GROUNDFLOOR Crowdfunding Site

38 Replies

@Andrea Savikas... thank you. That looks promising too.  I really enjoy the opportunity to invest in homes and sort of make the USA better one home at a time. I think this real estate crowdfunding has the opportunity to fix a problem that has been annoying one for a while.. a glut of homes that need extensive repair and not a ton of people who want to do it. (mostly from the baby boomer generation moving to new housing / assisted living).

I am a consumer of some the Groundfloor loans.  

As far as statements, administrative clarity:  I give GF good marks.  I always know where I stand.

Availability of private loans:  they clearly have more 'buyers' than borrowers.  (hint !) Loans are often funded very fast. 

Quality of loans:   The concerns expressed above are noted and in many cases I agree but ... I think this can be made into an opportunity.  Dig into your due diligence on the offering page.  While not copiously garnished with data there is enough to red flag (maybe) half the loans.  

Stick to basics:  where is the property, what are the comps (my own comps), who is the borrower / rehabber... etc.  

No-one needs to tell you to spread your risk.  Avoid the ones that look weird.  

I landed here hoping to find a group of rehabbers using GF actually.  Maybe I need to look further.  

I used GF a year ago to finish a rehab. I already owned the property and was getting tight in funds to finish 6 rehabs that I had been doing simultaneously. I used this one property as collateral to finish all 6. 

It was a pretty low loan - 30K and their appraisal came in at 159K - so low risk. The weird thing is (and I emailed several people and asked why - no answer) that they told me that the appraisal had come in at 159K, but when they advertised the loan they wrote it as ARV being 79K. Maybe they felt that a 30K loan for a 159K house just seemed too unrealistic?

Overall, it funded in 3 weeks. Actually it funded to me before it was offered openly to investors. So, I guess they pre-fund some or all loans. Payouts worked well and I am satisfied. 

Am thinking of using them on another refi that I want to start, but should probably wait until I have 3 refis completed, as them pulling my credit report now might lower my score and might hurt my refis. 

Just had my 2nd experience with GF and am very disappointed. 

Was trying to re-renovate (was torn apart a couple of years ago) a property that I've owned free and clear for a few years. 

Right now the neighborhood is super hot and values have been jumping. ARV value for 4/2 would be 130-150K. So, let's be conservate: 130K. I own the property, so there's no mortage. GF has now a minimum of 75K per loan (they didn't have that when I used them a year ago) and I was looking for 43K for rehabbing this house.

I suggested that I'd be happy to take the 75K and use the additional funds to renovate 2 other properties next door. We've been working on this for a week and they just came back, telling me that they won't do that unless I'll allow them to put liens on the other 2 properties as well. No Way! For one thing, 1 of the other properties is part of a small credit line that I have and the other one I'd want to refi after I finished. Same with this first one. 

Makes no sense to me. I already own the property, so they don't have to fund the purchase price. I'm not pushing high on the LTV ratio - 75K would be 57%, if I used conservative ARV of 130K.

So, they cut off their nose to spite their face. In the big picture, the risk is still low, because I would have renovated this house first, before I touched the other houses, so, they would have been in at around 45K with a house worth at least 130K. 

To me that's stupidity. Last year they kept asking me to please let them do more loans for me, because they liked what I do with combining my various properties into creative communities. I certainly won't try them again. 

@David Fuller & @Jim Groves

GroundFloor  it is very easy to use and I have had over 11% returns for two years.

  @Saul L. , the site your referenced had old data, Ian's data was from an article from 2014, Groundfloor currently supports all 50 States, unfortunately I don't think he's keeping up with every platforms updates (that would be hard), I have used his matrix data many times but did notice any issues. I emailed him with a link to the correct data hopefully it will be updated soon.   

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Used Groundfloor a year ago to refinance one of our rehabs. It was a smooth and fair process and I loved not having to make any payments until the end of the loan. The draws worked well, although it opened my eyes to the poor job my contractor was doing. I would use them again to get loans. No experience lending to them, though.

Like @Michaela G. my borrower experience has been mixed as well.  They seem geared towards getting the loan started, but the service level drops once things get going.  They don't seem to regard Borrowers as important stakeholders.  In fact, there's not a single person dedicated to the Borrower.  Instead, they are Asset Managers looking after loans.  The result is poor borrower experience, so I wouldn't expect good borrowers/investors to do much more than @Michaela G and myself, test 'em out and find it's not good enough.

Originally posted by @Rick Baggenstoss :

Like @Michaela G.my borrower experience has been mixed as well.  They seem geared towards getting the loan started, but the service level drops once things get going.  They don't seem to regard Borrowers as important stakeholders.  In fact, there's not a single person dedicated to the Borrower.  Instead, they are Asset Managers looking after loans.  The result is poor borrower experience, so I wouldn't expect good borrowers/investors to do much more than @Michaela G and myself, test 'em out and find it's not good enough.

I agree, that they should pay more attention to their borrowers , as they are the ones that be the ones effecting GFs success or failure. 

I think its probably like airbnb. Once a company gets big they need to have a formula and then any personal consideration is out the window. Airbnb is grappling with that as they make more money from the guests and thus see the hosts as unimportant. Have heard of many longterm hosts that are feeling unfairly treated.

And thats how you cut off your nose to spite your face.

@Boone Kincaid No offense, but I don't think Groundfloor is prepared to change their culture anytime soon.   Unfortunately, my borrower experiences have been really aggravating -- a price too high to pay for working with your company.  I'm sure plenty of investors will be enticed by your marketing and sales pitches, but I doubt many good investors will be repeat customers.

PS _ I have spoken with and had several email exchanges with Rich Pulido, SVP, so my some of my bad experience was with one of your senior leaders.  

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