All Forum Posts by: Matthew J.

The reason no one is answering is because there are NO notes issued to an investor. Not sure I can explain it any clearer. Replace Notes with pantyhose. Groundfloor buys pantyhose and investors give Groundfloor money to buy more pantyhose. Once someone invests, groundfloor issues the buyer a LRO. If they go bankrupt the pantyhose is the product they will sell to pay back the LRO's but the LRO's are not secured. 

The answer of why people invest without risk level is because they think its cool product.

@Matthew J. I would add our (RD Advisors) fund RD REDF II,LP to Chris's list. Also it's probably good to compare offerings for structure as everyone is a little different. We're a regionally focus (c. 90% of our loans in the Boston MSA) - others might be pro's at ground up lending, or cannabis etc... and different minimums etc... 

We did a webinar awhile back on debt investing which I believe people found useful. We've also raised on Crowdstreet in the past so while we aren't a crowdfunding website we offered our fund on their platform (they just introduce to be clear, it doesn't go through them)

Chris, you are a wealth of knowledge. I'm in the industry and I appreciate your posts here. I have no idea how you find the time to answer all the questions you do but it is impressive!

@Matthew J.

You are confusing what they are buying versus what you are buying

You are buying a LRO. They are taking YOUR money and investing it in secured notes.

Just like Apple takes your money when you buy shares of stock and creates iPhones - you are not buying iPhones you are buying shares of a company. The company will tell you about those shares and all the risk

My recommendation is to avoid any types of these offerings as if you don’t know what your investing in, your gonna get burned.

Check out posts on Peer street to understand the difference as they invested in secured notes but investors were not secured.

@Matthew J.

The way it reads is they buy secured notes but your investment is not a secured note. You have a LRO which is unsecured and they can change it at anytime

 Forget FTF.
 
For groundfloor, the notes are the safest compare to individual lending but still ****it's not actually being "secured" to any asset****LOL.
The risk is still huge.

In case GF gone bankrupt , your money is gone, it's very simple.

@Matthew J.

Really need to understand the offering and what you are investing in. If they cannot answer your questions to me that’s a red flag but I don’t know how aggressive you have been in getting questions answered. There are numerous private debt funds out there to invest in. Have you researched other funds? Why did you choose groundlfoor?

 Forget FTF.
 
For groundfloor, the notes are the safest compare to individual lending but still ****it's not actually being "secured" to any asset****LOL.
The risk is still huge.

In case GF gone bankrupt , your money is gone, it's very simple.

@Matthew J.

Really need to understand the offering and what you are investing in. If they cannot answer your questions to me that’s a red flag but I don’t know how aggressive you have been in getting questions answered. There are numerous private debt funds out there to invest in. Have you researched other funds? Why did you choose groundlfoor?