Key Deal Facts
The Borrower was advanced the money it needed to purchase this property on April 18, 2022 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.
This LRO represents the first draw for the loan and is secured by an individual note.
There will be three LROs on this project, each representing subsequent draws. The first series of LROs will be for $156,360 and the second series of LROs will be for $44,670. The last LROs series is subordinate to the first two series of LROs and will be for $22,330. The Financial Overview box represents the aggregate amount of all LROs to be secured by this property, giving a complete financial picture of the project.
The event of default on one Groundfloor note secured by this property will trigger default on all Groundfloor notes secured by this property. However, LRO holders investing in LROs corresponding to notes secured by this property have different priorities in any recovery. Holders of LRO series 95472 Springhill Road #1 and 95472 Springhill Road #2 share first priority and any recovery will be distributed on a pro rata basis to these LRO holders first. Holders of LRO Series 95472 Springhill Road #3 have a subordinated priority, and any remaining recovery will be distributed to them if and when LRO holders of the first priority notes are made whole.
The borrower has had late repayments, but has repaid all loans in full, with all interest and fees due.
