GroundFloor, a real estate investment platform, has added a new investment product that may appeal to individuals interested in shorter-term investments. The new product called GroundFloor Notes, is said to be similar to publicly issued, non-traded secured debt. The security includes a guaranteed rate of return of up to 6% annualized yield with repayment terms as short as 30 days.
GroundFloor says this new offering complements its core real estate debt product, which has a longer-term to maturity, but a higher rate of return. The company believes that it may appeal to certain investors interested in a shorter-term security during a time of heightened volatility induced by the COVID-19 crisis. Minimum investments are as low as $100.
Once the security matures, investors may withdraw their cash or roll it over into another investment listed on the platform. These notes are collateralized and secured by underlying real estate assets.
GroundFloor co-founder and CEO Brian Dally says they know that today’s market turbulence pushes pause for many investors:
“Low volatility, security, and short-term liquidity are the priority,” said Dally. “GroundFloor specializes in short-term securities supported by liens on single family residential investment property. As a result, we can offer more stable investments that still provide attractive returns in the short term as well as the long haul.”
For the past seven years, investors in GroundFloor’s other secured real estate based investments have earned average annualized net returns of 10.69%. Of course, past returns are no guarantee on future results. GroundFloor is one of a few real estate investment platforms open to both accredited and non-accredited investors.
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