Beyond the Stock Market, a Groundfloor Production

Groundfloor CEO Brian Dally hosts Michael Schwartz, Chief Administrative Officer of Hive Financial Assets, a direct-lending private credit fund that has raised $160 million to finance non-bank consumer lenders. Michael explains Hive’s niche approach: embedding its algorithm into partner lenders’ workflows to help consumers facing event-driven needs like auto repairs, medical bills, appliance failures, and increasingly living expenses. He contrasts Hive’s simple-interest installment loans and borrower-friendly policies with predatory payday lending, noting repeat-borrower benefits. They discuss resilience from short-duration loans and real-time model adjustments to economic changes, and outline how the Hive-Groundfloor partnership formed.00:00 Show Intro01:35 What Hive Does02:55 Private Credit Headlines05:37 Middle America Borrowers06:50 AI Underwriting Edge11:15 Unit Economics Alignment13:22 Loan Use Cases16:48 Rates Terms Collections18:30 Installment Loans Explained19:48 Why Repeat Borrowers Matter22:34 Short Duration Advantage23:39 How Partnership Formed27:38 Rapid Fire Insights32:31 Closing And Next DealsBeyond the Stock Market podcast: https://groundfloor.com/podcastConnect with Brian Dally on LinkedIn: https://www.linkedin.com/in/bdally/Connect with Michael Schwartz on LinkedIn: https://www.linkedin.com/in/mjschwartz4/References:Hive Financial Assets: https://www.hivefinancialassets.com/Author Erik Larson: https://eriklarsonbooks.com/about-the-author/

Host Brian Dally continues his conversation with Patrick Donoghue, VP and GM of Groundfloor Lending, reflecting on Patrick’s 10-year journey helping build Groundfloor’s lending operations and proprietary technology as the company grew to over $1B in loans and more than $2B in platform investments. They discuss key milestones, challenges and early culture mistakes, and how the company improved by handling conflict more professionally while emphasizing transparency, authenticity, and community. Patrick explains how real estate project financing has evolved since 2016, with more capital availability, lower costs, and Wall Street-driven securitization replacing “hard money” norms. Looking ahead, he expects Groundfloor to expand longer-term exit capital options. 00:00 Welcome Back and Setup00:24 Ten Years Building Groundfloor02:57 Milestones and Growing Pains05:00 Culture Shift and Values07:23 Handling Conflict Better08:28 Capital Trends Since 201610:42 Whats Next for Lending11:51 Rapid Fire Real Estate QandA14:06 Mission People and Wrap UpBeyond the Stock Market podcast: https://groundfloor.com/podcast Connect with Brian Dally on LinkedIn: https://www.linkedin.com/in/bdally/ Connect with Patrick Donoghue on LinkedIn: https://www.linkedin.com/in/patrick-donoghue-60723723/References: Groundfloor Lending: https://lending.groundfloor.com/ Five Dysfunctions of a Team by Patrick M. Lencioni: https://a.co/d/0gckczD1

Host Brian Dally, CEO of Groundfloor, interviews Patrick Donoghue, Vice President and General Manager of Groundfloor Lending, about his lending background, early exposure to private/hard money lending, and joining Groundfloor in 2016. Donoghue explains how Groundfloor Lending is an end-to-end “factory” that originates, underwrites, closes, and services fix-and-flip and new construction loans, and describes how loans now flow not only to the retail investor platform but also into securitizations, creating a mix of private credit opportunities for retail and institutional investors. He outlines why borrowers choose Groundfloor—especially deferred interest to preserve cash flow—and shares market observations from recent years. Donoghue expects 2026 to remain sluggish, driven by affordability constraints and employment uncertainty.00:00 Welcome and Guest Intro01:48 Patrick’s Career Journey04:34 What Groundfloor Lending Does06:17 Where Loans Get Sold08:05 Retail and Institutional Mix09:53 Who Borrows and Why12:14 Deferred Interest Advantage14:08 Housing Market Trends Now16:28 Outlook for 202618:04 Wrap Up and Next StepsBeyond the Stock Market podcast: https://groundfloor.com/podcast Connect with Brian Dally on LinkedIn: https://www.linkedin.com/in/bdally/ Connect with Patrick Donoghue on LinkedIn: https://www.linkedin.com/in/patrick-donoghue-60723723/References: Groundfloor Lending: https://lending.groundfloor.com/ Shark Tank: https://abc.com/show/535e2b07-18a9-4d94-9803-9ed8257b9d23

Brian Dally continues his conversation with Groundfloor head of investments Robert Varghese on lessons from past downturns amid inflation and rate volatility, emphasizing not panicking, having a plan, and diversifying, including through private markets. Varghese says Groundfloor’s 300,000 investors are seeking higher yield, diversification, access to new asset classes, and lower volatility supported by hard assets. He explains how Groundfloor’s Notes are positioned as CD-like but backed by pools of real estate loans and offering higher returns. He outlines plans to expand private market offerings beyond real estate lending and contrasts Groundfloor’s origination-first approach with competitors.00:00 Welcome Back Part Two00:36 Lessons From Downturns03:08 Why Retail Investors Shift04:51 Notes Program And 202608:51 Notes Versus Bank CDs11:06 What Makes Groundfloor Different15:29 Rapid Fire Q And A18:03 Misconceptions About Hard Money19:22 Career Advice For Managers21:13 Final Thanks And OutroBeyond the Stock Market podcast: https://groundfloor.com/podcastConnect with Brian Dally on LinkedIn: https://www.linkedin.com/in/bdally/Connect with Robert Varghese on LinkedIn: https://www.linkedin.com/in/j-robert-varghese-cmt-b340338/References:​Groundfloor Notes: https://groundfloor.com/notes/Clayton Christensen: https://www.christenseninstitute.org/High Yield Investor by Sam Smith: https://www.youtube.com/@SamuelDividendsPublic Enemy, Fight the Power: https://www.youtube.com/watch?v=mmo3HFa2vjg

Host Brian Dally, CEO and cofounder of Groundfloor, launches the Beyond the Stock Market Podcast with first guest Robert Varghese, Groundfloor’s head of investments, to introduce the show and discuss private market trends. Varghese recounts 30+ years across investment banking and mutual fund management, before moving into fintech and private credit and joining Groundfloor. He defines alternatives and private markets (private debt, private equity, real estate, infrastructure), explains their growing mainstream access, and argues portfolios benefit from combining public and private assets to address stock volatility. He emphasizes all investing involves risk and investors must be appropriately compensated, highlighting risks beyond volatility such as duration, term, and liquidity. The episode ends teasing part two on future investing trends and Groundfloor updates.00:00 Welcome to the Podcast00:44 Meet Robert Varghese01:43 Roberts Career Journey06:10 Defining Private Markets08:28 Why Not Just Stocks10:34 Risk and Return Basics14:19 What’s Next in Private Markets17:07 Part Two and Wrap UpBeyond the Stock Market podcast: https://groundfloor.com/podcastConnect with Brian Dally on LinkedIn: https://www.linkedin.com/in/bdally/Connect with Robert Varghese on LinkedIn: https://www.linkedin.com/in/j-robert-varghese-cmt-b340338/References:Treasury Bills: https://www.treasurydirect.gov/marketable-securities/treasury-bills/State Street: https://www.ssga.com/us/en/intermediary