6. Real Estate Owned

Property acquired through foreclosure are included on the consolidated balance sheet as real estate owned and further categorized as held for sale or held for rental, described in detail below.

As of December 31, 2023 and 2022, real estate owned totaled $3,461,519 and $5,216,149. During the year ended December 31, 2023, the Company’s real estate owned portfolio recorded an impairment loss of $794,462 compared to an impairment loss of $799,909 in 2022, which is considered a level 3 non-recurring fair market value adjustment.

The following table presents the Company’s REO as of December 31, 2023 and 2022:

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As of December 31, 2023, REO included $800,000 of properties held for rental and $2,661,519 of properties held for sale. As of December 31, 2022, REO included $801,394 of properties for rental and $4,414,755 of properties held for sale.

Properties Held for Sale

During the year ended December 31, 2023, the Company sold seven properties held for sale and recognized an aggregate gain of $87,633. During the year ended December 31, 2022, the Company sold five properties held for sale and recognized an aggregate loss of $44,752.

Properties Held for Rental

As of December 31, 2023, one property, a commercial building, was held for rental. The tenant signed a 5-year lease that commenced on August 1, 2021.

As of December 31, 2023, future minimum rents under this lease were as follows:

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