Groundfloor Lending Review
Thinking about a new property, but tired of endless burocracy? Groundfloor Lending might be exactly what you need. They’ve been financing real estate investors since 2013, offering everything from fix-and-flip loans to new construction financing with closing times as quick as 7 days.
What makes Groundfloor Lending different is how they’ve streamlined the entire borrowing process. No tax returns or bank statements required – they focus on your property’s value and your experience instead of making you submit a mountain of paperwork.
With APR starting at 9.99% and loan amounts from $75,000 to $2.5 million, they’re funding deals that traditional banks often won’t touch.
But is Groundfloor Lending actually your best option in 2025? The Financer team has spent years analyzing real estate financing options, and we’ll compare Groundfloor loans conditions to understand if they make financial sense for your next real estate project or if you should be looking elsewhere.
Do We Recommend Groundfloor Lending?
Yes, we recommend Groundfloor as a trustworthy company. Skip to our full review below and see in details the Groundfloor review.
How We Rate Groundfloor Lending
| Category | Rating |
|---|---|
| Affordability | ⭐⭐⭐ |
| Application process | ⭐⭐⭐⭐⭐ |
| Loan terms | ⭐⭐⭐⭐ |
| Transparency | ⭐⭐⭐⭐ |
| Customer support | ⭐⭐⭐⭐ |
| Overall | ⭐⭐⭐⭐ |
Affordability – Interest rates start at 9.99% with origination fees of 2.75-4%, which is competitive for hard money but more expensive than traditional bank financing.
Application process – Streamlined 10-minute application with no tax returns or bank statements required; decisions in 24 hours.
Loan terms – Flexible options from 6-18 months with true deferred payments; up to 100% financing available for experienced borrowers.
Transparency – Clear fee structure with upfront disclosure of $495 application fee and $1,250 closing costs; no hidden prepayment penalties.
Customer support – One dedicated point of contact throughout the loan process, but some borrowers report communication delays during busy periods.
What is Groundfloor Lending and How Does it Work?
Groundfloor Lending is a hard money lender that provides short-term financing for real estate investors. Founded in 2013, they specialize in funding fix-and-flip projects, renovations, and new construction with loan amounts ranging from $75,000 to $2.5 million.
The application process is remarkably straightforward. You can apply online in about 10 minutes without submitting tax returns or bank statements. Groundfloor issues preliminary approval decisions within 24 hours and can close loans in as little as 7 days—a major advantage when you’re competing for deals in hot markets.
Groundfloor evaluation
Unlike traditional banks that focus heavily on your personal finances, Groundfloor primarily evaluates the property itself and your experience level as an investor.
What sets Groundfloor’s lending approach apart is their flexible terms. Loans typically run 6-18 months with interest rates starting at 9.99%. For experienced borrowers, they offer up to 100% financing of both purchase and renovation costs—something traditional lenders simply won’t do.
Their deferred payment option lets you make no monthly payments during the loan term, instead paying all interest at the end when you sell or refinance the property.
To a fully comprehension about Groundfloor Lending, take a look at its main informations:
| Characteristic | Groundfloor Lending |
|---|---|
| Loan amounts | $75,000 to $2.5 million |
| APR range | Starting at 9.99% |
| Loan terms | 6-18 months |
| Available loan categories | Fix & Flip, New Constructions, Bridge and DSCR |
| Fees | Application fee: $495, Origination fees: 2.75-4%, Closing costs: $1,250 |
| Application process | 10-minute online application; no tax returns or bank statements required |
| Approval timeline | Decision within 24 hours |
| Prepayment Penalties | None |
| Property Types | Single-family, multi-family, commercial |
Groundfloor Lending Options
Let’s explore the main lending products Groundfloor offer:
Fix & Flip Loans
Groundfloor’s most popular loan product helps real estate investors purchase and renovate properties with the intention of selling them for profit.
How it works: Borrowers receive funding for both property acquisition and renovation costs in a single loan. The loans feature a flexible draw schedule that matches renovation timelines, allowing borrowers to access renovation funds as needed.
- Loans up to 100% of project costs;
- Interest rates starting at 9.99%;
- Up to 70% loan-to-after-repair-value (LTARV);
- 6-18 month terms;
- No prepayment penalties;
- True deferred payments – no payments until loan repays.
Single loan simplicity: Combines purchase and renovation in one loan;
Fast funding: Closings in as little as 7 days;
No income verification: Qualification based on property value and experience;
Flexible draw schedule: Access funds as renovation progresses.
Pros
Higher interest rates: Rates typically higher than traditional bank financing;
Short repayment window: 6-18 month terms require quick execution;
Experience requirements: Five-year lookback on experience preferred.
Cons
Bridge Loans
Bridge loans provide strategic transition funding for real estate investors who need to close on a new property before selling an existing one.
How it works: These short-term loans provide interim financing to “bridge” the gap between property transactions, allowing investors to move quickly on new opportunities without waiting for existing properties to sell.
- Up to 24-month terms;
- Competitive interest rates;
- Up to 75% LTV;
- Interest-only payments;
- No prepayment penalties.
Flexible timeline: Longer terms provide breathing room for transition;
Cash flow management: Interest-only payments reduce carrying costs;
Quick closings: Fast funding for time-sensitive opportunities;
Clear exit strategy: Designed specifically for transitional periods.
Pros
Higher costs: More expensive than conventional financing;
Exit risk: Requires solid plan for repayment through sale or refinance;
Qualification requirements: Clear exit strategy needed for approval.
Cons
DSCR Loans
Debt Service Coverage Ratio (DSCR) loans allow investors to qualify based on a property’s income rather than personal finances, making them ideal for building rental portfolios.
How it works: These loans evaluate the property’s ability to generate sufficient income to cover debt payments, rather than focusing on the borrower’s personal income.
- 30-year fixed rates;
- No tax returns needed;
- Up to 80% LTV;
- Property income qualifies for the loan.
Portfolio scaling: Easier qualification for multiple investment properties;
No income documentation: No need for tax returns or W-2s;
Long-term stability: 30-year fixed rates provide payment predictability
Business separation: Keeps investments separate from personal finances.
Pros
Higher rates: Typically higher than owner-occupied financing;
Income requirements: Property must generate sufficient rental income;
Minimum DSCR: Usually requires at least 1.1 DSCR (income must be 110% of expenses);
Down payment: Typically requires 20% down payment.
Cons
New Construction Loans
For developers building new properties from the ground up, Groundfloor offers specialized construction financing with structured draws.
How it works: These loans finance the entire construction process from foundation to final inspection, with disbursements tied to construction milestones.
- Interest only on disbursed funds;
- Origination fees financed into the loan;
- 2nd lien assistance for down payment;
- Five-year lookback on experience;
- Payments deferred until payoff;
- Loans up to $2.5 Million.
Construction expertise: Underwriting tailored to new construction projects;
Flexible draw schedule: Funds released as construction progresses;
Interest savings: Pay interest only on disbursed amounts;
Deferred payments: No payments until project completion.
Pros
Experience requirements: Proven builder experience typically required;
Down payment: Usually requires 15% down payment;
Documentation: Detailed construction plans and specifications needed;
Exit strategy: Clear plan for sale or refinance required.
Cons
How to Sign Up at Groundfloor
Ready to start investing in real estate loans or get financing for your next property project? Getting started with Groundfloor is refreshingly simple. Here’s exactly how to create your account and begin using their services in just a few minutes.
Creating your account
Steps
Visit the Groundfloor Website
Start by heading to Groundfloor website. Then, click on “Get Funded” to access Groundfloor’s online application. This button is located in the upper-right corner of your screen.
Fill Out the Form
Fill out the form with your basic personal information, such as name, e-mail adress and phone number. Double check all the informations before submiting.
Receive Preliminary Approval
Within 24 hours, Groundfloor’s team reviews your experience level and property details to determine if they’ll fund your project. You’ll receive initial terms including your potential loan amount and interest rate. At this point, Groundfloor assigns you a dedicated loan officer who will be your single point of contact throughout the process.
Property Evaluation
Submit detailed photos of the property or arrange for an inspection. You’ll need to provide your renovation budget with line-item costs and your project timeline. Groundfloor conducts their own valuation of the property in its current state and projected after-repair value to finalize your loan terms.
Final Approval and Documentation
After evaluating your property and project plan, Groundfloor prepares official loan documents for you to review and sign. You’ll need to submit proof of insurance for the property and pay the origination fee, which ranges from 2.75% to 4% of your total loan amount depending on your experience and project specifics.
Loan Closing
Your loan can close in as little as 7 days from initial application. You’ll pay the costs, and Groundfloor will disburse the funds for your property purchase. During this stage, you’ll also establish your renovation draw schedule based on your project timeline.
Renovation Draws
As you complete phases of your renovation, submit documentation showing the completed work. Groundfloor will inspect the progress, usually within 24-48 hours, and release the corresponding portion of your renovation budget. Most draws are processed and funded within 3 business days after inspection.
One of Groundfloor’s key advantages is that they offer true deferred payment loans, meaning you make no monthly payments during the loan term. When you sell the property or refinance with a traditional lender, you repay the principal plus all accumulated interest. There are no prepayment penalties if you complete your project ahead of schedule.
See how simple is to sign up at Groundfloor? All the process can be made in 10 minutes and there is no paperwork mountain required.
Groundfloor App
Groundfloor app provides real estate investors with a streamlined way to manage their loans and construction projects from anywhere.
Available for both iOS and Android devices, Groundfloor app lets borrowers track their loan status, submit draw requests, and monitor project timelines without having to log into the desktop site.
Groundfloor Rating
Groundfloor boasts a 4.5-star rating out of 5 on the App Store, with nearly 900 reviews. On the Play Store, it holds a 4.3-star rating based on over 500 user reviews.
The app’s intuitive interface makes it simple to upload renovation progress photos directly from your smartphone, which can significantly speed up the draw request process. When you’re ready to request funds for completed work, you can also submit all required documentation through the app rather than dealing with emails or paperwork.
For borrowers juggling multiple properties, the dashboard provides a comprehensive overview of all your active Groundfloor loans, including upcoming deadlines, disbursement schedules, and remaining funds available. Groundfloor app sends push notifications about important updates such as approved draws, inspection scheduling, and loan term reminders.
While the app doesn’t yet support the initial loan application process (you’ll still need to use the website for that), it handles nearly every other aspect of the borrower experience. This mobile functionality gives Groundfloor an edge over many traditional hard money lenders that rely on more complicated communication methods for project management.
Groundfloor Investing
While we’ve covered Groundfloor’s lending side extensively, it’s worth noting that the platform offers an impressive investment opportunity as well. Groundfloor’s investment arm lets everyday people like you and me participate in real estate financing without needing deep pockets or industry connections.
What makes Groundfloor unique in the investment space is that they’ve created a way for non-accredited investors (regular folks) to access real estate debt investments that were previously only available to the wealthy or institutional investors.
A good opportunity
Since 2013, Groundfloor investors have enjoyed average annual returns of approximately 10%, significantly outperforming many traditional investment options.
We won’t fully cover the investment side, but since you may willing to deal with Groundfloor, is worthy to know how this segment of the company works. Here it is:
Real estate developers need money to buy and renovate properties and Groundfloor funds these loans and offers portions to investors (this is problably the part you’re aiming to). So, those investors can start with as little as $10 in these loans. When borrowers repay with interest, investors get their share.
In summary, Groundfloor creates a connection between investors and people needing money to their real state.
The company has structured their investment products to fit different investor needs:
- Flywheel Portfolio: The easiest entry point with $100 minimum, automatically diversified across hundreds of loans.
- Individual LROs: For hands-on investors who want to pick specific properties, starting at just $10.
- Groundfloor Notes: Short-term options (30-day, 90-day, 12-month) with fixed returns, $1,000 minimum.
The beauty of Groundfloor’s investment model is its accessibility. Over 250,000 registered investors have collectively invested more than $1.6 billion through the platform, proving its popularity among everyday investors seeking real estate exposure.
What’s particularly attractive is the short-term nature of these investments. Unlike traditional real estate that might tie up your money for years, most Groundfloor investments mature in 6-18 months, providing relatively quick returns.
Is Groundfloor Legit?
If you’ve come to this far, maybe you’re wondering “Is Groundfloor Legit?” The short answer is yes! Groundfloor is absolutely legit. Founded in 2013, the company has established a solid track record over more than a decade in business.
From a regulatory standpoint, Groundfloor operates with proper oversight. They were the first company qualified by the Securities and Exchange Commission (SEC) to offer real estate debt investments via Regulation A for non-accredited investors. This regulatory approval provides an important layer of consumer protection and legitimacy.
Looking at user experiences, Groundfloor maintains strong ratings across platforms:
- 4.3 out of 5 stars on Google Play Store from 500+ reviews
- 4.6 out of 5 stars on Apple App Store with 890 ratings
- B+ rating from the Better Business Bureau
The company’s historical performance speaks for itself as well. Since its creation, Groundfloor has maintained average returns of approximately 10% for investors, with a principal loss ratio of less than 1%. This consistency over multiple market cycles demonstrates their risk management capabilities.
For borrowers, Groundfloor provides transparent loan terms with competitive rates starting at 9.99%, clear fee structures, and flexible payment options. Their ability to close loans quickly (often in as little as 7 days) makes them a reliable funding source for real estate projects.
If you’re seeking a loan with competitive rates or a real estate investment platform with a proven track record, Groundfloor offers a legitimate option backed by regulatory approval, strong user reviews, and consistent historical performance.
Groundfloor FAQ
Is Groundfloor Legit?
Yes, Groundfloor is a legitimate hard money lender founded in 2013 that has funded over $1 billion in real estate loans across 39 states. They’re regulated by the Securities and Exchange Commission and have maintained a B+ rating with the Better Business Bureau. Their lending platform is transparent about rates starting at 9.99%, with borrowers receiving full funding in as little as 7 days, making them a reliable option for real estate investors seeking quick capital for fix-and-flip projects.
How Does Groundfloor Compare to Other Real Estate Lending Platforms?
Groundfloor distinguishes itself from competitors by offering up to 100% financing for both purchase and renovation costs to experienced borrowers, while most hard money lenders cap at 70-80%. Their true deferred payment option eliminates monthly payments during the loan term, unlike most lenders who require regular interest payments. Groundfloor’s application process requires no tax returns or bank statements, and they can close loans in 7 days compared to the industry average of 2-3 weeks.
Is Groundfloor Available in All States?
No, Groundfloor currently provides lending services in 39 states plus Washington D.C., leaving 11 states where they don’t operate. Their coverage exceeds many competitors who typically serve 15-20 states. Eligibility is property-based rather than borrower-location based, so investors can be approved if their project is in a covered state. Groundfloor focuses on areas with favorable foreclosure laws and has been gradually expanding their geographical footprint each year.
How Does Groundfloor Verify Borrowers?
Groundfloor focuses primarily on the property’s value and the investor’s experience rather than traditional credit metrics. They verify borrowers through a 10-minute online application without requiring tax returns or bank statements. Their team evaluates renovation experience by reviewing previous projects, assesses property potential through their valuation models, and conducts background checks to ensure borrowers have no recent foreclosures or bankruptcies, making their verification process significantly faster than traditional lenders.
What Happens if a Groundfloor Borrower Can’t Repay?
If a borrower defaults, Groundfloor first attempts to work out a payment plan or loan modification. Should that fail, they initiate foreclosure proceedings, which take 3-9 months depending on state laws. Unlike traditional lenders, Groundfloor often offers borrowers the option to deed the property directly to them to avoid foreclosure costs. Their loan-to-value ratios (typically 65-75% of after-repair value) provide a buffer that helps protect against losses in default situations.
What Is the Minimum Loan Term on Groundfloor?
Groundfloor’s minimum loan term is 6 months, with maximum terms extending to 18 months for most projects. Their short-term lending model is designed specifically for fix-and-flip investors and renovation projects with quick turnarounds. There are no prepayment penalties, so borrowers can repay early without additional fees once their project is complete. Most borrowers utilize the loans for approximately 9-12 months, with the deferred payment structure eliminating monthly obligations during the renovation period.
