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.
Some statements in the offering circulars/PQAs and on this website may contain forward-looking statements and are based upon current expectations, plans, estimates, assumptions and beliefs that involve numerous risks and uncertainties. Although Groundfloor believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, actual results and performance could differ materially from those set forth in the forward-looking statements. You should consult with your own attorneys, accountants, and other professional advisors prior to making an investment.
The information on this website does not constitute an offer to sell or a solicitation of interest in any LROs that may be qualified in the future. No money or other consideration is being solicited with respect to any LROs that have not been duly qualified, and if sent in response, will not be accepted. No offer to buy any LROs that have not been duly qualified can be accepted and no part of the purchase price can be received until an offering circular/PQA covering such LROs has been qualified by the SEC. Any such offer to buy unqualified LROs may be withdrawn or revoked, without obligation of any kind, at any time before notice of its acceptance is given after the date of qualification. An indication of interest in our offerings involves no obligation or commitment of any kind.
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Neither the SEC nor any state securities commission or regulatory authority approved, disapproved, endorsed, or recommended the merits of the offering described in the offering circulars/PQAs 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”).