Groundfloor: Fractional real estate platform

About

Groundfloor lends money to people renovating houses across the United States, then lets you fund small pieces of those loans. A loan typically runs 6 to 18 months and pays 8% to 14% interest. You pick individual loans from $10 each, or buy a Groundfloor Note, which is a fixed-term IOU from the company itself paying a set rate for one, three or twelve months. Either way you earn interest, not rent, and you never own a share of a building. What you legally hold on a loan is a Limited Recourse Obligation, a security issued by Groundfloor Finance Inc that pays you your share of whatever the borrower actually repays. Groundfloor holds a lien on the property, so if the borrower defaults it can foreclose and return what it recovers, minus collection costs. The company does not guarantee repayment or its timing. There is no market to sell a loan early, so you wait until the borrower repays. Groundfloor charges investors nothing on loans or Notes and makes its money from borrower fees. Its managed Flywheel Portfolio, which spread one investment across hundreds of loans for a 1% fee, closed to new money on 7 July 2026 and a successor credit portfolio is planned.