Asset Management Weekly Update, November 8-14, 2020
BYJoey Wilson 16, 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 8-14, 2020. You may view activity from the previous weeks by clicking the links below.
November 1-7, 2020
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 8-14
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:
1028 East McDonald Ave
4125 Platt Springs Rd
1310 & 1312 North Charlotte Ave
519 ½ East Barnard St
34 South Longview Rd
5204 Backwoodsman Ave
16763 Sprenger Ave
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 7 loans repaid. 4 of these loans proceeded according to schedule, repaying on time and in full with the contract interest rate. 3 loans last week were special situation loans, the details of which are below.
1028 East McDonald Ave - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was in the process of refinancing the current loan. Due to COVID-19, the refinancing process took longer than expected. GROUNDFLOOR provided loan leniency in the form of a 60-day extension so the borrower had sufficient time to refinance the loan and pay off GROUNDFLOOR.
519 ½ East Barnard St - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan by maturity. The project was completed and listed on the market before the maturity date. The borrower was not getting enough response to the showings due to COVID-19. The property was under contract and scheduled to close on October 30, 2020. The appraisal was delayed from the buyer's lending company, so the closing was pushed back until November 12, 2020.
16763 Sprenger Ave - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was facing delays completing the property 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 for sale. The borrower was able to pay off GROUNDFLOOR on November 12, 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.
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 did not take possession of any 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.