Raleigh, N.C.-based GroundFloor is staking claim to having subscribed “the first successfully funded, 100 percent crowd-financed real estate deal in the U.S.” — a $40,000 first lien loan for the renovation of an Atlanta home.
While crowdfunding is playing a growing role in financing real estate transactions, such deals typically help developers and investors augment money they’re putting up themselves.
GroundFloor co-founder Brian Dally tells the Triangle Business Journal that the company has more than $175,000 pledged by 200-plus investors on two projects. GroundFloor announced in October that it had landed $125,000 in seed funding from four investors, including Bandwidth Labs and Capitol Broadcasting Co. Source: bizjournals.com.