Real estate Investment Comparison

Groundfloor vs. Lofty

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.

vs.

Comparison Table
Groundfloor
Lofty
Minimum Investment
$10
$50
Investment Holding Period
1-18 months
No Minimum
Early Withdrawal Penalties
Unavailable
None
Rent Payouts
N/A
Daily
Avg. Yearly Returns
10.5%
10.66%
Accessibility
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Earning Potential
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Investment Liquidity
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Groundfloor
Investment Quality Score
4.0
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Lofty
Investment Quality Score
4.0
Star Rating - 0.5
Star Rating - 1Star Rating - 1.5Star Rating - 2Star Rating - 2.5Star Rating - 3Star Rating - 3.5Star Rating - 4Star Rating - 4.5Star Rating - 5
Groundfloor

The Bottom Line

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.

Groundfloor Pros:

Real estate knowledge not required ๐Ÿ 

Since Groundfloor offers real estate debt investments, investors needn't know much about real estate investing at all

Low minimums ย ๐Ÿ”‘

Investors can get started from just $10

Short investment terms โฉ

While you can't withdraw an investment early, Groundfloor investment terms are not typically longer than two years

Decent return record ๐Ÿ“œ

Average returns of over 10% is not spectacular, but it's solid

โ€

Groundfloor Cons:

Capped upside ๐Ÿงข

The loans Groundfloor investors finance don't give investors access to a property's cash flow or appreciation upside

Investment Tip: Make sure efforts to reduce risk don't disproportionately reduce potential gains too

Lump sum returns โ›ฐ๏ธ

Most investments operate on deferred payment, meaning investors are only paid out when the loan is paid back in full.

Investment Tip: Make sure you calculate in the timing of investment returns when calculating your long term gains

No opportunity to learn about real estate investing ๐Ÿ“‰

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.

Investment Tip: Look for opportunities to compound not only money, but investing skill as well

Lofty

The Bottom Line

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.

Lofty Pros

No holding period ๐Ÿ™

Secondary market allows investors to trade holdings with low fees from the day they buy them

Daily rent payments ๐Ÿ“…

Investors receive pro-rated rent payments in their account daily

Low minimum investment ๐Ÿ”‘

Investors can invest as much as they like as long as it's over $50

Decentralized ownership โ›“๏ธ

Investors actually own the underlying property and vote on major property decisions

Open to investors everywhere ๐ŸŒŽ

Investors from anywhere can invest in U.S. real estate

โ€

Lofty Cons

Some web3 knowledge required โ›“๏ธ

While buying new fractions and managing properties is easy, trading with other investors currently requires a crypto wallet (though this will not always be the case)

Investment Tip: Make sure investment options don't put you out of your knowledge depth

Delinquency Risk ๐Ÿƒ

Lofty's focus on high cap rate properties creates greater cash flow but with greater risk for lost rent

Investment Tip: Do your due diligence to property evaluate risk/reward profiles of any investment

No Mobile App ๐Ÿ“ต

Lofty currently only runs on a browser

Investment Tip: Choose investments that fit your prefered method of monitoring

Read our comprehensive
Groundfloor
Review
Read Full Review
Read our comprehensive
Lofty
Review
Learn more about Lofty
Read Full ReviewGo to Lofty.ai