Groundfloor Review
Founded 2013 · Atlanta, GA
3.8
Editor Rating
Groundfloor is a unique lending platform that crowdfunds fix-and-flip loans from individual investors, enabling competitive rates for borrowers. A good option for flippers looking for an alternative to traditional hard money.
Editor's Take
Groundfloor occupies a unique niche — their crowdfunding model connects borrowers with individual investors, creating a different dynamic than institutional lenders. The main advantages are no prepayment penalties (rare for hard money) and accessibility for first-time flippers. The trade-off is higher origination fees and a lower max loan amount. Best for smaller flips where you want the flexibility to sell quickly without penalty.
— Bill Rice, 30+ year mortgage lending veteran
Groundfloor Review: The Full Breakdown
Groundfloor works differently from every other lender on this list, and the difference is baked into its founding. It was started in 2013 in Raleigh — later moving to Atlanta — by Brian Dally and Nick Bhargava, the latter a co-author of the JOBS Act, the law that opened up investment crowdfunding. In 2015 Groundfloor became the first company the SEC qualified (under Regulation A+) to offer real-estate debt investments to everyday, non-accredited investors.
That's the model: instead of funding loans off a Wall Street credit line, Groundfloor raises the capital from thousands of retail investors who buy into the loans for yield. By its tenth anniversary in 2023, the company reported surpassing $1 billion in total retail investment volume. So the same platform serves two audiences — flippers who need short-term capital, and small investors who want to lend it.
For a borrower, Groundfloor is a source of fix-and-flip and short-term renovation financing with a tech-forward, transparent process. The crowdfunded model can mean a different rhythm than a balance-sheet lender, and pricing should be compared head-to-head with the hard-money options here. Confirm current rates and terms for your project before committing.
Pros & Cons
Pros
- No prepayment penalties — sell early without penalty
- Works with first-time flippers
- Low minimum credit score (600)
- Transparent pricing and terms
- Lower minimum loan amount
Cons
- Not available in all states
- Higher origination fees (2–4 points)
- Max loan amount lower than competitors ($1M)
- Crowdfunding model can mean variable availability
Loan Products Offered
Eligible Property Types
Best For
Compare Groundfloor
Groundfloor Review: Frequently Asked Questions
Is Groundfloor a legitimate lender?
Groundfloor is an established lender founded in 2013 and headquartered in Atlanta, GA. It operates in select states and specializes in fix-and-flip loans and hard money loans. To verify it for yourself, confirm Groundfloor's current NMLS registration and state licensing, check its Better Business Bureau (BBB) profile and reviews, and compare written quotes before you apply.
What are the pros and cons of Groundfloor?
Pros: No prepayment penalties — sell early without penalty; Works with first-time flippers; Low minimum credit score (600). Cons: Not available in all states; Higher origination fees (2–4 points); Max loan amount lower than competitors ($1M).
What credit score do you need for Groundfloor?
Groundfloor's published minimum credit score is 600. A higher score generally unlocks better rates and higher leverage. Requirements vary by loan program and are subject to change.
What rates and fees does Groundfloor charge?
Groundfloor's rates run approximately 7.5%–14% with origination fees of 2–4 points, on loans from $75K to $1M (up to 75% LTV). All figures are approximate and subject to change — request a written quote for your scenario.
Can you close with Groundfloor in an LLC?
Yes. Groundfloor allows investors to take title in an LLC, which many use for liability protection and cleaner portfolio organization.
How fast can Groundfloor close a loan?
Groundfloor typically closes in 14–21 days, depending on the loan program, the property, and how quickly you provide documentation.
Disclaimer: Rates, terms, and requirements shown are approximate and based on publicly available information as of March 2026. Actual terms may vary based on your credit profile, property details, and market conditions. Always verify current terms directly with the lender before making financing decisions. ProInvestorHub provides editorial reviews for educational purposes and does not guarantee loan approval or specific terms.