5.    Real Estate Owned

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

As of March 31, 2021, and December 31, 2020, real estate owned totaled $8,624,044 and $8,861,609, respectively, with no valuation allowance. As of March 31, 2021, real estate owned included $1,381,687 of real estate held for rental and $7,242,357 of real estate held for sale. In the first quarter of 2021, the Company recorded an impairment loss of $25,000 compared to an impairment loss of $250,000 in the first quarter of 2020.

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Properties Held for Sale

On January 15, 2021, the Company sold a property classified as real estate held for sale, receiving approximately $371,000 in gross proceeds. The Company recognized a loss of $2,134 on the sale.