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.