Asset Management Weekly Update, November 29 - December 5, 2020
BYJoey Wilson 07, DEC 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 29 - December 5, 2020. You may view activity from the previous weeks by clicking the links below.
November 22-28, 2020
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 29 - December 5
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:
4130 Livsey Rd
1688 Donna Lynn Dr (Loan #1 and Loan #2)
6176 Wabash St
68 Spivey Chase Ln (Loan #1 and Loan #2)
3180 Humphries Dr SE
866 Victoria Pl SW
524 156th Pl
1065 Gilbert St SE (Loan #1, Loan #2, Loan #3, Loan #4)
14305 University Ave
506 West Broad St
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 10 loans repaid. 4 of these loans proceeded according to schedule, repaying on time and in full with the contract interest rate. 6 loans last week were special situation loans, the details of which are below.
1688 Donna Lynn Dr - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay the loan by maturity. The property was completed and listed on the market for sale. An offer was received and the property went under contract but the buyer backed out and the property was still listed on the market. The loan was repaid in full.
6176 Wabash St - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was in the process of refinancing his current loan. Due to COVID-19, the refinancing process took longer than expected. GROUNDFLOOR provided a loan leniency in the form of a 90-day extension so the borrower had sufficient time to refinance the loan and pay off GROUNDFLOOR.
866 Victoria Pl SW - Repaid Via Workout Agreement
The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower had advised the property was rented and they were planning to refinance the loan. GROUNDFLOOR agreed to an extension to provide time to the borrower to refinance the loan. The borrower advised they had decided to sell the property and that it was currently in the process of being listed on the market. The property was sold in October 2020 and the loan was repaid in full.
524 156th Pl - Repaid Out of Default
The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower communicated that the project experienced significant delays due to COVID-19, but it was nearing completion and scheduled to be listed. The property was sold in November 2020 and the loan was repaid in full.
1065 Gilbert St SE - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan by maturity. There was a construction delay due to COVID-19. The borrower advised the property was under contract, with an expected closing date of December 3, 2020. The property was sold and the loan repaid in full.
14305 University Ave - Repaid Out Of Default
The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower had advised they planned to list the property by May 1, 2020. The property went under contract with an expected closing date of September 12, 2020. The borrower then communicated that the closing was delayed, and the buyer was waiting to close with their lender. The property was sold in November 2020 and the loan was repaid in full.
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:
- 7152 Karenita Dr
- 6221 Lee Pl
- 1578 Jonesboro Rd SE
- 1553 West Boston Blvd
- 2096 Kipling Cir SE
- 1709 Pratt Ave NE
- 8536 3rd Ave S
- 693 Waterford Rd NW
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.