5.    Real Estate Owned

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

As of June 30, 2020, and December 31, 2019, real estate owned totaled $7,023,382 and $8,258,082, respectively. As of June 30, 2020, real estate owned included $1,655,580 of real estate held for rental and $5,367,802 of real estate held for sale. On May 15, 2020, the Company sold a property classified as real estate held for sale, receiving approximately $557,000 in gross proceeds. No gain or loss was recognized on this sale as the Company is foreclosing on additional collateral provided by the borrower. In the first six months of 2020, the Company recorded an impairment loss of $495,000 compared to an impairment loss of $-0- in the first six months of 2019.