Welcome to our Asset Management Monthly Update series, which gives Groundfloor investors a monthly snapshot of how our Asset Management team is managing our outstanding loan portfolio. This report provides details on loans repaid in September 2022, as well as insight into specific cases for the month.
We continued to see solid portfolio performance in September with a record $1.09 million in interest repaid to our investors.
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:
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 in September, loans repaid since the start of Q3 2022, and loans repaid year-to-date in 2022.
It's important to note that the above table shows the performance of loans that were repaid during the time periods noted, not the performance of loans originated during these timeframes.
Repayments - September 2022
This table presents loans that were repaid within September, with details on the purchase amount, actual vs. expected term, and actual vs. expected rate:
*NOTE: Actual rate is not inclusive of any promotions. Individual repayments are dependent on how long your principal is active in a given loan.
Special Situations Repaid in September
Next, we provide a monthly overview of special situation loans we resolved in the prior month. In September, a total of 70 loans were repaid of which 29 were current or repaid within a month of maturity. 27 loans were granted an extension in September and were repaid after the stated maturity date. 11 loans were special situation loans, a couple of which we go into greater detail below:
3812 Donaldson Drive – Foreclosure
This loan became effective in November of 2020. Work began and progress was monitored. Due to delays in city permitting and supply chain issues the loan passed its maturity date. The Asset Management team continued to engage with the borrower, providing directions and feedback while the borrower completed the project and listed the property for sale. Due to market conditions the borrower altered their exit strategy and decided to refinance the loan. After numerous delays on the part of the borrower, the Groundfloor Asset Management team referred the file to foreclosure. The loan repaid in September 2022 with an effective rate of 10.7% vs the original contract rate of 10% leading to a better than expected return for investors.
2938 Waters Road SW – Real Estate Owned
This loan became effective in March of 2020. The borrower demolished the property without approval from Groundfloor, and as such, Groundfloor Asset Management foreclosed on the property and it became Real Estate Owned (REO) in July of 2022. The value of the property would not have repaid the loan principal in full. As such, Groundfloor Asset Management was able to enter into an easement agreement with Georgia Power for $50,000 and then sell the property at an amount that was enough to repay principal plus interest to our investors. The loan repaid in September 2022.
Special Situations Activity in September
Finally, our asset management team moved forward with the following special situation loans in September. As a reminder, all performing loans are monitored for repayment status starting at 120 days prior to maturity.
The Asset Management team went into workout agreements on 19 loans in September, and we proceeded with foreclosure actions on 18 properties. We took possession of three new properties, and two loans went under contract to sell in September. Additionally, the team sold three real estate owned properties.
Loans Given a Workout Agreement
314 Fortune St Unit A
314 Fortune St Unit B
1378 Gus Thornhill Jr Dr
129 High Bluff Ct
25214 Harwell Dr
1205 E 27th St
2686 Tupelo Street
7419 Hazel Ave
1748 Terry Mill Rd SE
1129 Selwin Avenue Southwest
2431 Peabody Ave
176 Vanira Avenue Southeast - B
176 Vanira Avenue Southeast
1366 Gus Thornhill Jr Dr
0 Schooner Ct
194 Southern Shores Rd
286 Sisson Ave NE
2056 Fairway Cir NE
55 Warwick Ave
1410 Lavista Road
566 Coldstream Court Northwest
475 S 7th
93 Pennsylvania Ave
2031 Shady Ln
5502 Pershing St
5506 Pershing St
5510 Pershing St
5514 Pershing St
3851 Aldrich Ave N
367 Andrew Hairston Pl NW
1136 Oak Knoll Terrace Southeast
1675 Avon Ave SW
811 Sheppard Road
149 Valley Road
3477 Jackson Dr
1110 Oak Knoll Terr SE