Asset Management Weekly Update, November 1-7, 2020
BYJoey Wilson 02, NOV 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, November 1-7, 2020. You may view activity from the previous weeks by clicking the links below.
October 25-31, 2020
October 18-24, 2020
October 11-17, 2020
October 4-10, 2020
September 27 - October 3, 2020
September 20-26, 2020
September 13-19, 2020
September 6-12, 2020
August 30 - September 5, 2020
August 23-29, 2020
August 16-22, 2020
August 9-15, 2020
August 2-8, 2020
July 26 - August 1, 2020
July 19-25, 2020
July 12-18, 2020
July 5-11, 2020
June 28 - July 4, 2020
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 - November 1-7
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:
315 Cottonwood Ave
1447 Southeast Pitcher Rd
230 Hayes Ave
2951 Fischer St
1404 Inwood Terr
1559 Frazier Rd
6650 S Maryland Ave
66 Avalon St
2035 Chandler Ave
245 Smithstone Path
614 Field St
364 Argus Cir NW
1237 Milton Terr SE
7111 Strupwood Ct
1 Wayside Rd
27500 Cedar Rd #709
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 16 loans repaid. 4 of these loans proceeded according to schedule, repaying on time and in full with the contract interest rate. 12 loans last week were special situation loans, the details of which are below.
315 Cottonwood Ave - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay on time. The borrower had advised us that the property was not completed before the maturity because of some permitting delays due to COVID-19. The borrower was also in the process of refinancing the current loan to pay off GROUNDFLOOR. GROUNDFLOOR provided loan leniency in the form of a 6-month extension so the borrower had sufficient time to complete the property and refinance the loan. The borrower was able to complete the property and refinance the loan with another lender and pay off GROUNDFLOOR.
230 Hayes Ave - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay the loan on time. GROUNDFLOOR sent a Notice of Default to the borrower and engaged an attorney to move forward with the foreclosing proceedings. The borrower was able to refinance the loan and pay off GROUNDFLOOR on November 2, 2020.
2951 Fischer St - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan on time. The property was completed and listed on the market before the maturity date. The property was under contract in mid-September, but the buyer's lending company took longer than usual to close. The property was closed and the loan was repaid on November 2, 2020.
1404 Inwood Terr - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay the loan on time. The property was not completed before the maturity date because of COVID-19 delays. GROUNDFLOOR provided a loan leniency in the form of a 90-day extension so the borrower had adequate time to complete the property. The borrower was able to complete and list the property on the market. The property was sold and the loan was repaid on November 2, 2020.
66 Avalon St - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan on time. The property was not completed before the maturity date. GROUNDFLOOR provided a loan leniency in the form of a 60-day extension. The borrower was trying to refinance the loan with another lender so he could pay off GROUNDFLOOR. GROUNDFLOOR issued a Notice of Default to the borrower because the loan did not pay off at the forbearance maturity date, and our attorney commenced foreclosure proceedings. Our attorney was able to settle the case with the borrower and the borrower was able to repay the loan on November 2, 2020.
2035 Chandler Ave - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan on time. The property was not completed at the maturity date because the borrower was facing delays due to COVID-19. GROUNDFLOOR provided loan leniency in the form of a 90-day extension so the borrower had adequate time to complete the property. The property was completed and listed on the market. The borrower was able to repay GROUNDFLOOR on November 2, 2020.
245 Smithstone Path - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay the loan on time. The borrower was in the process of refinancing the current loan, but because of COVID-19 the refinancing was delayed. GROUNDFLOOR provided loan leniency in the form of a 90-day extension so the borrower had sufficient time to refinance the loan. The borrower was able to refinance the current loan with GROUNDFLOOR and repay the loan on November 4, 2020.
614 Field St - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan on time. The property was completed before the maturity date. The borrower was in the process of refinancing the current loan, but because of COVID-19 the refinancing was delayed. The borrower was able to refinance the current loan with another lender and pay off GROUNDFLOOR.
364 Argus Cir NW - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan on time. The property was completed and listed before the maturity date. The property was under contract to close on October 31, 2020. The borrower was able to sell the property and pay off GROUNDFLOOR on November 2, 2020.
1237 Milton Terr SE - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay the loan on time. The property was not completed before the maturity date because the borrower was facing delays due to COVID-19. GROUNDFLOOR provided loan leniency in the form of a 6-month extension so the borrower had adequate time to complete and list the property for sale. The property was under contract and scheduled to close on November 2, 2020. The borrower was able to repay the loan on November 4, 2020.
1 Wayside Rd - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan on time. The property was completed and listed on the market before the maturity date. Due to COVID-19, the borrower had a couple of purchase contracts fell through due to the buyer losing his job. The property was under contract in October. The borrower was able to sell the property and pay off GROUNDFLOOR on November 4, 2020.
27500 Cedar Rd #709 - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan on time. The borrower was in the process of refinancing the current loan with another lender. The borrower was able to refinance the loan and pay off GROUNDFLOOR on November 6, 2020.
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.
Loan Activity:
We entered into workout agreements on the following loans last week:
We did not proceed with foreclosure actions on any properties last week.
Real Estate Owned (REO) Activity:
We took possession of the following properties last week:
We did not go under contract to sell any properties last week.
We did not sell any real estate owned properties last week.