GROUNDFLOOR Lowers Fees And Announces New Lending Initiatives

GROUNDFLOOR, the award-winning wealthtech platform that allows everyone to build wealth through real estate, is rolling out a series of initiatives to meet the growing demand for residential real estate investment capital and opportunities to supply it. Since the onset of the pandemic, GROUNDFLOOR has continued to experience record-breaking growth from retail investors who want to diversify their portfolios with short-term, high yield real estate investments. Now, as lending ramps back to pre-pandemic levels, the wealthtech platform is leveraging that supply of capital by dramatically increasing access to capital for experienced real estate entrepreneurs.

“The early COVID-19 liquidity crunch obliterated all institutional lending in the residential fix and flip and rental property space. While most lenders were frozen, GROUNDFLOOR was able to continue lending through the economic uncertainty thanks to our unique capital structure,” said co-founder and CEO Brian Dally. “This year has proven that capital sourced from mass market investors is more reliable. Now we’re demonstrating that it’s also more powerful and flexible as well.”

The new lending initiatives from GROUNDFLOOR include:

The Loan 100 Program – Available only to the most experienced borrowers in GROUNDFLOOR’s network, the Loan 100 product provides financing for up to 100% of total project costs, including purchase and renovation (i.e. up to 100% Loan-to-Cost). This program allows developers with an extensive and proven track record to borrow funds for their projects with 0% down.

Reduced Origination Fees and Interest Rates: For the first time since 2017, GROUNDFLOOR is reducing fees and interest rates in order to support borrowers who are faced with increasing pressure on their profit margins. The reduced fees include a decrease of 1% across the board and of up to 1.5% off origination fees for qualifying borrowers. This ability to reduce fees is a direct result of GROUNDFLOOR’s increased capacity to finance larger-balance loans, along with efficiencies gained by the cumulative impact of leveraging proprietary technology to streamline loan processing capacity.

Full Lending Operations to 30 States: After intentionally pulling back on its lending footprint to manage risk and assess local market conditions impacted by the pandemic, GROUNDFLOOR strategically limited its lending operations to fewer states. The wealthtech platform has now expanded to resume its lending programs with deferred payment options and zero interest reserves across 30 states.

New Construction Loans in NC and GA: With increasing demand for residential new construction projects and limited financing options for small to mid-sized builders, GROUNDFLOOR is offering highly flexible new construction loans with non-recourse financing and attractive interest on disbursement terms for qualified builders.

Through the aforementioned initiatives, GROUNDFLOOR continues to focus on increasing access to flexible capital for independent real estate entrepreneurs throughout the country, while also increasing the inventory of high-yield, short-term real estate projects for its investors.

GROUNDFLOOR also continues to be recognized amongst industry leaders for its innovation in lending. This week, GROUNDFLOOR was recognized as the Best Lending Platform amongst financial services companies in the sixth annual Benzinga Global Fintech Awards. Earlier this year, GROUNDFLOOR made its debut onto the prestigious Inc. 5000 list and was listed in the top 10 percent overall at no. 402 with three-year revenue growth of 1,141 percent. The company ranked as the fastest growing financial services company in Georgia and 22nd amongst all financial services companies nationwide.


Founded in 2013, GROUNDFLOOR opens private capital markets to all. GROUNDFLOOR was the first company qualified by the U.S. Securities & Exchange Commission to offer direct real estate debt investments via Regulation A for non-accredited and accredited investors alike. Today, it remains the only product offering everyone the ability to build fully customizable real estate debt portfolios for short-term, high-yield returns. The company is headquartered in Atlanta and has raised $23.7 million in equity capital from a variety of sources, including venture capital and online public equity offerings. As of its most recent round of financing, the company is 23 percent customer-owned.

Media Contact:

Hela Sheth

[email protected]