Groundfloor

Mar 9th, 2024

Do not do business with this horrible company. I went through a refinance for months for a fix and flip, only to be told months later that they wont refinance my loan. Absolutely terrible customer service and I will be reporting them to the BBB as well. Stay away!
Jan 30th, 2024

I completely agree with all the other 1 star reviewers. The pain and frustration expressed by these folks mirrors my own and also that of family members who have invested in GF LRO's. I made a single investment over 3 years ago across multiple loans; I'm still waiting & wallowing in the GF abyss for closure. Once you place a lump sum of cash into the hands of GF and allocate to multiple loans, the journey of pain begins and here's how it typically unfolds: Roughly 20% of the loans will be paid on the maturity date; 50% will be paid somewhere between 3 and 12 months after the maturity date, often with a reduced interest rate; and 30% will go into default/foreclosure - in this case there is a very real risk you will lose much or all of your investment. There is little correlation between a loan's rating and how it performs. Overall, A and B loans appear to default as often as C and D loans. Balancing portfolio risk is essentially impossible. GF due diligence on loan risk appears grossly lacking. Once a loan goes into default, frustration begins to peak. GF communication on loan status is extremely poor. One-line update quips are provided, on average, once a quarter and tell you next to nothing (i.e. "Foreclosure process ongoing"). Further, GF operates with zero sense of urgency as loans dribble thru the default/foreclosure process, which is literally years long. While I don't know all the reasons for GF's lack of speed, urgency and poor communication, I suspect it's largely due to the fact that it's not GF's money that's tied up and they're not feeling the pain. Net/net, expect a portfolio that has a stated return of 10% to ultimately return only 4-6%. But worse, plan on 20%+ of your investment to be tied up for 2-4 years in the foreclosure black hole. Great business concept, but poor execution. I would strongly recommend staying away from GF.
Apr 9th, 2024

Review 2022: Groundfloor is an MBS investment vehicle. If mortgages are paid on time investors get paid on time. And the opposite is true. The pandemic has made paybacks really difficult for Groundfloor. Many borrowers have defaulted in their loans and as a consequence they are having trouble paying investors back. I invested in a loan that was supposed to be paid back in March 2020. I haven't been paid yet. If you want to invest and have liquidity in any type of scenario invest in the stock market. You can liquidate even in hard times, at a loss. During times of crisis you will see if a business is resilient and in my humble opinion Groundfloor is too fragile to be resilient in times of crisis. The worst investment I made so far. Never ever put your money in Groundfloor. Updated Review 2-22-2024 I still would not advise investing with Groundfloor. Since the pandemic they have thousands of cases that have not come to be resolved, for multiple reasons. I have been waiting for 4 and 5 years respectively for my meager investments to finally be resolved. My final word is never invest with them, is not a safe bet that I learned the hard way. If you wanna learn more from this business go to the Better Business Bureau website and see the tons of complaints about them. I am keeping my one star review.
Mar 7th, 2024

My business partners and I invested in a single family home as we have done many times. (We also own a property management company and see other owners dealings with investment mortgage companies) we have the pleasure of also owning a remodeling company and my partner owns a commercial refrigeration business. My partner did the hvac install and we all did the trash out and requested an inspector come out so we can take a draw. I am personally out almost $4K of my own money. The inspector was very lazy and barely looked under the house to see the hvac install. He gave us partial approval of draw. They asked for the hvac permit. My partner who has owned a professional hvac company for decades went to the local city hall as well as two court houses and was told that a permit is not required. When we informed them of this they asked for the number to the court house where we went to permit it. Our frustration with this lender is that we were approved. The rehab items were reviewed and approved and here we are arguing with them over our draw. Meanwhile I am out thousands of dollars and have no clue when my draw money will be received. I do not appreciate a lender treated me like a crook for wanting to draw from my own funds that we were approved for. And before the owner responds with some clever story. I can provide photos of the work completed to prove my side of the story. I hope that they will correct this extremely frustrating situation so I can come and amend my review to a higher rating but as of right now they get 1 star due to poor communication and due to withholding funds that we are approved to receive.
Feb 10th, 2024