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Exclusively for accredited investors
Groundfloor Partner Notes
Partner Notes are 12-month Notes secured by the assets of Groundfloor’s fully vetted, trusted partners.
Offering competitive rates and monthly payouts, Partner Notes are the newest product from Groundfloor and a perfect compliment to our flagship LROs and popular Notes products. Each Partner Note is uniquely structured to offer a reduced risk investment opportunity to accredited investors that is backed by real assets.
You can easily invest in Partner Notes through the “Notes” tab on the Groundfloor investment page.
Monthly Income
Accredited Investors Only
Over Collateralized Investment
Competitive Rates
Trusted Partners
Secured by Real Assets
A New Note Offering
What Are Partner Notes?
Similar to longer-term Groundfloor Notes, Partner Notes offer monthly interest income with deferred principal repayment upon maturity at the end of their terms. While Groundfloor Notes are issued and secured directly by Groundfloor and its assets, Partner Notes are issued by Groundfloor, but are secured by the assets of Groundfloor’s trusted partners. While we fully vet these trusted partners, at no point do they have access to any investor-related information.
Under the hood, each Partner Note is issued against a corresponding loan made to a third-party partner by Groundfloor. The duration and payment terms of the underlying loan mirror those of its Partner Note, and Groundfloor passes interest and principal payments to you, the Partner Note investors.
This structure is similar to that of LROs: Groundfloor issues LROs against loans made to real estate developers by Groundfloor and passes deferred interest and principal payments to LRO investors.
While all Partner Notes share the same general structure, each Partner Note is uniquely designed and structured to reflect the nuances of its corresponding Partner. Please review the terms and details of a specific Partner Note for more information.
Under the hood, each Partner Note is issued against a corresponding loan made to a third-party partner by Groundfloor. The duration and payment terms of the underlying loan mirror those of its Partner Note, and Groundfloor passes interest and principal payments to you, the Partner Note investors.
This structure is similar to that of LROs: Groundfloor issues LROs against loans made to real estate developers by Groundfloor and passes deferred interest and principal payments to LRO investors.
While all Partner Notes share the same general structure, each Partner Note is uniquely designed and structured to reflect the nuances of its corresponding Partner. Please review the terms and details of a specific Partner Note for more information.
Earn Higher Yields
What Makes Them Different
While investments sourced from Partners are specific opportunities such as a Cash Flow Advance made to a vacation rental owner, Partner Notes represent loans made directly to the Partners themselves to fund their growth. Each loan underlying a Partner Note is highly structured and designed to protect Groundfloor and our investors.
This structure is similar to that of LROs: Groundfloor issues LROs against loans made to real estate developers by Groundfloor and passes deferred interest and principal payments to LRO investors. While all Partner Notes share the same general structure, each Partner Note is uniquely designed and structured to reflect the nuances of its corresponding Partner. Please review the terms and details of a specific Partner Note for more information.
This structure is similar to that of LROs: Groundfloor issues LROs against loans made to real estate developers by Groundfloor and passes deferred interest and principal payments to LRO investors. While all Partner Notes share the same general structure, each Partner Note is uniquely designed and structured to reflect the nuances of its corresponding Partner. Please review the terms and details of a specific Partner Note for more information.
Everything You Need to Know
Learn More About
Partner Notes
Investments into Partner Notes are backed by real estate assets of Groundfloor Partners. By design, all Partner Notes must be over-collateralized, meaning for every dollar invested into a Partner Note, there is more than a dollar’s worth of assets securing the investment either through liens, direct title ownership, or equity ownership.
Over-collateralization provides a layer of protection against potential devaluation of assets that secure Partner Notes, and in the event of default, allows Groundfloor to liquidate secured assets to recover not only principal but also accrued interest.
Every Partner Note undergoes extensive due diligence across the Partner, their business, their offered products, and how the underlying loan is secured and collateralized.
The design of each Partner Note aims to offer market-competitive returns for Groundfloor investors, to implement tailored protections to protect investors, and ultimately, to provide essential capital for the Partner to grow their business.
Each Partner goes through a detailed due diligence process. We evaluate the product, collateral, market, company performance and fundraising history. These factors inform the Investment Committee, who approves the Partner for further product exploration.
Interest will be received at the beginning of each month similar to how the current monthly payment process occurs. Sufficient reserves will be required to prevent collection delays and any default events will be communicated promptly.
Yes, like LROs, Partner Notes may go into default depending on the performance of the Partner and their ability to meet monthly interest requirements and to repay principal a maturity.
Offerings will depend on interest from investors and capital needs of our Partners. We are currently planning to run this program for three months to monitor traction and interest. If we meet our Partner’s capital requirements, we will need to then find new Partners to bring more opportunities to the platform.
The 24-month Groundfloor Note was launched in Q2 2022 and was met with great demand from Groundfloor investors alongside Groundfloor Notes of various durations.
With strong continued demand for Groundfloor Notes of shorter durations, and as we optimize our working capital management practices, Groundfloor currently does not require 24-month Notes offered at market-competitive rates to originate new loans and fund LROs.
Have more questions? Contact us at [email protected].
