Notes:
Rollover Notes are a convenient and potentially more profitable way to continuously invest in short-term real estate-backed loans through Groundfloor, ideal for those seeking predictable interest income without the need for constant manual reinvestment.
Groundfloor’s Rollover Notes are a new investment product designed to simplify the reinvestment process for investors. Here’s how they work:
What Are Rollover Notes?
Rollover Notes allow investors to automatically reinvest their principal when the note matures, providing a hands-off, continuous investment strategy. Like the Auto Investor Account, these notes automatically roll over, meaning that once a note is repaid, the principal is reinvested into a new note, unless the investor cancels the reinvestment.
How Do They Work?
- Issued Monthly: New Groundfloor Notes (including Rollover Notes) are issued on the 1st of each month.
- Automatic Reinvestment: When your Rollover Note is repaid (typically at the end of a month), the principal is automatically reinvested in a new Rollover Note with the same term length.
- Interest Payment: The interest earned is paid out to your account monthly, and only the principal is rolled over.
- Liquidity: Investors have the option to cancel their investments within the 30-day period before the next note is issued.
How to Invest in Rollover Notes
To invest, go to your Groundfloor investor dashboard, select the “Notes” tab, and look for the “Rollover” label on specific notes (marked with a green “G”). These notes offer a higher return than standard Groundfloor Notes and even money market accounts.
Benefits of Rollover Notes
- Higher Returns: Rollover Notes offer slightly higher returns than standard Groundfloor Notes, potentially making them an attractive option for investors looking for short-term, predictable income.
- Convenience: With automatic reinvestment, you don’t need to log in every month to reinvest your earnings, making it a “set-it-and-forget-it” approach.
- Flexible Exit: The ability to cancel your investment within 30 days provides liquidity, ensuring that you’re not locked into long-term commitments.
Comparison to Other Options
Rollover Notes offer a competitive return, slightly higher than both standard Groundfloor Notes and money markets, making them appealing for short-term, high-yield real estate investments.
