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Asset Management Monthly Update, April 2021

After the COVID-19 pandemic’s onset in Q2 2020 triggered upheaval and uncertainty in financial and real estate markets, we wanted to provide GROUNDFLOOR investors with information about our asset management team’s activities. 

On the heels of our extensive stress test analysis, which looked at the potential effects a coronavirus-related recession could have on our investors’ portfolios, starting in May 2020 our team began publishing weekly updates on loan repayments and asset management activities to provide a transparent look at how our loans were actually performing in real time. 

As 2021 continues, we are pleased to continue providing transparent updates of our asset management team’s activities on a monthly basis. This latest installment looks at activity from April 2021. 

You may view activity from previous periods by clicking the links below.

March 2021
February 2021

January 2021
December 2020
December 13-19, 2020
December 6-12, 2020
November 29 - December 5, 2020
November 22-28, 2020
November 15-21, 2020
November 8-14, 2020
November 1-7, 2020
October 25-31, 2020
October 18-24, 2020

October 11-17, 2020
October 4-10, 2020
September 27 - October 3, 2020
September 20-26, 2020
September 13-19, 2020
September 6-12, 2020

August 30 - September 5, 2020
August 23-29, 2020
August 16-22, 2020
August 9-15, 2020
August 2-8, 2020
July 26 - August 1, 2020
July 19-25, 2020
July 12-18, 2020
July 5-11, 2020
June 28 - July 4, 2020
June 21-27, 2020
June 14-20, 2020
June 7-13, 2020
May 31-June 6, 2020
May 24-30, 2020
May 17-23, 2020
May 10-16, 2020 

Principal and Interest Repaid Over The Past Months

First, let’s take a look at the total principal and interest repayments disbursed to investors over the past four months:

Total Principal and Interest Repaid Chart, April 2021

Total Principal and Interest Repaid Table, April 2021

Aggregated Performance Metrics

Next, let’s take a deeper dive into repayment activity over the past months to get a better picture of how our recently repaid loans have been performing. We examine the metrics of loans repaid within the last month, loans repaid since the start of Q2 2020, and loans repaid year-to-date in 2021. 

Aggregated Performance Metrics Table, April 2021
It’s important to underscore that this table showcases the performance of loans that were repaid during the delineated periods, not the performance of loans originated during these timeframes.

Last Month’s Repayments - April 2021

This table presents loans that were repaid within the previous month, with details on the status, actual vs. expected term, actual vs. expected rate, and the exit valuation (sales price or appraised value at time of refinancing):

Repayments, April 2021_1Repayments, April 2021_2*NOTE: Actual rate is not inclusive of any promotions. Individual repayments are dependent on how long your principal is active in a given loan.
**NOTE: The borrower did not disclose the source of repayment proceeds.

Key To Loan Status Column:
Current - loan remained current throughout the term and repaid with full principal (plus interest)
Default - loan was resolved while in default
Workout - a workout plan was put into effect and the loan was resolved under the terms of the workout agreement
REO - GROUNDFLOOR assumed title to the property (either through foreclosure or deed in lieu) and sold the property.

Links to the loan detail pages for the above loans:

2614 West 97th St
8330 Rocky Creek Dr
3865 Redan Rd
2244 2nd Ave
15313 Harvest Blvd
771 Casplan St SW
1145 Portland Ave SE
9709 Bear Lakes Rd
518 Harper Ave
235 Holly Rd NW
8536 3rd Ave S
693 Waterford Rd NW
503 Forest Ridge Rd
8306 Baja Blvd
5107 Divot Ct
6192 Ridge Rd
2884 1st Ave SW
5346 West Quincy St
316 McFadyen Dr
4836 Central Church Rd
19 Wareham St
35 Monmouth Ave
310 Griggs Ave
5776 Devonshire Rd
802 Mercury Dr NW
13935 Warwick St
2123 Chestnut Ave
1878 Williams Ave
4721 3rd Ave S
3312 Versailles Ave
1917 Cherokee Dr
2816 Monica Ct SW
755 Canton St
2243 Aztec Dr W
1674 Richland Rd (LRO #1 and LRO #2)
2799 Ranger Dr
7520 John F Kennedy Dr E
1070 Sims St SW
1312 Nash Rd NW
5536 Outer Dr W
2008 Greenbriar Blvd
1000 Tumblin Kling Rd (LRO #1 and LRO #2)
1375 Tuscola St


Special Situations Repaid Last Month

Next, we provide a monthly overview of special situation loans we resolved in the prior month. 

Last month, a total of 43 loans were repaid. 21 of them were current, repaying on time and in full. 22 were special situation loans, the details of which are below.

771 Casplan St SW - Repaid Via REO

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in July 2019 with a maturity date in July 2020. In February 2020, the borrower advised that the renovations were nearing completion and that a tenant had been secured and was moving in. The maturity date arrived with no repayment from the borrower, so GROUNDFLOOR sent a Notice of Default in August 2020. The default period expired, so GROUNDFLOOR then engaged counsel to begin foreclosure proceedings. At the foreclosure auction in November 2020, GROUNDFLOOR was the successful bidder and took back control of the property. GROUNDFLOOR had initially found a wholesaler that was interested in the property, but then our Asset Management team approached the tenant to discuss the possibility of her purchasing the property at the same price. She was interested, so GROUNDFLOOR worked to get her set up to purchase the home. After a slight delay in closing due to government regulations, the tenant closed on the property and the loan was repaid in full in April 2021.

9709 Bear Lakes Rd - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in May 2019 with a maturity date in May 2020. The maturity date arrived with no repayment from the borrower, so GROUNDFLOOR sent a Notice of Default in May 2020. The borrower then advised that they were in the process of refinancing the GROUNDFLOOR loan. However, the refinance did not go through, so GROUNDFLOOR began foreclosure proceedings in September 2020. Foreclosure proceedings continued through the end of 2020 into 2021. In March 2021, the property went under contract, and the loan was repaid in full in April 2021.  

518 Harper Ave - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in June 2019 with a maturity date in June 2020. The borrower experienced multiple delays due to COVID-19, and in August 2020 GROUNDFLOOR provided loan leniency in the form of a 120-day extension, with a new maturity date in November 2020. However, the loan was not repaid by that maturity date, so GROUNDFLOOR commenced foreclosure proceedings. In February 2021, GROUNDFLOOR accepted a purchase offer, and the loan was repaid in full in April 2021. 

8536 3rd Ave S - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in September 2019 with a maturity date in October 2020. Renovations were completed in March 2020 and the property was actively listed on the market. The property remained active on the market for several months with no offers. The maturity date arrived with no repayment, so GROUNDFLOOR issued a Notice of Default to the borrower. The borrower subsequently advised that they were in the process of refinancing the GROUNDFLOOR loan, so GROUNDFLOOR granted a forbearance with a new maturity date in December 2020. The refinance process was still ongoing in December 2020, so GROUNDFLOOR granted an additional forbearance with a new maturity date in March 2021 to allow the refinance process to be completed. The refinance was successful, and the loan was repaid in full in April 2021. 

693 Waterford Rd NW - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in July 2019 with a maturity date in July 2020. The borrower advised that they were in the process of refinancing the loan as the maturity date approached, so GROUNDFLOOR provided loan leniency in the form of a 90-day extension, giving a new maturity date in October 2020. The closing date was pushed back several times. The refinance finally completed and the loan was repaid in full in April 2021. 

6192 Ridge Rd - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in May 2019 with a maturity date in May 2020. Due to COVID-19, GROUNDFLOOR provided loan leniency in the form of a 90-day extension, with a new maturity date in August 2020. The borrower advised that the property was under contract with an expected closing date in August 2020; however, due to an appraisal issue, the closing date was pushed back until October 2020. The contract did not go through, and GROUNDFLOOR entered into workout discussions as an alternative to foreclosure in November 2020. The property went under contract again, but the sale was again unsuccessful. The borrower then advised they were pursuing refinancing to repay the loan. The refinance was successful and the loan was repaid in full in April 2021. 

5346 West Quincy St - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in September 2019 with a maturity date of June 2020. Due to COVID-19, GROUNDFLOOR provided loan leniency in the form of a 90-day extension, with a new maturity date in September 2020. The property was actively listed on the market in July 2020, and the borrower advised that there were several interested buyers. Negotiations continued through September 2020, and the property went under contract in October 2020. However, the sale was unsuccessful. The property was relisted on the market and negotiations with a new buyer began in December 2020. The property went under contract in January 2021, and the loan was repaid in full in April 2021.

19 Wareham St - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in April 2019 with a maturity date in April 2020. Due to COVID-19, GROUNDFLOOR provided loan leniency in the form of a 90-day extension, with a new maturity date in July 2020. The maturity date arrived with no repayment, so GROUNDFLOOR issued a Notice of Default to the borrower. The state of Massachusetts had a foreclosure moratorium in place until October 2020, so GROUNDFLOOR was unable to begin foreclosure proceedings. The borrower subsequently advised that the property was under contract. However, the property still had not sold after several months, so GROUNDFLOOR engaged legal counsel to begin foreclosure proceedings in February 2021. As foreclosure progressed, the borrower advised that the property was again under contract in March 2021, and the loan was repaid in full in April 2021.

35 Monmouth Ave - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in February 2020 with a maturity date in February 2021. As the maturity date approached, the borrower advised that they were in the process of refinancing the loan. The refinance did not complete by the maturity date, so GROUNDFLOOR sent a Notice of Default to the borrower. Refinancing continued in March 2021, and the loan was repaid in full in April 2021.

310 Griggs Ave - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in October 2019 with a maturity date in October 2020. The project was progressing as planned, and as the maturity date approached, the borrower advised that they were in the process of refinancing the loan. GROUNDFLOOR reached a workout agreement with the borrower to allow the refinance process to complete, giving a new maturity date in January 2021. The refinance continued, with closing dates getting pushed back several times. The refinance was eventually successful, and the loan was repaid in full in April 2021.

5776 Devonshire Rd - Repaid Via Workout Agreement 

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in January 2020 with a maturity date of January 2021. The maturity date arrived without repayment, so GROUNDFLOOR sent a Notice of Default to the borrower. Subsequently, GROUNDFLOOR reached a workout agreement with the borrower, giving a new maturity date in April 2021. The loan was repaid in full in April 2021.

802 Mercury Dr NW - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in October 2019 with a maturity date in October 2020. As the maturity date approached, GROUNDFLOOR reached a workout agreement with the borrower, giving a new maturity date in January 2021. The borrower elected to pursue a refinance, which was still in process when the maturity date arrived. The refinance was successful and the loan was eventually repaid in full in April 2021. 

13935 Warwick St - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in June 2019 with a maturity date in June 2020. Due to COVID-19, GROUNDFLOOR provided loan leniency in the form of a 90-day extension, giving a new maturity date in September 2020. The borrower advised that they were pursuing a refinance to pay off the loan. However, the maturity date arrived without repayment, so GROUNDFLOOR issued a Notice of Default in November 2020. The borrower advised that they were continuing to pursue a refinance. Refinancing continued through March 2021, and the loan was repaid in full in April 2021. 

2123 Chestnut Ave - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in February 2019 with a maturity date in February 2020. As the maturity date approached, the borrower indicated that permitting issues had delayed the project. GROUNDFLOOR then reached a workout agreement with the borrower, giving a new maturity date in September 2020. In August 2020, the borrower advised that some of the workers had contracted COVID-19, which delayed the project’s completion. GROUNDFLOOR provided loan leniency in the form of a 90-day extension, giving a new maturity date in December 2020. In October 2020, GROUNDFLOOR provided a second loan extension with a new maturity date in March 2021, and increased the interest rate charged to the borrower from November 2020 to March 2021. The loan was repaid in full in April 2021. 

1878 Williams Ave - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in November 2019 with a maturity date in November 2020. The project experienced delays due to COVID-19. As the maturity date approached, GROUNDFLOOR began discussing workout options as an alternative to foreclosure. A workout agreement was reached, giving a new maturity date in January 2021. Subsequently, the borrower advised that the property was under contract, with an expected closing date in February 2021. Closing was delayed by several months. The loan was finally repaid in full in April 2021. 

4721 3rd Ave S - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in June 2019 with a maturity date in June 2020. In February 2020, the borrower advised that the property was actively listed on the market. In March 2020, the borrower advised that they were starting the refinance process as a backup. The refinance process continued as the maturity date approached. Due to COVID-19, GROUNDFLOOR provided loan leniency in the form of a 90-day extension, giving a new maturity date in September 2020. The borrower continued trying to refinance the loan, and in November 2020 GROUNDFLOOR again undertook workout discussions to avoid foreclosure. A workout agreement was reached, giving a new maturity date in January 2021. The borrower continued to pursue refinancing options, and in April 2021 the loan was repaid in full.

755 Canton St - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in February 2020 with a maturity date in August 2020. The project experienced multiple delays due to COVID-19. Renovations continued through the second half of 2020, and the property was listed on the market in January 2021. The borrower advised that there had been interest in the property but no offers. In March 2021, GROUNDFLOOR sent a Notice of Default. The loan was repaid in full in April 2021. 

1674 Richland Rd SW - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in February 2020 with a maturity date in February 2021. The borrower experienced significant delays due to COVID-19 - the borrower was forced to halt work and await approval to resume the project, which took several months to obtain. In February 2021, GROUNDFLOOR sent a Notice of Default to the borrower. In March 2021, GROUNDFLOOR undertook workout discussions to avoid foreclosure. In April 2021, GROUNDFLOOR connected the borrower with a refinance lender, and the loan was repaid in full that same month. 

1070 Sims St SW - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in December 2019 with a maturity date of December 2020. The project experienced some delays obtaining permits due to city shutdowns due to COVID-19. In December 2020, the borrower advised that the project was 75% complete. GROUNDFLOOR reached a workout agreement with the borrower, giving a new maturity date in March 2021. GROUNDFLOOR received a payoff request good through April 30, 2021, and the loan was repaid in full in April 2021. 

1312 Nash Rd NW - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in December 2019 with a maturity date in December 2020. The project was still in progress as the maturity date approached, so GROUNDFLOOR undertook workout discussions with the borrower to avoid foreclosure. A workout agreement was reached, giving a new maturity date in March 2021. The project was completed in March 2021 and the loan was repaid in full in April 2021. 

5536 Outer Dr W - Repaid Via Workout Agreement 

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in January 2020 with a maturity date in January 2021. In January 2021, the borrower advised that the property was actively listed on the market. GROUNDFLOOR then sent a Notice of Default to the borrower. GROUNDFLOOR subsequently reached a workout agreement with the borrower, giving a new maturity date in March 2021. The borrower then advised that the property was under contract with an expected closing date in May 2021. The loan was repaid in full in April 2021. 

1000 Tumblin Kling Rd - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by the maturity date. The project was begun in October 2019 with a maturity date in October 2020. The borrower experienced some delays due to COVID-19. In July 2020, the borrower advised they were in the process of refinancing the GROUNDFLOOR loan. The refinance process continued through the next several months, with an expected close date in November 2020. However, the refinance did not go through, so GROUNDFLOOR agreed to a workout settlement with the borrower, giving a new maturity date in March 2021. The borrower advised that they were pursuing another refinance, and the loan was repaid in full in April 2021.

Special Situations Activity Last Month

Finally, our asset management team moved forward with the following special situation loans last month (see link to each individual loan page for detailed history of updates). As a reminder, all performing loans are monitored for repayment status starting at 120 days prior to maturity. 

Loan Activity:

We entered into workout agreements on the following loans last month:

We proceeded with foreclosure actions on the following properties last month:

Real Estate Owned (REO) Activity:

We did not take possession of any new properties last month.

We did not go under contract to sell any properties last month.

We did not sell any real estate owned properties last month.

Joey Wilson

Senior Director, Customer Success

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