# EDGAR Filing Document

**Accession Number:** 0002049963
**File Stem:** 0001104659-25-094452
**Filing Date:** 2025-9
**Character Count:** 27095
**Document Hash:** bacc292f7504f37996d3955ada41f452
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-094452.hdr.sgml**: 20250929

**ACCESSION NUMBER**: 0001104659-25-094452

**CONFORMED SUBMISSION TYPE**: 1-SA

**PUBLIC DOCUMENT COUNT**: 1

**CONFORMED PERIOD OF REPORT**: 20250630

**FILED AS OF DATE**: 20250929

**DATE AS OF CHANGE**: 20250929

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Groundfloor Loans 2 LLC
- **CENTRAL INDEX KEY:** 0002049963
- **STANDARD INDUSTRIAL CLASSIFICATION:** REAL ESTATE [6500]
- **ORGANIZATION NAME:** 05 Real Estate & Construction
- **EIN:** 331650240
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 1-SA
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-01001
- **FILM NUMBER:** 251355860

**BUSINESS ADDRESS:**
- **STREET 1:** 1201 PEACHTREE STREET NE, SUITE 1104-400
- **STREET 2:** COLONY SQUARE
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30361
- **BUSINESS PHONE:** 404-850-9223

**MAIL ADDRESS:**
- **STREET 1:** 1201 PEACHTREE STREET NE, SUITE 1104-400
- **STREET 2:** COLONY SQUARE
- **CITY:** ATLANTA
- **STATE:** GA
- **ZIP:** 30361

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-SA**

**SEMIANNUAL REPORT**

**SEMIANNUAL REPORT PURSUANT TO REGULATION A OF THE SECURITIES ACT OF 1933**

**For the Semiannual Period Ended June 30, 2025**

**GROUNDFLOOR LOANS 2, LLC**

(Exact name of registrant as specified in its charter)

Commission File Number: **024-12552**

---

| | |
|:---|:---|
| **Delaware** | **93-4112356** |
| (State or other jurisdiction of<br> incorporation or organization) | (I.R.S. Employer<br> Identification No.) |
| **1201 Peachtree St. NE, Suite 1104-400**<br> **Atlanta, GA**<br> (Address of principal executive offices) | **30361**<br> (Zip Code) |

---

**(404) 850-9225**<br> Registrant's telephone number, including area code

**COMMON SHARES**<br> (Title of each class of securities issued pursuant to Regulation A)

**Groundfloor LOANS 2, LLC.**

**form 1-SA**

**Semiannual Period Ending June 30, 2025**

September 30, 2025

**DESCRIPTION OF THE COMPANY'S BUSINESS**

We incorporate by reference the section titled "Description of the Company's Business," filed on Form 1-A dated July 30, 2025 and qualified September 10, 2025. [Please see this filing on EDGAR](https://www.sec.gov/Archives/edgar/data/2049963/000110465925072211/tm2515897d3_partiiandiii.htm).

**MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS**

The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and the related notes thereto contained in this Offering on Form 1-A ("Offering"). The following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results may differ materially from such statements.

**Overview**

Groundfloor Loans 2 LLC (the "Company") is a recently organized a Delaware limited liability company formed to invest in and manage a diversified portfolio of commercial real estate assets. We will invest in secured commercial real estate loans (each, a "*Loan*") that have been originated through the Groundfloor Platform, each corresponding to a real estate development project (each, a "*Project*") financed by such Loan. The borrower for each Project is a legal entity (the "*Borrower*") that owns the underlying property and has been organized by one or more individuals (each, a "*Principal*") that own and operate the Borrower.

We are managed by Groundfloor Advisors, LLC (our "*Manager*"), a wholly owned subsidiary of our Sponsor, Groundfloor Finance Inc. (our "*Sponsor*").

Our Sponsor owns and operates an online investment platform *https://www.groundfloor.com* (the "*Groundfloor Platform*") that allows investors to hold interests in real estate opportunities that may have been historically difficult to access for some investors. Through the Groundfloor Platform, investors can browse and screen real estate investments, view details of an investment and sign legal documents online.

Our Manager will enter into a shared services agreement with our Sponsor, effective upon the commencement of this Offering. Pursuant to this agreement, our Manager will be provided with access to, among other things, our Sponsor's underwriting and loan origination services through the Groundfloor Platform as well as administration services addressing legal, compliance, investor relations and information technologies necessary for the performance by our Manager of its duties under the operating agreement in exchange for a fee representing our Manager's allocable cost for these services. The fee paid by our Manager pursuant to the shared services agreement will not constitute a reimbursable expense under our operating agreement. However, under the shared services agreement, our Sponsor will be entitled to receive reimbursement of expenses incurred on behalf of us or our Manager that we are required to pay to our Manager under our operating agreement.

**Operating Results**

The Company was formed on October 22, 2024 and, as of the date of this Offering, we have not commenced operations. Having not commenced active operations, our management is not aware of any material trends or uncertainties, favorable or unfavorable, other than economic conditions affecting the commercial and residential real estate industries and real estate generally.

The unaudited financial statements included in this Offering Circular have been prepared assuming that the Company will continue as a going concern.

**Plan of Operations and Liquidity and Capital Resources**

We are dependent upon the net proceeds from this Offering to conduct our proposed operations. We will obtain the capital required to purchase and originate real estate-related investments and conduct our operations from the proceeds of this offering and any future offerings we may conduct, from secured or unsecured financings from banks and other lenders and from any undistributed funds from our operations. As of the date of this Offering, we have not made any investments, and our total assets consist of $543,019 in cash. For information regarding the anticipated use of proceeds from this Offering, see "Estimated Use of Proceeds."

If we are unable to raise a substantial amount in gross offering proceeds, we will make fewer investments resulting in less diversification in terms of the type, number and size of investments we make and the value of an investment in us will fluctuate with the performance of the specific assets we acquire. Further, we will have certain fixed operating expenses, including certain expenses as a publicly offered REIT, regardless of whether we are able to raise substantial funds in this Offering. Our inability to raise substantial funds would increase our fixed operating expenses as a percentage of gross income, reducing our net income and limiting our ability to make distributions.

We currently have no outstanding debt and have not received a commitment from any lender to provide us with financing.

In addition to making investments in accordance with our investment objectives, we expect to use our capital resources to make certain payments to our Manager. During our organization and offering stage, these payments will include payments for reimbursement of certain organization and offering expenses. During our acquisition stage, we expect to make payments to our Manager in connection with the selection and origination or purchase of investments, the management of our assets and costs incurred by our Manager in providing services to us.

We intend to elect to be taxed as a REIT commencing with our taxable year ending December 31, 2025. To maintain our qualification as a REIT, we will be required to make aggregate annual distributions to our shareholders of at least 90% of our REIT taxable income (computed without regard to the dividends paid deduction and excluding net capital gain). Our Manager may authorize distributions in excess of those required for us to maintain REIT status depending on our financial condition and such other factors as our Manager deems relevant. Provided we have sufficient available cash flow, we intend to authorize and declare distributions based on daily record dates and pay distributions on a quarterly or other periodic basis. We have not established a minimum distribution level.

**Trends and Key Factors Affecting Our Performance**

We have not yet commenced operations. As such, we are not aware of any trends, uncertainties, demands, commitments or events that are reasonably likely to have a material effect on our revenues, income from continuing operations, profitability, liquidity or capital resources.

**Critical Accounting Policies**

Our accounting policies have been established to conform with U.S. GAAP. The preparation of financial statements in conformity with U.S. GAAP requires us to use judgment in the application of accounting policies, including making estimates and assumptions. These judgments may affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenue and expenses during the reporting periods. Management believes that we have made these estimates and assumptions in an appropriate manner and in a way that accurately reflects our financial condition. We continually test and evaluate these estimates and assumptions using our historical knowledge of the business, as well as other factors, to ensure that they are reasonable for reporting purposes. However, actual results may differ from these estimates and assumptions. If our judgment or interpretation of the facts and circumstances relating to various transactions had been different, it is possible that different accounting policies would have been applied, thus resulting in a different presentation of the financial statements. We believe the following critical accounting policies are the most critical to aid in fully understanding our reported financial results, and they require our most difficult, subjective or complex judgments, resulting from the need to make estimates about the effect of matters that are inherently uncertain.

*Allowance for Current Expected Credit Losses*

The Company records an allowance for current expected credit losses in accordance with the current expected credit loss ("CECL") Standard on the loan portfolio on a collective basis by assets with similar risk characteristics. Where assets cannot be classified with other assets due to dissimilar risk characteristics, the Company assessed these assets on an individual basis.

The CECL Standard requires an entity to consider historical loss experience, current conditions, and a reasonable and supportable forecast of the economic environment. The Company utilizes a loss-rate approach for estimating current expected credit losses. In accordance with the loss-rate method, an adjusted historical loss rate is applied to the amortized cost of an asset or pool of assets at the balance sheet date.

In determining the CECL allowance, we consider various factors including (i) historical loss experience in our portfolio (ii) current performance of the U.S. residential housing market, (iii) future expectations of the U.S. residential housing market, and (iv) future expectations of the short-term macroeconomic environment. Management estimates the allowance for CECL using relevant information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. We utilize a reasonable and supportable forecast period of 12 months. The allowance for CECL is maintained at a level sufficient to provide for expected credit losses over the life of the loans based on evaluating historical credit loss experience and making adjustments to historical loss information applied to the current loan portfolio.

The Company made an accounting policy election to exclude "Interest receivable" from the amortized cost basis of loans in determining the CECL allowance, as any uncollected interest receivable is written off in a timely manner.

As of June 30, 2025 we do not have a CECL allowance.

*Recent Accounting Pronouncements*

The Financial Accounting Standards Board has released several Accounting Standards Updates (each an "ASU") that may have an impact on our financial statements. We are currently evaluating the impact of the various ASUs on our financial statements and determining our plans for adoption.

*Extended Transition Period*

Under Section 107 of the Jumpstart Our Business Startups Act of 2012, we are permitted to use the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. This permits us to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period provided in Section 7(a) (2)(B) of the Securities Act for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in Section 7(a)(2)(B). By electing to extend the transition period for complying with new or revised accounting standards, these financial statements may not be comparable to companies that adopt accounting standard updates upon the public business entity effective date

**GROUNDFLOOR LOANS 2, LLC**

**Financial Statements (Unaudited)**

**As of June 30, 2025 and December 31, 2024**

**and for the six-month periods ended June 30, 2025**

**INDEX TO FINANCIAL STATEMENT OF GROUNDFLOOR LOANS 2, LLC**

---

| | |
|:---|:---|
| **Financial Statement** |  |
| [Balance Sheets (Unaudited)](#a_001) | [F-2](#a_001) |
| [Notes to the Financial Statement](#a_002) | [F-3](#a_002) |

---

**Groundfloor Loans 2, LLC**

**Balance Sheet (Unaudited)**

---

| | | |
|:---|:---|:---|
|  | **June 30,**<br>**2025** | **December 31,**<br>**2024** |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;Cash | $543019 | $5000 |
| Total current assets | 543019 | 5000 |
| Total assets | $543019 | $5000 |
| **Liabilities and Member's Deficit** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;Due to Sponsor | $144341 | $- |
| &nbsp;&nbsp;&nbsp;Related party payable | 538678 | - |
| Total current liabilities | 683019 | - |
| Total liabilities | 683019 | - |
| Member's deficit: |  |  |
| &nbsp;&nbsp;&nbsp;Member's capital | 5000 | 5000 |
| &nbsp;&nbsp;&nbsp;Member's deficit | (145000) | - |
| Member's deficit | (140000) | 5000 |
| Total liabilities and member's deficit | $543019 | $5000 |

---

*See accompanying notes to financial statement.*

**G** **roundfloor Loans 2, LLC**

**Notes to the Financial Statement (Unaudited)**

For the six-month period ended June 30, 2025

**1. Formation and Organization**

Groundfloor Loans 2, LLC (the "**Company**") was formed on October 22, 2024, as a Delaware Limited Liability Company and intends to qualify as a real estate investment trust ("**REIT**") for U.S. federal income tax purposes. The Company was organized primarily to invest in and manage a diversified portfolio of commercial real estate investments and other real estate-related assets. The Company may make its investments through majority-owned subsidiaries, some of which may have rights to receive preferred economic returns. Substantially all of the Company's business will be externally managed by Groundfloor Advisors, LLC (the "**Manager**"), a Delaware limited liability company.

As of June 30, 2025, the Company has not begun operations.

Subject to certain restrictions and limitations, the Manager is responsible for managing the Company's affairs on a day-to-day basis and for identifying and making acquisitions and investments on behalf of the Company.

The Company intends to file an initial offering statement on Form 1-A with the SEC with respect to an offering (the "**Offering**") of up to $75,000,000 in common shares, for an initial price of $1.00 per share.

A maximum of $75,000,000 in the Company's common shares may be sold to the public in the initial offering, once the Offering is qualified. The Manager has the authority to issue an unlimited number of common shares. As of December 31, 2024, the Company had issued 5,000 common shares to Groundfloor Finance Inc. (the "**Sponsor**"), an owner of the Manager, for an aggregate purchase price of $5,000.

The Company intends to have a December 31st fiscal year end.

**2. Summary of Significant Accounting Policies**

***Basis of Presentation***

The accompanying financial statement and related notes of the Company have been prepared on the accrual basis of accounting and conform to accounting principles generally accepted in the United States of America ("**U.S. GAAP**") and Article 8 of Regulation S-X of the rules and regulations of the SEC.

***Estimates***

The preparation of the financial statement in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statement and accompanying notes. Actual results could materially differ from those estimates.

***Organizational and Offering Costs***

Organizational and offering costs of the Company are initially being paid by the Manager on behalf of the Company. These organization and offering costs include all expenses to be paid by the Company in connection with the formation of the Company and the qualification of the Offering, and the marketing and distribution of shares, including, without limitation, expenses for printing, and amending offering statements or supplementing offering circulars, mailing and distributing costs, telephones, Internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants' and attorneys' fees. The Company anticipates that, pursuant to the Company's amended and restated operating agreement (the "**Operating Agreement**"), the Company will be obligated to reimburse the Manager, or its affiliates, as applicable, for organization and offering costs paid by them on behalf of the Company.

**G** **roundfloor Loans 2, LLC**

**Notes to the Financial Statement (continued)**

For the six-month period ended June 30, 2025

***Income Taxes***

The Company intends to elect to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, and intends to operate as such, commencing with the taxable year ending December 31, 2025. The Company expects to have little or no taxable income prior to electing REIT status. To qualify as a REIT, the Company must meet certain organizational and operational requirements, including a requirement to distribute at least 90% of the Company's annual REIT taxable income to its members (which is computed without regard to the dividends paid deduction or net capital gain and which does not necessarily equal net income as calculated in accordance with U.S. GAAP). As a REIT, the Company generally will not be subject to U.S. federal income tax to the extent it distributes qualifying dividends to its members. Even if the Company qualifies for taxation as a REIT, it may be subject to certain state and local taxes on its income and property, and federal income and excise taxes on its undistributed income.

***Accounting Pronouncements***

Under Section 107 of the JOBS Act, we are permitted to use the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. This permits us to delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date that we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in Section 7(a)(2)(B). By electing to extend the transition period for complying with new or revised accounting standards, this financial statement may not be comparable to companies that adopt accounting standard updates upon the public business entity effective dates.

**3. Related Party Arrangements**

***Groundfloor Advisors, LLC, Manager***

The Manager and its affiliates will receive fees and expense reimbursements for services relating to this offering and the investment and management of our assets. The Manager is a wholly owned subsidiary of the Sponsor.

The Manager will be reimbursed for organizational and offering expenses incurred in conjunction with our organization and the Offering, but the aggregate monthly amount reimbursed can never exceed 0.50% of the aggregate gross offering proceeds from this Offering. These organizational and offering expenses include all expenses paid by the Manager and to be reimbursed by us in connection with the formation of the Company and the qualification of the Offering, and the marketing and distribution of shares, including, without limitation, expenses for printing, engraving and amending offering statements or supplementing offering circulars, mailing and distributing costs, telephones, internet and other telecommunications costs, all advertising and marketing expenses, charges of experts and fees, expenses and taxes related to the filing, registration and qualification of the sale of shares under federal and state laws, including taxes and fees and accountants' and attorneys' fees. See Note 2 – "Summary of Significant Accounting Policies – *Organizational and Offering Costs*".

The Company will pay the Manager an asset management fee of 0.5%, applied to every investor distribution. Our Manager may, in its sole discretion, waive its asset management fee, in whole or in part.

**G** **roundfloor Loans 2, LLC**

**Notes to the Financial Statement (continued)**

For the six-month period ended June 30, 2025

The Company will reimburse the Manager for actual expenses incurred on our behalf in connection with the special servicing of non-performing assets. The Manager will determine, in its sole discretion, whether an asset is non-performing.

***Groundfloor Credit LLC***

As an alternative means of acquiring loans or other investments for which we do not yet have sufficient funds, and in order to comply with certain state lending requirements, Groundfloor Credit, LLC, an affiliate of our Sponsor, or its affiliates may close and fund a Loan or other investment prior to it being acquired by us. The ability to warehouse investments allows us the flexibility to deploy our offering proceeds as funds are raised. We then will acquire such investment at a price equal to the fair market value of the Loan or other investment (including reimbursements for servicing fees and accrued interest, if any), so there is no mark-up (or mark-down) at the time of our acquisition.

***Groundfloor Finance Inc., Member and Sponsor***

Groundfloor Finance Inc. owns and operates an online investment platform https://www.groundfloor.com (the "**Groundfloor Platform")** that allows investors to invest in interests in real estate opportunities that may have been historically difficult to access for some investors. Groundfloor Finance Inc. is the sole member of the Company and holds 5,000 shares as of June 30, 2025.

***Executive Officers of Our Manager***

As of the date this financial statement is issued, the executive officers of our Manager and their positions and offices are as follows:

---

| | |
|:---|:---|
| **Name** | **Position** |
| Nick Bhargava | Chief Executive Officer |

---

**4. Economic Dependency**

Under various agreements, the Company has engaged or will engage Groundfloor Advisors, LLC and its affiliates to provide certain services that are essential to the Company, including asset management services, asset acquisition and disposition decisions, the sale of the Company's common shares available for issue, as well as other administrative responsibilities for the Company including accounting services and investor relations. As a result of these relationships, the Company is dependent upon Groundfloor Advisors, LLC and its affiliates. In the event that these companies were unable to provide the Company with the respective services, the Company would be required to find alternative providers of these services.

**5. Commitments and Contingencies**

***Legal Proceedings***

As of the date of the financial statement, we are not currently named as a defendant in any active or pending litigation. However, it is possible that the Company could become involved in various litigation matters arising in the ordinary course of our business. Although we are unable to predict with certainty the eventual outcome of any litigation, management is not aware of any current litigation that we assess as being material to the financial statement.

**G** **roundfloor Loans 2, LLC**

**Notes to the Financial Statement (continued)**

For the six-month period ended June 30, 2025

**6. Subsequent Events**

In connection with the preparation of the accompanying financial statement, we have evaluated events and transactions occurring through September 30, 2025, the date at which the financial statement was available to be issued.

On September 10, 2025, the Offering Circular was qualified and Groundfloor Loans 2, LLC began operations.

**SIGNATURES**

Pursuant to the requirements of Regulation A, the issuer has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Atlanta, State of Georgia, on September 29, 2025.

---

| | |
|:---|:---|
| **GROUNDFLOOR ADVISORS, LLC for GROUNDFLOOR LOANS 2 LLC** | **GROUNDFLOOR ADVISORS, LLC for GROUNDFLOOR LOANS 2 LLC** |
| By: | /s/ Nick Bhargava |
| Name: | Nick Bhargava |
| Title: | Chief Executive Officer |

---

This report has been signed by the following persons in the capacities and on the dates indicated.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| /s/ Nick Bhargava | Chief Executive Officer of Groundfloor Advisors, LLC (Principal Executive and Accounting Officer) | September 29, 2025 |
| **Nick Bhargava** | Chief Executive Officer of Groundfloor Advisors, LLC (Principal Executive and Accounting Officer) |  |

---

---

| | |
|:---|:---|
| \*By: | /s/ Nick Bhargava |
| Nick Bhargava | Nick Bhargava |
| Attorney-in-fact | Attorney-in-fact |

---