Invest in real estate loans
Invest in startups
Investments
$10
Groundfloor enables individuals to begin investing in real estate with a minimal initial requirement of only $10.
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.
High Risk
4/5
Investing on Republic involves significant risks such as the potential total loss of investment, illiquidity, long-term commitment without guaranteed returns, risk of dilution, limited information on investments, and possible impacts from regulatory changes.
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.
Minimum Liquidity
1/5
Investments on Republic are generally illiquid, meaning it may be difficult to sell or convert them into cash quickly.
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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.
Not Predictable Return
N/P
Returns on Republic depend on the success of invested projects, companies, or funds, with potential payouts varying by investment terms.
Short-term Investment
6+ months
Groundfloor investments have loan terms ranging from 6 to 18 months.
Long-term Investment
3-10 years
Investments on Republic typically have a long-term horizon, often requiring several years to over a decade before potential returns are realized.
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.
Who can invest
International
Anyone 18 or older can invest on Republic, with specific eligibility and investment limits varying by campaign. International investors can participate in many offerings, subject to local laws and specific campaign terms.
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.
Moderate Volatility
3/5
Assets on Republic, like startups and private ventures, exhibit high volatility due to factors like market sentiment, regulatory changes, and business uncertainties. Valuation changes can be sudden and significant, reflecting the inherent risks and potential rewards of these types of investments.
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.
Regulation and audits
SEC Regulated
Republic operates under SEC regulations like Reg CF, Reg A+, and Reg D, ensuring transparency and investor protection. Companies on Republic must adhere to disclosure and, in some cases, undergo financial audits or reviews.
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.
Insurance
No
Investments on Republic are not covered by traditional insurances or state guarantees like FDIC protection.
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.
Payouts
No Recurring Payouts
Dividends on Republic are not standard across all investments and depend on the specific agreement with each company. Some investments may offer dividends through revenue-sharing arrangements, but many startups prioritize reinvestment over distributing earnings.
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.
Withdrawals
On Republic, returns mainly come from liquidity events like acquisitions or IPOs, but these are uncertain and can take years. Selling shares directly is typically not possible within the first year due to federal restrictions, with few exceptions. Even after this period, the resale market is limited and subject to legal considerations.
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.
Extra Fees
Yes
Republic charges an administrative fee for investment commitments, typically 2%, with a minimum of $5 and a maximum of $300, varying by offering. This fee is refunded if an offering is canceled or withdrawn but not if the investor cancels their commitment.
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.
Taxes
Annual Statement
Republic does not provide tax documents or specific tax guidance for investments. Tax implications, such as for Crowd SAFE and Token DPA investments, depend on the investment's nature and liquidity events.