A well-known income-investing newsletter just put Groundfloor’s new Bond Note under the microscope — and the verdict was overwhelmingly positive.
Samuel Smith, founder of High Yield Investor (a subscription research service published on Seeking Alpha, one of the most-read platforms in the investing world), devoted a full write-up to Groundfloor’s fixed-income lineup, with a particular focus on the newly launched Bond Note. For members of a paywalled newsletter that specializes in vetting high-yield income opportunities across public and private markets, that kind of attention is notable — and worth unpacking for anyone considering Groundfloor for the first time.
Here’s a look at what Smith found, why it matters, and why the Bond Note he’s so bullish on is quickly filling up.
Who Is Samuel Smith, and Why Does His Take Matter?
Smith runs High Yield Investor under Leonberg Capital, curating two model portfolios (a Core Portfolio and a more conservative Retirement Portfolio) for income-focused investors. It’s the kind of publication readers pay to access precisely because it doesn’t just repeat press releases — it digs into balance sheets, capital structures, and track records before recommending anything.
Smith disclosed that he and his Retirement Portfolio have personally held Groundfloor’s Signature Notes since December, has met directly with Groundfloor’s team, including CEO and co-founder Brian Dally, and came away comfortable enough to negotiate a member-exclusive bonus for his subscribers who want to invest.
The Bond Note: “My Preferred Opportunity”
Smith’s headline conclusion was straightforward — of Groundfloor’s current offerings, he considers the Bond Note the more attractive risk-reward proposition for investors who qualify. The features that stood out to him:
- A fixed 9.5% annualized rate over a six-month term
- Interest and principal paid together in one lump sum at maturity
- An early-call premium — if the note is repaid ahead of schedule under qualifying conditions, investors receive their principal, all accrued interest, plus an additional 0.5% credited as reinvestment capital
He was candid about the eligibility bar — the Bond Note is open to accredited investors only, requires a $10,000 minimum, and is capped at a $10 million total raise — but for the investors it’s built for, he described 9.5% annualized on a six-month commitment, with upside if called early, as a genuinely compelling combination of yield and short duration.
That short window is closing fast. The current Bond Note offering is already more than 55% funded, and at the current pace, it’s on track to sell out well before its scheduled close on September 3, 2026.
A Track Record Built to Withstand Cycles
Part of what earned Groundfloor this kind of scrutiny — and this kind of endorsement — is the numbers behind the platform. Smith highlighted several data points in his analysis:
- Groundfloor has originated more than $2.2 billion in real estate loans since launching in 2013
- Its Notes program has paid out more than $36.5 million in interest to investors
- Every single Note issued since the program began in 2018 has paid 100% of principal and contracted interest on time — with zero missed payments, late payments, or skipped distributions
- That record held up through inflation spikes, aggressive Fed tightening, a regional banking crisis, and COVID-19
Smith also pointed to Groundfloor’s recent capital activity as evidence of continued institutional confidence and a strengthening capital buffer beneath Note investors.
For a platform built to bring institutional-style, short-term, first-lien real estate lending to everyday investors, that combination of scale, consistency, and continued capital access is exactly the kind of track record third-party analysts look for.
Not the Only Independent Endorsement
Smith’s deep dive joins a growing body of independent, third-party coverage of Groundfloor. Alts.co, a well-followed publication in the alternative investing space, has also published its own comprehensive review of the platform — you can read the Alts.co review of Groundfloor here.
The Signature Note: A Lower-Minimum Option for Every Investor
For investors who aren’t accredited, or who simply prefer monthly cash flow, Smith pointed to the Signature Note as his go-to recommendation — and it’s the product his own Retirement Portfolio has held since last December. It offers:
- A fixed 8.5% annual rate (APY)
- Monthly interest distributions
- A $1,000 minimum investment
- Open to both accredited and non-accredited investors
Smith even ran the math on getting started: combine the $1,000 minimum with his new-investor bonus, and a first-time investor’s effective one-year yield jumps into the low-20% range — what he called an exceptional way to trial the platform before committing more capital.
Looking Ahead: The Music Royalties Portfolio
Smith also flagged that Groundfloor recently expanded beyond real estate lending with the launch of a music royalties investment portfolio — noting he plans to cover it in more depth separately given its longer offering window. If you want to get ahead of that, you can learn more about the Music Royalties Portfolio here.
Independent, subscription-based research services don’t put their reputations behind a platform lightly — and Samuel Smith’s willingness to negotiate a member-exclusive bonus, hold Groundfloor Notes in his own personal and model portfolios, and recommend the Bond Note as his preferred current opportunity says a lot about where Groundfloor stands today: a platform with a decade-plus track record, a perfect payment history on its Notes program, and real institutional capital backing continued growth.
With the Bond Note already over 55% subscribed and on pace to close well ahead of its September 3 deadline, the window to participate at the current 9.5% rate is narrowing.
Invest in the Bond Note before it closes
See all current Groundfloor Notes
This article summarizes and responds to third-party commentary published by High Yield Investor (Leonberg Capital) on Seeking Alpha. Investors be members of High Yield Investor to redeem the new investor bonus mentioned. This article is provided for informational purposes only and does not constitute investment advice. Past performance does not guarantee future results. Investing involves risk, including possible loss of principal. Please review all offering documents and consult a financial advisor before investing.
