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 October. 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 92 loan repayments in October. 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 October saw a total of $24,048,919. Interest volume for October returned $2,304,015.
Rate of Return
During the month of October, the rate of return was 8.65%. Groundfloor continues to uphold an impressive overall rate-of-return of 9.83%, signifying sustained strength and performance over an extended period.
Loss Ratio
In October, Groundfloor encountered 12 losses, resulting in a loss rate of 3.56%. The last twelve month average loss ratio stands at 1.76%. Groundfloor maintains an impressively low overall historical loss rate of 0.81%.
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:
4795 Woodvale Drive NW
- The loan matured in May of 2023.
- Borrower continued to work on repayment of the loan through sale and through refinance
- Foreclosure was filed in January 2024.
- Offers to settle were received from Groundfloor that would have resulted at a loss for investors. Those offers were rejected.
- The borrower filed for bankruptcy in April of 2024
- Borrower continued to work on refinance and sale options
- With continued communication between borrower and Groundfloor Asset Management, the loan was repaid in October 2024 with full principal plus interest for investors
6 Rosedale Ter
- The loan matured in May of 2023
- The borrower continued to delay completing the property and added additional items to the property.
- Borrower continued efforts to identify a refinance lender on multiple occasions that led to continued delays in repaying the loan
- Foreclosure was filed July 2024
- Borrower was able to complete refinance and repay Groundfloor and investors with full principal including contract and default interest
October 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.
4008 Faith Lane, Saint Charles IL
(New Construction)
Total Loan Amount: $437,780
Term: 18 months
Repaid Date: October 24, 2024
Property sold at: $575,000
1975 North Ave NW, Atlanta GA
(Fix and Flip)
Before and After
Total Loan Amount: $258,357
Term: 12 months
Repaid Date: October 31st, 2024
Property Sold For: $349,900
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