PROJECT SPECIFIC RISK FACTORS

• The Borrower was advanced the money it needed to purchase this property on December 15, 2020 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.
• 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 Principal has not yet completed or sold any projects. As such, the Principal's average revenue, costs, and margins cannot be calculated.
• 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