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 June. 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 80 loan repayments in June. A total of 941 loans have been paid over the last 12 months.
Not withstanding 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 June saw a total of $18,392,471. Interest volume for June returned $2,881,901.
Rate of Return
During the month of June, the rate of return was 10.31%. Groundfloor continues to uphold an impressive overall rate-of-return of 9.84%, signifying sustained strength and performance over an extended period.
Loss Ratio
In June, Groundfloor encountered 5 losses, resulting in a loss rate of 1.24%. The last twelve month average loss ratio stands at 1.11%. Groundfloor maintains an impressively low overall historical loss rate of 0.62%.
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:
17527 Stoepel
- The loan matured in June of 2020.
- There were significant delays due to COVID.
- The property entered workout at maturity and the borrower continued to make improvements to the property.
- Borrower was unable to complete the project and foreclosure was filed in July 2022.
- After negotiations with borrowers counsel, a settled amount was agreed to and a near full recovery for investors was realized
484 The North Chase
- This loan matured in June 2023.
- The borrower struggled to both refinance and sell the property. The borrower remained in constant communication with Groundfloor Asset Management.
- Borrower was able to successfully repay the loan in full with additional penalty interest adjusting the contract rate from 10% to a realized rate of over 12% for investors over the life of the LRO
June 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.
6817 Misty Creek Ln, Temple TX
(New Construction)
Total Loan Amount: $583,250
Term: 18 months
Repaid Date: June 28, 2024
Property refinanced and listed for sale at: $945,000
2184 Shelby Dr. Melbourne FL
(Fix and Flip)
Before and After
Total Loan Amount: $174,698
Term: 12 months
Repaid Date: June 18, 2024
Property Sold For: $250,000
Review your Groundfloor Investor Account
To review your current portfolio's performance, and discover and invest in new LROs, 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