GROUNDFLOOR Unveils Automatic Investing, Making It Easier than Ever to Diversify over Time
GROUNDFLOOR, a wealthtech platform that allows everyone to build wealth through real estate, is announcing a highly anticipated new feature that makes it easier than ever for investors of all levels to keep their money working while diversifying their portfolios automatically, over time. Auto Investing is now available to all of GROUNDFLOOR’s registered investors, who need only $10 to begin investing fractionally in the dozens of real estate projects GROUNDFLOOR offers each week. The feature comes as growth of the wealthtech platform continues to accelerate. In March, GROUNDFLOOR set a record for its most loan originations ever as well as closing the month with an 88 percent year-over-year increase in retail investment volume.
As the name suggests, Auto Investing enables investors to allocate specific dollar amounts that will automatically fund projects that match their predetermined level of risk. For example, if an investor allocates $10 toward loans designated Grade A and Grade B (more conservative loans that typically yield 6-9% on an annualized basis), the funds in that investor’s account will immediately apply $10 toward each Grade A and Grade B project, until funds are no longer available in their account. This benefits the investor by ensuring they don’t miss out on a relevant investment opportunity, without having to log in and invest manually. Investors will have an opportunity to cancel investments as they normally would. Furthermore, since GROUNDFLOOR’s loans typically mature in a 6-12 month timeframe, the investor can rest assured that any principal and interest repaid to their account will be automatically invested into future loans, leading to greater diversification across the quantity and vintages of loans in which they’ve invested.
Founded in 2013 by Brian Dally and Nick Bhargava, GROUNDFLOOR was the very first company qualified by the Securities and Exchange Commission to offer debt based real estate loans to investors via Regulation A. In creating a new category with a completely new type of alternative investment product, GROUNDFLOOR designed its platform to be simple to use for both new and experienced investors. For those who actively manage their investments, GROUNDFLOOR provides an industry-leading level of disclosure and regulatory oversight. For those who may be new to real estate investing, GROUNDFLOOR designed a color-coded, proprietary loan grading system that’s ranked from Grade A to Grade F, with Grade A being the most conservative. The new Auto Investing feature is advantageous for all, as more experienced investors may choose to allocate more funds across the full spectrum of grades, and newer investors could elect to invest as little as $10 across more conservative categories.
“Our $10 minimum investment leads the industry as an intentionally low barrier to diversification within alternative investments,” said Dally. “With GROUNDFLOOR Auto Investing, our software continuously diversifies for you to minimize cash drag — with zero fees. Time-starved investors shouldn’t be forced into giving up control to outmoded, high-cost, actively managed funds such as eREITs that lock up your money, under-invest it, and charge penalties to withdraw it.”
The Auto Investing rollout is the latest in a series of new initiatives from GROUNDFLOOR. In recent months, the company announced a new program to spur more accessory dwelling unit development, as well as the Loan100 program to provide financing for up to 100 percent of total project costs for highly qualified borrowers. GROUNDFLOOR also recently announced that its investments have yielded an average annualized return of 10.42% in 2020 and 10.5% since inception, which is 3-4% higher than 2020 returns publicly reported by leading eREITs. Fees and “cash drag,” the effect of earning zero returns on cash balances held by a fund or an investor awaiting investment, significantly reduce investor returns.
For more information on Auto Investing or to open a GROUNDFLOOR account, visit GROUNDFLOOR.com.
Founded in 2013, GROUNDFLOOR is an award-winning wealthtech platform that allows everyone to build wealth through real estate. 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. Headquartered in Atlanta, GROUNDFLOOR has won numerous awards for its rapid growth and innovation including the Inc 500 and Deloitte’s Technology Fast 500. To date, GROUNDFLOOR has raised $26.8 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 26 percent customer-owned.