How can Groundfloor benefit your future?
Updated: Jan 20, 2020
Do you have the money to invest in real estate?
Neither do I. Fortunately, we have real estate crowdfunding platforms where many people can pitch in to help pay for one investment property and share in the profits. Groundfloor is a hands-on investment platform that allows you to choose the properties you want to invest in.
Groundfloor is pretty straight forward. You deposit money into your account, and then you can pick from selected real estate properties that you want to invest in in increments of $10. This is more hands-on than most of my investments, so for those of you who really want to choose your own properties and control your risk, this is a great platform for you. They base their business on flipping houses and selling them, so the loans are usually relatively short term compared to most real estate.
Pros of Groundfloor
One time or scheduled deposits
Hands-on selection of the properties you invest in
Invest in increments of $10
Individual properties rated on an ABC scale, based on the risk of the investment
Property photos and location - know where your money is going
Grade factors - what made them give the specific grade they assigned
Several details on the loan and investment
Portfolio summary and explanation of earnings
Reinvestment of interest after you hit $10
Somewhat short term loans
IRA accounts available - I don’t have one
Cons of Groundfloor
While there are automated transfers, there are no automated investments.
You have to log in regularly to invest any cash you may in your account.
It doesn’t connect to Personal Capital.
Investments always come with risk and it is possible you can lose your money.
All in all, I like Groundfloor alright, but I find it a little boring. I have an account I put a little money into every month and I check on it regularly, but I don’t get as excited about Groundfloor as other brokers. However, I think it’s a good way to diversify your portfolio with a few hundred bucks and think it’s great for people who aren’t as lazy with investing as me.
Check out Groundfloor and consult your budget to see if it might be a good fit for your desires. Please make sure you are in the proper financial situation to invest before making any sudden decisions. Think about it. And if you like it, please use this link and we’ll both get $10 to invest!