Following its initial quarterly rate review real estate marketplace lender GROUNDFLOOR has announced rate cuts of between 10 and 50 basis points. The cuts will save borrowers an average of $500 and $2,500 per loan and will take effect in 45 to 90 days. Starting rates will soon be 5.9 percent.
The cuts come at a time of strong growth for the company. During the quarter the average time to fund a GROUNDFLOOR loan was less than five hours. February’s loan total was more than $600,000 and March’s $1.2 million.
GROUND FLOOR investors have earned more than $1.7 million, an average return of 13.7 percent.
“The laws of supply and demand are alive and well in peer-to-peer lending,” GROUNDFLOOR CEO and Co-Founder Brian Dally said. “With thousands clamoring to earn the outsized yields offered by investing in our loans, it’s great to put money back in the pockets of real-estate entrepreneurs who make the opportunity possible.”
GROUNDFLOOR has aimed to differentiate itself from the beginning, Co-Founder and EVP of Regulatory Affairs Nick Bhargava said.
“Three years ago, we dared to envision how we could bring the highest risk adjusted yields to self-directed retail investors, while simultaneously providing the lowest possible rates to borrowers. Dozens of startups claim disruption when all they are doing is using the web to hawk the same financial products, for the benefit of the same accredited investors and institutions.”
“For us, that never was and never will be good enough. Our unique offering under Regulation A+ delivers a real challenge to the status quo. Today’s rate cut is an opening salvo.”