Invest in real estate loans
Invest in exclusive collectibles
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 Timeless involves risks such as market volatility, liquidity constraints, regulatory changes, and asset-specific issues like authenticity. Additionally, platform-related risks such as data security and operational stability could affect investments. These factors highlight the importance of thorough risk assessment and consideration of personal risk tolerance before investing in collectibles through Timeless.
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.
Moderate Liquidity
2/5
While traditional collectible investments are illiquid, Timeless offers a level of liquidity by enabling trading among investors during the average holding period of 2 to 8 years. However, liquidity is influenced by demand within the platform and the collective decision to sell the asset.
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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.
High Return
40 %
Timeless cannot guarantee returns as the collectibles market is unpredictable. However, historical data shows an average annual return of 40% on their platform, with returns ranging from 9.1% to 93.1% per year. Investors should note that past performance is not indicative of future results.
Short-term Investment
6+ months
Groundfloor investments have loan terms ranging from 6 to 18 months.
Long-term Investment
2-8 years
The typical investment time horizon on Timeless ranges from 2 to 8 years, varying by asset class. During this period, investors can trade shares for liquidity before a collective decision is made to sell the asset, subject to majority approval.
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
European Union
To invest with Timeless, individuals must be at least 18 years old, possess a valid ID card or passport, have a SEPA bank account, and not be taxable outside the EU. Additionally, they must have a permanent residence. Importantly, US citizens and US taxpayers are excluded from using Timeless's services due to SEC restrictions and the implications of the FACTA, which targets tax evasion by US citizens abroad.
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
The assets on Timeless, being exclusive collectibles, are subject to inherent volatility due to factors like fluctuating market demand, the rarity and exclusivity of items, condition and authenticity concerns, and broader economic and cultural trends. These factors can lead to significant price swings, making the value of collectibles unpredictable over short periods. While Timeless carefully selects collectibles with high potential for appreciation, investors should be mindful of this volatility and how it aligns with their investment goals and risk tolerance.
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
BaFin Regulated
Timeless is registered with the German Federal Financial Supervisory Authority (BaFin) as a contractually bound intermediary of CONCEDUS GmbH, under register number 80174023. This indicates regulatory compliance and oversight by BaFin in its operations.
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
Yes
Timeless stores collectibles in a secured German facility with insurance coverage, though it's crucial to note that not all damages, such as those from force majeure, may be covered. Additionally, there's no guarantee of compensation for losses, as there are no guarantee funds or deposit insurance for investors. This points to a risk of partial or complete value loss in certain scenarios.
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
Timeless does not provide traditional dividends. Instead, investors gain returns from the appreciation of collectibles, realized when these assets are sold for a higher value than their purchase price. Profits from such sales are distributed among investors based on their shareholdings, acting as a one-time capital gain rather than regular dividends.
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
Investors on Timeless receive their money back after the sale of a collectible by entering their SEPA bank account details on the platform. After the sale and distribution of profits, the funds are automatically transferred to the investor's bank account within 10 banking days, allowing for a straightforward return on their investment.
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
Timeless charges a one-time 2% service fee and a management fee at the initial purchase of fractions, covering costs like division of collectibles, documentation, transport, maintenance, and insurance, with management fees varying from 1% to 6% depending on the asset. Trading involves a 2% service fee for buyers, with no fees for sellers. There are no ongoing fees for the storage or operation of the platform, and no fees are charged to investors upon the sale of a collectible.
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
Timeless assists investors with tax reporting by enabling the download of an Excel spreadsheet that records their purchases and sales, simplifying the process of tracking transactions and preparing tax documents.