Genesis Financial 10-Q 9 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Oct. 12, 2015
Document and Entity Information
Entity Registrant Name	Genesis Financial Inc
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Entity Central Index Key	1,183,082
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		16,198,870
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Entity Incorporation, State Country Name	Washington
Trading Symbol	gfnl
Entity Incorporation, Date of Incorporation	Jan. 24, 2002

GENESIS FINANCIAL, INC. Condens

GENESIS FINANCIAL, INC. Condensed Balance Sheets (Interim period unaudited) - USD ($)		Sep. 30, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash and cash equivalents		$ 85,465	$ 64,493
Interest and other receivables		79,955	73,747
Investment in real estate limited liability companies		269,725	248,774
Convertible note receivable		10,000	150,000
Loans held for sale		527,731	611,400
Real estate owned		44,392	44,392
Total current assets		1,017,268	1,192,806
NON-CURRENT ASSETS:
Long-term investments, at cost		1,400,000	1,250,000
Investments - available for sale		221,413	295,217
Real estate leasehold interest, net of accumulated amortization of $44,725 and $29,243, respectively		574,525	590,007
Rental property, net of accumulated depreciation of $4,198 and $2,590, respectively		78,329	82,944
Office equipment, net of accumulated depreciation of $5,565 and $4,541, respectively		2,368	3,391
Total non-current assets		2,276,635	2,221,559
Total assets		3,293,903	3,414,365
CURRENT LIABILITIES:
Line of credit, affiliated company		1,260,000	1,280,000
Line of credit, bank		229,887	85,000
Note payable		33,098	38,041
Other current liabilities		20,589	19,775
Total current liabilities		1,543,574	1,422,816
LONG-TERM LIABILITIES
Convertible note payable to officer		$ 250,000	$ 250,000
COMMITMENT AND CONTINGENCIES	[1]
STOCKHOLDERS' EQUITY:
Series B Preferred stock, $1.00 par value: 2,290,000 authorized -0- and 1,649,500 issued and outstanding, respectively			$ 1,649,500
Common stock, $.001 par value, 100,000,000 authorized, 16,198,870 and 12,075,120 issued and outstanding, respectively		$ 16,199	12,075
Additional paid-in capital		8,257,141	6,590,777
Accumulated deficit		(6,494,424)	(6,306,020)
Accumulated other comprehensive (loss)		(278,587)	(204,783)
Total stockholders' equity		1,500,329	1,741,549
Total liabilities and stockholders' equity		$ 3,293,903	$ 3,414,365
[1]	Note 6

Statement of Financial Position

Statement of Financial Position - Parenthetical - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Statement of financial position
Preferred Stock, Par Value	$ 1	$ 1
Preferred Stock, Shares Authorized	2,290,000	2,290,000
Preferred Stock, Shares Issued	1,639,500	1,649,500
Preferred Stock, Shares Outstanding	1,639,500	1,649,500
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	16,198,870	12,075,120
Common Stock, Shares Outstanding	16,198,870	12,075,120
Accumulated depreciation, equipment	$ 5,565	$ 4,541
Accumulated amortization, real estate leasehold interest	44,725	29,243
Accumulated depreciation, rental property	$ 4,198	$ 2,590

GENESIS FINANCIAL, INC. Conden4

GENESIS FINANCIAL, INC. Condensed Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
REVENUE:
Interest, processing fees and other income	$ 13,694	$ 7,765	$ 48,639	$ 222,767
Rental income	20,410	11,180	63,360	37,460
Net revenues	34,104	18,945	111,999	260,227
EXPENSES:
Fair value adjustment	67,893		67,893	281,575
Loss (income) on investment in real estate LLC	(813)	3,374	1,089	29,229
Salaries	12,750	12,750	38,250	38,250
Interest expense, related party	5,041	5,041	15,123	15,123
Interest expense, other	3,269	311	7,517	4,466
Depreciation and amortization	6,038	6,038	18,112	27,160
Rental property expense	6,232	5,574	27,183	16,100
Office occupancy and other	39,176	25,712	125,236	101,314
Total operating expenses	139,587	58,800	300,403	513,217
NET LOSS	(105,482)	(39,855)	(188,403)	(252,990)
COMPREHESIVE INCOME (LOSS):
Unrealized income (loss) on available for sale securities		144,609	(73,804)	(230,613)
COMPREHESIVE INCOME (LOSS)	$ (105,482)	$ 104,754	$ (262,207)	$ (483,603)
BASIC AND DILUTED EARNINGS (LOSS) PER SHARE	$ (0.01)	$ 0	$ (0.01)	$ (0.02)
WEIGHTED AVERAGE SHARES: BASIC AND DILUTED	16,198,870	12,075,120	14,381,898	11,993,153

GENESIS FINANCIAL, INC. Conden5

GENESIS FINANCIAL, INC. Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement of cash flows
CASH FLOWS FROM OPERATING ACTIVITIES	$ (66,933)	$ 289,484
CASH FLOWS FROM INVESTING ACTIVITIES
Investment in real estate limited liability companies	(32,039)	(31,474)
CASH FLOWS FROM FINANCING ACTIVITIES:
Stock options exercised		100,000
Borrowings (repayment) of line of credit with affiliate, net	(20,000)	(120,000)
Borrowings (repayment) from line of credit from bank, net	144,887	(180,000)
(Repayment) of note payable	(4,943)	(23,695)
Net cash provided (used) by financing activities	119,944	(223,695)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT	20,972	34,315
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	64,493	52,498
CASH AND CASH EQUIVALENTS AT END OF PERIOD	85,465	86,813
NONCASH TRANSACTIONS
Preferred stock converted to common stock	1,649,500
Convertible note receivable settled with long term investment	$ 150,000
Loans held for sale converted to REO or rental property		$ 86,717

Note 1 - Organization and Summa

Note 1 - Organization and Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Notes
Note 1 - Organization and Summary of Significant Accounting Policies:	NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization: Genesis Financial, Inc. (“the Company” or “GFI”) was incorporated in Washington State on January 24, 2002. The Company is primarily engaged in the business of purchasing and selling real estate loans and periodically providing bridge capital funding. Loans consist of real estate loans and mortgage notes collateralized by primarily first position liens on residential and commercial real estate. The loans collateralized by real estate are typically non-conventional either because they are originated as a result of seller financing, or the underlying property is non-conventional. The Company invests in loans using investor funds, equity funds and funds generated from external borrowings including a line of credit facility from an affiliated stockholder. Summary of Significant Accounting Policies: Use of estimates Fair value measurements - 1. the fair value measurement; 2. the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); 3. for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: a. total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earnings are reported in the statement of operations; b. the amount of these gains or losses attributable to the change in unrealized gains or losses relating to those assets or liabilities still held at the reporting period date and a description of where those unrealized gains or losses are reported; c. purchases, sales, issuances, and settlements (net); and d. transfers into and/or out of Level 3. 4. the amount of the total gains or losses for the period in (3)(a) included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of operations; and in annual periods only, the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period. Real estate leasehold interest – Loans held for sale – Real estate owned – Income tax Earnings per share September 30, 2015 2014 Stock options 261,000 761,000 Convertible preferred stock - 4,123,750 Convertible debt 625,000 625,000 Total possible dilution 886,000 5,509,750 Reclassifications

Note 2 - Loans Held For Sale an

Note 2 - Loans Held For Sale and Convertible Note	9 Months Ended
	Sep. 30, 2015
Notes
Note 2 - Loans Held For Sale and Convertible Note:	NOTE 2 — LOANS HELD FOR SALE AND CONVERTIBLE NOTE: The Company's fair value of loans held for sale and convertible notes consisted of the following: September 30, 2015 December 31, 2014 Residential $ 290,552 $ 319,733 Land - 10,337 Commercial 237,179 281,330 Loans held for sale - Total $ 527,731 $ 611,400 Convertible notes - Total $ 10,000 $ 150,000 Pacific Air Well Inc.: On August 12, 2015, the Company loaned Pacific Air Well, Inc. $10,000. The loan is due and payable in 6 months and bears an interest rate of 8%. The Company has the option to convert the amount at any time into shares of the Company’s parent corporation Pacific Air Well Corporation at $0.50 per share. The following table presents a reconciliation of loans held for sale measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the nine months ended September 30, 2015 and 2014: September 30, 2015 2014 Beginning Balance $ 611,400 $ 1,024,027 New loans 15,000 150,000 Principal payments received (10,806) (21,417) Proceeds on sale of loans - (70,291) Loss on sale of loans - (3,616) Proceeds from loans paid in full (25,337) (397,641) Gain on loan paid in full - 166,300 Converted to REO or Rental Property - (86,717) Fair value adjustment (67,893) - Repossession Expenses 5,367 (508) Ending Balance $ 527,731 $ 760,137 During the nine months ended September 30, 2015, the Company funded one new loan for $15,000 had two loans with a basis of $25,337 pay in full with no gain or loss. The company also adjusted to loans to fair value for $(67,893).

Note 3- Real Estate Owned

Note 3- Real Estate Owned	9 Months Ended
	Sep. 30, 2015
Notes
Note 3- Real Estate Owned:	NOTE 3- REAL ESTATE OWNED: The Company's fair value of REO consisted of the following: September 30, 2015 December 31, 2014 Land $ 40,382 $ 40,382 Commercial 4,010 4,010 Total $ 44,392 $ 44,392 The following table presents the change in balance sheet carrying values associated with REO for the nine months ended September 30, 2015 and 2014: September 30, 2015 2014 Beginning Balance $ 44,392 $ 392,855 REO transferred from loans held for sale - 3,125 Proceeds from sales of REO - (11,241) Gain on sale of REO - 2,511 Fair value adjustment - (281,576) Net change in holding costs - 1,529 Ending Balance $ 44,392 $ 107,233 During the nine months ended September 30, 2015, there was no change. During the nine months ended September 30, 2014 the Company sold one REO with proceeds of $11,241 in cash. We transferred one loan held for sale to REO for $3,125. The company also adjusted fair value in 2014 on two REO totaling $(281,575). The majority of the adjustment was due to a potential sale for a loss.

Note 4 - Other Assets

Note 4 - Other Assets	9 Months Ended
	Sep. 30, 2015
Notes
Note 4 - Other Assets:	NOTE 4 — OTHER ASSETS: Long term investments: Flyback Energy, Inc.: On November 23, 2010, the Company closed the purchase of an equity interest in Flyback Energy, Inc., for $1,200,000. The purchase was for 2,666,667 share of Series “B” Preferred Stock from Flyback Energy, Inc., a closely held Washington corporation payable on an installment basis. On April 25, 2011, the Company purchased 85,274 shares of Series “C” Preferred Stock for $50,000 which is convertible at $.60 per share and bears a 5% dividend rate. The Flyback Series "B" Preferred shares are convertible into Flyback common shares on a one for one (1:1) basis and the conversion pricing is subject to adjustments for certain diluting issues of common stock, subdivisions or combinations of common stock, reclassifications, exchanges and/or substitutions of stock. The Company is due 421,480 shares of common stock because of the dilution provision. Flyback Energy, Inc. is a privately-held company that has developed a unique and proprietary electronic switch design that offers control over electrical power and magnetic fields. Digi Outdoor Media, Inc.: In 2014, the Company loaned Placer Creek Mining Company (“Placer”) $150,000. The loan bore interest at a rate of 5.0% and the Company had an option to convert any or all of the amount due into an equity private placement of Placer. The Placer transaction is treated as a related party transaction. (see Note 8: Michael Lavigne) On February, 24, 2015, the Company converted the note into 300,000 shares of common stock of Digi Outdoor Media, Inc. (“Digi”), the successor in interest to Placer. The Company determined that the fair value of the shares received on the conversion to be $150,000 based upon the note receivable balance of $150,000 because Digi is not publicly traded and has had no recent cash sale of its common stock. The fair value was determined using Level 2 inputs under the fair value hierarchy. Digi Outdoor Media, Inc. is a startup company in the business of building and leasing outdoor advertising signs. Investments in Available for Sale Securities: Ambient Water Corporation (Formerly AWG International Water Corp.): The Company purchased 109,906 shares of the AWG International Water Corp, a Nevada corporation, (“AWGI”) common stock for $500,000 ($250,000 each in 2010 and 2011). In July 2012, AWGI was acquired by MIP Solutions, Inc. in a share exchange transaction (the "Acquisition"). In connection with the Acquisition, the Company’s 109,906 shares of AWGI common stock were converted into 7,380,433 shares of AWG International Water Corp (formerly MIP Solutions, Inc.). At September 30, 2015 the quoted market value of AWGI was $0.03 per share, or $221,413, resulting in an unrealized loss of $0 and $73,804, respectively, for the three and nine months periods ended. The investment is measured using Level 1 fair value inputs. Investments in Real Estate Limited Liability Companies: At the end of 2012, the Company acquired investments in two Washington state real estate limited liability companies. In 2013, the Company contributed its investment in one real estate owned property with a basis of $51,600 to a newly formed limited liability company in exchange for a 12.9% interest in the new company. In 2014, the Company contributed its investment in one real estate owned property with a basis of $47,925 to a newly formed limited liability company in exchange for 31.95% interest in the new company. Investments are accounted for using the equity method. During the three months ended September 30, 2015 and 2014, the Company recorded (gains)/losses of ($813) and $3,374, respectively. During the nine months ended September 30, 2015 and 2014, the Company recorded losses of $1,089 and $29,229, respectively, which represent its portion of this real estate company’s losses for the same periods. During the nine months ended September 30, 2015 and 2014, the Company advanced $22,039 and $31,474 for property taxes and interest owing. Rental Property: At the end of 2013, the Company foreclosed on a loan held for sale in Lebanon, Oregon through the bankruptcy courts. The property is currently being operated as Duffy’s Bar. The bar was subsequently leased on a three (3) year lease agreement for $1,500 per month, with the tenant paying all utilities, property taxes and insurance. During the three and nine months ended September 30, 2014 and 2015, the Company recognized $4,500 and $13,500 in rental income. This is a commercial building being depreciated over thirty-nine (39) years. Depreciation accrues at $179 per month. The Company recorded depreciation of $536 and $1,608 for the three and nine months ended September 30, 2015. Real Estate Leasehold Interest: On May 31, 2013, the Company completed the acquisition of a real property leasehold interest in approximately 63 acres with fifty (50) RV/residential lots located in Dunn County, North Dakota, (the "Halliday Project"). Total consideration for the leasehold interest was $619,250. The Company may place recreational vehicles, mobile homes, or construct cabins on the lots and offer them for rent or lease. For the three months ended September 30, 2015 and 2014, the Company recorded amortization of $5,161, respectively and had fourteen and seventeen lots leased with rental income of $15,910 and $6,680, respectively. For the nine months ended September 30, 2015 and 2014, the Company recorded amortization of $15,482 and $24,083, respectively and had twenty-four and seventeen lots leased and had rental income of $49,860 and $23,960, respectively.

Note 5 - Lines of Credit

Note 5 - Lines of Credit	9 Months Ended
	Sep. 30, 2015
Notes
Note 5 - Lines of Credit:	NOTE 5 — LINES OF CREDIT: On June 27, 2012, GFI renewed a $250,000 line of credit, bearing five (5%) percent interest with Riverbank. At September 30, 2015 the balance owing is $229,887. The line has a term of twelve months, and an origination fee of ½%, or $1,250. Accrued interest is paid monthly. The Riverbank line of credit is senior to the Coghlan Family Corporation, Inc. (“CFC”) line of credit and is collateralized by the assets of GFI. On June 30, 2015, the line of credit was extended to July 1, 2016 at which time the loan renewed at a four and a half (4.5%) percent interest rate with a renewal fee of ½%, or $1,250. The Riverbank line requires that the CFC line may not be paid down lower than the amount owing to Riverbank at any time during the term of the loan. The line is payable on demand and is personally guaranteed by John R. and Wendy Coghlan, related parties of the Company. The Company has a $2,500,000 Warehouse Line of Credit Promissory Note Agreement with the CFC, with a balance owing of $1,260,000 at September 30, 2015 and $1,280,000 at December 31, 2014. CFC is an affiliated company controlled by John R. Coghlan. At the time the agreement was made, the default interest rate was twelve (12%) percent. Interest was payable monthly. The line had a term of 12 months and an origination fee of 1/2% or $12,500. The credit line is collateralized by all of GFI’s assets and is subordinate to the Riverbank line of credit. The line of credit agreement requires that the Company maintain a debt to equity ratio of no greater than 3.0. Borrowings under the line are personally guaranteed by Michael A. Kirk, the Secretary of the Company. Because of the economic conditions, CFC agreed to waive the interest and origination fees starting October 1, 2010 and also agreed to waive the 3.0 debt to equity ratio requirement as well as the 12% default rate.

Note 6 - Notes Payable

Note 6 - Notes Payable	9 Months Ended
	Sep. 30, 2015
Notes
Note 6 - Notes Payable	NOTE 6 — NOTES PAYABLE Convertible note payable to officer: On December 15, 2010, the Company entered into a convertible note agreement with John R. Coghlan, a related party (see Note 8). The note accrues interest at eight (8%) percent per annum with interest and balance initially due on December 15, 2012. The note is convertible at any time by Mr. Coghlan into one (1) share of the Company’s Series B Preferred stock for every $1.00 outstanding of the note payable and related accrued interest. In connection with the issuance of this note, the Company recognized a beneficial conversion feature of $128,750 that resulted in a discount to the note payable. The discount was amortized into earnings over the initial term of the note and was fully amortized at December 31, 2012. The note is collateralized by 290,000 shares of the Company’s Series B Preferred stock. On October 16, 2012, the Company and Coghlan agreed to extend the due date of the note to December 15, 2016. Note payable: In 2013, the Company assumed a note payable totaling $62,699 relating to a loan it had made in 2005. When the Company funded the loan in 2005, it sold 100% of its interest to various investors. During 2013, the Company began foreclosure proceedings on behalf of the investors because the borrower was delinquent on payments. During the proceedings, it was determined that the Company had failed to obtain first position in the underlying property and that a separate creditor was in first position. To uphold its agreement with the investors, the Company assumed the balance of the note with the creditor and recognized a loss for the entire amount in 2013. The term of the assumed note is until paid in full and monthly payments are $832. At September 30, 2015 the balance owing is $33,099.

Note 7 - Series "B" Preferred S

Note 7 - Series "B" Preferred Stock	9 Months Ended
	Sep. 30, 2015
Notes
Note 7 - Series "B" Preferred Stock	NOTE 7 — SERIES B PREFERRED STOCK During the nine months ended September 30, 2015, 1,649,500 shares of Series B Preferred were converted into 4,123,750 common shares. As of September 30, 2015 no shares of Series B convertible Preferred stock are issued and outstanding, however 290,000 unissued shares of Series B Preferred stock remain a Company obligation under the $250,000 Coghlan loan discussed in Note 6.

Note 8- Related-party Transacti

Note 8- Related-party Transactions	9 Months Ended
	Sep. 30, 2015
Notes
Note 8- Related-party Transactions	NOTE 8 — RELATED-PARTY TRANSACTIONS: Related parties are defined as Officers, Directors, and/or those Shareholders owning or controlling more than 5% of the common stock of GFI, or any entities that are owned or controlled by Officers, Directors, and/or those Shareholders owning or controlling more than 5% of the common stock of GFI. Coghlan Family Corporation, Coghlan, LLC and West 3773 Fifth, LLC are controlled by John R. Coghlan, a Company director, CFO and majority shareholder. Coghlan Family Corporation is owned 100% by Coghlan, LLC, which is owned by the Coghlan family members. John R. and Wendy Coghlan (husband and wife) collectively own 35.65% of Coghlan, LLC and are co-managers. West 3773 Fifth, LLC is owned 100% by John and Wendy Coghlan (husband and wife). Genesis Financial Corporation is a company which is owned 100% by Michael Kirk, who is a director and officer of Genesis Financial, Inc. Genesis Financial, Inc. provides accounting, office services and supplies, and office space for his services provided to Genesis Financial Corporation. The services are valued at $1,500 per month. Michael Lavigne is an officer and director of Placer Creek Mining Company. Mr. Lavigne is a director of Genesis Financial, Inc. In addition to transactions described in Notes 4, 5 and 6, Genesis Financial, Inc. had the following related party transactions for the three and nine months ended September 30, 2015 and the year ended December 31, 2014. John R. Coghlan, Officer and Director On June 30, 2015, John R. and Wendy Coghlan personally guaranteed our Riverbank line of credit. On April 30, 2014, John R Coghlan exercised his option for 250,000 shares of common stock at $0.20 per share or $50,000. There was no activity for the quarter ended September 30, 2015. Coghlan Family Corporation “CFC” There was no activity for the year ended December 31, 2014 and for the quarter ended September 30, 2015. Coghlan, LLC There was no activity for the years ended December 31, 2014 and for the quarter ended September 30, 2015. West 3773 Fifth, LLC As of September 30, 2015, the Company continued a month-to-month tenancy with 3773 West Fifth, LLC, a company owned and controlled by John and Wendy Coghlan. The monthly rent is $1,250. Genesis Finance Corporation “GFC” For the year ended December 31, 2014, GFC purchased $73,907 interest in five loans held for sale by the Company. The Company recognized a loss of $3,616 on the sale. There was no activity for the quarter ended September 30, 2015. Michael Lavigne, Director During the first quarter 2015, the Company converted the Placer Creek Mining Company loan of $150,000 to 300,000 shares of Digi Outdoor Media, Inc., the successor to Placer Creek Mining Company. During the year ended December 31, 2014, the Company loaned Placer Creek Mining Company $150,000.

Note 1 - Organization and Sum14

Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Use of Estimates	Use of estimates

Note 1 - Organization and Sum15

Note 1 - Organization and Summary of Significant Accounting Policies: Fair Value Measurements (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Fair Value Measurements	Fair value measurements - 1. the fair value measurement; 2. the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); 3. for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: a. total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earnings are reported in the statement of operations; b. the amount of these gains or losses attributable to the change in unrealized gains or losses relating to those assets or liabilities still held at the reporting period date and a description of where those unrealized gains or losses are reported; c. purchases, sales, issuances, and settlements (net); and d. transfers into and/or out of Level 3. 4. the amount of the total gains or losses for the period in (3)(a) included in earnings that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of operations; and in annual periods only, the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period.

Note 1 - Organization and Sum16

Note 1 - Organization and Summary of Significant Accounting Policies: Real Estate, Policy (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Real Estate, Policy	Real estate leasehold interest –

Note 1 - Organization and Sum17

Note 1 - Organization and Summary of Significant Accounting Policies: Loans held for sale (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Loans held for sale	Loans held for sale –

Note 1 - Organization and Sum18

Note 1 - Organization and Summary of Significant Accounting Policies: Real estate owned (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Real estate owned	Real estate owned –

Note 1 - Organization and Sum19

Note 1 - Organization and Summary of Significant Accounting Policies: Income tax (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Income tax	Income tax

Reclassifications (Policies)

Reclassifications (Policies)	9 Months Ended
	Sep. 30, 2015
Policies
Reclassifications	Reclassifications

Earnings Per Share_ Schedule of

Earnings Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share	September 30, 2015 2014 Stock options 261,000 761,000 Convertible preferred stock - 4,123,750 Convertible debt 625,000 625,000 Total possible dilution 886,000 5,509,750

Note 2 - Loans Held For Sale 22

Note 2 - Loans Held For Sale and Convertible Note: Schedule of Other Assets (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Other Assets	September 30, 2015 December 31, 2014 Residential $ 290,552 $ 319,733 Land - 10,337 Commercial 237,179 281,330 Loans held for sale - Total $ 527,731 $ 611,400 Convertible notes - Total $ 10,000 $ 150,000

Note 2 - Loans Held For Sale 23

Note 2 - Loans Held For Sale and Convertible Note: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	September 30, 2015 2014 Beginning Balance $ 611,400 $ 1,024,027 New loans 15,000 150,000 Principal payments received (10,806) (21,417) Proceeds on sale of loans - (70,291) Loss on sale of loans - (3,616) Proceeds from loans paid in full (25,337) (397,641) Gain on loan paid in full - 166,300 Converted to REO or Rental Property - (86,717) Fair value adjustment (67,893) - Repossession Expenses 5,367 (508) Ending Balance $ 527,731 $ 760,137

Note 3- Real Estate Owned_ Real

Note 3- Real Estate Owned: Real Estate Owned, Disclosure of Detailed Components (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Real Estate Owned, Disclosure of Detailed Components	September 30, 2015 December 31, 2014 Land $ 40,382 $ 40,382 Commercial 4,010 4,010 Total $ 44,392 $ 44,392

Note 3- Real Estate Owned_ Chan

Note 3- Real Estate Owned: Change in balance sheet carrying values for real estate owned (Tables)	9 Months Ended
	Sep. 30, 2015
Tables/Schedules
Change in balance sheet carrying values for real estate owned	September 30, 2015 2014 Beginning Balance $ 44,392 $ 392,855 REO transferred from loans held for sale - 3,125 Proceeds from sales of REO - (11,241) Gain on sale of REO - 2,511 Fair value adjustment - (281,576) Net change in holding costs - 1,529 Ending Balance $ 44,392 $ 107,233

Note 1 - Organization and Sum26

Note 1 - Organization and Summary of Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2015
Details
Entity Incorporation, State Country Name	Washington
Entity Incorporation, Date of Incorporation	Jan. 24, 2002

Earnings Per Share_ Schedule 27

Earnings Per Share: Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements	261,000	761,000
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock		4,123,750
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Debt Securities	625,000	625,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	886,000	5,509,750

Note 2 - Loans Held For Sale 28

Note 2 - Loans Held For Sale and Convertible Note: Schedule of Other Assets (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Details
Loans and Leases Receivable, Gross, Other	$ 290,552	$ 319,733
Loans Receivable, Gross, Commercial, Financial and Agricultural		10,337
Loans Receivable, Gross, Commercial and Industrial	237,179	281,330
Loans held for sale net	527,731	611,400
Convertible Notes Payable	$ 10,000	$ 150,000

Note 2 - Loans Held For Sale 29

Note 2 - Loans Held For Sale and Convertible Note (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Details
Convertible Notes Payable	$ 10,000		$ 150,000
Investment Interest Rate	8.00%
New Loans On Real Estate Promissory Notes Or Other Assets	$ 15,000	$ 150,000
Loans paid in full	25,337
Fair Value Adjustment	$ (67,893)

Note 2 - Loans Held For Sale 30

Note 2 - Loans Held For Sale and Convertible Note: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Fair value assets measured on recurring basis level 3, beginning balance	$ 611,400	$ 1,024,027
New Loans On Real Estate Promissory Notes Or Other Assets	15,000	150,000
Proceeds from Loan and Lease Originations and Principal Collections	(10,806)	(21,417)
Proceeds from Sales of Assets, Investing Activities		(70,291)
Gain (Loss) on Sale of Investments		(3,616)
Proceeds from Loans	(25,337)	(397,641)
Gain on loan paid in full		166,300
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers out of Level 3		(86,717)
Fair Value Adjustment	(67,893)
Foreclosed Real Estate Expense	5,367	(508)
Fair Value, Assets and Liabilities Measured on Recurring Basis, Gain (Loss) Included in Earnings	$ 527,731	$ 760,137

Note 3- Real Estate Owned_ Re31

Note 3- Real Estate Owned: Real Estate Owned, Disclosure of Detailed Components (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Details
Land real estate owned	$ 40,382	$ 40,382
Commercial real estate owned	4,010	4,010
Property Subject to or Available for Operating Lease, Net	$ 44,392	$ 44,392

Note 3- Real Estate Owned_ Ch32

Note 3- Real Estate Owned: Change in balance sheet carrying values for real estate owned (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Details
Real estate gross at carrying value beginning balance	$ 44,392	$ 392,855
REO transferred from loans held for sale		3,125
Proceeds from Sale of Real Estate		(11,241)
Gain on sale of real estate owned		2,511
Fair value adjustment to REO		(281,576)
Net change in holding costs		1,529
Real estate gross at carrying value ending balance	$ 44,392	$ 107,233

Note 3- Real Estate Owned (Deta

Note 3- Real Estate Owned (Details)	9 Months Ended
	Sep. 30, 2015USD ($)
Details
Real estate owned period sales	$ 11,241
Real estate owned loan transferred	3,125
Real estate owned fair value adjustment	$ (281,575)

Note 4 - Other Assets (Details)

Note 4 - Other Assets (Details)	9 Months Ended
	Sep. 30, 2015
Details
Equity Method Investments and Joint Ventures Disclosure	Flyback Energy, Inc.: On November 23, 2010, the Company closed the purchase of an equity interest in Flyback Energy, Inc., for $1,200,000. The purchase was for 2,666,667 share of Series “B” Preferred Stock from Flyback Energy, Inc., a closely held Washington corporation payable on an installment basis. On April 25, 2011, the Company purchased 85,274 shares of Series “C” Preferred Stock for $50,000 which is convertible at $.60 per share and bears a 5% dividend rate. The Flyback Series "B" Preferred shares are convertible into Flyback common shares on a one for one (1:1) basis and the conversion pricing is subject to adjustments for certain diluting issues of common stock, subdivisions or combinations of common stock, reclassifications, exchanges and/or substitutions of stock. The Company is due 421,480 shares of common stock because of the dilution provision. Flyback Energy, Inc. is a privately-held company that has developed a unique and proprietary electronic switch design that offers control over electrical power and magnetic fields. Digi Outdoor Media, Inc.: In 2014, the Company loaned Placer Creek Mining Company (“Placer”) $150,000. The loan bore interest at a rate of 5.0% and the Company had an option to convert any or all of the amount due into an equity private placement of Placer. The Placer transaction is treated as a related party transaction. (see Note 8: Michael Lavigne) On February, 24, 2015, the Company converted the note into 300,000 shares of common stock of Digi Outdoor Media, Inc. (“Digi”), the successor in interest to Placer. The Company determined that the fair value of the shares received on the conversion to be $150,000 based upon the note receivable balance of $150,000 because Digi is not publicly traded and has had no recent cash sale of its common stock. The fair value was determined using Level 2 inputs under the fair value hierarchy. Digi Outdoor Media, Inc. is a startup company in the business of building and leasing outdoor advertising signs.
Marketable Securities	Investments in Available for Sale Securities: Ambient Water Corporation (Formerly AWG International Water Corp.): The Company purchased 109,906 shares of the AWG International Water Corp, a Nevada corporation, (“AWGI”) common stock for $500,000 ($250,000 each in 2010 and 2011). In July 2012, AWGI was acquired by MIP Solutions, Inc. in a share exchange transaction (the "Acquisition"). In connection with the Acquisition, the Company’s 109,906 shares of AWGI common stock were converted into 7,380,433 shares of AWG International Water Corp (formerly MIP Solutions, Inc.). At September 30, 2015 the quoted market value of AWGI was $0.03 per share, or $221,413, resulting in an unrealized loss of $0 and $73,804, respectively, for the three and nine months periods ended. The investment is measured using Level 1 fair value inputs.
Investment Holdings, Other than Securities	Investments in Real Estate Limited Liability Companies: At the end of 2012, the Company acquired investments in two Washington state real estate limited liability companies. In 2013, the Company contributed its investment in one real estate owned property with a basis of $51,600 to a newly formed limited liability company in exchange for a 12.9% interest in the new company. In 2014, the Company contributed its investment in one real estate owned property with a basis of $47,925 to a newly formed limited liability company in exchange for 31.95% interest in the new company. Investments are accounted for using the equity method. During the three months ended September 30, 2015 and 2014, the Company recorded (gains)/losses of ($813) and $3,374, respectively. During the nine months ended September 30, 2015 and 2014, the Company recorded losses of $1,089 and $29,229, respectively, which represent its portion of this real estate company’s losses for the same periods. During the nine months ended September 30, 2015 and 2014, the Company advanced $22,039 and $31,474 for property taxes and interest owing.
Operating Leases of Lessor Disclosure	Rental Property: At the end of 2013, the Company foreclosed on a loan held for sale in Lebanon, Oregon through the bankruptcy courts. The property is currently being operated as Duffy’s Bar. The bar was subsequently leased on a three (3) year lease agreement for $1,500 per month, with the tenant paying all utilities, property taxes and insurance. During the three and nine months ended September 30, 2014 and 2015, the Company recognized $4,500 and $13,500 in rental income. This is a commercial building being depreciated over thirty-nine (39) years. Depreciation accrues at $179 per month. The Company recorded depreciation of $536 and $1,608 for the three and nine months ended September 30, 2015.
Operating Leases of Lessee Disclosure	Real Estate Leasehold Interest: On May 31, 2013, the Company completed the acquisition of a real property leasehold interest in approximately 63 acres with fifty (50) RV/residential lots located in Dunn County, North Dakota, (the "Halliday Project"). Total consideration for the leasehold interest was $619,250. The Company may place recreational vehicles, mobile homes, or construct cabins on the lots and offer them for rent or lease. For the three months ended September 30, 2015 and 2014, the Company recorded amortization of $5,161, respectively and had fourteen and seventeen lots leased with rental income of $15,910 and $6,680, respectively. For the nine months ended September 30, 2015 and 2014, the Company recorded amortization of $15,482 and $24,083, respectively and had twenty-four and seventeen lots leased and had rental income of $49,860 and $23,960, respectively.

Note 5 - Lines of Credit (Detai

Note 5 - Lines of Credit (Details) - USD ($)	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Details
Long-term Line of Credit	$ 229,887
Line of Credit Facility, Asset Restrictions	The Riverbank line requires that the CFC line may not be paid down lower than the amount owing to Riverbank at any time during the term of the loan. The line is payable on demand and is personally guaranteed by John R. and Wendy Coghlan, related parties of the Company.
Line of credit, affiliated company	$ 1,260,000	$ 1,280,000

Note 6 - Notes Payable (Details

Note 6 - Notes Payable (Details) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2013	Dec. 31, 2012
Details
Debt Instrument, Convertible, Beneficial Conversion Feature			$ 128,750
Note payable original debt amount		$ 62,699
Note payable, monthly payments	$ 832
Note payable, balance owing	$ 33,099

Note 7 - Series "B" Preferred37

Note 7 - Series "B" Preferred Stock (Details)	9 Months Ended
	Sep. 30, 2015shares
Details
Convertible Prefered Stock Converted to Other Securities	1,649,500
Stock Issued During Period, Shares, Conversion of Convertible Securities	4,123,750

Note 8- Related-party Transac38

Note 8- Related-party Transactions (Details)	6 Months Ended
	Jun. 30, 2015
Details
Description of related parties	Related parties are defined as Officers, Directors, and/or those Shareholders owning or controlling more than 5% of the common stock of GFI, or any entities that are owned or controlled by Officers, Directors, and/or those Shareholders owning or controlling more than 5% of the common stock of GFI.
Related parties and relationships	Coghlan Family Corporation, Coghlan, LLC and West 3773 Fifth, LLC are controlled by John R. Coghlan, a Company director, CFO and majority shareholder. Coghlan Family Corporation is owned 100% by Coghlan, LLC, which is owned by the Coghlan family members. John R. and Wendy Coghlan (husband and wife) collectively own 35.65% of Coghlan, LLC and are co-managers. West 3773 Fifth, LLC is owned 100% by John and Wendy Coghlan (husband and wife). Genesis Financial Corporation is a company which is owned 100% by Michael Kirk, who is a director and officer of Genesis Financial, Inc. Genesis Financial, Inc. provides accounting, office services and supplies, and office space for his services provided to Genesis Financial Corporation. The services are valued at $1,500 per month. Michael Lavigne is an officer and director of Placer Creek Mining Company. Mr. Lavigne is a director of Genesis Financial, Inc.
Related Party Transactions During the Period	John R. Coghlan, Officer and Director On June 30, 2015, John R. and Wendy Coghlan personally guaranteed our Riverbank line of credit. On April 30, 2014, John R Coghlan exercised his option for 250,000 shares of common stock at $0.20 per share or $50,000. There was no activity for the quarter ended September 30, 2015. Coghlan Family Corporation “CFC” There was no activity for the year ended December 31, 2014 and for the quarter ended September 30, 2015. Coghlan, LLC There was no activity for the years ended December 31, 2014 and for the quarter ended September 30, 2015. West 3773 Fifth, LLC As of September 30, 2015, the Company continued a month-to-month tenancy with 3773 West Fifth, LLC, a company owned and controlled by John and Wendy Coghlan. The monthly rent is $1,250. Genesis Finance Corporation “GFC” For the year ended December 31, 2014, GFC purchased $73,907 interest in five loans held for sale by the Company. The Company recognized a loss of $3,616 on the sale. There was no activity for the quarter ended September 30, 2015. Michael Lavigne, Director During the first quarter 2015, the Company converted the Placer Creek Mining Company loan of $150,000 to 300,000 shares of Digi Outdoor Media, Inc., the successor to Placer Creek Mining Company. During the year ended December 31, 2014, the Company loaned Placer Creek Mining Company $150,000.