When GROUNDFLOOR underwrites a loan, our proprietary grading algorithm assigns one of seven letter grades from A to G to each project. The letter grade generally reflects the overall risk of the loan. For example, Grade A loans generally have lower expected returns, lower expected loan losses, and corresponding lower interest payments. Whereas on the other end of the spectrum, Grade G loans have higher expected returns, higher potential loan losses, but correspondingly higher interest rates. With GROUNDFLOOR, you create a custom portfolio of real estate investments based on your own investment criteria and risk tolerances.
Rate floors are the minimum amount GROUNDFLOOR will offer borrowers for any given letter grade. GROUNDFLOOR passes 100% of this interest directly to investors who invest in the corresponding LRO. During the life of the loan, the grade and interest rate will not be adjusted
The grading algorithm factors in the following indicators that take into account 1) the valuation and strength of a particular project and 2) the experience and risk profile of the borrower. The exact scores of the grading algorithm are available on the Loan Detail page for each LRO.
WE MAY SOLICIT INTEREST FROM RESIDENTS OF A LIMITED NUMBER OF STATES: MA, MD, DC, VA, GA, IL, TX, WA, CA
The information on this website does not constitute an offer to sell or a solicitation of an offer to make an investment (the “Investment”) in the limited recourse obligations (or “LROs”) described herein in any state or jurisdiction in which we are not qualified to do so. No such offer or solicitation will be made prior to the delivery of definitive documentation relating to the matters described herein. All Investments carry risks. Before making an investment decision with respect to an Investment in a particular series of LROs, potential investors are advised to carefully read the investment agreement that will govern the Investment and the related subscription, solicitation of interest and offering circular documents (the “Documents”). You should consult with your own attorneys, accountants and other professional advisors prior to making an Investment.
This overview contains a preliminary summary of the purpose and principal business terms of the Investment. This summary does not purport to be complete and is qualified in its entirety by reference to the more detailed discussion contained in the actual text of the Documents.
ANY PROJECT SPECIFIC INFORMATION ON THIS WEBSITE MUST BE READ IN CONJUNCTION WITH THE OFFERING CIRCULAR IN ORDER TO UNDERSTAND FULLY ALL OF THE IMPLICATIONS AND RISKS OF THE OFFERING OF SECURITIES TO WHICH IT RELATES. A COPY OF THE OFFERING CIRCULAR MUST BE MADE AVAILABLE TO YOU IN CONNECTION WITH THIS OFFERING.
Disclaimer: Neither the SEC nor any state securities commission or regulatory authority approved, passed upon or endorsed the merits of the offering described in the Offering Circular or reflected on this website.
GROUNDFLOOR’s services do not constitute “crowdfunding” as described in Title III of the Jumpstart Our Business Startups Act (“JOBS Act”).