Groundfloor Loans 3 LLC

Key economics

Preferred return

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Hurdle rate

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LP / GP split

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GP catch-up

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GP clawback

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GP commitment

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Diligence findings (15 · 4 high/critical)

• high
  DDQ gap: Does the fund engage an independent auditor?The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.
• high
  DDQ gap: Does the fund have a GP clawback provision?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• high
  DDQ gap: What is the LP/GP carried-interest split above the preferred return?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• high
  DDQ gap: What is the preferred return (hurdle) rate offered to LPs?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• medium
  DDQ gap: Does the fund use a third-party fund administrator?The offering documents don't answer a standard institutional DDQ question (Governance). An allocator will ask this directly — the GP should be ready with an answer.
• medium
  DDQ gap: Is there a GP catch-up, and at what rate?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• medium
  DDQ gap: What distribution-waterfall structure does the fund use?The offering documents don't answer a standard institutional DDQ question (Structure). An allocator will ask this directly — the GP should be ready with an answer.
• medium
  DDQ gap: What is the GP's capital commitment (skin in the game)?The offering documents don't answer a standard institutional DDQ question (Economics). An allocator will ask this directly — the GP should be ready with an answer.
• low
  Document-quality defect — Nick Bhargava bioThe identical Nick Bhargava biography describes him as 'co-founder of our Sponsor' in the Management section but 'co-founder of the Company' in the affiliated-management section; the Company was formed in October 2025, so the latter is a wrong-term substitution creating a factual conflict.
• low
  Document-quality defect — Waiver Provisions enforceability sentenceIncomplete/broken sentence in the Waiver Provisions enforceability discussion: the conditional clause 'to the extent that one or more of the provisions ... with respect to the Waiver.' is cut off with no main clause.
• low
  Numeric inconsistency — Company telephone numberThe Company's telephone number is stated as (404) 850-9225 on the cover/summary pages but as (404) 850-9223 in the Summary, an internal contradiction in contact information.
• info
  Spelling / typo — a recently organized a DelawareDoubled article 'a ... a' in the Overview's opening sentence: 'a recently organized a Delaware limited liability company'.
• info
  Spelling / typo — Affilaites'Misspelling of 'Affiliates'' as 'Affilaites'' in substantive risk-factor text.
• info
  Spelling / typo — debit finance professionals'debit finance professionals' is a typo for 'debt finance professionals' in substantive text describing the Manager's personnel.
• info
  Spelling / typo — earn the any further interestGarbled phrase 'earn the any further interest' (extra 'the') in the prepayment risk disclosure.

DDQ readiness — 38% covered

5 answered · 0 partial · 8 gaps of 13 standard questions.