Groundfloor Alternatives for Real Estate Debt Investors

In the filings

Is Groundfloor a safe investment, and what are the alternatives?

Groundfloor's own Securities and Exchange Commission (SEC) filings raise questions about whether it is a safe investment. Groundfloor Finance Inc.'s annual report (Form 1-K, filed April 1, 2026) states an auditor's "substantial doubt" about the ability to continue as a going concern. So does the semiannual report of its Notes issuer, Groundfloor Yield, LLC (Form 1-SA, filed October 1, 2026). The wording is quoted below.

At December 31, 2025, 73.4% of Groundfloor Finance's loans to developers, at amortized cost, were more than 90 days past due.

Investors who still want short-term real estate debt look at income funds from Arrived, Fundrise and Concreit. Other options are EquityMultiple's Alpine Notes or listed mortgage real estate investment trusts (REITs). Private lenders' own funds, reachable through sponsor marketplaces such as Relli, are a different product with longer terms.

What did Groundfloor's auditors say about going concern?

Groundfloor's fiscal 2025 reports for both the parent and the Notes issuer state substantial doubt about going concern. The exact wording:

• Groundfloor Finance Inc., Form 1-K filed April 1, 2026: the auditor's report says the company "has incurred losses and negative cash flows from operations since its inception, resulting in substantial doubt about the Company's ability to continue as a going concern." The 1-K reports a 2025 net loss of $10.4 million and an accumulated deficit of $64.8 million at December 31, 2025.
• Groundfloor Yield, LLC, Form 1-SA for the period ended June 30, 2026, filed October 1, 2026: "for the fiscal year ended December 31, 2025, our auditors expressed in their opinion substantial doubt about our ability to continue as a going concern," and "There is substantial doubt that the Company will continue as a going concern for at least one year following the date these financial statements were issued without additional financing."

The parent's auditor did not modify its opinion. A going-concern statement flags a risk over the next year. It is not a bankruptcy filing.

How it works

How does Groundfloor work, and is it legit?

Groundfloor is a company that lends to real estate developers and sells investors securities tied to those loans under Regulation A. It files annual and semiannual reports with the SEC. Groundfloor Finance Inc., a Georgia corporation, makes loans of "between $30,000 and $2,500,000, with maturities ranging from six to eighteen months," per its 1-K.

Investors buy Limited Recourse Obligations (LROs) tied to specific loans, or Groundfloor Notes and Stairs Notes issued through Groundfloor Yield, LLC.

• The securities are sold under Regulation A, only to residents of states where Groundfloor or an affiliate has qualified an offering or filed notice.
• Notes are issued "to accredited and non-accredited investors." Some newer products, such as the 12 Mo Preferred Note, are labeled accredited-only.
• On October 20, 2026, the home page listed individual loans from $10 and Notes from $100. It stated: "There are no fees to invest in Notes or Loans."
• The range now reaches beyond real estate, into Pre-IPO Stock Finance and Music Royalties portfolios.

Groundfloor's site says, without a date, that it has handled more than $2.2 billion in investments for over 300,000 investors since 2013. Legitimate and low-risk are different questions.

What returns does Groundfloor advertise?

Groundfloor advertises stated yields of up to 9.0% on Notes, not realized results. On October 20, 2026, its home page said Notes "Earn up to 9.0% fixed APY." It also showed a "10-18%" target internal rate of return (IRR) for individual loans. Both are figures stated by Groundfloor, not guaranteed. What an investor actually earns depends on whether each borrower repays.

Late loans

What happens when a Groundfloor loan is late or defaults?

When a Groundfloor loan goes unpaid, the investor holding the matching LRO bears the loss. The 1-K says: "The Company is not responsible for repaying 'Limited recourse obligations' associated with uncollectable Loans." LROs and their loans move to nonaccrual status at 180 days delinquent.

Debt options

What are the alternatives for short-term real estate debt?

The closest alternatives for short-term real estate debt are Arrived's and Fundrise's income funds, then Concreit, Alpine Notes and listed mortgage REITs. They are ordered by how closely each matches what Groundfloor sells: short-term real estate debt with a low minimum, open to non-accredited investors. Private lenders' funds come last because they are a different product.

Versus Fundrise

How does Groundfloor compare with Fundrise?

Groundfloor and Fundrise both take small amounts from non-accredited investors, but they sell different things. Groundfloor ties your money to specific developer loans or a stated note rate. Fundrise sells shares of its own funds, including the Fundrise Income Real Estate Fund.

Groundfloor charges no fees to invest, and LROs pay out as each loan is repaid. Fundrise charges fees and offers quarterly repurchases that may be filled only in part. On finances, Groundfloor's latest reports carry the going-concern statements above. Fundrise's parent, Rise Companies, reported $3.4 billion of assets under management and a first-half 2026 net loss of $7.1 million in its June 30, 2026 Form 10-Q.

Private lenders

Can you lend through a private lender's fund instead?

Accredited investors can lend through a private lender's own debt fund. These funds are usually Regulation D private placements, with terms set in each fund's documents. Relli's analysis of SEC Form D data found 540 pooled real estate fund offerings from October 1, 2025 to September 30, 2026. Their median stated minimum was $50,000. The guide to private credit real estate explains how real estate debt investing works.

Willow Wealth, formerly Yieldstreet, also sells private credit, mostly to accredited investors from about $10,000, according to Finder. A CNBC investigation published December 5, 2025, tallied at least $208 million of investor losses on past Yieldstreet offerings. The Yieldstreet alternatives guide covers it.

How we compared

How did Relli check Groundfloor and the alternatives?

Relli read Groundfloor's 1-K and 1-SA, quoting them word for word, and groundfloor.com on October 20, 2026. Each alternative was checked the same day for what you hold, who can invest, the minimum and the exit. NerdWallet and Finder are named where used.

Options are ordered by closeness to Groundfloor's short-term debt model, not scored or ranked. No platform paid to be included, and Relli, which publishes this page, is described with its limits.

Before you lend

Can you invest with Groundfloor through a self-directed IRA?

A self-directed IRA can hold many alternative investments, but ask Groundfloor and your custodian whether a given product is supported. The IRS keeps no list of approved investments, though IRAs cannot hold collectibles. The SEC and the North American Securities Administrators Association (NASAA) warn that self-directed IRA custodians do not evaluate the quality of the investments they hold. The guide to the self-directed IRA covers the rules.

What should you ask any real estate debt platform?

Any real estate debt platform should give you written answers to these five questions before you lend.

1. Who is the borrower, what is the lien position, and what is the loan-to-value?
2. If the borrower defaults, who absorbs the loss: you, the platform or the fund?
3. Where does the platform report late loans, and what share is more than 90 days past due today?
4. What do the platform's own latest financial statements and auditor's report say?
5. How and when can you get money out, and what fees or limits apply?