ATLANTA, Jan. 9, 2018 /PRNewswire/ -- Non-accredited and accredited investors in all 50 states can now participate in real estate crowdfunding investment opportunities with Groundfloor. Groundfloor, the first issuer qualified by the U.S. Securities & Exchange Commission to offer real estate debt investments via Regulation A that are available to non-accredited investors, today announced that it has received qualification as an issuer under Tier 2 of Regulation A. The qualification allows over 150 million additional investors to access real estate investment opportunities that have been previously unavailable to them, tripling Groundfloor's addressable market.
Real estate investment demand has surged in recent years as more people look to diversify their portfolios and participate in the strong annual returns of this asset class. Historically, however, most real estate investment opportunities not structured as a fund have been restricted to accredited investors. Groundfloor has fundamentally transformed this once restrictive opportunity to provide anyone with the access to short-term, high-yield returns with a minimum investment of as little as $10 with no fees or middlemen. Typical loans return six to 14 percent annually on a six to 12-month term.1
"Since our first pilot offering in 2014, Groundfloor has innovated with technology and securities law to challenge a financial system in which all investors' dollars are not equal," said Brian Dally, co-founder and chief executive officer, Groundfloor. "Today, with this qualification, the playing field for real estate investing is now level, nationwide."
The company also announced that it has filed a preliminary offering circular to offer equity ownership in Groundfloor via an online public offering also under Regulation A. Potential investors may make indications of interest by invitation only. Interested investors can register for an account at http://www.groundfloor.com.
In 2017, Groundfloor saw tremendous growth of over 380% in origination volume and 786% in revenue, prior to announcing a partnership with its first institutional investor, Direct Access Capital (DAC).2 Groundfloor lends in 27 states, and has self-originated over $50 million in loans for 398 real estate projects earning individual investor portfolios average annualized returns of 11.74 percent to date. Groundfloor has also raised $9.1M in venture capital from leading fintech VCs and angel investors.
About GROUNDFLOOR GROUNDFLOOR is a unique financial product for individual investors that allows non-accredited and accredited investors alike to participate in real estate investment loans. We open the door to short-term, high-yield returns backed by real estate. Typical loans have returned 12 percent annually on a six- to 12-month term.
Groundfloor was founded in 2013 by Brian Dally and Nick Bhargava. The company is headquartered in Atlanta, Georgia with a fast-growing team on a mission to reformat and open private capital markets for the benefit of individual investors and the investments they fund. For more information, please visit www.groundfloor.com. Follow Groundfloor @groundfloor_us.
1 Based on loan grading scale published at http://www.groundfloor.us and available in our offering circular and post-effective amendments qualified under Regulation A.
2 Origination volume growth of 380% based on $5.905 million for the 12-month period ending June 2016, compared to $28.398 million for the 12-month period ending June 2017. Revenue growth of 786% based on $137,000 for the 12-month period ending June 2016, compared to $1.214 million for the 12-month period ending June 2017. DAC partnership announced via press release on September 12, 2017.