With crowdfunding legislation having now been passed in North Carolina, look for an early leader in real estate crowdfunding to return to its North Carolina roots.

Groundfloor, which makes real estate investing open to nonaccredited investors, was born in the Triangle in 2013. It moved to Georgia two years ago to take advantage of crowdfunding legislation there, and the startup keeps growing. By next year, the company could be selling securities in its former home state, says its CEO and co-founder Brian Dally.

Groundfloor, which raised $5 million in venture financing last December, just a few days ago announced plans to expand its operations to several other states.

The Skinny caught up with Dally to get an update on Groundfloor’s growth and to talk about selling securities in North Carolina. (Groundfloor does offer financing for real estate deals in the state but can’t let North Carolinians participate on the investment side.)

  • Still not in NC? What needs to happen there?

No, we are not yet selling securities in N.C. In order to start doing so, we will need to go through the state’s specific qualification process.

We aim to make Groundfloor available to N.C. investors in 2017.

  • Any plans to operate in NC?

We are currently lending in NC, but do not have any employees or contractors based there presently.

  • I see 20 employees on your website. Are you still hiring?

We have 24 employees (including me & Nick [Bhargava] as co-founders) and two full-time contractors on staff, with plans to continue hiring in sales and operations.

  • Are you profitable? Cash-flow positive?

No, not yet. We continue to invest in building the foundation required to support a very large, highly scalable business.

  • Are you seeking additional funding at this point?

No. We plan to raise our next round in 2017.

  • What’s the complete list of states ? Your website lists the following states: MA, MD, DC, VA, GA, IL, TX, WA, CA

That is the list of states in which our offering is qualified. We have not yet added to that list, but are now lending in 23 states total:

The states being added are Rhode Island, Massachusetts, New Hampshire, Michigan, Missouri, Minnesota, Colorado, Arizona, Utah, Nevada, Oregon, and Washington.

We continue lending in Georgia, North Carolina, Virginia, DC, Maryland, South Carolina, Florida, Tennessee, Alabama, Texas, Illinois and New Jersey.

Growth so far

Dally points out that Groundfloor has now “Funded more than $14 million of real estate loans across 138 projects and have repaid more than $6 million of principal and interest.”

Loans range from $50,000 to $150,000 with a 6-month to 1-year term and offer an annualized yield of more than 12 percent.

Other highlights:

  • Number of registered borrowers up 300 percent
  • Number of loans funded up 175 percent
  • Value of loans funded up 525 percent
  • Number of investors up 300 percent
  • Amount invested per investor up 300 percent

The company is still “the first and only real estate lending marketplace open to non-accredited investors.”

And, someday, North Carolinians might have the chance to join in.