With 3 loans behind us, the 4th took us to Powder Springs, GA. A small city in bustling Cobb County, Powder Springs is home to about 14,000 residents and only 20 or so miles from Atlanta’s city center.
Yesterday, we told you about John Mangham and his revitalization project in urban Adair Park. Today’s tale is about suburban boom. Borrower Howard Zuckerman came to us with more than 35 years of experience in residential real estate development and investing. When he proposed his multi-family duplex project in The Haven at Lost Mountain, we said yes and opened up the opportunity to our community of lenders (which was still just a few hundred people at the time) in March 2014.
Less than a month later, 50 lenders had fully funded this $60,000, 6-month loan with an 11% rate. Similar to our first 3 loans, we anticipated quick success for both Howard and our lending community. And we were right! The lenders who made this project possible received repayment of their principal plus interest 6 months after making an investment. Howard built and sold the condos and the loan repaid less than 6 months later. That comes as no surprise considering Atlanta is the 9th largest metro area in the United States, and the largest in the state of Georgia. In fact, the metro area has grown 28% in the last decade alone.
The Haven project is a great example of the suburban building boom Atlanta has experienced as a result of steady growth and population influx. It is the 9th largest metro area, and growing--28% over the last decade. GROUNDFLOOR is making it possible for developers to respond to those housing needs like never before. Our process is simple and straight-forward. Borrowers apply for a loan. Once approved, we make the loan available to our community of lenders. Lenders then invest to fund the projects they choose. When the loan fully funds, the borrower completes the project; and a new home is ready to be purchased.
Join our community and build big things with us. Fund a loan today with an investment of $500 or more and we’ll add $100 to your investment for a total of $600 as part of our “Cheers to 2 Years!” promotion.