6.    Real Estate Owned

Property acquired through foreclosure are included on the balance sheet as real estate owned and further categorized as held for sale or held for rental, described in detail below.

As of September 30, 2023 and December 31, 2022, the fair value of real estate owned totaled $3,481,177 and $5,216,149, respectively, with no valuation allowance. For the three months ended September 30, 2023 and 2022, the Company recorded an impairment loss of $400,000 and $195,000, respectively. For the nine months ended September 30, 2023 and 2022, the Company recorded an impairment loss of $612,500 and $685,500, respectively.

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As of September 30, 2023, real estate owned included $825,963 of real estate held for rental and $2,655,214 of real estate held for sale. As of September 30, 2022, real estate owned included $800,053 of real estate held for rental and $4,815,887 of real estate held for sale.

Properties Held for Sale

During the three months ended September 30, 2023, the Company sold one (1) property held for sale and recognized a loss of $14,229. During the nine months ended September 30, 2023, the Company sold six (6) properties held for sale and recognized an aggregate net gain of $112,633. During the three months ended September 30, 2022, the Company sold two (2) properties held for sale and recognized an aggregate net loss of $962. During the nine months ended September 30, 2022, the Company sold five (5) properties held for sale and recognized an aggregate net gain of $121,381.

Properties Held for Rental

As of September 30, 2023, one property, a commercial building, was held for rental. The tenant signed a five-year lease that commenced on August 1, 2021.

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

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