Groundfloor broadens investor access

By Ryan Weeks on Tuesday 9 January 2018

Alternative Lending

Real estate lender opens doors to non-accredited investors from all 50 states.

Few lending platforms in the US are able to accept investment from both accredited and non-accredited investors. Groundfloor can now do so in all 50 states.

The real estate lender, founded in 2013 by Brian Dally and Nick Bhargava, has long been at the forefront Regulation A – allowing it to offer investments to non-accredited investors. Today, the company announces that it has received qualification from the SEC as an issuer under Tier 2 of the Regulation A rules. This enables the platform to open to an additional 150 million investors across the US – which it says triples its addressable market.

“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, chief executive officer of Groundfloor. “Today, with this qualification, the playing field for real estate investing is now level, nationwide.”

Groundfloor’s typical loan carries a 6 to 12 month term, with returns of 6-14 per cent annually. Its minimum investment stands at just $10.

Further to its qualification, the company has filed a preliminary offering circular to offer equity investments online, again under Regulation A rules. But potential investors for this product may make indications of interest by invitation only.

Groundfloor claims to have enjoyed 380 per cent growth in origination volumes and 786 per cent revenue growth in 2017 – a year which also saw it strike its first institutional investment deal (a $100m facility with Direct Access Capital). 

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