Investors looking for passive income through real estate investing now have a new option. Groundfloor’s 9.25% Preferred Note offers accredited investors access to fixed income backed by real estate loans, combining predictable returns with asset-backed security.
This limited offering opens April 2–30, 2026, giving investors a short window to participate.
What Is Groundfloor’s Preferred Note?
Groundfloor’s Preferred Note is a fixed-income investment designed for accredited investors seeking consistent monthly passive income. Unlike traditional real estate investing, this structure provides a simplified way to participate in private credit backed by residential real estate.
Private credit in general has generated ~8.6% net IRR over 10 years, outperforming leveraged loans. Global AUM for private credit is expected to hit the $3 trillion mark by 2028. The Groundfloor Preferred Note gives accredited investors direct access to this asset class through a short-duration, income-generating structure.
Preferred Note investors earn a 9.25% fixed return, paid monthly over a 6-month term, without the need to directly manage properties.
Key Features of the 9.25% Preferred Note
- 9.25% fixed annual return, paid monthly
- 6-month investment term for short-duration exposure
- $10,000 minimum investment
- $10 million total offering cap
- Investment window: April 2–30, 2026
- Backed by a diversified pool of real estate loans
This structure is designed for investors seeking predictable income while maintaining exposure to real estate-backed assets.
How This Real Estate Investment Works
The Preferred Note is supported by a pool of loans originated and managed by Groundfloor. These loans typically fund residential real estate projects, including renovations and property development.
Because each loan is secured by real estate collateral, the investment benefits from an additional layer of protection compared to unsecured fixed-income products.
Groundfloor has originated and managed these loans since 2013, maintaining a perfect track record for Notes, repaying full principal and interest on this investment.
Why Accredited Investors Are Moving Into Private Credit and Real Estate Fixed Income
As more investors search for passive income ideas and alternatives to traditional markets, private credit and real estate-backed investments have gained traction. In fact, United States high-net-worth investors injected $48 billion into private-credit funds in the first half of 2025, surpassing the full-year 2023 total.
Groundfloor’s Preferred Note offers several advantages:
- Consistent monthly income vs. market-dependent returns
- Short-term commitment compared to long-term real estate holdings
- Access to real estate investing without direct ownership
- Exposure to private credit markets, a growing asset class
For investors asking how to invest in real estate without buying property, this structure provides a compelling solution.
Who Can Invest?
The Preferred Note is available to accredited investors. For non-accredited investors, Groundfloor offers an attractive alternative with returns up to 8.25% and flexible 1-, 3-, and 12-month terms, so you can still build steady passive income backed by real estate.
To participate:
- Create or log in to your Groundfloor account
- Verify accredited investor status
- Navigate to “Specialty”
- Choose the 9.25% Preferred Note option
Because availability is limited and offerings are periodic, early action is recommended.
Important Dates and Availability
- Offering opens: April 2, 2026
- Offering closes: April 30, 2026 (or when fully subscribed)
- Total capacity: $10 million
Due to high demand for fixed income real estate investments, the offering may fill quickly.
Start Earning Passive Income with Real Estate
Groundfloor’s 9.25% Preferred Note provides a unique way to generate passive income through real estate-backed lending without the complexity of property ownership.
With the Preferred Note, accredited investors can access:
- High-yield fixed income
- Reliable monthly cash flow
- Asset-backed security
