Investing with Groundfloor using my SDIRA

[Renata McCulloch]

I have been looking at the company Groundfloor as a way to start investing in real estate.  They are a hard money lender with investors who can put in as little as $100.00.  I plan on investing more.  I also have a SDIRA set up with another company (QuestIRA).  I know Groundfloor also allows one to set up a SDIRA with them.  I would like to keep my money with Quest for now.  Is there a way to set up an account with Groundfloor and use my SDIRA funds without changing custodians?  Looking to know the legal implications and the tax implications this could have. Thank you in advance!

[Stan Sugarman]

I have to second others' warning about GroundFloor. They defer interest to the maturity or payoff of the principal which tends to hide problem loans. They rely on appraisals/borrowers opinion of value with no risk adjustment/market knowledge to price their loans. Of the 3 loans I invested in the Atlanta market only 1 has been successful and the other 2 are going into default. This is due to borrower issues not market conditions. One the seller overpriced the home by 30% and letting the property sit overpriced 6 months. The other the borrower took a year to complete the project. In the event of a market correction I believe they could have 50-75% default rate across their entire portfolio