Invest in a portfolio of highly desirable wines
Invest in real estate loans
Investments
$35,000
Minimum investment levels start at $35,000 for the Premier Cru tier and go up to £1 million for the Black Tier.
Investments
$10
Groundfloor enables individuals to begin investing in real estate with a minimal initial requirement of only $10.
Moderate Risk
3/5
Investing with Cult Wine Investment involves market risks, potential fluctuations in wine prices, and variable liquidity, which could impact the value and sale of the assets.
Moderate Risk
3/5
Investing on Groundfloor involves credit risk from borrower default, market risk due to real estate market fluctuations, liquidity risk as investments are tied up until loan maturity without a secondary market for early exit, regulatory risk from changes in laws affecting real estate and crowdfunding, and platform risk related to operational disruptions or cybersecurity threats.
Minimum Liquidity
1/5
Cult Wine Investment allows for portfolio liquidation, typically within 8 to 12 weeks, through sales to global trade, collectors, and consumers.
Minimum Liquidity
1/5
On Groundfloor, liquidity is tied to the term of the real estate loans, which range from 6 to 18 months. Investors' funds are committed until the loan matures and the borrower repays.
Receive new reviews from Fintorial
Moderate Return
8 %
Cult Wine Investment has achieved a compound annual growth rate of 8% since 2009.
Moderate Return
10.72 %
Groundfloor's loans are graded from A to G, with interest rates ranging from 5.5% to 25.5% annually, based on risk. A diversified portfolio across all repaid loans to date would have earned a 10.72% annualized net return.
Long-term Investment
3-10 years
Cult Wine Investment advises a 3-5 year minimum investment term, ideally extending to 5-10 years for optimal results.
Short-term Investment
6+ months
Groundfloor investments have loan terms ranging from 6 to 18 months.
Who can invest
International
Cult Wine Investment accepts investors worldwide with no geographic restrictions. Minimum age requirement: 18 or legal drinking age in your country.
Who can invest
International
Groundfloor is accessible to investors both in the US and internationally. However, for non-US investors, a minimum transfer-in amount of $5,000 is required.
Moderate Volatility
3/5
Fine wine values can fluctuate due to various factors, resulting in lower volatility compared to traditional markets, yet still subject to changes in market conditions.
Moderate Volatility
3/5
The assets on Groundfloor, which are short-term real estate loans, generally exhibit lower volatility compared to stocks, as their value is more closely tied to specific real estate projects and less to daily market swings.
Regulation and audits
Not Regulated
Wine investment is not regulated by financial authorities such as the Financial Conduct Authority or the Securities Commission.
Regulation and audits
SEC Regulated
Groundfloor offers securities under Regulation A of the Securities Act of 1933, allowing it to sell securities to residents in states where it's qualified or announced its intent under Regulation A's Tier 1 or Tier 2.
Insurance
Yes
Cult Wine Investment's stored wines are fully insured against physical loss or damage, kept in a secure facility near London.
Insurance
No
Investments on Groundfloor are not insured by any government agency such as the FDIC or SIPC, nor are they guaranteed by Groundfloor. This means investors fully assume the risk of borrower default or project failure, without any insurance safety net.
Payouts
Interest
Groundfloor pays interest on funded loans. Interest accrues from the investment date until the loan is repaid. Loans may have monthly or deferred payment terms, with monthly interest payments processed once a month and lump sum repayments for deferred loans.
Withdrawals
To receive funds from Cult Wine Investment, investors sell their wine, typically within 8-12 weeks, and then the proceeds are returned to them.
Withdrawals
Investors on Groundfloor get their money back, including principal and accrued interest, once the borrower repays the loan, typically within 6 to 18 months. Repayments are processed within 7 days, with funds made available in the investor's dashboard for withdrawal or reinvestment.
Extra Fees
No
Cult Wine Investment charges an annual fee based on the investment tier, with the Premier Cru tier at 2.75%, Grand Cru at 2.50%, Cult Cru at 2.25%, and Black Tier at 2%. Fees are divided into monthly payments calculated from the portfolio's end-of-month value, rather than an annual lump sum.
Extra Fees
No
Investors on Groundfloor pay no fees. Instead, borrowers are charged an underwriting fee by Groundfloor, ranging from 2% to 4.5% of the loan's principal amount.
Taxes
Annual Statement
Cult Wine Investment assists with tax documentation upon request or through a Relationship Manager for higher-tier investors.
Taxes
Tax Form
Groundfloor provides tax support by issuing a 1099-INT form for interest income over $10, a 1099-B for principal losses, and a 1099-MISC for promotional credits over $600.