Source: GROUNDFLOOR / #Crowdfunded #RealEstate
ATLANTA, GA - GROUNDFLOOR, a progressive real estate crowdfunding startup, announces its launch into the Atlanta market with the opening of its pilot development project in Midtown.
Taking advantage of Georgia's innovative securities laws and the Invest Georgia Exemption, GROUNDFLOOR makes real estate investing accessible to all, regardless of net worth or income. For the first time, unaccredited investors can profit from real estate opportunities by backing independent developers who choose to reach beyond the limitations of traditional bank financing.
With the pilot project opening to investments starting at $100 on November 20th 2013, GROUNDFLOOR seeks to change the status quo of real estate finance for the benefit of independent real estate entrepreneurs and investors who have the vision to back them. With the peer-to-peer funding facilitated by GROUNDFLOOR, investors earn uncommonly high rates of return, backed by real property as collateral, without the fees, restrictions, risks and black box complexities common to Real Estate Investment Trusts (REITs).
"A new day has dawned for online investors and independent real estate entrepreneurs," says Brian Dally, co-founder and CEO of GROUNDFLOOR. "Secured lending has long been an engine of wealth creation for accredited investors and powerful financial institutions. The Web's decentralization of bank lending and bank power is undeniably entering an even more promising phase."
For its pilot project, GROUNDFLOOR seeks to raise a total of $300,000 to fund two loans sponsored by real estate entrepreneur and Managing Principal of RPG Properties Pat Gilroy. The loans will be used to refinance, renovate and lease a Midtown residential development and will be secured by the property until repaid with interest within a one-year term. Throughout the life of the loans, investors will be privy to confidential reports from the borrower on milestone achievements including construction progress and leasing performance.
"GROUNDFLOOR has created a refreshingly flexible way to finance real estate projects," says Gilroy. "This innovation unlocks a previously untapped source of capital and will enable us to take on more development projects in less time and with less risk than ever before."