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 Numbers
Within 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 beginning of the year for enhanced clarity.
Loan Repayments
Groundfloor recorded 77 loan repayments in December. A total of 938 loans have been paid in 2023.
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. This trend is encouraging as we near the close of the year.
Below is a monthly breakdown of the loans repaid and repayment volume in 2023:
Repayment & Interest Volume
The repayment volume for the month of December saw a total of $18,829,820. Interest volume for December returned $1,617,571.
Rate of Return
During the month of December, the rate of return was 9.36%. Groundfloor continues to uphold an impressive overall rate-of-return of 9.81%, signifying sustained strength and performance over an extended period.
Loss Ratio
In December, Groundfloor encountered only 6 losses, resulting in a loss rate of 2.21%. The year-to-date average loss ratio stands at 1.04%. Groundfloor maintains an impressively low overall historical loss rate of 0.53%.
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 year-to-date. Losses are reflected within the default loan state.
Lastly, we present a full view into our overall loan portfolio, broken out into expanded detail for your assessment.
Highlights from the Month
Here are some of the notable loan achievements from last month:
401 Morningside
- The loan matured in August 2020.
- A bankruptcy was filed by the borrower in or around November 2020 and dismissed in July 2022
- Foreclosure began in August 2022.
- Property went under contract after it became REO and was able to close in December 2023 with principal and some interest recovery for investors.
355 Luella Ave
- This loan matured in March 2023.
- Borrower continued to attempt refinancing unsuccessfully for several months.
- The borrower repaid the loan in December in full plus default interest for 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.
1194 Villa Dr. NE, Atlanta, GA
(Refinance - Rehab)
Total Loan Amount: $1,262,530
Term: 12 months
Repaid Date: December 13, 2023
View Home's 3D Tour Here
6917 E. Monterey Way, Scottsdale, AZ
(Purchase & Renovation)
Property Purchased For: $500,000
Total Loan Amount: $549,520
Term: 12 months
Repaid Date: December 18, 2023
Property Sold For: $699,000
9030 SW 20th St., Miami FL
(Purchase & Renovation)
Property Purchased For: $365,750
Total Loan Amount: $459,620
Term: 12 months
Repaid Date: December 27, 2023
Property Sold For: $825,000
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 latest Diversification Analysis report
- Read our Asset Management Supplement
- Check out our recent Monthly Market Trends Blog
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