Groundfloor swells its lending capital by $100 million

By David Tuckwell on Tuesday 12 September 2017

Alternative Lending

Real estate P2P set to grow its loan books

Real estate crowdfunder Groundfloor has agreed to a $100 million facility with Direct Access Capital.  

Real estate peer-to-peer lender Groundfloor has shaken hands with Texas-based finance company Direct Access Capital, which has agreed in principle to buy up to $100 million worth of loans off its books.

Groundfloor, which connects real estate investors with property developers via its website, hopes to triple its revenue growth as a result of the agreement.

“This new purchasing relationship will increase Groundfloor’s lending capacity for borrowers seeking larger loans and help the company to offer new investment products with a variety of repayment options,” Groundfloor said in a statement.

Groundfloor provides loans of up to $2,000,000 to developers looking to “fix-and-flip” houses. Typical available interest rates range from 6 percent to 14 percent on terms of 6 to 12 months.

For investors, the company runs one of the only platforms allowed by the Securities and Exchange Commission to sell private real estate debt to non-accredited investors.

“Groundfloor has demonstrated the potential for hyper-growth while… originating a quality debt product,” said Noah Martin, chief investment officer, Direct Access Capital.

Groundfloor lends in 27 states and has raised $8.5 million in venture capital from fintech investors. 

Sign up for our newsletters


Your daily 7am download of all things alternative finance and fintech.

Fintech and alternative finance headlines with an exclusive Editor's Note each week. Delivered Monday at midday.