PROJECT SPECIFIC RISK FACTORS

• The Borrower was advanced the money it needs to begin construction of this property on August 4, 2020 by Groundfloor Finance Inc. (“Groundfloor,” “we,” “us,” or “our”) or a wholly-owned subsidiary of Groundfloor. The Borrower will 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 will be multiple loans on this project, each representing subsequent draws. The loans will range from [$90,000] to [$200,000]. The Financial Overview box represents the aggregate amount of all loans to be secured by this property, giving a complete financial picture of the project.
• 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 loan represents the {first draw} for the construction project and is secured by an individual note.
• Each draw on this project is structured as an individual loan. We will fund each draw from our own capital or credit facilities as and when requested by the Borrower, provided conditions for each draw are met as described in our Offering Circular. Once a draw has been approved and funded, we will then sell the corresponding series of LROs on our platform, each of which will be due {12 months} from the time such series of LRO is deemed issued, as described in our Offering Circular. Subsequent draws are expected to be requested every two months from the date we advanced the first draw, but may be requested sooner, or later, depending on the progress of construction.
• 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.
• Please consult the Offering Circular for further discussion of general risk factors.

• Loan is conditioned upon a clean title search and valid title insurance at the time of close.

• We generally charge borrowers an origination fee (which typically ranges between 2% and 6% of the principal loan amount) and a servicing fee (which typically ranges between 0.5% and 2%) for our services.
• We do not take a "spread" on any part of the interest payments.
• Borrowers may capitalize the cost of closing into the principal amount of their request. These closing costs typically range from $500 to $1500.
• Unless otherwise limited by applicable law, we will charge a penalty of up to 2% for any extension made to the Borrower. See “Fees and Related Expenses” in the Offering Circular