When a borrower submits a loan application, the application is reviewed and graded on a scale ranging from Grade A to Grade G and assigned a corresponding interest rate. Grade A loans are the least risky and not as rewarding as Grade G loans which are the most risky and consequently the most rewarding. Grade A loans generally offer returns of 5.5% and Grade G loans generally offer returns of 26% with each letter grade offering a return in that in range. The grade and interest rate will not be adjusted during the life of the loan.
Currently, our grading scale and corresponding rates are as follows.
We use a number of factors when grading a loan and assigning a rate. Those factors include: location, lien position, borrower commitment, skin-in-the-game, and others. The final rate is adjusted from the above scale around factors like loan size, loan term, personal guarantee, history with Groundfloor, credit worthiness, and more.
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”).