Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Mar. 30, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | Redwood Mortgage Investors IX | |
Entity Central Index Key | 1,448,038 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 34,154,936 | |
Entity Public Float | $ 0 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 1,808,839 | $ 1,264,314 |
Loans | ||
Principal | 27,360,138 | 19,185,660 |
Advances | 22,731 | 12,307 |
Accrued interest | 177,209 | 144,277 |
Loan balances secured by deeds of trust | 27,560,078 | 19,342,244 |
Loan administrative fees, net | 86,398 | 117,686 |
Total Loans | 27,646,476 | 19,459,930 |
Receivable from affiliate | 77,347 | |
Total assets | 29,455,315 | 20,801,591 |
LIABILITIES, INVESTORS IN APPLICANT STATUS, AND MEMBERS' CAPITAL | ||
Liabilities - Accounts Payable | 2,664 | 319 |
Investors in applicant status | 1,022,865 | 1,257,000 |
Members' capital, net | 30,171,527 | 20,799,872 |
Receivable from manager (formation loan) | (1,741,741) | (1,255,600) |
Members' capital, net, less formation loan | 28,429,786 | 19,544,272 |
Total liabilities, investors in applicant status and members' capital | $ 29,455,315 | $ 20,801,591 |
Income Statement
Income Statement - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues, net | ||
Interest income - Loans | $ 1,831,818 | $ 1,363,517 |
Late fees | 11,246 | 10,424 |
Total revenues | 1,843,064 | 1,373,941 |
Operations Expense | ||
Mortgage servicing fees | 53,647 | 40,762 |
Asset management fees, net (Note 3) | 37,454 | |
Costs from Redwood Mortgage Corp., net (Note 3) | 79,403 | |
Professional services, net (Note 3) | 18,025 | 99,449 |
Other | 14,260 | 23,150 |
Total operations expense | 85,932 | 280,218 |
Net income | 1,757,132 | 1,093,723 |
Members (99%) | 1,739,561 | 1,082,786 |
Managers (1%) | 17,571 | 10,937 |
Net income | $ 1,757,132 | $ 1,093,723 |
Income Statement (Parenthetical
Income Statement (Parenthetical) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Members investment | 99.00% | 99.00% |
Managers investment | 1.00% | 1.00% |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 1,757,132 | $ 1,093,723 |
Investors In Applicant Status [Member] | ||
Balances | 1,257,000 | 443,350 |
Balances | 1,022,865 | 1,257,000 |
Investors In Applicant Status [Member] | Contributions On Application [Member] | ||
Partners capital acounts | 8,733,081 | 5,223,978 |
Investors In Applicant Status [Member] | Contributions Admitted To Members Capital | ||
Partners capital acounts | (8,960,216) | (4,417,328) |
Investors In Applicant Status [Member] | Premiums Paid On Application By R M C [Member] | ||
Partners capital acounts | 4,620 | 12,250 |
Investors In Applicant Status [Member] | Premiums Admitted To Members Capital | ||
Partners capital acounts | (11,620) | (5,250) |
Capital Members [Member] | ||
Balances | 21,720,875 | 17,362,065 |
Net income | 1,739,561 | 1,082,786 |
Balances | 31,403,178 | 21,720,875 |
Capital Members [Member] | Contributions Admitted To Members Capital | ||
Partners capital acounts | 8,960,216 | 4,417,328 |
Capital Members [Member] | Premiums Admitted To Members Capital | ||
Partners capital acounts | 11,620 | 5,250 |
Capital Members [Member] | Earnings Distributed To Members [Member] | ||
Partners capital acounts | (1,738,384) | (1,311,718) |
Capital Members [Member] | Earnings Distributed Used In DRIP [Member] | ||
Partners capital acounts | 995,321 | 713,481 |
Capital Members [Member] | Member's Redemptions [Member] | ||
Partners capital acounts | (1,077,996) | (548,317) |
Capital Members [Member] | Manager Suplementally Contributed Member Capital [Member] | ||
Partners capital acounts | 791,965 | |
Managers Capital Net [Member] | ||
Balances | 32,268 | 25,755 |
Net income | 17,571 | 10,937 |
Balances | 47,874 | 32,268 |
Managers Capital Net [Member] | Contributions Admitted To Members Capital | ||
Partners capital acounts | 8,972 | 4,422 |
Managers Capital Net [Member] | Earnings Distributed To Members [Member] | ||
Partners capital acounts | (10,937) | (8,846) |
Unallocated Syndication Costs Members [Member] | ||
Balances | (953,271) | (754,491) |
Organization and offering expenses | (408,023) | (200,047) |
Early withdrawal penalties | 4,813 | 1,267 |
Balances | (1,279,525) | (953,271) |
Unallocated Syndication Costs Members [Member] | Manager Redemptions [Member] | ||
Partners capital acounts | 76,956 | |
Members Capital, Net [Member] | ||
Balances | 20,799,872 | 16,633,329 |
Net income | 1,757,132 | 1,093,723 |
Organization and offering expenses | (408,023) | (200,047) |
Early withdrawal penalties | 4,813 | 1,267 |
Balances | 30,171,527 | 20,799,872 |
Members Capital, Net [Member] | Contributions Admitted To Members Capital | ||
Partners capital acounts | 8,969,188 | 4,421,750 |
Members Capital, Net [Member] | Premiums Admitted To Members Capital | ||
Partners capital acounts | 11,620 | 5,250 |
Members Capital, Net [Member] | Earnings Distributed To Members [Member] | ||
Partners capital acounts | (1,749,321) | (1,320,564) |
Members Capital, Net [Member] | Earnings Distributed Used In DRIP [Member] | ||
Partners capital acounts | 995,321 | 713,481 |
Members Capital, Net [Member] | Member's Redemptions [Member] | ||
Partners capital acounts | (1,077,996) | $ (548,317) |
Members Capital, Net [Member] | Manager Suplementally Contributed Member Capital [Member] | ||
Partners capital acounts | 791,965 | |
Members Capital, Net [Member] | Manager Redemptions [Member] | ||
Partners capital acounts | $ 76,956 |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 1,757,132 | $ 1,093,723 |
Operations | ||
Interest received | 1,858,426 | 1,443,132 |
Other loan income | 11,246 | 10,574 |
Loan administrative fee paid | (28,252) | (137,712) |
Operations expense | 5,749 | (330,276) |
Net cash provided by (used in) operating activities | 1,847,169 | 985,718 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Amortization of loan administrative fees | 139,482 | 111,370 |
Interest income, imputed on formation loan | (33,146) | (25,958) |
Amortization of discount on formation loan | 33,146 | 25,958 |
Change in operating assets and liabilities | ||
Accrued interest | (32,932) | (31,756) |
Receivable from affiliate | 77,347 | (62,310) |
Prepaid Expenses | 25,000 | |
Loan administrative fees | (108,194) | (137,712) |
Accounts payable | (50) | |
Payable to affiliate | (15,650) | |
Other | 14,334 | 3,103 |
Total adjustments | 90,037 | (108,005) |
Investing - loan principal/advances | ||
Principal collected on loans | 13,981,145 | 9,514,020 |
Loans originated | (22,155,623) | (14,001,250) |
Advances on loans | (10,425) | (11,268) |
Cash used in loan principal/advances, net | (8,184,903) | (4,498,498) |
Net cash provided by (used in) operating activities | 1,847,169 | 985,718 |
Financing - members' capital | ||
Organization and offering expenses paid, net | (331,068) | (200,047) |
Formation loan funding | (620,066) | (373,728) |
Formation loan collected | 126,931 | 88,895 |
Cash from members' capital | 8,714,256 | 4,755,864 |
Net cash increase(decrease) before distributions to members | 2,376,522 | 1,243,084 |
Distributions to members | ||
Cash used in loan principal/advances, net | (8,184,903) | (4,498,498) |
Cash from members' capital | 8,714,256 | 4,755,864 |
Net cash increase(decrease) before distributions to members | 2,376,522 | 1,243,084 |
Distributions to Member | (1,831,997) | (1,155,400) |
Net increase(decrease) in cash | 544,525 | 87,684 |
Cash, beginning of period | 1,264,314 | 1,176,630 |
Cash, end of period | 1,808,839 | 1,264,314 |
Members Equity Contributions [Member] | ||
Financing - members' capital | ||
Contributions by members/manager | 8,746,494 | 5,240,744 |
Manager Suplementally Contributed Member Capital [Member] | ||
Financing - members' capital | ||
Contributions by members/manager | 791,965 | |
Earnings Distributed To Members [Member] | ||
Distributions to members | ||
Distributions to Member | (754,001) | (607,083) |
Member's Redemptions [Member] | ||
Distributions to members | ||
Distributions to Member | $ (1,077,996) | $ (548,317) |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 – ORGANIZATION AND GENERAL Redwood Mortgage Investors IX, LLC (or we, 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 first and second deeds of trust. The company is externally managed. Redwood Mortgage Corp. (or RMC) is the manager of the company. RMC’s wholly-owned subsidiary, Gymno LLC, was a co-manager prior to its merger into RMC effective June 30, 2015. The mortgage loans the company funds and/or invests in are arranged and generally are serviced by RMC. 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. The rights, duties and powers of the members and manager of the company are governed by the company’s operating agreement, the Delaware Limited Liability Company Act and the California Revised Uniform Limited Liability Company Act. Members should refer to the company’s operating agreement for complete disclosure of its provisions. The manager is required to contribute to capital one tenth of one percent (0.1%) of the aggregate capital accounts of the members. In December 2015, the manager, at its sole discretion, made a supplemental contribution to members’ capital of $791,965. This contribution offsets the cumulative difference, between net income and distributions to members for all periods through December 31, 2014. Members representing a majority of the outstanding units may, without the concurrence of the managers, 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. Profits and losses are allocated among the members according to their respective capital accounts monthly after one percent (1%) of the profits and losses are allocated to the manager. The monthly results are subject to subsequent adjustment as a result of quarterly and year-end accounting and reporting. Investors should not expect the company to provide tax benefits of the type commonly associated with limited liability company tax shelter investments. Federal and state income taxes are the obligation of the members, if and when taxes apply, other than the annual California franchise tax and any California LLC cash receipts taxes paid by the company. The ongoing sources of funds for loans are the proceeds from (1) sale of members’ units, including units sold by reinvestment of distributions, (2) loan payoffs, (3) borrowers’ monthly principal and interest payments, and, (4) to a lesser degree and, if obtained, a line of credit. Cash generated from loan payoffs and borrower payments of principal and interest is used for operating expenses, income distributions to members, reimbursements to RMC of origination and offering expenses and unit redemptions. The cash flow, if any, in excess of these uses is re-invested in new loans. Distribution policy 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 available for distribution otherwise distributable to the members with respect to any period the respective amounts of organization and offering expenses allocated to the members for the applicable period pursuant to the company’s reimbursement and allocation of organization and offering expenses policy. Per the terms of the company’s operating agreement, cash available for distribution allocated to the members is allocated among the members in proportion to their percentage interests (except with respect to differences in the amounts of organization and offering 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. Distributions allocable to members, other than those participating in the distribution reinvestment plan (DRIP), and the manager are distributed to them in cash at the end of each calendar month. The manager’s allocable share of cash available for distribution is also distributed not more frequently than with cash distributions to members. Cash available for distribution allocable to members who participate in the DRIP is credited to their respective capital accounts at the end of each calendar month. To determine the amount of cash to be distributed in any specific month, the company relies in part on its annual forecast of profits, which takes into account the difference between the forecasted and actual results in the prior year and the requirement to maintain a cash reserve. Distribution reinvestment plan The DRIP provision of the operating agreement permits members to elect to have all or a portion of their monthly distributions reinvested in additional units. Members may withdraw from the DRIP with written notice. Ongoing public offering of units/ SEC Registrations In December, 2012, the company’s Registration Statement on Form S-11 filed with the Securities and Exchange Commission (SEC File No. 333-181953) to offer up to 150,000,000 units ($150,000,000) to the public and 37,500,000 units ($37,500,000) to its members pursuant to the DRIP became effective. The 2012 filing enabled us to continue the offer to sell units that commenced in an initial public offering with the filing of a Registration Statement on Form S-11 in June 2008 (SEC File No. 333-155428). The offering of units is ongoing and was extended by filing a new, third registration statement on Form S-11 (SEC File No. 333-208315) in December 2015. The current offering continues until the earlier of either the effective date of the third registration statement, or 180 days after December 4, 2015. When the third registration statement is declared effective, the offering will continue for up to three (3) years thereafter. The units have been registered pursuant to Section 12(g) of the Exchange Act. Such registration of the units, along with the satisfaction of certain other requirements under ERISA, enables the units to qualify as “publicly-offered securities” for purposes of ERISA and regulations issued thereunder. By satisfying those requirements, the underlying assets of the company should not be considered assets of a “benefit plan investor” (as defined under ERISA) by virtue of the investment by such benefit plan investor in the units. The following summarizes the proceeds from sales of units, from inception (October 5, 2009) through December 31, 2015. Proceeds Gross proceeds admitted from investors $ 30,144,013 From electing members under our distribution reinvestment plan 2,879,166 From premiums paid by RMC 148,904 (1) Total proceeds from unit sales $ 33,172,083 (1) If a member acquired units through an unsolicited sale, the member’s capital account is credited with their capital contribution plus a premium paid by RMC equal to the amount of the sales commissions that otherwise would have been paid to a broker-dealer by RMC. This amount is reported in the year paid as taxable income to the member. Liquidity and unit redemption program Under the operating agreement, members have the right to withdraw from the company or to obtain the return of their capital account after one year from the date of purchase of units. In order to provide liquidity, we have adopted a unit redemption program that provides for a member to redeem all or part of their units, subject to certain limitations. After the one-year period, a member may redeem all or part of their units, subject to certain limitations. The price paid for redeemed units will be 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 will be calculated as follows: • Beginning after one year: 92% of purchase price of the capital account balance, whichever is less; • Beginning after two years: 94% of purchase price of the capital account balance, whichever is less; • Beginning after three years: 96% of purchase price of the capital account balance, whichever is less; • Beginning after four years: 98% of purchase price of the capital account balance, whichever is less; • Beginning after five years, 100% of purchase price of the capital account balance, whichever is less. The company redeems units quarterly, subject to certain limitations as provided for in the operating agreement. The number of units that may be redeemed per quarter per individual member is subject to a maximum of the greater of 100,000 units or 25% of the member’s units outstanding. For redemption requests requiring more than one quarter to fully redeem, the percentage discount amount that, if any, 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 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. Contributed capital The manager is required to contribute to capital one tenth of one percent (0.1%) of the aggregate capital accounts of the members. In December 2015, the manager, at its sole discretion, made a supplemental contribution to members’ capital of $791,965. This contribution offset the cumulative difference, between net income and distributions to members for all periods through December 31, 2014. Manager’s interest If a manager is removed, withdrawn or terminated, the company will pay to the manager all amounts then accrued and owing 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. Reimbursement and allocation of organization and offering expenses The manager is reimbursed for, or the company may pay directly, organization and offering expenses (or O&O expenses) incurred in connection with the organization of the company or offering of the units 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”), and the manager pays any O&O expenses in excess of the maximum O&O expenses. For each calendar quarter or portion thereof after December 31, 2015, that a member holds units (other than DRIP units) and for a maximum of forty (40) such quarters, a portion of the O&O expenses borne by the company is 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 the quarter in which such units are redeemed. If at any time the aggregate O&O expenses actually paid or reimbursed by the company since inception are less than the maximum O&O expenses, the company shall first reimburse the manager for any O&O expenses previously borne by it so long as it does not result in the company bearing more than the maximum O&O expenses, and any savings thereafter remaining shall be equitably allocated among (and serve to reduce any subsequent such cost allocations to) those members who have not yet received forty (40) quarterly allocations of O&O expenses, as determined in the good faith judgment of the manager. Any O&O expenses with respect to a member’s units that remain unallocated upon redemption of such units shall be reimbursed to the company by the manager. Unit sales commissions paid to broker-dealers/formation loan Commissions for units sales to be paid to broker-dealers (B/D sales commissions) are paid by RMC and are not paid directly by the company out of offering proceeds. Instead, the company advances to RMC amounts sufficient to pay the B/D sales commissions and premiums to be paid to investors in connection with unsolicited orders up to 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.” As of December 31, 2015 the company had made such advances of $2,198,481, of which $1,741,741 remain outstanding on the formation loan. Income taxes and members’ capital – tax basis Federal and state income taxes are the obligation of the members, if and when taxes apply, other than the annual California franchise tax and any California LLC cash receipts taxes paid by the company. Term of the company The term of the company will continue until 2028, unless sooner terminated as provided in the operating agreement. |
Significant Accounting Policies
Significant Accounting Policies [Text Block] | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 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”). Certain reclassifications, not affecting previously reported net income or total members capital, have been made to the previously issued consolidated financial statements to conform to the current year presentation. 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 relate principally to the determination of the allowance for loan losses, including, when applicable, the valuation of impaired loans (which itself requires determining the fair value of the collateral), and the valuation of real estate held for sale and held as investment, at acquisition and subsequently. Actual results could differ significantly from these estimates. Fair value estimates GAAP defines fair value as the exchange 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. The fair value of the collateral is determined 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. 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 investment 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, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g. as-is, when-completed or for land when-entitled); and determining the unit of value (e.g. as a series of individual unit sales or as a bulk disposition). Management has the requisite familiarity with the real estate 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, 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. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the fair value of the collateral, net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. This computation is done for each loan (whether impaired or performing), and while loans secured by collateral of similar property type are grouped, there is enough distinction and variation in the collateral that a loan-by-loan, collateral-by-collateral analysis is appropriate. Cash and cash equivalents The company considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. Periodically, company cash balances in banks exceed federally insured limits. Loans and interest income Loans generally are stated at 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. The company may fund a specific loan origination net of an interest reserve to insure timely interest payments at the inception (one to two years) of the loan. As monthly interest payments become due, the company funds the payments into the affiliated trust account. 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. If events and or changes in circumstances cause management to have serious doubts about the collectability of the payments of interest and principal in accordance with the loan agreement, a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. Any subsequent payments on impaired loans are applied to late fees, then to the accrued interest, then to advances, and lastly to principal. From time to time, the company negotiates and enters into loan modifications with borrowers whose loans are delinquent. If the loan modification results in a significant reduction in the cash flow compared to the original note, the modification is deemed a troubled debt restructuring and a loss is recognized. In the normal course of the company’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the renewed loan was previously designated as impaired. Interest is accrued daily based on the principal of the loans. An impaired loan continues to accrue as long as the loan is in the process of collection and is considered to be well-secured. Loans are placed on non-accrual status at the earlier of management’s determination that the primary source of repayment will 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 is no longer considered well-secured. When a loan is placed on non-accrual status, the accrual of interest is discontinued; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent interest and principal payments become current in accordance with the terms of the loan agreement. Loan administrative fees paid to RMC for loans funded by the company are capitalized and amortized over the life of the loan on a straight-line method which approximates the effective interest method. Allowance for loan losses Loans and the related accrued interest and advances (i.e. the loan balance) are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the fair value of the collateral, net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. This computation is done for each loan (whether impaired or performing), and while loans secured by collateral of similar property type are grouped, there is enough distinction and variation in the collateral that a loan-by-loan, collateral-by-collateral analysis is appropriate. For loans designated impaired, a provision is made for loan losses to adjust the allowance for loan losses to an amount such that the net carrying amount (unpaid principal less the specific allowance) is reduced to the lower of the loan balance or the estimated fair value of the related collateral, net of any senior loans and net of any costs to sell in arriving at net realizable value. Loans determined not to be individually impaired are grouped by the property type of the underlying collateral, and for each loan and for the total by property type, the amount of protective equity or amount of exposure to loss ( i.e., The company charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. At foreclosure any excess of the recorded investment in the loan (accounting basis) over the net realizable value is charged against the allowance for loan losses. 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 lower of the amount owed on the loan (legal basis), plus any senior indebtedness, or at the property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. 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 loan 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. After acquisition, 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 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. Recently issued accounting pronouncements There are no recently effective or issued but not yet effective accounting pronouncements which would have a material effect on the company’s reported financial position or results of operations. |
Related Party Transactions Disc
Related Party Transactions Disclosure [Text Block] | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 3 – MANAGERS AND OTHER RELATED PARTIES RMC’s allocated one percent (1%) of the profits and losses was $17,571 and $10,937 for 2015 and 2014, respectively. The manager, at its sole discretion, provided financial support that improved net income and the return to investors in both 2015 and 2014. Total support provided, as detailed below, was approximately $634,000 and $204,000 for 2015 and 2014, respectively. At times, to enhance the company’s earnings, RMC has taken several actions, including: 1) charging less than the maximum allowable fees, 2) has not requested reimbursement of qualifying expenses, 3) paying company expenses, such as professional fees, that could have been obligations of the company, and/or 4) contributing cash to the company that was credited to members’ capital accounts. Such fee waivers and cost actions were not made for the purpose of providing the company with sufficient funds to satisfy withdrawal requests, nor to meet any required level of distributions, as the company has no such required level of distributions. RMC does not use any specific criteria in determining the exact amount of fees to be waived and/or costs to be absorbed. Any decision to waive fees and/or to absorb costs, and the amount (if any) to be waived or absorbed, is made by RMC in its sole discretion. Formation loan Formation loan transactions are presented in the following table. 2015 2014 Since Inception Balance, January 1 $ 1,255,600 $ 972,603 $ — Formation loan advances to RMC 620,067 373,728 2,198,482 Payments received from RMC (126,931 ) (88,895 ) (445,123 ) Early withdrawal penalties applied (6,995 ) (1,836 ) (11,618 ) Balance, December 31 $ 1,741,741 $ 1,255,600 $ 1,741,741 Subscription proceeds since inception $ 31,166,879 $ 22,433,797 $ 31,166,879 Formation loan advance 7 % The future minimum payments on the formation loan of December 31, 2015 are presented in the following table. Year 2016 $ 174,174 2017 174,174 2018 174,174 2019 174,174 Thereafter 1,045,045 Total $ 1,741,741 RMC is required to make annual payments on the formation loan of one tenth of the principal balance outstanding at December 31 of the prior year. The formation loan is forgiven if the manager is removed and RMC is no longer receiving payments for services rendered. The following commissions and fees are paid by the borrowers. • Brokerage commissions, loan originations For fees in connection with the review, selection, evaluation, negotiation and extension of loans, 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, and thus, are not an expense of the company. Loan brokerage commissions paid by the borrowers were $368,535 and $196,564, for 2015 and 2014, 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. These fees totaled $56,219 and $36,333, for 2015 and 2014, respectively. The following fees are paid by the company • Loan administrative fees RMC is entitled to receive a loan administrative fee in an amount up to one percent (1%) of the principal amount of each new loan originated or acquired on the company’s behalf by RMC for services rendered in connection with the selection and underwriting of potential loans. Such fees are payable by the company upon the closing or acquisition of each loan. The loan administrative fees paid by the company to RMC were $108,194 and $137,712 for the years ended December 31, 2015, and 2014, respectively. In August 2015 RMC, at its sole discretion, began waiving loan administrative fees. Loan administrative fees waived were approximately $113,000, for 2015. There is no assurance RMC will waive these fees in the future. For 2015, RMC, at its sole discretion, reimbursed the company for approximately $80,000 of loan administrative fees paid to the manager in prior periods, reducing the amortization of loan administrative fees in the income statement and cash flow presentations. There is no assurance RMC will reimburse these fees in the future. • Mortgage servicing fees RMC earns mortgage servicing fees from the company of up to one-quarter of one percent (0.25%) annually of the unpaid principal balance of the loan portfolio or such lesser amount as is reasonable and customary in the geographic area where the property securing the mortgage is located. RMC is entitled to receive these fees regardless of whether specific mortgage payments are collected. 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 has been acquired by the company. To enhance the earnings of the company, RMC, in its sole discretion, may elect to accept less than the maximum amount of the mortgage servicing fee. An increase or decrease in this fee within the limits set by the operating agreement directly impacts the yield to the members. Mortgage servicing fees incurred and paid were $53,647 and $40,762 for 2015 and 2014, respectively. RMC did not waive any mortgage servicing fees during 2015 and 2014. • Asset management fees RMC is entitled to receive a monthly asset management fee for managing the company’s portfolio 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. This amount will be recomputed annually after the second full year of operations by subtracting from the then fair value of the company’s loans plus working capital reserves, an amount equal to the outstanding debt. RMC, at its sole discretion, may elect to accept less than the maximum amount of the asset management fee. An increase or decrease in this fee within the limits set by the operating agreement directly impacts the yield to the members. There is no assurance RMC will decrease or waive these fees in the future. Asset management fees paid to RMC are presented in the following table. 2015 2014 Chargeable by the managers $ 198,439 $ 150,569 Waived by the managers (198,439 ) (113,115 ) Charged $ — $ 37,454 • Costs through RMC RMC, per the operating agreement, may request reimbursement by the company for operations expense incurred on behalf of the company, including without limitation, accounting and audit fees, legal fees and expenses, postage and preparation of reports to members and out-of-pocket general and administration expenses. Certain costs (e.g. postage) can be allocated specifically to the company. Other costs are allocated on a pro-rata basis (e.g. by the company’s percentage of total capital of all mortgage funds managed by RMC). Payroll and consulting fees are broken out first based on activity, and then allocated to the company on a pro-rata basis based on percentage of capital to the total capital of all mortgage funds. The decision to request reimbursement of any qualifying charges is made by RMC at its sole discretion. Costs incurred by RMC, for which reimbursement could have been requested, were $167,229 and $104,445, for 2015 and 2014, respectively, of which $0 and $79,403 was collected. In addition, RMC, at its sole discretion, may elect to reimburse the company for professional services (primarily audit and tax expense). An increase or decrease in reimbursements by RMC directly impacts the yield to the members. RMC reimbursed the company for professional services of $75,565 and $31,605 for 2015 and 2014, respectively. There is no assurance that RMC will reimburse these expenses in the future. Reimbursement and allocation of organization and offering expenses Organization and offering expenses (O & O expenses) are summarized in the following table. 2015 2014 Balance, January 1 $ 953,271 $ 754,491 O&O expenses reimbursed to RMC (1) 407,903 199,410 O&O expenses paid by the company 120 637 Amounts paid by manager (76,956 ) — Early withdrawal penalties applied (2) (4,813 ) (1,267 ) Organization and offering costs allocated — — Balance, December 31 $ 1,279,525 $ 953,271 Gross proceeds admitted $ 30,144,013 $ 21,183,798 Percent reimbursed to RMC 4.50 % 4.50 % (1) O & O expenses incurred by RMC, RMI IX inception to date $ 3,625,000 $ 3,064,000 O & O expenses incurred by RMC and remaining to be reimbursed to RMC contingent upon future sales of units 2,268,000 2,111,000 (2) Redemption penalties collected are applied to the next installment of principal due under the formation loan and to reduce the amount owed RMC for syndication costs. The amounts credited will be determined by the ratio between the initial amount of the formation loan and the total amount of offering costs incurred by the company. |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
LOANS | NOTE 4 – LOANS Loans generally are funded or acquired at a fixed interest rate with a loan term of up to five years. Loans acquired are generally done so within the first six months of origination, and purchased at the current par value, which approximates fair value. As of December 31, 2015, 72 of the company’s 75 loans (representing 99% of the aggregate principal of the company’s loan portfolio) have a loan term of five years or less from loan inception. The remaining loans have terms longer than five years. Substantially all loans are written without a prepayment penalty. As of December 31, 2015, 24 loans outstanding (representing 40% of the aggregate principal balance of the company’s loan portfolio) provide for monthly payments of interest only, with the principal due in full at maturity. The remaining loans require monthly payments of principal and interest, typically calculated on a 30-year amortization, with the remaining principal balance due at maturity. Secured loans unpaid principal balance (principal) Secured loan transactions are summarized in the following table. 2015 2014 Principal, January 1 $ 19,185,660 $ 14,698,430 Loans acquired from affiliates 22,155,623 13,265,250 Loans acquired from third party — 736,000 Principal payments received (13,981,145 ) (9,514,020 ) Principal, December 31 $ 27,360,138 $ 19,185,660 Loan characteristics Secured loans had the characteristics presented in the following table at December 31. 2015 2014 Number of secured loans 75 52 Secured loans – principal $ 27,360,138 $ 19,185,660 Secured loans – lowest interest rate (fixed) 7.5 % 7.3 % Secured loans – highest interest rate (fixed) 10.0 % 10.0 % Average secured loan – principal $ 364,801 $ 368,955 Average principal as percent of total principal 1.3 % 1.9 % Average principal as percent of members’ capital 1.3 % 1.9 % Average principal as percent of total assets 1.2 % 1.7 % Largest secured loan – principal $ 1,200,000 $ 1,600,000 Largest principal as percent of total principal 4.4 % 8.3 % Largest principal as percent of members’ capital 4.2 % 8.2 % Largest principal as percent of total assets 4.1 % 7.7 % Smallest secured loan – principal $ 45,906 $ 66,278 Smallest principal as percent of total principal 0.2 % 0.4 % Smallest principal as percent of members’ capital 0.2 % 0.3 % Smallest principal as percent of total assets 0.2 % 0.3 % Number of counties where security is located (all California) 17 13 Largest percentage of principal in one county 32.3 % 25.2 % Number of secured loans in foreclosure 1 1 Secured loans in foreclosure – principal $ 191,772 $ 193,893 Number of secured loans with an interest reserve — — Interest reserves $ — $ — As of December 31, 2015, the company’s largest loan with principal of $1,200,000 represents 4.4% of outstanding secured loans and 4.1% of company assets. The loan is secured by a single family residence property located in San Francisco County, bears an interest rate of 8.5% and matures on July 1, 2016. The loan listed as in foreclosure is current in terms of loan payments, and is expected to perform in accordance with the note. Lien position Secured loans had the lien positions presented in the following table at December 31. 2015 2014 Loans Principal Percent Loans Principal Percent First trust deeds 59 $ 21,204,614 77 % 44 $ 17,114,452 89 % Second trust deeds 16 6,155,524 23 8 2,071,208 11 Total secured loans 75 27,360,138 100 % 52 19,185,660 100 % Liens due other lenders at loan closing 9,564,255 4,773,151 Total debt $ 36,924,393 $ 23,958,811 Appraised property value at loan closing $ 71,836,840 $ 44,552,048 Percent of total debt to appraised values (LTV) at loan closing (1) 54.8 % 53.8 % (1) Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders. Property type Secured loans summarized by property type are presented in the following table at December 31. 2015 2014 Loans Principal Percent Loans Principal Percent Single family (2) 58 19,664,462 72 % 40 $ 14,512,116 76 % Multi-family 4 2,266,402 8 3 1,272,724 6 Commercial 13 5,429,274 20 9 3,400,820 18 Total secured loans 75 27,360,138 100 % 52 $ 19,185,660 100 % (2) Single family property type as of December 31, 2015 consists of six loans with principal of $2,098,628 that are owner occupied and 52 loans with principal of $17,565,834 that are non-owner occupied. At December 31, 2014, single family property consisted of five loans with principal of $1,318,743 that were owner occupied and 35 loans with principal of $13,193,373 that were non-owner occupied. Delinquency Secured loans summarized by payment delinquency are presented in the following table at December 31. 2015 2014 Loans Amount Loans Amount Past Due 30-89 days 1 $ 318,020 1 $ 448,930 90-179 days — — 2 514,791 180 or more days — — — — Total past due 1 318,020 3 963,721 Current 74 27,042,118 49 18,221,939 Total secured loan balance 75 $ 27,360,138 52 $ 19,185,660 Modifications and troubled debt restructurings No loan modifications were made during 2015 and 2014, and no modifications were in effect at December 31, 2015 and 2014. Loans in non-accrual status At December 31, 2015 and 2014, no loans were designated as in non-accrual status. Impaired loans/allowance for loan losses No loans were designated at December 31, 2015 and 2014 as impaired. As all loans were deemed to have protective equity ( i.e. Scheduled maturities Secured loans are scheduled to mature as presented in the following table as of December 31, 2015. Loans Principal Percent 2016 19 $ 7,821,483 28 % 2017 16 6,826,844 25 2018 13 4,559,673 16 2019 9 2,533,269 9 2020 15 4,080,643 15 Thereafter 3 1,538,226 7 Total future maturities 75 $ 27,360,138 100 % Loans may be repaid or refinanced before, at or after the contractual maturity date. On matured loans, the company may continue to accept payments while pursuing collection of amounts owed from borrowers. Therefore, the above tabulation for scheduled maturities is not a forecast of future cash receipts. The company renewed two loans, at then market terms, during both 2015 and 2014, respectively, with aggregate principal balances of $1,375,000 and $1,020,664, respectively. Distribution by California counties The distribution of secured loans outstanding by California counties at December 31 is presented in the following table. 2015 2014 Principal Percent Principal Percent San Francisco Bay Area Alameda $ 5,121,849 18.7 % $ 2,322,907 12.1 % San Francisco 3,885,098 14.2 4,584,854 23.9 San Mateo 3,057,222 11.2 1,554,577 8.1 Santa Clara 1,383,633 4.9 891,674 4.7 Contra Costa 1,303,036 4.7 1,186,371 6.1 Marin 379,758 1.5 — — Sonoma 45,906 0.2 67,146 0.4 15,176,502 55.4 10,607,529 55.3 Other Northern California Monterey 559,304 2.1 180,897 0.9 Placer 359,118 1.3 — — Sacramento 214,607 0.8 — — Yolo 174,927 0.6 — — San Joaquin 159,533 0.6 — — Santa Cruz — — 2,320,000 12.0 1,467,489 5.4 2,500,897 13.0 Northern California Total 16,643,991 60.8 13,108,426 68.3 Los Angeles & Coastal Los Angeles 8,841,419 32.3 4,840,941 25.2 Orange 747,708 2.7 432,828 2.3 San Diego 593,019 2.2 66,278 0.4 10,182,146 37.2 5,340,047 27.9 Other Southern California San Bernardino 136,028 0.5 635,768 3.3 Riverside 397,973 1.5 101,419 0.5 534,001 2.0 737,187 3.8 Southern California Total 10,716,147 39.2 6,077,234 31.7 Total Secured Loans $ 27,360,138 100 % $ 19,185,660 100.0 % Commitments/loan disbursements/construction and rehabilitation loans The company may make construction loans that are not fully disbursed at loan inception. Construction loans are determined by the managers to be those loans made to borrowers for the construction of entirely new structures or dwellings, whether residential, commercial or multi-family properties. The company will approve and fund the construction loan up to a maximum loan balance. Disbursements will be made periodically as phases of the construction are completed or at such other times as the loan documents may require. Undisbursed construction funds will be held in escrow pending disbursement. Upon project completion, construction loans are reclassified as permanent loans. Funding of construction loans is limited to 10% of the loan portfolio. As of December 31, 2015, the company had no construction loans outstanding. The company may also make rehabilitation loans. A rehabilitation loan will be approved up to a maximum principal balance and, at loan inception, will be either fully or partially disbursed. If fully disbursed, a rehabilitation escrow account is established and advanced periodically as phases of the rehabilitation are completed or at such other times as the loan documents may require. If not fully disbursed, the rehabilitation loan will be funded from available cash balances and future cash receipts. The company does not maintain a separate cash reserve to fund undisbursed rehabilitation loan obligations. Rehabilitation loan proceeds are generally used to acquire and remodel single family homes for future sale or rental. Upon project completion, rehabilitation loans are reclassified as permanent loans. Funding of rehabilitation loans is limited to 15% of the loan portfolio. At December 31, 2015, the company had no rehabilitation loans outstanding. Fair value The company does not record its loans at fair value on a recurring basis. Loans designated impaired (i.e. that are collateral dependent) are measured at fair value on a non-recurring basis. The company did not have any loans designated impaired at December 31, 2015 or 2014. • Secured loans, performing (i.e. not designated as impaired) (Level 2) - • Secured loans, designated impaired (Level 2) - The following methods and assumptions are used to determine the fair value of the collateral securing a loan. Single family – 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 – Where adequate sale comps are not available, management will seek additional information in the form of brokers’ opinions of value or appraisals. 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 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. Commercial buildings – Management supplements the direct capitalization method with additional information in the form of a sale comparison analysis (where adequate sale comps are available), brokers’ opinion of value, or appraisal. Commercial land – |
Commitments and Contingencies D
Commitments and Contingencies Disclosure [Text Block] | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 5 – COMMITMENTS AND CONTINGENCIES, OTHER THAN LOAN COMMITMENTS AND ORGANIZATION AND OFFERING COSTS Legal proceedings 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 net income or balance sheet of the company. As of the date hereof, the company is not involved in any legal proceedings other than those that would be considered part of the normal course of business. Commitments The company had no contractual obligations, except to reimburse RMC for O&O expenses at December 31, 2015. As of December 31, 2015, approximately $2,268,186 was to be reimbursed to RMC contingent upon future sales of units. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 6 – SUBSEQUENT EVENTS None |
Significant Accounting Polici13
Significant Accounting Policies [Text Block] (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Certain reclassifications, not affecting previously reported net income or total members capital, have been made to the previously issued consolidated financial statements to conform to the current year presentation. |
Use of Estimates, Policy [Policy Text Block] | 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 relate principally to the determination of the allowance for loan losses, including, when applicable, the valuation of impaired loans (which itself requires determining the fair value of the collateral), and the valuation of real estate held for sale and held as investment, at acquisition and subsequently. Actual results could differ significantly from these estimates. Fair value estimates GAAP defines fair value as the exchange 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. The fair value of the collateral is determined 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. 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 investment 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, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g. as-is, when-completed or for land when-entitled); and determining the unit of value (e.g. as a series of individual unit sales or as a bulk disposition). Management has the requisite familiarity with the real estate 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, 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. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the fair value of the collateral, net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. This computation is done for each loan (whether impaired or performing), and while loans secured by collateral of similar property type are grouped, there is enough distinction and variation in the collateral that a loan-by-loan, collateral-by-collateral analysis is appropriate. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents The company considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. Periodically, company cash balances in banks exceed federally insured limits. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | Loans and interest income Loans generally are stated at 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. The company may fund a specific loan origination net of an interest reserve to insure timely interest payments at the inception (one to two years) of the loan. As monthly interest payments become due, the company funds the payments into the affiliated trust account. 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. If events and or changes in circumstances cause management to have serious doubts about the collectability of the payments of interest and principal in accordance with the loan agreement, a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. Any subsequent payments on impaired loans are applied to late fees, then to the accrued interest, then to advances, and lastly to principal. From time to time, the company negotiates and enters into loan modifications with borrowers whose loans are delinquent. If the loan modification results in a significant reduction in the cash flow compared to the original note, the modification is deemed a troubled debt restructuring and a loss is recognized. In the normal course of the company’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the renewed loan was previously designated as impaired. Interest is accrued daily based on the principal of the loans. An impaired loan continues to accrue as long as the loan is in the process of collection and is considered to be well-secured. Loans are placed on non-accrual status at the earlier of management’s determination that the primary source of repayment will 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 is no longer considered well-secured. When a loan is placed on non-accrual status, the accrual of interest is discontinued; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent interest and principal payments become current in accordance with the terms of the loan agreement. Loan administrative fees paid to RMC for loans funded by the company are capitalized and amortized over the life of the loan on a straight-line method which approximates the effective interest method. |
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 lower of the amount owed on the loan (legal basis), plus any senior indebtedness, or at the property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. 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 loan 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. After acquisition, 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 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. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently issued accounting pronouncements There are no recently effective or issued but not yet effective accounting pronouncements which would have a material effect on the company’s reported financial position or results of operations. |
Organization, Consolidation a14
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Proceeds from Sales of Units | The following summarizes the proceeds from sales of units, from inception (October 5, 2009) through December 31, 2015. Proceeds Gross proceeds admitted from investors $ 30,144,013 From electing members under our distribution reinvestment plan 2,879,166 From premiums paid by RMC 148,904 (1) Total proceeds from unit sales $ 33,172,083 (1) If a member acquired units through an unsolicited sale, the member’s capital account is credited with their capital contribution plus a premium paid by RMC equal to the amount of the sales commissions that otherwise would have been paid to a broker-dealer by RMC. This amount is reported in the year paid as taxable income to the member. |
Related Party Transactions Di15
Related Party Transactions Disclosure [Text Block] (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Formation loan transactions are presented in the following table. 2015 2014 Since Inception Balance, January 1 $ 1,255,600 $ 972,603 $ — Formation loan advances to RMC 620,067 373,728 2,198,482 Payments received from RMC (126,931 ) (88,895 ) (445,123 ) Early withdrawal penalties applied (6,995 ) (1,836 ) (11,618 ) Balance, December 31 $ 1,741,741 $ 1,255,600 $ 1,741,741 Subscription proceeds since inception $ 31,166,879 $ 22,433,797 $ 31,166,879 Formation loan advance 7 % |
Formation Loan, Future Minimum Payments [Table Text Block] | The future minimum payments on the formation loan of December 31, 2015 are presented in the following table. Year 2016 $ 174,174 2017 174,174 2018 174,174 2019 174,174 Thereafter 1,045,045 Total $ 1,741,741 |
Asset Management Fee Activities [Table Text Block] | Asset management fees paid to RMC are presented in the following table. 2015 2014 Chargeable by the managers $ 198,439 $ 150,569 Waived by the managers (198,439 ) (113,115 ) Charged $ — $ 37,454 |
Syndication Costs [Table Text Block] | Organization and offering expenses (O & O expenses) are summarized in the following table. 2015 2014 Balance, January 1 $ 953,271 $ 754,491 O&O expenses reimbursed to RMC (1) 407,903 199,410 O&O expenses paid by the company 120 637 Amounts paid by manager (76,956 ) — Early withdrawal penalties applied (2) (4,813 ) (1,267 ) Organization and offering costs allocated — — Balance, December 31 $ 1,279,525 $ 953,271 Gross proceeds admitted $ 30,144,013 $ 21,183,798 Percent reimbursed to RMC 4.50 % 4.50 % (1) O & O expenses incurred by RMC, RMI IX inception to date $ 3,625,000 $ 3,064,000 O & O expenses incurred by RMC and remaining to be reimbursed to RMC contingent upon future sales of units 2,268,000 2,111,000 (2) Redemption penalties collected are applied to the next installment of principal due under the formation loan and to reduce the amount owed RMC for syndication costs. The amounts credited will be determined by the ratio between the initial amount of the formation loan and the total amount of offering costs incurred by the company. |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Receivables [Abstract] | |
Secured Loan Principal Transactions [Table Text Block] | Secured loan transactions are summarized in the following table. 2015 2014 Principal, January 1 $ 19,185,660 $ 14,698,430 Loans acquired from affiliates 22,155,623 13,265,250 Loans acquired from third party — 736,000 Principal payments received (13,981,145 ) (9,514,020 ) Principal, December 31 $ 27,360,138 $ 19,185,660 |
Secured Loans Characteristics [Table Text Block] | Secured loans had the characteristics presented in the following table at December 31. 2015 2014 Number of secured loans 75 52 Secured loans – principal $ 27,360,138 $ 19,185,660 Secured loans – lowest interest rate (fixed) 7.5 % 7.3 % Secured loans – highest interest rate (fixed) 10.0 % 10.0 % Average secured loan – principal $ 364,801 $ 368,955 Average principal as percent of total principal 1.3 % 1.9 % Average principal as percent of members’ capital 1.3 % 1.9 % Average principal as percent of total assets 1.2 % 1.7 % Largest secured loan – principal $ 1,200,000 $ 1,600,000 Largest principal as percent of total principal 4.4 % 8.3 % Largest principal as percent of members’ capital 4.2 % 8.2 % Largest principal as percent of total assets 4.1 % 7.7 % Smallest secured loan – principal $ 45,906 $ 66,278 Smallest principal as percent of total principal 0.2 % 0.4 % Smallest principal as percent of members’ capital 0.2 % 0.3 % Smallest principal as percent of total assets 0.2 % 0.3 % Number of counties where security is located (all California) 17 13 Largest percentage of principal in one county 32.3 % 25.2 % Number of secured loans in foreclosure 1 1 Secured loans in foreclosure – principal $ 191,772 $ 193,893 Number of secured loans with an interest reserve — — Interest reserves $ — $ — |
Secured Loans by Lien Position in the Collateral [Table Text Block] | Secured loans had the lien positions presented in the following table at December 31. 2015 2014 Loans Principal Percent Loans Principal Percent First trust deeds 59 $ 21,204,614 77 % 44 $ 17,114,452 89 % Second trust deeds 16 6,155,524 23 8 2,071,208 11 Total secured loans 75 27,360,138 100 % 52 19,185,660 100 % Liens due other lenders at loan closing 9,564,255 4,773,151 Total debt $ 36,924,393 $ 23,958,811 Appraised property value at loan closing $ 71,836,840 $ 44,552,048 Percent of total debt to appraised values (LTV) at loan closing (1) 54.8 % 53.8 % (1) Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders. |
Secured Loans by Property Type of the Collateral [Table Text Block] | Secured loans summarized by property type are presented in the following table at December 31. 2015 2014 Loans Principal Percent Loans Principal Percent Single family (2) 58 19,664,462 72 % 40 $ 14,512,116 76 % Multi-family 4 2,266,402 8 3 1,272,724 6 Commercial 13 5,429,274 20 9 3,400,820 18 Total secured loans 75 27,360,138 100 % 52 $ 19,185,660 100 % (2) Single family property type as of December 31, 2015 consists of six loans with principal of $2,098,628 that are owner occupied and 52 loans with principal of $17,565,834 that are non-owner occupied. At December 31, 2014, single family property consisted of five loans with principal of $1,318,743 that were owner occupied and 35 loans with principal of $13,193,373 that were non-owner occupied. |
Past Due Financing Receivables [Table Text Block] | Secured loans summarized by payment delinquency are presented in the following table at December 31. 2015 2014 Loans Amount Loans Amount Past Due 30-89 days 1 $ 318,020 1 $ 448,930 90-179 days — — 2 514,791 180 or more days — — — — Total past due 1 318,020 3 963,721 Current 74 27,042,118 49 18,221,939 Total secured loan balance 75 $ 27,360,138 52 $ 19,185,660 |
Secured Loans Scheduled Maturities [Table Text Block] | Secured loans are scheduled to mature as presented in the following table as of December 31, 2015. Loans Principal Percent 2016 19 $ 7,821,483 28 % 2017 16 6,826,844 25 2018 13 4,559,673 16 2019 9 2,533,269 9 2020 15 4,080,643 15 Thereafter 3 1,538,226 7 Total future maturities 75 $ 27,360,138 100 % |
Secured Loans Distributed within California [Table Text Block] | The distribution of secured loans outstanding by California counties at December 31 is presented in the following table. 2015 2014 Principal Percent Principal Percent San Francisco Bay Area Alameda $ 5,121,849 18.7 % $ 2,322,907 12.1 % San Francisco 3,885,098 14.2 4,584,854 23.9 San Mateo 3,057,222 11.2 1,554,577 8.1 Santa Clara 1,383,633 4.9 891,674 4.7 Contra Costa 1,303,036 4.7 1,186,371 6.1 Marin 379,758 1.5 — — Sonoma 45,906 0.2 67,146 0.4 15,176,502 55.4 10,607,529 55.3 Other Northern California Monterey 559,304 2.1 180,897 0.9 Placer 359,118 1.3 — — Sacramento 214,607 0.8 — — Yolo 174,927 0.6 — — San Joaquin 159,533 0.6 — — Santa Cruz — — 2,320,000 12.0 1,467,489 5.4 2,500,897 13.0 Northern California Total 16,643,991 60.8 13,108,426 68.3 Los Angeles & Coastal Los Angeles 8,841,419 32.3 4,840,941 25.2 Orange 747,708 2.7 432,828 2.3 San Diego 593,019 2.2 66,278 0.4 10,182,146 37.2 5,340,047 27.9 Other Southern California San Bernardino 136,028 0.5 635,768 3.3 Riverside 397,973 1.5 101,419 0.5 534,001 2.0 737,187 3.8 Southern California Total 10,716,147 39.2 6,077,234 31.7 Total Secured Loans $ 27,360,138 100 % $ 19,185,660 100.0 % |
Note 1 - Organization and Gener
Note 1 - Organization and General (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)yrUnit | Dec. 31, 2014USD ($) | Dec. 31, 2012USD ($)shares | |
Note 1 - Organization and General (Details) [Line Items] | |||
Base Percentage of Aggregate Capital Accounts for Required Contribution | 1.00% | 1.00% | |
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. | ||
Members investment | 99.00% | 99.00% | |
Capital Units, Authorized | $ 30,171,527 | $ 20,799,872 | |
Unit Redemption Program, Years After Purchase | yr | 1 | ||
Maximum Capital Units for Redemption Per Quarter Per Individual | Unit | 100,000 | ||
Maximum Percentage of Members Outstanding Units for Redemption Per Quarter Per Individual | 25.00% | ||
Maximum Percentage of Weighted Average Number of Members Outstanding Units During Twelve Months for Redemption | 5.00% | ||
Base Percentage of Aggregate Capital Accounts for Required Contribution | 1.00% | ||
Reimbursement as a percentage of member's original purchase price | 0.45% | ||
Percentage of original purchase price, quarterly installment percentage | 0.1125% | ||
Percentage of offering proceeds | 7.00% | ||
Receivable from affiliate (formation loan) | $ 1,741,741 | $ 1,255,600 | |
Formation Loan [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Formation loan, advances | 2,198,481 | ||
Receivable from affiliate (formation loan) | $ 1,741,741 | ||
Redemption Between One to Two Years [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 92.00% | ||
Redemption Between Two to Three Years [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 94.00% | ||
Redemption Between Three to Four Years [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 96.00% | ||
Redemption Between Four to Five Years [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 98.00% | ||
Redemption After Five Years [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 100.00% | ||
Maximum [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Percentage of reimbursement of organization and offering expenses | 4.50% | ||
Reimbursement threshold | Maximum of forty such quarters | ||
IPO [Member] | Member Units [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Capital Units, Authorized (in Shares) | shares | 150,000,000 | ||
Capital Units, Authorized | $ 150,000,000 | ||
Offering period, description | The offering of units is ongoing and was extended by filing a new, third registration statement on Form S-11 (SEC File No. 333-208315) in December 2015. The current offering continues until the earlier of either the effective date of the third registration statement, or 180 days after December 4, 2015. When the third registration statement is declared effective, the offering will continue for up to three (3) years thereafter. | ||
Dividend Reinvestment Plan [Member] | Member Units [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Capital Units, Authorized (in Shares) | shares | 37,500,000 | ||
Capital Units, Authorized | $ 37,500,000 | ||
Manager Supplemental Contributed Member Capital [Member] | |||
Note 1 - Organization and General (Details) [Line Items] | |||
Base Percentage of Aggregate Capital Accounts for Required Contribution | 0.10% | ||
Partners capital, contributions | $ 791,965 |
Note 1 - Organization and Gen18
Note 1 - Organization and General (Details) - Summary of Proceeds from Sales of Units (Detail) | 75 Months Ended | |
Dec. 31, 2015USD ($) | ||
Limited Partners' Capital Account [Line Items] | ||
Total proceeds from unit sales | $ 33,172,083 | |
Contributions Admitted To Members Capital | ||
Limited Partners' Capital Account [Line Items] | ||
Total proceeds from unit sales | 30,144,013 | |
Distribution Reinvestment Plan | ||
Limited Partners' Capital Account [Line Items] | ||
Total proceeds from unit sales | 2,879,166 | |
Premiums Admitted To Members Capital | ||
Limited Partners' Capital Account [Line Items] | ||
Total proceeds from unit sales | $ 148,904 | [1] |
[1] | If a member acquired units through an unsolicited sale, the member's capital account is credited with their capital contribution plus a premium paid by RMC equal to the amount of the sales commissions that otherwise would have been paid to a broker-dealer by RMC. This amount is reported in the year paid as taxable income to the member. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies (Detail) | 12 Months Ended |
Dec. 31, 2015Categories | |
Accounting Policies [Abstract] | |
Estimating Real Property Value, Number of Approaches | 3 |
Interest Reserve Minimum Length | 1 year |
Interest Reserve Maximum Length | 2 years |
Note 3 - Managers and Other Rel
Note 3 - Managers and Other Related Parties (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ||
Managers Share of Profits or Losses | 1.00% | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 1,757,132 | $ 1,093,723 |
Loan Brokerage Commission Percent Minimum | 1.50% | |
Loan Brokerage Commission Percent Maximum | 5.00% | |
Loan Brokerage Commissions, Maximum Percent of Assets | 4.00% | |
Fees and Commissions | $ 368,535 | 196,564 |
Fees and Commissions, Other | $ 56,219 | 36,333 |
Administrative Fees, Percentage | 1.00% | |
Payment for Administrative Fees | $ 108,194 | 137,712 |
Administrative Fees, Waived | 113,000 | |
Bank Servicing Fees | 53,647 | 40,762 |
Mortgage Servicing Fees Waived | $ 0 | 0 |
Management Fee, Percentage | 0.75% | |
Working Capital Reserve, Percentage | 2.00% | |
Operating Expenses | $ 85,932 | 280,218 |
Management [Member] | ||
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ||
Related Party Transaction, Amounts of Transaction | 634,000 | 204,000 |
RMC [Member] | ||
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ||
Operating Expenses | 167,229 | 104,445 |
Operating Expenses Waived | 0 | 79,403 |
RMC [Member] | Loan Administrative Fees Reimbursed [Member] | ||
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ||
Related Party Transaction, Amounts of Transaction | 80,000 | |
RMC [Member] | Professional Fees Reimbursed [Member] | ||
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ||
Related Party Transaction, Amounts of Transaction | 75,565 | 31,605 |
Managers Capital Net [Member] | ||
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 17,571 | $ 10,937 |
Maximum [Member] | ||
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ||
Servicing Fees, Percentage | 0.25% |
Note 3 - Managers and Other R21
Note 3 - Managers and Other Related Parties (Details) - Formation Loan - Transactions (Detail) - USD ($) | 12 Months Ended | 75 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Formation Loan - Transactions [Abstract] | |||
Balance, January 1 | $ 1,255,600 | $ 972,603 | |
Formation loan made | 620,067 | 373,728 | $ 2,198,482 |
Payments received from RMC | (126,931) | (88,895) | (445,123) |
Early withdrawal penalties applied | (6,995) | (1,836) | (11,618) |
Balance, December 31 | 1,741,741 | 1,255,600 | 1,741,741 |
Subscription proceeds since inception | $ 31,166,879 | $ 22,433,797 | $ 31,166,879 |
Formation loan made | 7.00% |
Note 3 - Managers and Other R22
Note 3 - Managers and Other Related Parties (Details) - Formation Loan - Future Minimum Payments (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Formation Loan - Future Minimum Payments [Abstract] | |||
2,016 | $ 174,174 | ||
2,017 | 174,174 | ||
2,018 | 174,174 | ||
2,019 | 174,174 | ||
Thereafter | 1,045,045 | ||
Total | $ 1,741,741 | $ 1,255,600 | $ 972,603 |
Note 3 - Managers and Other R23
Note 3 - Managers and Other Related Parties - Asset Management Fee Activities (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Management Fee Activities [Abstract] | ||
Chargeable by the managers | $ 198,439 | $ 150,569 |
Waived by the managers | $ (198,439) | (113,115) |
Charged | $ 37,454 |
Note 3 - Managers and Other R24
Note 3 - Managers and Other Related Parties (Details) - Syndication Costs (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Note 3 - Managers and Other Related Parties (Details) - Syndication Costs [Line Items] | |||
Balance, January 1 | $ 953,271 | $ 754,491 | |
O&O expenses reimbursed to RMC | [1] | 407,903 | 199,410 |
O&O expenses paid by the company | 120 | 637 | |
Amounts paid by manager | (76,956) | ||
Early withdrawal penalties applied | [2] | (4,813) | (1,267) |
Organization and offering costs allocated | 0 | 0 | |
Balance, December 31 | $ 1,279,525 | $ 953,271 | |
Percent reimbursed to RMC | 4.50% | 4.50% | |
Current Offering [Member] | |||
Note 3 - Managers and Other Related Parties (Details) - Syndication Costs [Line Items] | |||
Gross proceeds admitted | $ 30,144,013 | $ 21,183,798 | |
[1] | (1) O & O expenses incurred by RMC, RMI IX inception to date $ 3,625,000 $ 3,064,000 O & O expenses incurred by RMC and remaining to be reimbursed to RMC contingent upon future sales of units 2,268,000 2,111,000 | ||
[2] | Redemption penalties collected are applied to the next installment of principal due under the formation loan and to reduce the amount owed RMC for syndication costs. The amounts credited will be determined by the ratio between the initial amount of the formation loan and the total amount of offering costs incurred by the company. |
Note 3 - Managers and Other R25
Note 3 - Managers and Other Related Parties (Details) - Syndication Costs (Parenthetical) (Detail) - USD ($) | 63 Months Ended | 75 Months Ended |
Dec. 31, 2014 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | ||
O & O expenses incurred by RMC and cash remaining to be reimbursed | $ 2,111,000 | $ 2,268,186 |
O & O expenses incurred by RMC, RMI IX | $ 3,064,000 | $ 3,625,000 |
Note 4 - Loans (Detail)
Note 4 - Loans (Detail) | 12 Months Ended | |||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 30, 2015USD ($) | Dec. 31, 2013USD ($) | |
Note 4 - Loans (Details) [Line Items] | ||||
Loans Receivable, Term | 5 years | |||
Loans Receivable Number of Loans | Loan | 75 | 52 | ||
Loans Receivable, Number of Interest Only Loans | Loan | 24 | |||
Loans Receivable, Amortization Term | 30 years | |||
Loans Receivable Largest Loan (in Dollars) | $ 1,200,000 | $ 1,600,000 | ||
Loans Receivable, Percent of Total | 100.00% | 100.00% | ||
Mortgage Loans on Real Estate, Number of Loans | Loan | 75 | 52 | ||
Loans - principal (in Dollars) | $ 27,360,138 | $ 19,185,660 | $ 14,698,430 | |
Financing Receivable, Modifications, Number of Contracts | Loan | 0 | 0 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status (in Dollars) | $ 0 | $ 0 | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment (in Dollars) | $ 0 | $ 0 | ||
Renewals [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Mortgage Loans on Real Estate, Number of Loans | Loan | 2 | 2 | ||
Loans - principal (in Dollars) | $ 1,375,000 | $ 1,020,664 | ||
Fair Value, Measurements, Nonrecurring [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Financing Receivable, Modifications, Number of Contracts | Loan | 0 | 0 | ||
Construction Loans [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Loans - principal (in Dollars) | $ 0 | |||
Percentage of Loan Portfolio Limited for Funding of Construction Loans | 10.00% | |||
Rehabilitation Loans [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Loans - principal (in Dollars) | $ 0 | |||
undefined (in Dollars) | 15.00% | |||
Five Year Term or Less [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Loans Receivable Number of Loans | Loan | 72 | |||
Loans Receivable, Percent of Aggregate Principal | 99.00% | |||
Interest Only [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Loans Receivable, Percent of Aggregate Principal | 40.00% | |||
Largest Loan [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Loans Receivable Largest Loan (in Dollars) | $ 1,200,000 | |||
Loans Receivable, Percent of Total | 4.40% | |||
Loans Receivable, Percent of Assets | 4.10% | |||
Loans Receivable, Yield of Loan Acquired | 8.50% | |||
Single Family Property-Owner Occupied [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Mortgage Loans on Real Estate, Number of Loans | Loan | 6 | 5 | ||
Loans - principal (in Dollars) | $ 2,098,628 | $ 1,318,743 | ||
Single Family Property-NonOwner Occupied [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Mortgage Loans on Real Estate, Number of Loans | Loan | 52 | 35 | ||
Loans - principal (in Dollars) | $ 17,565,834 | $ 13,193,373 | ||
Minimum [Member] | ||||
Note 4 - Loans (Details) [Line Items] | ||||
Loans Receivable, Remaining Term | 5 years |
Note 4 - Loans (Details) - Secu
Note 4 - Loans (Details) - Secured Loan Transactions (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Note 4 - Loans (Details) - Secured Loan Transactions [Line Items] | ||
Principal, January 1 | $ 19,185,660 | $ 14,698,430 |
Principal payments received | (13,981,145) | (9,514,020) |
Principal, December 31 | 27,360,138 | 19,185,660 |
Affiliates or Manager [Member] | ||
Note 4 - Loans (Details) - Secured Loan Transactions [Line Items] | ||
Loans acquired | $ 22,155,623 | 13,265,250 |
Third Party [Member] | ||
Note 4 - Loans (Details) - Secured Loan Transactions [Line Items] | ||
Loans acquired | $ 736,000 |
Note 4 - Loans (Details) - Se28
Note 4 - Loans (Details) - Secured Loans Characteristics (Detail) | 12 Months Ended | ||
Dec. 31, 2015USD ($)CountryLoan | Dec. 31, 2014USD ($)CountryLoan | Dec. 31, 2013USD ($) | |
Note 4 - Loans (Details) - Secured Loans Characteristics [Line Items] | |||
Number of secured loans | Loan | 75 | 52 | |
Secured loans - principal (in Dollars) | $ 27,360,138 | $ 19,185,660 | $ 14,698,430 |
Secured loans - lowest interest rate (fixed) | 7.50% | 7.30% | |
Secured loans - highest interest rate (fixed) | 10.00% | 10.00% | |
Average secured loan - principal (in Dollars) | $ 364,801 | $ 368,955 | |
Average principal as percent of total principal | 1.30% | 1.90% | |
Average principal as percent of members' capital | 1.30% | 1.90% | |
Average principal as percent of total assets | 1.20% | 1.70% | |
Largest secured loan - principal (in Dollars) | $ 1,200,000 | $ 1,600,000 | |
Largest principal as percent of total principal | 4.40% | 8.30% | |
Largest principal as percent of members' capital | 4.20% | 8.20% | |
Largest principal as percent of total assets | 4.10% | 7.70% | |
Smallest secured loan - principal (in Dollars) | $ 45,906 | $ 66,278 | |
Smallest principal as percent of total principal | 0.20% | 0.40% | |
Smallest principal as percent of members' capital | 0.20% | 0.30% | |
Smallest principal as percent of total assets | 0.20% | 0.30% | |
Number of counties where security is located (all California) | Country | 17 | 13 | |
Largest percentage of principal in one county | 32.30% | 25.20% | |
Number of secured loans in foreclosure | Loan | 75 | 52 | |
Secured loans in foreclosure - principal (in Dollars) | $ 191,772 | $ 193,893 | |
Interest reserves | $ 0 | $ 0 | |
In Foreclosure [Member] | |||
Note 4 - Loans (Details) - Secured Loans Characteristics [Line Items] | |||
Number of secured loans in foreclosure | Loan | 1 | 1 |
Note 4 - Loans (Details) - Se29
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral (Detail) | 12 Months Ended | |||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($) | ||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Number of loans | Loan | 75 | 52 | ||
Principal (in Dollars) | $ 27,360,138 | $ 19,185,660 | $ 14,698,430 | |
Liens due other lenders at loan closing (in Dollars) | 9,564,255 | 4,773,151 | ||
Total debt (in Dollars) | 36,924,393 | 23,958,811 | ||
Appraised property value at loan closing (in Dollars) | $ 71,836,840 | $ 44,552,048 | ||
Percent of total debt to appraised values (LTV) at loan closing | [1] | 54.80% | 53.80% | |
Percent of total | 100.00% | 100.00% | ||
First Trust Deeds [Member] | ||||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Number of loans | Loan | 59 | 44 | ||
Principal (in Dollars) | $ 21,204,614 | $ 17,114,452 | ||
Percent of total | 77.00% | 89.00% | ||
Second Trust Deeds [Member] | ||||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Number of loans | Loan | 16 | 8 | ||
Principal (in Dollars) | $ 6,155,524 | $ 2,071,208 | ||
Percent of total | 23.00% | 11.00% | ||
[1] | Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders. |
Note 4 - Loans (Details) - Se30
Note 4 - Loans (Details) - Secured Loans by Property Type (Detail) | 12 Months Ended | |||
Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($) | ||
Note 4 - Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of loans | Loan | 75 | 52 | ||
Principal (in Dollars) | $ | $ 27,360,138 | $ 19,185,660 | $ 14,698,430 | |
Percent of total | 100.00% | 100.00% | ||
Single Family [Member] | ||||
Note 4 - Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of loans | Loan | [1] | 58 | 40 | |
Principal (in Dollars) | $ | [1] | $ 19,664,462 | $ 14,512,116 | |
Percent of total | [1] | 72.00% | 76.00% | |
Multifamily [Member] | ||||
Note 4 - Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of loans | Loan | 4 | 3 | ||
Principal (in Dollars) | $ | $ 2,266,402 | $ 1,272,724 | ||
Percent of total | 8.00% | 6.00% | ||
Commercial [Member] | ||||
Note 4 - Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of loans | Loan | 13 | 9 | ||
Principal (in Dollars) | $ | $ 5,429,274 | $ 3,400,820 | ||
Percent of total | 20.00% | 18.00% | ||
[1] | Single family property type as of December 31, 2015 consists of six loans with principal of $2,098,628 that are owner occupied and 52 loans with principal of $17,565,834 that are non-owner occupied. At December 31, 2014, single family property consisted of five loans with principal of $1,318,743 that were owner occupied and 35 loans with principal of $13,193,373 that were non-owner occupied. |
Note 4 - Loans (Details) - Se31
Note 4 - Loans (Details) - Secured Loans Summarized by Payment Delinquency (Detail) | Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($) |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of loans | Loan | 75 | 52 | |
Amount | $ | $ 27,360,138 | $ 19,185,660 | $ 14,698,430 |
Past Due 30-89 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of loans | Loan | 1 | 1 | |
Amount | $ | $ 318,020 | $ 448,930 | |
Past Due 90-179 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of loans | Loan | 2 | ||
Amount | $ | $ 514,791 | ||
Total Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of loans | Loan | 1 | 3 | |
Amount | $ | $ 318,020 | $ 963,721 | |
Current [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Number of loans | Loan | 74 | 49 | |
Amount | $ | $ 27,042,118 | $ 18,221,939 |
Note 4 - Loans (Details) - Se32
Note 4 - Loans (Details) - Secured Loans Scheduled Maturities (Detail) | Dec. 31, 2015USD ($)Loan | Dec. 31, 2014USD ($)Loan | Dec. 31, 2013USD ($) |
Secured Loans Scheduled Maturities [Abstract] | |||
2016 | Loan | 19 | ||
2016 (in Dollars) | $ | $ 7,821,483 | ||
2,016 | 28.00% | ||
2017 | Loan | 16 | ||
2017 (in Dollars) | $ | $ 6,826,844 | ||
2,017 | 25.00% | ||
2018 | Loan | 13 | ||
2018 (in Dollars) | $ | $ 4,559,673 | ||
2,018 | 16.00% | ||
2019 | Loan | 9 | ||
2019 (in Dollars) | $ | $ 2,533,269 | ||
2,019 | 9.00% | ||
2020 | Loan | 15 | ||
2020 (in Dollars) | $ | $ 4,080,643 | ||
2,020 | 15.00% | ||
Thereafter | Loan | 3 | ||
Thereafter (in Dollars) | $ | $ 1,538,226 | ||
Thereafter | 7.00% | ||
Number of loans | Loan | 75 | 52 | |
Principal (in Dollars) | $ | $ 27,360,138 | $ 19,185,660 | $ 14,698,430 |
Percent to total | 100.00% |
Note 4 - Loans (Details) - Se33
Note 4 - Loans (Details) - Secured Loans Distributed Within California (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 27,360,138 | $ 19,185,660 | $ 14,698,430 |
Number of loans | 100.00% | 100.00% | |
Alameda [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 5,121,849 | $ 2,322,907 | |
Number of loans | 18.70% | 12.10% | |
San Francisco [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 3,885,098 | $ 4,584,854 | |
Number of loans | 14.20% | 23.90% | |
San Mateo [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 3,057,222 | $ 1,554,577 | |
Number of loans | 11.20% | 8.10% | |
Santa Clara [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 1,383,663 | $ 891,674 | |
Number of loans | 4.90% | 4.70% | |
Contra Costa [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 1,303,036 | $ 1,186,371 | |
Number of loans | 4.70% | 6.10% | |
Marin [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 379,758 | ||
Number of loans | 1.50% | ||
Sonoma [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 45,906 | $ 67,146 | |
Number of loans | 0.20% | 0.40% | |
San Francisco Bay Area [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 15,176,502 | $ 10,607,529 | |
Number of loans | 55.40% | 55.30% | |
Monterey [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 559,304 | $ 180,897 | |
Number of loans | 2.10% | 0.90% | |
Placer [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 359,118 | ||
Number of loans | 1.30% | ||
Sacramento [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 214,607 | ||
Number of loans | 0.80% | ||
Yolo [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 174,927 | ||
Number of loans | 0.60% | ||
San Joaquin [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 159,533 | ||
Number of loans | 0.60% | ||
Santa Cruz [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 2,320,000 | ||
Number of loans | 12.00% | ||
Other Northern California [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 1,467,489 | $ 2,500,897 | |
Number of loans | 5.40% | 13.00% | |
Northern California [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 16,643,991 | $ 13,108,426 | |
Number of loans | 60.80% | 68.30% | |
Los Angeles [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 8,841,419 | $ 4,840,941 | |
Number of loans | 32.30% | 25.20% | |
Orange [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 747,708 | $ 432,828 | |
Number of loans | 2.70% | 2.30% | |
San Diego [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 593,019 | $ 66,278 | |
Number of loans | 2.20% | 0.40% | |
Los Angeles & Coastal [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 10,182,146 | $ 5,340,047 | |
Number of loans | 37.20% | 27.90% | |
San Bernardino [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 136,028 | $ 635,768 | |
Number of loans | 0.50% | 3.30% | |
Riverside [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 397,973 | $ 101,419 | |
Number of loans | 1.50% | 0.50% | |
Other Southern California [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 534,001 | $ 737,187 | |
Number of loans | 2.00% | 3.80% | |
Southern California [Member] | |||
Note 4 - Loans (Details) - Secured Loans Distributed Within California [Line Items] | |||
Principal (in Dollars) | $ 10,716,147 | $ 6,077,234 | |
Number of loans | 39.20% | 31.70% |
Commitment and Contingencies, O
Commitment and Contingencies, Other Than Loan Commitments and Organization and Offering Costs - Additional Information (Detail) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
contractual obligations | $ 0 | |
O & O expenses incurred by RMC and cash remaining to be reimbursed | $ 2,268,186 | $ 2,111,000 |