Our monthly Groundfloor Asset Management series remains committed to highlighting key performance metrics and other relevant data managed by our Asset Management team. In this month's blog, we continue to deliver the key metrics you expect from this series, as well as provide highlights from the month.

Within this segment, we present insights into the metrics relating to the loan portfolio performance for the month of August. Our assessment will encompass loan payoffs, repayment and interest volume, rate of return, and loss ratios. Additionally, we have included comprehensive views of our loan performance states and a detailed overview of the data from the last twelve months.

Loan Repayments

Groundfloor recorded 62 loan repayments in August. A total of 929 loans have been paid over the last 12 months.

Notwithstanding the continued economic challenges, ongoing asset management efforts have contributed to stability in loan repayment activity. Despite factors such as inflation, rising interest rates, and borrower struggles, the performance rates for loan repayments have remained consistent. 

Below is a monthly breakdown of the loans repaid and repayment volume over the last twelve months:

Repayment & Interest Volume

The repayment volume for the month of August saw a total of $16,628,087. Interest volume for August returned $1,645,091.

Rate of Return

During the month of August, the rate of return was 9.85%. Groundfloor continues to uphold an impressive overall rate-of-return of 9.89%, signifying sustained strength and performance over an extended period.

Loss Ratio

In August, Groundfloor encountered 5 losses, resulting in a loss rate of 2.68%. The last twelve month average loss ratio stands at 1.27%. Groundfloor maintains an impressively low overall historical loss rate of 0.67%.

Further Detail

Groundfloor identifies three distinct loan states within our portfolio: Current, Extended, and Default. The charts below offer a month-over-month depiction of repayments from all loan portfolio states for the last twelve months. Losses are reflected within the default loan state.

Lastly, we present a full view into our overall loan portfolio over the last twelve months, broken out into expanded detail for your assessment.

Highlights from the Month

Here are some of the notable loan achievements from last month: 

2225 Sargent Place Southeast

• The loan matured in July of 2023.
• The borrower faced several construction delays.
• A workout was provided to the borrower so they could continue construction after maturity.
• Borrower continued to work on refinance options and was able to secure a closing prior to foreclosure
• With continued communication between borrower and Groundfloor Asset Management, the loan was repaid in August 2024 with full principal plus default interest for investors

9 West Walnut

• The loan matured in September of 2023
• The borrower ran into liquidity challenges and was unable to complete renovation
• Borrower continued efforts to identify a refinance lender on multiple occasions without success
• Additionally, the borrower continued to search for a buyer
• Foreclosure was filed April 2024
• Foreclosure sale date was set for August 6th, 2024
• Borrower was able to complete refinance and repay Groundfloor and investors with full principal and reduced interest prior to the foreclosure sale date
  
  

August Project Spotlights

We're highlighting some of the properties that were repaid last month and showcasing their before-and-after outcomes in the section below.

219 Glenrae Dr. Catonsville MD

(Fix and Flip)

Before and After

Total Loan Amount: $341,694

Term: 12 months

Repaid Date: August 7, 2024

Property sold at: $525,000

300 Laredo Dr. Hoover AL

(Fix and Flip)

Before and After

Total Loan Amount: $337,213

Term: 12 months

Repaid Date: August 12, 2024

Property Sold For: $525,000

Review your Groundfloor Investor Account

To review your current portfolio's performance, and discover and invest in new LRO's, please visit your Investor Account here and your Auto Investor Account through the Groundfloor app.

If you don’t have an Auto Investor Account, transfer funds today via the app for easier automated investing. 

Further Reading:

• • Read our 2023 Year in Review post 
  • Check out our recent Monthly Market Trends Blog
  • Read our Asset Management Supplement