Subsequent Events |
6 Months Ended | |||
|---|---|---|---|---|
Jun. 30, 2017 | ||||
| Subsequent Events [Abstract] | ||||
| Subsequent Events [Text Block] |
Subsequent to June 30, 2017, the Company is participating a joint venture agreement with a borrower. The Company provided financing in exchange for the borrower’s ability to renovate and re-sell the property at a profit. The joint venture agreement calls for the profits to be split 70% to the borrower and 30% to the Company upon the sale of the property. The Company earned origination fees and closing fees at the consummation of the purchase and will earn interest at 12% during the term of the project. Profit allocations will be determined after the Company recovers all interest earned on the project. The Company’s investment in the project is $345,000. Subsequent to June 30, 2017, the Company is in the process of foreclosing on five properties and has retained counsel to protect the Company’s interests. Four properties are held by two borrowers with a total principal balance of $452,361. These properties are assessed at $686,480. The last property is held by a single borrower with a total principal balance of $58,000 and an assessed value of $205,700. The Company has obtained real property assessments and broker opinions of value for these properties. Based on these values, the Company has not recorded an impairment loss for these properties. On July 7, 2017, the Company declared a dividend of $.105 per share to be paid on July 27, 2017 to shareholders of record on July 17, 2017. The total amount of the dividend payment was approximately $1,166,000. On July 11, 2017, the Company received an offer to sell a property classified as real estate owned. The selling price is $470,000 and the Company is required to make certain repairs prior to sale. The carrying cost of the property is approximately $395,500, not including the costs of repairs to be made by the Company. The Company expects a small profit on the sale of the property. |