In another regulatory first, Groundfloor Notes is now accessible to all investors, offering short-term secured returns up to 10%

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Aug 02, 2023, 09:45 ET

In honor of Groundfloor's 10-year anniversary, it's introducing a limited-time only 10% Note

ATLANTA, Aug. 2, 2023 /PRNewswire/ -- Groundfloor, the wealthtech platform allowing everyone to build wealth through real estate, is launching its latest alternative investment product, making it easier for investors to earn high yields with less risk than comparable traditional investments^¹. Groundfloor Notes, which first launched in response to volatile market conditions at the start of the pandemic, has received regulatory qualification under Regulation A and is now available for both non-accredited and accredited investors alike. In honor of the company's 10-year anniversary, Groundfloor is announcing a special Note, offering 10% interest with a 24-month maturity period.

How is this possible? Since its launch in 2013, Groundfloor has been known for introducing innovative investment products designed to open private capital markets to everyone. Continuing on the success of its platform, which has consistently delivered 10% annualized yields across its portfolio for 10 years^², Groundfloor has now qualified Notes to make them accessible to everyone. Similar to a secured corporate bond, Groundfloor Notes are publicly issued, non-traded debt securities collateralized and secured by a pool of real estate loans. Combining shorter maturities with a direct security interest delivers an investment with higher yields, more liquidity, and a lower risk profile than many other debt offerings on the market today^³.

"We started Groundfloor 10 years ago to fill an important white space in the portfolios of individual investors," said co-founder and CEO Brian Dally. "The revolution in alternative investments continues delivering freedom from high minimum investments, exorbitant costs and frustrating lockups imposed by every other platform in the industry. Our Notes product expands on our track record of opening up equal opportunity to earn higher yields with lower volatility for the mass market, with features the competition simply cannot match."

This new product complements Groundfloor's core real estate debt product, Limited Resource Obligations (LROs), which have a longer term to maturity, but feature a higher rate of return. For investors looking to diversify their portfolios, Groundfloor Notes offer an attractive option to earn yields equal to or higher than comparable Treasury Bills, with the benefit of a defined maturity in as little as 30 days. Varying terms are available, with yields typically ranging from 5% to 10%. As with LROs, Groundfloor investors pay zero fees to invest in Groundfloor Notes.

Groundfloor Notes are released on the first of each month. Current Notes include:

Groundfloor 30-Day Note: 5% interest
Groundfloor 90-Day Note: 7% interest
Groundfloor 12-Month Note: 8.5% monthly pay interest
Groundfloor 10-Year Anniversary Note: 24-Month note with 10% monthly pay interest (available for a limited time)

At the maturity of each Note, Groundfloor investors are free to withdraw their principal and earned interest or roll over into another investment available on the platform. Groundfloor Notes are not FDIC insured.

To learn more about Groundfloor and begin investing, visit Groundfloor.com or download their apps on the App Store or Google Play today.

About Groundfloor
Celebrating its 10th anniversary in 2023, Groundfloor is an award-winning fintech company that makes real estate investing easy for everyone, whether you're a beginner or a pro. Known for its regulatory prowess and developing completely new, first-of-their-kind financial products for individual investors, the company was the first to receive regulatory qualification to offer real estate debt investments under the newly developed Regulation A rules of the JOBS Act for both accredited and non-accredited audiences alike. The company has won numerous awards for its product innovation and growth, including three years in a row of being on the Inc. 5000 List. Since it launched in 2013, Groundfloor's investors have consistently seen 10% annualized returns across its short-term investment offerings. For more information or to get started investing fractionally in real estate, visit Groundfloor.com.

The information in this release does not constitute an offer to sell the promissory notes ("Groundfloor Notes") or limited recourse obligations ("LROs") identified herein in any state or jurisdiction in which the issuer is not qualified to do so. Securities are offered and sold under Regulation A of the Securities Act of 1933 ("Regulation A") only to investors who are residents of the states in which Groundfloor Finance Inc. ("Groundfloor") has either qualified an offering statement under Tier 2 of Regulation A or made notice of its intent to offer and sell securities under Tier 2 of Regulation A. Groundfloor may also engage in "testing the waters" to determine whether sufficient investor interest exists in order to proceed with the qualification for registration of certain potential investment offerings. Groundfloor, or its affiliates, may also offer securities to accredited investors. Investors who believe they qualify as accredited investors may access additional information about accreditation here.

Media Contact:
Hela Sheth
[email protected]

^¹ Groundfloor's annualized rate of return across repaid LRO investments for the last 12 months is 9.86%
^² Net return calculated across the entire pool of LRO investments sold from July 2013 to July 2023 and current available investments, ranging from 4% - 14%, barring any losses.
^³ Though not FDIC insured, the combination of a security in a pool of loans, shorter holding period, and fixed repayment date present a lower risk profile vs. unsecured long term debt, making them an attractive investment option for those who want to diversify their investment strategies and earn a higher yield than traditional investments, such as bond funds.

SOURCE Groundfloor Finance Inc.