Groundfloor this week launched Groundfloor 3.0. Derived from a decade of insights from more than 230,000 investors, Groundfloor 3.0 is designed for mass market investors seeking exposure to private market real estate.
“The alternative investments industry has scaled to the point where it’s now possible to offer automatic diversification,” said Groundfloor co-founder and CEO Brian Dally. “Fractional real estate investing is coming to the masses, offering a consistency of returns that isn’t available in public markets, in an asset class that people know and trust. That’s why we’re excited to launch Groundfloor 3.0. People want to adopt alternative investments, and the combination of our scale and technology makes it easier than ever before.”
Groundfloor 3.0 offers a mobile-first experience, providing an interface to create cash flows that beat REIT dividends by 10X in as little as three months, Groundfloor claimed in a release. The system immediately allocates invested dollars across all investment opportunities on the platform in increments as low as $1. Investors get the benefit of mirroring the performance of Groundfloor’s overall portfolio. No prior real estate investing knowledge is required since investments are automatically disbursed across 50-100 projects at a time.
“REITs are overdue for a big disruption, at the same scale and for the same reasons that active stock and bond funds have lost to ETFs and index funds,” added Dally. “Groundfloor 3.0 is the new easy button for real estate investing. By giving investors an automated way to take full control over their cash returns and liquidity, our technology enables everyone to escape the REIT fund trap and reap the rewards of being their own fund manager.”
Investors who want to customize their Groundfloor portfolio can opt to use their existing Groundfloor investor accounts. These traditional accounts will continue to offer tools to select investments based on risk tolerance across products including LROs, Notes, and Labs.
Groundfloor 3.0 features include a minimum $100 start and $1 minimum allocations. Repaid investments can be automatically reinvested and diversified across as many as 100 deals at a time.
The average time to first repayment is five days. The Cash Target feature lets investors pause reinvestments until a desired level of cash is reached for withdrawal.