Groundfloor’s Convertible Note is reopening to accredited investors on June 22, 2026. This limited-capacity offering gives investors an 11.5% fixed annual interest rate, paid monthly, over a two-year term.
Convertible Note Opens June 22
11.5% Fixed Annual Returns • Monthly Interest Payments • Limited Capacity
For investors looking for a high-yield fixed income alternative, the Convertible Note offers a defined return structure, monthly cash flow, and flexibility at maturity. Investors who hold the Note through maturity can achieve a 1.23x MOIC (Multiple on Invested Capital) through interest payments alone.
What Is The Groundfloor Convertible Note?
The Groundfloor Convertible Note is a Convertible Debt Note, or sometimes referred to as a CDN. This is a private market investment that pays fixed interest over a set term and offers the option to convert into equity at maturity. After six months, investors may elect to convert early if they wish.
The Convertible Note is designed for accredited investors seeking monthly income with the option for future participation in Groundfloor’s growth. Unlike traditional equity investments, this Note provides 11.5% fixed monthly interest payments throughout the two-year term with the option to convert to equity after six months or at maturity.
At maturity, investors have multiple options. They may convert their Note into Groundfloor equity with benefits such as discounted and bonus shares, roll their investment into a future Convertible Note offering, or withdraw their funds.
Why Accredited Investors Are Interested in the Convertible Note
Many of our accredited investors are seeking alternatives to traditional fixed income investments, especially as market conditions continue to shift. The Convertible Note may appeal to investors who want monthly income, a defined investment term, and optionality at maturity. Groundfloor has been offering the Convertible Note since 2017, repaying every investor in full and on time to date.
The Note offers a different payment and term structure than many other private market investments. Instead of committing capital to a long-term equity investment with uncertain timing, investors receive fixed monthly interest distributions during the two-year term.
How the Convertible Note Works
The Groundfloor Convertible Note offers:
- 11.5% fixed annual interest
- Monthly interest distributions
- Two-year investment term (maturity date of July 31st, 2028)
- 1.23x MOIC through interest payments if held to maturity
- Equity conversion benefits at maturity
- Open only to accredited investors
The minimum investment is $25,000. After the initial investment, investors may add additional capital in $1,000 increments throughout the offering period. To date, Groundfloor has paid more than $36.5 million to Note investors and has maintained a record of paying investors 100% in full and on time, without a single missed payment.
What Happens at Maturity?
At the end of the two-year term, investors can choose from several options.
They may convert their Note into Groundfloor equity, with benefits such as discounted share pricing, bonus shares, and exclusive first access to new accredited private market offerings. They may also elect to roll their investment into a future Groundfloor Convertible Note offering, subject to availability and offering terms. Or, they may withdraw their funds.
This flexibility paired with the high fixed yield are why the Convertible Note is attractive to accredited investors who want income now while preserving optionality later.
Key Details for the June 22 Opening
The Convertible Note opens on June 22, 2026. Because this is a limited-capacity offering, interested accredited investors should prepare in advance. The fund will automatically close when the $15M capacity is reached.
New investors must create a Groundfloor account and can easily confirm their accreditation in a few steps before investing. Existing investors with confirmed accreditation status may invest when the Note officially opens on June 22.
Fund transfers typically take 2-3 business days to settle. Investors who are interested in participating are encouraged to transfer funds before the launch date so they are ready to deploy capital when the offering opens.
Is the Convertible Note Right for You?
The Convertible Note may be a fit for accredited investors seeking monthly income, a high fixed-rate return, and exposure to private market investing.
It may be especially relevant for investors who want a fixed income alternative with a defined two-year term and the potential to convert into equity at maturity.
As with any private market investment, investors should carefully review the offering materials and consider their own financial goals, risk tolerance, and liquidity needs before investing.
Learn More About Groundfloor’s Convertible Note
Groundfloor’s 11.5% Convertible Note opens June 22, 2026, for accredited investors. Investors with a Groundfloor account who are subscribed to emails will be notified via email when it opens. Visit the Groundfloor investor portal to review the offering materials, confirm eligibility, and prepare your account before the offering opens.
What’s the difference between a Groundfloor Note and a Convertible Note? Are the risk profiles different?
While both are investment products offered by Groundfloor, they have different structures, risk profiles, and potential return opportunities.
- Groundfloor Notes are short-term investments (typically 30 days to 12 months) that offer fixed returns and defined maturity dates. They are backed by a diversified pool of underlying real estate loans, providing investors with predictable income and relatively quick capital turnover. Because of their asset backing and shorter duration, Groundfloor Notes are generally considered lower risk and offer correspondingly lower yields.
- Groundfloor Convertible Notes are longer-term investments with a two-year term that pay a fixed 11.5% annual interest rate through monthly distributions. Unlike Groundfloor Notes, repayment depends on Groundfloor’s ability to repay as the issuer rather than on a pool of underlying real estate loans. Convertible Notes also include the option to convert into Groundfloor equity at maturity, which may provide additional upside through discounted pricing and bonus shares. Historically, every Convertible Note investor has been repaid in full and on time since launching the offering in 2017.
In simple terms, Groundfloor Notes are designed to be more stable and predictable, while Convertible Notes involve greater risk because they are tied more directly to Groundfloor’s overall performance. In exchange for that additional risk, Convertible Notes offer a higher fixed yield and the potential for equity participation and perks such as discounted and bonus shares.
