Thank you for joining the Groundfloor Live event showcasing the new Flywheel Portfolio! If you missed it or would like to rewatch, check out the recording here. Below, you’ll find questions we answered during the event and ones we did not have time for.

The specific amounts are driven by which loans repay. The majority of repayments happen in the first year, most of the remainder in year two, and a small number in year three. Historically, you can expect about 95% within the first 24 months — though we can’t guarantee that it will continue to perform this way in the future.

The Flywheel Portfolio loans are all first lien loans, backed by real estate and originated by Groundfloor. In our Labs products, we sometimes offer second lien loans for accredited investors as well, but they are never part of the Flywheel Portfolio.

You’ll get repaid your share of the interest, along with your share of repaid principal, as the loan holdings within the portfolio repay. Interest is prorated based on your time in the portfolio.

In the Auto Investor account, in time, all funds will be reinvested to the Flywheel Portfolio. You will need to either opt-in, sweep your funds to the Investor account to reallocate them, or allow your cash balance to grow.

In the Investor account, the Flywheel Portfolio is optional and investors can choose to participate or not. And we will continue to offer LRO investing and Notes within your Investor account; the Flywheel Portfolio is another option in addition to those.

The loans in the portfolio offer a 9.5–14% yield, and we expect best performance with our broad diversification over hundreds of loans. We expect a target return of 9–10.5% taking into account fees and losses based on historical performance. This is not a guaranteed return rate, however. The performance of each loan within the portfolio will ultimately guide the final performance and there is risk associated with any investment.

The Flywheel Portfolio charges an industry low of 0.25% to cover our costs to run the portfolio, manage the loans, and repayments back to investors.

There would likely be at most a small percentage of loans remaining. In that event, we would mark those to market and close your position in the loan.

As you invest, you can set the amount you want to invest each time you complete the investment. Currently, the Flywheel Portfolio is allocated across the country, but we are exploring offering more portfolios that would allow you to pick and choose based on your personal investment strategy.

We would expect fewer than 1% of loans to have a principal loss, but as with all securities, performance is dependent on the individual asset and market.

No, LROs are a different way of turning loans into investments. The Flywheel Portfolio consists of the same types of properties and loans that typically make up any individual LRO, but it’s hundreds of loans rather than just one loan.

You can withdraw from your cash balance any time you’d like. We disburse funds from repayments monthly at this time, but are working to make that daily in future.

The Auto Investor account will invest in the Flywheel Portfolio exclusively in future, so we cannot switch it back. However, we will offer the opportunity to sweep funds to the Investor account instead.

However, it is not recommended as the Flywheel Portfolio accesses the same underlying assets, and we believe it will provide the best performance and ease of use.

Yes, we do have a mix of new construction loans and renovation loans within the Flywheel Portfolio.

At this time, we are unable to do that, but we will consider that as a future feature enhancement.

Not currently.

The payment is accrued as loans are repaid, so the amount is driven by your share of the portfolio, how many loans are repaid, and which loans repaid.

Yes. We are exploring a day and time right now and will be in touch with our Tardus clients shortly.

This will be an estimate based on best information available, and we plan to be transparent in our communications about how we derive this.

With traditional REITs, there is typically a need to request a redemption from the fund manager, often on a quarterly basis, and it is at the discretion of the fund manager whether to honor it. Not so with Flywheel Portfolio. With the Flywheel Portfolio, you can withdraw from your Cash on Hand as often as you’d like. Currently, the Flywheel Portfolio offers monthly disbursements, but we are working to make this faster.

Yes, you can, and you can also do so whether you have an Investor, Auto Investor, or IRA account.

The Flywheel Portfolio offers more fractionalization, set-it-and-forget-it investing, and, ultimately, the greatest diversification, which we believe offers the best combination of risk and return to provide the greatest yield.

The Flywheel Portfolio is the next version of our Auto Investor account. Rather than investing in a portfolio of LROs, you can invest in a portfolio of direct assets, bringing assets to investors sooner, and offering greater fractionalization. You can find more detailed information here.

No. Similar to other Groundfloor products, the Flywheel Portfolio will need to repay over the 36-month term at which point cash can be accrued or reallocated.

The Flywheel Portfolio is our newest product offering. It shares some similarities with the Monthly Income Index product we’ve offered previously, but it is a new product with an even better diversification, more detailed reporting, will continue to experience future upgrades, and cash flow profile.

We provide 1099-DIV and 1099-B for the Flywheel Portfolio.

You will be able to see what assets are in the Flywheel Portfolio as part of the upcoming release of our new Flywheel Portfolio reporting. This will be available to all investors near the end of October.

There is no “deadline” that you must invest by to receive a disbursement. Disbursements are calculated based on how many loans repay between when you invest and when the next disbursement date is. If there are loan repayments between when you invest for the first time and the next disbursement date, you will receive a disbursement.

The Flywheel Portfolio is not currently available for Notes or Labs products, but we are actively exploring ways to potentially release Flywheels containing other types of Groundfloor assets.

Yes, only Investor and IRA accounts show an “Invest” tab at the top. Also, one thing to note is that if you are on an Auto Investor account, to change your reinvestment settings, you need to do so through your app, not through the web.

In some cases, the LROs that are available will also be offered as part of the Flywheel Portfolio.

Currently, you can only reinvest all principal and interest, but we are looking into ways for investors to be able to set a cash flow target or only reinvest principal.

Once you have repayments in Cash on Hand, you’ll be able to invest directly into the Flywheel Portfolio. Make sure to acknowledge the Flywheel Portfolio in your account.

We do not currently, but this is a feature that we are actively working on.

The Flywheel Portfolio is not currently available for Notes or Labs products, but we are actively exploring ways to potentially release Flywheels containing other types of Groundfloor assets.

The Flywheel Portfolio invests directly in Loans, and not LROs. However, in some cases there will be loans that are offered as part of the Flywheel Portfolio that are also offered as LROs elsewhere on our site. You can learn more about how investing in LROs is different than investing in the Flywheel Portfolio here.

Fortunately, there’s no need to move assets from the Auto Investor account to the Flywheel Portfolio. Once you opt in through your settings or mobile popup, the platform automatically starts directing all repayments into the Flywheel Portfolio.