Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Mar. 01, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Redwood Mortgage Investors IX | ' |
Document Type | '10-K | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 0 |
Entity Public Float | $0 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0001448038 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and cash equivalents | $1,176,630 | $1,964,536 |
Loans, secured by deeds of trust | ' | ' |
Principal | 14,698,430 | 11,891,017 |
Advances | 1,039 | 1,979 |
Accrued interest | 112,521 | 82,536 |
Total loans | 14,811,990 | 11,975,532 |
Receivable from affiliate | 15,037 | ' |
Prepaid expenses | 25,000 | ' |
Loan administration fees, net | 91,344 | 76,952 |
Total assets | 16,120,001 | 14,017,020 |
Liabilities | ' | ' |
Accounts payable | 275 | 9,446 |
Payable to affiliate | 15,650 | ' |
Total liabilities | 15,925 | 9,446 |
Investors in applicant status | 443,350 | 355,750 |
Members’ capital | ' | ' |
Members’ capital, subject to redemption, net of unallocated syndication costs of $746,946 and $664,520 for 2013 and 2012, respectively; and net of formation loan of $972,603 and $931,406 for 2013 and 2012, respectively | 15,642,516 | 13,637,215 |
Managers’ capital, net of unallocated syndication costs of $7,545 and $6,712 for 2013 and 2012, respectively | 18,210 | 14,609 |
Total members’ capital | 15,660,726 | 13,651,824 |
Total liabilities, investors in applicant status and members’ capital | $16,120,001 | $14,017,020 |
Balance_Sheets_Parentheticals
Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Unallocated syndication costs | $746,946 | $664,520 |
Formation loan | 972,603 | 931,406 |
Unallocated Syndication Costs Managers [Member] | ' | ' |
Unallocated syndication costs | $7,545 | $6,712 |
Statements_of_Income
Statements of Income (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Revenues | ' | ' |
Loans | $1,064,581 | $745,739 |
Imputed interest on formation loan | 25,572 | 20,319 |
Total interest income | 1,090,153 | 766,058 |
Interest expense – amortization of discount on formation loan | 25,572 | 20,319 |
Net interest income | 1,064,581 | 745,739 |
Late fees | 7,031 | 5,409 |
Other | 150 | 400 |
Total revenues, net | 1,071,762 | 751,548 |
Provision for loan losses | 0 | 0 |
Operating expenses | ' | ' |
Mortgage servicing fees | 31,590 | 21,357 |
Asset management fees | 0 | 0 |
Costs through RMC | 119,136 | 74,464 |
Professional services | 22,237 | 15,144 |
Other | 14,176 | 13,966 |
Total operating expenses | 187,139 | 124,931 |
Net income | 884,623 | 626,617 |
Net income | ' | ' |
Managers (1%) | 8,846 | 6,266 |
Members (99%) | $875,777 | $620,351 |
Net income per $1,000 invested by members for entire period (in Dollars per share) | $53 | $47 |
Statements_of_Changes_in_Membe
Statements of Changes in Members' Capital (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 6 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Contributions On Application [Member] | Contributions On Application [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Contributions Admitted To Members Capital [Member] | Premiums Paid On Application By RMC [Member] | Premiums Admitted To Members Capital [Member] | Premiums Admitted To Members Capital [Member] | Premiums Admitted To Members Capital [Member] | Premiums Admitted To Members Capital [Member] | Premiums Admitted To Members Capital [Member] | Premiums Admitted To Members Capital [Member] | Premiums Admitted To Members Capital [Member] | Premiums Admitted To Members Capital [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed Used In DRIP [Member] | Earnings Distributed Used In DRIP [Member] | Earnings Distributed Used In DRIP [Member] | Earnings Distributed Used In DRIP [Member] | Earnings Distributed Used In DRIP [Member] | Earnings Distributed Used In DRIP [Member] | Member's Redemptions [Member] | Member's Redemptions [Member] | Member's Redemptions [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Capital Accounts [Member] | Investors In Applicant Status [Member] | Investors In Applicant Status [Member] | Investors In Applicant Status [Member] | Capital Members [Member] | Capital Members [Member] | Unallocated Syndication Costs Members [Member] | Unallocated Syndication Costs Members [Member] | Formation Loan [Member] | Formation Loan [Member] | Members Capital, Net [Member] | Members Capital, Net [Member] | Capital Managers [Member] | Capital Managers [Member] | Capital Managers [Member] | Unallocated Syndication Costs Managers [Member] | Unallocated Syndication Costs Managers [Member] | Managers Capital, Net [Member] | Managers Capital, Net [Member] | ||
Investors In Applicant Status [Member] | Investors In Applicant Status [Member] | Investors In Applicant Status [Member] | Investors In Applicant Status [Member] | Capital Members [Member] | Capital Members [Member] | Members Capital, Net [Member] | Members Capital, Net [Member] | Capital Managers [Member] | Capital Managers [Member] | Managers Capital, Net [Member] | Managers Capital, Net [Member] | Investors In Applicant Status [Member] | Investors In Applicant Status [Member] | Investors In Applicant Status [Member] | Capital Members [Member] | Capital Members [Member] | Members Capital, Net [Member] | Members Capital, Net [Member] | Capital Members [Member] | Capital Members [Member] | Members Capital, Net [Member] | Members Capital, Net [Member] | Capital Managers [Member] | Capital Managers [Member] | Managers Capital, Net [Member] | Managers Capital, Net [Member] | Capital Members [Member] | Capital Members [Member] | Members Capital, Net [Member] | Members Capital, Net [Member] | Capital Members [Member] | Members Capital, Net [Member] | Unallocated Syndication Costs Members [Member] | Unallocated Syndication Costs Members [Member] | Formation Loan [Member] | Formation Loan [Member] | Members Capital, Net [Member] | Members Capital, Net [Member] | Unallocated Syndication Costs Managers [Member] | Unallocated Syndication Costs Managers [Member] | Managers Capital, Net [Member] | Managers Capital, Net [Member] | |||||||||||||||||||||||||||||||
Balances | $13,651,824 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $443,350 | $355,750 | $320,545 | $15,233,141 | $11,354,642 | ($664,520) | ($498,661) | ($931,406) | ($741,215) | $13,637,215 | $10,114,766 | ' | $21,321 | $16,503 | ($6,712) | ($5,037) | $14,609 | $11,466 |
Member contributions | ' | 1,937,802 | 3,766,342 | -1,850,202 | -3,722,968 | 1,850,202 | 3,722,968 | 1,850,202 | 3,722,968 | 1,854 | 3,732 | 1,854 | 3,732 | 1,852,056 | 3,726,700 | 3,570 | -3,570 | -8,169 | 3,570 | 8,169 | 3,570 | 8,169 | 3,570 | 8,169 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 884,623 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 875,777 | 620,351 | ' | ' | ' | ' | 875,777 | 620,351 | 6,266 | 8,846 | 6,266 | ' | ' | 8,846 | 6,266 |
Member distributions | 606,891 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -1,076,395 | -854,800 | -1,076,395 | -854,800 | -6,266 | -5,180 | -6,266 | -5,180 | -1,082,661 | -859,980 | 533,960 | 381,811 | 533,960 | 381,811 | 533,960 | 381,811 | -58,190 | -58,190 | -58,190 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Formation loan advances | -134,896 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -134,896 | -264,312 | -134,896 | -264,312 | ' | ' | ' | ' | ' | ' | ' |
Formation loan payments received | 93,699 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 93,141 | 74,121 | 93,141 | 74,121 | ' | ' | ' | ' | 93,141 | 74,121 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Syndication costs incurred | -83,259 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -82,827 | -165,859 | ' | ' | -82,827 | -165,859 | -837 | -1,675 | -837 | -1,675 | -83,664 | -167,534 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Early withdrawal penalties | 963 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 401 | ' | 558 | ' | 959 | ' | ' | ' | ' | 4 | ' | 4 | ' |
Balances | $15,660,726 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $443,350 | $355,750 | $320,545 | $17,362,065 | $15,233,141 | ($746,946) | ($498,661) | ($972,603) | ($931,406) | $15,642,516 | $13,637,215 | $21,321 | $25,755 | $21,321 | ($7,545) | ($5,037) | $18,210 | $14,609 |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities | ' | ' |
Net income | $884,623 | $626,617 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ' | ' |
Amortization of loan origination fees | 143,605 | 67,722 |
Interest income, imputed on formation loan | -25,572 | -20,319 |
Amortization of discount on formation loan | 25,572 | 20,319 |
Change in operating assets and liabilities | ' | ' |
Accrued interest | -29,985 | -28,317 |
Advances | 940 | -1,909 |
Receivable from affiliate | -15,037 | ' |
Prepaid expenses | -25,000 | ' |
Loan administration fees | -157,997 | -104,630 |
Accounts payable | -9,171 | 9,234 |
Payable to affiliate | 15,650 | ' |
Net cash provided by (used in) operating activities | 807,628 | 568,717 |
Cash flows from investing activities | ' | ' |
Loans funded | -7,358,376 | -4,266,763 |
Loans acquired from affiliates | -8,184,100 | -6,444,700 |
Principal collected on loans | 12,735,063 | 7,073,774 |
Net cash provided by (used in) investing activities | -2,807,413 | -3,637,689 |
Cash flows from financing activities | ' | ' |
Contributions by member applicants | 1,943,226 | 3,770,074 |
Membersb withdrawals | -606,891 | -478,169 |
Syndication costs paid, net | -83,259 | -167,534 |
Formation loan, funding | -134,896 | -264,312 |
Formation loan, collections | 93,699 | 74,121 |
Net cash provided by (used in) financing activities | 1,211,879 | 2,934,180 |
Net increase (decrease) in cash and cash equivalents | -787,906 | -134,792 |
Cash and cash equivalents at beginning of year | 1,964,536 | 2,099,328 |
Cash and cash equivalents at end of year | $1,176,630 | $1,964,536 |
Note_1_Organization_and_Genera
Note 1 - Organization and General | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | ||||||||
NOTE 1 – ORGANIZATION AND GENERAL | |||||||||
Redwood Mortgage Investors IX, LLC (the “company”) is a Delaware limited liability company formed in October 2008 to make loans secured primarily by first and second deeds of trust on California real estate. Redwood Mortgage Corp. (“RMC”) and its wholly-owned subsidiary Gymno LLC (“Gymno”) are the managers of the company. The address of the company and the managers is 1825 South Grant Street, Suite 250, San Mateo, CA 94402. The mortgage loans the company invests in are arranged and are generally serviced by RMC. Michael Burwell is the president and majority shareholder (through his holdings and beneficial interests in certain trusts) of RMC. | |||||||||
In June 2012, the company filed with the SEC a second registration statement on Form S-11, which was declared effective in December 2012 that in substance extends the offering of member units past the sunset date of the registration of the initial public offering, which was filed in November 2008. The 2012 registration offers up to 150,000,000 units of its membership interests to the public and 37,500,000 units to its members pursuant to its distribution reinvestment plan. | |||||||||
Offering proceeds are released to the company and applied to investments in mortgage loans and the payment or reimbursement of organization and offering expenses. The amount of loans the company funds or acquires will depend upon the number of units sold in the public offering and the resulting amount of the net proceeds available for investment in loans. | |||||||||
The rights, duties and powers of the managers and members of the company are governed by the company’s operating agreement and the Delaware Limited Liability Company Act. | |||||||||
The managers are solely responsible for managing the business and affairs of the company, subject to the voting rights of the members on specified matters. Any one of the managers acting alone has the power and authority to act for and bind the company. | |||||||||
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. The description of the company's operating agreement contained in these financial statements provides only general information. | |||||||||
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 1% of the profits and losses are allocated to the managers. The allocation to the managers (combined) may not exceed 1%. The monthly results are subject to subsequent adjustment as a result of quarterly and year-end accounting and reporting. Members may elect to have all or a portion of their monthly distributions reinvested in additional units, subject to the availability of units under the distribution reinvestment plan. Members may withdraw from the distribution reinvestment plan with written notice. No provision for federal and state income taxes (other than an $800 state minimum tax) is made in the financial statements since income taxes are the obligation of the members if and when income taxes apply. Investors should not expect the company to provide tax benefits of the type commonly associated with limited liability company tax shelter investments. | |||||||||
There are substantial restrictions on transferability of units and accordingly an investment in the company is non-liquid. Members have no right to withdraw from the company or to obtain the return of their capital account for at least one year from the date of purchase of units. In order to provide a certain degree of liquidity, we have adopted a unit redemption program, whereby after the one year period, a member may redeem all or part of their units, subject to certain limitations. | |||||||||
Members should refer to the company's operating agreement for a more complete description of the provisions. | |||||||||
Distribution reinvestment plan | |||||||||
Members may elect to have all or a portion of their monthly distributions reinvested in additional units, subject to the availability of units under the distribution reinvestment plan. Members may withdraw from the distribution reinvestment plan with written notice. | |||||||||
Liquidity and unit redemption program | |||||||||
There are substantial restrictions on transferability of company units and accordingly an investment in the company is non-liquid. There is no public or secondary market for the units and none is expected to develop. Members have no right to withdraw from the company or to obtain the return of their capital account for at least one year from the date of purchase of units. | |||||||||
In order to provide a certain degree of liquidity, 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: | |||||||||
● | For redemptions beginning after one year (but before two years) 92% of purchase price or 92% of the capital account balance, whichever is less; | ||||||||
● | For redemptions beginning after two years (but before three years) 94% of purchase price or 94% of the capital account balance, whichever is less; | ||||||||
● | For redemptions beginning after three years (but before four years) 96% of purchase price or 96% of the capital account balance, whichever is less; | ||||||||
● | For redemptions beginning after four years (but before five years) 98% of purchase price or 98% of the capital account balance, whichever is less; | ||||||||
● | For redemptions beginning after five years, 100% of purchase price or 100% of the capital account balance, whichever is less. | ||||||||
The company will attempt to redeem units quarterly, subject to certain limitations. | |||||||||
Notwithstanding the foregoing, with respect to any redemption, the number of units that may be redeemed per quarter per individual member will be 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 applies when the redemption payments begin will continue to apply throughout the entire redemption period and will apply to all units covered by such redemption request regardless of when the final redemption payment is made. | |||||||||
The company will not establish a reserve from which to fund redemptions. The company's capacity to redeem member units upon request is restricted to the availability of company cash flow. The company will not, in any calendar year, redeem more than 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 managers – between them - are required to contribute to capital 1/10 of 1% of the aggregate capital accounts of the members. | |||||||||
Managers' interest | |||||||||
If a manager is removed, withdrawn or is 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. | |||||||||
Syndication costs | |||||||||
The company bears its own syndication costs, other than certain sales commissions, including legal and accounting expenses, printing costs, selling expenses and filing fees. Syndication costs are charged against members' capital and will be allocated to individual members consistent with the company’s operating agreement. | |||||||||
Formation loans | |||||||||
Sales commissions are not paid directly by the company out of the offering proceeds. Instead, the company loans to RMC, one of the managers, amounts to pay all sales commissions and amounts payable in connection with unsolicited orders. This loan is unsecured and non-interest bearing and is referred to as the “formation loan.” During the offering period, RMC will repay annually, one tenth of the principal balance of the formation loan as of December 31 of the prior year. Upon completion of the offering, the formation loan will be amortized over 10 years and repaid in 10 equal annual installments. The formation loan has been deducted from members’ capital in the balance sheets. As amounts are received from RMC as payments on the loan, the deduction from capital will be reduced. Interest has been imputed at the market rate of interest in effect at the end of each quarter for the new additions to the loan. If the managers are removed and RMC is no longer receiving payments for services rendered, the formation loan is forgiven. | |||||||||
Income taxes and Members’ capital – tax basis | |||||||||
Income taxes – federal and state – are the obligation of the members, if and when taxes apply, other than for the minimum annual California franchise tax paid by the company. | |||||||||
Members’ capital reconciliation | |||||||||
A reconciliation of members’ capital in the financial statements to the tax basis of company capital is presented in the following table at December 31. | |||||||||
2013 | 2012 | ||||||||
Members’ capital per financial statements | $ | 15,660,726 | $ | 13,651,824 | |||||
Unallocated syndication costs | 754,491 | 671,232 | |||||||
Allowance for loan losses | — | — | |||||||
Formation loans receivable | 972,603 | 931,406 | |||||||
Members’ capital tax basis | $ | 17,387,820 | $ | 15,254,462 | |||||
Term of the Company | |||||||||
The company is scheduled to terminate in 2028, unless sooner terminated as provided in the operating agreement. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Significant Accounting Policies [Text Block] | ' | ||
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Management estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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. | |||
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. | ||
- | 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. | ||
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. | |||
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). In some prior years, as has been previously noted, the appraisal process, was further complicated by the low transaction volumes of which a very high percentage were considered to distressed sales, and other poor market conditions. | |||
Management has the requisite familiarity with the markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, 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. | |||
Since inception through December 31, 2013, the company has distributed cash of $2,749,874 (which includes $1,170,365 reinvested in DRIP units) to the members, based upon the managers’ projections of net income using several variables which included but were not limited to, an average rate of return for the loan portfolio, turnover rate of the loan portfolio, and the availability of quality loans for investment. The company’s net income, applicable to members, during this period has been $2,182,994. In 2014, provided the company becomes and remains fully invested in quality mortgage loans, this difference of $566,880 should diminish. In 2013, cash distributed to members was $1,076,395 and net income attributed to members was $875,777. | |||
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 matured 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 administration fees 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 are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Delinquencies are determined based upon contractual terms. For impaired loans, a provision is made for loan losses to adjust the allowance for loan losses to an amount considered by management to be adequate, with due consideration to collateral values, such that the net carrying amount (principal, plus advances, plus accrued interest less the specific allowance) is reduced to the present value of future cash flows discounted at the loan’s effective interest rate, or, if a loan is collateral dependent, to 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 if planned disposition of the asset securing a loan is by way of sale. | |||
The fair value estimates are derived from information available in the real estate markets including similar property, and may require the experience and judgment of third parties such as real estate appraisers and brokers. | |||
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 dollar amount of the deficiency of the fair value of the underlying collateral to the loan balance) is computed. | |||
Based on its knowledge of the borrowers and their historical (and expected) performance, and the exposure to loss, management estimates an appropriate reserve by property type for probable credit losses in the portfolio. Because the company is an asset-based lender, except as to owner-occupied residences, and because specific regions, neighborhoods and even properties within the same neighborhoods, vary significantly as to real estate values and transaction activity, general market trends, which may be indicative of a change in the risk of a loss, and a borrower’s credit worthiness are secondary to the condition of the property, the property type and the neighborhood/region in which the property is located, and do not enter substantially into the determination of the amount of the non-specific (i.e. general) reserves. | |||
The company charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. | |||
Net income per $1,000 invested | |||
Amounts reflected in the statements of income as net income per $1,000 invested by members for the entire period are amounts allocated to members who had their investment throughout the period. Individual income is allocated each month based on the members’ pro rata share of members’ capital. Because the net income (loss) percentage may vary from month to month, amounts per $1,000 will vary for those individuals who made or withdrew investments during the period, or select other options. | |||
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. |
Note_3_Managers_and_Other_Rela
Note 3 - Managers and Other Related Parties | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||
NOTE 3 – MANAGERS AND OTHER RELATED PARTIES | |||||||||
The managers are entitled to one percent of the profits and losses, which amounted to $8,846 and $6,266 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Formation loan | |||||||||
Formation loan transactions are presented in the following table for the years ended December 31. | |||||||||
2013 | 2012 | ||||||||
Member contributions to date | $ | 17,209,819 | $ | 15,272,017 | |||||
Balance, January 1 | $ | 931,406 | $ | 741,215 | |||||
Formation Loan made | 134,896 | 264,312 | |||||||
Unamortized discount on imputed interest | 4,724 | (21,261 | ) | ||||||
Formation Loan made, net | 1,071,026 | 984,266 | |||||||
Repayments received from RMC | (93,141 | ) | (74,121 | ) | |||||
Early withdrawal penalties applied | (558 | ) | — | ||||||
Formation loan, net | 977,327 | 910,145 | |||||||
Unamortized discount on imputed interest | (4,724 | ) | 21,261 | ||||||
Balance, December 31 | $ | 972,603 | $ | 931,406 | |||||
Percent loaned to date | 7 | % | 7 | % | |||||
The formation loan has been deducted from members’ capital in the balance sheets. As amounts are collected from RMC, the deduction from capital will be reduced. Interest has been imputed at the market rate of interest in effect at the end of each quarter for the new additions to the loan. If the managers are removed and RMC is no longer receiving payments for services rendered, the formation loan is forgiven. | |||||||||
The future minimum payments on the formation loan are presented in the following table ($ in thousands). | |||||||||
2014 | $ | 97,260 | |||||||
2015 | 97,260 | ||||||||
2016 | 97,260 | ||||||||
2017 | 97,260 | ||||||||
2018 | 97,260 | ||||||||
Thereafter | 486,303 | ||||||||
Total | $ | 972,603 | |||||||
RMC is required to repay the formation loan. During the offering period, RMC will repay annually, one tenth of the principal balance of the formation loan as of December 31 of the prior year. Upon completion of the offering, the formation loan will be amortized over 10 years and repaid in 10 equal annual installments. | |||||||||
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 2% 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. In 2013 and 2012, loan brokerage commissions paid by the borrowers were $151,397 and $168,435, respectively. | |||||||||
Other fees | |||||||||
RMC or Gymno will receive 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. In 2013 and 2012, these fees totaled $28,224 and $12,177, respectively. | |||||||||
The following fees are paid by the company. | |||||||||
Loan administrative fees | |||||||||
RMC will receive a loan administrative fee in an amount up to 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 of each loan. In 2013 and 2012, the loan administration fees paid by the company to RMC were $157,997 and $104,630, respectively. | |||||||||
Mortgage servicing fees | |||||||||
RMC earns mortgage servicing fees of up to one-quarter of one percent (0.25%) annually of the unpaid principal 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 from the company. 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. RMC, in its sole discretion, may elect to accept less than the maximum amount of the mortgage servicing fee to enhance the earnings of the company. 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 $31,590 and $21,357 for the years ended December 31, 2013 and 2012, respectively. RMC did not waive any mortgage servicing fees during 2013 and 2012. | |||||||||
Asset management fees | |||||||||
The managers are 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 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. | |||||||||
The managers, in their sole discretion, may elect to accept less than the maximum amount of the asset management fee to enhance the earnings of the company. For years ended December 31, 2013 and 2012, the managers have waived the entire asset management fee due them. 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 the managers will decrease or waive these fees in the future. The decision to waive fees and the amount, if any, to be waived, is made by the managers in their sole discretion. | |||||||||
Asset management fees paid to the managers are presented in the following table for the years ended December 31. | |||||||||
2013 | 2012 | ||||||||
Maximum chargeable by the managers | $ | 124,100 | $ | 98,398 | |||||
Waived by the managers | (124,100 | ) | (98,398 | ) | |||||
Charged | $ | — | $ | — | |||||
Costs through RMC | |||||||||
RMC, a manager, is reimbursed by the company for operating expenses 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. The decision to request reimbursement of any qualifying charges is made by RMC in its sole discretion. Operating expenses charged to the company were $119,136 and $74,464, for the years ended December 31, 2013 and 2012, respectively. RMC did not waive its right to request reimbursement of any qualifying charges during 2013 and 2012. | |||||||||
Syndication costs | |||||||||
Syndications costs (all expenses incurred in connection with the start-up of the company or ongoing offering of the units, including legal and accounting fees, printing, mailing, distribution costs, filing fees, reimbursements to participating broker-dealers for due diligence expenses, reimbursements for training and education meetings for associated persons of a FINRA member, marketing reallowances of up to 1% of gross offering proceeds (sale of units, excluding DRIP and premium units)) up to 4.5% of the gross proceeds, are reimbursed to RMC until RMC is repaid in full, and then the company will pay any additional costs directly. The syndication costs are substantially front-ended, and RMC is reimbursed for these expenses quarterly up to 4.5% of the cumulative-to-date gross offering proceeds. | |||||||||
Syndication costs are summarized in the following table for the years ended December 31. | |||||||||
2013 | 2012 | ||||||||
Balance, January 1 | $ | 671,232 | $ | 503,698 | |||||
Costs reimbursed to RMC (1) | 83,664 | 167,534 | |||||||
Costs paid by the company | — | — | |||||||
Early withdrawal penalties applied (3) | (405 | ) | (— | ) | |||||
Allocated to date (2) | — | — | |||||||
Balance, December 31 | $ | 754,491 | $ | 671,232 | |||||
Gross offering proceeds | $ | 16,766,469 | $ | 14,916,267 | |||||
Percent reimbursed to RMC | 4.5 | % | 4.5 | % | |||||
-1 | As of December 31, 2013, RMC had incurred approximately $2,721,000 of syndication costs for the company and approximately $1,966,000 remains to be reimbursed by the company to RMC. As of December 31, 2012, RMC had incurred approximately $2,318,000 of syndication costs for the company and approximately $1,675,000 remained to be reimbursed to RMC. | ||||||||
-2 | Allocation of the syndication costs to the individual investors’ capital accounts begins after the company’s fifth full fiscal year, in accordance with the terms of the company’s operating agreement and IRS Code Section 709. See also the Accounting Policy footnote - Syndication costs. | ||||||||
-3 | 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_4_Loans
Note 4 - Loans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||
Financing Receivables [Text Block] | ' | ||||||||||||||||||||||||
NOTE 4 – LOANS | |||||||||||||||||||||||||
The company generally funds loans with a fixed interest rate and a five-year term. As of December 31, 2013, 94% of the company’s loans (representing 95% of the aggregate principal of the company’s loan portfolio) have a five year term or less from loan inception. The remaining loans have terms longer than five years. As of December 31, 2013, 23 loans outstanding (representing 57% 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 for the years ended December 31. | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal, January 1 | $ | 11,891,017 | $ | 8,253,328 | |||||||||||||||||||||
Loans funded | 7,358,376 | 4,266,763 | |||||||||||||||||||||||
Loans acquired from affiliates | 8,184,100 | 6,444,700 | |||||||||||||||||||||||
Payments received | (12,735,063 | ) | (7,073,774 | ) | |||||||||||||||||||||
Principal, December 31 | $ | 14,698,430 | $ | 11,891,017 | |||||||||||||||||||||
Loan characteristics | |||||||||||||||||||||||||
Secured loans had the characteristics presented in the following table. | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of secured loans | 51 | 41 | |||||||||||||||||||||||
Secured loans – principal | $ | 14,698,430 | $ | 11,891,017 | |||||||||||||||||||||
Secured loans – lowest interest rate (fixed) | 7.25 | % | 7.75 | % | |||||||||||||||||||||
Secured loans – highest interest rate (fixed) | 11 | % | 11 | % | |||||||||||||||||||||
Average secured loan – principal | $ | 288,205 | $ | 290,025 | |||||||||||||||||||||
Average principal as percent of total principal | 1.96 | % | 2.44 | % | |||||||||||||||||||||
Average principal as percent of members’ capital | 1.84 | % | 2.12 | % | |||||||||||||||||||||
Average principal as percent of total assets | 1.79 | % | 2.07 | % | |||||||||||||||||||||
Largest secured loan – principal | $ | 1,200,000 | $ | 1,200,000 | |||||||||||||||||||||
Largest principal as percent of total principal | 8.16 | % | 10.09 | % | |||||||||||||||||||||
Largest principal as percent of members’ capital | 7.66 | % | 8.79 | % | |||||||||||||||||||||
Largest principal as percent of total assets | 7.44 | % | 8.56 | % | |||||||||||||||||||||
Smallest secured loan – principal | $ | 68,276 | $ | 74,857 | |||||||||||||||||||||
Smallest principal as percent of total principal | 0.46 | % | 0.63 | % | |||||||||||||||||||||
Smallest principal as percent of members’ capital | 0.44 | % | 0.55 | % | |||||||||||||||||||||
Smallest principal as percent of total assets | 0.42 | % | 0.53 | % | |||||||||||||||||||||
Number of counties where security is located (all California) | 13 | 13 | |||||||||||||||||||||||
Largest percentage of principal in one county | 33.18 | % | 34.66 | % | |||||||||||||||||||||
Number of secured loans in foreclosure | — | — | |||||||||||||||||||||||
Secured loans in foreclosure – principal | — | — | |||||||||||||||||||||||
Number of secured loans with an interest reserve | — | — | |||||||||||||||||||||||
Interest reserves | $ | — | $ | — | |||||||||||||||||||||
As of December 31, 2013, the company’s largest loan in the principal of $1,200,000 represents 8.16% of outstanding secured loans and 7.44% of company assets. The loan is secured by a residential property located in Santa Cruz, California, bears an interest rate of 8.75% and matures on August 1, 2015. | |||||||||||||||||||||||||
Larger loans sometimes increase above 10% of the secured loan portfolio or company assets as these amounts decrease due to member withdrawals and loan payoffs and due to restructuring of existing loans. | |||||||||||||||||||||||||
Distribution by California counties | |||||||||||||||||||||||||
The distribution of secured loans outstanding by California counties is presented in the following table at December 31. | |||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Unpaid Principal Balance | Percent | Unpaid Principal Balance | Percent | ||||||||||||||||||||||
San Francisco | $ | 2,081,417 | 14.16 | % | $ | 2,104,019 | 17.69 | % | |||||||||||||||||
San Francisco Bay Area | |||||||||||||||||||||||||
Sonoma | 68,276 | 0.46 | 174,689 | 1.47 | |||||||||||||||||||||
Alameda | 1,328,638 | 9.04 | 1,199,567 | 10.09 | |||||||||||||||||||||
Santa Clara | 1,298,471 | 8.83 | 1,070,463 | 9 | |||||||||||||||||||||
Contra Costa | 735,324 | 5 | 428,693 | 3.61 | |||||||||||||||||||||
Marin | — | — | 244,302 | 2.06 | |||||||||||||||||||||
San Mateo | 1,288,689 | 8.77 | 418,371 | 3.52 | |||||||||||||||||||||
4,719,398 | 32.1 | 3,536,085 | 29.75 | ||||||||||||||||||||||
Other Northern California | |||||||||||||||||||||||||
El Dorado | 433,650 | 2.95 | — | — | |||||||||||||||||||||
Nevada | — | — | 340,000 | 2.86 | |||||||||||||||||||||
Monterey | 182,405 | 1.24 | 183,784 | 1.55 | |||||||||||||||||||||
Santa Cruz | 1,200,000 | 8.16 | 1,200,000 | 10.09 | |||||||||||||||||||||
1,816,055 | 12.35 | 1,723,784 | 14.5 | ||||||||||||||||||||||
Northern California Total | 8,616,870 | 58.61 | 7,363,888 | 61.94 | |||||||||||||||||||||
Southern California | |||||||||||||||||||||||||
Los Angeles | 4,875,928 | 33.18 | 4,121,933 | 34.66 | |||||||||||||||||||||
San Diego | 196,663 | 1.34 | 207,338 | 1.74 | |||||||||||||||||||||
San Bernardino | 137,800 | 0.94 | — | — | |||||||||||||||||||||
Orange | 871,169 | 5.93 | 197,858 | 1.66 | |||||||||||||||||||||
6,081,560 | 41.39 | 4,527,129 | 38.06 | ||||||||||||||||||||||
Total Secured Loans | $ | 14,698,430 | 100 | % | $ | 11,891,017 | 100 | % | |||||||||||||||||
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 have approved the borrowers up to a maximum loan balance; however, disbursements will be made periodically as phases of the construction are completed or at such other times as the loan documents may require, and will be funded from available cash balances and future cash receipts. The company does not maintain a separate cash reserve to fund undisbursed construction loan obligations. 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, 2013, 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. At December 31, 2013, the company had one rehabilitation loan which was acquired with an outstanding principal balance of $260,000 and which had been arranged for acquisition by RMC. Rehabilitation loan proceeds are generally used to acquire and remodel single family homes for future sale or rental. As of December 31, 2013, the company had no obligation to fund any additional amounts on the rehabilitation loan. Upon project completion, rehabilitation loans are reclassified as permanent loans. Funding of rehabilitation loans is limited to 15% of the loan portfolio. | |||||||||||||||||||||||||
RMC arranged for the company to purchase loans from an unaffiliated lender who is the servicer of the loans. The unpaid balance of these loans at December 31, 2013 was $3,099,510. The loans generally have the following characteristics: | |||||||||||||||||||||||||
● | Secured by first deeds of trust on single-family, real property located in California; | ||||||||||||||||||||||||
● | Monthly payments of interest only at fixed rates; | ||||||||||||||||||||||||
● | Terms of 5 to 11 months, interest rate, LTV and collateral are comparable to loans arranged by RMC. | ||||||||||||||||||||||||
Lien position | |||||||||||||||||||||||||
Secured loans had the lien positions presented in the following table. | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
First trust deeds | 35 | $ | 10,695,440 | 73 | % | 30 | $ | 8,241,074 | 69 | % | |||||||||||||||
Second trust deeds | 16 | 4,002,990 | 27 | 11 | 3,649,943 | 31 | |||||||||||||||||||
Total secured loans | 51 | 14,698,430 | 100 | % | 41 | 11,891,017 | 100 | % | |||||||||||||||||
Liens due other lenders at loan closing | 9,783,711 | 7,182,065 | |||||||||||||||||||||||
Total debt | $ | 24,482,141 | $ | 19,073,082 | |||||||||||||||||||||
Appraised property value at loan closing | $ | 43,596,000 | $ | 37,369,615 | |||||||||||||||||||||
Percent of total debt to appraised values (LTV) at loan closing (1) | 56.16 | % | 51.04 | % | |||||||||||||||||||||
-1 | Based on appraised values and liens due other lenders at loan closing. The loan to value computation does not take into account subsequent increases or decreases in security property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders by payments or interest accruals, if any. | ||||||||||||||||||||||||
Property type | |||||||||||||||||||||||||
Secured loans summarized by property type are presented in the following table. | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
Single family | 46 | $ | 13,300,082 | 91 | % | 39 | $ | 10,820,554 | 91 | % | |||||||||||||||
Multi-family | 2 | 349,877 | 2 | 1 | 670,463 | 6 | |||||||||||||||||||
Commercial | 3 | 1,048,471 | 7 | 1 | 400,000 | 3 | |||||||||||||||||||
Total secured loans | 51 | $ | 14,698,430 | 100 | % | 41 | $ | 11,891,017 | 100 | % | |||||||||||||||
Scheduled maturities | |||||||||||||||||||||||||
Secured loans are scheduled to mature as presented in the following table. | |||||||||||||||||||||||||
Scheduled maturities at December 31, 2013 | Loans | Principal | Percent | ||||||||||||||||||||||
2014 | 17 | $ | 5,396,060 | 37 | % | ||||||||||||||||||||
2015 | 5 | 2,363,375 | 16 | ||||||||||||||||||||||
2016 | 7 | 1,731,495 | 12 | ||||||||||||||||||||||
2017 | 6 | 1,612,797 | 11 | ||||||||||||||||||||||
2018 | 13 | 2,768,903 | 19 | ||||||||||||||||||||||
Thereafter | 3 | 825,800 | 5 | ||||||||||||||||||||||
Total secured loans | 51 | $ | 14,698,430 | 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 three and one loan during 2013 and 2012, respectively, with aggregate principal balances of $1,515,723 and $690,672, respectively. | |||||||||||||||||||||||||
Delinquency | |||||||||||||||||||||||||
Secured loans summarized by payment delinquency are presented in the following table. | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||
30-89 days | $ | 596,967 | 327,702 | ||||||||||||||||||||||
90-179 days | — | 199,910 | |||||||||||||||||||||||
180 or more days | — | — | |||||||||||||||||||||||
Total past due | 596,967 | 527,612 | |||||||||||||||||||||||
Current | 14,101,463 | 11,363,405 | |||||||||||||||||||||||
Total secured loans | $ | 14,698,430 | 11,891,017 | ||||||||||||||||||||||
Modifications and troubled debt restructurings | |||||||||||||||||||||||||
There were no loan modifications made during 2013. At December 31, 2012, one performing interest-only loan was modified to extend its maturity date from July 1, 2012 to July 1, 2013 at substantially the same terms except the borrower repaid $300,000 of the original principal balance and principal and interest payments will be made on a 25 year amortization until the new maturity date. The company has not modified a loan that qualified for treatment as a troubled debt restructuring. | |||||||||||||||||||||||||
Loans in non-accrual status | |||||||||||||||||||||||||
At December 31, 2013 and 2012, there were no loans designated in non-accrual status. | |||||||||||||||||||||||||
Impaired loans/allowance for loan losses | |||||||||||||||||||||||||
At December 31, 2013 and 2012, the company had not designated any loans as impaired and had not recorded an allowance for loan losses as all loans were deemed to have protective equity (i.e., low loan-to-value ratio) such that collection is reasonably assured for amounts owing. |
Note_5_Fair_Value
Note 5 - Fair Value | 12 Months Ended | ||
Dec. 31, 2013 | |||
Fair Value Disclosures [Abstract] | ' | ||
Fair Value Disclosures [Text Block] | ' | ||
NOTE 5 – 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, 2013 or 2012. | |||
The following methods and assumptions are used when estimating fair value. | |||
(a) | Secured loans (Level 2) - The recorded amount of the performing loans (i.e. the loan balance) is deemed to approximate the fair value. Each loan is reviewed for its delinquency, protective equity (LTV) adjusted for the most recent valuation of the underlying collateral, remaining term to maturity, borrower’s payment history and other factors. Also considered is the limited resale market for the loans. Most companies or individuals making similar loans as the partnership intend to hold the loans until maturity as the average contractual term of the loans (and the historical experience of the time the loan is outstanding due to pre-payments) is shorter than conventional mortgages. Further there are no prepayment penalties to be collected and any loan buyers would be hesitant to risk paying above par. Due to these factors sales of the loans are infrequent and an active market does not exist. | ||
(b) | Secured loans, designated impaired (Level 2) – Secured loans, designated impaired are deemed collateral dependent, and the fair value of the loan is the lesser of the fair value of the collateral or the enforceable amount owing under the note. 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 Level 2 inputs. | ||
The following methods are used depending upon the property type of the collateral. | |||
Single family – Management’s preferred method for determining the fair market value of its single-family residential assets is the sale comparison method. Management primarily obtains sale comps via its subscription to the RealQuest service, but also uses free online services such as Zillow.com and other available resources to supplement this data. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, number of bedrooms and bathrooms, square footage, sale date, condition, and year built. | |||
Where sufficient, applicable sale comps are not available or deemed unreliable, management will seek additional information in the form of broker’s opinions of value or appraisals. | |||
Multi-family residential - Management’s preferred method for determining the aggregate retail value of its multifamily units is the sale comparison method. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, rental income, number units, composition of units by the number of bedrooms and bathrooms, square footage,, condition, amenities, and year built. | |||
Where adequate sale comps are not available, management will seek additional information in the form of broker’s 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, 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 - Where commercial rental income information is available, management’s preferred method for determining the fair value of its commercial real estate assets is the direct capitalization method. In order to determine market cap rates for properties of the same class and location as the subject, management refers to reputable third-party sources such as the CBRE Cap Rate Survey. Management then applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing commercial rental project. When 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 | |||
Management supplements the direct capitalization method with additional information in the form of a sale comparison analysis (where adequate sale comps are available), broker’s opinion of value, or appraisal. | |||
Commercial land – Commercial land has many variations/uses, thus requiring management to employ a variety of methods depending upon the unique characteristics of the subject land. Market in the form of a sale comparison analysis (where adequate sale comps are available), broker’s opinion of value, or appraisal are used. |
Note_6_Commitments_and_Conting
Note 6 - Commitments and Contingencies, Other Than Loan Commitments and Syndication Costs | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE 6 – COMMITMENTS AND CONTINGENCIES, OTHER THAN LOAN COMMITMENTS AND SYNDICATION COSTS | |
Legal proceedings | |
In the normal course of business, the company may become involved in various legal proceedings such as assignment of rents, bankruptcy proceedings, appointment of receivers, unlawful detainers, judicial foreclosure, etc., to enforce the provisions of the deeds of trust, collect the debt owed under the promissory notes, or to protect, or recoup its investment from the real property secured by the deeds of trust and to resolve disputes between borrowers, lenders, lien holders and mechanics. None of these actions typically would be of any material importance. As of December 31, 2013, the company is not involved in any legal proceedings other than those that would be considered part of the normal course of business. | |
Commitments | |
There were no commitments other than those disclosed in Note 4. |
Note_7_Subsequent_Events
Note 7 - Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 7 – SUBSEQUENT EVENTS | |
None |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Use of Estimates, Policy [Policy Text Block] | ' | ||
Management estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“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. | |||
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. | ||
- | 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. | ||
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. | |||
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). In some prior years, as has been previously noted, the appraisal process, was further complicated by the low transaction volumes of which a very high percentage were considered to distressed sales, and other poor market conditions. | |||
Management has the requisite familiarity with the markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, 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. | |||
Since inception through December 31, 2013, the company has distributed cash of $2,749,874 (which includes $1,170,365 reinvested in DRIP units) to the members, based upon the managers’ projections of net income using several variables which included but were not limited to, an average rate of return for the loan portfolio, turnover rate of the loan portfolio, and the availability of quality loans for investment. The company’s net income, applicable to members, during this period has been $2,182,994. In 2014, provided the company becomes and remains fully invested in quality mortgage loans, this difference of $566,880 should diminish. In 2013, cash distributed to members was $1,076,395 and net income attributed to members was $875,777. | |||
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 matured 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 administration fees are capitalized and amortized over the life of the loan on a straight-line method which approximates the effective interest method. | |||
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' | ||
Allowance for loan losses | |||
Loans and the related accrued interest and advances are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Delinquencies are determined based upon contractual terms. For impaired loans, a provision is made for loan losses to adjust the allowance for loan losses to an amount considered by management to be adequate, with due consideration to collateral values, such that the net carrying amount (principal, plus advances, plus accrued interest less the specific allowance) is reduced to the present value of future cash flows discounted at the loan’s effective interest rate, or, if a loan is collateral dependent, to 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 if planned disposition of the asset securing a loan is by way of sale. | |||
The fair value estimates are derived from information available in the real estate markets including similar property, and may require the experience and judgment of third parties such as real estate appraisers and brokers. | |||
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 dollar amount of the deficiency of the fair value of the underlying collateral to the loan balance) is computed. | |||
Based on its knowledge of the borrowers and their historical (and expected) performance, and the exposure to loss, management estimates an appropriate reserve by property type for probable credit losses in the portfolio. Because the company is an asset-based lender, except as to owner-occupied residences, and because specific regions, neighborhoods and even properties within the same neighborhoods, vary significantly as to real estate values and transaction activity, general market trends, which may be indicative of a change in the risk of a loss, and a borrower’s credit worthiness are secondary to the condition of the property, the property type and the neighborhood/region in which the property is located, and do not enter substantially into the determination of the amount of the non-specific (i.e. general) reserves. | |||
The company charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. | |||
Earnings Per Share, Policy [Policy Text Block] | ' | ||
Net income per $1,000 invested | |||
Amounts reflected in the statements of income as net income per $1,000 invested by members for the entire period are amounts allocated to members who had their investment throughout the period. Individual income is allocated each month based on the members’ pro rata share of members’ capital. Because the net income (loss) percentage may vary from month to month, amounts per $1,000 will vary for those individuals who made or withdrew investments during the period, or select other options. | |||
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. |
Note_1_Organization_and_Genera1
Note 1 - Organization and General (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Disclosure Text Block [Abstract] | ' | ||||||||
Schedule of Member Capital Reconciliation [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Members’ capital per financial statements | $ | 15,660,726 | $ | 13,651,824 | |||||
Unallocated syndication costs | 754,491 | 671,232 | |||||||
Allowance for loan losses | — | — | |||||||
Formation loans receivable | 972,603 | 931,406 | |||||||
Members’ capital tax basis | $ | 17,387,820 | $ | 15,254,462 |
Note_3_Managers_and_Other_Rela1
Note 3 - Managers and Other Related Parties (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Related Party Transactions [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Member contributions to date | $ | 17,209,819 | $ | 15,272,017 | |||||
Balance, January 1 | $ | 931,406 | $ | 741,215 | |||||
Formation Loan made | 134,896 | 264,312 | |||||||
Unamortized discount on imputed interest | 4,724 | (21,261 | ) | ||||||
Formation Loan made, net | 1,071,026 | 984,266 | |||||||
Repayments received from RMC | (93,141 | ) | (74,121 | ) | |||||
Early withdrawal penalties applied | (558 | ) | — | ||||||
Formation loan, net | 977,327 | 910,145 | |||||||
Unamortized discount on imputed interest | (4,724 | ) | 21,261 | ||||||
Balance, December 31 | $ | 972,603 | $ | 931,406 | |||||
Percent loaned to date | 7 | % | 7 | % | |||||
Formation Loan, Future Minimum Payments [Table Text Block] | ' | ||||||||
2014 | $ | 97,260 | |||||||
2015 | 97,260 | ||||||||
2016 | 97,260 | ||||||||
2017 | 97,260 | ||||||||
2018 | 97,260 | ||||||||
Thereafter | 486,303 | ||||||||
Total | $ | 972,603 | |||||||
Asset Management Fee Activities [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Maximum chargeable by the managers | $ | 124,100 | $ | 98,398 | |||||
Waived by the managers | (124,100 | ) | (98,398 | ) | |||||
Charged | $ | — | $ | — | |||||
Syndication Costs [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Balance, January 1 | $ | 671,232 | $ | 503,698 | |||||
Costs reimbursed to RMC (1) | 83,664 | 167,534 | |||||||
Costs paid by the company | — | — | |||||||
Early withdrawal penalties applied (3) | (405 | ) | (— | ) | |||||
Allocated to date (2) | — | — | |||||||
Balance, December 31 | $ | 754,491 | $ | 671,232 | |||||
Gross offering proceeds | $ | 16,766,469 | $ | 14,916,267 | |||||
Percent reimbursed to RMC | 4.5 | % | 4.5 | % |
Note_4_Loans_Tables
Note 4 - Loans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||
Secured Loan Principal Transactions [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal, January 1 | $ | 11,891,017 | $ | 8,253,328 | |||||||||||||||||||||
Loans funded | 7,358,376 | 4,266,763 | |||||||||||||||||||||||
Loans acquired from affiliates | 8,184,100 | 6,444,700 | |||||||||||||||||||||||
Payments received | (12,735,063 | ) | (7,073,774 | ) | |||||||||||||||||||||
Principal, December 31 | $ | 14,698,430 | $ | 11,891,017 | |||||||||||||||||||||
Secured Loans Characteristics [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of secured loans | 51 | 41 | |||||||||||||||||||||||
Secured loans – principal | $ | 14,698,430 | $ | 11,891,017 | |||||||||||||||||||||
Secured loans – lowest interest rate (fixed) | 7.25 | % | 7.75 | % | |||||||||||||||||||||
Secured loans – highest interest rate (fixed) | 11 | % | 11 | % | |||||||||||||||||||||
Average secured loan – principal | $ | 288,205 | $ | 290,025 | |||||||||||||||||||||
Average principal as percent of total principal | 1.96 | % | 2.44 | % | |||||||||||||||||||||
Average principal as percent of members’ capital | 1.84 | % | 2.12 | % | |||||||||||||||||||||
Average principal as percent of total assets | 1.79 | % | 2.07 | % | |||||||||||||||||||||
Largest secured loan – principal | $ | 1,200,000 | $ | 1,200,000 | |||||||||||||||||||||
Largest principal as percent of total principal | 8.16 | % | 10.09 | % | |||||||||||||||||||||
Largest principal as percent of members’ capital | 7.66 | % | 8.79 | % | |||||||||||||||||||||
Largest principal as percent of total assets | 7.44 | % | 8.56 | % | |||||||||||||||||||||
Smallest secured loan – principal | $ | 68,276 | $ | 74,857 | |||||||||||||||||||||
Smallest principal as percent of total principal | 0.46 | % | 0.63 | % | |||||||||||||||||||||
Smallest principal as percent of members’ capital | 0.44 | % | 0.55 | % | |||||||||||||||||||||
Smallest principal as percent of total assets | 0.42 | % | 0.53 | % | |||||||||||||||||||||
Number of counties where security is located (all California) | 13 | 13 | |||||||||||||||||||||||
Largest percentage of principal in one county | 33.18 | % | 34.66 | % | |||||||||||||||||||||
Number of secured loans in foreclosure | — | — | |||||||||||||||||||||||
Secured loans in foreclosure – principal | — | — | |||||||||||||||||||||||
Number of secured loans with an interest reserve | — | — | |||||||||||||||||||||||
Interest reserves | $ | — | $ | — | |||||||||||||||||||||
Secured Loans Distributed within California [Table Text Block] | ' | ||||||||||||||||||||||||
31-Dec-13 | 31-Dec-12 | ||||||||||||||||||||||||
Unpaid Principal Balance | Percent | Unpaid Principal Balance | Percent | ||||||||||||||||||||||
San Francisco | $ | 2,081,417 | 14.16 | % | $ | 2,104,019 | 17.69 | % | |||||||||||||||||
San Francisco Bay Area | |||||||||||||||||||||||||
Sonoma | 68,276 | 0.46 | 174,689 | 1.47 | |||||||||||||||||||||
Alameda | 1,328,638 | 9.04 | 1,199,567 | 10.09 | |||||||||||||||||||||
Santa Clara | 1,298,471 | 8.83 | 1,070,463 | 9 | |||||||||||||||||||||
Contra Costa | 735,324 | 5 | 428,693 | 3.61 | |||||||||||||||||||||
Marin | — | — | 244,302 | 2.06 | |||||||||||||||||||||
San Mateo | 1,288,689 | 8.77 | 418,371 | 3.52 | |||||||||||||||||||||
4,719,398 | 32.1 | 3,536,085 | 29.75 | ||||||||||||||||||||||
Other Northern California | |||||||||||||||||||||||||
El Dorado | 433,650 | 2.95 | — | — | |||||||||||||||||||||
Nevada | — | — | 340,000 | 2.86 | |||||||||||||||||||||
Monterey | 182,405 | 1.24 | 183,784 | 1.55 | |||||||||||||||||||||
Santa Cruz | 1,200,000 | 8.16 | 1,200,000 | 10.09 | |||||||||||||||||||||
1,816,055 | 12.35 | 1,723,784 | 14.5 | ||||||||||||||||||||||
Northern California Total | 8,616,870 | 58.61 | 7,363,888 | 61.94 | |||||||||||||||||||||
Southern California | |||||||||||||||||||||||||
Los Angeles | 4,875,928 | 33.18 | 4,121,933 | 34.66 | |||||||||||||||||||||
San Diego | 196,663 | 1.34 | 207,338 | 1.74 | |||||||||||||||||||||
San Bernardino | 137,800 | 0.94 | — | — | |||||||||||||||||||||
Orange | 871,169 | 5.93 | 197,858 | 1.66 | |||||||||||||||||||||
6,081,560 | 41.39 | 4,527,129 | 38.06 | ||||||||||||||||||||||
Total Secured Loans | $ | 14,698,430 | 100 | % | $ | 11,891,017 | 100 | % | |||||||||||||||||
Secured Loans by Lien Position in the Collateral [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
First trust deeds | 35 | $ | 10,695,440 | 73 | % | 30 | $ | 8,241,074 | 69 | % | |||||||||||||||
Second trust deeds | 16 | 4,002,990 | 27 | 11 | 3,649,943 | 31 | |||||||||||||||||||
Total secured loans | 51 | 14,698,430 | 100 | % | 41 | 11,891,017 | 100 | % | |||||||||||||||||
Liens due other lenders at loan closing | 9,783,711 | 7,182,065 | |||||||||||||||||||||||
Total debt | $ | 24,482,141 | $ | 19,073,082 | |||||||||||||||||||||
Appraised property value at loan closing | $ | 43,596,000 | $ | 37,369,615 | |||||||||||||||||||||
Percent of total debt to appraised values (LTV) at loan closing (1) | 56.16 | % | 51.04 | % | |||||||||||||||||||||
Secured Loans by Property Type of the Collateral [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
Single family | 46 | $ | 13,300,082 | 91 | % | 39 | $ | 10,820,554 | 91 | % | |||||||||||||||
Multi-family | 2 | 349,877 | 2 | 1 | 670,463 | 6 | |||||||||||||||||||
Commercial | 3 | 1,048,471 | 7 | 1 | 400,000 | 3 | |||||||||||||||||||
Total secured loans | 51 | $ | 14,698,430 | 100 | % | 41 | $ | 11,891,017 | 100 | % | |||||||||||||||
Secured Loans Scheduled Maturities [Table Text Block] | ' | ||||||||||||||||||||||||
Scheduled maturities at December 31, 2013 | Loans | Principal | Percent | ||||||||||||||||||||||
2014 | 17 | $ | 5,396,060 | 37 | % | ||||||||||||||||||||
2015 | 5 | 2,363,375 | 16 | ||||||||||||||||||||||
2016 | 7 | 1,731,495 | 12 | ||||||||||||||||||||||
2017 | 6 | 1,612,797 | 11 | ||||||||||||||||||||||
2018 | 13 | 2,768,903 | 19 | ||||||||||||||||||||||
Thereafter | 3 | 825,800 | 5 | ||||||||||||||||||||||
Total secured loans | 51 | $ | 14,698,430 | 100 | % | ||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Past Due | |||||||||||||||||||||||||
30-89 days | $ | 596,967 | 327,702 | ||||||||||||||||||||||
90-179 days | — | 199,910 | |||||||||||||||||||||||
180 or more days | — | — | |||||||||||||||||||||||
Total past due | 596,967 | 527,612 | |||||||||||||||||||||||
Current | 14,101,463 | 11,363,405 | |||||||||||||||||||||||
Total secured loans | $ | 14,698,430 | 11,891,017 |
Note_1_Organization_and_Genera2
Note 1 - Organization and General (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 1 - Organization and General (Details) [Line Items] | ' | ' |
Capital Units, Authorized (in Shares) | ' | 150,000,000 |
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | 1.00% | ' |
State and Local Income Tax Expense (Benefit), Continuing Operations (in Dollars) | $800 | ' |
Unit Redemption Program, Years After Purchase | 1 | ' |
Maximum Capital Units for Redemption Per Quarter Per Individual (in Dollars) | $100,000 | ' |
Maximum Percentage of Members Outstanding Units for RedemptionPerQuarterPerIndividual | 25.00% | ' |
Maximum Percentage of Weighted Average Number of Members Outstanding Units During Twelve Months for Redemption | 5.00% | ' |
Minimum Unit Sales, Number of Units | 1 | ' |
Syndication Costs Reimbursement, Percent of Gross Offering Proceeds | 10.00% | ' |
Base Percentage of Aggregate Capital Accounts for Required Contribution | 1.00% | ' |
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% | ' |
Distribution Reinvestment Plan [Member] | ' | ' |
Note 1 - Organization and General (Details) [Line Items] | ' | ' |
Capital Units, Authorized (in Shares) | ' | 37,500,000 |
Formation Loan [Member] | ' | ' |
Note 1 - Organization and General (Details) [Line Items] | ' | ' |
Formation Loan Duration | '10 years | ' |
Formation Loan Number of Payments | 10 | ' |
Note_1_Organization_and_Genera3
Note 1 - Organization and General (Details) - Reconciliation of Members' Capital in the Financial Statements to the Tax Basis of Company Capital (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 1 - Organization and General (Details) - Reconciliation of Members' Capital in the Financial Statements to the Tax Basis of Company Capital [Line Items] | ' | ' | ' |
Membersb capital per financial statements | $15,660,726 | $13,651,824 | $10,126,232 |
Unallocated syndication costs | 83,259 | 167,534 | ' |
Formation loans receivable | 972,603 | 931,406 | ' |
Membersb capital tax basis | 17,387,820 | 15,254,462 | ' |
Current Offering [Member] | ' | ' | ' |
Note 1 - Organization and General (Details) - Reconciliation of Members' Capital in the Financial Statements to the Tax Basis of Company Capital [Line Items] | ' | ' | ' |
Unallocated syndication costs | $754,491 | $671,232 | ' |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 63 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Scenario, Forecast [Member] | Earnings Distributed To Members [Member] | Earnings Distributed To Members [Member] | Earnings Distributed Used In DRIP [Member] | Minimum [Member] | Maximum [Member] | |||
Earnings Distributed To Members [Member] | ||||||||
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Estimating Real Property Value, Number of Approaches | 3 | ' | ' | ' | ' | ' | ' | ' |
Partners' Capital Account, Distributions | ($606,891) | ($478,169) | ' | $1,076,395 | $2,749,874 | $1,170,365 | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 884,623 | 626,617 | 566,880 | 875,777 | 2,182,994 | ' | ' | ' |
Cash and Cash Equivalents, Maximum Initial Maturity | '3 months | ' | ' | ' | ' | ' | ' | ' |
Inception of the Formation Loan | ' | ' | ' | ' | ' | ' | '1 year | '2 years |
Capital Invested | $1,000 | ' | ' | ' | ' | ' | ' | ' |
Note_3_Managers_and_Other_Rela2
Note 3 - Managers and Other Related Parties (Details) (USD $) | 6 Months Ended | 12 Months Ended | |
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | ' | $884,623 | $626,617 |
Debt Instrument, Duration | ' | '10 years | ' |
Loan Brokerage Commission Percent Minimum | ' | 2.00% | ' |
Loan Brokerage Commission Percent Maximum | ' | 5.00% | ' |
Loan Brokerage Commissions, Maximum Percent of Assets | ' | 4.00% | ' |
Fees and Commissions | ' | 151,397 | 168,435 |
Fees and Commissions, Other | ' | 28,224 | 12,177 |
Administrative Fees, Percentage | ' | 1.00% | ' |
Payment for Administrative Fees | ' | 157,997 | 104,630 |
Bank Servicing Fees | ' | 31,590 | 21,357 |
Management Fee, Percentage | ' | 0.75% | ' |
Operating Expenses | ' | 187,139 | 124,931 |
Marketing Reallownaces, Percent of Gross Offering Proceeds | ' | 1.00% | ' |
Syndication Costs, Percent of Gross Proceeds | 4.50% | 4.50% | 4.50% |
Organizational and Offering Expenses Reimbursement Received | ' | 2,721,000 | 2,318,000 |
Due to Related Parties | 1,675,000 | 1,966,000 | 1,675,000 |
Capital Managers [Member] | ' | ' | ' |
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 6,266 | 8,846 | 6,266 |
Management [Member] | ' | ' | ' |
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ' | ' | ' |
Operating Expenses | ' | $119,136 | $74,464 |
Maximum [Member] | ' | ' | ' |
Note 3 - Managers and Other Related Parties (Details) [Line Items] | ' | ' | ' |
Servicing Fees, Percentage | ' | 0.25% | ' |
Note_3_Managers_and_Other_Rela3
Note 3 - Managers and Other Related Parties (Details) - Formation Loan - Transactions (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Formation Loan - Transactions [Abstract] | ' | ' |
Member contributions to date | $17,209,819 | $15,272,017 |
Formation Loan Balance | 931,406 | 741,215 |
Percent loaned to date | 7.00% | 7.00% |
Formation Loan made | 134,896 | 264,312 |
Unamortized discount on imputed interest | 4,724 | -21,261 |
Formation Loan made, net | 1,071,026 | 984,266 |
Repayments received from RMC | -93,141 | -74,121 |
Early withdrawal penalties applied | -558 | ' |
Formation loan, net | 977,327 | 910,145 |
Unamortized discount on imputed interest | -4,724 | 21,261 |
Formation Loan Balance | $972,603 | $931,406 |
Note_3_Managers_and_Other_Rela4
Note 3 - Managers and Other Related Parties (Details) - Formation Loan - Future Minimum Payments (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Formation Loan - Future Minimum Payments [Abstract] | ' | ' | ' |
2014 | $97,260 | ' | ' |
2015 | 97,260 | ' | ' |
2016 | 97,260 | ' | ' |
2017 | 97,260 | ' | ' |
2018 | 97,260 | ' | ' |
Thereafter | 486,303 | ' | ' |
Total | $972,603 | $931,406 | $741,215 |
Note_3_Managers_and_Other_Rela5
Note 3 - Managers and Other Related Parties (Details) - Asset Management Fee Activities (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Asset Management Fee Activities [Abstract] | ' | ' |
Maximum chargeable by the managers | $124,100 | $98,398 |
Waived by the managers | -124,100 | -98,398 |
Charged | $0 | $0 |
Note_3_Managers_and_Other_Rela6
Note 3 - Managers and Other Related Parties (Details) - Syndication Costs (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | |||
Note 3 - Managers and Other Related Parties (Details) - Syndication Costs [Line Items] | ' | ' | ||
Balance, January 1 | $671,232 | $503,698 | ||
Costs reimbursed to RMC (1) | 83,664 | [1] | 167,534 | [1] |
Early withdrawal penalties applied (3) | -405 | [2] | ' | [2] |
Allocated to date (2) | ' | [3] | ' | [3] |
Balance, December 31 | 754,491 | 671,232 | ||
Gross offering proceeds | 1,943,226 | 3,770,074 | ||
Percent reimbursed to RMC | 4.50% | 4.50% | ||
Current Offering [Member] | ' | ' | ||
Note 3 - Managers and Other Related Parties (Details) - Syndication Costs [Line Items] | ' | ' | ||
Gross offering proceeds | $16,766,469 | $14,916,267 | ||
[1] | As of December 31, 2013, RMC had incurred approximately $2,721,000 of syndication costs for the company and approximately $1,966,000 remains to be reimbursed by the company to RMC. As of December 31, 2012, RMC had incurred approximately $2,318,000 of syndication costs for the company and approximately $1,675,000 remained to be reimbursed to RMC. | |||
[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. | |||
[3] | Allocation of the syndication costs to the individual investors' capital accounts begins after the company's fifth full fiscal year, in accordance with the terms of the company's operating agreement and IRS Code Section 709. See also the Accounting Policy footnote - Syndication costs. |
Note_4_Loans_Details
Note 4 - Loans (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Loans Receivable, Term | '5 years | ' | ' |
Loans Receivable, Percent of Total | 100.00% | 100.00% | ' |
Loans Receivable, Percent of Aggregate Principal | 95.00% | ' | ' |
Loans Receivable, Number of Interest Only Loans | 23 | ' | ' |
Loans Receivable, Amortization Term | '30 years | ' | ' |
Loans Receivable Largest Loan | $1,200,000 | $1,200,000 | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 14,698,430 | 11,891,017 | 8,253,328 |
Mortgage Loans on Real Estate, Number of Loans | 51 | 41 | ' |
Proceeds from Collection of Loans Receivable | 12,735,063 | 7,073,774 | ' |
Duration of Amortization | ' | '25 years | ' |
Financing Receivable, Recorded Investment, Nonaccrual Status | 0 | 0 | ' |
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 0 | 0 | ' |
Interest Only [Member] | Modified [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Mortgage Loans on Real Estate, Number of Loans | ' | 1 | ' |
Arranged for Acquisition by RMC [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 3,099,510 | ' | ' |
Rehabilitation Loans [Member] | Arranged for Acquisition by RMC [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 260,000 | ' | ' |
Rehabilitation Loans [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Percentage of Loan Portfolio Limited for Funding of Rehabilitation Loans | 15.00% | ' | ' |
Renewals [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Mortgage Loans on Real Estate, Commercial and Consumer, Net | 1,515,723 | 690,672 | ' |
Five Year Term or Less [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Loans Receivable, Percent of Total | 94.00% | ' | ' |
Interest Only [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Loans Receivable, Percent of Aggregate Principal | 57.00% | ' | ' |
Largest Loan [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Loans Receivable, Percent of Total | 8.16% | ' | ' |
Loans Receivable Largest Loan | 1,200,000 | ' | ' |
Loans Receivable, Percent of Assets | 7.44% | ' | ' |
Loans Receivable, Yield of Loan Acqured | 8.75% | ' | ' |
Larger Loans [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Loans Receivable, Percent of Aggregate Principal | 10.00% | ' | ' |
Performing Interest Loan [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Proceeds from Collection of Loans Receivable | ' | $300,000 | ' |
Maximum [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Loans Receivable, Remaining Term | '5 years | ' | ' |
Debt Instrument Maturity Term | '11 months | ' | ' |
Minimum [Member] | ' | ' | ' |
Note 4 - Loans (Details) [Line Items] | ' | ' | ' |
Loans Receivable, Remaining Term | '5 years | ' | ' |
Debt Instrument Maturity Term | '5 months | ' | ' |
Note_4_Loans_Details_Secured_L
Note 4 - Loans (Details) - Secured Loan Transactions (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Secured Loan Transactions [Abstract] | ' | ' |
Secured loans | $11,891,017 | $8,253,328 |
Loans funded | 7,358,376 | 4,266,763 |
Loans acquired from affiliates | 8,184,100 | 6,444,700 |
Payments received | -12,735,063 | -7,073,774 |
Secured loans | $14,698,430 | $11,891,017 |
Note_4_Loans_Details_Secured_L1
Note 4 - Loans (Details) - Secured Loans Characteristics (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 4 - Loans (Details) - Secured Loans Characteristics [Line Items] | ' | ' | ' |
Number of secured loans | 51 | 41 | ' |
Secured loans b principal (in Dollars) | $14,698,430 | $11,891,017 | $8,253,328 |
Secured loans b lowest interest rate (fixed) | 7.25% | 7.75% | ' |
Secured loans b highest interest rate (fixed) | 11.00% | 11.00% | ' |
Average secured loan b principal (in Dollars) | 288,205 | 290,025 | ' |
Average principal as percent of total principal | 1.96% | 2.44% | ' |
Average principal as percent of membersb capital | 1.84% | 2.12% | ' |
Average principal as percent of total assets | 1.79% | 2.07% | ' |
Largest secured loan b principal (in Dollars) | 1,200,000 | 1,200,000 | ' |
Largest principal as percent of total principal | 8.16% | 10.09% | ' |
Largest principal as percent of membersb capital | 7.66% | 8.79% | ' |
Largest principal as percent of total assets | 7.44% | 8.56% | ' |
Smallest secured loan b principal (in Dollars) | $68,276 | $74,857 | ' |
Smallest principal as percent of total principal | 0.46% | 0.63% | ' |
Smallest principal as percent of membersb capital | 0.44% | 0.55% | ' |
Smallest principal as percent of total assets | 0.42% | 0.53% | ' |
Number of counties where security is located (all California) | 13 | 13 | ' |
Largest percentage of principal in one county | 33.18% | 34.66% | ' |
Note_4_Loans_Details_Secured_L2
Note 4 - Loans (Details) - Secured Loans Distributed within California (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | $14,698,430 | $11,891,017 | $8,253,328 |
Number of loans | 100.00% | 100.00% | ' |
San Francisco [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 2,081,417 | 2,104,019 | ' |
Number of loans | 14.16% | 17.69% | ' |
Sonoma [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 68,276 | 174,689 | ' |
Number of loans | 0.46% | 1.47% | ' |
Alameda [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 1,328,638 | 1,199,567 | ' |
Number of loans | 9.04% | 10.09% | ' |
Santa Clara [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 1,298,471 | 1,070,463 | ' |
Number of loans | 8.83% | 9.00% | ' |
Contra Costa [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 735,324 | 428,693 | ' |
Number of loans | 5.00% | 3.61% | ' |
Marin [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | ' | 244,302 | ' |
Number of loans | ' | 2.06% | ' |
San Mateo [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 1,288,689 | 418,371 | ' |
Number of loans | 8.77% | 3.52% | ' |
San Francisco Bay Area [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 4,719,398 | 3,536,085 | ' |
Number of loans | 32.10% | 29.75% | ' |
El Dorado [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 433,650 | ' | ' |
Number of loans | 2.95% | ' | ' |
NEVADA | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | ' | 340,000 | ' |
Number of loans | ' | 2.86% | ' |
Monterey [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 182,405 | 183,784 | ' |
Number of loans | 1.24% | 1.55% | ' |
Santa Cruz [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 1,200,000 | 1,200,000 | ' |
Number of loans | 8.16% | 10.09% | ' |
Other Northern California [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 1,816,055 | 1,723,784 | ' |
Number of loans | 12.35% | 14.50% | ' |
Northern California [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 8,616,870 | 7,363,888 | ' |
Number of loans | 58.61% | 61.94% | ' |
Southern California [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 6,081,560 | 4,527,129 | ' |
Number of loans | 41.39% | 38.06% | ' |
Los Angeles [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 4,875,928 | 4,121,933 | ' |
Number of loans | 33.18% | 34.66% | ' |
San Diego [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 196,663 | 207,338 | ' |
Number of loans | 1.34% | 1.74% | ' |
San Bernardino [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | 137,800 | ' | ' |
Number of loans | 0.94% | ' | ' |
Orange [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ' |
Secured loans b principal (in Dollars) | $871,169 | $197,858 | ' |
Number of loans | 5.93% | 1.66% | ' |
Note_4_Loans_Details_Secured_L3
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral (USD $) | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ' | ||
Loans | 51 | 41 | ' | ||
Secured loans b principal (in Dollars) | $14,698,430 | $11,891,017 | $8,253,328 | ||
Percent | 100.00% | 100.00% | ' | ||
Liens due other lenders at loan closing (in Dollars) | 9,783,711 | 7,182,065 | ' | ||
Total debt (in Dollars) | 24,482,141 | 19,073,082 | ' | ||
Appraised property value at loan closing (in Dollars) | 43,596,000 | 37,369,615 | ' | ||
Percent of total debt to appraised values (LTV) at loan closing (1) | 56.16% | [1] | 51.04% | [1] | ' |
First Trust Deeds [Member] | ' | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ' | ||
Loans | 35 | 30 | ' | ||
Secured loans b principal (in Dollars) | 10,695,440 | 8,241,074 | ' | ||
Percent | 73.00% | 69.00% | ' | ||
Second Trust Deeds [Member] | ' | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ' | ||
Loans | 16 | 11 | ' | ||
Secured loans b principal (in Dollars) | $4,002,990 | $3,649,943 | ' | ||
Percent | 27.00% | 31.00% | ' | ||
[1] | Based on appraised values and liens due other lenders at loan closing. The loan to value computation does not take into account subsequent increases or decreases in security property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders by payments or interest accruals, if any. |
Note_4_Loans_Details_Secured_L4
Note 4 - Loans (Details) - Secured Loans by Property Type (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 4 - Loans (Details) - Secured Loans by Property Type [Line Items] | ' | ' | ' |
Loans | 51 | 41 | ' |
Secured loans b principal (in Dollars) | $14,698,430 | $11,891,017 | $8,253,328 |
Percent | 100.00% | 100.00% | ' |
Single Family [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans by Property Type [Line Items] | ' | ' | ' |
Loans | 46 | 39 | ' |
Secured loans b principal (in Dollars) | 13,300,082 | 10,820,554 | ' |
Percent | 91.00% | 91.00% | ' |
Multi-Family [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans by Property Type [Line Items] | ' | ' | ' |
Loans | 2 | 1 | ' |
Secured loans b principal (in Dollars) | 349,877 | 670,463 | ' |
Percent | 2.00% | 6.00% | ' |
Commercial [Member] | ' | ' | ' |
Note 4 - Loans (Details) - Secured Loans by Property Type [Line Items] | ' | ' | ' |
Loans | 3 | 1 | ' |
Secured loans b principal (in Dollars) | $1,048,471 | $400,000 | ' |
Percent | 7.00% | 3.00% | ' |
Note_4_Loans_Details_Secured_L5
Note 4 - Loans (Details) - Secured Loans Scheduled Maturities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Secured Loans Scheduled Maturities [Abstract] | ' | ' | ' |
2014 | 17 | ' | ' |
2014 (in Dollars) | $5,396,060 | ' | ' |
2014 | 37.00% | ' | ' |
2015 | 5 | ' | ' |
2015 (in Dollars) | 2,363,375 | ' | ' |
2015 | 16.00% | ' | ' |
2016 | 7 | ' | ' |
2016 (in Dollars) | 1,731,495 | ' | ' |
2016 | 12.00% | ' | ' |
2017 | 6 | ' | ' |
2017 (in Dollars) | 1,612,797 | ' | ' |
2017 | 11.00% | ' | ' |
2018 | 13 | ' | ' |
2018 (in Dollars) | 2,768,903 | ' | ' |
2018 | 19.00% | ' | ' |
Thereafter | 3 | ' | ' |
Thereafter (in Dollars) | 825,800 | ' | ' |
Thereafter | 5.00% | ' | ' |
Total secured loans | 51 | 41 | ' |
Total secured loans (in Dollars) | $14,698,430 | $11,891,017 | $8,253,328 |
Total secured loans | 100.00% | ' | ' |
Note_4_Loans_Details_Secured_L6
Note 4 - Loans (Details) - Secured Loans Summarized by Payment Delinquency (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Principal | $14,698,430 | $11,891,017 | $8,253,328 |
Past Due 30-89 Days [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Principal | 596,967 | 327,702 | ' |
Past Due 90-179 Days [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Principal | ' | 199,910 | ' |
Total Past Due [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Principal | 596,967 | 527,612 | ' |
Current [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
Principal | $14,101,463 | $11,363,405 | ' |