Those who have been following GROUNDFLOOR for awhile know that 748 Charles Allen was our--and the nation’s--very first 100% crowdlended real estate transaction open to participation by all. Along the way we experimented with a couple of different ways of structuring the loan, explaining how it works and attracting people to invest in it.
As sometimes happens on the bleeding edge of innovation, some of these tests took longer to complete than planned. Fast forward three months and it’s time for development of the project to start. The loan is half-full (see how optimistic we are?).
How to proceed? Developer Pat Gilroy decided that, rather than canceling the loan and leaving the funding up to the banks, it would be better to offer a new and different loan that can fund more quickly.
We learned a lot observing the way our two most recent loans on other properties oversubscribed in five days and then just over 48 hours. The changes we are making with this new loan on Charles Allen benefit from that experience. Notably, it offers a higher rate (10%) and a smaller amount to fully fund. To participate, head on over to the new 748 Charles Allen project page and pledge now (Georgia investors only).
This is our first loan to offer the security of a second-lien (also known as “mezzanine”) position. For more about the details of what that means for noteholders, see our new Charles Allen Project FAQ posted today. We also invite comments on this post below, and for you to write us at founders@groundfloor.us anytime with suggestions, critiques or observations.