Asset Management Weekly Update, June 28 - July 4, 2020
BY Dave Wilson, Director of Asset Management 07, JUL 2020
As the financial and real estate markets continue to experience upheaval due to the COVID-19 pandemic, we understand that some GROUNDFLOOR investors may become more concerned than usual with the status of their investments.
We recently published an extensive stress test analysis of our entire outstanding portfolio to understand what potential effects a coronavirus-related recession could have on our investors’ portfolios. While this analysis is useful to help inform our customers about how GROUNDFLOOR investments could respond to changing market conditions, we also feel it is important to share how our loans are actually performing in real time.
To that end, as part of our continued efforts to be highly accountable to our investors and provide ongoing transparency, we are pleased to begin publishing weekly updates of loan repayments and asset management activities. This latest installment looks at activity from last week, June 28 - July 4, 2020. You may view activity from the previous weeks by clicking the links below.
June 21-27, 2020
June 14-20, 2020
June 7-13, 2020
May 31-June 6, 2020
May 24-30, 2020
May 17-23, 2020
May 10-16, 2020
Principal and Interest Repaid Over The Past Four Weeks
First, let’s take a look at the total principal and interest repayments disbursed to investors over the past four weeks:
Aggregated Performance Metrics
Next, let’s take a deeper dive into repayment activity over the past weeks to get a better picture of how our recently repaid loans have been performing. We examine the metrics of loans repaid within the last four weeks, loans repaid since the start of Q2 (which also coincides with the general onset of economic impacts in the U.S. of the COVID-19 pandemic), and loans repaid year to date.
It’s important to underscore that this table showcases the performance of loans that were repaid during the delineated periods, not the performance of loans originated during these timeframes.
Last Week’s Repayments - June 28 - July 4
This table presents loans that were repaid within the previous week (Sunday-Saturday), with details on the status, actual vs. expected term, actual vs. expected rate, and the exit valuation (sales price or appraised value at time of refinancing):
*NOTE: Actual rate is not inclusive of any promotions. Individual repayments are dependent on how long your principal is active in a given loan.
**NOTE: The borrower did not disclose the source of repayment proceeds.
Key To Loan Status Column:
Current - loan remained current throughout the term and repaid with full principal (plus interest)
Default - loan was resolved while in default
Workout - a workout plan was put into effect and the loan was resolved under the terms of the workout agreement
REO - GROUNDFLOOR assumed title to the property (either through foreclosure or deed in lieu) and sold the property.
Links to the loan detail pages for the above loans:
730 White Bird Way
723 Reed Ave
208 West Floribraska Ave (Loan #1 and Loan #2)
6818 West Bayou Dr
201 Austin Hill Ct
3011 Lanny Ln
1162 Smith St SW
1619 Bain St
343, 341, & 335 Rogers St
3336 Chappell Ln
46 Brentwood Dr
18066 Roselawn St
2430 Prospect St
4508 East Frontenac Dr
4117 Ruby Dr E
13079 Sawpit Rd
7661 Melissa Ct N
2464 Hopkins St
103 Curlew Dr
Special Situations Repaid Last Week
Next, we provide a weekly overview of special situation loans we resolved in the prior week.
Last week, a total of 19 loans were repaid. 14 of these loans proceeded according to schedule, repaying on time and in full with the contract interest rate. 5 loans last week were special situation loans, the details of which are below.
723 Reed Ave - Repaid Out Of Default
The borrower experienced COVID-related delays in selling the house. As the loan was not repaid at maturity, it was in default, but the borrower was granted a concession and did not pay default interest.
1162 Smith St SW - Repaid Out Of Default
The borrower did not complete the renovation by the maturity date. A forbearance agreement was entered into granting the borrower a six month extension, and the loan was paid off pursuant to the terms of the forbearance agreement.
343, 341 & 335 Rogers St - Repaid Out Of Default
The loan was placed in default due to a lien being placed on the property. Foreclosure was commenced, but the borrower repaid the loan prior to the foreclosure sale.
18066 Roselawn St - Repaid Out Of Default
The borrower did not complete the renovation by the maturity date. A forbearance agreement was entered into granting the borrower a 90-day extension; however, the loan was paid off after the expiration of the forbearance agreement, so the borrower incurred default interest charges.
4117 Ruby Dr E - Repaid Out Of Default
The property experienced delays in selling. The property was ultimately sold after the maturity date.
Special Situations Activity Last Week
Finally, our asset management team moved forward with the following special situation loans last week (see link to each individual loan page for detailed history of updates). As a reminder, all performing loans are monitored for repayment status starting at 120 days prior to maturity.
We have entered into a workout agreement on the following loans:
We proceeded with foreclosure actions on the following properties last week:
Real Estate Owned (REO) Activity:
We did not take possession of any new properties last week.
We went under contract to sell the following properties last week:
We did not sell any real estate owned properties last week.