PART II AND III 2 tv511976_partiiandiii.htm PART II AND III

 

PART II

OFFERING CIRCULAR

 Groundfloor Finance Inc.

 

Fourteen Series of Limited Recourse Obligations

Totaling $3,034,620

 

Dated: January 29, 2019

 

This Post-Qualification Offering Circular Amendment No. 37 (this “PQA”) amends the offering circular of Groundfloor Finance Inc, dated December 29, 2017, as qualified on January 4, 2018, and as may be amended and supplemented from time to time (the “Offering Circular”), to add additional securities to be offered pursuant to the Offering Circular. This PQA relates to the offer and sale of up to an additional $3,034,620 in aggregate amount of Limited Recourse Obligations (the “LROs”) to be issued by Groundfloor Finance Inc. (the “Company,” “we,” “us,” or “our”). Unless otherwise defined below, capitalized terms used herein shall have the same meanings as set forth in the Offering Circular. See “Incorporation by Reference of Offering Circular” below. 

 

We make LROs available for investment on our web-based investment platform www.groundfloor.com (the “Groundfloor Platform”). Our principal offices are located at 75 Fifth Street, NW, Suite 2170, Atlanta, GA 30308. The phone number for these offices is (404) 850-9225. Our mailing address is PO Box 79346, Atlanta, GA 30357. 

 

We will issue the LROs in distinct series, each corresponding to a real estate development project (each, a “Project”) financed by a commercial loan from us (each, a “Loan”). The borrower for each Project is a legal entity (the “Borrower”) that owns the underlying property and has been organized by one or more individuals (each, a “Principal”) that own and operate the Borrower. This PQA relates to the offer and sale of each separate series of LROs corresponding to the Projects for which we extend Loans, as described below (the “Offering”).

 

The LROs will be unsecured special, limited obligations of the Company. The LROs are not listed on any national securities exchange or on the over-the-counter inter-dealer quotation system. There is no market for the LROs. Our obligation to make payments on a LRO is limited to an amount equal to each holder’s pro rata share of amount of payments, if any, actually received on the corresponding Loan, net of certain fees and expenses retained by us. See the sections titled “General Terms of the LROs,” “The LROs Covered by this Offering Circular,” and “Project Summaries” of the Offering Circular, as amended hereby, for the specific terms of the LROs covered by this PQA.

 

We do not guarantee payment of the LROs in the amount or on the time frame expected. The LROs are not obligations of the Borrowers or their Principals, and we do not guarantee payment on the corresponding Loans. We have the authority to modify the terms of the corresponding Loans which could, in certain circumstances, reduce (or eliminate) the expected return on your investment. See the “General Terms of the LROs—Administration, Service, Collection, and Enforcement of Loan Documents” section on page 106 of the Offering Circular.

 

The LROs are speculative securities. Investment in the LROs involves significant risk, and you may be required to hold your investment for an indefinite period of time. You should purchase these securities only if you can afford a complete loss of your investment. See the “Risk Factors” section on page 12 of the Offering Circular.

 

Generally, no sale may be made to you in this offering to the extent that the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(c) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

We will commence the offering of each series of LROs promptly after the date this PQA is qualified by posting on the Groundfloor Platform a separate landing page corresponding to each particular Loan and Project (each, a “Project Summary”). The offering of each series of LROs covered by this PQA will remain open until the earlier of (1) 30 days, unless extended, or (2) the date the offering of a particular series of LROs is fully subscribed with irrevocable funding commitments (the “Offering Period”); however, we may extend the Offering Period for a particular series of LROs in our sole discretion (with notice to potential investors) up to a maximum of 45 days. We will notify investors who have previously committed funds to purchase such series of LROs of any such extension by email and will post a notice of the extension on the corresponding Project Summary on the Groundfloor Platform.

 

This Offering is being conducted on a “best-efforts” basis, which means that our officers will use their commercially reasonable best efforts in an attempt to sell the LROs. Such officers will not receive any commission or any other remuneration for these sales. In offering the LROs on our behalf, the officers will rely on the safe harbor from broker-dealer registration set out in Rule 3a4-1 under the Securities Exchange Act of 1934, as amended.

   

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED HEREUNDER ARE EXEMPT FROM REGISTRATION.

 

    Offering price
to the public
    Underwriting
discounts and
commissions
    Proceeds to
issuer(1)(2)
    Proceeds to other
persons
 
Per Unit   $ 10.00       N/A     $ 10.00       N/A  
Total Minimum   $ 125,680       N/A     $ 125,680       N/A  
Total Maximum   $ 3,034,620       N/A     $ 3,034,620       N/A  

 

(1) We estimate all expenses for this Offering to be approximately $4,500, which will not be financed with the proceeds of the Offering.

(2) Assumes no promotions or discounts applied to any offerings covered by this PQA.

 

   

 

 

Incorporation by Reference of Offering Circular

 

The Offering Circular, including this PQA, is part of an offering statement (File No. 024-10753) that we filed with the Securities and Exchange Commission. We hereby incorporate by reference into this PQA all of the information contained in the following:

 

1.Part II of the Offering Circular, including the form of LRO Agreement beginning on page LRO-1 thereof to the extent not otherwise modified or replaced by offering circular supplement and/or post-qualification amendment.
2.Post-Qualification Amendment No. 6 to the Offering Circular.
3.Semi Annual Report on Form 1-SA

 

Note that any statement that we make in this PQA (or have made in the Offering Circular) will be modified or superseded by any inconsistent statement made by us in a subsequent offering circular supplement or post-qualification amendment.

 

The LROs Covered by the Offering Circular and Use of Proceeds

 

The following disclosure is added on pages 109 and 110 of the Offering Circular under the table included under “The LROs Covered by this Offering Circular” and “Use of Proceeds,” respectively:

  

The table below lists the additional Projects covered by this PQA for which we are offering fourteen separate series of LROs. Each series of LROs is denominated by the corresponding Project’s name.

 

Series of LROs/Project  Aggregate Purchase
Amount/Loan
Principal
 
2301 North 4th Street, Minneapolis, MN, 55411  $125,680 
1225 North Pulaski Road, Chicago, IL, 60651   143,720 
584 Atkins Street, Middletown, CT, 06457   156,670 
90 Lakeshore Dr, Winchendon, MA, 01475   163,720 
1661 Chandler Drive, Lake Havasu City, AZ, 86403   178,020 
1073 Cascade Road Southwest, Atlanta, GA, 30311   194,260 
3844 Juliet Leia Circle South, Jacksonville, FL, 32218   194,870 
7801 Clendinnen Drive, Clinton, MD, 20735   196,210 
16 Winsome Rd, South Yarmouth, MA, 02664   211,400 
2399 Mcafee Rd, Decatur, GA, 30032   259,180 
282 Milton Avenue Southeast, Atlanta, GA, 30315   273,400 
929 E Ramseur Street, Durham, NC, 27701   288,400 
931 E Ramseur St, Durham, NC, 27701   288,400 
3405 Lee Street, East Point, GA, 30344   360,690 
Total  $3,034,620 

  

Project Summaries

 

Each Project Summary attached below is included in the Offering Circular following page PS-332.

 

   

 

 

PROJECT SUMMARIES FOR PQA NO. 37

 

 

 

PROJECT SUMMARY | 2301 NORTH 4TH STREET, MINNEAPOLIS, MN 55411

D

 

Rate Projected Term Loan to ARV Loan Amount Investors
13% 12 months 62.84% $125,680 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Purchase & Renovation First Lien $125,680 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Nimle Properties LLC

Thomas Ernie Scott - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $200,000

$48,484

Total Project Costs $151,516

GROUNDFLOOR

$125,680

$25,836

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $134,000 Loan To ARV 62.8%
Purchase Date 01/10/2019 Loan To Total Project Cost 80.7%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 5 10

Quality of Valuation Report 4 4

Skin-in-the-Game 3 10

Location 4 8

Borrower Experience 1 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$200,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 2301 NORTH 4TH STREET, MINNEAPOLIS, MN 55411

 

The Borrower intends to use the loan proceeds to purchase and renovate the property. Upon completion, the Borrower plans to refinance the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to purchase this property on January 10, 2019 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower is now in possession of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

The Borrower is a new entity and does not have any assets or operating history.

 

The Principal has not undertaken any project in the past. As such, the Principal’s experience, average revenue, costs, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

NIMLE PROPERTIES LLC

DATE OF FORMATION*

10/19/2018

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$0 $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Thomas Ernie Scott

FOCUS

Buy & Hold

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 0 $0
On Time Repayment   Average Project Time Average Total Project Costs
N/A   0 months $0

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 

 PS-333 

 

 

 

PROJECT SUMMARY | 1225 NORTH PULASKI ROAD, CHICAGO, IL 60651

B

 

Rate Projected Term Loan to ARV Loan Amount Investors
9% 12 months 57.7% $143,720 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Renovation First Lien $143,720 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Campoverde Properties LLC

Luis Campoverde - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $260,000

$97,350

Total Project Costs $162,650

GROUNDFLOOR

$143,720

$18,930

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $60,000 Loan To ARV 55.3%
Purchase Date 09/19/2018 Loan To Total Project Cost 85.5%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 5 10

Quality of Valuation Report 4 4

Skin-in-the-Game 2 10

Location 5 8

Borrower Experience 5 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$260,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 1225 NORTH PULASKI ROAD, CHICAGO, IL 60651

The Borrower intends to use the loan proceeds to complete a renovation to the property. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to begin renovation of this property on December 6, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower is now begun renovation of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

The Borrower has not completed any project in the past year. As such, the Borrower’s average revenue, costs, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

CAMPOVERDE PROPERTIES LLC

DATE OF FORMATION*

04/27/2018

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$60K $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Luis Campoverde

FOCUS

Fix & Flip

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 6 $400K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   6 months $250K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 

 PS-334 

 

 

 

PROJECT SUMMARY | 584 ATKINS STREET, MIDDLETOWN, CT 06457

B

 

Rate Projected Term Loan to ARV Loan Amount Investors
9% 12 months 56.97% $156,670 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Purchase & Renovation First Lien $156,670 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Coccomo II, LLC

Thomas Coccomo Jr. - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $275,000

$107,885

Total Project Costs $167,115

GROUNDFLOOR

$156,670

$10,445

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $145,000 Loan To ARV 57.0%
Purchase Date 12/20/2018 Loan To Total Project Cost 90.3%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 5 10

Quality of Valuation Report 4 4

Skin-in-the-Game 2 10

Location 4 8

Borrower Experience 5 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$275,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 584 ATKINS STREET, MIDDLETOWN, CT 06457

The Borrower intends to use the loan proceeds to purchase and renovate the property. Upon completion, the Borrower plans to refinance the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to purchase this property on December 20, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower is now in possession of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

The Borrower’s 2018 revenue was derived from rental properties because the Borrower’s primary focus in 2018 was buy and hold.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

COCCOMO II, LLC

DATE OF FORMATION*

09/29/2014

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$225K $2.5K 1 $27K
Unsold Inventory Aged Inventory Gross Margin %  
0 0 55.55%  

 

PRINCIPAL

Thomas Coccomo Jr.

FOCUS

Buy & Hold

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 4 $425K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   6 months $300K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION. 

 PS-335 

 

 

 

PROJECT SUMMARY | 90 LAKESHORE DR, WINCHENDON, MA 01475

C

 

Rate Projected Term Loan to ARV Loan Amount Investors
10.5% 9 months 70.0% $163,720 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Purchase & Renovation First Lien $163,720 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Property Rehab solutions, LLC

Chad E. King - Principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $233,900

$48,250

Total Project Costs $185,650

GROUNDFLOOR

$163,720

$21,930

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $150,200 Loan To ARV 70.0%
Purchase Date 12/31/2018 Loan To Total Project Cost 85.4%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 4 10

Quality of Valuation Report 4 4

Skin-in-the-Game 2 10

Location 4 8

Borrower Experience 5 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$233,900

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 90 LAKESHORE DR, WINCHENDON, MA 01475

 

The Borrower intends to use the loan proceeds to purchase and renovate the property. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to purchase this property on December 13, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower is now in possession of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

PROPERTY REHAB SOLUTIONS, LLC

DATE OF FORMATION*

11/09/2016

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$150.2K $11K 2 $440K
Unsold Inventory Aged Inventory Gross Margin %  
0 0 28.19%  

 

PRINCIPAL

Chad E. King

FOCUS

Fix & Flip

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
3 3 4 $220K
On Time Repayment   Average Project Time Average Total Project Costs
100%   4 months $165K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION. 

 PS-336 

 

 

 

PROJECT SUMMARY | 1661 CHANDLER DRIVE, LAKE HAVASU CITY, AZ 86403

A

 

Rate Projected Term Loan to Value Remaining Amount / Days Investors
6.9% 12 months 43.9% $165,450 / 30 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Renovation First Lien $178,020 Monthly payment - interest returned monthly, principal due at maturity.

 

BORROWER

Sheridan Properties LLC

John Fitzgerald - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $400,000

$12,534

Total Project Costs $387,466

GROUNDFLOOR

$178,020

$209,446

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $364,086 Loan To ARV 44.5%
Purchase Date 06/11/2013 Loan To Total Project Cost 46.0%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 10 10

Quality of Valuation Report 4 4

Skin-in-the-Game 10 10

Location 4 8

Borrower Experience 4 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$400,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 1661 CHANDLER DRIVE, LAKE HAVASU CITY, AZ 86403

 

The Borrower intends to use the loan proceeds to complete a renovation to the property. Upon completion, the Borrower plans to refinance the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to begin renovation of this property on December 12, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower has now begun renovation of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

The property was purchased for $364,086. The Borrower intends to use $150,000 of the proceeds from our loan to offset that amount of the purchase price of the property. Therefore, the Borrower is only receiving a “Skin-in-the-Game” score for the remaining $214,086 that is tied up in the project after completion of our loan.

 

The Borrower has not completed any project in the past year. As such, The Borrower’s average revenue, cost, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

SHERIDAN PROPERTIES LLC

DATE OF FORMATION*

03/22/2004

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$364.1K $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

John Fitzgerald

FOCUS

Buy & Hold

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 3 $291.8K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   12 months $204.9K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION. 

 PS-337 

 

 

 

PROJECT SUMMARY | 1073 CASCADE ROAD SOUTHWEST, ATLANTA, GA 30311

C

 

Rate Projected Term Loan to ARV Loan Amount Investors
11% 12 months 69.13% $194,260 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Purchase & Renovation First Lien $194,260 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Divine Dream Homes LLC

Lorenzo Kendrick - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $281,000

$69,577

Total Project Costs $211,423

GROUNDFLOOR

$194,260

$17,163

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $165,000 Loan To ARV 69.1%
Purchase Date 01/09/2019 Loan To Total Project Cost 89.7%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 4 10

Quality of Valuation Report 4 4

Skin-in-the-Game 2 10

Location 4 8

Borrower Experience 3 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$281,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 1073 CASCADE ROAD SOUTHWEST, ATLANTA, GA 30311

The Borrower intends to use the loan proceeds to purchase and renovate the property. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to purchase this property on January 9, 2019 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower is now in possession of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

DIVINE DREAM HOMES LLC

DATE OF FORMATION*

01/06/2016

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$294K $0 1 $227.5K
Unsold Inventory Aged Inventory Gross Margin %  
0 0 31.86%  

 

PRINCIPAL

Lorenzo Kendrick

FOCUS

Fix & Flip

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 2 $74K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   10 months $47K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 

 PS-338 

 

 

 

PROJECT SUMMARY | 3844 JULIET LEIA CIRCLE SOUTH, JACKSONVILLE, FL 32218

B

 

Rate Projected Term Loan to ARV Loan Amount Investors
9% 12 months 69.6% $194,870 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Purchase & Renovation First Lien $194,870 Monthly payment - interest returned monthly, principal due at maturity.

 

BORROWER

RSRJW, LLC

Starleatha Williams - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $280,000

$52,432

Total Project Costs $227,568

GROUNDFLOOR

$194,870

$32,698

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $215,900 Loan To ARV 69.6%
Purchase Date 01/08/2019 Loan To Total Project Cost 83.3%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 4 10

Quality of Valuation Report 4 4

Skin-in-the-Game 3 10

Location 4 8

Borrower Experience 5 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$280,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 3844 JULIET LEIA CIRCLE SOUTH, JACKSONVILLE, FL 32218

The Borrower intends to use the loan proceeds to purchase and renovate to the property. Upon completion, the Borrower plans to refinance the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to purchase this property on January8, 2019 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower is now in possession of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

The Borrower has not completed any projects since inception. As such, the Borrower’s average revenue, costs, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

RSRJW, LLC

DATE OF FORMATION*

02/17/2017

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$0 $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Starleatha Williams

FOCUS

Buy & Hold

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 4 $199K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   9 months $139K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 

 PS-339 

 

 

 

PROJECT SUMMARY | 7801 CLENDINNEN DRIVE, CLINTON, MD 20735

C

 

Rate Projected Term Loan to ARV Remaining Amount / Days Investors
11% 12 months 61.32% $178,720 / 30 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Purchase & Renovation First Lien $196,210 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Options,Incorporated

Jeffrey Sibert - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $320,000

$110,625

Total Project Costs $209,375

GROUNDFLOOR

$196,210

$13,165

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $125,000 Loan To ARV 61.3%
Purchase Date 12/20/2018 Loan To Total Project Cost 90.3%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 5 10

Quality of Valuation Report 4 4

Skin-in-the-Game 2 10

Location 4 8

Borrower Experience 3 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$320,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 7801 CLENDINNEN DRIVE, CLINTON, MD 20735

 

The Borrower intends to use the loan proceeds to purchase and renovate the property. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to purchase this property on December 20, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower is now in possession of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

The Borrower has not completed any project in the past year. As such, the Borrower’s average revenue, cost, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post-Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

OPTIIONS, INCORPORATED

DATE OF FORMATION*

10/10/2006

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$125K $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Jeffrey Sibert

FOCUS

Fix & Flip

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 2 $480K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   12 months $375K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 

 PS-340 

 

 

 

PROJECT SUMMARY | 16 WINSOME RD, SOUTH YARMOUTH, MA 02664

B

 

Rate Projected Term Loan to ARV Remaining Amount / Days Investors
9% 12 months 67.0% $197,590 / 30 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Purchase & Renovation First Lien $211,400 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Waner Affiliated LLC

Waner Cadet, Jr. - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $315,500

$49,999

Total Project Costs $265,501

GROUNDFLOOR

$211,400

$54,101

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $215,000 Loan To ARV 67.0%
Purchase Date 01/04/2019 Loan To Total Project Cost 78.1%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 4 10

Quality of Valuation Report 4 4

Skin-in-the-Game 4 10

Location 4 8

Borrower Experience 3 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$315,500

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 16 WINSOME RD, SOUTH YARMOUTH, MA 02664

The Borrower intends to use the loan proceeds to purchase and renovate the property. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to purchase this property on January 4, 2019 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower is now in possession of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

The Borrower has only undertaken one project in the past year, and has not sold it yet. As such, the Borrower’s average revenue, costs, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

WANER AFFILIATED LLC

DATE OF FORMATION*

10/05/2017

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$185K $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Waner Cadet, Jr.

FOCUS

Fix & Flip

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 2 $312K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   12 months $218K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 

 PS-341 

 

 

 

PROJECT SUMMARY | 2399 MCAFEE RD, DECATUR, GA 30032

B

 

Rate Projected Term Loan to ARV Loan Amount Investors
8.3% 12 months 60.98% $259,180 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
New Construction First Lien $259,180 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

HG Builders LLC

Harsh Goyal - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $425,000

$143,990

Total Project Costs $290,180

GROUNDFLOOR

$259,180

$31,000

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $96,000 Loan To ARV 61.0%
Purchase Date 12/17/2018 Loan To Total Project Cost 89.6%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 5 10

Quality of Valuation Report 4 4

Skin-in-the-Game 2 10

Location 4 8

Borrower Experience 5 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$425,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 2399 MCAFEE RD, DECATUR, GA 30032

 

The Borrower intends to use the loan proceeds to complete a new construction. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to begin construction of this property on December 17, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower will has begun construction of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The construction of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The construction will require permitting, and permits may not be obtained on time or may be denied.

 

There is no existing structure on this property, or if there is, it will be demolished, and a new structure built in its place.

 

The Borrower has not completed any project in the past year. As such, The Borrower’s average revenue, cost, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

HG BUILDERS LLC

DATE OF FORMATION*

09/25/2018

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$96K $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Harsh Goyal

FOCUS

New Construction

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 5 $295K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   5 months $218K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 

 PS-342 

 

 

 

PROJECT SUMMARY | 282 MILTON AVENUE SOUTHEAST, ATLANTA, GA 30315

D

 

Rate Projected Term Loan to ARV Loan Amount Investors
13% 12 months 68.52% $273,400 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Purchase & Renovation First Lien $273,400 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Peach Funding, LLC

Daniel Dierdorff - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $399,000

$86,907

Total Project Costs $312,093

GROUNDFLOOR

$273,400

$38,693

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $165,500 Loan To ARV 68.5%
Purchase Date 12/26/2018 Loan To Total Project Cost 84.9%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 4 10

Quality of Valuation Report 4 4

Skin-in-the-Game 2 10

Location 4 8

Borrower Experience 3 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$399,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 282 MILTON AVENUE SOUTHEAST, ATLANTA, GA 30315

The Borrower intends to use the loan proceeds to purchase and renovate the property. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed purchase this property on December 26, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower is now in possession of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

The Borrower has not completed any project in the past year. As such, the Borrower’s average revenue, costs, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

PEACH FUNDING, LLC

DATE OF FORMATION*

06/29/2016

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$165.5K $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Daniel Dierdorff

FOCUS

Fix & Flip

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 2 $260K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   6 months $185K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 

 PS-343 

 

 

 

PROJECT SUMMARY | 929 E RAMSEUR STREET, DURHAM, NC 27701

B

 

Rate Projected Term Loan to ARV Loan Amount Investors
9% 12 months 70.0% $288,400 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
New Construction First Lien $288,400 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Ramarama Inc

Marcus Bullock - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $412,000

$91,700

Total Project Costs $330,400

GROUNDFLOOR

$288,400

$42,000

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $225,000 Loan To ARV 70.0%
Purchase Date 11/30/2016 Loan To Total Project Cost 87.7%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 4 10

Quality of Valuation Report 4 4

Skin-in-the-Game 8 10

Location 4 8

Borrower Experience 3 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$412,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 929 E RAMSEUR STREET, DURHAM, NC 27701

The Borrower intends to use the loan proceeds to complete a new construction. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to begin construction of this property on December 19, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower will has begun construction of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The construction of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The construction will require permitting, and permits may not be obtained on time or may be denied.

 

There is no existing structure on this property, or if there is, it will be demolished, and a new structure built in its place.

 

The Borrower has not completed any project in the past year. As such, the Borrower’s average revenue, costs, and margins cannot be calculated.

 

Borrower is using $180,000 of the loan proceeds to pay off an existing loan that was used to acquire the property. Groundfloor will assume the first lien position. The rest of the loan proceeds will be put towards the renovation of the property, much like an acquisition and renovation loan.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

RAMARAMA INC

DATE OF FORMATION*

01/28/2016

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$450K $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Marcus Bullock

FOCUS

New Construction

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 2 $295K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   7 months $218K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 PS-344 

 

 

 

PROJECT SUMMARY | 931 E RAMSEUR ST, DURHAM, NC 27701

B

 

Rate Projected Term Loan to ARV Remaining Amount / Days Investors
9% 12 months 70.0% $269,460 / 30 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
New Construction First Lien $288,400 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Ramarama Inc

Marcus Bullock - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $412,000

$91,700

Total Project Costs $330,400

GROUNDFLOOR

$288,400

$42,000

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $225,000 Loan To ARV 70.0%
Purchase Date 03/18/2016 Loan To Total Project Cost 87.7%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 4 10

Quality of Valuation Report 4 4

Skin-in-the-Game 8 10

Location 4 8

Borrower Experience 3 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$412,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 931 E RAMSEUR STREET, DURHAM, NC 27701

The Borrower intends to use the loan proceeds to complete a new construction. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to begin construction of this property on December 19, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower will has begun construction of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The construction of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The construction will require permitting, and permits may not be obtained on time or may be denied.

 

There is no existing structure on this property, or if there is, it will be demolished, and a new structure built in its place.

 

Borrower is using $180,000 of the loan proceeds to pay off an existing loan that was used to acquire the property. Groundfloor will assume the first lien position. The rest of the loan proceeds will be put towards the renovation of the property, much like an acquisition and renovation loan.

 

The Borrower has not completed any project in the past year. As such, the Borrower’s average revenue, costs, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

RAMARAMA INC

DATE OF FORMATION*

01/28/2016

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$450K $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Marcus Bullock

FOCUS

New Construction

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 2 $295K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   7 months $218K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 PS-345 

 

 

 

PROJECT SUMMARY | 3405 LEE STREET, EAST POINT, GA 30344

C

 

Rate Projected Term Loan to ARV Loan Amount Investors
11% 12 months 64.99% $360,690 0

 

Purpose Loan Position Total Loan Amount Repayment Terms
Renovation First Lien $360,690 Balloon payment - principal and interest returned on repayment / due at maturity.

 

BORROWER

Handsome Home Co LLC

Phylesia Mintz - principal

 

INVEST NOW

Click here to view the LRO Agreement

 

FINANCIAL OVERVIEW

After Repair Value (ARV) $555,000

$125,545

Total Project Costs $429,455

GROUNDFLOOR

$360,690

$68,765

0%

Skin-in-the-Game First Lien Loan Cushion

 

Purchase Price $270,000 Loan To ARV 65.0%
Purchase Date 11/04/2018 Loan To Total Project Cost 81.6%

 

GRADE FACTORS

The following factors determine in part how the loan was graded:

(in descending order of importance)

Loan To ARV Score 4 10

Quality of Valuation Report 4 4

Skin-in-the-Game 3 10

Location 4 8

Borrower Experience 5 5

Borrower Commitment 1 1

 

VALUATION REPORTS

As Complete (ARV)

$555,000

 

Certified Independent Appraisal

Broker’s Price Opinion

Borrower Provided Appraisal

Borrower Provided Comps

 

PROPERTY DESCRIPTION

Address: 3405 LEE STREET, EAST POINT, GA 30344

The Borrower intends to use the loan proceeds to payoff an existing loan and complete a renovation to the property. Upon completion, the Borrower intends to sell the property to repay the Groundfloor loan.

 

INVEST NOW

Click here to view the LRO Agreement

 

PROPERTY PHOTOS

 

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS

 

The Borrower was advanced the money it needed to begin renovation of this property on December 21, 2018 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower has now begun renovation of the property. If this offering is fully subscribed, Groundfloor will continue to administer and service the loan as further described in the Offering Circular.

 

The renovation of the property may be extensive, and therefore subject to delays and other unexpected issues.

 

The renovation will require permitting, and permits may not be obtained on time or may be denied.

 

Borrower is using $170,000 of the loan proceeds to pay off an existing loan that was used to acquire the property. Groundfloor will assume the first lien position. The rest of the loan proceeds will be put towards the renovation of the property, much like an acquisition and renovation loan.

 

The Borrower has not completed any project in the past year. As such, the Borrower’s average revenue, costs, and margins cannot be calculated.

 

Please consult the Offering Circular for further discussion of general risk factors.

 

CLOSING CONDITIONS

Loan is conditioned upon a clean title search and valid title insurance at the time of close.

 

DEVELOPER FEES

GROUNDFLOOR generally charges borrowers between 2% and 6% of the principal amount of the loan for our services.

 

GROUNDFLOOR does not take a ‘spread’ on any part of the interest payments.

 

Developers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.

 

Unless otherwise limited by applicable law, GROUNDFLOOR will charge a penalty of 2% for any extension made to the borrower. See GROUNDFLOOR ‘Fees and Expenses’ in the Offering Circular.

 

SEC FILING INFORMATION

The series of LROs corresponding to this Project are offered pursuant to Post Qualification Amendment No. 37 to the Offering Circular dated December 29, 2017 (each, as amended and supplemented from time to time), including the documents incorporated by reference therein. You may access and review these documents on the Internal Filings Directory located on our Platform.

 

BORROWER SUMMARY

UNLESS NOTED WITH A*, INFORMATION BELOW IS SUPPLIED BY THE BORROWER AND IS NOT VERIFIED.

BORROWERS REPRESENT AND WARRANT THAT INFORMATION SUPPLIED IS ACCURATE.

 

HANDSOME HOME CO LLC

DATE OF FORMATION*

09/05/2014

 

FINANCIAL DATA PROJECTS / REVENUE
Reporting date: 12/31/18 Reporting period: 2018

 

Value of Properties Total Debt Completed Projects Revenue
$270K $0 0 $0
Unsold Inventory Aged Inventory Gross Margin %  
0 0 N/A  

 

PRINCIPAL

Phylesia Mintz

FOCUS

Other

 

GROUNDFLOOR HISTORY * HISTORICAL AVERAGES
  Reporting period: three years ending 2018

 

Loans Funded Loans Repaid Completed Projects Per Year Average Project Revenue
0 0 4 $316K
On Time Repayment   Average Project Time Average Total Project Costs
N/A   6 months $206.3K

 

THE COMPANY PLAYED NO ROLE IN THE PREPARATION OF ANY OF THE VALUATION SOURCES OR ANY OTHER MATERIALS PROVIDED BY THE BORROWER. WHILE WE BELIEVE THE DATA CONTAINED THEREIN IS HELPFUL, WE DO NOT USE IT AS THE SOLE BASIS FOR A FUNDING DECISION.

 

 PS-346 

 

 

PART III — EXHIBITS

 

Exhibit Index

 

            Incorporated by Reference
Exhibit
Number
 

Exhibit Description

(hyperlink)

 

Filed

Herewith

  Form   File No.   Exhibit

 

 

Filing Date
                         
2.1   Groundfloor Finance Inc. Second Amended and Restated Articles of Incorporation       1-A/A   024-10496   2.1   November 25, 2015
                         
2.2   Groundfloor Finance Inc. Bylaws       1-A/A   024-10440   2.2   July 1, 2015
                         
3.1   Amended and Restated Investors’ Rights Agreement       1-A/A   024-10496   3.1   November 25, 2015
                         
3.2   Form of Investor Agreement       1-A/A   024-10753   3.2   November 1, 2018
                         
3.3   Preferred Stock Voting Agreement       1-A/A   024-10753   3.3   November 30, 2017
                         
4.1   Standard Form of LRO Agreement (incorporated by reference from the Offering Circular)       1-A/A   024-10496   N/A   October 22, 2018
                         
6.1   Executive Employment Agreement with Brian Dally dated November 19, 2014       1-A/A   024-10440   6.1   July 1, 2015
                         
6.2   Executive Employment Agreement with Nikhil Bhargava dated November 19, 2014       1-A/A   024-10440   6.2   July 1, 2015
                         
6.3   2013 Stock Option Plan       1-A/A   024-10440   6.6   July 1, 2015
                         
6.4   Option Award Agreement for Michael Olander Jr.       1-A/A   024-10440   6.8   July 1, 2015
                         
6.5   Option Award Agreement for Richard Tuley        1-A    024-10488    6.11    October 7, 2015
                         
6.6   Option Award Agreement for Bruce Boehm        1-A   024-10488     6.12    October 7, 2015
                         
6.7   Series Seed Preferred Stock Purchase Agreement       1-A/A   024-10440   3.1   July 1, 2015
                         
6.8   Series A Preferred Stock Purchase Agreement       1-A/A   024-10496   6.18   November 25, 2015
                         
6.9   Right of First Refusal and Co-Sale Agreement       1-A/A   024-10496   6.19   November 25, 2015
                         
6.10   Promissory Note and Security Agreement, as amended       1-A POS   024-10496   6.10   October 18, 2017
                         
6.11   Form of Loan Agreement       1-A/A   024-10440   6.14   July 1, 2015
                         

 

 

 

6.12   Form of Promissory Note       1-A/A   024-10440   6.15   July 1, 2015
                         
6.13   Loan Purchase Agreement with Harvest Residential Loan Acquisition, LLC       1-A/A   024-10758   6.11   January 22, 2018
                         
6.14   Servicing Agreement with Harvest Residential Loan Acquisition, LLC       1-A/A   024-10758   6.12   January 22, 2018
                         
11.1   Consent of Hughes Pitman & Gupton, LLP       1-A/A   024-10753   11.1   March 22, 2018
                         
11.2   Consent of Robbins Ross Alloy Belinfante Littlefield LLC (included as part of Exhibit 12.1)   X                
                         
12.1   Opinion of Robbins Ross Alloy Belinfante Littlefield LLC   X                

 

 

 

 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Atlanta, State of Georgia, on January 29, 2019.

 

  GROUNDFLOOR FINANCE INC.
     
  By: /s/ Nick Bhargava
  Name: Nick Bhargava
  Title: Executive Vice President, Secretary and Acting Chief Financial Officer

 

This offering statement has been signed by the following persons in the capacities and on the dates indicated.

 

Signature   Title   Date
         
*  

President, Chief Executive Officer and Director (Principal Executive Officer)

  January 29, 2019
Brian Dally      
         
/s/ Nick Bhargava  

Executive Vice President, Secretary, Acting Chief Financial Officer and Director (Principal Financial and Accounting Officer)

  January 29, 2019
Nick Bhargava      
         
*   Director   January 29, 2019
Sergei Kouzmine        
         
*   Director   January 29, 2019
Bruce Boehm        
         
*   Director   January 29, 2019
Michael Olander Jr.        
         
*   Director   January 29, 2019
Richard Tuley Jr.        

 

*By: /s/ Nick Bhargava  
Nick Bhargava  
Attorney-in-fact