Doorvest vs Groundfloor Comparison

Assess their risks, liquidity, investments, returns, timeframes and other terms

Invest in single-family homes

Invest in real estate loans

14,000 visits/month 100 search keywords
129,000 visits/month 2,000 search keywords

Investments
$56,000

The minimum investment on Doorvest is a 25% down payment on a home, averaging $56,250 based on the average home price of $225,000.

Investments
$10

Groundfloor enables individuals to begin investing in real estate with a minimal initial requirement of only $10.


Moderate Risk
3/5

Investing with Doorvest involves risks such as market volatility, economic changes, and property-specific issues. While the platform aims to manage these effectively, outcomes can be uncertain, and investors should carefully consider their risk tolerance and conduct due diligence before investing.

Moderate Risk
3/5

Investing on Groundfloor involves credit risk from borrower default, market risk due to real estate market fluctuations, liquidity risk as investments are tied up until loan maturity without a secondary market for early exit, regulatory risk from changes in laws affecting real estate and crowdfunding, and platform risk related to operational disruptions or cybersecurity threats.


Minimum Liquidity
1/5

Doorvest allows investors to sell their homes back to the platform, requiring them to connect with a client partner for more information on the process.

Minimum Liquidity
1/5

On Groundfloor, liquidity is tied to the term of the real estate loans, which range from 6 to 18 months. Investors' funds are committed until the loan matures and the borrower repays.

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High Return
18 %

Doorvest reports an average annual investment return of 18%, accounting for rental income, property appreciation, and mortgage leveraging.

Moderate Return
10.72 %

Groundfloor's loans are graded from A to G, with interest rates ranging from 5.5% to 25.5% annually, based on risk. A diversified portfolio across all repaid loans to date would have earned a 10.72% annualized net return.


Long-term Investment
5-30 years

Doorvest focuses on long-term investments in single-family rentals, generally suggesting a commitment of several years to decades, based on real estate appreciation and rental income.

Short-term Investment
6+ months

Groundfloor investments have loan terms ranging from 6 to 18 months.


Who can invest
United States

To invest with Doorvest, you need to be in the U.S. or able to sign documents at a U.S. Embassy.

Who can invest
International

Groundfloor is accessible to investors both in the US and internationally. However, for non-US investors, a minimum transfer-in amount of $5,000 is required.


Moderate Volatility
3/5

Real estate assets on Doorvest can experience volatility due to economic shifts, interest rate changes, and local market trends, potentially affecting investment values and posing risks for short-term investors.

Moderate Volatility
3/5

The assets on Groundfloor, which are short-term real estate loans, generally exhibit lower volatility compared to stocks, as their value is more closely tied to specific real estate projects and less to daily market swings.


Regulation and audits
TREC Regulated

Doorvest complies with the Texas Real Estate Commission (TREC) consumer protection notice, indicating adherence to state-level real estate transaction standards. It does not provide details on broader financial regulations or audits, focusing more on real estate industry compliance than securities regulation.

Regulation and audits
SEC Regulated

Groundfloor offers securities under Regulation A of the Securities Act of 1933, allowing it to sell securities to residents in states where it's qualified or announced its intent under Regulation A's Tier 1 or Tier 2.


Insurance
Yes

Doorvest protects rental investments with homeowner's insurance, covering physical structure damage and potentially extending to personal belongings and medical expenses. This coverage is a mortgage lender requirement, safeguarding against various damages, though investors should be aware of any coverage limitations.

Insurance
No

Investments on Groundfloor are not insured by any government agency such as the FDIC or SIPC, nor are they guaranteed by Groundfloor. This means investors fully assume the risk of borrower default or project failure, without any insurance safety net.


Payouts
Rental Income

Doorvest offers rental income as returns to investors, bolstered by a Rent Guarantee that includes vacancy and non-payment protection for the first three months, with an option to extend up to 12 months. Additionally, a Renovation Guarantee covers repair costs for the first year of ownership.

Payouts
Interest

Groundfloor pays interest on funded loans. Interest accrues from the investment date until the loan is repaid. Loans may have monthly or deferred payment terms, with monthly interest payments processed once a month and lump sum repayments for deferred loans.


Withdrawals

To get their money back, Doorvest investors need to sell their property, with the timeline depending on market conditions and the sale process. The process is initiated through Doorvest, and funds are received after the property is sold and the transaction is completed.

Withdrawals

Investors on Groundfloor get their money back, including principal and accrued interest, once the borrower repays the loan, typically within 6 to 18 months. Repayments are processed within 7 days, with funds made available in the investor's dashboard for withdrawal or reinvestment.


Extra Fees
Yes

Doorvest employs a fee model, deriving revenue from a portion of the monthly rental income and margins on home sales, always at fair market value.

Extra Fees
No

Investors on Groundfloor pay no fees. Instead, borrowers are charged an underwriting fee by Groundfloor, ranging from 2% to 4.5% of the loan's principal amount.


Taxes
Tax Form

Doorvest facilitates tax compliance by providing investors with all necessary documentation for tax filing, related to real estate investment income and expenses.

Taxes
Tax Form

Groundfloor provides tax support by issuing a 1099-INT form for interest income over $10, a 1099-B for principal losses, and a 1099-MISC for promotional credits over $600.

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