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Asset Management Monthly Update, June 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 June 2021. 

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

May 2021
April 2021
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, June 2021

Total Principal and Interest Repaid Chart, June 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 Chart, June 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 - June 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):

Loan Repayments, June 2021_1Loan Repayments, June 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:

4409 Habana Ave
11 Sawood Dr
104 Ulysses Ln
165 Blanco St
849 Crest Dr E
244 Rio Rd
3023 Bourbon St
1163 West 36th St
1078 Stamper Rd
1401 South Avers Ave
144 Twilight Ave
4710 Wellborn Dr
10462 Ivygate Ter
1401 West 22nd St
1112 Hibbard St
605 Edna Graves Way
99 Graymoor Ln
3736 Chapel Hill Rd
00 Wafford (LRO #1, LRO #2, LRO #3)
00 Lakeview Ave (LRO #1, LRO #2
4219 Fort St
313 Summit Ridge Dr
126 Ambrose Dr
643 Mountain Pl (LRO #1, LRO #2)
5721 Waters Edge Dr
315 Missouri Ave
1097 Astor Ave SW (LRO #1, LRO #2)
4507 West Congress Pkwy
886 Custer Ave SE
21 Damon St (LRO #1, LRO #2)
5240 Tower Dr
452 Rockwell St SW
10246 Elmhurst Dr


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 32 loans were repaid. 18 of them were current, repaying on time and in full. 14 were special situation loans, the details of which are below.

165 Blanco St - Repaid Out Of Default

The project was begun in November 2020 and the loan had an original maturity date in May 2021. The project was completed and the property was listed on the market in February 2021. The property remained on the market through May 2021, at which time the borrower advised that they were in the process of changing realtors. GROUNDFLOOR sent a Notice of Default to the borrower as the maturity date passed. Soon after, the loan was repaid in June 2021. 

1078 Stamper Rd - Repaid Out Of Default

The project was begun in November 2020 and the loan had an original maturity date in May 2021. Renovations proceeded as scheduled, but as the maturity date approached, the borrower had not paid off the loan. GROUNDFLOOR sent a Notice of Default to the borrower in May 2021. In June 2021, the loan was repaid.

1401 South Avers Ave - Repaid Out Of Default

The project was begun in October 2019 and the loan had an original maturity date in October 2020. In August 2020, the borrower advised that renovations were nearing completion and that the property was scheduled to be rented out by the maturity date. However, the maturity date passed with no repayment, so in November 2020 GROUNDFLOOR sent the borrower a Notice of Default. In December 2020, the borrower advised that they were in the process of refinancing the loan. In January 2021, GROUNDFLOOR received a payoff request; however, the borrower subsequently advised that the refinance fell through. GROUNDFLOOR connected the borrower to other lenders in March 2021. The borrower then restarted the refinance process, and the loan was repaid in June 2021.

144 Twilight Ave - Repaid Via Cash Settlement

The project was begun in January 2020 and the loan had an original maturity date in January 2021. The borrower advised that they experienced delays in the renovation process due to COVID-19. The maturity date passed with no repayment, so in February 2021 GROUNDFLOOR sent a Notice of Default to the borrower. In March 2021, the borrower advised that they were in the process of refinancing the loan. In April 2021, the borrower advised that the property was under contract; however, it did not go through. To avoid foreclosure proceedings, GROUNDFLOOR was able to negotiate a cash settlement that provided full principal recovery but a partial interest payoff. GROUNDFLOOR accepted this settlement and the loan was repaid in June 2021. 

1401 West 22nd St - Repaid Out Of Default

The project was begun in June 2019 and the loan had an original maturity date in June 2020. As the maturity date approached, the borrower advised that they were in the process of renting out the property, but were experiencing delays 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 in the process of securing tenants; however, the maturity date passed with no repayment, so GROUNDFLOOR sent a Notice of Default to the borrower. In March 2021, the borrower advised that they were in the process of refinancing the loan. The refinance process continued through April and May, and the loan was repaid in June 2021.

1112 Hibbard St - Repaid Out Of Default

The project was begun in March 2020 and the loan had an original maturity date in March 2021. As the maturity date approached with no repayment, GROUNDFLOOR sent a Notice of Default to the borrower. The property had outstanding property taxes that needed to be settled. GROUNDFLOOR then learned that the borrower had experienced some severe health crises, so GROUNDFLOOR agreed to a reduced payoff amount. The loan was repaid with partial interest in June 2021.

99 Graymoor Ln - Repaid Out Of Default

The project was begun in February 2020 and the loan had an original maturity date in February 2021. As the maturity date approached, the borrower advised that they were in the process of refinancing the loan. However, the maturity date passed with no repayment, so GROUNDFLOOR sent a Notice of Default to the borrower in February 2021. The borrower advised that they were still planning to refinance the loan. The refinance was still ongoing through March and April, and in May 2021 GROUNDFLOOR was in communication with the refinance lender to expedite the process. The loan was repaid in June 2021.

00 Wafford - Repaid Via REO

The project was begun in October 2018 and the loan had an original maturity date in October 2019. In June 2019, the borrower advised that they were in the process of refinancing the loan. In August 2019, the refinance lender advised that the closing was delayed. In September 2019, GROUNDFLOOR met with the borrower and conducted a site visit to determine the status of the project. GROUNDFLOOR and the borrower agreed to a global resolution on the property, which included a full repayment by October 2019. However, the borrower defaulted on the agreement, and GROUNDFLOOR began foreclosure proceedings. Foreclosure proceedings remained ongoing through the end of 2019, and in April 2020 court proceedings were delayed due to COVID-19. The court hearing date was delayed multiple months due to court closures due to the pandemic. A new hearing was scheduled in November 2020. In February 2021, GROUNDFLOOR prepared the property for sale and began marketing it. In March 2021, GROUNDFLOOR accepted a purchase offer; however, the sale did not go through due to the buyer’s health concerns. In June 2021, GROUNDFLOOR accepted another purchase offer, and the loan was repaid with a principal loss. 

The property was sold for $155,000. After adding the remaining escrow balance and subtracting legal fees and asset management costs, the net recovery on this property was $133,192.36, which represents an 88.2% recovery of principal. Impacted investors may view a more detailed breakdown of the recovery in our recent email communication. 

00 Lakeview Ave - Repaid Via REO

The project was begun in August 2018 and the loan had an original maturity date in August 2019. As the maturity date approached with no repayment, GROUNDFLOOR issued a Notice of Default. In September 2019, GROUNDFLOOR met with the borrower and conducted a site visit to determine the status of the project. GROUNDFLOOR and the borrower agreed to a global resolution on the property, which included a full repayment by December 2019 and proof of permits and tax payments by October 2019. However, the borrower defaulted on the agreement, and GROUNDFLOOR began foreclosure proceedings in October 2019. Foreclosure proceedings continued through the end of 2019 and into 2020. Court proceedings were delayed due to COVID-19. Foreclosure proceedings continued through the end of 2020 and into 2021. In March 2021, GROUNDFLOOR accepted a purchase offer; however, the sale did not go through due to the buyer’s health concerns. In June 2021, GROUNDFLOOR accepted another purchase offer, and the loan was repaid with a principal loss.

The property was sold for $174,489.49. After adding the remaining escrow balance and subtracting legal fees and asset management costs, the net recovery on this property was $155,373.90, which represents a 67.2% recovery of principal. Impacted investors may view a more detailed breakdown of the recovery in our recent email communication.

126 Ambrose Dr - Repaid Out Of Default

The project was begun in March 2020 and the loan had an original maturity date in March 2021. In February 2021, the borrower defaulted on a non-monetary term of the loan’s contract; as such, GROUNDFLOOR sent a Notice of Default to the borrower. In March 2021, the borrower advised that the property was under contract; however, the contract fell through, and at the end of March 2021 GROUNDFLOOR undertook workout discussions with the borrower to avoid foreclosure. A workout agreement was reached in April 2021, giving a new maturity date in May 2021. The borrower subsequently advised that they were in the process of refinancing the GROUNDFLOOR loan, and the loan was repaid in June 2021. 

5721 Waters Edge Dr - Repaid Out Of Default

The project was begun in May 2020 and the loan had an original maturity date in May 2021. Renovations were progressing as planned, but the maturity date arrived with no repayment, so GROUNDFLOOR sent a Notice of Default to the borrower. In June 2021, the borrower advised that they were in the process of refinancing the GROUNDFLOOR loan. The loan was repaid in June 2021. 

4507 West Congress Pkwy - Repaid Via REO

The project was begun in April 2019 and the loan had an original maturity date in April 2020. The maturity date arrived with no repayment, so GROUNDFLOOR sent a Notice of Default to the borrower in April 2020. The default period expired with no plan for repayment, so in May 2020 GROUNDFLOOR engaged counsel to proceed with foreclosure. Court proceedings were delayed due to COVID-19, and the foreclosure process continued throughout 2020 and into 2021. In May 2021, GROUNDFLOOR received a payoff request from the borrower’s attorney, and in June 2021 GROUNDFLOOR’s attorney advised that the file was going to court to obtain a decision on judgment. The loan was repaid in June 2021.

886 Custer Ave SE - Repaid Via Workout Agreement

The project was begun in March 2019 and the loan had an original maturity date in March 2020. In December 2019, the borrower advised that they were in the process of refinancing the loan; however, the refinance did not go through. The borrower continued pursuing a refinance. In May 2021, GROUNDFLOOR agreed to an extension, giving a new maturity date in November 2020. As the new maturity date approached, GROUNDFLOOR agreed to a second extension at an increased interest rate, giving a new maturity date in February 2021. As 2021 continued, the borrower continued to make progress on the project, which GROUNDFLOOR confirmed. As the maturity date passed, GROUNDFLOOR connected the borrower with refinance lenders to expedite an exit. The borrower began the refinance process, and in June 2021 the loan was repaid.

452 Rockwell St SW - Repaid Via Workout Agreement

The project was begun in December 2019 and the loan had an original maturity date in December 2020. The borrower advised that there were several delays in the renovation process due to COVID-19, and renovations were still ongoing as the maturity date arrived. GROUNDFLOOR agreed to an extension with the borrower, giving a new maturity date in March 2021. The borrower advised that they were in the process of refinancing the GROUNDFLOOR loan, and the loan was repaid in June 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 did not proceed with any foreclosure actions last month.

Real Estate Owned (REO) Activity:

We took possession of the following new properties last month:

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

We sold the following real estate owned properties last month:

Joey Wilson

Senior Director, Customer Success

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