We’ve discussed how the banks won’t like what we’re doing, but you will and how one of our borrowers, John Mangham, is revitalizing historic intown communities and how to build wealth by investing in projects on the GROUNDFLOOR platform and more. Today, in our #17loans17days retrospective, we highlight affordable housing and our first project with borrower Andy Luick, affectionately known as Handy Andy.
Handy Andy was referred to us by RealtorⓇ Mason Eldridge. Andy has pioneered the shared housing concept in metro Atlanta. His model is unique in that he seeks out blighted properties to renovate and transform into affordable multi-tenant homes. He then markets the property through his business, MyRentedRoom.com, which both sources and matches available rooms and those seeking affordable housing. Using his MyRentedRoom model, Andy is able to rent the renovated properties and sell to a 3rd party buyer at a premium. Unlike traditional income property, the shared housing models creates superior value for both Andy and the 3rd party buyer.
In his first project with GROUNDFLOOR, Andy offered a property in Atlanta’s Venetian Hills neighborhood located at 1371 Avon Avenue. The $25,000 12 month loan at 10% allowed Andy to “transform this ugly duckling into a dollar producing swan.” He added that “it’s one of the few times that you can actually earn good by doing good!” in a comment thread with GROUNDFLOOR lenders.
For this project, 80 lenders fully funded the loan on November 23 of last year 38 days after it went live. Before renovations were complete, Andy had already received an offer to purchase the property and reservations for 2 of the 3 bedrooms, affirming the demand for shared housing.
GROUNDFLOOR’s platform in a non-traditional finance option for borrowers like Handy Andy and his non-traditional housing concept. Where big finance wouldn’t see the big picture of Andy’s model, the GROUNDFLOOR community can...and did.
You can too when you invest in any of our loans. In fact, our Cheers to 2 Years! promotion in celebration of our 2nd anniversary continues through February 22nd. When you invest $500 or more, we’ll add $100 to your investment automagically for a total of $600.