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 September. 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 81 loan repayments in September. A total of 948 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 September saw a total of $22,150,264. Interest volume for September returned $2,275,400.
Rate of Return
During the month of September, the rate of return was 9.02%. Groundfloor continues to uphold an impressive overall rate-of-return of 9.87%, signifying sustained strength and performance over an extended period.
Loss Ratio
In September, Groundfloor encountered 9 losses, resulting in a loss rate of 3.88%. The last twelve month average loss ratio stands at 1.55%. Groundfloor maintains an impressively low overall historical loss rate of 0.73%.
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:
4404 161st Ter N
- The loan matured in July of 2022.
- Foreclosure was filed in September 2022.
- Borrower continued to work on refinance and sale options during the foreclosure process
- With continued communication between borrower and Groundfloor Asset Management, the loan was repaid in September 2024 with full principal plus default interest for investors
450 W Beidler Rd
- The loan matured in May of 2022
- The borrower ran into zoning and permitting challenges and was unable to start construction
- Borrower continued efforts to identify a refinance lender on multiple occasions without success
- Additionally, the borrower continued to search for a buyer while negotiating with municipal parties
- Foreclosure was filed December 2023
- Borrower was able to complete refinance and repay Groundfloor and investors with full principal and default interest
September 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.
600 E Belmont St Pensacola FL
(Fix and Flip)
Before and After
Total Loan Amount: $461,445
Term: 6 months
Repaid Date: September 10, 2024
Property sold at: $685,000
161 Midsummer Dr. Frederick MD
(Fix and Flip)
Before and After
Total Loan Amount: $489,980
Term: 6 months
Repaid Date: September 4th, 2024
Property Sold For: $675,000
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