I wanted to share my experience with a product I've used for a couple of years called Groundfloor. (
https://www.groundfloor.us/) Share some real numbers and if it's something that interests you, give you some data to see if it's right for you.
Full disclosure, I am friends with the CEO, which is how I found out about them so early on and part of the reason I had such faith in it being a good investment for me. This post is more about the hard data that I've returned, but if you have any questions about the company or process, feel free to ask. Anything I don't know, I can get him involved to see if he can provide some answers.
Repaid InvestmentsRepaid Principal: $3900 (blended across 7 different investments, starting on 3/31/14)
Repaid Earnings: $630
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$4530 ~16% Return
Open InvestmentsTotal in Open Investments: $2100 (blended across 2 different investments)
Projected Earnings: $332
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$2432 ~16% Return
I currently also have $1220 committed to an investment that will be closing in the coming weeks. Expected to return 23.8% ($290).
There are different term loans. I've done both 12 and 6 month lengths. All except one has been paid back on time. The one that has not been paid back on time, I've heard a lot of communication from the builder and am getting much more frequent updates as he works to get the project closed in the next couple of months. In the meantime, I continue earning 12% interest on it.
Up to the last couple of months, it's only been available to invest in GA. Recently, a new structure to how they run the investments has allowed to them to comply with a different set of laws that has opened investment opportunities to more of the states.
The kicker for me is: I wanted to be involved in real estate investment but at this point in my life, I don't have the geographic stability or means to be buying and flipping or renting things myself. This has provided me an easy way to get involved in real estate without so much upfront investment.
Hopefully this data has been intriguing to you in some way. Let me know if you have any questions.
http://blog.groundfloor.us/nov2015/ - the article and questions here are helpful for understanding more.