Annual report pursuant to Section 13 and 15(d)

Real Estate Owned

v3.23.1
Real Estate Owned
12 Months Ended
Dec. 31, 2022
Real Estate Owned  
Real Estate Owned

5. Real Estate Owned

Property purchased for rental or acquired through foreclosure are included on the balance sheet as real estate owned.

As of December 31, 2022 and 2021, real estate owned totaled $5,216,149 and $6,559,010, respectively, with no valuation allowance in either year. During the year ended December 31, 2022, the Company’s real estate owned portfolio recorded an impairment loss of $799,909 compared to an impairment loss of $719,000 in 2021.

The following table presents the activity of the Company’s real estate owned for the years ended December 31, 2022 and 2021:

    

Year Ended

December 31,

    

2022

    

2021

Real estate owned at beginning of period

$

6,559,010

$

8,861,609

Transfers to real estate owned

 

1,376,733

 

685,700

Charges and improvements to real estate owned

 

126,442

 

296,173

Proceeds from sale of real estate owned

 

(2,090,879)

 

(2,399,557)

Impairment of real estate owned

 

(799,909)

 

(719,000)

Gain (Loss) on sale of real estate owned

 

44,752

 

(165,915)

Balance at end of period

$

5,216,149

$

6,559,010

As of December 31, 2022, real estate owned included $801,394 of real estate held for rental and $4,414,755 of real estate held for sale. As of December 31, 2021, real estate owned included $786,302 of real estate held for rental and $5,772,708 of real estate held for sale.

Properties Held for Sale

During the year ended December 31, 2022, the Company sold five properties held for sale and recognized an aggregate gain of $44,752. During the year ended December 31, 2021, the Company sold ten properties held for sale and recognized an aggregate loss of $165,915.

Properties Held for Rental

As of December 31, 2022, one property, a commercial building, was held for rental. The tenant signed a 5 year lease that commenced on August 1, 2021.

Rental payments due from real estate held for rental are as follows:

Year ending December 31, 2022

    

$

53,200

Year ending December 31, 2023

 

53,200

Year ending December 31, 2024

 

53,200

Year ending December 31, 2025

53,200

Total

$

212,800