On Monday during the Money2020 conference, real estate lending marketplace Groundfloor introduced three new tools that expand peer-to-peer real estate lending. These tools enable quick comparison of loans, automated investing and in-depth analysis of loan grading factors.
Since announcing its historic qualification by the SEC on August 31st, Groundfloor has tripled daily investing volume and sold out every loan originally listed. Lender demand exceeded loan supply, despite lender participation being limited to an invite-only basis while loan inventory builds. This week, Groundfloor will introduce three times the volume of loans available to investors. With 15 new loans in seven states available, Groundfloor will begin inviting more investors to join in. Everyone awaiting an invitation as of October 28th will receive one.
Co-founder & CEO of Groundfloor, Brian Dally, declared:
“The alternative lending industry has caught fire, but many are wondering, what happened to the other P in P-to-P? In an industry increasingly dominated by institutions, we’re opening the door for self-directed retail investors to earn short-term, high-yield returns backed by real estate. If you like LendingClub or Prosper, you’re going to love Groundfloor.”
As part of the LaunchPad 360 session on the main stage of the Money20/20 conference, Dally and Software VP Chris Schmitt demonstrated the new tools, including:
- Automated Investing: Allows investors to select the amount they want to invest each month, the recurring date to initiate the funds transfer and the percentage allocated to each loan grade on GROUNDFLOOR. It’s the first automated tool available in P-to-P real estate lending, allowing investors to diversify their portfolio without manually checking for opportunities on a daily or weekly basis. Investors will be able to view a dashboard of their automatic investments and simply add, modify or delete to tailor their portfolio.
- Quick Loan Comparison and In-Depth Analysis: With new loans being added regularly, investors will be able to take advantage of a loan comparison tool that stacks loans side by side for quick review. Investors can use the tool to shortcut the manual process of reviewing and selecting loans one by one.
Paired with a new in-depth analysis view, investors can assess and diversify their investments with more control than ever before. Every loan detail page now displays a standardized dashboard of loan grading factors, including underlying data sources for enthusiasts who want to dig into the details.
Groundfloor also announced a new promotion at Money20/20. Investors who fund their account and invest at least $2,500 will receive a deposit of $100 on top, yielding up to an additional four percent right out of the gate, before their first loan has repaid.
Nick Bhargava, co-founder and EVP of regulatory affairs at Groundfloor, added:
“Our team has worked tirelessly to introduce tools and loans that simply have not been available to self-directed investors before. Today we’re opening up even more of a $70 billion market in private real estate lending, and we’re bullish about expanding further in the months ahead.”