The Flywheel Portfolio has a target net return of 9%, net of management fees and estimated losses. Each batch of the Flywheel has had its own respective fees attached. When a new fee structure is introduced, prior investments are grandfathered in under the terms that were active at the time of investment.
For Flywheel investments made prior to January 1, 2025 (labeled as "Flywheel: Aug 2024" on your dashboard), a 0.25% quarterly fee is charged based on your remaining invested balance. For example, if you have $100 in remaining investments as of June 30, 2025, the fee would be $0.25.
For Flywheel investments made between January 1, 2025 and June 30, 2025 (labeled as "Flywheel: Jan 2025" on your dashboard), a 0.50% fee is charged on each disbursement, calculated based on the total amount disbursed. For example, if you receive $100 in a week ($90 principal + $10 interest), the fee would be $0.50.
For Flywheel investments made between July 1, 2025 and December 31, 2025 (labeled as "Flywheel: July 2025" on your dashboard), a 1.00% fee is charged on each disbursement, calculated based on the total amount disbursed. For example, if you receive $100 in a week ($90 principal + $10 interest), the fee is $1.00.
In addition, Groundfloor can be reimbursed for certain expenses related to resolving defaulted loans. Fees, expenses, and allowances for potential losses of principal are not included in our weighted average interest rate disclosures. Please refer to our Offering Circular for more details.