This Groundfloor review looks at Groundfloor Finance LLC — a real estate crowdfunding platform that gives everyday investors, including non-accredited investors, the ability to invest in short-term, high-yield real estate loans. With as little as $10, you can fund a portion of a loan to a real estate developer or house flipper and earn interest when the loan is repaid.
Unlike traditional real estate investing, you don’t need to own or manage physical property. Instead, you’re acting as the lender, earning interest rates often ranging from 7% to 14%. In this Groundfloor review, we’ll break down exactly how it works, why investors love it, and the risks you should consider.
How Groundfloor Works (Groundfloor Review Overview)
In this Groundfloor review here’s an overview of how it works. Groundfloor works by connecting everyday investors with real estate developers who need short-term funding for renovation or construction projects. Developers apply for loans through the platform, which are then reviewed, underwritten, and assigned a risk grade from A to G — with higher grades generally offering lower returns and lower risk, and lower grades offering higher returns with greater risk.
As an investor, you can browse available projects, choose which loans to fund starting with as little as $10, and earn interest when the borrower repays the loan. Most loan terms range from 6 to 12 months, making it a relatively short commitment compared to traditional real estate investments.
1. Developers Apply for Loans – Real estate developers submit loan requests to Groundfloor for funding on short-term renovation or construction projects.
2. Groundfloor Reviews and Grades the Loan – Each loan is given a grade (A–G) based on risk, with interest rates adjusted accordingly.
3. Investors Choose Their Loans – You can browse available loans and invest as little as $10 per project.
4. Earn Returns When the Project Sells or Refinances – Once the loan is repaid, you get back your principal plus interest.
“Success in real estate starts when you believe you are worthy of it.”
– Michael Ferrara
Groundfloor Review: Why Investors Love It
1. Low Minimum Investment
With a starting point of just $10 per loan, Groundfloor is one of the most accessible real estate investment platforms on the market.
2. High-Yield Potential
Loans typically pay between 7%–14% annualized returns, making it a great option for those seeking higher yields than traditional savings accounts or bonds.
3. Open to Non-Accredited Investors
Most real estate crowdfunding platforms require you to be an accredited investor. Groundfloor welcomes everyone.
4. Short-Term Commitments
Loan terms are often 6–12 months, allowing you to reinvest your money faster compared to long-term REITs.
Risks to Consider
Like all investments, Groundfloor isn’t risk-free.
- Borrower Default – If a developer fails to repay, it could result in delayed or reduced returns.
- Market Fluctuations – Property values can affect repayment timelines.
- Liquidity – Your money is tied up until the loan is repaid; there’s no early withdrawal.
Risks to Consider in This Groundfloor Review
Like all investments, Groundfloor isn’t risk-free.
- Borrower Default – If a developer fails to repay, it could result in delayed or reduced returns.
- Market Fluctuations – Property values can affect repayment timelines.
- Liquidity – Your money is tied up until the loan is repaid; there’s no early withdrawal.
Tips for Maximizing Returns on Groundfloor
- Reinvest Earnings – Use repayments to fund new loans and compound your returns.
- Diversify – Spread your money across multiple loans instead of putting it all in one.
- Pay Attention to Loan Grades – Lower grades have higher interest but also higher risk.
Groundfloor vs. Traditional Real Estate Investing
| Feature | Groundfloor | Buying a Rental Property |
|---|
| Minimum Investment | $10 | Often $50,000 |
| Time Commitment | Very Low | High |
| Property Management | None | Required |
| Liquidity | 6–12 Months | Years |
| Passive Income | Yes | Yes |
Final Verdict: Groundfloor Review 2025
If you’re looking for a low-barrier, high-yield way to invest in real estate without owning property, Groundfloor is worth considering. The ability to start with just $10 and diversify across many short-term loans makes it ideal for new and experienced investors alike similar to that of Ark7 .
While risks exist, especially with borrower defaults, careful loan selection and diversification can help mitigate them. For investors seeking steady passive income and faster capital turnover, Groundfloor is one of the best real estate crowdfunding options in 2025.
