GROUND FLOOR announced on Wednesday the launch of its new auto-investing feature, which allows investors to put their money to work and not miss out on future lending opportunities.
.GROUNDFLOOR further revealed that auto investing allows investors to allocate specific dollar amounts that will automatically fund projects corresponding to their predetermined level of risk.
“For example, if an investor allocates $ 10 to designated Category A and Category B loans (more conservative loans that typically earn 6-9% on an annualized basis), the funds in that investor’s account will immediately apply $ 10. to each Category A and Project Category B, until the funds are no longer available in their account. This benefits the investor by ensuring that they do not miss a relevant investment opportunity, without having to log in and to invest manually. Investors will be able to cancel their investments as they normally would. “
While sharing more details about the feature, Co-founder of GROUNDFLOOR, Brian Dally, declared:
“Our minimum investment of $ 10 leads the industry as an intentionally low barrier to diversification within alternative investments. With GROUNDFLOOR Auto Investing, our software is constantly diversifying for you to minimize loss of cash – at no cost. Time-pressed investors shouldn’t be forced to give up control of obsolete, expensive, and actively managed funds, such as eREITs that lock up your money, underinvest it, and charge penalties for withdrawing it.
The launch of GROUNDFLOOR’s automatic investing feature comes just after wealth technology experienced record growth in March 2021, which saw 88% year-over-year increase in retail investment volume. GROUND FLOOR previously announced a new program to stimulate the development of additional housing units, as well as the Loan100 program to provide financing up to 100% of total project costs for highly qualified borrowers. The platform recently announced that its investments have generated an average annualized return of 10.42% in 2020 and 10.5% since inception, which is 3-4% higher than the 2020 returns publicly reported by major eREITs. Fees and “cash drag”, the effect of obtaining zero returns on cash balances held by a fund or investor awaiting investment, dramatically reduce investor returns.
The automatic investment function is now available to all registered GROUNDFLOOR investors, who only need $ 10 to start fractional investing in the dozens of real estate projects GROUNDFLOOR offers each week.