GROUNDFLOOR Launches “Split Loans,” Allowing Non-Accredited Investors To Access Structured Real Estate Investments For The First Time Ever

ATLANTA (STL.News) – GROUNDFLOOR, an investing and lending platform that allows anyone to participate directly in real estate investments on a fractionalized basis, today announced another industry first. Through its new “Split Loans” offering, the wealthtech company is allowing non-accredited and accredited investors alike to control their exposure to risk and reward in a way that was formerly only available to accredited investors and institutions. As the name suggests, GROUNDFLOOR will now be able to split larger real estate loans to create multiple positions in the same project for investors to consider. This allows GROUNDFLOOR to originate bigger loans for its borrowers, while also offering a wider range of possible returns to help investors further diversify their portfolios.

“Since we started six years ago, GROUNDFLOOR has been on a mission to open private capital markets to everyone,” said CEO and co-founder Brian Dally. “Introducing Split Loans underscores how serious we are about our mission. This first-to-market innovation provides even more flexibility, choice, and control to diversify with access to a broader range of investment opportunities across the spectrum of risk and reward in private real estate lending.”

To date, GROUNDFLOOR’s maximum lending amount for real estate developers is $2 million. While most borrowers do not require this level of funding for fix-and-flip projects, having Split Loans available now enables the company to pursue other types of real estate projects more aggressively, such as new construction or multi-family housing, which typically necessitates more capital.

GROUNDFLOOR maintains a first lien position on Split Loans, as usual. For investors, Split Loans offers more diversification options per loan, as all Split Loan projects will contain at least two investment options, each with its own risk profile and corresponding interest rate. Those in the first position of the loan are in line to receive repayment of principal before those in the second position. Because they are in the latter position of the “repayment waterfall,” the second position investors have the opportunity to receive a higher yield in exchange for taking on a greater risk of loss.

With Split Loans, GROUNDFLOOR will also be able to continue selling more loans to its institutional partners, such as Direct Access Capital, Alpha Flow and Via Nova. These institutional partners can absorb excess supply of originated loans when needed. For more information about Split Loans and to see a detailed example, visit the GROUNDFLOOR blog.


Founded in 2013 by Brian Dally and Nick Bhargava, GROUNDFLOOR opens private capital markets to all. GROUNDFLOOR was the first company qualified by the U.S. Securities & Exchange Commission to offer direct real estate debt investments via Regulation A for non-accredited and accredited investors alike. Today, it remains the only product offering a customizable real estate debt portfolio for short-term, high-yield returns. For real estate entrepreneurs, GROUNDFLOOR offers borrower friendly loan terms like a no payment option to give them more control over their cash flow. The company is headquartered in Atlanta and has raised $18.3M in equity capital from a variety of sources, including venture capital and online public offerings. While anyone in the country can invest with GROUNDFLOOR with as little as $10, the company focuses its lending in 30 states.