5.    Real Estate Owned

Property purchased for rental or acquired through foreclosure are included on the balance sheet as real estate owned.

As of June 30, 2023 and June 30, 2022, the fair value of real estate owned totaled $4,998,934 and $5,904,614, respectively, with no valuation allowance. For the three months ended June 30, 2023 and 2022, the Company recorded an impairment loss of $212,500 and $230,000, respectively. For the six months ended June 30, 2023 and 2022, the Company recorded an impairment loss of $212,500 and $490,500, respectively.

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As of June 30, 2023, real estate owned included $817,609 of real estate held for rental and $4,181,325 of real estate held for sale. As of June 30, 2022, real estate owned included $800,949 of real estate held for rental and $5,103,685 of real estate held for sale.

Properties Held for Sale

During the three months ended June 30, 2023, the Company sold three (3) properties held for sale and recognized an aggregate loss of $21,239. During the six months ended June 30, 2023, the Company sold five (5) properties held for sale and recognized an aggregate gain of $126,861. During the three months ended June 30, 2022, the Company sold two (2) properties held for sale and recognized an aggregate gain of $188,182. During the six months ended June 30, 2022, the Company sold three (3) properties held for sale and recognized an aggregate gain of $122,343.

Properties Held for Rental

As of June 30, 2023, one property, a commercial building, was held for rental. The tenant signed a five-year lease that commenced on August 1, 2021.

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

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