Related Party Transactions |
6 Months Ended | |||
|---|---|---|---|---|
Jun. 30, 2017 | ||||
| Related Party Transactions [Abstract] | ||||
| Related Party Transactions Disclosure [Text Block] |
The Company currently uses facilities maintained by JJV, who is responsible for paying rent and related overhead expenses, in exchange for compensation. The related compensation expense for JJV for the three and six month periods ended June 30, 2017 and 2016 were $-0- and $91,061, and $35,847 and $152,517, respectively. The Company expects to move its operations to a new location, owned by the Company, in the fourth quarter of 2017. (See Note 6.) Prior to the Exchange, from time to time, JJV acquired certain troubled assets from third parties who were not existing Company borrowers. JJV borrowed money from the Company to finance these arrangements. The real estate purchased is held by JJV in trust for the Company. The Company accounts for these arrangements as separate loans to JJV. The income earned on these loans is equivalent to the income earned on similar loans in the portfolio. All underwriting guidelines are adhered to. The mortgage documents allow JJV to sell the properties in case of default with proceeds in excess of loan principal and accrued expense being returned to the borrower. During the six months ended June 30, 2017, the Company did not enter into any new loan agreements with JJV. The principal balance of the loans to JJV at June 30, 2017 were $1,104,022. During the six months ended June 30, 2017 and 2016, JJV was paid $52,902 and $244,152, respectively, related to origination fees. (See Note 7.) During the three and six month periods ended June 30, 2017 and 2016, JJV paid $31,321 and $61,741, and $38,918 and $81,224, respectively, of interest on borrowings from the Company. Prior to the date of the Exchange, JJV frequently paid for costs on behalf of the Company. These costs include insurance and real estate taxes where the Company has been notified that the borrower is in default, costs of any actions (i.e., foreclosures) commenced by the Company to enforce its rights or collect amounts due from borrowers who have defaulted on their obligations to the Company as well as other related costs that the Company deems appropriate to protects its interests. Salaries and payroll taxes paid for by JJV on behalf of the Company are included in other fees and taxes. For the six months ended June 30, 2017 and 2016, the Manager charged the Company $9,035 and -0-, respectively, for certain payroll and related costs. Unreimbursed costs advanced and unpaid by the Manager on behalf of the Company as of June 30, 2017 were $14,928 and are included in due to shareholders on the Company’s balance sheet. On February 9, 2017, the Company purchased computer hardware, software and furniture and fixtures totaling $92,806 from JJV at cost. |