Real Estate Bonds 2026: What 15 Bond Issuers Selling to Individuals Owe, Hold and Disclose

What a real estate bond is (and is not)

Search for “real estate bonds” and you get bond-market primers and mortgage-backed securities. The product a US individual is actually offered under that name, in an app or a newsletter, is narrower: a note sold directly to the public by a small company under Regulation A, the SEC exemption for offerings of up to $75,000,000 a year in Tier 2. The issuer uses the money to make or buy real estate loans, or to own buildings, and pays bondholders out of what comes back.

Three features follow, and they are all in the filings below:

• Who owes you. The issuer, usually a single-purpose company with few assets beyond its loans. GK Investment Property Holdings II sold “7% unsecured bonds at a purchase price of $1,000 per bond”; Red Oak Capital Fund VI offered “8.00% Series A and 8.65% Series Ra Unsecured Bonds”. Some are secured, but by what matters: MCI Income Fund VII says its bonds “are secured by the underlying liens from the Loans made to related parties.”
• When you get paid. Either on demand (Compound, Worthy) or at a maturity date (GK, Red Oak, MCI). On-demand bonds work only while new money and loan repayments exceed requests; maturity bonds work only if the issuer can sell or refinance in time.
• How much you may buy. A non-accredited investor in a Tier 2 offering of unlisted securities may invest no more than “ten percent (10%) of the greater of such purchaser's” annual income or net worth.

Bond interest is reported as ordinary interest: Compound tells holders that “investors with over $10 of realized interest will receive a form 1099-INT.”

The 15 issuers at a glance

Latest figures in each issuer's most recent report on EDGAR as of October 5, 2026. “GC” means the issuer's report states substantial doubt about its ability to continue as a going concern.

Demand bonds: what happens when everyone can leave and the loans cannot

Compound and Worthy sell bonds you can cash out on request, and lend the money for months or years. Compound's semiannual report puts it plainly: “The Company’s outstanding bonds remain payable on demand.” At August 31, 2026, Compound Real Estate Bonds had $15,839,877 of bonds outstanding, principal and interest, “but only $1,714,889 in cash and cash equivalents with which to satisfy potential redemptions”, plus $9,736,287 in mortgage and real estate assets. At December 31, 2025 its liabilities exceeded its assets by $3,047,894. In the first half of 2026 it earned $740,269, less than the $746,448 of interest it accrued to bondholders, and lost $219,622. Its Regulation A offering ended on September 19, 2025, and it has “no plans to raise additional capital.” Its sister, Compound Real Estate Bonds II, had $14,034,406 of cash at June 30, 2026 but owed $21,137,844 against total assets of $19,761,427; we covered its first audited year in the CREB II annual report, and the original in our Compound Real Estate Bonds review.

Worthy shows the end of the same road. Three older Worthy companies lent to small businesses, partly against real estate, and each told bondholders that loan defaults had caused “illiquidity” and stopped redemptions while interest kept accruing:

On the two dissolved companies, the filing says each “at the time of dissolution, had no assets, and therefore there will be no further distributions”. A plan for an affiliated company to buy Worthy Property Bonds and Worthy Property Bonds 2 and use the proceeds to repay these bonds ended on February 4, 2026, when the buyer “exercised its unilateral right to terminate” the agreement. The two Worthy Property Bonds companies still pay 6.5%, but both report going-concern doubts and liabilities above assets: about $6,681,000 at Worthy Property Bonds and $4,052,000 at Worthy Property Bonds 2 on March 31, 2026. One more detail from the Worthy Property Bonds 2 annual report: it says in one place the company “sold approximately $37 million” of bonds by March 31, 2026, and in another “approximately $55 million”. Its bond liabilities were $23,866,131.

Maturity bonds: the refinancing has to happen on time

GK Real Estate's bond companies sold fixed-term bonds to buy shopping centers and lend to affiliated projects. The pattern in their filings is a maturity met by selling or refinancing property, sometimes late:

• GK Investment Holdings extended its first bonds in 2022 through an exchange accepted by holders of about 80.10% of them. At the September 30, 2025 maturity it paid $2,000,000, left $24,201,550 unpaid, and reported that on October 1, 2025 it “was in default”. After borrowing $8,400,000 from a related party at the greater of prime plus 4.00% or 12.25%, and refinancing a property, it reported on November 13, 2025 that “the bonds were fully redeemed.” It also borrowed $614,525 from its sister bond issuer, GK Investment Holdings III.
• GK Investment Property Holdings II sold $16,538,000 of 7% bonds; $10,793,000 were outstanding at December 31, 2025. Its annual report says it “does not have sufficient working capital to repay its remaining Series D and E Bonds in full totaling $4,575,000 and $1,988,000”, the first due August 31, 2026. As of October 5, 2026, its last EDGAR filing is that June 12, 2026 annual report: nothing yet on whether August 31 was paid.
• GK Investment Holdings III qualified a $75,000,000 offering in August 2025, reported $650,000 of bonds sold by December 31, 2025, “including $650,000 to Mr. Kholamian, the President and founder of GK Real Estate”, and filed a Form 1-Z exit report on September 18, 2026 showing $854,000 sold in total.

Red Oak's funds lend on commercial property and pay fixed coupons. Red Oak Capital Fund VI raised $28.7 million of 8.00% bonds and $19.3 million of preferred units, held eleven loans of $60.9 million at a 10.50% weighted average rate on June 30, 2026, and put one loan on non-accrual in March 2026; that “property is in receivership and the receiver has listed the property for sale.” Red Oak Capital Fund VII raised its coupon from 8.00% to 9.00% on October 1, 2025, had $4,092,000 of bonds outstanding at June 30, 2026, and ended its offering on August 8, 2026. Red Oak Capital Intermediate Income Fund holds participations in its sister funds' loans; at June 30, 2026 its total liabilities were $10,579,021 against total assets of $6,008,082, and when its Series B bonds matured, $3.1 million of holders rolled into new 8.00% Series H bonds due December 31, 2028, sold under Regulation D.

Where the money goes back to the sponsor

MCI Income Fund VII had sold $11,097,715 of bonds by June 30, 2026, $9,937,715 of them to 154 Class A investors, at 7.00% to 9.50%. Its loans go to related parties and the bonds cannot be redeemed until June 30, 2029. It lost $300,114 in the first half of 2026 and had $88,302 of cash. USA Opportunity Income One sold $196,000 of bonds under Regulation A from 2022 to 2025, then registered a $200,000,000 offering of 7% to 12% bonds that had sold $65,000 by April 23, 2026; its 10-Q reports a going-concern doubt and a $50,000 bond, due May 18, 2026, whose holder and the company “are discussing the possibility of extending the investment.”

What a reader can do with this

• Find the issuer's CIK and read its last two reports. Every issuer here files a Form 1-K each year and a Form 1-SA each half-year (USA Opportunity now files 10-Qs). Search the company name on EDGAR; the links are in the dataset.
• Compare cash with what is payable now. For an on-demand bond, the only number that matters in a run is cash and liquid assets against bonds outstanding. Compound had $1,714,889 against $15,839,877.
• Search the report for “going concern” and “related party”. Seven of these 15 issuers state a going-concern doubt; several lend to, or borrow from, affiliates.
• Read the maturity schedule and the 1-U current reports. A bond due next quarter with no refinancing announced is the GK II situation.
• Know the dispute route. Worthy's investor agreement says claims after a payment default “may be subject to binding arbitration”, with opt-out provisions.

For income products backed by real estate debt that sit inside SEC-registered funds instead, see the best real estate debt investments ranked by earned income, and for warning signs in any offering, real estate crowdfunding red flags.

For the five Worthy issuers in detail, including the two that dissolved in January 2026 and the 2023 deal cancelled in February, see our Worthy Bonds review.

FAQ

Sources: the latest SEC filings of each issuer, read on EDGAR on October 5, 2026: Compound Real Estate Bonds, Inc. Form 1-SA for the six months to June 30, 2026 (0001829126-26-010470); Compound Real Estate Bonds II, Inc. Form 1-K for the year to June 30, 2026 (0001829126-26-009702); Worthy Property Bonds, Inc. and Worthy Property Bonds 2, Inc. Forms 1-K for the year to March 31, 2026 (0001493152-26-033338, 0001493152-26-033334), which also report on Worthy Peer Capital, Worthy Peer Capital II and Worthy Community Bonds; Worthy Community Bonds, Inc. Form 1-SA to June 30, 2026 (0001493152-26-042180); GK Investment Holdings, LLC Form 1-SA to June 30, 2025, filed June 3, 2026 (0001104659-26-069641); GK Investment Property Holdings II, LLC Form 1-K for 2025 (0001104659-26-073407); GK Investment Holdings III, LLC Form 1-K for 2025 (0001104659-26-049509) and Form 1-Z (0001104659-26-108856); Red Oak Capital Fund VI, Red Oak Capital Fund VII and Red Oak Capital Intermediate Income Fund Forms 1-SA to June 30, 2026 (0001213900-26-105783, 0001213900-26-103101, 0001213900-26-103075); MCI Income Fund VII, LLC Form 1-SA to June 30, 2026 (0001683168-26-007467); USA Opportunity Income One, Inc. Form 10-Q to March 31, 2026 (0001493152-26-024646); EDGAR filing lists for three issuers; and 17 CFR 230.251. Sums are our arithmetic. This is analysis of public documents, not investment, legal or tax advice.