📱 Best Platforms
Groundfloor, PeerStreet
📖 The Hustle
Groundfloor lets you fund short-term real estate loans (fix-and-flips, bridge loans) backed by the actual property. Rates run 8-12% and loans typically last 6-12 months. Unlike unsecured P2P loans, these are secured by real estate — if the borrower defaults, Groundfloor forecloses and recovers your principal. Spread $500 across 5 different property loans in growing markets, and each time a loan repays, roll your principal plus interest into a new deal.
🚀 First Step
Create a Groundfloor account, deposit $500, and invest $100 each into 5 different residential rehab loans across 3 different states.
🔑 Keys to Success
- Pick loans where the after-repair value (ARV) is conservative and the loan is 70% or less of that value for a safety cushion
- Diversify across at least 3 different states so a local housing dip does not hit your entire portfolio at once
- Use Groundfloor's auto-invest feature to keep your cash constantly deployed into new loans without manual work
🛠 Tools & Resources: Groundfloor, PeerStreet, Patch of Land, Fund That Flip, RealtyMogul