Introducing Partner Notes, Recurring Monthly Interest Payments and 10% Interest Rates
The New High-Yield Monthly Income Solution
Partner Notes
Higher Yields with Consistent Cash Flow
Generate monthly passive income secured by real assets
and cash flows from Groundfloor’s real estate partners.
and cash flows from Groundfloor’s real estate partners.
- Monthly interest payments
- 10% interest rate
- Backed by real estate
A New Notes Offering
Introducing Partner Notes
Through Partner Notes, accredited investors can generate high-yield passive income by funding the real estate acquisitions of Groundfloor’s real estate partners. Secured by a pool of real assets and cash flows, every Partner Note is designed to exclusively fund the acquisition of real estate made by Partners.
While all Partner Notes share the same general structure, each Partner Note is uniquely designed to reflect the nuances of its Partner. Please review the terms and details of a specific Partner Note
for more information.
While all Partner Notes share the same general structure, each Partner Note is uniquely designed to reflect the nuances of its Partner. Please review the terms and details of a specific Partner Note
for more information.
Notes, Meet LROs
Partner Notes vs Groundfloor Notes
Partner Notes can be viewed as a hybrid of Groundfloor Notes and LROs. Like 12- and 24-month Groundfloor Notes, Partner Notes offer monthly interest income, and like LROs, Partner Notes are backed by loans made to Groundfloor’s real estate partners.
Because Partner Notes are issued against loans, they are structured as Payment Dependent Notes – interest and principal payments on Partner Notes depend on loan payments made to Groundfloor by their respective partners. Like conventional notes, investments in Partner Notes are directly secured by specific real estate assets of the Partner.
Because Partner Notes are issued against loans, they are structured as Payment Dependent Notes – interest and principal payments on Partner Notes depend on loan payments made to Groundfloor by their respective partners. Like conventional notes, investments in Partner Notes are directly secured by specific real estate assets of the Partner.
Robust Protections
Backed By Real Estate
Investments into Partner Notes are backed by real estate assets of Groundfloor’s partners. By design, all Partner Notes are structured to 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.
Over-collateralization provides a layer of protection against the potential devaluation of secured assets, and in the event of default, allows Groundfloor to liquidate secured assets to recover not only principal but also accrued interest.
Over-collateralization provides a layer of protection against the potential devaluation of secured assets, and in the event of default, allows Groundfloor to liquidate secured assets to recover not only principal but also accrued interest.
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 at 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.
Partner Notes are Groundfloor’s new solution for a 24-month investment that pays monthly interest. The Partner Notes product allows Groundfloor to maintain higher yields than we would have otherwise been able to provide, which is a feature demanded by our 24-month Groundfloor Note investors. Partner Notes are the new and improved 24-month product.
