Groundfloor Avaliações 

I am writing this review after a full audit of my Groundfloor LRO activity from 2021 to 2026. My goal is to provide a factual account of my experience for anyone considering this platform as a "safe" real estate investment.

I made a total of 93 LRO investments across various states and credit grades (A–E). At the time of my investment, the platform’s marketing suggested low single-digit default rates and protected principal via sub-80% loan-to-value (LTV) ratios. My actual results have been the opposite:

24% Default Rate: Out of my 93 investments, nearly a quarter went into default. This occurred despite my attempts to diversify across different borrowers and geographic regions.

Persistent Unpaid Loans: Five years into this journey, 8 loans remain unpaid with no clear resolution in sight. These were originally marketed as short-term (6–18 month) obligations.

Misleading Valuations/LTVs: I recently received a final repayment on a loan that was y3 full years past its due date. Despite being marketed with a 70% LTV against the appraisal, I recovered only 50 cents on the dollar of my principal. For a 70% LTV loan to return a 50% loss, the original appraisal provided to investors appears, in my view, to have been fundamentally disconnected from the property's actual market value.

Net Performance: While most loans were eventually repaid, many involved varying losses of principal. When factoring in these losses and the years of frozen liquidity, the risk-adjusted return has been significantly worse than a standard high-yield savings account or a total market index fund.

In my experience, the "protection" advertised through appraisals and LTVs did not manifest in the actual recovery process. I am sharing this so other investors can understand the high probability of principal loss and the potential for capital to be locked up for half a decade. Approach with extreme caution.

Final comment: They don't get one star because in my early years with Groundfloor, I also invested in 12 of their 1-yr Notes and these were all repaid on time and as advertised. It was the poor investment results from the LROs that made me give up on Groundfloor as an investing option.

As an edit based on Groundfloor's response to my post, their comment is misleading. 24% of the totality of LRO's I invested in went into default. Some were eventually paid back at a loss. The percent in default stands today at 100% and it's been 100% in default for quite some time. Yes, I stopped investing in LROs years ago when I realized significant loss was almost certain. Now, I don't really anticipate seeing much if any of the principle returned. Loss of principle is a risk in any investment. That's what I experienced and simply sharing the data about my Groundfloor investing experience. Groundfloor gets paid their slice upfront and it's hard to say what, if anything, motivates them to recover defaulted loans but protecting customer investments does not appear to be a priority. Groundfloor, for me, has just been a stupendously poor investment choice and the chance that I would invest more money in anything this company offers is 0%.

BUYER BEWARE. Don't plan on getting all your money out. Many loans go to default and drag on for years. Only invest money you can afford to lose.

Many loans are in default. May never recoup full investment.

Company is a scam! They finance loans and crowd fund for the probable default! Flat out legally taking the investors money invested! Have lost thousands so far, will be losing much more!

This company has regrettably transformed into a fraudulent operation. Approximately three years ago, they were transparent; however, they have since redesigned their website to conceal information from customers. Their legal representatives have proven incapable of resolving the issues. Surprisingly, the investments Groundfloor has made in properties are being sold without repaying Groundfloor. While individuals may choose to risk their money, I am currently experiencing a 35% loss on my investment with them.

In Groundfloor. Look for Andy Levison. I was looking for funding to develop my properties and possibly buy new houses for tear down for reconstruction. I reached out to so many lenders but were frustrated with their high level of documentation and requirements. I went online to research about lenders that are willing to bypass bureaucratic processes and approve funding for my projects. I came across Groundfloor and was introduced to Andy Levison. He is such an amazing man and most importantly was deeply committed in ensuring that that l get funded even when l had issues in pulling my credit from credit agencies he believed in me until we closed on the contract and get funded for $1.2m. That was my first transaction with Groundfloor. I also have closed a second transaction of $659,000 and about closing the 3rd transaction of $1.3m. I am really grateful to Groundfloor especially Andy Levison and his team that believes in me despite challenges. I strongly recommend Andy Levison when dealing with Groundfloor. He will never give up on you.

They don't pay out from bad investments, pay pennies on the dollar, don't respond to emails, lost a ton of money with these guys. Buyer be aware! They invest in high risk RE developers.

I haven't seen anything bad like some of these reviews, although I am not investing $100k, I am investing between $3,000 and $5,000 this year on Groundfloor. So if I can get 7%-9% returns that's good enough for me, obviously this is an investment and it might not yield high results (let's be real). I have also experienced this on Stash, Arrived and other products claiming high yields, just make sure your investments are diversified people.

The customer service has been great as I've had multiple emails from the customer service team. I was also invited to a company webinar to learn more (nice touch).

And lastly, I love the design, it feels very modern and I like the app.

This app is a total 100% scam. I've been trying to get my money out for 2 years! Complete scam. Do not invest or use this app!

First thing I will point out is that, when you deposit money in your account it gets invested IMMEDIATELY into loans. They don't really warn you about this but it caught me by surprise. I figured I would deposit funds into my account first and then decide how to utilize it at my own pace. I put $100,000 into the Auto Investor product and got about 10% returns in the first couple months pay back on several loans. After about a year, I noticed the paybacks stopped and upon checking, about 20% of the loans are in default. That's quite a high rate and indicates that the loans are rather poor quality. I guess since it's not Groundfloor's own money, they are potentially more willing to underwrite higher risk loans. After all, they make money originating loans and not on interest. It's been about 2 years now and I've collected about $4,000 in interest but have $20,000 stuck in bad loans... so overall net NEGATIVE $16,000 with no idea when those loans will be repaid. At this point, I rather get my money back even if I don't get paid any interest on that $20,000 that was invested. NOT RECOMMENDED.

I started investing with Groundfloor in 2021 and returns have been very underwhelming. Despite advertising that investors can get 10+ percent returns, my actual returns have been MUCH less that that - probably on the order of ~5 percent. I felt I could have done better with much less hassle simply putting the funds in a high yield money market account. As others have mentioned, way too many of their properties go into default and foreclosure (how is Groundfloor screening these borrowers?), meaning that the investor doesn't even receive all their invested capital back and to add insult - has to wait multiple YEARS in some cases beyond the projected payout date to get anything back. The cruel reality of investing in this platform is that even when you select good properties, in many cases you don't get to enjoy receiving the 10+ percent interest for the entire projected timeframe of the loan because the successful borrowers tend to finish their rehab projects and pay off the loan early - meaning as an investor you have to go and try to find another property to get a 10 percent return. Over time you your portfolio gets overweighted with dogs in default and foreclosure. In the past on multiple occasions I have tried to reach out to Groundfloor to get clarification / resolution to these issues but I have found their responses vague and unhelpful. I'm currently unwinding my positions with Groundfloor - which will probably take a couple more years :(

I made a $1000.00 investment for my spouse during a promotion. Both of our accounts were credited the $200.00 referal bonuses. It took 60 days, and the bonuses must be reinvested. That was clearly stated. I had questions, and had return calls sheduled with Eric. He called at the time requested and provided clear and thorough answers. I would suggest placing your funds in Groundfloor's flywheel program.

Groundfloor is a complete scam, I invested money in February 2025. I started earning small amounts right away $1-$20 so I continued on investing monthly. Then I noticed that my account balance never went up. According to Groundfloor I had earned $193, but I couldn’t find that money anywhere in my account. It was almost impossible to get in touch with them, but when I did they told me it was a glitch, they are fixing it and I had earned only $5. I believed them and left my money in. Now it’s months later and Groundfloor has told me that I have earned more than $500, but once again it’s not reflected in my account. And now I want to withdraw my investment but they will not let me until some magical day in the future, a date they don’t know. I want my money and I want them shut down.

Not worth the hype , The pay is absolutely poor, View the use instead of given at the top

A full 85% of my remaining LRO investments are in foreclosure or multiple extensions beyond a year.
They seem to be doing this to make it appear the loan default rate is far lower than it actually is.
Run, run, run from any investment with Groundfloor.

After a nice roll, my last three LROs have been in default for more than two years, FINALLY went to foreclosure, no updates since February. Investor has them on the market but too high given their unfinished or still shell conditions. Patience is running thin. Yes, I understood it was risky, but there seems to be a passive at best approach by the asset management team to bring this to a conclusion.

Very disappointed with this company. Terrible customer service. Its all fluff they claim you will earn 9-14% on your investment. I realize all investment carries a risk, however other investments you can pull your money out if it's not performing.
I have earned 1.37% on my $1000.00 that's been repaid. I imagine I will be waiting up to 3 yrs to fully withdraw my investment. I am very grateful I didn't invest more.
Avoid Groundfloor.

Update 8/23/25: Groundfloor - thank you for responding to my review - almost 8 months later. You asked how I reach the conclusion that Groundfloor loans are high risk, while I thought it obvious based on my initial review, I'm happy to clarify:

Of my Groundfloor loans that are closed/completed:
Only 1/3 of loans performed as advertised. 2/3 of closed loans either were extended with significantly lower return, or defaulted with losses.
To put it in perspective- of the total closed loans, expected/advertised interest was 10.8%, but the actual return is 6.6% (note this is lower than when I did the initial review as a result of more losses coming in).
Of the remaining open loans, worth 23% of the total funds I transferred to and invested with groundfloor, 100% (that is ONE-HUNDRED PERCENT) are in default, they are between 1 to 5+ years past expected/advertised maturity date. And when they finally are closed out, most are closed out with losses (= negative earnings).
Finally I have no control over this process, 5 years past maturity and Im still waiting for loans to be closed out.

All in all, this equals high risk in my book. Hence why I referred to Groundfloor loans as High Risk.

Below is my initial review.

If you want to invest in groundfloor the following may be helpful for you to know and be aware of:

1. Arm yourself with lots of patience, your money will not be returned to you when originally expected. A large percentage of loans are delayed or enter default, and YEARS after original maturity date - many loans are still not settled/paid out (if they are paid out at all).
2. Understand that - despite being backed by real estate - these are high risk investments, any loan promising 10%+, carries high risk of default.
3. Expect that the total return will be far less than expected. This is due to the many loans entering delays and defaults. Out of my 1340 loans which have been repaid/settled to date, the expected rate of return was 10.8%, BUT actual rate is 7.4%. This does not reflect the 166 loans still outstanding, which are almost all in default and years past maturity date. When all loans are settled/repaid - years from now, i expect the actual rate to be significantly less than the 7.4%. I figure I will be lucky to breakeven. And that does not reflect inflation or opportunity costs.
4. My personal time horizon: I began investing in groundfloor in 2019, I used the automated investment features. In 2023 I stopped reinvesting and began pulling my money out as it became available. I expect it will be years before last 166 loans are settled. The longest loan in default so far is about 5 years past expected maturity date.
5. All in all, Groundfloor is not for me. It sounded good, I originally thought my principal would be relatively safe as it was backed by real-estate, but despite the rather small loans sizes and diversification- that is not the case. The current realized returns (and I don't even know the impact of all the remaining defaulted loans yet) are not worth the hassle, the inflation hits, the lost opportunity costs, the years of delay, or lack of control over my funds. I find I am making better diversified investments with MUCH better and safer total returns, within my regular brokerage account. Groundfloor was an experiment, one I will not repeat.

Stay away from this company, it is almost impossible to make a profit on your investment with Groundfloor. They will lure you to keep adding money just to frustrate you when it is time to withdraw and eventually steal it .i have noted a substitute comp high up on my display pic with a profitable high return experience.i hope this review helps someone

easy to set up and it will take a little bit to understand BUT I spend $100 and the system spread my money around and I actually made a few $$ already. Great App and company