Groundfloor

Groundfloor offers the lowest barrier to real-estate debt anywhere: as little as $10 per fix-and-flip loan, open to non-accredited investors, with more than a decade of transparent loan-level data. The catch sits at the operator level: auditors expressed going-concern doubt in both the FY2024 and FY2025 audited financials, and LRO investors are also exposed to Groundfloor corporate as counterparty. The minimum is $100 in initial funding, with as little as $10 per Limited Recourse Obligation (LRO). Investors pay no fees on LROs, Notes, or the Flywheel Portfolio; borrowers pay origination and servicing. Platform-reported returns average about 10% annualized since 2013 with a sub-1% principal loss ratio; independent analysis puts the loan default rate near 4.7%, with recoveries on defaulted LROs historically 60-95% of principal. Terms run 6-18 months with no early exit. Founded in 2013 in Atlanta, Groundfloor has no fraud history and has operated through two rate cycles. But the risks are real and current: a FY2024 net loss of $14.3M, going-concern language two years running, routine defaults with workouts that take months to years, and returns concentrated in high-risk fix-and-flip credit.