Asset Management Weekly Update, December 6-12, 2020

BYJoey Wilson 14, 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, December 6-12, 2020. You may view activity from the previous weeks by clicking the links below. 

November 29 - December 5, 2020
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 - December 6-12

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:

771 Newell Ave
9200 South Ellis Ave
1221 Ethridge Mill Rd
3602 Carol Ann Ln
415 West Liberty St
425 East 91st St
106 Adair Ave SE
147 Pacific St (Loan #1 and Loan #2)
3811 Southwest 128th Ave
3203 Atlantic Ave, Unit 102 & 103
1262 Elizabeth 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 11 loans repaid. 6 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. 

9200 South Ellis Ave - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower advised that renovations are complete and the property was rented out to tenants at 100% occupancy. GROUNDFLOOR provided loan leniency in the form of a 90-day extension, and the loan was repaid under the terms of this workout agreement.

106 Adair Ave SE - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. GROUNDFLOOR provided loan leniency in the form of a 90-day extension so the property could be sold. The property went under contract, with an expected closing date of October 30, 2020. The loan was eventually repaid under the terms of the workout agreement. 

147 Pacific St - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by maturity. The property was under contract, with an expected closing date of September 7, 2020, but the closing got pushed back to September 30. The borrower was able to sell the property and pay back the GROUNDFLOOR loan.

3811 Southwest 128th Ave - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. Due to the coronavirus, GROUNDFLOOR provided loan leniency in the form of a 90-day extension so the borrower had adequate time to sell the property. After the property was some months on the market, the borrower decided to instead refinance the GROUNDFLOOR loan, and the loan was repaid.

3203 Atlantic Ave, Unit 102 & 103 - 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 processor refinancing the GROUNDFLOOR loan. Due to the coronavirus, GROUNDFLOOR provided loan leniency in the form of a 90-day extension, and the loan was repaid under the terms of that workout agreement.

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:

• 693 Waterford Rd NW
• 2227 Northwest 9th Ct
• 604 Soles St
• 7152 Karenita Dr
• 18075 Roselawn St
• 17527 Stoepel St
• 1795-1707 West Grand Blvd

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.