The Flywheel Portfolio has a target net return of 9%, net of management fees and estimated losses.
Originally (June–December 2024), Flywheel charged a 0.25% quarterly fee on your invested position in each subscription window. For example, if you invested $10,000, your fee for the quarter would be $25. If you earned $10 in interest and reinvested it, your next fee would be $25.03. This structure encouraged reinvestment and helped maximize compounding returns.
Starting January 1, 2025, we introduced a simpler structure: a 0.50% fee applied only when capital is repaid. So if your $10,000 investment grew to $10,900 through reinvestment, you’d pay a one-time fee of $54.50 at disbursement. This automated approach reduces friction between investments and often results in lower overall costs—historically, about $2,236 less in fees on a $10 million investment over three years.
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.