Non-accredited and accredited investors in all 50 states can now participate in real estate crowdfunding investment opportunities with Groundfloor.
Groundfloor, the first issuer qualified by the U.S. Securities & Exchange Commission to offer real estate debt investments via Regulation A that are available to non-accredited investors, today announced that it has received qualification as an issuer under Tier 2 of Regulation A. The qualification allows more than 150 million additional investors to access real estate investment opportunities that have been previously unavailable to them, tripling Groundfloor’s addressable market.
Real estate investment demand has surged in recent years as more people look to diversify their portfolios and participate in the strong annual returns of this asset class. Historically, however, most real estate investment opportunities not structured as a fund have been restricted to accredited investors. Groundfloor has transformed this once restrictive opportunity to provide anyone with the access to short-term, high-yield returns with a minimum investment of as little as $10 with no fees or middlemen. Typical loans return six to 14 per cent annually on a six to 12-month term.
“Since our first pilot offering in 2014, Groundfloor has innovated with technology and securities law to challenge a financial system in which all investors’ dollars are not equal,” said Brian Dally, co-founder and chief executive officer, Groundfloor. “Today, with this qualification, the playing field for real estate investing is now level, nationwide.”
The company also announced that it has filed a preliminary offering circular to offer equity in an online public offering also under Regulation A. Potential investors may make indications of interest by invitation only. Interested investors can register for an account at http://www.groundfloor.com.
In 2017, Groundfloor saw tremendous growth of more than 380 per cent in origination volume and 786 per cent in revenue, prior to announcing a partnership with its first institutional investor, Direct Access Capital (DAC). Groundfloor lends in 27 states, has self-originated more than $50 million in loans for 398 real estate projects earning individual investor portfolios average annualized returns of 11.74 per cent to date. Groundfloor has also raised $9.1M in venture capital from leading fintech VCs and angel investors.