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, 2020 and 2019, real estate owned totaled $8,861,609 and $8,258,082, respectively, with no valuation allowance in either year. During the year ended December 31, 2020 the Company recorded an impairment loss of $795,000 compared to an impairment loss of $417,094 in 2019.

As of December 31, 2020, real estate owned included $1,393,398 of real estate held for rental and $7,468,211 of real estate held for sale. As of December 31, 2019, real estate owned included $558,672 of real estate held for rental and $7,699,410 of real estate held for sale.

Properties Held for Sale

During the year ended December 31, 2020, the Company sold two properties held for sale and recognized an aggregate loss of $7,219. During the year ended December 31, 2019, the Company sold six properties, of which three were held for sale and three were held for rental, and recognized an aggregate loss of $34,919.

Properties Held for Rental

As of December 31, 2020, five properties, four single-family residences and one commercial building, were held for rental. Four properties are leased on a month-month basis and the other one is subject to a lease expiring in March 2022. During the year ended December 31, 2020, three purchase options expired and one property is subject to an option to purchase in favor of the current lessee.

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

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