Reporters discuss bombshell story on Better.com’s CEO

An exclusive interview with the Forbes reporters who recently wrote a bombshell article about Better.com CEO Vishal Garg’s controversial workplace culture.

Now is the time to double down on diversity and inclusion efforts

Quicken Loans Mortgage Services is proud to partner with a diverse set of brokers, which broadens the pool of potential clients they serve together.

How to Accelerate Closings in 2021

In this webinar, we’ll provide you with actionable insights to help you accelerate your closing process from point-of-sale through post-closing.

Why are sellers sitting on the housing market sidelines?

Why aren’t more homeowners selling in this hot housing market? According to new research from Zillow, a number of factors are at play.

InvestmentsMortgagePolitics & MoneyReal Estate

Real estate lending platform Groundfloor raises $3 million through crowdfunding

Sees annual revenue double in Q2

Groundfloor, a real estate lending platform that raises its loan funds via crowdfunding from the public, announced Wednesday it raised $3 million from 1,580 investors, while also doubling its annual revenue in the second quarter of 2019.

The latest capital raise builds the company’s total fundraising to $18.3 million, Groundfloor said.

It also showcases the possibility afforded by its unusual fundraising model.

Groundfloor bills itself as a “real estate crowdfunding platform that is open to non-accredited investors,” meaning that anyone is able to invest in residential real estate using the company’s platform.

It says it is the only company qualified by the Securities and Exchange Commission to offer direct real estate-based debt investments to non-accredited and accredited investors.

The company says its mission is to level the playing field in private capital markets, a goal it says it has recently met by achieving 20% ownership by individual investors, 3,160 of whom now own shares.

The Atlanta-based company then takes its crowdfunded money and lends it to residential real estate investors, specializing in lending for single-family or small multifamily home rehab and renovation loans and also providing access to short-term, high-yield returns.

In Q2, Groundfloor saw its revenue increase 139% and its number of closed loans jump 160% to more than 1,000, the company said. It did $22.4 million in retail investment volume and paid $13.2 million in principal and interest to investors, who saw an average 10.54% return.

“Our customers are showing the world how open private capital markets work in very practical terms,” said Groundfloor Co-founder and CEO Brian Dally. “We’re seeing strong growth in every metric, from loan applications to the growing base of investors who want to take advantage of our high-yield, short-term investments for as little as $10. And unlike the vast majority of growth-stage startups, we’re proud that the capital fueling our growth right now is coming from our customers, not Sand Hill Road.”

Most Popular Articles

The downside of the hot 2020 housing market: rapid home-price growth

The mismatch in the COVID deflationary impact toward the economy overall and the strength of the housing market due to demographics makes for a troubling formula for home-price growth, which we are seeing. The recent NAR existing home sales report showed 15.5% year-over-year growth in prices. HW+ Premium Content

Nov 30, 2020 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please