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, 2021 and 2020, real estate owned totaled $6,559,010 and $8,861,609, respectively, with no valuation allowance in either year. During the year ended December 31, 2021 the Company recorded an impairment loss of $719,000 compared to an impairment loss of $795,000 in 2020.

As of December 31, 2021, real estate owned included $786,302 of real estate held for rental and $5,772,708 of real estate held for sale. 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.

Properties Held for Sale

During the year ended December 31, 2021, the Company sold ten properties held for sale and recognized an aggregate loss of $165,915. During the year ended December 31, 2020, the Company sold two properties held for sale and recognized an aggregate loss of $7,218.

Properties Held for Rental

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

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

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