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.
By The NumbersWithin this segment, we present insights into the metrics relating to the loan portfolio performance for the month of December. 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.
Groundfloor recorded 57 loan repayments in December. A total of 936 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 December saw a total of $16,473,024. Interest volume for December returned $1,580,673.
Rate of Return
During the month of December, the rate of return was 10.60%. Groundfloor continues to uphold an impressive overall rate-of-return of 9.88%, signifying sustained strength and performance over an extended period.
Loss Ratio
In December, Groundfloor encountered 3 losses, resulting in a loss rate of 1.36%. The last twelve month average loss ratio stands at 1.73%. Groundfloor maintains an impressively low overall historical loss rate of 0.84%.
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:
1438 Yale
- The loan matured in August of 2021.
- The borrower claimed the property was under contract on several occasions however never produced a purchase and sale agreement after multiple requests
- Borrower pivoted to refinance however permits were needed in order for the new lender to approve the loan. These permits were never approved by the local jurisdiction
- File was referred to foreclosure in July 2023
- Borrower continued to work on refinance throughout the foreclosure process
- The foreclosure was completed in October 2024 and the property listed for sale in November after initial preservation services completed.
- Property was sold for highest and best in December 2024 avoiding a loss for investors.
366 Three Bridges Rd
- The loan matured in March of 2023
- The property was listed for sale by the borrower after maturity in April 2024
- In July the borrower decided to attempt a refinance to repay the Groundfloor loan however this was unsuccessful
- In November 2024 Groundfloor filed a foreclosure action
- The borrower than relisted the property and more aggressively marketed to sell
- The property was sold and the loan repaid in December 2024 with principal plus interest to investors
December 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.
5140 Blackheath Way, Fairburn GA
(New Construction)
Total Loan Amount: $321,801
Term: 12 months
Repaid Date: December 24, 2024
Property sold at: $430,000
115 N 13th St, Colorado Springs CO
(Fix and Flip)
Before and After
Total Loan Amount: $276,451
Term: 12 months
Repaid Date: December 11th, 2024
Property Sold For: $400,000
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
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- Take a look at our Borrower Spotlight
- Check out our recent Monthly Market Trends Blog
- Read our Asset Management Supplement