Groundfloor now offers accredited-level fractionalized loans to non-accredited investors

August 26, 2019

Groundfloor, a real estate investment facilitator, has recently announced a new feature to its platform that it claims is one of the first for the industry. Now, the "wealthtech" company is providing non-accredited investors access to frantionalized real estate loans to allow them to manage better with less risk, something that was previously only available to investors who were accredited. 

These “split loans” are available to both small investors and institutions alike, says Groundfloor. This new feature also allows Groundfloor to originate bigger loans for its borrowers.

Groundfloor CEO and Co-Founder Brian Dally says that since launching 6 years ago they have been on a mission to “open private capital markets to everyone.”

“Introducing Split Loans underscores how serious we are about our mission. This first-to-market innovation provides even more flexibility, choice, and control to diversify with access to a broader range of investment opportunities across the spectrum of risk and reward in private real estate lending,” Dally claims.

Currently, Groundfloor provides real estate loans to developers for a max amount of $2 million. The company expects that by providing split loans, they will now be able to pursue other types of real estate projects more aggressively, and thus scale more rapidly.

Read more here

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August 26, 2019

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