Annual report pursuant to Section 13 and 15(d)

STATEMENTS OF CASH FLOW

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STATEMENTS OF CASH FLOW - USD ($)
 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES    
Net income $ 4,860,848 $ 3,050,627
Adjustments to reconcile net income to net cash provided by operating activities:    
Amortization of deferred financing costs 59,118 47,676
Depreciation expense 28,358 0
(Gain) loss on sale of real estate (179) 87,967
(Increase) decrease in:    
Escrow deposits (111,189) 0
Interest and fees receivable (166,565) (213,438)
Other receivables (51,728) (72,374)
Prepaid Insurance (4,520) 0
(Decrease) increase in:    
Due to member (656,296) 421,592
Accrued interest 16,242 (13,479)
Accrued expenses 194,674 196,086
Deferred revenue 817,944 25,484
Advances from borrowers (141,995) 167,044
Total adjustments (16,136) 646,558
NET CASH PROVIDED BY OPERATING ACTIVITIES 4,844,712 3,697,185
CASH FLOWS FROM INVESTING ACTIVITIES    
Proceeds from sale of real estate owned 530,181 1,059,629
Acquisitions of and improvements to real estate owned (531,961) (886,009)
Purchase of land and building (39,923) (397,448)
Purchase of property and equipment (92,806) 0
Security deposit 1,750 800
Principal disbursements for mortgages receivable (53,468,949) (21,580,103)
Principal collections on mortgages receivable 23,948,601 14,861,360
Repurchase of notes sold (2,000,000) 0
Proceeds from notes sold 2,723,478 0
NET CASH USED FOR INVESTING ACTIVITIES (28,929,629) (6,941,771)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from line of credit 44,177,225 7,475,000
Repayment of line of credit (42,449,555) (5,361,057)
(Principal payments on) proceeds from mortgage payable (8,899) 310,000
Dividends (3,339,655) 0
Proceeds from public offerings 30,250,000 0
Offering costs incurred (3,258,158) 0
Pre-offering costs incurred 0 (580,890)
Financing costs incurred (87,202) (76,159)
Members contributions 653,646 5,084,732
Members distributions (2,460,125) (3,879,259)
NET CASH PROVIDED BY FINANCING ACTIVITIES 23,477,277 2,972,367
NET DECREASE IN CASH (607,640) (272,219)
CASH - BEGINNING OF YEAR 1,561,863 1,834,082
CASH - END OF YEAR 954,223 1,561,863
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION    
Interest paid $ 587,442 $ 470,821