Asset Management Weekly Update, November 22-28, 2020
BYJoey Wilson 30, 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 22-28, 2020. You may view activity from the previous weeks by clicking the links below.
November 15-21, 2020
November 8-14, 2020
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 22-28
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:
3116 Delowe Dr
111 Wilson St
10522 Faye Way (Loan #1 and Loan #2)
156 Fairfield Pl NW (Loan #1 and Loan #2)
156 Fairfield Pl NW [2nd]
282 West Farms Rd (Loan #1 and Loan #2)
1918 2nd Ave
1414 SE 12th Terr
36 Bowen Ave SE
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 8 loans repaid. 5 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.
111 Wilson 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 property was under contract with an expected closing date of September 30th, 2020, but the closing date was extended and the seller was waiting on a clear to close from the buyer’s lender. The property did eventually close and GROUNDFLOOR was paid off.
10522 Faye Way - Repaid Via Workout Agreement
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 property was under contract with an expected closing date of September 30th, 2020, but the closing was delayed with a new closing date for November 20th, 2020. The property did eventually close on November 20th, 2020 and GROUNDFLOOR was paid off.
156 Fairfield Pl NW - Repaid Via Settlement
This was a "split loan," meaning the loan was divided into a first lien position (two loans) and a second lien position (one loan). The project was in default because the borrower failed to repay by maturity. The borrower planned to refinance the loan, but refinanced it below the estimated ARV. Additionally, there were several operational issues with the property. GROUNDFLOOR determined the best course of action to protect investors' interests in this case was to settle with the borrower rather than proceed with a drawn-out and costly foreclosure process.
As this was a split loan, investors in first lien positions received full principal recovery plus an interest rate of 5.48%, while second lien holders received full principal recovery. For more information on split loans and how we treat repayments, please refer to our blog post.
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:
- 10829 Estacado Dr
- 1878 Williams Ave
- 2623 & 2621 Watauga Rd
- 2731 Aspen Lake Rd
- 209 Birch St
- 310 Griggs Ave
We proceeded with foreclosure actions on the following 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.