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. 

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