jdohnert@imfpubs.com 

Investment property lender Groundfloor Finance recently issued a $75 million bond of residential transition loans. 

The unrated securitization is the first deal of its kind to include a deferred payment feature where investors won’t receive principal payments until maturity of the issuance. Nick Bhargava, co-founder of Groundfloor, added that the deal pays a “very attractive coupon.” 

“Unlike traditional RTL structures, this deferred-pay model offers a unique performance profile while maintaining the underlying integrity and stability of the RTL asset class,” Groundfloor said. 

RTLs in the deal were originated and managed by Groundfloor. The Georgia-based company is also the primary servicer for all loans in the bond.