I look at the 11 loans offered and invest in ones that meet my criteria. I got an email about a new type of bonus, Groundfloor is adding 1% to 11 select loans if you invest before November 2nd. Not sure how long it will take to fully subscribe or if they will add more loans once they do so I'm jumping on this now.
Transcript:
17.5% return I just found three loans
that are gonna return me 17.5% keep
watching to find out how for any of you
don't know what real estate crowdfunding
is it's basically peer-to-peer lending
where the underlying project is a house
you lend say hundred dollars and enough
people lend a hundred dollars each
eventually the loan is fully subscribed
to and that borrower gets their loan
that loan is secured against that asset
so if they default you can repossess the
asset to get your money back the returns
are much higher than with places like
prosper and you get the security of
knowing that there's an asset backing
your loan what I like about real estate
crowdfunding is that I can get really
high returns but I still have the safety
of knowing my money is secured against
an asset ground-floor has consistently
giving me my highest returns and it
doesn't require you to put twenty five
thousand or ten thousand dollars per
investment it has a $10 minimum per loan
so you can get started with these three
loans and start making money right away
and if you want to get a ten dollar
bonus there's a sign-up link below and
we'll both get ten dollars ok something
really interesting on ground floor
happened I logged in to check my account
and I found 3d grade loans in the system
it's unusual to see e grade loans and to
see three of them all at once I thought
this was pretty special so let's go
ahead and take a look at them automated
investing already went and purchased a
hundred dollars of each of them for me
so I already own these loans I'm going
to see if I want to keep them and
potentially if I want to invest more
money first one
2:09 Clay Street 19% loan
purchase and renovate first liens second
payment position right air view on the
I've showed up till now has always been
firstly in first position I believe so
you can see here the first loan was for
380 and the second one's for 100 and
second payment position means they're
gonna pay these guys first and then we
would get paid so that would only result
in like
foreclosure they weren't repaying their
loans so let's go ahead and jump down
look at the borrowers experience and the
miscellaneous clauses okay a couple of
standard clauses and then we have there
will be two loans on this project each
representing subsequent draws the this
represents the first loan 388 the second
loan is subordinate to the first loan
for $100,000 the financial overview
represents the Agora agreement of all
loans secured by this property giving a
complete financial picture of the
project in the event of default one
ground-floor note secured by this
property will trigger a default on all
ground-floor notes on this property
however the lor holders investing lor
corresponds to notes secured by the
property have different priorities in
recovery yeah so during recovery were
number two so they have some experience
but let's go back up to the loan so we
can see this we got did the math and
eighty thousand into 615 is 13% cushion
so they have a 13% cushion and they have
around a 7% skin in the game this is
super interesting I don't see he grade
loans it's nice to see one once in a
while I probably already invested in
let's take a look at the second loan and
here we got 1715 water crust this one is
first position first lien second payment
position 45,000 cushion 300 ERV so 15%
cushion and roughly 8 or 9% skin in the
game bar experience of 4 let's check the
miscellaneous
similar clauses but not exactly the same
there will be two loans on this project
each represented something draws well
each draw to a loan approved will solve
the corresponding costs of every two
months to the date of the advance the
first draw later in the event of a
default on one ground-floor property and
the last one is 3481 Charlamagne drive
so three divided into two thirty
eighteen percent it's interesting it's
actually got a pretty decent cushion for
what I thought it would be for each of
these loans this one is the only one out
of the three that's not a first position
this is actually a second lien not a
second not a first lien but a second
lien so let's check out the conditions
here and see if they're any different
okay the borrower is receiving a skin in
the game score for the remaining fifty
five thousand there will be two loans on
this project you were each representing
so draws interesting so this one's just
structured a little bit different but
both of these are ground-floor loans
well a hundred dollars each loan is
statistically relevant to how much would
be in my portfolio I want to go ahead
and pump these up and substantially even
if these do fail out it's really not
going to hurt me and I've been wanting
to add a little more risk and by the e
well any DS and E's or even higher rated
loans
to get those higher returns I mean 19%
70% 16.5 I'm willing to take the hit if
they they don't pay off so let's see it
some it would be a good amount to add
let's just add 300 bucks to each one I
put my commitment to four hundred for
each loan
okay let's go check the summary see how
much of my portfolio is added allocated
towards e loans yeah so 0.8 percent of
my entire lor commitments are in Ygritte
loans
don't forget to Like subscribe and put
your questions in the comments if you
want to sign up for ground floor Pierce
Street m1 finance or Lending Club
I've got signup links below that'll
allow you to get bonuses thanks everyone
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