PROJECT SPECIFIC RISK FACTORS

• The Borrower was advanced the money it needs to begin construction of this property on May 29, 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 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 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 $100,000 to $150,000. 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.
• 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