Groundfloor Reviews 403

Do not invest your money with this company! They hold on to it for 6 + months, and the return is nowhere near 9%

You get back what you put in with a few extra cents.

You do not make money with this company, and investing with them is not worth it

Reply to the company's statement: every single return was at least less than 5% and most were 1-2%.

I did talk to someone before I posted this, who said returns vary and there are zero refunds... You have to wait the 6+ months to get money back.

I stand by my original statement

I’ve been waiting since April 2022 for 4 years for $60 in interest. Foreclosure supposedly happened 2 years ago and now it’s a short sale. This company is a joke of epic proportions

I started investing with them in 2021, mostly in notes but also in some early LROs. My experience isn't an investment or two, but rather across hundreds of transactions over nearly five years. Generally speaking, the LROs are garbage loans that aren't collected for many years, if at all. They foreclose, the property is eventually sold at a loss, then they apply their costs and fees and pay you dimes on the dollar. It's important to distinguish the LROs and specialty products from the Groundfloor notes. The GF notes I invested in were all repaid on time as agreed. I'm unlikely to invest further, as I've found their transparency to be lacking, especially in obtaining financial information about Groundfloor itself. Based on the limited financials they have released, they lose tons of money and don't seem to have a clear path to profitability. Quicken calculates my overall annual return with them at 8.46%, but that's over 95% in notes averaging close to 10%, with losses on the small amount of LROs bringing down the IRR. I also have some cost basis remaining from old LROs that are unlikely to ever see a recovery, so at the end, the IRR will be in the 7's. My experience is that a simple ETF produces a much better result, provides liquidity, and results in a lower tax burden. GF desperately needs a publicly traded buyer or to be shutdown. In my opinion, their current business model is unsustainable.

Groundfloor Lending ripped me off on repayment from one of their bad loans (see attached). They falsely rate their loans to investors and then take no responsibility when their clients default. A 7-year investment for a $3,600+ loss (see attached). Sketchy company to say the least. I can't advise others strongly enough to avoid doing business with them at all costs...you'll be sorry if you do.

This company seems to be a scam now by providing misleading descriptions of the loans. Basically 90% of the loans can not be paid as scheduled, and more than 1/3 or even more loans will be default. So do the math.

They don't have a solution to handle extremely high percentage of default loans. Has anyone ever heard of a solution or did they post a solution at the website?

What a terrible experience! Misleading maturity dates on investment products. Groundfloor holds your principle for years past the advertised "maturity date" for LRO investments, so consider yourself warned. 70+ loans in default, maturity dates vary from 2022 thru 2024, updates are often repetitive, cut & paste, vague statements. Here in 2026, at this snails pace, I'll be lucky to see a small portion of the principle investment in 10 years. GF offers no resolution except to go through each loan individually which they said would take 2 or 3 weeks - shouldn't they be doing this regularly anyway? Whatever. Stay away, unless you enjoy a consistent loss of principle!

They are efficient in securing loan approvals; however, the disbursement of approved funds can be slow and challenging. Their draw process and communication delays often extend the construction timeline, resulting in increased overall project costs.

If I could give -10 stars, I would.

This company is a waste of time and effort.

I invested 1k as a test in an LRO 4 years ago. It was to mature in 12 months. It has not. The property has now been in foreclosure for 2 years with no end in sight.

Customer service is very dismissive and uninterested in actually solving the problem.

It's unfortunate because I had planned to invest quite a bit over time if they had actually panned out.

Be advised, invest elsewhere.

Jacked up fees to $85/quarter for their only custodian account provider. Can't close the account because investments 2 years in default are still being "worked out". Avoid at all costs.

I opened a IRA with Groundfloor in 2018ish. only put in a couple thousand, then lost interest as several of the loans defaulted. because of the small balance i just left it open with autoinvest and check it a couple of years it's not doing much, but not hurting me either. Anyway, today i got an email that they've been paying a custodial fee to a third party and they're now going to require us to pay it. 85.00 a quarter. and because they're long term mostly 15 month investments i have to wait until they're repaid to close the account. furthermore they have accounts in default that are still technically open since 2022. so i may potentially never be able to close this account while being charged 85 a quarter for an account that makes less than that annually.

Recently the website and app no longer provide detail info on individual LROs. Half of the LROs I've invested in are now in default and if they repay at all return less than 70% of my investment. Status updates are not refreshed regularly. I DO NOT RECOMMEND.

A nightmare is the nicest thing I can use to describe the lack of help and customer service one expects. I'm trying to stop and have been unable to.

I am writing this review after a full audit of my Groundfloor LRO activity from 2021 to 2026. My goal is to provide a factual account of my experience for anyone considering this platform as a "safe" real estate investment.

I made a total of 93 LRO investments across various states and credit grades (A–E). At the time of my investment, the platform’s marketing suggested low single-digit default rates and protected principal via sub-80% loan-to-value (LTV) ratios. My actual results have been the opposite:

24% Default Rate: Out of my 93 investments, nearly a quarter went into default. This occurred despite my attempts to diversify across different borrowers and geographic regions.

Persistent Unpaid Loans: Five years into this journey, 8 loans remain unpaid with no clear resolution in sight. These were originally marketed as short-term (6–18 month) obligations.

Misleading Valuations/LTVs: I recently received a final repayment on a loan that was y3 full years past its due date. Despite being marketed with a 70% LTV against the appraisal, I recovered only 50 cents on the dollar of my principal. For a 70% LTV loan to return a 50% loss, the original appraisal provided to investors appears, in my view, to have been fundamentally disconnected from the property's actual market value.

Net Performance: While most loans were eventually repaid, many involved varying losses of principal. When factoring in these losses and the years of frozen liquidity, the risk-adjusted return has been significantly worse than a standard high-yield savings account or a total market index fund.

In my experience, the "protection" advertised through appraisals and LTVs did not manifest in the actual recovery process. I am sharing this so other investors can understand the high probability of principal loss and the potential for capital to be locked up for half a decade. Approach with extreme caution.

Final comment: They don't get one star because in my early years with Groundfloor, I also invested in 12 of their 1-yr Notes and these were all repaid on time and as advertised. It was the poor investment results from the LROs that made me give up on Groundfloor as an investing option.

As an edit based on Groundfloor's response to my post, their comment is misleading. 24% of the totality of LRO's I invested in went into default. Some were eventually paid back at a loss. The percent in default stands today at 100% and it's been 100% in default for quite some time. Yes, I stopped investing in LROs years ago when I realized significant loss was almost certain. Now, I don't really anticipate seeing much if any of the principle returned. Loss of principle is a risk in any investment. That's what I experienced and simply sharing the data about my Groundfloor investing experience. Groundfloor gets paid their slice upfront and it's hard to say what, if anything, motivates them to recover defaulted loans but protecting customer investments does not appear to be a priority. Groundfloor, for me, has just been a stupendously poor investment choice and the chance that I would invest more money in anything this company offers is 0%.

BUYER BEWARE. Don't plan on getting all your money out. Many loans go to default and drag on for years. Only invest money you can afford to lose.

I have my money tied up in a single investment since 2019. Waiting all that time for a single investment to close you end up earning almost next to nothing. It's not worth the time/effort to invest with them.

Many loans are in default. May never recoup full investment.

Company is a scam! They finance loans and crowd fund for the probable default! Flat out legally taking the investors money invested! Have lost thousands so far, will be losing much more!

This company has regrettably transformed into a fraudulent operation. Approximately three years ago, they were transparent; however, they have since redesigned their website to conceal information from customers. Their legal representatives have proven incapable of resolving the issues. Surprisingly, the investments Groundfloor has made in properties are being sold without repaying Groundfloor. While individuals may choose to risk their money, I am currently experiencing a 35% loss on my investment with them.

In Groundfloor. Look for Andy Levison. I was looking for funding to develop my properties and possibly buy new houses for tear down for reconstruction. I reached out to so many lenders but were frustrated with their high level of documentation and requirements. I went online to research about lenders that are willing to bypass bureaucratic processes and approve funding for my projects. I came across Groundfloor and was introduced to Andy Levison. He is such an amazing man and most importantly was deeply committed in ensuring that that l get funded even when l had issues in pulling my credit from credit agencies he believed in me until we closed on the contract and get funded for $1.2m. That was my first transaction with Groundfloor. I also have closed a second transaction of $659,000 and about closing the 3rd transaction of $1.3m. I am really grateful to Groundfloor especially Andy Levison and his team that believes in me despite challenges. I strongly recommend Andy Levison when dealing with Groundfloor. He will never give up on you.

They don't pay out from bad investments, pay pennies on the dollar, don't respond to emails, lost a ton of money with these guys. Buyer be aware! They invest in high risk RE developers.