Real estate Investment Comparison
Wondering whether Groundfloor or Lofty is a better investment? We put them both to the test to help you compare and decide where to invest your money.
Groundfloor provides decent returns in an accessible and easy to use product ideal for first-time real estate investors, but investors looking for higher returns may want to look elsewhere.
Since Groundfloor offers real estate debt investments, investors needn't know much about real estate investing at all
Investors can get started from just $10
While you can't withdraw an investment early, Groundfloor investment terms are not typically longer than two years
Average returns of over 10% is not spectacular, but it's solid
The loans Groundfloor investors finance don't give investors access to a property's cash flow or appreciation upside
Most investments operate on deferred payment, meaning investors are only paid out when the loan is paid back in full.
Groundfloor does well to make investing easy, but its debt structure means investors don't leave knowing more about how to earn more leveraging real estate.
Lofty gives investors unprecedented flexibility with their real estate investment with low minimums, no holding period, and almost instant liquidity. Some knowledge is required to get the most of your investments, but they do a good job at providing necessary documentation to help investors make the right choice.
Secondary market allows investors to trade holdings with low fees from the day they buy them
Investors receive pro-rated rent payments in their account daily
Easily invest in a fraction of a property — as little as 0.1% ownership per property.
Investors actually own the underlying property and vote on major property decisions
Investors from anywhere can invest in U.S. real estate
Fractional investing and managing properties is easy with Lofty, but it's helpful to understand the concept of "limit orders" when buying and selling. This is a key part of trading on Lofty, and it involves you choosing the specific price that you want to trade at.
Lofty's Marketplace has a mix of low and high cap rate properties that you can choose from. Higher higher cap rate properties offer greater cash flow, but they may also carry higher risk of tenant delinquency.
You can easily use Lofty via your mobile web browser, but Lofty does not yet have a dedicated mobile app.