GROUNDFLOOR announced on Wednesday the launch of its new automatic investing feature, which allows investors to keep their money working and not miss out on future loan opportunities.
.GROUNDFLOOR further revealed that auto investing enables investors to allocate specific dollar amounts that will automatically fund projects that match their predetermined level of risk.
“For example, if an investor allocates $10 toward loans designated Grade A and Grade B (more conservative loans that typically yield 6-9% on an annualized basis), the funds in that investor’s account will immediately apply $10 toward each Grade A and Grade B project, until funds are no longer available in their account. This benefits the investor by ensuring they don’t miss out on a relevant investment opportunity, without having to log in and invest manually. Investors will have an opportunity to cancel investments as they normally would.”
While sharing more details about the feature, Co-Founder of GROUNDFLOOR, Brian Dally, stated:
“Our $10 minimum investment leads the industry as an intentionally low barrier to diversification within alternative investments. With GROUNDFLOOR Auto Investing, our software continuously diversifies for you to minimize cash drag — with zero fees. Time-starved investors shouldn’t be forced into giving up control to outmoded, high-cost, actively managed funds such as eREITs that lock up your money, under-invest it, and charge penalties to withdraw it.”
The launch of GROUNDFLOOR’s automatic investing feature comes just after the wealthtech experienced record growth in March 2021, which saw 88% year-over-year increase in retail investment volume. GROUNDFLOOR previously announced a new program to spur more accessory dwelling unit development, as well as the Loan100 program to provide financing for up to 100% of total project costs for highly qualified borrowers. The platform recently reported its investments have yielded an average annualized return of 10.42% in 2020 and 10.5% since inception, which is 3-4% higher than 2020 returns publicly reported by leading eREITs. Fees and “cash drag,” the effect of earning zero returns on cash balances held by a fund or an investor awaiting investment, significantly reduce investor returns.
The automatic investing feature is now available to all of GROUNDFLOOR’s registered investors, who need only $10 to begin investing fractionally in the dozens of real estate projects GROUNDFLOOR offers each week.