Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2023 shares | |
Cover [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Entity Registrant Name | REDWOOD MORTGAGE INVESTORS IX |
Entity Central Index Key | 0001448038 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Shell Company | false |
Document Quarterly Report | true |
Document Transition Report | false |
Entity File Number | 000-55601 |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 26-3541068 |
Entity Address, Address Line One | 177 Bovet Road |
Entity Address, Address Line Two | Suite 520 |
Entity Address, City or Town | San Mateo |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 94402 |
City Area Code | 650 |
Local Phone Number | 365-5341 |
Entity Common Stock, Shares Outstanding | 0 |
Balance Sheets
Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash, in banks | $ 136 | $ 5,055 |
Loan payments in trust | 51 | 94 |
Loans held for sale | 500 | 0 |
Loans | ||
Principal | 68,235 | 72,533 |
Advances | 19 | 19 |
Accrued interest | 567 | 490 |
Prepaid interest | (188) | (254) |
Loan balances secured by deeds of trust | 68,633 | 72,788 |
Allowance for credit losses | (120) | (55) |
Loan balances secured by deeds of trust, net | 68,513 | 72,733 |
Debt issuance costs, net | 14 | 36 |
Prepaid expenses | 8 | 2 |
Promissory note from related mortgage fund (Note 3) | 2,800 | 0 |
Other receivable | 4 | 0 |
Total assets | 72,026 | 77,920 |
LIABILITIES AND MEMBERS’ CAPITAL | ||
Accounts payable and accrued liabilities | 81 | 109 |
Payable to related mortgage fund (Note 3) | 54 | 62 |
Payable to manager (Note 3) | 0 | 192 |
Line of credit | 5,957 | 9,900 |
Total liabilities | 6,092 | 10,263 |
Commitments and contingencies (Note 6) | ||
Members' and manager's capital, net | 68,888 | 70,767 |
Receivable from manager (formation loan) | (2,954) | (3,110) |
Members' and manager's capital, net of formation loan | 65,934 | 67,657 |
Total liabilities and members’ capital | $ 72,026 | $ 77,920 |
Statements of Income (Unaudited
Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue | ||||
Interest income | $ 1,673 | $ 1,815 | $ 5,035 | $ 4,972 |
Interest expense | (159) | (144) | (530) | (342) |
Net interest income | 1,514 | 1,671 | 4,505 | 4,630 |
Late fees | 7 | 16 | 18 | 33 |
Gain on sale, loans | 8 | 28 | 8 | 40 |
Total revenue, net | 1,529 | 1,715 | 4,531 | 4,703 |
Provision for credit losses | 0 | 0 | 0 | 0 |
Operations expense | ||||
Mortgage servicing fees to Redwood Mortgage Corp. | 44 | 49 | 135 | 146 |
Asset management fees to Redwood Mortgage Corp. | 127 | 138 | 382 | 414 |
Costs from Redwood Mortgage Corp., net (Note 3) | 98 | 103 | 267 | 269 |
Professional services | 340 | 175 | 885 | 569 |
Other | 2 | 11 | 8 | 26 |
Total operations expense | 611 | 476 | 1,677 | 1,424 |
Net income | 918 | 1,239 | 2,854 | 3,279 |
Members (99%) | 909 | 1,227 | 2,826 | 3,247 |
Manager (1%) | $ 9 | $ 12 | $ 28 | $ 32 |
Statements of Income (Parenthet
Statements of Income (Parenthetical) (Unaudited) - Redwood Mortgage Investors IX [Member] | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Members investment | 99% | 99% | 99% | 99% |
Manager investment | 1% | 1% | 1% | 1% |
Statement of Changes in Members
Statement of Changes in Members' and Manager's Capital (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Beginning balance | $ 67,657 | ||||
Net income | $ 918 | $ 1,239 | 2,854 | $ 3,279 | |
Partners Capital Account Organization And Offering Expenses Repaid | 11 | ||||
Ending balance | 65,934 | 65,934 | |||
RMC [Member] | |||||
Early withdrawal penalties | 0 | 0 | 1 | 3 | |
Members Capital [Member] | |||||
Beginning balance | 70,601 | 75,620 | 71,724 | 78,192 | |
Net income | 909 | 1,227 | 2,826 | 3,247 | |
Organization and offering expenses allocated | (63) | (70) | (193) | (214) | |
Ending balance | 69,620 | 74,275 | 69,620 | 74,275 | |
Members Capital [Member] | Value prior to CECL | |||||
Beginning balance | 71,730 | ||||
Members Capital [Member] | Adoption of CECL | |||||
Beginning balance | (6) | ||||
Members Capital [Member] | RMC [Member] | |||||
Partners Capital Account Organization And Offering Expenses Repaid | 0 | 0 | 0 | 0 | |
Members Capital [Member] | Earnings Distributed To Members [Member] | |||||
Partners capital accounts | (866) | (1,012) | (2,638) | (3,117) | |
Members Capital [Member] | Earnings Distributed Used In DRIP [Member] | |||||
Partners capital accounts | 356 | 485 | 1,169 | 1,518 | |
Members Capital [Member] | Members' Redemptions [Member] | |||||
Partners capital accounts | (1,317) | (1,975) | (3,268) | (5,351) | |
Managers Capital [Member] | |||||
Beginning balance | 81 | 82 | 81 | 82 | |
Net income | 9 | 12 | 28 | 32 | |
Organization and offering expenses allocated | 0 | 0 | 0 | 0 | |
Ending balance | 81 | 82 | 81 | 82 | |
Managers Capital [Member] | Value prior to CECL | |||||
Beginning balance | 82 | ||||
Managers Capital [Member] | Adoption of CECL | |||||
Beginning balance | (1) | ||||
Managers Capital [Member] | RMC [Member] | |||||
Partners Capital Account Organization And Offering Expenses Repaid | 0 | 0 | 0 | 0 | |
Managers Capital [Member] | Earnings Distributed To Members [Member] | |||||
Partners capital accounts | (9) | (12) | (28) | (32) | |
Managers Capital [Member] | Earnings Distributed Used In DRIP [Member] | |||||
Partners capital accounts | 0 | 0 | 0 | 0 | |
Managers Capital [Member] | Members' Redemptions [Member] | |||||
Partners capital accounts | 0 | 0 | 0 | 0 | |
Unallocated Organization and Offering Expenses [Member] | |||||
Beginning balance | (887) | (1,256) | (1,045) | (1,458) | |
Net income | 0 | 0 | 0 | 0 | |
Organization and offering expenses allocated | 63 | 70 | 193 | 214 | |
Partners Capital Account Organization And Offering Expenses Repaid | [1] | 39 | 87 | ||
Ending balance | (813) | (1,157) | (813) | (1,157) | |
Unallocated Organization and Offering Expenses [Member] | Value prior to CECL | |||||
Beginning balance | (1,045) | ||||
Unallocated Organization and Offering Expenses [Member] | Adoption of CECL | |||||
Beginning balance | 0 | ||||
Unallocated Organization and Offering Expenses [Member] | RMC [Member] | |||||
Partners Capital Account Organization And Offering Expenses Repaid | 11 | 29 | 39 | 87 | |
Unallocated Organization and Offering Expenses [Member] | Earnings Distributed To Members [Member] | |||||
Partners capital accounts | 0 | 0 | 0 | 0 | |
Unallocated Organization and Offering Expenses [Member] | Earnings Distributed Used In DRIP [Member] | |||||
Partners capital accounts | 0 | 0 | 0 | 0 | |
Unallocated Organization and Offering Expenses [Member] | Members' Redemptions [Member] | |||||
Partners capital accounts | 0 | 0 | 0 | 0 | |
Members' and Manager's Capital, Net [Member] | |||||
Beginning balance | 69,795 | 74,446 | 70,760 | 76,816 | |
Net income | 918 | 1,239 | 2,854 | 3,279 | |
Organization and offering expenses allocated | 0 | 0 | 0 | 0 | |
Ending balance | 68,888 | 73,200 | 68,888 | 73,200 | |
Members' and Manager's Capital, Net [Member] | Value prior to CECL | |||||
Beginning balance | 70,767 | ||||
Members' and Manager's Capital, Net [Member] | Adoption of CECL | |||||
Beginning balance | (7) | ||||
Members' and Manager's Capital, Net [Member] | RMC [Member] | |||||
Partners Capital Account Organization And Offering Expenses Repaid | 11 | 29 | 39 | 87 | |
Members' and Manager's Capital, Net [Member] | Earnings Distributed To Members [Member] | |||||
Partners capital accounts | (875) | (1,024) | (2,666) | (3,149) | |
Members' and Manager's Capital, Net [Member] | Earnings Distributed Used In DRIP [Member] | |||||
Partners capital accounts | 356 | 485 | 1,169 | 1,518 | |
Members' and Manager's Capital, Net [Member] | Members' Redemptions [Member] | |||||
Partners capital accounts | $ (1,317) | $ (1,975) | $ (3,268) | $ (5,351) | |
[1] RMC is obligated per the Operating Agreement to repay RMI IX for the amount of unallocated O&O expenses attributed to a member’s capital account if the member redeems prior to the 40 quarterly allocations. RMC estimated its future obligation to repay unallocated O&O expenses on scheduled redemptions as of September 30, 2023 , to be approximately $ 11 thousand. |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operations | ||
Interest income received | $ 4,948 | $ 4,494 |
Interest expense paid | (528) | (308) |
Late fees and other loan income | 60 | 51 |
Operations expense | (1,892) | (1,436) |
Total cash provided by operations | 2,588 | 2,801 |
Investing | ||
Loans funded | (22,983) | (20,998) |
Principal collected | 28,033 | 24,137 |
Loan transferred from related mortgage funds | (3,393) | (1,939) |
Loans transferred to related mortgage fund | 1,142 | 0 |
Proceeds from loans sold to non-affiliate, net | 1,011 | 4,529 |
Advances collected | 0 | (3) |
Promissory note funded to related party | (3,300) | (1,000) |
Promissory note repaid by related party | 500 | 1,000 |
Total cash provided by investing | 1,010 | 5,726 |
Distributions to members and manager | ||
Total distributions to members and manager | (4,767) | (6,979) |
Organization and offering expenses repaid by RMC, net | 38 | 87 |
Early withdrawal penalties | (1) | (3) |
Cash used in members' and manager's capital | (4,730) | (6,895) |
Line of credit | ||
Advances | 2,466 | 9,900 |
Repayments | (6,409) | (8,480) |
Debt issuance costs | 0 | (57) |
Cash (used in) provided by line of credit | (3,943) | 1,363 |
Formation loan collected | 156 | 226 |
Total cash used in financing | (8,517) | (5,306) |
Net (decrease) increase in cash | (4,919) | 3,221 |
Cash, beginning of period | 5,055 | 1,033 |
Cash, end of period | 136 | 4,254 |
Net income | 2,854 | 3,279 |
Adjustments to reconcile net income to net cash provided by operations | ||
Gain on sale, loans | (8) | (40) |
Amortization of debt issuance costs | 21 | 28 |
Change in operating assets and liabilities | ||
Loan payments in trust | 42 | 19 |
Accrued interest | (22) | (185) |
Prepaid interest | (65) | (294) |
Prepaid expenses | (6) | 11 |
Other receivable | 0 | (11) |
Receivable from related parties | 0 | (6) |
Accounts payable and accrued liabilities | (28) | 12 |
Payable to related parties | (200) | (12) |
Total adjustments | (266) | (478) |
Total cash provided by operations | 2,588 | 2,801 |
Earnings Distributed To Members [Member] | ||
Distributions to members and manager | ||
Total distributions to members and manager | (1,500) | (1,631) |
Members' Redemptions [Member] | ||
Distributions to members and manager | ||
Total distributions to members and manager | $ (3,267) | $ (5,348) |
Statements of Cash Flows (Paren
Statements of Cash Flows (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 20, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Non cash investing activity loans transferred to held for sale | $ 500 | ||
Gain on sale, loans | 8 | $ 40 | |
Subsequent Event | |||
Gain on sale, loans | $ 1 | ||
Earnings Distributed To Members [Member] | |||
Earnings distributed used in DRIP | $ 1,200 | $ 1,500 |
Organization and General
Organization and General | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Organization and General | NOTE 1 – ORGANIZATION AND GENERAL Redwood Mortgage Investors IX, LLC (“RMI IX” or “the company”) is a Delaware limited liability company formed in October 2008 to engage in business as a mortgage lender and investor by making and holding-for-investment mortgage loans secured by California real estate, primarily through first and second deeds of trust. The company is externally managed by Redwood Mortgage Corp. (“RMC” or “the manager”). RMC provides the personnel and services necessary for the company to conduct its business as the company has no employees of its own. The mortgage loans the company funds and invests in are arranged and generally are serviced by RMC. In the opinion of management of RMC, the accompanying unaudited financial statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly and accurately the financial information included therein. These unaudited financial statements should be read in conjunction with the audited financial statements included in the company’s Form 10-K for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (SEC). The results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the operating results to be expected for the full year. The rights, duties and powers of the members and manager of the company are governed by the Ninth Amended and Restated Limited Liability Company Operating Agreement of RMI IX (the “Operating Agreement”), as amended by the Second Amendment to the Operating Agreement, the Delaware Limited Liability Company Act and the California Revised Uniform Limited Liability Company Act. Members representing a majority of the outstanding units may, without the concurrence of the manager, vote to: (i) dissolve the company, (ii) amend the Operating Agreement, subject to certain limitations, (iii) approve or disapprove the sale of all or substantially all of the assets of the company or (iv) remove or replace one or all of the managers. Where there is only one manager, a majority in interest of the members is required to elect a new manager to continue the company business after a manager ceases to be a manager due to its withdrawal. The following is a summary of certain provisions of the Operating Agreement and is qualified in its entirety by the terms of the Operating Agreement. Members should refer to the Operating Agreement for complete disclosure of its provisions. The manager is solely responsible for managing the business and affairs of the company, subject to the voting rights of the members on specified matters. The manager acting alone has the power and authority to act for and bind the company. RMC is entitled to one percent ( 1 %) of the profits and losses of the company and to fees and reimbursements of qualifying costs as specified in the Operating Agreement. The company’s primary investment objectives are to: • yield a favorable rate of return from the company’s business of making and/or investing in loans; • preserve and protect the company’s capital by making and/or investing in loans secured by California real estate, preferably income-producing properties geographically situated in the San Francisco Bay Area and the coastal metropolitan regions of Southern California; and • generate and distribute cash flow from these mortgage lending and investing activities. Net income (or loss) is allocated among the members according to their respective capital accounts after one percent ( 1 %) of the net income (or loss) is allocated to the manager. The monthly results are subject to subsequent adjustment as a result of quarterly and year-end accounting and reporting. The company’s net income, cash available for distribution, and net-distribution rate fluctuate depending on: • loan origination volume and the balance of capital available to lend; • the current and future interest rates negotiated with borrowers; • line of credit advances, repayments and the interest rate thereon; • loan sales to unaffiliated third parties, and any gains received thereon; • the amount of fees and cost reimbursements to RMC; • the timing and amount of other operating expenses, including expenses for professional services; • the timing and amount of payments from RMC on the formation loan; and • fee and/or cost reimbursements waived, if any, from RMC. Federal and state income taxes are the obligation of the members, other than the annual California franchise tax and the California LLC gross receipts tax. The tax basis in the net assets of the company differs from book basis by the amount of the allowance for credit losses. The ongoing sources of funds for loans are the proceeds (net of redemption of members’ capital and operating expenses) from: • loan payoffs; • borrowers’ monthly principal and interest payments; • line of credit advances; • loan sales to unaffiliated third parties; • payments from RMC on the outstanding balance of the formation loan; and • sale of units to members participating in the dividend reinvestment plan. The company intends to hold until maturity the loans in which it invests and does not presently intend to invest in mortgage loans primarily for the purpose of reselling such loans in the ordinary course of business; however, the company may sell mortgage loans (or fractional interests therein) when the manager determines that it appears to be advantageous for the company to do so, based upon then current interest rates, the length of time that the loan has been held by the company, the company’s credit risk and concentration risk and the overall investment objectives of the company. Loans sold to third parties may be sold for par, at a premium or, in the case of non-performing or under performing loans, at a discount. Company loans may be sold to third parties or to the manager or its related mortgage funds; however, any loan sold to the manager or a related mortgage fund will be sold for a purchase price equal to the greater of (i) the par value of the loan or (ii) the fair market value of the loan. The manager will not receive commissions or broker fees with respect to loan sales conducted for the company; however, selling loans will increase members’ capital available for investing in new loans for which the manager will earn brokerage fees and other forms of compensation. The company’s business is neither dependent on any one, nor concentrated with a few, major borrowers, investors, or lenders. Distribution policy/Distribution reinvestment plan (DRIP) Cash available for distribution at the end of each calendar month is allocated ninety-nine percent (99%) to the members and one percent (1%) to the manager . Cash available for distribution means cash flow from operations (excluding repayments for loan principal and other capital transaction proceeds) less amounts set aside for creation or restoration of reserves. The manager may withhold from cash otherwise distributable to the members with respect to any period the respective amounts of organization and offering expenses (“O&O expenses”) allocated to the members’ accounts for the applicable period pursuant to the company’s reimbursement to RMC and allocation to members’ accounts of O&O expenses. The amount otherwise distributable, less the respective amounts of O&O expenses allocated to members, is the net distribution. Pursuant to the terms of the Operating Agreement, cash available for distribution to the members is allocated among the members in proportion to their percentage interests (except with respect to differences in the amounts of O&O expenses allocated to the respective members during the applicable period) and in proportion to the number of days during the applicable month that they owned such percentage interests. (See Note 3 (Manager and Other Related Parties) to the financial statements for a detailed discussion on the allocation of O&O expenses to members’ accounts.) Cash available for distributions allocable to members who have elected to receive distributions is disbursed at the end of each calendar month. The manager’s allocable share of cash available for distribution is also distributed not more frequently than cash distributions to members. The distribution reinvestment plan (“DRIP”) provision of the Operating Agreement permits members to elect to have all or a portion of their monthly distributions reinvested in the purchase of additional units. Cash available for distributions allocable to members who have elected to participate in the DRIP is distributed and reinvested in units at each month end. In May 2019, the company filed a Registration Statement on Form S-3 with the SEC (SEC File No. 333-231333) that went effective May 9, 2019, to offer up to 15,000,000 units ($ 15 million) to members of record as of April 30, 2019 who had previously elected to participate in the DRIP or who later provide written notice to the manager electing to participate in the DRIP, in those states in which approval has been obtained. As of September 30, 2023, the aggregate gross proceeds from sales of units to members under the company's DRIP pursuant to the May 2019 Form S-3 Registration Statement is approximately $ 9.3 million. Liquidity and unit redemption program There are substantial restrictions on transferability of units, and there is no established public trading and/or secondary market for the units and none is expected to develop. In order to provide liquidity to members, the Operating Agreement includes a unit redemption program, whereby a member may redeem all or part of their units, subject to certain limitations. The price paid for redeemed units is based on the lesser of the purchase price paid by the redeeming member or the member’s capital account balance as of the date of each redemption payment. Redemption value – for other than DRIP units – is calculated based on the period from date of purchase as follows: after one year 92 % of the purchase price or of the capital balance, whichever is less; after two years 94 %; after three years 96 %; after four years 98 %; and after five years 100 %. The company redeems units quarterly, subject to certain limitations as provided for in the Operating Agreement. The maximum number of units which may be redeemed per quarter per individual member shall not exceed the greater of (i) 100 thousand units, or (ii) 25 % of the member’s total outstanding units. For redemption requests requiring more than one quarter to fully redeem, the percentage discount amount if any, that applies when the redemption payments begin continues to apply throughout the redemption period and applies to all units covered by such redemption request regardless of when the final redemption payment is made. The company has not established a cash reserve from which to fund redemptions. The company’s capacity to redeem units upon request is limited by the availability of cash and the company’s cash flow. The manager also has the right, in its sole discretion, at any time, to reject any request for redemption, or to suspend or terminate the acceptance of new redemption requests without prior notice, or to terminate, suspend or amend the unit redemption program upon 30-day notice. Pursuant to the Operating Agreement, the company will not, in any calendar year, redeem more than five percent ( 5 %) of the weighted average number of units outstanding during the twelve-month period immediately prior to the date of the redemption; however, the manager may, but is not required to, waive this limitation if it deems it in the best interest of the company. In the event unit withdrawal requests exceed 5 % in any calendar year, and are held by the company, units will be redeemed in the order of priority provided in the Operating Agreement. The manager may, in its sole discretion, waive any applicable holding periods or penalties in the event of the death of a member or other exigent circumstances or if the manager believes such wavier is in the best interests of the company. For members’ capital redemption requests received in 2023 and ongoing, the manager intends to strictly adhere to the quarterly and annual members’ capital redemption limitations as described in the company’s Operating Agreement. The manager has no present intention to exercise its discretionary power to waive or modify the enforcement of the annual redemptions limitation in the foreseeable future. Manager’s interest If a manager is removed, withdrawn or terminated, the company will pay to the manager all amounts then accrued and due to the manager. Additionally, the company will terminate the manager’s interest in the company’s profits, losses, distributions and capital by payment of an amount in cash equal to the then-present fair value of such interest. Term of the company The term of the company will terminate on December 31, 2038 unless: (i) the term is further extended by RMC with the affirmative consent of a majority interest of the members; or (ii) the company is earlier terminated pursuant to the Operating Agreement or by operation of law. The initial term of RMI IX was extended through December 31, 2038 by an affirmative ( 53 %) vote of the member units outstanding, following which RMC's board of directors approved the adoption of the Second Amendment, dated March 11, 2022, to the Ninth Amended and Restated Limited Liability Company Operating Agreement of RMI IX. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Management estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates involve a significant level of uncertainty and have had or are reasonably likely to have a material impact on the company’s financial condition or results of operations. Such estimates relate principally to the determination of the allowance for credit losses ( including the fair value of the underlying collateral), and the valuation of real estate owned (“REO” ) (RMI IX has not acquired REO since it commenced operations in 2009). Actual results could differ materially from these estimates. Fair value estimates The fair value of real property (as to loan collateral and REO) is determined by exercise of judgment based on RMC’s management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. Appraisals of commercial real property generally present three approaches to estimating value: 1) market-comparables or sales approach; 2) cost to replace; and 3) capitalized cash flows or income approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, including the consideration of adjustments made for any attributes specific to the real estate. Management has the requisite familiarity with the markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, and lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value, and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Fair values of assets and liabilities are determined based on the fair-value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly in active markets and quoted prices for identical assets or liabilities that are not active, and inputs other than quoted prices that are observable, or inputs derived from or corroborated by market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the company’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the company’s own data. Cash in banks Certain of the company’s cash balances in banks exceed federally insured limits of $ 250 thousand. The bank or banks in which funds are deposited are reviewed periodically for their general creditworthiness/investment grade credit rating. (See Note 5 (Line of Credit) for compensating balance arrangements). Loans and interest income Loans are carried at amortized cost which is generally equal to the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the company’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums and attorney fees. Advances generally are stated at the amounts paid out on the borrower’s behalf and any accrued interest on amounts paid out, until repaid by the borrower. For performing loans, interest is accrued daily on the principal plus advances, if any. In the normal course of the company’s operating activities, performing loans that are maturing or have matured may be renewed at then current market rates of interest and terms for new loans. (These loan extensions are not reported as new loans for financial reporting purposes.) The company may fund a specific loan net of an interest reserve (one to two years) to insure timely interest payments at the inception of the loan. Any interest reserve is amortized over the period that the amount is prepaid. In the event of an early loan payoff, any unapplied interest reserves would be first applied to any accrued but unpaid interest and then as a reduction to the principal. Loans with a payment in arrears continue to recognize interest income as long as the loan is in the process of collection with the borrower and is considered to be well-secured. Loans are generally placed on non-accrual status if management determines that the primary source of repayment will come from the foreclosure and subsequent sale of the collateral securing the loan (i.e., a notice of sale is filed and/or when the borrower files for bankruptcy) or when the loan is no longer considered well-secured (i.e., the LTV for the loan based on the estimated net realizable value of the collateral and the total principal, advances and accrued interest (at the note rate) is at or greater than eighty percent (80%), seventy-five percent (75%) for lands outside of metropolitan areas). When a loan is placed on non-accrual status, the accrual of interest is discontinued – beginning with the then current month - for accounting purposes only; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent loan payments are cured and the loan becomes current in accordance with the terms of the loan agreement . In periods prior to January 1, 2023, loans were placed on non-accrual status if 180 days delinquent or earlier if management determined that the primary source of repayment would come from the foreclosure and subsequent sale of the collateral securing the loan (which usually occurs when a notice of sale is filed) or when the loan was no longer considered well-secured. Payments on loans are applied in the following order: accrued interest, advances, and lastly to principal. Late fees are recognized in the period received. Pursuant to California regulatory requirements, borrower payments are deposited into a trust account established by RMC with an independent bank (and are presented on the balance sheet as “Loan payments in trust”). Funds are disbursed to the company as collected which can range from same day for wire transfers and up to two weeks after deposit for checks. The company funds loans with the intent to hold the loans until maturity. From time to time the company may sell certain loans when the manager determines it to be in the best interest of the company. Loans are classified as held-for-sale once a decision has been made to sell loans and the loans held-for-sale have been identified. Loans classified as held-for-sale are carried at the lower of cost or fair value. Allowance for credit losses Loan balances (i.e., the sum of the unpaid principal, advances and accrued interest) are analyzed on a periodic basis for ultimate recoverability. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the dollar amount by which the net realizable value (i.e., fair value less the cost to sell) of the collateral, net of any senior liens exceeds the loan balance. For a loan that is deemed collateral dependent for repayment, a provision for credit losses is recorded to adjust the allowance for credit losses to an amount such that the net carrying amount (unpaid principal, advances plus interest accrued, i.e., interest owed net of foregone interest for loans in non-accrual status) is reduced to the lower of the loan balance or the estimated fair value of the related collateral, net of any senior debt and claims and costs to sell. As of January 1, 2023, the company adopted Accounting Standards Codification 326, Financial Instruments – Credit Losses using the modified retrospective approach, which requires a lifetime, current expected credit loss (CECL) measurement objective for the recognition of credit losses at the time a loan is originated or acquired. The allowance for credit losses is adjusted each period for changes in expected lifetime credit losses for loans and accrued interest. The determination of the amount of the allowance for credit losses considers historical loss experience, current fair value of collateral and the resultant LTV, current real estate and financial markets, as well as reasonable and supportable forecasts about future economic scenarios. The forward-looking estimates consider the likelihood that any combination of events would adversely impact economic conditions and real estate markets in California such that the substantial protective equity existing for the loans would no longer be sufficient to collect the recorded amounts of principal, advances and accrued interest due on the loan. The limited number of loans and the short terms for which the loans are written enable a loan-by-loan analysis to determine the risk of loss. The primary determinate in the analysis is the LTV, and consideration of lien position of deed of trust. The analysis also considered the vintage in which the secured loans originated. The ultimate collectability of the amounts owed is reliant on the estimation of the current fair value of the real property collateral and the time to maturity. Further there is no evidence, nor any indication in the analysis, that the ultimate collectability of the amounts owed fluctuates with the time on file or vintage. Such considerations are consistent with the ‘no-credit-losses’ experience of the company over the preceding 5+ years. The company charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. Any amounts collected after a charge off is deemed a recovery. If the loan goes to foreclosure, an updated appraisal is ordered and the recorded investment in the loan is adjusted to the net realizable value of the real estate to be acquired. Prior to the adoption of the CECL accounting model, if a loan modification was agreed to and was to result in an economic concession to the borrower (i.e., a significant delay or reduction in cash flows compared to the original note), the modification would have been deemed to be a troubled debt restructuring (“TDR”). The Company did not have any TDR’s for the year ended December 31, 2022 . Real estate owned (“REO”) Real estate owned, or REO, is property acquired in full or partial settlement of loan obligations generally through foreclosure and is recorded at acquisition at the property’s fair value less estimated costs to sell. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for credit losses and any subsequent valuation reserves. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. REO is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expenses. Any recovery in the fair value subsequent to such a write down is recorded and is not to exceed the value recorded at acquisition. Recognition of gains or losses on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. Debt issuance costs Debt issuance costs are the fees and commissions incurred in the course of obtaining a line of credit for services from banks, law firms and other professionals and are amortized on a straight-line basis, which approximates the interest method, as interest expense over the term of the line of credit. Reclassification Certain amounts on the balance sheet as of December 31, 2022 have been reclassified to conform to the current period presentation. The payable to manager has been disclosed separately on the balance sheets from the payable to mortgage fund. There was no change in total liabilities. Recently issued accounting pronouncements None at September 30, 2023 are applicable to the company. |
Manager and Other Related Parti
Manager and Other Related Parties | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Manager and Other Related Parties | NOTE 3 – MANAGER AND OTHER RELATED PARTIES The Operating Agreement provides for compensation to the manager and for the reimbursement of qualifying costs as detailed below. RMC is entitled to 1 % of the net income or loss of the company. RMC – at its sole discretion – collected less than the maximum allowable reimbursement of qualifying costs attributable to RMI IX (Costs from RMC on the Statements of Income), which increased the net income, cash available for distribution, and the net-distribution rate. The cost-reimbursement waivers in the three and nine months ended September 30, 2023 and 2022, by RMC were not made for the purpose of providing RMI IX with sufficient funds to satisfy any required level of distributions, as the Operating Agreement has no such required level of distributions, nor to meet withdrawal requests. Mortgage servicing fees The manager is entitled to receive a servicing fee of up to one-quarter of one percent ( 0.25 %) annually of secured loan principal. The mortgage servicing fees are accrued monthly on all loans. Remittance to RMC is made monthly unless the loan has been assigned a specific loss reserve, at which point remittance is deferred until the specific loss reserve is no longer required, or the property securing the loan has been acquired by the company. Asset Management Fees The manager is entitled to receive a monthly asset management fee for managing RMI IX’s assets, liabilities, and operations in an amount up to three-quarters of one percent ( 0.75 %) annually of the portion of the capital originally committed to investment in mortgages, not including leverage, and including up to two percent ( 2 %) of working capital reserves. Costs from RMC The manager is entitled to request reimbursement for operations expense incurred on behalf of RMI IX, including without limitation, RMC’s personnel and non-personnel costs incurred for qualifying business activities, including investor services, accounting, tax and data processing, postage and out-of-pocket general and administration expenses. Qualifying personnel/compensation costs and consulting fees are tracked by business activity, and then costs of qualifying activities are allocated to RMI IX pro-rata based on the percentage of RMI IX’s members’ capital to the total capital of all related mortgage funds managed by RMC. Certain other non-personnel, qualifying costs such as postage and out-of-pocket general and administrative expenses can be tracked by RMC as specifically attributable to RMI IX; other non-personnel, qualifying costs (e.g., RMC’s accounting and audit fees, legal fees and expenses, occupancy, and insurance premiums) are allocated pro-rata based on the percentage of RMI IX’s members’ capital to total capital of the related mortgage funds managed by RMC. The amount of qualifying costs attributable to RMI IX incurred by RMC was approximately $ 188 thousand and $ 235 thousand in the three months ended September 30, 2023 and 2022 , respectively, and $ 606 thousand and $ 605 thousand in the nine months ended September 30, 2023 and 2022 , respectively. The reimbursement of costs waived by RMC was approximately $ 90 thousand and $ 132 thousand in the three months ended September 30, 2023 and 2022 , respectively, and $ 339 thousand and $ 336 thousand in the nine months ended September 30, 2023 and 2022 , respectively. Total costs reimbursed to RMC by RMI IX were approximately $ 98 thousand and $ 103 thousand in the three months ended September 30, 2023 and 2022 , respectively, and $ 267 thousand and $ 269 thousand in the nine months ended September 30, 2023 and 2022, respectively. Loan administrative fees The manager is entitled to receive a loan administrative fee of up to one percent ( 1 %) of the principal amount of each new loan funded or acquired for services rendered in connection with the selection and underwriting of loans payable upon the closing or acquisition of each loan. Since August 2015, RMC, at its sole discretion, has waived loan administrative fees on new originations. The total amount of loan administrative fees waived was approximately $ 56 thousand and $ 88 thousand in the three months ended September 30, 2023 and 2022 , respectively, and $ 236 thousand and $ 210 thousand in the nine months ended September 30, 2023 and 2022, respectively. Commissions and fees paid by the borrowers to RMC - Brokerage commissions, loan originations For fees in connection with the review, selection, evaluation and negotiation of loans (including extensions), RMC may collect a loan brokerage commission that is expected to range from approximately 1.5 % to 5 % of the principal amount of each loan made during the year. Total loan brokerage commissions are limited to an amount not to exceed 4 % of the total company assets per year. The loan brokerage commissions are paid by the borrowers to RMC, and thus are not an expense of the company. Loan brokerage commissions paid by the borrowers to RMC approximated $ 111 thousand and $ 149 thousand for the three months ended September 30, 2023 and 2022 , respectively, and $ 579 thousand and $ 410 thousand for the nine months ended September 30, 2023 and 2022, respectively. - Other fees RMC receives fees for processing, notary, document preparation, credit investigation, reconveyance and other mortgage related fees. The amounts received are customary for comparable services in the geographical area where the property securing the loan is located, payable solely by the borrower and not by the company. Formation loan Commissions for unit sales to new members paid to broker-dealers (“B/D sales commissions”) and premiums paid to certain investors upon the purchase of units were paid by RMC and were not paid directly by RMI IX out of unit-sales proceeds. Instead, RMI IX advanced to RMC amounts sufficient to pay the B/D sales commissions and premiums to be paid to investors. Such advances in total were not to exceed seven percent ( 7 %) of offering proceeds. The receivable arising from the advances is unsecured and non-interest bearing and is referred to as the “formation loan.” When offerings of units to new members ended on April 30, 2019, such advances totaled $ 5.6 million, of which $ 3.0 million remains outstanding at September 30, 2023. Formation loan transactions for the nine months ended September 30 are presented in the following table ($ in thousands). 2023 2022 Balance, January 1 $ 3,110 $ 3,388 Payments received from RMC ( 156 ) ( 226 ) Balance, September 30 $ 2,954 $ 3,162 In March 2022, the Operating Agreement was amended to extend the term for the repayment of the formation loan to December 2038 to coincide with the extended term of the company. In accordance with the amended Operating Agreement, the formation loan is repayable by RMC in annual installments of approximately $ 208 thousand which may be paid by RMC either in full on December 31st of each calendar year during the term of the company (each, an “Annual Payment Date”) or in four equal quarterly installments beginning on the Annual Payment Date and continuing thereafter on the last day of each calendar quarter in the following year. Any amount of the formation loan balance remaining unpaid on the last day of the company term is payable in full on that date. The primary source of repayment of the formation loan are the loan brokerage commissions earned by RMC. The formation loan is forgiven if the manager is removed and RMC is no longer receiving payments for services rendered. As such, the formation loan is presented as contra equity. Redemptions of members’ capital Redemptions of members’ capital for the three and nine months ended September 30 are presented in the following table ($ in thousands). Three Months Ended September 30, Nine Months Ended September 30, Redemptions 2023 2022 2023 2022 Without penalty $ 1,314 $ 1,975 $ 3,244 $ 5,240 With penalty 2 — 24 111 Total $ 1,316 $ 1,975 $ 3,268 $ 5,351 Early withdrawal penalties $ — $ — $ 1 $ 3 For members’ capital redemption requests received in 2023 and ongoing, the manager intends to adhere to the quarterly and annual members’ capital redemption limitations as described in the company’s Operating Agreement. Pursuant to the Operating Agreement, unless waived by the manager, the company will not redeem in any calendar year more than five percent (5.0%) and in any calendar quarter one and one-quarter percent (1.25%) of the weighted average number of units outstanding in the twelve (12) month period immediately prior to the date of redemption. The manager has no present intention to exercise its discretionary power to waive or modify the enforcement of the redemptions limitation in the foreseeable future. Eligible redemption requests at September 30, 2023 approximated $ 10.1 million, of which $ 5.3 million was attributable to scheduled but unpaid redemption requests from periods prior to June 30, 2023 due to the capital redemption limitations described above, and $ 4.8 million was from new redemption requests received in the quarter ended June 30, 2023. The September 30, 2023 redemption was limited to $ 902 thousand. Accordingly, the eligible redemption requests were honored in the following order of priority: • first, to redemptions upon the death of a member, which totaled $ 35 thousand at September 30, 2023; and • next, to all other eligible redemption requests of approximately $ 864 thousand or 9.2 percent ( 9.2 %) of eligible redemption requests scheduled, honored on a pro rata basis. Of the $ 902 thousand limit on capital redemptions, $ 899 thousand was actually paid. In addition, the manager, at its sole discretion, made 11 additional payments totaling $ 342 thousand in members’ capital redemptions, to correct short payments in prior quarters. Therefore, eligible but unpaid redemptions at September 30, 2023 were $ 8.8 million. New redemption requests received for the quarter ended September 30, 2023 , which are eligible to be paid beginning December 31, 2023 were $ 3.2 million. Eligible redemption requests at December 31, 2023 approximates $ 12.0 million. Members’ capital redemption requests received in 2022, but not fully paid by December 31, 2022, were approximately $ 232 thousand, all of which were paid by September 2023. Organization and offering expenses The manager is required to be reimbursed for O&O expenses incurred in connection with the organization of the company and the offering of the units of membership interest including, without limitation, attorneys’ fees, accounting fees, printing costs and other selling expenses (other than sales commissions) in a total amount not exceeding 4.5 % of the original purchase price of all units (other than DRIP units) sold in all offerings (hereafter, the “maximum O&O expenses”). RMC paid the O&O expenses in excess of the maximum O&O expenses. The O&O expenses incurred by RMI IX are allocated to the members as follows – for each of forty (40) calendar quarters or portion thereof after December 31, 2015 that a member holds units (other than DRIP units), the O&O expenses incurred by RMI IX are allocated to and debited from that member’s capital account in an annual amount equal to 0.45 % of the member’s original purchase price for those units, in equal quarterly installments of 0.1125 % each commencing with the later of the first calendar quarter of 2016 or the first full calendar quarter after a member’s purchase of units, and continuing through 40 calendar quarters or the quarter in which such units are redeemed. Unallocated O&O transactions for the nine months ended September 30 are summarized in the following table ($ in thousands). 2023 2022 Balance, January 1 $ 1,045 $ 1,458 O&O expenses allocated ( 193 ) ( 214 ) O&O expenses paid by RMC (1) ( 39 ) ( 87 ) Balance, September 30 $ 813 $ 1,157 (1) RMC is obligated per the Operating Agreement to repay RMI IX for the amount of unallocated O&O expenses attributed to a member’s capital account if the member redeems prior to the 40 quarterly allocations. RMC estimated its future obligation to repay unallocated O&O expenses on scheduled redemptions as of September 30, 2023 , to be approximately $ 11 thousand. Other related party transactions - Payable to/receivable from related mortgage funds and manager From time to time, in the normal course of business operations, the company may have payables to and/or receivables from related parties. At September 30, 2023 , the payable to related parties balance of approximately $ 53 thousand consisted exclusively of accounts payable to the manager. There were no receivables from related parties at September 30, 2023. These related party transactions were settled in October 2023. At December 31, 2022 , the payable to related party balance of approximately $ 254 thousand consisted of accounts payable of approximately $ 192 thousand to the manager and $ 62 thousand to a related mortgage fund. These related party transactions were settled in March 2023. - Loan transactions with related mortgage funds In the ordinary course of business, performing loans may be transferred by executed assignment, in-part or in-full, between the RMC managed mortgage funds at par value, which approximates market value. In the nine months ended September 30, 2023 , related mortgage funds transferred to RMI IX four performing loans with aggregate principal of approximately $ 3.4 million in-full at par value, which approximates fair value. RMI IX paid cash for the loans and the related mortgage funds have no continuing obligation or involvement with the loans. In the nine months ended September 30, 2023 , RMI IX transferred to a related mortgage fund three performing loans with aggregate principal of approximately $ 1.1 million in-full at par value, which approximates fair value. The related mortgage fund paid cash for the loans and RMI IX has no continuing obligation or involvement with the loans. In the nine months ended September 30, 2022 , a related mortgage fund transferred to RMI IX two performing loans with aggregate principal of approximately $ 1.9 million in-full at par value, which approximates fair value. RMI IX paid cash for the loan and the related mortgage fund has no continuing obligation or involvement with the loan. No loans were transferred to related mortgage funds in the nine months ended September 30, 2022. - Promissory note from related mortgage fund On June 29, 2023, RMI IX lent $ 3.3 million to a related mortgage fund secured by the net cash flow payable on three mortgage loans totaling approximately $ 7.5 million, which had contractual maturities before October 1, 2023. The promissory note balance at September 30, 2023 was $ 2.8 million and matures December 29, 2023 (extended from the original maturity date of October 1, 2023). Interest on the loan accrues at 8.75 % per annum through a term ending on the earlier of (i) the payoff of pledged mortgage loans; and (ii) October 1, 2023. The promissory note receivable from the related mortgage fund is secured by all proceeds payable to the related mortgage fund upon the payoff or repayment of the pledged mortgage loans, net of any amounts outstanding on a line of credit secured by the pledged mortgage loans. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans | NOTE 4 – LOANS Loans generally are funded at a fixed interest rate with a loan term of up to five years. Loans acquired between related mortgage funds are generally done so within the first six months of origination and are purchased at par value, which approximates fair value. See Note 3 (Manager and Other Related Parties) for a description of loans transferred by executed assignments between the related mortgage funds. The company’s loans are secured by real estate in coastal California metropolitan areas. The portfolio segments are first and second trust deeds mortgages and the key credit quality indicator is the LTV. First mortgages are predominant, but second lien deeds of trust are not infrequent nor insignificant. First-mortgage loans comprised 81 % of the portfolio at September 30, 2023 ( 82 % at December 31, 2022). Secured loans unpaid principal balance (principal) Secured loan transactions for the three and nine months ended September 30, 2023 are summarized in the following table ($ in thousands). Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Total First Trust Deeds Second Trust Deeds Total First Trust Deeds Second Trust Deeds Principal, beginning of period (1) $ 69,976 $ 57,063 $ 12,913 $ 72,533 $ 59,250 $ 13,283 Loans funded 4,980 4,095 885 22,983 18,598 4,385 Principal collected (2) ( 5,936 ) ( 4,522 ) ( 1,414 ) ( 28,032 ) ( 20,961 ) ( 7,071 ) Loans transferred to held for sale (3) ( 500 ) ( 500 ) — ( 1,500 ) ( 1,500 ) — Loans transferred from related mortgage funds — — — 3,393 1,461 1,932 Loans transferred to related mortgage fund ( 285 ) ( 285 ) — ( 1,142 ) ( 997 ) ( 145 ) Recategorized (4) — ( 599 ) 599 — ( 599 ) 599 Principal, end of period $ 68,235 $ 55,252 $ 12,983 $ 68,235 $ 55,252 $ 12,983 (1) On January 1, 2023, one loan with a principal balance of $ 247 thousand was re-categorized as a second trust deed. Prior to January 1, 2023 the loan was categorized as a first trust deed. (2) Includes principal collected and held in trust at September 30, 2023 of approximately $ 2 thousand offset by principal collected and held in trust at December 31, 2022 of approximately $ 3 thousand which was disbursed to the company in January 2023 . (3) In July 2023, one loan with principal of $ 1.0 million was sold to an unaffiliated third party. The company recognized a gain of approximately $ 8 thousand net of commissions payable to third parties. In October 2023, one loan with principal of $ 500 thousand was sold to an unaffiliated third party. The company recognized a gain of approximately $ 1 thousand. (4) On July 1, 2023, one loan with a principal balance of $ 599 thousand was re-categorized as a second trust deed. Prior to July 1, 2023 that loan had been categorized as a first trust deed. During the three and nine months ended September 30, 2023 , the company extended one and six maturing loans with aggregated principal of approximately $ 650 thousand and $ 14.4 million, respectively, which are not included in the transactions shown in the table above. The loans have an average extension period of approximately 26 months and 12 months during the three and nine months ended September 30, 2023, respectively, and were current and deemed well collateralized (i.e., the current LTV for the collateral was within lending guidelines as discussed in Note 2 to these financial statements). Interest rates charged to borrowers may be adjusted in conjunction with the loan extensions to reflect current market conditions (in 2023, one extension included rate increases). These loan extensions are made not to forestall collection of a distressed nor an insufficiently collateralized debt from a borrower experiencing financial difficulties, but rather to provide – for an extension fee paid to RMC by the borrower – the additional time and flexibility to pursue opportunities to optimize the performance of the borrower’s real-property investment. These opportunities may include expected lower-than-current long-term interest rates at the completion of the extension term and/or expected higher than current rents or sale prices, resulting from either improved market conditions or improved physical condition and/or financial performance of the property. As of September 30, 2023 , there were no commitments to lend outstanding and no construction or rehabilitation loans outstanding. Loan characteristics Secured loans had the characteristics presented in the following table ($ in thousands). September 30, December 31, 2023 2022 Number of secured loans 49 45 First trust deeds 34 30 Second trust deeds 15 15 Secured loans – principal $ 68,235 $ 72,533 First trust deeds $ 55,252 $ 59,497 Second trust deeds $ 12,983 $ 13,036 Secured loans – lowest interest rate (fixed) 7.3 % 6.8 % Secured loans – highest interest rate (fixed) 11.8 % 11.0 % Average secured loan – principal $ 1,393 $ 1,612 Average principal as percent of total principal 2.0 % 2.2 % Average principal as percent of members’ and manager’s capital, net 2.0 % 2.3 % Average principal as percent of total assets 1.9 % 2.1 % Largest secured loan – principal $ 6,200 $ 6,735 Largest principal as percent of total principal 9.1 % 9.3 % Largest principal as percent of members’ and manager’s capital, net 9.0 % 9.5 % Largest principal as percent of total assets 8.6 % 8.6 % Smallest secured loan – principal $ 185 $ 146 Smallest principal as percent of total principal 0.3 % 0.2 % Smallest principal as percent of members’ and manager’s capital, net 0.3 % 0.2 % Smallest principal as percent of total assets 0.3 % 0.2 % Number of California counties where security is located 16 11 Largest percentage of principal in one California county 19.7 % 26.3 % Number of secured loans with prepaid interest 3 1 Prepaid interest $ 189 $ 254 As of September 30, 2023, 29 loans with principal of approximately $ 48.7 million provide for monthly payments of interest only, with the principal due at maturity, and 20 loans with principal of approximately $ 19.5 million (representing 29 % of the aggregate principal of the company’s loan portfolio) provide for monthly payments of principal and interest, typically calculated on a 30 -year amortization, with the remaining principal due at maturity. As of September 30, 2023, there were 15 loans in second lien position. The aggregate principal of these loans was approximately $ 13.0 million and the weighted average LTV at loan closing was 56.93 % . All but two loans in second lien position were performing as of September 30, 2023 . Of the loans with payments in arrears, one loan has principal outstanding of $ 760 thousand (LTV 69.88 %), is secured by an industrial property located in Santa Clara county, bears an interest rate of 8.875 % and matured on August 1, 2023 . The other loan with payment in arrears has principal outstanding of $ 596 thousand (LTV 55.23 %), is secured by a single family property located in San Diego county, bears an interest rate of 9.250 %, matures on October 1, 2027 and had one payment overdue as of September 30, 2023 which was made on October 19, 2023. As of September 30, 2023, the company's largest loan with principal of $ 6.2 million (LTV 47.88%) is secured by an industrial property located in San Diego County, bears an interest rate of 10.500 % and matures on February 1, 2024 . Property type Secured loans summarized by property type are presented in the following table ($ in thousands). September 30, 2023 December 31, 2022 Loans Principal Percent Loans Principal Percent Single family (5) 22 $ 20,922 31 % 21 $ 25,360 35 % Commercial 19 32,976 48 17 34,386 47 Multi-family 6 8,657 13 6 11,287 16 Land 2 5,680 8 1 1,500 2 Total principal, secured loans 49 $ 68,235 100 % 45 $ 72,533 100 % (5) Single family includes one to four unit residential buildings, condominium units, townhouses and condominium complexes. At September 30, 2023, single family consists of five loans with aggregate principal of approximately $ 4.6 million that are owner occupied and 17 loans with principal of approximately $ 16.3 million that are non-owner occupied. At December 31, 2022 , single family property type consisted of 10 loans with principal of approximately $ 11.6 million that are owner occupied and 11 loans with principal of approximately $ 13.8 million that are non-owner occupied. Lien position/LTV at origination At funding, secured loans had the lien positions presented in the following table ($ in thousands). September 30, 2023 December 31, 2022 Loans Principal Percent Loans Principal Percent First trust deeds 34 $ 55,252 81 % 30 $ 59,497 82 % Second trust deeds 15 12,983 19 15 13,036 18 Total principal, secured loans 49 68,235 100 % 45 72,533 100 % Liens due other lenders at loan closing 29,032 36,544 Total debt $ 97,267 $ 109,077 Appraised property value at loan closing $ 184,320 $ 195,261 LTV (weighted average) at loan closing 55.9 % 58.3 % Distribution of secured loans - principal by California counties The distribution of secured loans within California by counties is presented in the following table ($ in thousands). September 30, 2023 December 31, 2022 Principal Percent Principal Percent San Francisco Bay Area (6) San Francisco $ 13,430 19.7 % $ 13,801 19.0 % San Mateo 11,029 16.1 13,054 18.0 Santa Clara 12,393 18.2 19,042 26.3 Alameda 5,516 8.1 6,062 8.4 Contra Costa — 0.0 1,000 1.4 Napa 640 0.9 644 0.9 Solano 185 0.3 — 0.0 Marin 400 0.6 — 0.0 43,593 63.9 53,603 74.0 Other Northern California Placer 1,968 2.9 1,500 2.1 Tehama 405 0.6 405 0.5 San Joaquin 750 1.1 — 0.0 Butte 1,202 1.7 — 0.0 Sacramento 552 0.8 — 0.0 4,877 7.1 1,905 2.6 Northern California Total 48,470 71.0 55,508 76.6 Southern California Coastal Los Angeles 3,879 5.7 3,512 4.8 Orange 7,190 10.5 6,809 9.4 San Diego 6,796 10.0 6,704 9.2 17,865 26.2 17,025 23.4 Other Southern California – Riverside 1,900 2.8 — 0.0 Southern California Total 19,765 29.0 17,025 23.4 Total principal, secured loans $ 68,235 100.0 % $ 72,533 100.0 % (6) Includes Silicon Valley Scheduled maturities/Secured loans-principal Secured loans scheduled to mature in periods as of and after September 30, 2023, are presented in the following table ($ in thousands). First Trust Deeds Second Trust Deeds Loans Principal Percent Loans Principal Loans Principal 2023 (scheduled to mature after September 30) 7 $ 10,287 15 % 5 $ 8,045 2 $ 2,242 2024 19 36,505 53 13 31,778 6 4,727 2025 10 12,801 19 5 8,143 5 4,658 2026 2 585 1 2 585 — — 2027 3 1,918 3 2 1,322 1 596 Thereafter 4 1,787 3 4 1,787 — — Total scheduled maturities 45 63,883 94 31 51,660 14 12,223 Matured (7) 4 4,352 6 3 3,592 1 760 Total principal, secured loans 49 $ 68,235 100 % 34 $ 55,252 15 $ 12,983 (7) See Delinquency/Secured loans with payments in arrears below for additional information on matured loans. Scheduled maturities are presented based on the most recent in-effect agreement with the borrower, including forbearance agreements. As a result, matured loans at September 30, 2023, for the scheduled maturities table above may differ from the same captions in the tables of delinquencies and payment in arrears presented below that do not consider forbearance agreements. For matured loans, the company may continue to accept payments while pursuing collection of principal or while negotiating an extension of the maturity date. Delinquency/Secured loans Secured loans principal summarized by payment-delinquency status are presented in the following table ($ in thousands). September 30, 2023 December 31, 2022 Loans Principal Loans Principal Current 41 $ 57,712 40 $ 64,423 Past Due 30-89 days 4 5,941 1 4,940 90-179 days 1 857 2 1,681 180 or more days 3 3,725 2 1,489 Total past due 8 10,523 5 8,110 Total principal, secured loans 49 $ 68,235 45 $ 72,533 At September 30, 2023 and December 31, 2022 , there was one loan with a forbearance agreement in effect with principal of $ 990 thousand , included in the table above as 180 or more days delinquent. Six of the eight loans past due at September 30, 2023 were in first lien position and had principal payments in arrears of approximately $ 3.6 million. The other two loans past due at September 30, 2023 were in second lien position and had principal payments in arrears of approximately $ 760 thousand. Delinquency/Secured loans with payments in arrears Payments in arrears for secured loans (6 loans) at September 30, 2023 are presented in the following tables ($ in thousands). Loans Principal Interest (8) At September 30, 2023 Past Monthly Past Monthly Past Monthly Total Past due 30-89 days (1-3 payments) 1 3 $ 760 $ — $ — $ 47 $ 807 90-179 days (4-6 payments) 1 — 857 — — — 857 180 or more days (more than 6 payments) 2 1 2,735 — 11 54 2,800 Total past due 4 4 $ 4,352 $ — $ 11 $ 101 $ 4,464 (8) September 2023 interest is due October 1, 2023 and is not included in the payments in arrears at September 30, 2023 . Secured loans with payments in arrears, principal by LTV and lien position at September 30, 2023 are presented in the following table ($ in thousands). The LTVs shown in this table use the appraisals at origination of the loans. Secured loans with payments in arrears, principal LTV (9) First trust Percent (10) Second trust Percent (10) Total Percent (10) <40% $ — 0.0 % $ — 0.0 % $ — 0.0 % 40-49% 4,180 6.1 — 0.0 4,180 6.1 50-59% 1,905 2.8 — 0.0 1,905 2.8 60-69% 3,082 4.5 596 0.9 3,678 5.4 Subtotal <70% 9,167 13.4 596 0.9 9,763 14.3 70-79% — 0.0 760 1.1 760 1.1 Subtotal <80% 9,167 13.4 1,356 2.0 10,523 15.4 ≥80% — 0.0 — 0.0 — 0.0 Total $ 9,167 13.4 % $ 1,356 2.0 % $ 10,523 15.4 % (9) LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 . (10) Percent of total principal of secured loans (totaling $ 68.2 million) at September 30, 2023 . Matured loans, principal by LTV and lien position at September 30, 2023 are presented in the following table ($ in thousands). The LTVs shown in this table use the appraisals at origination of the loans. Secured loans past maturity, principal LTV (11) First trust Percent (12) Second trust Percent (12) Total Percent (12) <40% $ — 0.0 % $ — 0.0 % $ — 0.0 % 40-49% — 0.0 — 0.0 — 0.0 50-59% 1,500 2.2 — 0.0 1,500 2.2 60-69% 2,092 3.1 — 0.0 2,092 3.1 Subtotal <70% 3,592 5.3 — 0.0 3,592 5.3 70-79% — 0.0 760 1.1 760 1.1 Subtotal <80% 3,592 5.3 760 1.1 4,352 6.4 ≥80% — 0.0 — 0.0 — 0.0 Total $ 3,592 5.3 % $ 760 1.1 % $ 4,352 6.4 % (11) LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 . (12) Percent of total principal of secured loans (totaling $ 68.2 million) at September 30, 2023 . Non-accrual status/Secured loans Secured loans in non-accrual status are summarized in the following table ($ in thousands). September 30, 2023 December 31, 2022 Number of loans none 2 Principal $ 1,489 Advances 1 Accrued interest (13) 4 Total recorded investment $ 1,494 Foregone interest $ 58 (13) Accrued interest in the table above is the amount of interest accrued prior to the loan being placed on non-accrual status, net of In conjunction with the adoption of ASC 326 (CECL), the company changed its guidelines for non-accrual status and recognized a cumulative-effect adjustment (with an increase to members’ and manager’s capital) of $ 58 thousand to recognize previously foregone interest for loans designated non-accrual at December 31, 2022. In periods prior to January 1, 2023, loans were placed on non-accrual status if 180 days delinquent or earlier if management determined that the primary source of repayment would come from the foreclosure and subsequent sale of the collateral securing the loan (which usually occurs when a notice of sale is filed) or when the loan was no longer considered well-secured. Provision/allowance for credit losses Activity in the allowance for credit losses for the nine months ended September 30 are presented in the following table ($ in thousands). 2023 2022 Principal and Advances Interest Total Principal and Advances Interest Total Balance, December 31 $ 30 $ 25 $ 55 $ 30 $ 25 $ 55 Adoption of ASC 326 (CECL) 30 35 65 — — — Balance, January 1 60 60 120 30 25 55 Provision for (Recovery of) loan losses — — — — — — Charge-offs — — — — — — Balance, September 30 $ 60 $ 60 $ 120 $ 30 $ 25 $ 55 Each secured loan is reviewed quarterly for its delinquency, LTV adjusted for the most recent valuation of the underlying collateral, remaining term to maturity, borrower’s payment history and other factors. In periods prior to January 1, 2023, the company followed the incurred loss model for recognition of credit losses and had recorded an allowance for credit losses of principal and interest totaling approximately $ 55 thousand to cover incurred, but not known, eventualities that occur from time to time, even though the secured loans had protective equity such that collection was deemed probable for all recorded amounts due on the loan. Such eventualities include the manager deeming it in the best interest of the company to agree to concessions to borrowers and/or senior-lien lenders to facilitate a refinance or a sale of the collateral primarily for secured loans in second lien position. In conjunction with the adoption of ASC 326 (CECL), the company recognized a cumulative-effect adjustment (with a decrease to members’ and manager’s capital) o f $ 65 thousand to the allowance for credit losses to recognize lifetime expected credit losses for secured loans at December 31, 2022. The limited number of loans and the short terms for which the loans are written enabled the manager to do a loan-by-loan analysis to determine the risk of loss. Beginning in 2023, the analysis is updated quarterly with any change to the expected credit losses recognized in the period. The analysis includes projecting the outstanding principal for loans – individually and in total, by lien position – until maturity to determine the count, amount and weighted average LTV of the loans for future quarters and fiscal years. Secured loans count, principal and weighted average LTV at September 30, 2023 and the projected year-end count, principal and weighted average LTV based on contractual maturities (by lien position) are presented in the following table ($ in thousands). First Trust Deeds Second Trust Deeds Loans Principal LTV Loans Principal LTV Loans Principal LTV September 30, 2023 49 $ 68,235 55.9 % 34 $ 55,252 55.7 % 15 $ 12,983 56.9 % Year end 2023 38 53,596 55.0 26 43,615 54.9 12 9,981 55.3 2024 19 17,091 51.9 13 11,837 50.5 6 5,254 55.1 2025 9 4,290 51.0 8 3,694 50.3 1 596 55.2 2026 7 3,705 54.2 6 3,109 54.0 1 596 55.2 2027 4 1,787 43.9 4 1,787 43.9 0 — 0.0 2028 2 619 25.0 2 619 25.0 0 — 0.0 2033 1 219 37.2 1 219 37.2 0 — 0.0 2035 0 — 0.0 0 — 0.0 0 — 0.0 As indicated by the tables above, there is no future period covered in the analysis – nor is there any individual loan – in which a real estate market decline in values is likely to occur that would be sufficient to offset the substantial protective equity in the secured-loan portfolio (and in the individual loans) sufficient to put at risk collection of amounts owed under the notes, secured by the deeds of trust. In arriving at the determination, the manager consulted a range of banking/industry and academic studies and forecasts. In performing the analysis, the manager considered the vintages in which the secured loans originated. The ultimate collectability of the amounts owed is reliant on the estimation of the current fair value of the real property collateral and the time to maturity. Further there is no evidence, nor any indication in the analysis, that the ultimate collectability of the amounts owed fluctuates with the time on file or vintage. Such considerations are consistent with the ‘no-credit-losses’ experience of the company over the preceding five or more years. The LTVs shown in this table use the appraisals at origination of the loans. Secured loans, principal LTV (14) First trust Percent Count Second trust Percent Count Total Percent <40% $ 2,932 4.3 % 7 $ 885 1.4 % 2 $ 3,817 5.7 % 40-49% 21,623 31.7 7 3,500 5.1 2 25,123 36.8 50-59% 3,647 5.3 4 1,130 1.7 3 4,777 7.0 60-69% 24,409 35.8 14 3,889 5.7 3 28,298 41.5 Subtotal <70% 52,611 77.1 32 9,404 13.9 10 62,015 91.0 70-79% 641 0.9 1 3,579 5.2 5 4,220 6.1 Subtotal <80% 53,252 78.0 33 12,983 19.1 15 66,235 97.1 ≥80% 2,000 2.9 1 — 0.0 — 2,000 2.9 Total $ 55,252 80.9 % 34 $ 12,983 19.1 % 15 $ 68,235 100.0 % (14) LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 . Fair Value The following methods and assumptions are used when estimating fair value (Level 3 inputs). Secured loans/performing Due to the nature of the company’s loans and borrowers, the fair value of loan balances secured by deeds of trust is deemed to approximate the recorded amount (per the consolidated financial statements) as the company's loans: • are of shorter terms at origination than commercial real estate loans by institutional lenders and conventional single-family home mortgage lenders; • are written without a prepayment penalty causing uncertainty/a lack of predictability as to the expected duration of the loan; and • have limited marketability and are not yet sellable into an established secondary market. Secured loans, with payments in arrears The fair value of secured loans with payments in arrears is the lesser of the fair value of the collateral or the enforceable amount of the note. Secured loans with payments in arrears are collateral dependent because it is expected that the primary source of repayment will not be from the borrower but rather from the collateral. The fair value of the collateral is determined on a nonrecurring basis by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values and publicly available information on in-market transactions (Level 3 inputs). When the fair value of the collateral exceeds the enforceable amount of the note, the borrower is likely to redeem the note. Accordingly, third party market participants would generally pay the fair value of the collateral, but no more than the enforceable amount of the note. The following methods and assumptions are used to determine the fair value of the collateral securing a loan. Single family - Management’s preferred method for determining the fair market value of its single-family residential assets is the sale comparison method. Management primarily obtains sales comparables (comps) via its subscription to the RealQuest service, but also uses free online services such as Zillow.com and other available resources to supplement this data. Sale comps are reviewed and adjusted for similarity to the subject property, examining features such as proximity to subject, number of bedrooms and bathrooms, square footage, sale date, condition and year built. If applicable sale comps are not available or deemed unreliable, management will seek additional information in the form of brokers’ opinions of value or appraisals. Multi-family residential - Management’s preferred method for determining the aggregate retail value of its multifamily units is the sale comparison method. Sale comps are typically provided in appraisals, or by realtors who specialize in multi-family residential properties. Sales comps are reviewed for similarity to the subject property, examining features such as proximity to subject, rental income, number of units, composition of units by the number of bedrooms and bathrooms, square footage, condition, amenities and year built. Management’s secondary method for valuing its multifamily assets as income-producing rental operations is the direct capitalization method. In order to determine market cap rates for properties of the same class and location as the subject, management refers to published data from reliable third-party sources such as the CBRE Cap Rate Survey. Management applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing project. When adequate sale comps are not available or reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value and/or management will seek additional information in the form of brokers’ opinion of value or appraisals. Commercial - Management’s preferred method for determining the fair value of its commercial buildings is the sale comparison method. Sale comps are typically provided in appraisals, or by realtors who specialize in commercial properties. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, rental income, number of units, composition of units, common areas, and year built. Management’s secondary method for valuing its commercial buildings is the direct capitalization method. In order to determine market cap rates for properties of the same class and location as the subject, management refers to reputable third-party sources such as the CBRE Cap Rate Survey. Management then applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing commercial rental project. When adequate sale comps are not available or reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value and/or management will seek additional information in the form of brokers’ opinion of value or appraisals. Commercial land - Commercial land has many variations/uses, thus requiring management to employ a variety of methods depending upon the unique characteristics of the subject land, including a determination of its highest and best use. Management may rely on information in the form of a sale comparison analysis (where adequate sale comps are available), brokers’ opinion of value, or appraisal. |
Line of Credit
Line of Credit | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Line of Credit | NOTE 5 – LINE OF CREDIT Activity involving the line of credit during the nine months ended September 30 is presented in the following table ($ in thousands). 2023 2022 Balance, January 1, $ 9,900 $ 8,480 Draws 2,466 9,900 Repayments ( 6,409 ) ( 8,480 ) Balance, September 30, $ 5,957 $ 9,900 Line of credit - average daily balance $ 8,250 $ 8,000 In March 2020, RMI IX entered into a revolving line of credit and term loan agreement with Western Alliance Bank (“WAB”) which is governed by the terms of the Business Loan Agreement between WAB and company (“original credit agreement”), which was as amended and modified by the First Loan Modification Agreement made effective March 4, 2022 (the “modification agreement” and together with the original credit agreement, the “2022 credit agreement”). Under the terms of the 2022 credit agreement, RMI IX can borrow up to a maximum principal of $ 10 million pursuant to a line of credit subject to a borrowing base calculation set forth in the 2022 credit agreement and the amounts advanced under the 2022 credit agreement are secured by a first priority security interest in the notes and deeds of trust of the pledged loans in the borrowing base. The maturity date of the 2022 credit agreement is March 13, 2024 when all amounts outstanding are then due. For a fee of one-quarter of one percent (0.25%), RMI IX has the option prior to maturity date to convert the then outstanding principal balance under the 2022 credit agreement to a two-year term loan maturing in March 2026. Prior to the modification agreement, interest on outstanding principal was payable monthly and accrued at the per annum rate of the greater of (i) five percent (5%) or (ii) the sum of the one-month LIBOR rate plus three and one-quarter percent ( 3.25 %). The modification agreement replaced LIBOR as the reference rate under the 2022 credit agreement with the 30-day American Interbank Offered Rate Term -30 Index published for loans in United States Dollars by the American Financial Exchange (“Ameribor”). Following the modification agreement, interest on the outstanding principal under the line of credit is payable monthly and accrues at the annual rate that is the greater of: (i) the Ameribor Rate plus three and one-quarter percent ( 3.25 %) and (ii) five percent ( 5.0 %). The fair value of the balance on the line of credit is deemed to approximate the recorded amount because the reference rate plus 3.25 % and the other terms and conditions, including the two-year term, of the 2022 credit agreement are reflective of market rate terms (Level 2 inputs). If the company does not maintain the required compensating balance with a minimum daily average of $ 1.0 million for the calendar quarter, the interest rate automatically increases by one-quarter of one percent ( 0.25 %) above that rate which would otherwise be applicable for the next calendar quarter retroactive to the beginning of the calendar quarter in which the compensating balance is not maintained. At September 30, 2023 , the interest rate was eight and sixty three one-hundredths percent ( 8.63 %). For each calendar quarter during which the aggregate average daily outstanding principal is less than fifty percent ( 50 %) of the maximum principal of $10 million, there is a quarterly unused line fee equal to one-half of one percent ( 0.50 %) per annum of the average daily difference between the average principal outstanding and fifty percent ( 50 %) of the maximum principal of $ 10 million ($ 10,000,000 ). Advances on the line of credit are to be used exclusively to fund secured loans. The credit agreement provides for customary financial and borrowing base reporting by the company to the bank and specifies that the company shall maintain (i) minimum tangible net worth of $ 50 million, net of amounts due from related companies; (ii) debt service coverage ratio at all times of not less than 2.00 to 1.00 ; and (iii) loan payment delinquency of less than ten percent ( 10.0 %) at calendar quarter-end, calculated as the principal of loans with payments over 61-days past due as determined by the bank’s guidance, less loan loss allowances, divided by total principal of the company’s loans. The credit agreement provides that in the event the credit payment delinquency rate exceeds 10.0% as of the end of any quarter, the bank will cease to make any further advances until the company is compliant with the covenant but agrees not to accelerate repayment of the loan. At September 30, 2023 and December 31, 2022, agg regate principal of pledged loans was approximately $ 9.5 million and $ 24.5 million, respectively, with a maximum allowed advance thereon of approximately $ 10 million, subject to the borrowing base calculation. The debt issuance costs from the original credit agreement were fully amortized in March 2022. Debt issuance costs of approximately $ 57 thousand from the modification agreement are being amortized over the two-year term of the modification agreement. Amortized debt issuance costs included in interest expense approximated $ 7 thousand for the three months ended September 30, 2023 and 2022 , and $ 21 thousand and $ 28 thousand for the nine months ended September 30, 2023 and 2022 , respectively. |
Commitments and Contingencies,
Commitments and Contingencies, Other Than Loan Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Other Than Loan Commitments | NOTE 6 – COMMITMENTS AND CONTINGENCIES, OTHER THAN LOAN COMMITMENTS Commitments Note 3 (Manager and Other Related Parties) presents a detailed discussion of the company’s contractual obligations to RMC and scheduled redemptions of members’ capital at September 30, 2023. Legal proceedings As of September 30, 2023 , the company is not involved in any legal proceedings or governmental proceedings other than those that would be considered part of the normal course of business. In the normal course of its business, the company may become involved in legal proceedings (such as assignment of rents, bankruptcy proceedings, appointment of receivers, unlawful detainers, judicial foreclosure, etc.) to collect the debt owed under the promissory notes, to enforce the provisions of the deeds of trust, to protect its interest in the real property subject to the deeds of trust and to resolve disputes with borrowers, lenders, lien holders and mechanics. None of these actions, in and of themselves, typically would be of any material financial impact to the company (i.e., exceeding ten percent of the company’s consolidated current assets). |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 7 – SUBSEQUENT EVENTS The manager evaluated events occurring subsequent to September 30, 2023 and determined that there were no events or transactions occurring during this reporting period that require recognition or disclosure in the unaudited financial statements . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Management Estimates | Management estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates involve a significant level of uncertainty and have had or are reasonably likely to have a material impact on the company’s financial condition or results of operations. Such estimates relate principally to the determination of the allowance for credit losses ( including the fair value of the underlying collateral), and the valuation of real estate owned (“REO” ) (RMI IX has not acquired REO since it commenced operations in 2009). Actual results could differ materially from these estimates. |
Fair Value Estimates | Fair value estimates The fair value of real property (as to loan collateral and REO) is determined by exercise of judgment based on RMC’s management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. Appraisals of commercial real property generally present three approaches to estimating value: 1) market-comparables or sales approach; 2) cost to replace; and 3) capitalized cash flows or income approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, including the consideration of adjustments made for any attributes specific to the real estate. Management has the requisite familiarity with the markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, and lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value, and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types. GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Fair values of assets and liabilities are determined based on the fair-value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly in active markets and quoted prices for identical assets or liabilities that are not active, and inputs other than quoted prices that are observable, or inputs derived from or corroborated by market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the company’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the company’s own data. |
Cash in Banks | Cash in banks Certain of the company’s cash balances in banks exceed federally insured limits of $ 250 thousand. The bank or banks in which funds are deposited are reviewed periodically for their general creditworthiness/investment grade credit rating. (See Note 5 (Line of Credit) for compensating balance arrangements). |
Loans and Interest Income | Loans and interest income Loans are carried at amortized cost which is generally equal to the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the company’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums and attorney fees. Advances generally are stated at the amounts paid out on the borrower’s behalf and any accrued interest on amounts paid out, until repaid by the borrower. For performing loans, interest is accrued daily on the principal plus advances, if any. In the normal course of the company’s operating activities, performing loans that are maturing or have matured may be renewed at then current market rates of interest and terms for new loans. (These loan extensions are not reported as new loans for financial reporting purposes.) The company may fund a specific loan net of an interest reserve (one to two years) to insure timely interest payments at the inception of the loan. Any interest reserve is amortized over the period that the amount is prepaid. In the event of an early loan payoff, any unapplied interest reserves would be first applied to any accrued but unpaid interest and then as a reduction to the principal. Loans with a payment in arrears continue to recognize interest income as long as the loan is in the process of collection with the borrower and is considered to be well-secured. Loans are generally placed on non-accrual status if management determines that the primary source of repayment will come from the foreclosure and subsequent sale of the collateral securing the loan (i.e., a notice of sale is filed and/or when the borrower files for bankruptcy) or when the loan is no longer considered well-secured (i.e., the LTV for the loan based on the estimated net realizable value of the collateral and the total principal, advances and accrued interest (at the note rate) is at or greater than eighty percent (80%), seventy-five percent (75%) for lands outside of metropolitan areas). When a loan is placed on non-accrual status, the accrual of interest is discontinued – beginning with the then current month - for accounting purposes only; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent loan payments are cured and the loan becomes current in accordance with the terms of the loan agreement . In periods prior to January 1, 2023, loans were placed on non-accrual status if 180 days delinquent or earlier if management determined that the primary source of repayment would come from the foreclosure and subsequent sale of the collateral securing the loan (which usually occurs when a notice of sale is filed) or when the loan was no longer considered well-secured. Payments on loans are applied in the following order: accrued interest, advances, and lastly to principal. Late fees are recognized in the period received. Pursuant to California regulatory requirements, borrower payments are deposited into a trust account established by RMC with an independent bank (and are presented on the balance sheet as “Loan payments in trust”). Funds are disbursed to the company as collected which can range from same day for wire transfers and up to two weeks after deposit for checks. The company funds loans with the intent to hold the loans until maturity. From time to time the company may sell certain loans when the manager determines it to be in the best interest of the company. Loans are classified as held-for-sale once a decision has been made to sell loans and the loans held-for-sale have been identified. Loans classified as held-for-sale are carried at the lower of cost or fair value. |
Allowance for credit Losses | Allowance for credit losses Loan balances (i.e., the sum of the unpaid principal, advances and accrued interest) are analyzed on a periodic basis for ultimate recoverability. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the dollar amount by which the net realizable value (i.e., fair value less the cost to sell) of the collateral, net of any senior liens exceeds the loan balance. For a loan that is deemed collateral dependent for repayment, a provision for credit losses is recorded to adjust the allowance for credit losses to an amount such that the net carrying amount (unpaid principal, advances plus interest accrued, i.e., interest owed net of foregone interest for loans in non-accrual status) is reduced to the lower of the loan balance or the estimated fair value of the related collateral, net of any senior debt and claims and costs to sell. As of January 1, 2023, the company adopted Accounting Standards Codification 326, Financial Instruments – Credit Losses using the modified retrospective approach, which requires a lifetime, current expected credit loss (CECL) measurement objective for the recognition of credit losses at the time a loan is originated or acquired. The allowance for credit losses is adjusted each period for changes in expected lifetime credit losses for loans and accrued interest. The determination of the amount of the allowance for credit losses considers historical loss experience, current fair value of collateral and the resultant LTV, current real estate and financial markets, as well as reasonable and supportable forecasts about future economic scenarios. The forward-looking estimates consider the likelihood that any combination of events would adversely impact economic conditions and real estate markets in California such that the substantial protective equity existing for the loans would no longer be sufficient to collect the recorded amounts of principal, advances and accrued interest due on the loan. The limited number of loans and the short terms for which the loans are written enable a loan-by-loan analysis to determine the risk of loss. The primary determinate in the analysis is the LTV, and consideration of lien position of deed of trust. The analysis also considered the vintage in which the secured loans originated. The ultimate collectability of the amounts owed is reliant on the estimation of the current fair value of the real property collateral and the time to maturity. Further there is no evidence, nor any indication in the analysis, that the ultimate collectability of the amounts owed fluctuates with the time on file or vintage. Such considerations are consistent with the ‘no-credit-losses’ experience of the company over the preceding 5+ years. The company charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. Any amounts collected after a charge off is deemed a recovery. If the loan goes to foreclosure, an updated appraisal is ordered and the recorded investment in the loan is adjusted to the net realizable value of the real estate to be acquired. Prior to the adoption of the CECL accounting model, if a loan modification was agreed to and was to result in an economic concession to the borrower (i.e., a significant delay or reduction in cash flows compared to the original note), the modification would have been deemed to be a troubled debt restructuring (“TDR”). The Company did not have any TDR’s for the year ended December 31, 2022 . |
Real Estate Owned (REO) | Real estate owned (“REO”) Real estate owned, or REO, is property acquired in full or partial settlement of loan obligations generally through foreclosure and is recorded at acquisition at the property’s fair value less estimated costs to sell. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for credit losses and any subsequent valuation reserves. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. REO is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expenses. Any recovery in the fair value subsequent to such a write down is recorded and is not to exceed the value recorded at acquisition. Recognition of gains or losses on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. |
Debt Issuance Costs | Debt issuance costs Debt issuance costs are the fees and commissions incurred in the course of obtaining a line of credit for services from banks, law firms and other professionals and are amortized on a straight-line basis, which approximates the interest method, as interest expense over the term of the line of credit. |
Reclassification | Reclassification Certain amounts on the balance sheet as of December 31, 2022 have been reclassified to conform to the current period presentation. The payable to manager has been disclosed separately on the balance sheets from the payable to mortgage fund. There was no change in total liabilities. |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements None at September 30, 2023 are applicable to the company. |
Manager and Other Related Par_2
Manager and Other Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Formation loan transactions for the nine months ended September 30 are presented in the following table ($ in thousands). 2023 2022 Balance, January 1 $ 3,110 $ 3,388 Payments received from RMC ( 156 ) ( 226 ) Balance, September 30 $ 2,954 $ 3,162 |
Schedule of Unit Redemptions | Redemptions of members’ capital for the three and nine months ended September 30 are presented in the following table ($ in thousands). Three Months Ended September 30, Nine Months Ended September 30, Redemptions 2023 2022 2023 2022 Without penalty $ 1,314 $ 1,975 $ 3,244 $ 5,240 With penalty 2 — 24 111 Total $ 1,316 $ 1,975 $ 3,268 $ 5,351 Early withdrawal penalties $ — $ — $ 1 $ 3 |
Summary of Organization and Offering Expenses | Unallocated O&O transactions for the nine months ended September 30 are summarized in the following table ($ in thousands). 2023 2022 Balance, January 1 $ 1,045 $ 1,458 O&O expenses allocated ( 193 ) ( 214 ) O&O expenses paid by RMC (1) ( 39 ) ( 87 ) Balance, September 30 $ 813 $ 1,157 (1) RMC is obligated per the Operating Agreement to repay RMI IX for the amount of unallocated O&O expenses attributed to a member’s capital account if the member redeems prior to the 40 quarterly allocations. RMC estimated its future obligation to repay unallocated O&O expenses on scheduled redemptions as of September 30, 2023 , to be approximately $ 11 thousand. |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Secured Loan Principal Transactions | Secured loan transactions for the three and nine months ended September 30, 2023 are summarized in the following table ($ in thousands). Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Total First Trust Deeds Second Trust Deeds Total First Trust Deeds Second Trust Deeds Principal, beginning of period (1) $ 69,976 $ 57,063 $ 12,913 $ 72,533 $ 59,250 $ 13,283 Loans funded 4,980 4,095 885 22,983 18,598 4,385 Principal collected (2) ( 5,936 ) ( 4,522 ) ( 1,414 ) ( 28,032 ) ( 20,961 ) ( 7,071 ) Loans transferred to held for sale (3) ( 500 ) ( 500 ) — ( 1,500 ) ( 1,500 ) — Loans transferred from related mortgage funds — — — 3,393 1,461 1,932 Loans transferred to related mortgage fund ( 285 ) ( 285 ) — ( 1,142 ) ( 997 ) ( 145 ) Recategorized (4) — ( 599 ) 599 — ( 599 ) 599 Principal, end of period $ 68,235 $ 55,252 $ 12,983 $ 68,235 $ 55,252 $ 12,983 (1) On January 1, 2023, one loan with a principal balance of $ 247 thousand was re-categorized as a second trust deed. Prior to January 1, 2023 the loan was categorized as a first trust deed. (2) Includes principal collected and held in trust at September 30, 2023 of approximately $ 2 thousand offset by principal collected and held in trust at December 31, 2022 of approximately $ 3 thousand which was disbursed to the company in January 2023 . (3) In July 2023, one loan with principal of $ 1.0 million was sold to an unaffiliated third party. The company recognized a gain of approximately $ 8 thousand net of commissions payable to third parties. In October 2023, one loan with principal of $ 500 thousand was sold to an unaffiliated third party. The company recognized a gain of approximately $ 1 thousand. (4) On July 1, 2023, one loan with a principal balance of $ 599 thousand was re-categorized as a second trust deed. Prior to July 1, 2023 that loan had been categorized as a first trust deed. |
Secured Loans Characteristics | Secured loans had the characteristics presented in the following table ($ in thousands). September 30, December 31, 2023 2022 Number of secured loans 49 45 First trust deeds 34 30 Second trust deeds 15 15 Secured loans – principal $ 68,235 $ 72,533 First trust deeds $ 55,252 $ 59,497 Second trust deeds $ 12,983 $ 13,036 Secured loans – lowest interest rate (fixed) 7.3 % 6.8 % Secured loans – highest interest rate (fixed) 11.8 % 11.0 % Average secured loan – principal $ 1,393 $ 1,612 Average principal as percent of total principal 2.0 % 2.2 % Average principal as percent of members’ and manager’s capital, net 2.0 % 2.3 % Average principal as percent of total assets 1.9 % 2.1 % Largest secured loan – principal $ 6,200 $ 6,735 Largest principal as percent of total principal 9.1 % 9.3 % Largest principal as percent of members’ and manager’s capital, net 9.0 % 9.5 % Largest principal as percent of total assets 8.6 % 8.6 % Smallest secured loan – principal $ 185 $ 146 Smallest principal as percent of total principal 0.3 % 0.2 % Smallest principal as percent of members’ and manager’s capital, net 0.3 % 0.2 % Smallest principal as percent of total assets 0.3 % 0.2 % Number of California counties where security is located 16 11 Largest percentage of principal in one California county 19.7 % 26.3 % Number of secured loans with prepaid interest 3 1 Prepaid interest $ 189 $ 254 |
Secured Loans by Lien Position in the Collateral | At funding, secured loans had the lien positions presented in the following table ($ in thousands). September 30, 2023 December 31, 2022 Loans Principal Percent Loans Principal Percent First trust deeds 34 $ 55,252 81 % 30 $ 59,497 82 % Second trust deeds 15 12,983 19 15 13,036 18 Total principal, secured loans 49 68,235 100 % 45 72,533 100 % Liens due other lenders at loan closing 29,032 36,544 Total debt $ 97,267 $ 109,077 Appraised property value at loan closing $ 184,320 $ 195,261 LTV (weighted average) at loan closing 55.9 % 58.3 % |
Secured Loans by Property Type of the Collateral | Secured loans summarized by property type are presented in the following table ($ in thousands). September 30, 2023 December 31, 2022 Loans Principal Percent Loans Principal Percent Single family (5) 22 $ 20,922 31 % 21 $ 25,360 35 % Commercial 19 32,976 48 17 34,386 47 Multi-family 6 8,657 13 6 11,287 16 Land 2 5,680 8 1 1,500 2 Total principal, secured loans 49 $ 68,235 100 % 45 $ 72,533 100 % (5) Single family includes one to four unit residential buildings, condominium units, townhouses and condominium complexes. At September 30, 2023, single family consists of five loans with aggregate principal of approximately $ 4.6 million that are owner occupied and 17 loans with principal of approximately $ 16.3 million that are non-owner occupied. At December 31, 2022 , single family property type consisted of 10 loans with principal of approximately $ 11.6 million that are owner occupied and 11 loans with principal of approximately $ 13.8 million that are non-owner occupied. |
Secured Loans Distributed Principal within California | The distribution of secured loans within California by counties is presented in the following table ($ in thousands). September 30, 2023 December 31, 2022 Principal Percent Principal Percent San Francisco Bay Area (6) San Francisco $ 13,430 19.7 % $ 13,801 19.0 % San Mateo 11,029 16.1 13,054 18.0 Santa Clara 12,393 18.2 19,042 26.3 Alameda 5,516 8.1 6,062 8.4 Contra Costa — 0.0 1,000 1.4 Napa 640 0.9 644 0.9 Solano 185 0.3 — 0.0 Marin 400 0.6 — 0.0 43,593 63.9 53,603 74.0 Other Northern California Placer 1,968 2.9 1,500 2.1 Tehama 405 0.6 405 0.5 San Joaquin 750 1.1 — 0.0 Butte 1,202 1.7 — 0.0 Sacramento 552 0.8 — 0.0 4,877 7.1 1,905 2.6 Northern California Total 48,470 71.0 55,508 76.6 Southern California Coastal Los Angeles 3,879 5.7 3,512 4.8 Orange 7,190 10.5 6,809 9.4 San Diego 6,796 10.0 6,704 9.2 17,865 26.2 17,025 23.4 Other Southern California – Riverside 1,900 2.8 — 0.0 Southern California Total 19,765 29.0 17,025 23.4 Total principal, secured loans $ 68,235 100.0 % $ 72,533 100.0 % (6) Includes Silicon Valley |
Secured Loans Principal Scheduled Maturities | Secured loans scheduled to mature in periods as of and after September 30, 2023, are presented in the following table ($ in thousands). First Trust Deeds Second Trust Deeds Loans Principal Percent Loans Principal Loans Principal 2023 (scheduled to mature after September 30) 7 $ 10,287 15 % 5 $ 8,045 2 $ 2,242 2024 19 36,505 53 13 31,778 6 4,727 2025 10 12,801 19 5 8,143 5 4,658 2026 2 585 1 2 585 — — 2027 3 1,918 3 2 1,322 1 596 Thereafter 4 1,787 3 4 1,787 — — Total scheduled maturities 45 63,883 94 31 51,660 14 12,223 Matured (7) 4 4,352 6 3 3,592 1 760 Total principal, secured loans 49 $ 68,235 100 % 34 $ 55,252 15 $ 12,983 See Delinquency/Secured loans with payments in arrears below for additional information on matured loans. |
Past Due Financing Receivables | Secured loans principal summarized by payment-delinquency status are presented in the following table ($ in thousands). September 30, 2023 December 31, 2022 Loans Principal Loans Principal Current 41 $ 57,712 40 $ 64,423 Past Due 30-89 days 4 5,941 1 4,940 90-179 days 1 857 2 1,681 180 or more days 3 3,725 2 1,489 Total past due 8 10,523 5 8,110 Total principal, secured loans 49 $ 68,235 45 $ 72,533 |
Payments in Arrears Past Due Financing Receivables | Payments in arrears for secured loans (6 loans) at September 30, 2023 are presented in the following tables ($ in thousands). Loans Principal Interest (8) At September 30, 2023 Past Monthly Past Monthly Past Monthly Total Past due 30-89 days (1-3 payments) 1 3 $ 760 $ — $ — $ 47 $ 807 90-179 days (4-6 payments) 1 — 857 — — — 857 180 or more days (more than 6 payments) 2 1 2,735 — 11 54 2,800 Total past due 4 4 $ 4,352 $ — $ 11 $ 101 $ 4,464 (8) September 2023 interest is due October 1, 2023 and is not included in the payments in arrears at September 30, 2023 . |
Secured loans with payments in arrears, principal by LTV and lien position | Secured loans with payments in arrears, principal by LTV and lien position at September 30, 2023 are presented in the following table ($ in thousands). The LTVs shown in this table use the appraisals at origination of the loans. Secured loans with payments in arrears, principal LTV (9) First trust Percent (10) Second trust Percent (10) Total Percent (10) <40% $ — 0.0 % $ — 0.0 % $ — 0.0 % 40-49% 4,180 6.1 — 0.0 4,180 6.1 50-59% 1,905 2.8 — 0.0 1,905 2.8 60-69% 3,082 4.5 596 0.9 3,678 5.4 Subtotal <70% 9,167 13.4 596 0.9 9,763 14.3 70-79% — 0.0 760 1.1 760 1.1 Subtotal <80% 9,167 13.4 1,356 2.0 10,523 15.4 ≥80% — 0.0 — 0.0 — 0.0 Total $ 9,167 13.4 % $ 1,356 2.0 % $ 10,523 15.4 % (9) LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 . Percent of total principal of secured loans (totaling $ 68.2 million) at September 30, 2023 . |
Matured Loans By Ltv And Line Positions [Table Text Block] | Matured loans, principal by LTV and lien position at September 30, 2023 are presented in the following table ($ in thousands). The LTVs shown in this table use the appraisals at origination of the loans. Secured loans past maturity, principal LTV (11) First trust Percent (12) Second trust Percent (12) Total Percent (12) <40% $ — 0.0 % $ — 0.0 % $ — 0.0 % 40-49% — 0.0 — 0.0 — 0.0 50-59% 1,500 2.2 — 0.0 1,500 2.2 60-69% 2,092 3.1 — 0.0 2,092 3.1 Subtotal <70% 3,592 5.3 — 0.0 3,592 5.3 70-79% — 0.0 760 1.1 760 1.1 Subtotal <80% 3,592 5.3 760 1.1 4,352 6.4 ≥80% — 0.0 — 0.0 — 0.0 Total $ 3,592 5.3 % $ 760 1.1 % $ 4,352 6.4 % (11) LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 . (12) Percent of total principal of secured loans (totaling $ 68.2 million) at September 30, 2023 . |
Secured Loans in Non-Accrual Status | Secured loans in non-accrual status are summarized in the following table ($ in thousands). September 30, 2023 December 31, 2022 Number of loans none 2 Principal $ 1,489 Advances 1 Accrued interest (13) 4 Total recorded investment $ 1,494 Foregone interest $ 58 Accrued interest in the table above is the amount of interest accrued prior to the loan being placed on non-accrual status, net of |
Activity in Allowance for Loan Losses | Activity in the allowance for credit losses for the nine months ended September 30 are presented in the following table ($ in thousands). 2023 2022 Principal and Advances Interest Total Principal and Advances Interest Total Balance, December 31 $ 30 $ 25 $ 55 $ 30 $ 25 $ 55 Adoption of ASC 326 (CECL) 30 35 65 — — — Balance, January 1 60 60 120 30 25 55 Provision for (Recovery of) loan losses — — — — — — Charge-offs — — — — — — Balance, September 30 $ 60 $ 60 $ 120 $ 30 $ 25 $ 55 |
Secured loans scheduled maturities Loan Principal and LTV | Secured loans count, principal and weighted average LTV at September 30, 2023 and the projected year-end count, principal and weighted average LTV based on contractual maturities (by lien position) are presented in the following table ($ in thousands). First Trust Deeds Second Trust Deeds Loans Principal LTV Loans Principal LTV Loans Principal LTV September 30, 2023 49 $ 68,235 55.9 % 34 $ 55,252 55.7 % 15 $ 12,983 56.9 % Year end 2023 38 53,596 55.0 26 43,615 54.9 12 9,981 55.3 2024 19 17,091 51.9 13 11,837 50.5 6 5,254 55.1 2025 9 4,290 51.0 8 3,694 50.3 1 596 55.2 2026 7 3,705 54.2 6 3,109 54.0 1 596 55.2 2027 4 1,787 43.9 4 1,787 43.9 0 — 0.0 2028 2 619 25.0 2 619 25.0 0 — 0.0 2033 1 219 37.2 1 219 37.2 0 — 0.0 2035 0 — 0.0 0 — 0.0 0 — 0.0 |
Vintages Secured loans, principals Originated | The LTVs shown in this table use the appraisals at origination of the loans. Secured loans, principal LTV (14) First trust Percent Count Second trust Percent Count Total Percent <40% $ 2,932 4.3 % 7 $ 885 1.4 % 2 $ 3,817 5.7 % 40-49% 21,623 31.7 7 3,500 5.1 2 25,123 36.8 50-59% 3,647 5.3 4 1,130 1.7 3 4,777 7.0 60-69% 24,409 35.8 14 3,889 5.7 3 28,298 41.5 Subtotal <70% 52,611 77.1 32 9,404 13.9 10 62,015 91.0 70-79% 641 0.9 1 3,579 5.2 5 4,220 6.1 Subtotal <80% 53,252 78.0 33 12,983 19.1 15 66,235 97.1 ≥80% 2,000 2.9 1 — 0.0 — 2,000 2.9 Total $ 55,252 80.9 % 34 $ 12,983 19.1 % 15 $ 68,235 100.0 % (14) LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 . |
Line of Credit (Tables)
Line of Credit (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Line of Credit Facility [Abstract] | |
Schedule of Line of Credit Facilities Activity | Activity involving the line of credit during the nine months ended September 30 is presented in the following table ($ in thousands). 2023 2022 Balance, January 1, $ 9,900 $ 8,480 Draws 2,466 9,900 Repayments ( 6,409 ) ( 8,480 ) Balance, September 30, $ 5,957 $ 9,900 Line of credit - average daily balance $ 8,250 $ 8,000 |
Organization and General - Addi
Organization and General - Additional Information (Details) Units in Thousands, $ in Millions | 9 Months Ended | 117 Months Ended | ||
Sep. 30, 2023 USD ($) Units | May 31, 2019 | Mar. 11, 2022 | May 09, 2019 USD ($) shares | |
Organization and General (Details) [Line Items] | ||||
Members or partners capital, description | Cash available for distribution at the end of each calendar month is allocated ninety-nine percent (99%) to the members and one percent (1%) to the manager | |||
Maximum capital units for redemption per quarter per individual | Units | 100 | |||
Maximum percentage of members total outstanding units for redemption per quarter per individual | 25% | |||
Weighted Average Number of Units Outstanding, Percentage | 5% | |||
Maximum percentage of weighted average number of members outstanding units during twelve months for redemption | 5% | |||
Number Of Voting Percentage | 53% | |||
Redemption Between One To Two Years [Member] | ||||
Organization and General (Details) [Line Items] | ||||
Redemption value percentage of purchase price or capital account balance | 92% | |||
Redemption Between Two to Three Years [Member] | ||||
Organization and General (Details) [Line Items] | ||||
Redemption value percentage of purchase price or capital account balance | 94% | |||
Redemption Between Three to Four Years [Member] | ||||
Organization and General (Details) [Line Items] | ||||
Redemption value percentage of purchase price or capital account balance | 96% | |||
Redemption Between Four to Five Years [Member] | ||||
Organization and General (Details) [Line Items] | ||||
Redemption value percentage of purchase price or capital account balance | 98% | |||
Redemption After Five Years [Member] | ||||
Organization and General (Details) [Line Items] | ||||
Redemption value percentage of purchase price or capital account balance | 100% | |||
DRIP [Member] | ||||
Organization and General (Details) [Line Items] | ||||
Gross proceeds from unit sales | $ 9.3 | |||
Member Units [Member] | ||||
Organization and General (Details) [Line Items] | ||||
Capital unit sold in public offering, shares | shares | 15,000,000 | |||
Capital unit sold in public offering, value | $ 15 | |||
RMC [Member] | ||||
Organization and General (Details) [Line Items] | ||||
Ownership interest held by the manager | 1% | |||
Managers share of net income or loss | 1% | |||
Percentage of profits and losses allocated to manager | 1% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Summary of Significant Accounting Policies [Line Items] | ||||
Gain on sale, loans | $ 8 | $ 28 | $ 8 | $ 40 |
Loan Descriptions | Loans are generally placed on non-accrual status if management determines that the primary source of repayment will come from the foreclosure and subsequent sale of the collateral securing the loan (i.e., a notice of sale is filed and/or when the borrower files for bankruptcy) or when the loan is no longer considered well-secured (i.e., the LTV for the loan based on the estimated net realizable value of the collateral and the total principal, advances and accrued interest (at the note rate) is at or greater than eighty percent (80%), seventy-five percent (75%) for lands outside of metropolitan areas). When a loan is placed on non-accrual status, the accrual of interest is discontinued – beginning with the then current month - for accounting purposes only; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent loan payments are cured and the loan becomes current in accordance with the terms of the loan agreement | |||
Impaired loans maximum days of delinquent | 180 days | |||
Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Federal Insurance Limit | $ 250 | $ 250 |
Manager and Other Related Par_3
Manager and Other Related Parties - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 29, 2023 USD ($) Loan | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2023 USD ($) Loan Loans | Sep. 30, 2022 USD ($) Loan | Dec. 31, 2022 USD ($) | Apr. 30, 2019 USD ($) | |
Managers And Other Related Parties Details [Line Items] | |||||||||
Managers Share of net income or loss | 1% | ||||||||
Liquidation offering proceeds, percentage | (7.00%) | ||||||||
Original formation loan | $ 5,600 | ||||||||
Formation loan advances to RMC | $ 3,000 | ||||||||
Total Partners Capital Account Redemptions | $ 4,800 | 10,100 | |||||||
Total Partners Capital Account Redemptions, Unpaid | $ 5,300 | 8,800 | |||||||
Redemptions on death | $ 35 | 35 | |||||||
Redemption Amount Net Of The Redemption Due To Death | $ 864 | $ 864 | |||||||
Redemption Percentage Of The Redemption Due To Death | 0.092 | 0.092 | |||||||
limitation in amount | $ 902 | ||||||||
Reimbursement as a percentage of member's original purchase price | 0.45% | ||||||||
Percentage of original purchase price, quarterly installment percentage | 0.1125% | ||||||||
Capital Redemption Actually Paid | $ 899 | ||||||||
Member Redemptions | $ 342 | 342 | |||||||
Principal | 68,235 | 68,235 | $ 72,533 | ||||||
Promissory note funded to related party | 3,300 | $ 1,000 | |||||||
Promissory note from related mortgage fund (Note 3) | 2,800 | $ 2,800 | 0 | ||||||
Mortgage Loans transferred On Real Estate Number Of Loans | Loans | 0 | ||||||||
Two Performing Loan [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Principal | $ 1,900 | $ 1,900 | |||||||
Mortgage Loans transferred On Real Estate Number Of Loans | Loan | 2 | ||||||||
Three Performing Loan [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Principal | 1,100 | $ 1,100 | |||||||
Mortgage Loans transferred On Real Estate Number Of Loans | Loan | 3 | ||||||||
Number of mortgage loans as security to pay the promissory note | Loan | 3 | ||||||||
Four Performing Loan [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Principal | 3,400 | $ 3,400 | |||||||
Mortgage Loans transferred On Real Estate Number Of Loans | Loans | 4 | ||||||||
Accounts Payable And Cost Reimbursements [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Payable Related parties | 192 | ||||||||
Accounts Payable Related to Mortgage Fund [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Payable Related parties | 62 | ||||||||
Redwood Mortgage Investors VIII [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Actual costs reimbursed to RMC after the waived | 98 | 103 | $ 267 | $ 269 | |||||
Promissory note balance | $ 2,800 | $ 2,800 | |||||||
Promissory note from related mortgage fund (Note 3) | $ 3,300 | ||||||||
Interest rate on the promissory note | 8.75% | ||||||||
Mortgage Loans amount | $ 7,500 | ||||||||
Subsequent Event | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Total Partners Capital Account Redemptions | $ 3,200 | ||||||||
Eligible Redemption | $ 12,000 | ||||||||
RMC [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Management Fee, Percentage | 0.75% | 0.75% | |||||||
Working Capital Reserve, Percentage | 2% | 2% | |||||||
Qualifying costs incurred | $ 188 | 235 | $ 606 | 605 | |||||
Reimbursement of costs from RMC waived | $ 90 | 132 | $ 339 | 336 | |||||
Administrative Fees, Percentage | 1% | 1% | |||||||
Amount of loan administrative fees waived | $ 56 | 88 | $ 236 | 210 | |||||
Loan Brokerage Commission Percent Minimum | 1.50% | 1.50% | |||||||
Loan Brokerage Commission Percent Maximum | 5% | 5% | |||||||
Loan Brokerage Commissions, Maximum Percent of Assets | 4% | 4% | |||||||
Loan Brokerage Commission | $ 111 | 149 | $ 579 | 410 | |||||
Repayment of formation loan in annual installments | 208 | 208 | |||||||
Total Partners Capital Account Redemptions, Unpaid | 232 | ||||||||
Early withdrawal penalties | 0 | 0 | 1 | 3 | |||||
Capital redemptions | 1,316 | $ 1,975 | 3,268 | $ 5,351 | |||||
RMC [Member] | Accounts Payable And Cost Reimbursements [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Payable Related parties | 53 | 53 | $ 254 | ||||||
Receivables from related parties | $ 0 | 0 | |||||||
Quarterly Limitation [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Total Partners Capital Account Redemptions | $ 902 | ||||||||
Maximum [Member] | |||||||||
Managers And Other Related Parties Details [Line Items] | |||||||||
Annual mortgage servicing fees, percentage | 0.25% | 0.25% | |||||||
Percentage of reimbursement of organization and offering expenses | 4.50% | ||||||||
Reimbursement threshold | for each of forty (40) calendar quarters or portion thereof after December 31, 2015 |
Manager and Other Related Par_4
Manager and Other Related Parties - Formation Loan Transactions (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Formation Loan Transactions [Abstract] | ||
Balance, January 1 | $ 3,110 | $ 3,388 |
Payments received from RMC | (156) | (226) |
Balance, September 30 | $ 2,954 | $ 3,162 |
Manager and Other Related Par_5
Manager and Other Related Parties - Schedule of Unit Redemptions (Details) - RMC [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Managers And Other Related Parties Details [Line Items] | ||||
Total, Capital redemptions | $ 1,316 | $ 1,975 | $ 3,268 | $ 5,351 |
Early withdrawal penalties | 0 | 0 | 1 | 3 |
Without Penalty [Member] | ||||
Managers And Other Related Parties Details [Line Items] | ||||
Total, Capital redemptions | 1,314 | 1,975 | 3,244 | 5,240 |
With Penalty [Member] | ||||
Managers And Other Related Parties Details [Line Items] | ||||
Total, Capital redemptions | $ 2 | $ 0 | $ 24 | $ 111 |
Manager and Other Related Par_6
Manager and Other Related Parties - Summary of Organization and Offering Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Balance, January 1 | $ (67,657) | ||||
O&O expenses paid by RMC | (11) | ||||
Balance, June 30 | $ (65,934) | (65,934) | |||
Unallocated Organization And Offering Expenses [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Balance, January 1 | 887 | $ 1,256 | 1,045 | $ 1,458 | |
O&O expenses allocated | (63) | (70) | (193) | (214) | |
O&O expenses paid by RMC | [1] | (39) | (87) | ||
Balance, June 30 | $ 813 | $ 1,157 | $ 813 | $ 1,157 | |
[1] RMC is obligated per the Operating Agreement to repay RMI IX for the amount of unallocated O&O expenses attributed to a member’s capital account if the member redeems prior to the 40 quarterly allocations. RMC estimated its future obligation to repay unallocated O&O expenses on scheduled redemptions as of September 30, 2023 , to be approximately $ 11 thousand. |
Manager and Other Related Par_7
Manager and Other Related Parties - Summary of Organization and Offering Expenses (Parenthetical) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Related Party Transactions [Abstract] | |
Unallocated O&O expenses on units rebates period | 120 months |
Partners Capital Account Organization And Offering Expenses Repaid | $ 11 |
Loans - Additional Information
Loans - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) Loan Loans | Mar. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) Loan Loans | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
CECL Implementation | $ 65 | $ 65 | $ 0 | ||
Principal | $ 68,235 | $ 68,235 | $ 72,533 | ||
Debt instrument, Average extension period | 26 months | 12 months | |||
Commitment to Lend, Outstanding | $ 0 | $ 0 | |||
Principal | 68,235 | $ 68,235 | 72,533 | ||
Number of loans | Loan | 0 | ||||
Allowance for loan losses | 120 | $ 120 | 55 | ||
Loans Receivable Largest Loan (in Dollars) | $ 6,200 | $ 6,200 | 6,735 | ||
Mortgage loans on Real estate number Of loans renewed | Loans | 1 | 6 | |||
Aggregate principal renewed | $ 650 | $ 14,400 | |||
Loans Receivable, Amortization Term | 30 years | ||||
CECL Model [Member] | |||||
Cumulative Effect Adjustment | 58 | ||||
Past Due 180 Or More Days [Member] | |||||
Principal | 3,725 | $ 3,725 | 1,489 | ||
Loan Payment Modification Agreement [Member] | Past Due 180 Or More Days [Member] | |||||
Principal | 990 | 990 | $ 990 | ||
Interest Only [Member] | |||||
Principal | $ 48,700 | $ 48,700 | |||
Loans Receivable number of Interest Only Loans | Loan | 29 | 29 | |||
Interest And Principal Loans [Member] | |||||
Loans Receivable, Percent of Aggregate Principal | 29% | 29% | |||
Principal | $ 19,500 | $ 19,500 | |||
Loans Receivable number of Interest Only Loans | Loan | 20 | 20 | |||
Second Lien [Member] | |||||
Number of loans | Loans | 15 | ||||
Loans Receivable, Yield of Loan Acquired | 56.93% | 56.93% | |||
Loans Receivable | $ 13,000 | $ 13,000 | |||
Largest Loan [Member] | |||||
Loans Receivable Maturity Date | Feb. 01, 2024 | ||||
Loan, interest rate | 10.50% | 10.50% | |||
Loans Receivable Largest Loan (in Dollars) | $ 6,200 | $ 6,200 | |||
Secured loans with payments in arrears | |||||
LTV percentage | 69.88% | 69.88% | |||
Loans Receivable Maturity Date | Aug. 01, 2023 | ||||
Loan, interest rate | 8.875% | 8.875% | |||
Loans Receivable | $ 760 | $ 760 | |||
Single Family [Member] | |||||
LTV percentage | 55.23% | 55.23% | |||
Loans Receivable Maturity Date | Oct. 01, 2027 | ||||
Loan, interest rate | 9.25% | 9.25% | |||
Loans Receivable | $ 596 | $ 596 | |||
First Mortgage Loans [Member] | |||||
Loans Receivable, Percent of Aggregate Principal | 81% | 81% | 82% | ||
First lien position [Member] | |||||
Principal payment arrears amount of non-performing loans | $ 3,600 | $ 3,600 | |||
Non performing number of loans | Loans | 6 | 6 | |||
Second lien position [Member] | |||||
Principal payment arrears amount of non-performing loans | $ 760 | $ 760 | |||
Non performing number of loans | Loan | 2 | 2 |
Loans - Secured Loan Principal
Loans - Secured Loan Principal Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal, beginning of period | $ 72,533 | ||
Principal, end of period | $ 68,235 | 68,235 | |
Secured Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal, beginning of period | [1] | 69,976 | 72,533 |
Loans funded | 4,980 | 22,983 | |
Principal collected | [2] | (5,936) | (28,032) |
Loans transferred to held for sale | [3] | (500) | (1,500) |
Loans transferred from related mortgage fund | 0 | 3,393 | |
Loans transferred to related mortgage funds | (285) | (1,142) | |
Recategorized | [4] | 0 | 0 |
Principal, end of period | 68,235 | 68,235 | |
First Trust Deeds [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal, beginning of period | 59,497 | ||
Principal, end of period | 55,252 | 55,252 | |
First Trust Deeds [Member] | Secured Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal, beginning of period | [1] | 57,063 | 59,250 |
Loans funded | 4,095 | 18,598 | |
Principal collected | [2] | (4,522) | (20,961) |
Loans transferred to held for sale | [3] | (500) | (1,500) |
Loans transferred from related mortgage fund | 0 | 1,461 | |
Loans transferred to related mortgage funds | (285) | (997) | |
Recategorized | [4] | (599) | (599) |
Principal, end of period | 55,252 | 55,252 | |
Second Trust Deeds [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal, beginning of period | 13,036 | ||
Principal, end of period | 12,983 | 12,983 | |
Second Trust Deeds [Member] | Secured Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Principal, beginning of period | [1] | 12,913 | 13,283 |
Loans funded | 885 | 4,385 | |
Principal collected | [2] | (1,414) | (7,071) |
Loans transferred to held for sale | [3] | 0 | 0 |
Loans transferred from related mortgage fund | 0 | 1,932 | |
Loans transferred to related mortgage funds | 0 | (145) | |
Recategorized | [4] | 599 | 599 |
Principal, end of period | $ 12,983 | $ 12,983 | |
[1] On January 1, 2023, one loan with a principal balance of $ 247 thousand was re-categorized as a second trust deed. Prior to January 1, 2023 the loan was categorized as a first trust deed. Includes principal collected and held in trust at September 30, 2023 of approximately $ 2 thousand offset by principal collected and held in trust at December 31, 2022 of approximately $ 3 thousand which was disbursed to the company in January 2023 In July 2023, one loan with principal of $ 1.0 million was sold to an unaffiliated third party. The company recognized a gain of approximately $ 8 thousand net of commissions payable to third parties. In October 2023, one loan with principal of $ 500 thousand was sold to an unaffiliated third party. The company recognized a gain of approximately $ 1 thousand. On July 1, 2023, one loan with a principal balance of $ 599 thousand was re-categorized as a second trust deed. Prior to July 1, 2023 that loan had been categorized as a first trust deed. |
Loans - Secured Loan Principa_2
Loans - Secured Loan Principal Transactions (Parenthetical) (Details) - USD ($) $ in Thousands | 1 Months Ended | |||||
Oct. 31, 2023 | Jul. 31, 2023 | Sep. 30, 2023 | Jul. 01, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Amount Includes Principal Collected and Held in Trust | $ 2 | |||||
Reclassified Loan of Second Trust Deed | $ 599 | $ 247 | ||||
Amount disbursed against loan | $ 3 | |||||
Loan to unaffiliated third party | $ 1,000 | |||||
Gain on commissions to third party | $ 8 | |||||
Subsequent Event | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan to unaffiliated third party | $ 500 | |||||
Gain on commissions to third party | $ 1 |
Loans - Secured Loans Character
Loans - Secured Loans Characteristics (Details) MortageLoan in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) MortgageLoan MortageLoan Country | Dec. 31, 2022 USD ($) MortageLoan Country MortgageLoan | |
Secured Loan Transactions [Line Items] | ||
Number of Secured Loans | $ 49 | $ 45 |
First trust deeds | MortageLoan | 34 | 30 |
Second trust deeds | MortageLoan | 15 | 15 |
Secured loans - principal | $ 68,235 | $ 72,533 |
First trust deeds | 55,252 | 59,497 |
Second trust deeds | 12,983 | 13,036 |
Average secured loan - principal | $ 1,393 | $ 1,612 |
Average principal as percent of total principal | 2% | 2.20% |
Average principal as percent of members' and manager's capital, net | 2% | 2.30% |
Average principal as percent of total assets | 1.90% | 2.10% |
Largest secured loan - principal | $ 6,200 | $ 6,735 |
Largest principal as percent of total principal | 9.10% | 9.30% |
Largest principal as percent of members' and manager's capital, net | 9% | 9.50% |
Largest principal as percent of total assets | 8.60% | 8.60% |
Smallest secured loan - principal | $ 185 | $ 146 |
Smallest principal as percent of total principal | 0.30% | 0.20% |
Smallest principal as percent of members' and manager's capital, net | 0.30% | 0.20% |
Smallest principal as percent of total assets | 0.30% | 0.20% |
Number of California counties where security is located | Country | 16 | 11 |
Largest percentage of principal in one California county | 19.70% | 26.30% |
Prepaid Interest | ||
Secured Loan Transactions [Line Items] | ||
Number of secured loans | MortgageLoan | 3 | 1 |
Number of secured loans with prepaid interest | MortgageLoan | 3 | 1 |
Prepaid Interest | $ 189 | $ 254 |
Minimum [Member] | ||
Secured Loan Transactions [Line Items] | ||
Secured loans - interest rate (fixed) | 7.30% | 6.80% |
Maximum [Member] | ||
Secured Loan Transactions [Line Items] | ||
Secured loans - interest rate (fixed) | 11.80% | 11% |
Loans - Secured Loans by Lien P
Loans - Secured Loans by Lien Position in the Collateral (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Sep. 30, 2023 MortgageLoan | Sep. 30, 2023 | Sep. 30, 2023 Loan | Dec. 31, 2022 USD ($) | Dec. 31, 2022 MortgageLoan | Dec. 31, 2022 | Dec. 31, 2022 Loan |
Loans Details Secured Loans By Lien Position In Collateral [Line Items] | ||||||||
Number of secured loans | 49 | 49 | 45 | 45 | ||||
Secured loans - principal | $ 68,235 | $ 72,533 | ||||||
Liens due other lenders at loan closing | 29,032 | 36,544 | ||||||
Appraised property value at loan closing | 184,320 | 195,261 | ||||||
Percent of total debt to appraised values (LTV) at loan closing | 55.90% | 58.30% | ||||||
Total debt | 97,267 | 109,077 | ||||||
Total principal, secured loans, Percent | 100% | 100% | ||||||
First Trust Deeds [Member] | ||||||||
Loans Details Secured Loans By Lien Position In Collateral [Line Items] | ||||||||
Number of secured loans | 34 | 34 | 30 | |||||
Secured loans - principal | 55,252 | 59,497 | ||||||
Total principal, secured loans, Percent | 81% | 82% | ||||||
Second Trust Deeds [Member] | ||||||||
Loans Details Secured Loans By Lien Position In Collateral [Line Items] | ||||||||
Number of secured loans | 15 | 15 | 15 | |||||
Secured loans - principal | $ 12,983 | $ 13,036 | ||||||
Total principal, secured loans, Percent | 19% | 18% |
Loans - Secured Loans by Proper
Loans - Secured Loans by Property Type (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Sep. 30, 2023 MortgageLoan | Sep. 30, 2023 | Sep. 30, 2023 Loan | Dec. 31, 2022 USD ($) | Dec. 31, 2022 MortgageLoan | Dec. 31, 2022 | Dec. 31, 2022 Loan | |
Loans (Details) - Secured Loans by Property Type [Line Items] | |||||||||
Number of secured loans | 49 | 49 | 45 | 45 | |||||
Total principal, secured loans | $ 68,235 | $ 72,533 | |||||||
Total principal, secured loans, Percent | 100% | 100% | |||||||
Single Family [Member] | |||||||||
Loans (Details) - Secured Loans by Property Type [Line Items] | |||||||||
Number of secured loans | MortgageLoan | [1] | 22 | 21 | ||||||
Total principal, secured loans | [1] | 20,922 | 25,360 | ||||||
Total principal, secured loans, Percent | [1] | 31% | 35% | ||||||
Multifamily [Member] | |||||||||
Loans (Details) - Secured Loans by Property Type [Line Items] | |||||||||
Number of secured loans | MortgageLoan | 6 | 6 | |||||||
Total principal, secured loans | 8,657 | 11,287 | |||||||
Total principal, secured loans, Percent | 13% | 16% | |||||||
Commercial [Member] | |||||||||
Loans (Details) - Secured Loans by Property Type [Line Items] | |||||||||
Number of secured loans | MortgageLoan | 19 | 17 | |||||||
Total principal, secured loans | 32,976 | 34,386 | |||||||
Total principal, secured loans, Percent | 48% | 47% | |||||||
Land [Member] | |||||||||
Loans (Details) - Secured Loans by Property Type [Line Items] | |||||||||
Number of secured loans | MortgageLoan | 2 | 1 | |||||||
Total principal, secured loans | $ 5,680 | $ 1,500 | |||||||
Total principal, secured loans, Percent | 8% | 2% | |||||||
[1] Single family includes one to four unit residential buildings, condominium units, townhouses and condominium complexes. At September 30, 2023, single family consists of five loans with aggregate principal of approximately $ 4.6 million that are owner occupied and 17 loans with principal of approximately $ 16.3 million that are non-owner occupied. At December 31, 2022 , single family property type consisted of 10 loans with principal of approximately $ 11.6 million that are owner occupied and 11 loans with principal of approximately $ 13.8 million that are non-owner occupied. |
Loans - Secured Loans by Prop_2
Loans - Secured Loans by Property Type (Parenthetical) (Details) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) Loans | Dec. 31, 2022 USD ($) MortgageLoan Loan | |
Loans (Details) - Secured Loans by Property Type [Line Items] | ||
Principal | $ 68,235 | $ 72,533 |
Single Family Property-Owner Occupied [Member] | ||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||
Number of secured loans | Loan | 10 | |
Principal | $ 4,600 | $ 11,600 |
Single Family Property-NonOwner Occupied [Member] | ||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||
Number of secured loans | 17 | 11 |
Principal | $ 16,300 | $ 13,800 |
Loans - Secured Loans Distribut
Loans - Secured Loans Distributed Principal Within California (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 68,235 | $ 72,533 | |
Total principal, secured loans, Percent | 100% | 100% | |
San Francisco Bay Area [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | [1] | $ 43,593 | $ 53,603 |
Total principal, secured loans, Percent | [1] | 63.90% | 74% |
Santa Clara [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | [1] | $ 12,393 | $ 19,042 |
Total principal, secured loans, Percent | [1] | 18.20% | 26.30% |
San Francisco [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | [1] | $ 13,430 | $ 13,801 |
Total principal, secured loans, Percent | [1] | 19.70% | 19% |
San Mateo [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | [1] | $ 11,029 | $ 13,054 |
Total principal, secured loans, Percent | [1] | 16.10% | 18% |
Alameda [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | [1] | $ 5,516 | $ 6,062 |
Total principal, secured loans, Percent | [1] | 8.10% | 8.40% |
Contra Costa [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | [1] | $ 0 | $ 1,000 |
Total principal, secured loans, Percent | [1] | 0% | 1.40% |
Napa [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | [1] | $ 640 | $ 644 |
Total principal, secured loans, Percent | [1] | 0.90% | 0.90% |
Solano [member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | [1] | $ 185 | $ 0 |
Total principal, secured loans, Percent | [1] | 0.30% | 0% |
Marin [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | [1] | $ 400 | $ 0 |
Total principal, secured loans, Percent | [1] | 0.60% | 0% |
Other Northern California [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 4,877 | $ 1,905 | |
Total principal, secured loans, Percent | 7.10% | 2.60% | |
Placer [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 1,968 | $ 1,500 | |
Total principal, secured loans, Percent | 2.90% | 2.10% | |
Tehama [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 405 | $ 405 | |
Total principal, secured loans, Percent | 0.60% | 0.50% | |
Sacramento [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 552 | $ 0 | |
Total principal, secured loans, Percent | 0.80% | 0% | |
San Joaquin [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 750 | $ 0 | |
Total principal, secured loans, Percent | 1.10% | 0% | |
Butte [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 1,202 | $ 0 | |
Total principal, secured loans, Percent | 1.70% | 0% | |
Northern California [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 48,470 | $ 55,508 | |
Total principal, secured loans, Percent | 71% | 76.60% | |
Los Angeles [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 3,879 | $ 3,512 | |
Total principal, secured loans, Percent | 5.70% | 4.80% | |
San Diego [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 6,796 | $ 6,704 | |
Total principal, secured loans, Percent | 10% | 9.20% | |
Orange [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 7,190 | $ 6,809 | |
Total principal, secured loans, Percent | 10.50% | 9.40% | |
Other Southern California [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 1,900 | $ 0 | |
Total principal, secured loans, Percent | 2.80% | 0% | |
Southern California Coastal [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 19,765 | $ 17,025 | |
Total principal, secured loans, Percent | 29% | 23.40% | |
Southern California [Member] | |||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Total principal, secured loans | $ 17,865 | $ 17,025 | |
Total principal, secured loans, Percent | 26.20% | 23.40% | |
[1] Includes Silicon Valley |
Loans - Secured Loans Principal
Loans - Secured Loans Principal Scheduled Maturities (Details) $ in Thousands | Sep. 30, 2023 USD ($) | Sep. 30, 2023 MortgageLoan | Sep. 30, 2023 | Sep. 30, 2023 Loan | Sep. 30, 2023 MortageLoan | Dec. 31, 2022 USD ($) | Dec. 31, 2022 MortgageLoan | Dec. 31, 2022 | Dec. 31, 2022 Loan | |
Financing Receivable, Past Due [Line Items] | ||||||||||
2023, Loans | MortgageLoan | 7 | |||||||||
2024, Loans | MortgageLoan | 19 | |||||||||
2025, Loans | MortgageLoan | 10 | |||||||||
2026, Loans | MortgageLoan | 2 | |||||||||
2027, Loans | MortgageLoan | 3 | |||||||||
Thereafter, Loans | MortgageLoan | 4 | |||||||||
Total scheduled maturities, Loans | MortageLoan | 45 | |||||||||
Matured(6) Loans | MortgageLoan | [1] | 4 | ||||||||
Number of secured loans | 49 | 49 | 45 | 45 | ||||||
2023, Principal | $ 10,287 | |||||||||
2024, Principal | 36,505 | |||||||||
2025, Principal | 12,801 | |||||||||
2026, Principal | 585 | |||||||||
2027, Principal | 1,918 | |||||||||
Thereafter, Principal | 1,787 | |||||||||
Total scheduled maturities, Principal | 63,883 | |||||||||
Matured(6) Principal | [1] | 4,352 | ||||||||
Total principal, secured loans | 68,235 | $ 72,533 | ||||||||
2023, Percent | 15% | |||||||||
2024, Percent | 53% | |||||||||
2025, Percent | 19% | |||||||||
2026, Percent | 1% | |||||||||
2027, Percent | 3% | |||||||||
Thereafter, Percent | 3% | |||||||||
Total scheduled maturities, Percent | 94% | |||||||||
Matured(6) Percent | [1] | 6% | ||||||||
Total principal, secured loans, Percent | 100% | 100% | ||||||||
First Trust Deeds [Member] | ||||||||||
Financing Receivable, Past Due [Line Items] | ||||||||||
2023, Loans | MortgageLoan | 5 | |||||||||
2024, Loans | MortgageLoan | 13 | |||||||||
2025, Loans | MortgageLoan | 5 | |||||||||
2026, Loans | MortgageLoan | 2 | |||||||||
2027, Loans | MortgageLoan | 2 | |||||||||
Thereafter, Loans | MortgageLoan | 4 | |||||||||
Total scheduled maturities, Loans | MortgageLoan | 31 | |||||||||
Matured(6) Loans | MortgageLoan | [1] | 3 | ||||||||
Number of secured loans | 34 | 34 | 30 | |||||||
2023, Principal | 8,045 | |||||||||
2024, Principal | 31,778 | |||||||||
2025, Principal | 8,143 | |||||||||
2026, Principal | 585 | |||||||||
2027, Principal | 1,322 | |||||||||
Thereafter, Principal | 1,787 | |||||||||
Total scheduled maturities, Principal | 51,660 | |||||||||
Matured(6) Principal | [1] | 3,592 | ||||||||
Total principal, secured loans | 55,252 | 59,497 | ||||||||
Total principal, secured loans, Percent | 81% | 82% | ||||||||
Second Trust Deeds [Member] | ||||||||||
Financing Receivable, Past Due [Line Items] | ||||||||||
2023, Loans | MortgageLoan | 2 | |||||||||
2024, Loans | MortgageLoan | 6 | |||||||||
2025, Loans | MortgageLoan | 5 | |||||||||
2026, Loans | MortgageLoan | 0 | |||||||||
2027, Loans | MortgageLoan | 1 | |||||||||
Thereafter, Loans | MortgageLoan | 0 | |||||||||
Total scheduled maturities, Loans | MortgageLoan | 14 | |||||||||
Matured(6) Loans | MortgageLoan | [1] | 1 | ||||||||
Number of secured loans | 15 | 15 | 15 | |||||||
2023, Principal | 2,242 | |||||||||
2024, Principal | 4,727 | |||||||||
2025, Principal | 4,658 | |||||||||
2026, Principal | 0 | |||||||||
2027, Principal | 596 | |||||||||
Thereafter, Principal | 0 | |||||||||
Total scheduled maturities, Principal | 12,223 | |||||||||
Matured(6) Principal | [1] | 760 | ||||||||
Total principal, secured loans | $ 12,983 | $ 13,036 | ||||||||
Total principal, secured loans, Percent | 19% | 18% | ||||||||
[1] See Delinquency/Secured loans with payments in arrears below for additional information on matured loans. |
Loans - Past Due Financing Rece
Loans - Past Due Financing Receivables (Details) $ in Thousands | Sep. 30, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) Loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 49 | 45 |
Principal | $ | $ 68,235 | $ 72,533 |
Past Due 30-89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 4 | 1 |
Principal | $ | $ 5,941 | $ 4,940 |
90-179 days | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 1 | 2 |
Principal | $ | $ 857 | $ 1,681 |
Past Due 180 Or More Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 3 | 2 |
Principal | $ | $ 3,725 | $ 1,489 |
Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 41 | 40 |
Principal | $ | $ 57,712 | $ 64,423 |
Total Payments Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Number of loans | Loan | 8 | 5 |
Principal | $ | $ 10,523 | $ 8,110 |
Loans - Schedule of Payments in
Loans - Schedule of Payments in Arrears Past Due Financing Receivables (Details) $ in Thousands | Sep. 30, 2023 USD ($) Loans | |
30-89 days [Member] | ||
Loans Details Secured Loans By Property Type Of Collateral [Line Items] | ||
Number of loans | Loans | 1 | |
Number of loans | Loans | 3 | |
Past maturity, principal | $ 760 | |
Monthlypayments | 0 | |
Past maturity, interest | 0 | [1] |
Monthly payments, interest | 47 | [1] |
Total payments | $ 807 | |
Past Due 90-179 Days [Member] | ||
Loans Details Secured Loans By Property Type Of Collateral [Line Items] | ||
Number of loans | Loans | 1 | |
Number of loans | Loans | 0 | |
Past maturity, principal | $ 857 | |
Monthlypayments | 0 | |
Past maturity, interest | 0 | [1] |
Monthly payments, interest | 0 | [1] |
Total payments | $ 857 | |
Past Due 180 Or More Days [Member] | ||
Loans Details Secured Loans By Property Type Of Collateral [Line Items] | ||
Number of loans | Loans | 2 | |
Number of loans | Loans | 1 | |
Past maturity, principal | $ 2,735 | |
Monthlypayments | 0 | |
Past maturity, interest | 11 | [1] |
Monthly payments, interest | 54 | [1] |
Total payments | $ 2,800 | |
Total Payments Past Due | ||
Loans Details Secured Loans By Property Type Of Collateral [Line Items] | ||
Number of loans | Loans | 4 | |
Number of loans | Loans | 4 | |
Past maturity, principal | $ 4,352 | |
Monthlypayments | 0 | |
Past maturity, interest | 11 | [1] |
Monthly payments, interest | 101 | [1] |
Total payments | $ 4,464 | |
[1] September 2023 interest is due October 1, 2023 and is not included in the payments in arrears at September 30, 2023 . |
Loans - Secured loans with paym
Loans - Secured loans with payments in arrears, principal by LTV and lien position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | $ 68,235 | $ 72,533 | |
Secured loans with payments in arrears | Total past due [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 10,523 | |
Percent | [1],[2] | 15.40% | |
Secured loans with payments in arrears | Less Than 40% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Secured loans with payments in arrears | 40-49% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 4,180 | |
Percent | [1],[2] | 6.10% | |
Secured loans with payments in arrears | 50-59% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 1,905 | |
Percent | [1],[2] | 2.80% | |
Secured loans with payments in arrears | 60-69% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 3,678 | |
Percent | [1],[2] | 5.40% | |
Secured loans with payments in arrears | Subtotal less than 70% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 9,763 | |
Percent | [1],[2] | 14.30% | |
Secured loans with payments in arrears | 70-79% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 760 | |
Percent | [1],[2] | 1.10% | |
Secured loans with payments in arrears | Subtotal less than 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 10,523 | |
Percent | [1],[2] | 15.40% | |
Secured loans with payments in arrears | More than or equal to 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
First Trust Deeds [Member] | Secured loans with payments in arrears | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 9,167 | |
Percent | [1],[2] | 13.40% | |
First Trust Deeds [Member] | Secured loans with payments in arrears | Less Than 40% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
First Trust Deeds [Member] | Secured loans with payments in arrears | 40-49% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 4,180 | |
Percent | [1],[2] | 6.10% | |
First Trust Deeds [Member] | Secured loans with payments in arrears | 50-59% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 1,905 | |
Percent | [1],[2] | 2.80% | |
First Trust Deeds [Member] | Secured loans with payments in arrears | 60-69% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 3,082 | |
Percent | [1],[2] | 4.50% | |
First Trust Deeds [Member] | Secured loans with payments in arrears | Subtotal less than 70% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 9,167 | |
Percent | [1],[2] | 13.40% | |
First Trust Deeds [Member] | Secured loans with payments in arrears | 70-79% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
First Trust Deeds [Member] | Secured loans with payments in arrears | Subtotal less than 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 9,167 | |
Percent | [1],[2] | 13.40% | |
First Trust Deeds [Member] | Secured loans with payments in arrears | More than or equal to 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Secured loans with payments in arrears | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 1,356 | |
Percent | [1],[2] | 2% | |
Second Trust Deeds [Member] | Secured loans with payments in arrears | Less Than 40% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Secured loans with payments in arrears | 40-49% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Secured loans with payments in arrears | 50-59% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Secured loans with payments in arrears | 60-69% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 596 | |
Percent | [1],[2] | 0.90% | |
Second Trust Deeds [Member] | Secured loans with payments in arrears | Subtotal less than 70% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 596 | |
Percent | [1],[2] | 0.90% | |
Second Trust Deeds [Member] | Secured loans with payments in arrears | 70-79% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 760 | |
Percent | [1],[2] | 1.10% | |
Second Trust Deeds [Member] | Secured loans with payments in arrears | Subtotal less than 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 1,356 | |
Percent | [1],[2] | 2% | |
Second Trust Deeds [Member] | Secured loans with payments in arrears | More than or equal to 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
[1] LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 . Percent of total principal of secured loans (totaling $ 68.2 million) at September 30, 2023 |
Loans - Secured loans with pa_2
Loans - Secured loans with payments in arrears, principal by LTV and lien position (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Secured loans principal amount | $ 68,513 | $ 72,733 |
Secured loans - principal | $ 68,235 | $ 72,533 |
Loans - Matured loans, principa
Loans - Matured loans, principal by LTV and lien position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | $ 68,235 | $ 72,533 | |
Matured loans | Total Past Due [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 4,352 | |
Percent | [1],[2] | 6.40% | |
Matured loans | Less Than 40% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Matured loans | 40-49% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Matured loans | 50-59% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 1,500 | |
Percent | [1],[2] | 2.20% | |
Matured loans | 60-69% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 2,092 | |
Percent | [1],[2] | 3.10% | |
Matured loans | Subtotal less than 70% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 3,592 | |
Percent | [1],[2] | 5.30% | |
Matured loans | 70-79% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 760 | |
Percent | [1],[2] | 1.10% | |
Matured loans | Subtotal less than 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 4,352 | |
Percent | [1],[2] | 6.40% | |
Matured loans | More than or equal to 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
First Trust Deeds [Member] | Matured loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 3,592 | |
Percent | [1],[2] | 5.30% | |
First Trust Deeds [Member] | Matured loans | Less Than 40% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
First Trust Deeds [Member] | Matured loans | 40-49% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
First Trust Deeds [Member] | Matured loans | 50-59% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 1,500 | |
Percent | [1],[2] | 2.20% | |
First Trust Deeds [Member] | Matured loans | 60-69% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 2,092 | |
Percent | [1],[2] | 3.10% | |
First Trust Deeds [Member] | Matured loans | Subtotal less than 70% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 3,592 | |
Percent | [1],[2] | 5.30% | |
First Trust Deeds [Member] | Matured loans | 70-79% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
First Trust Deeds [Member] | Matured loans | Subtotal less than 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 3,592 | |
Percent | [1],[2] | 5.30% | |
First Trust Deeds [Member] | Matured loans | More than or equal to 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Matured loans | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 760 | |
Percent | [1],[2] | 1.10% | |
Second Trust Deeds [Member] | Matured loans | Less Than 40% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Matured loans | 40-49% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Matured loans | 50-59% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Matured loans | 60-69% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Matured loans | Subtotal less than 70% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
Second Trust Deeds [Member] | Matured loans | 70-79% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 760 | |
Percent | [1],[2] | 1.10% | |
Second Trust Deeds [Member] | Matured loans | Subtotal less than 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 760 | |
Percent | [1],[2] | 1.10% | |
Second Trust Deeds [Member] | Matured loans | More than or equal to 80% [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Principal | [1] | $ 0 | |
Percent | [1],[2] | 0% | |
[1] LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 . Percent of total principal of secured loans (totaling $ 68.2 million) at September 30, 2023 . |
Loans - Matured loans, princi_2
Loans - Matured loans, principal by LTV and lien position (Parenthetical) (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Secured loans principal amount | $ 68,513 | $ 72,733 |
Secured loans - principal | $ 68,235 | $ 72,533 |
Loans - Activity in the Allowan
Loans - Activity in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jan. 01, 2023 | Jan. 01, 2022 | Mar. 31, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Balance, beginning of period | $ 55 | $ 55 | $ 55 | $ 55 | $ 55 |
CECL Implementation | 65 | 65 | 0 | ||
Adjusted Balance, beginning of period | 120 | 55 | |||
Provision (Recovery) for loan losses | 0 | 0 | |||
Charge-offs | 0 | 0 | |||
Balance, end of period | 120 | 55 | |||
Principal and Advances | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Balance, beginning of period | 30 | 30 | 30 | 30 | 30 |
CECL Implementation | 30 | 0 | |||
Adjusted Balance, beginning of period | 60 | 30 | |||
Provision (Recovery) for loan losses | 0 | 0 | |||
Charge-offs | 0 | 0 | |||
Balance, end of period | 60 | 30 | |||
Interest | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Balance, beginning of period | 25 | 25 | $ 25 | 25 | 25 |
CECL Implementation | 35 | 0 | |||
Adjusted Balance, beginning of period | $ 60 | $ 25 | |||
Provision (Recovery) for loan losses | 0 | 0 | |||
Charge-offs | 0 | 0 | |||
Balance, end of period | $ 60 | $ 25 |
Loans - Secured loans scheduled
Loans - Secured loans scheduled maturities Loan Principal and LTV (Details) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 USD ($) MortgageLoan Loans | Dec. 31, 2022 USD ($) | |
Financing Receivable, Past Due [Line Items] | ||
2024, Loans | MortgageLoan | 19 | |
2025, Loans | MortgageLoan | 10 | |
2026, Loans | MortgageLoan | 2 | |
2027, Loans | MortgageLoan | 3 | |
2024, Principal | $ 36,505 | |
2025, Principal | 12,801 | |
2026, Principal | 585 | |
2027, Principal | 1,918 | |
Thereafter, Principal | 1,787 | |
Total principal, secured loans | $ 68,235 | $ 72,533 |
First Trust Deeds [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2024, Loans | MortgageLoan | 13 | |
2025, Loans | MortgageLoan | 5 | |
2026, Loans | MortgageLoan | 2 | |
2027, Loans | MortgageLoan | 2 | |
2024, Principal | $ 31,778 | |
2025, Principal | 8,143 | |
2026, Principal | 585 | |
2027, Principal | 1,322 | |
Thereafter, Principal | 1,787 | |
Total principal, secured loans | $ 55,252 | 59,497 |
Second Trust Deeds [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
2024, Loans | MortgageLoan | 6 | |
2025, Loans | MortgageLoan | 5 | |
2026, Loans | MortgageLoan | 0 | |
2027, Loans | MortgageLoan | 1 | |
2024, Principal | $ 4,727 | |
2025, Principal | 4,658 | |
2026, Principal | 0 | |
2027, Principal | 596 | |
Thereafter, Principal | 0 | |
Total principal, secured loans | $ 12,983 | $ 13,036 |
CECL | ||
Financing Receivable, Past Due [Line Items] | ||
September 30, 2023 | Loans | 49 | |
2023, Loans | Loans | 38 | |
2024, Loans | Loans | 19 | |
2025, Loans | Loans | 9 | |
2026, Loans | Loans | 7 | |
2027, Loans | Loans | 4 | |
2028 Loans | Loans | 2 | |
2033 Loans | Loans | 1 | |
2035 Loans | Loans | 0 | |
September 30, 2023 | $ 68,235 | |
2023, Principal | 53,596 | |
2024, Principal | 17,091 | |
2025, Principal | 4,290 | |
2026, Principal | 3,705 | |
2027, Principal | 1,787 | |
2028 Principal | 619 | |
2033 Principal | 219 | |
Thereafter, Principal | $ 0 | |
September 30, 2023 | 55.90% | |
2023, LTV | 55% | |
2024, LTV | 51.90% | |
2025, LTV | 51% | |
2026, LTV | 54.20% | |
2027, LTV | 43.90% | |
2028, LTV | 25% | |
2033, LTV | 37.20% | |
2035, LTV | 0% | |
CECL | First Trust Deeds [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
September 30, 2023 | Loans | 34 | |
2023, Loans | Loans | 26 | |
2024, Loans | Loans | 13 | |
2025, Loans | Loans | 8 | |
2026, Loans | Loans | 6 | |
2027, Loans | Loans | 4 | |
2028 Loans | Loans | 2 | |
2033 Loans | Loans | 1 | |
2035 Loans | Loans | 0 | |
September 30, 2023 | $ 55,252 | |
2023, Principal | 43,615 | |
2024, Principal | 11,837 | |
2025, Principal | 3,694 | |
2026, Principal | 3,109 | |
2027, Principal | 1,787 | |
2028 Principal | 619 | |
2033 Principal | 219 | |
Thereafter, Principal | $ 0 | |
September 30, 2023 | 55.70% | |
2023, LTV | 54.90% | |
2024, LTV | 50.50% | |
2025, LTV | 50.30% | |
2026, LTV | 54% | |
2027, LTV | 43.90% | |
2028, LTV | 25% | |
2033, LTV | 37.20% | |
2035, LTV | 0% | |
CECL | Second Trust Deeds [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
September 30, 2023 | Loans | 15 | |
2023, Loans | Loans | 12 | |
2024, Loans | Loans | 6 | |
2025, Loans | Loans | 1 | |
2026, Loans | Loans | 1 | |
2027, Loans | Loans | 0 | |
2028 Loans | Loans | 0 | |
2033 Loans | Loans | 0 | |
2035 Loans | Loans | 0 | |
September 30, 2023 | $ 12,983 | |
2023, Principal | 9,981 | |
2024, Principal | 5,254 | |
2025, Principal | 596 | |
2026, Principal | 596 | |
2027, Principal | 0 | |
2028 Principal | 0 | |
2033 Principal | 0 | |
Thereafter, Principal | $ 0 | |
September 30, 2023 | 56.90% | |
2023, LTV | 55.30% | |
2024, LTV | 55.10% | |
2025, LTV | 55.20% | |
2026, LTV | 55.20% | |
2027, LTV | 0% | |
2028, LTV | 0% | |
2033, LTV | 0% | |
2035, LTV | 0% |
Loans - Summary of Secured Loan
Loans - Summary of Secured Loans in Non Accrual Status (Details) $ in Thousands | Sep. 30, 2023 USD ($) MortgageLoan | Dec. 31, 2022 USD ($) MortgageLoan | |
Financing Receivable, Past Due [Line Items] | |||
Principal | $ 68,235 | $ 72,533 | |
Accrued interest | $ 567 | $ 490 | |
Nonaccrual Status [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Number of loans | MortgageLoan | 0 | 2 | |
Principal | $ 1,494 | ||
Accrued interest | [1] | 4 | |
Forgone interest | 58 | ||
Nonaccrual Status [Member] | Principal [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Principal | 1,489 | ||
Nonaccrual Status [Member] | Advances [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Principal | $ 1 | ||
[1] Accrued interest in the table above is the amount of interest accrued prior to the loan being placed on non-accrual status, net of |
Loans - Vintages Secured loans,
Loans - Vintages Secured loans, principals Originated (Details) $ in Thousands | Sep. 30, 2023 USD ($) Loans | |
Total past due [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 68,235 | [1] |
Percent | 100% | [1] |
First Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 55,252 | [1] |
Percent | 80.90% | [1] |
Count | Loans | 34 | [1] |
Second Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 12,983 | [1] |
Percent | 19.10% | [2] |
Count | Loans | 15 | [1] |
Less Than 40% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 3,817 | [1] |
Percent | 5.70% | [1] |
Less Than 40% [Member] | First Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 2,932 | [1] |
Percent | 4.30% | [1] |
Count | Loans | 7 | [1] |
Less Than 40% [Member] | Second Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 885 | [1] |
Percent | 1.40% | [1] |
Count | Loans | 2 | [1] |
40-49% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 25,123 | [1] |
Percent | 36.80% | [1] |
40-49% [Member] | First Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 21,623 | [1] |
Percent | 31.70% | |
Count | Loans | 7 | [1] |
40-49% [Member] | Second Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 3,500 | [1] |
Percent | 5.10% | [1] |
Count | Loans | 2 | [1] |
50-59% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 4,777 | [1] |
Percent | 7% | [1] |
50-59% [Member] | First Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 3,647 | [1] |
Percent | 5.30% | |
Count | Loans | 4 | [1] |
50-59% [Member] | Second Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 1,130 | [1] |
Percent | 1.70% | [1] |
Count | Loans | 3 | [1] |
60-69% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 28,298 | [1] |
Percent | 41.50% | [1] |
60-69% [Member] | First Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 24,409 | [1] |
Percent | 35.80% | |
Count | Loans | 14 | [1] |
60-69% [Member] | Second Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 3,889 | [1] |
Percent | 5.70% | [1] |
Count | Loans | 3 | [1] |
Subtotal less than 70% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 62,015 | [1] |
Percent | 91% | [1] |
Subtotal less than 70% [Member] | First Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 52,611 | [1] |
Percent | 77.10% | |
Count | Loans | 32 | [1] |
Subtotal less than 70% [Member] | Second Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 9,404 | [1] |
Percent | 13.90% | [1] |
Count | Loans | 10 | [1] |
70-79% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 4,220 | [1] |
Percent | 6.10% | [1] |
70-79% [Member] | First Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 641 | [1] |
Percent | 0.90% | |
Count | Loans | 1 | [1] |
70-79% [Member] | Second Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 3,579 | [1] |
Percent | 5.20% | [1] |
Count | Loans | 5 | [1] |
Subtotal less than 80% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 66,235 | [1] |
Percent | 97.10% | [2] |
Subtotal less than 80% [Member] | First Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 53,252 | [1] |
Percent | 78% | [1] |
Count | Loans | 33 | [1] |
Subtotal less than 80% [Member] | Second Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 12,983 | [1] |
Percent | 19.10% | [1] |
Count | Loans | 15 | [1] |
More than or equal to 80% [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 2,000 | [1] |
Percent | 2.90% | [2] |
More than or equal to 80% [Member] | First Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 2,000 | [1] |
Percent | 2.90% | [1] |
Count | Loans | 1 | [1] |
More than or equal to 80% [Member] | Second Trust Deeds [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Principal | $ 0 | [1] |
Percent | 0% | [2] |
Count | Loans | 0 | [1] |
[1] LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 . LTV classifications in the table above are based on principal, advances and interest unpaid at September 30, 2023 |
Line of Credit - Schedule of Li
Line of Credit - Schedule of Line of Credit Facilities Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Disclosure [Abstract] | ||
Balance, January 1 | $ 9,900 | $ 8,480 |
Draws | 2,466 | 9,900 |
Repayments | (6,409) | (8,480) |
Balance, September 30 | 5,957 | 9,900 |
Line of credit - average daily balance | $ 8,250 | $ 8,000 |
Line of Credit - Additional Inf
Line of Credit - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Short Term Debt [Line Items] | |||||
Line of credit facility, maximum amount outstanding during period | $ 10,000,000 | $ 10,000,000 | |||
Line of credit facility, description | For a fee of one-quarter of one percent (0.25%), RMI IX has the option prior to maturity date to convert the then outstanding principal balance under the 2022 credit agreement to a two-year term loan maturing in March 2026. | ||||
Line of credit facility, description | interest on outstanding principal was payable monthly and accrued at the per annum rate of the greater of (i) five percent (5%) or (ii) the sum of the one-month LIBOR rate plus three and one-quarter percent (3.25%). | ||||
Line of credit facility, interest rate | (8.63%) | (8.63%) | |||
Pledged loans, principal amount | $ 9,500,000 | $ 9,500,000 | $ 24,500,000 | ||
Debt issuance costs | 0 | $ 57,000 | |||
Amortization of debt issuance costs | $ 7,000 | $ 7,000 | $ 21,000 | $ 28,000 | |
Debt Instrument, Term | 26 months | 12 months | |||
Minimum [Member] | |||||
Short Term Debt [Line Items] | |||||
Line of credit facility, maximum amount outstanding during period | $ 10,000,000 | $ 10,000,000 | |||
Maximum [Member] | |||||
Short Term Debt [Line Items] | |||||
Line of credit facility, maximum amount outstanding during period | $ 10,000,000 | $ 10,000,000 | |||
Pledged loans, advance amount | $ 10,000,000 | ||||
Revolving Credit Facility [Member] | |||||
Short Term Debt [Line Items] | |||||
Line of credit facility, interest rate | 5% | 5% | |||
Compensating balance, minimum | $ 1,000,000 | $ 1,000,000 | |||
Interest on non maintenance of compensating balance | 0.25% | ||||
Line of credit facility, average rate | 50% | ||||
Line of credit facility, unused line of fee | 0.50% | ||||
Line of Credit [Member] | Financial Asset, 61 Days Past Due [Member] | |||||
Short Term Debt [Line Items] | |||||
Loan payment, quartely | 10% | ||||
Line of Credit [Member] | Minimum [Member] | |||||
Short Term Debt [Line Items] | |||||
Minimum tangible net worth | $ 50,000,000 | $ 50,000,000 | |||
Debt service coverage ratio | 1 | ||||
Line of Credit [Member] | Maximum [Member] | |||||
Short Term Debt [Line Items] | |||||
Debt service coverage ratio | 2 | ||||
Ameribor | Revolving Credit Facility [Member] | |||||
Short Term Debt [Line Items] | |||||
Line of credit facility, interest rate | 3.25% | 3.25% | |||
Reference Rate [Member] | Revolving Credit Facility [Member] | |||||
Short Term Debt [Line Items] | |||||
Line of credit facility, interest rate | 3.25% | 3.25% | |||
Debt Instrument, Term | 2 years |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Event [Line Items] | |
Subsequent Event Description | The manager evaluated events occurring subsequent to September 30, 2023 and determined that there were no events or transactions occurring during this reporting period that require recognition or disclosure in the unaudited financial statements |