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Better Real Estate Borrowing

A private money lender is any non-bank company such as Groundfloor that lends money to people to buy real estate properties.

The Professional’s Choice

The Preferred
Private Money Lender

Are you a real estate professional? Are you a builder? Are you an investor that wants to build an investment property?

If so, then you need access to the right private money lender. That’s why Groundfloor is the preferred choice for many real estate professionals.

You Have Questions, We have Answers

Have Any Real Estate Lending Questions?

Learn more about borrowing with Groundfloor with some of our frequently asked questions.

Why work with a private money lender like Groundfloor?

Private money lenders are non-institutional individuals or companies that provide short-term loans to borrowers for a variety of purposes. Working with a private money lender can offer several benefits, such as faster access to funds, more flexible loan terms, and a simplified application process.

Speed is one of the primary advantages of working with a private money lender. Unlike traditional lenders, private lenders can often provide funds in a matter of days rather than weeks or months. Private lenders typically have more flexibility in their loan terms as well.

Another benefit of working with a private money lender is the simplified application process. Traditional lenders typically require extensive documentation and review processes that can be time-consuming and onerous. Private lenders, on the other hand, often base their lending decisions on the value of the collateral or the borrower’s ability to repay the loan rather than on strict credit score requirements.

What if I want to repay my loan early?
You may repay your Groundfloor loan at any time. There is a three-month minimum interest required for prepayments within the first three months of your loan. After three months, there is no prepayment penalty.
What can I expect after my loan is approved?

Loans go into conditional approval, pending the borrower’s acceptance of Groundfloor terms and conditions. At the closing table, Groundfloor will provide the initial disbursement of funds. Once the property has been purchased and the project begins, borrowers receive draws payouts in the form of draw requests from a Groundfloor-held escrow account. Please note that draws are approved based on completed work. For a more detailed explanation of a loan’s lifecycle, please refer to our blog post on the subject.

What can I expect after I submit a loan application?

Once you submit a loan application to Groundfloor, a Groundfloor representative will contact you to get more details about your project and discuss terms. Then, the loan moves through processing, wherein you submit all required documentation to your assigned Groundfloor representative. Once this is completed, the loan moves into the underwriting stage before being cleared to close. You will receive communications and updates about the status of your loan from the Groundfloor team, but you are always welcome to reach out to your dedicated Business Development Manager should you have any questions along the way.

Our Operations Team can typically close a loan application within 10-14 business days. We will advise upon review whether the application is complete, or if we need additional information to complete the application.

Does Groundfloor charge me fees?
Groundfloor generally charges borrowers between 2.75% and 4% of the principal amount of the loan in interest for underwriting the loan. Borrowers’ points and fees are financed into principal loan amount at closing, and interest payments are deferred until the loan repays. Closing costs are a total of $1,250, plus an additional $495 application fee, which is paid at the time of application and covers the valuation costs.

Once the loan closes there may be additional fees for servicing the loan should the loan mature or go into default.

Who Are We

Learn About Groundfloor

Groundfloor is a first-of-its-kind investment platform for everyday investors that gives both non-accredited and accredited investors direct access to short-term, high yield returns backed by real estate.

Our returns are powered by venture loans to real estate entrepreneurs, originated and serviced by Groundfloor.

Get Started With New Construction

Ready To Get Started With A
New Construction Loan?

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We can help with any project

Meet our flips

Check out some of the properties that we’ve helped transform all across the country.

Lanham, Maryland

Jacksonville, FL

Atlanta, Georgia

Columbus, Ohio

Mableton, Georgia

Charlotte, North Carolina

Bluffton, South Carolina

Pensacola, Florida

Borrower Spotlight

Meet our Borrowers

Learn more about a few of the borrowers that have worked with Groundfloor to turn bring their project to life!