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Asset Management Monthly Update, December 2020

As the financial and real estate markets continue to experience upheaval due to the COVID-19 pandemic, we understand that some GROUNDFLOOR investors may become more concerned than usual with the status of their investments. 

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 we move into a new year, we are pleased to continue providing transparent updates of our asset management team’s activities. This latest installment looks at activity from December 2020. Going forward, we will publish these updates at the end of each month.  

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

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, Dec 2020

Total Principal and Interest Repaid Table, Dec 2020

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 Q4 2020, and loans repaid in 2020. 

Aggregated Performance Metrics, Dec 2020
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 - December 2020

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):

Loan Repayments, Dec 2020_1Loan Repayments, Dec 2020_2-1
*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:

866 Victoria Pl SW
14305 University Ave
524 156th Pl
3180 Humphries Dr SE
4130 Livsey Rd
506 West Broad St
1065 Gilbert St SE (Loan #1, Loan #2, Loan #3, Loan #4)
3811 Southwest 128th Ave
3203 Atlantic Ave, Unit 102 & 103
106 Adair Ave SE
9200 South Ellis Ave
147 Pacific St (Loan #1 and Loan #2)
415 West Liberty St
1262 Elizabeth Ave
771 Newell Ave
425 East 91st St
1221 Ethridge Mill Rd
3602 Carol Ann Ln
133 Warren St
7831 S Laflin St
253 West Lake Ave NW
1507 Frazier Rd
4352 North 43rd St
1791 Ledo Ave
4761 Pinefield Dr NW
102 Beasley Dr
4204 Basswood Cir
1299 West Fair St SW [1st]
1299 West Fair St SW [2nd]
1986 Joseph E. Boone Blvd NW
1150 Hampton Ave
1615 South Memorial Blvd [2nd]
651 Sea St
20132 Dolphin Ave
6460 33rd Ave N
1022 South Candler St
2503 Taylor St
1782 Southeast Elkhart Terr
224 Bass St SE
1712 West Lombard St
810 North Ocean Breeze St
1615 South Memorial Blvd [1st]
448 Hickory Ln
6486 Carriage Ln

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 44 loans repaid. 21 of these loans proceeded according to schedule, repaying on time and in full with the contract interest rate. 23 loans last week were special situation loans, the details of which are below.
 

866 Victoria Pl SW - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower had advised the property was rented and they were planning to refinance the loan. GROUNDFLOOR agreed to an extension to provide time to the borrower to refinance the loan. The borrower advised they had decided to sell the property and that it was currently in the process of being listed on the market. The property was sold in October 2020 and the loan was repaid in full.

14305 University Ave - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower had advised they planned to list the property by May 1, 2020. The property went under contract with an expected closing date of September 12, 2020. The borrower then communicated that the closing was delayed, and the buyer was waiting to close with their lender. The property was sold in November 2020 and the loan was repaid in full.

524 156th Pl - Repaid Out of Default

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower communicated that the project experienced significant delays due to COVID-19, but it was nearing completion and scheduled to be listed. The property was sold in November 2020 and the loan was repaid in full.

1065 Gilbert St SE - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by maturity. There was a construction delay due to COVID-19. The borrower advised the property was under contract, with an expected closing date of December 3, 2020. The property was sold and the loan repaid in full.

3811 Southwest 128th Ave - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. Due to the coronavirus, GROUNDFLOOR provided loan leniency in the form of a 90-day extension so the borrower had adequate time to sell the property. After the property was some months on the market, the borrower decided to instead refinance the GROUNDFLOOR loan, and the loan was repaid.


3203 Atlantic Ave, Unit 102 & 103 - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was in the processor refinancing the GROUNDFLOOR loan. Due to the coronavirus, GROUNDFLOOR provided loan leniency in the form of a 90-day extension, and the loan was repaid under the terms of that workout agreement.

106 Adair Ave SE - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. GROUNDFLOOR provided loan leniency in the form of a 90-day extension so the property could be sold. The property went under contract, with an expected closing date of October 30, 2020. The loan was eventually repaid under the terms of the workout agreement. 

9200 South Ellis Ave - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower advised that renovations are complete and the property was rented out to tenants at 100% occupancy. GROUNDFLOOR provided loan leniency in the form of a 90-day extension, and the loan was repaid under the terms of this workout agreement.

147 Pacific St - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by maturity. The property was under contract, with an expected closing date of September 7, 2020, but the closing got pushed back to September 30. The borrower was able to sell the property and pay back the GROUNDFLOOR loan.

133 Warren St - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by maturity. The project was completed and listed on the market before the maturity date. The borrower was not getting enough response to the showings due to COVID-19. The property was under contract and scheduled to close on October 30, 2020; due to buyer delays, the closing was pushed back until December 14, 2020.

7831 S Laflin St - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was facing delays completing the property due to COVID-19. GROUNDFLOOR provided loan leniency in the form of a 90-day extension, ending on October 14, 2020, so the borrower had adequate time to complete renovations. The property was completed and listed on the market. GROUNDFLOOR provided a second loan leniency in the form of a 60-day extension, ending on December 14, 2020 in order for the borrower to sell the property. The borrower was able to pay off GROUNDFLOOR on December 15, 2020.

1299 West Fair St SW ([1st] and [2nd]) - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was facing delays completing the property due to COVID-19. GROUNDFLOOR provided loan leniency in the form of a 90-day extension, ending on April 22, 2020 so the borrower had adequate time to complete renovations. GROUNDFLOOR provided a second loan leniency in the form of an extension, ending on August 20, 2020 in order for the borrower to sell the property. The property was completed and listed on the market for sale. The borrower was able to pay off GROUNDFLOOR on December 22, 2020. 

1986 Joseph E. Boone Blvd NW - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was facing delays completing the property due to COVID-19. GROUNDFLOOR provided loan leniency in the form of a 90-day extension, ending on August 20, 2020 so the borrower had adequate time to complete renovations. GROUNDFLOOR provided a second loan leniency in the form of a 90-day extension, ending on November 20, 2020 in order for the borrower to sell the property. The property was completed and listed on the market for sale. The borrower was able to pay off GROUNDFLOOR on December 21, 2020. 

1150 Hampton Ave - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was facing delays completing the property due to COVID-19. GROUNDFLOOR provided loan leniency in the form of 90-day extension so the borrower had adequate time to complete the property. The property was completed and listed on the market for sale. The borrower was able to pay off GROUNDFLOOR on December 22, 2020. 

651 Sea St - Repaid Out Of Default

This loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was facing delays completing the property due to COVID-19. GROUNDFLOOR provided a loan leniency in the form of a 60-day extension so the borrower had adequate time to complete the property. GROUNDFLOOR started the foreclosure process when the 60-day extension expired on December 9th, 2020 to expedite the loan’s repayment.  The borrower was able to pay off GROUNDFLOOR on December 22, 2020.

20132 Dolphin Ave - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was in the process of refinancing his current loan. Due to COVID-19, the refinancing process took longer than expected. GROUNDFLOOR provided a loan leniency in the form of a 90-day extension, ending on September 15, 2020 so the borrower had sufficient time to refinance the loan and pay off GROUNDFLOOR. The borrower was unable to secure a refinance, so GROUNDFLOOR undertook workout discussions with the borrower to avoid foreclosure. The borrower was able to refinance and pay off GROUNDFLOOR on December 23, 2020.

6460 33rd Ave N - Repaid Out Of Default

This loan was in monthly payment default because the borrower was not current on monthly payments. The borrower completed renovations and was able to pay off GROUNDFLOOR on December 23, 2020. 

1022 South Candler St - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower initially needed more time to complete the project and then was planning to sell the property. Due to COVID-19, the timeline to complete the project took longer than expected. GROUNDFLOOR provided a loan leniency in the form of a 300-day extension, ending on December 27, 2020, so the borrower had sufficient time to sell the property and pay off GROUNDFLOOR. The borrower was able to list, market, and sell the property and pay off GROUNDFLOOR on December 31, 2020.

2503 Taylor St - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was in the process of refinancing his current loan. Due to COVID-19, the refinancing process took longer than expected. GROUNDFLOOR provided a loan leniency in the form of a 150-day extension, ending on December 27, 2020 so the borrower had sufficient time to refinance the loan and pay off GROUNDFLOOR. The borrower was able to refinance and pay off GROUNDFLOOR on December 28, 2020.


1782 Southeast Elkhart Terr - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower needed more time to sell the property. The borrower had to hire an attorney to resolve a city lien on the property. GROUNDFLOOR provided a loan leniency in the form of a 240-day extension, ending on March 28, 2021, so the borrower had sufficient time to resolve the lien with the city and then sell the property to pay off GROUNDFLOOR. The borrower was able to resolve the lien, list, market, and sell the property and pay off GROUNDFLOOR on December 29, 2020.

224 Bass St SE - Repaid Via Workout Agreement

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower needed more time to sell the property. GROUNDFLOOR provided a loan leniency in the form of a 90-day extension, ending on December 25, 2020, so the borrower had sufficient time to sell the property to pay off GROUNDFLOOR. The borrower was able to list, market, and sell the property and pay off GROUNDFLOOR on December 28, 2020.


1712 West Lombard St - Repaid Out Of Default

The loan was in maturity default because the borrower failed to repay the loan by maturity. The borrower was in the process of refinancing the current loan. GROUNDFLOOR had received a request for the payoff for October 30, 2020. The refinancing process took longer than expected. GROUNDFLOOR then received another payoff request for December 31st, 2020. The borrower was able to refinance and pay off the GROUNDFLOOR loan on December 29, 2020.

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 went under contract to sell the following properties last month:

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

Joey Wilson

Joey Wilson is the Head of Customer Success at GROUNDFLOOR.

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