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 July. 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.
![Asset-Management-Summary-July-[Recovered]](https://blog.groundfloor.com/hs-fs/hubfs/Asset-Management-Summary-July-%5BRecovered%5D.jpg?width=663&height=530&name=Asset-Management-Summary-July-%5BRecovered%5D.jpg)
Loan Repayments
Groundfloor recorded 92 loan repayments in July. A total of 961 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 July saw a total of $22,626,486. Interest volume for July returned $2,589,550.
Rate of Return
During the month of July, the rate of return was 11.47%. 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 July, Groundfloor encountered 3 losses, resulting in a loss rate of 1.00%. The last twelve month average loss ratio stands at 1.18%. Groundfloor maintains an impressively low overall historical loss rate of 0.63%.
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:
2571 Sharondale
- The loan matured in November of 2023.
- The borrower faced several construction delays.
- A workout was provided to the borrower so they could continue construction after maturity.
- Foreclosure was filed in June 2024 after numerous delays in repayment.
- With continued communication between borrower and Groundfloor Asset Management, the loan was repaid in July 2024 with full principal plus default interest for investors
9 West Walnut
- The loan matured in March of 2020.
- There were significant construction delays due to Covid.
- A statewide foreclosure moratorium prevented Groundfloor from taking action until 2021
- Foreclosure was filed in 2021 with the property reverting back in Groundfloor in January 2023.
- Eviction began at that time as the property was occupied by squatters.
- Eviction was completed in April 2024 and the property was cleaned and listed for sale.
- A successful REO transaction and sale resulted in principal plus interest returned for investors
July 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.
9007 Chesterfield Dr NW, Calabash NC
(New Construction)
Total Loan Amount: $472,520
Term: 18 months
Repaid Date: July 11, 2024
Property sold at: $652,400
635 Glenforest Rd. Sandy Springs GA
(Fix and Flip)
Before and After
Total Loan Amount: $549,970
Term: 12 months
Repaid Date: July 12, 2024
Property Sold For: $799,000
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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- Read our 2023 Year in Review post
- Check out our recent Monthly Market Trends Blog
- Read our Asset Management Supplement