I got back into Groundfloor because they gave me $20.00 I know I said I was cutting ties with the real estate lending marketplace, but they had a pretty good offer for new referrals that got me to add some more money to the platform. The offer was that both me and the one I referred would get $20.00 each if they signed up and invested at least $10.00.
The previous reason I was pulling back from investing more capital on the platform was due to what I perceived as poor communication and a low level of due diligence conducted by Groundfloor. The question you are probably wondering is, was I wrong? I do not think I was “wrong” I mean it is an opinion and I still believe that Groundfloor has an opportunity to improve greatly in those two areas.
My heartburn was mostly due to a lack of communication on Groundfloor’s part. I still feel like they are slow to post updates and I believe this is mainly due to the size of their portfolio of loans. There are so many loans (LROs) available on the site that I am sure they do not have a staff large enough to keep up with all of them.
I use another similar site called Fund That Flip (FTF) that although has a smaller number of opportunities available they are extremely diligent and I feel like they have set the standard when it comes to due diligence and communication. In fact I have seen several of my investments go full circle on FTF and I have never once been left wondering what is going on.
Back to Groundfloor. I did find a couple opportunities on the platform that I felt were pretty solid investments. The rate of return was in my sweet spot and the term of the LRO was in line with what I was looking for. Now when I look at a LRO on the marketplace I do some searching and look at who the principle borrower is and I do some google work on those individuals. I found once individual who was previously under federal investigation. I reached out to Groundfloor to see what the deal was. They (surprisingly) were well aware of the investigation and were able to confirm my findings. There was nothing behind the accusations and the individual had been cleared of any wrongdoing.
I found another one that looked promising and did some digging on the guy. He was a former military officer who from what I could find has a business related to real estate and I saw enough reviews and there was enough information that gave me a good feeling about the potential for getting paid back.
My two problem loans have continued to be problems, but one of them is currently in closing and hopefully will be paid back soon. As usual the estimated closing date has come and gone and I have no word from Groundfloor in regards to the status. I reached out to them and they gave me the standard answer of the closing has not been completed but it should be done soon. I have bought and sold several houses and I understand that there are issues that creep up and can cause a delay.
So that is why I got back into Groundfloor, because they gave me $20.00. Hopefully one of my loans will be closing out soon I will probably roll those funds over into more LROs. I will keep you updated with what is going on with them.
Thanks for reading. If you would like to sign up for Groundfloor and get started investing in real estate loans for as little as $10.00 click here.