D

LOAN SUMMARY | 7506 Minnesota Avenue, St. Louis, MO 63111

BORROWER

JJ DEVELOPMENT, LLC
Judonne Greham - principal
Rate
Projected Term
Loan To ARV
Loan Amount
Investors
13.5%
21 months
70.0%
$154,000
1210
Purpose
Loan Position
Total Loan Amount
Loan Status
New Construction
First Lien
$154,000
Funded
Started on
Funded on
Repaid on
Matures on
06/29/2022
01/10/2023
Pending
03/28/2024

LOAN UPDATES

GROUNDFLOOR - 5/30/2023

Per borrower, they were approved for the permit.

GROUNDFLOOR - 5/2/2023

Per borrower, permitting process is ongoing.

GROUNDFLOOR - 4/3/2023

Per borrower, City Board submitted formal written approval. Permitting process is ongoing.

GROUNDFLOOR - 3/2/2023

The borrower has advised they received verbal approval from the variance board. Waiting to receive that approval in writing before continuing the permitting process.

GROUNDFLOOR - 1/25/2023

The variance meeting has been rescheduled to February 15, 2023.

GROUNDFLOOR - 12/29/2022

The borrower has advised that a new variance meeting with the city is scheduled for January 11, 2023.

GROUNDFLOOR - 12/13/2022

From Borrower:

The variance board members pushed making a decision back for 60 days and they requested that we provide a letter of support from the alderman by the next meeting. The letter of support was requested. Pending letter from the alderman.

GROUNDFLOOR - 10/27/2022

The borrower has advised that the variance meeting remains scheduled for November 1, 2022.

GROUNDFLOOR - 9/25/2022

The borrower has advised that a variance meeting with the city is scheduled for the week of November 1, 2022.

GROUNDFLOOR - 8/26/2022

The borrower has advised that the variance request is still pending.

GROUNDFLOOR - 7/26/2022

The borrower has advised that a variance request is in progress. Once the city approves the request, renovations will resume.

FINANCIAL OVERVIEW

After Repair Value (ARV)
$275,000
Total Project Costs
$244,390
$30,610
GROUNDFLOOR
$192,490
$51,900
0%
Skin-in-the-Game
First Lien Loan
Cushion
Purchase Price
$15,000
Purchase Date
12/07/2021
Loan To ARV
70.0%
Loan To Total Project Cost
78.8%

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
0
10
Location
4
8
Borrower Experience
3
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

7506 MINNESOTA AVENUE, ST. LOUIS, MO 63111
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.

PROPERTY PHOTOS

MISCELLANEOUS

PROJECT SPECIFIC RISK FACTORS
  • The Borrower was advanced the money it needs to begin construction of this property on June 29, 2022 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower 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.
  • This LRO represents the first draw for the construction project and is secured by an individual note.
  • There will be multiple LROs on this project, each representing subsequent draws. The LROs will range from $38,000 to $154,000. 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. All LRO holders investing in LROs corresponding to notes secured by this property share the same priority in any recovery and recovered proceeds will be distributed on a pro-rata basis.
  • The Borrower has not completed or sold any projects in the past year. As such, the Borrower's average revenue, costs, and margins cannot be calculated.
  • The Borrower's 2021 revenue was derived from rental properties because the Borrower's primary focus in 2021 was buy and hold. The Number of Completed Projects reflects the number of rental units owned. The Gross Margin reflects the earnings after the expenses of the rental business, such as mortgage interest, property taxes, and maintenance, have been deducted from gross revenue.
  • Please consult the Offering Circular