Is your idea of planning for the future investing or saving? Are you looking for a simple way to invest small amounts and grow your money gradually? Well, we have some good news for you.
We know that savings accounts aren’t always the best option and that investing can be scary.
Moreover, saving and investing don’t always go hand in hand. Unless you are a risk-taker, you should first start saving before you invest any of your hard-earned money.
Whether you are a beginner or a veteran investor, it’s also important to keep an eye out for better opportunities as well as potential pitfalls.
If you’re willing to try something new, consider this platform. Your returns can be much higher than any bank could offer. The platform even has a new name for saving and investing: “savesting.” Are you ready to start savesting today? Welcome to the club!
Meet your new app
Groundfloor is a real estate lending and investing platform for individual investors that allows anyone to participate (with as little as $10) in loans for fix-and-flip deals, residential real estate projects, buy-and-hold properties, and others.
The platform has been around since 2013. So far, its users have made more than 2 million individual investments.
How does it work?
If you’re looking to make short-term lending investments, Groundfloor will connect you with people in need of short-term loans to fund their real estate projects.
You will be repaid with interest, typically making returns of between 6% and 14%. Your exact return will be determined by the risk grade of the loan. Once you get your money back, you can either reinvest it or withdraw it to your bank account. While the investments are typically of six to 12 months, they could be shorter or longer.
For their part, borrowers benefit from greater flexibility and speed in accessing loans ($75,000 to $1 million at rates as low as 5.5%) than any traditional bank out there can offer them. It is, without a doubt, a win-win situation.
Who is Groundfloor for?
Groundfloor is an excellent option for non-accredited investors who can stomach more risk in the pursuit of higher returns. It is not for anyone with a low risk tolerance or people looking to buy a home or a car or pay off student debt in a few months.
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This online marketplace is the only platform allowing non-accredited investors to invest in real estate projects rather than REITs (real estate investment trusts).
The process is pretty straightforward, even if you’re a beginner investor. To get started on Groundfloor, follow these steps:
- Set up a Groundfloor account.
- Link a designated account and fund your Groundfloor account.
- Explore the summary page of loans in the process of funding.
- Pick a project to invest in.
You must fund the loan for your chosen project within 45 days.
There you have it! Whether you’re looking to invest or save, Groundfloor makes it as easy as can be.