio different from investing in individual LROs?
How is the Flywheel Portfolio different from investing in individual LROs?
C
Written by Claire Lovell
Updated over a week ago

We have historically offered many ways to invest in LROs. The Flywheel Portfolio simplifies the process of diversifying across the full range of loans originated and managed by Groundfloor. Investing in individual LROs requires investors to select and size their exposure to each loan, and then to decide how each repayment will be reinvested. LROs must be held to term--which in the case of complex foreclosure or bankruptcy proceedings can take up to five years. For many investors, that’s a lot of work and too much uncertainty. With the Flywheel Portfolio, repayments are batched monthly. Investors can choose between being paid out in full as loans repay, but can also choose to reinvest principal and/or interest income automatically. Groundfloor intends to repay all loans in the Flywheel Portfolio within a rolling 36 month period. It’s a “set-it-and-forget it” way to invest, without sacrificing the yield and liquidity that our investors have come to expect with LROs.

Did this answer your question?