Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 29, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
No Trading Symbol Flag | true | ||
Entity Registrant Name | Redwood Mortgage Investors IX | ||
Entity Central Index Key | 0001448038 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 81,893,976 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 000-55601 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 26-3541068 | ||
Entity Address, Address Line One | 177 Bovet Road | ||
Entity Address, Address Line Two | Suite 520 | ||
Entity Address, City or Town | San Mateo | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94402 | ||
City Area Code | 650 | ||
Local Phone Number | 365-5341 | ||
Entity Interactive Data Current | Yes | ||
Entity Public Float | $ 0 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 4,450,529 | $ 10,674,953 |
Loans | ||
Principal | 70,660,284 | 62,115,713 |
Advances | 14,040 | 21,041 |
Accrued interest | 680,146 | 473,966 |
Loan balances secured by deeds of trust | 71,354,470 | 62,610,720 |
Allowance for loan losses | (87,000) | |
Loan balances secured by deeds of trust, net | 71,267,470 | 62,610,720 |
Total assets | 75,717,999 | 73,285,673 |
LIABILITIES, INVESTORS IN APPLICANT STATUS, AND MEMBERS’ CAPITAL | ||
Accounts payable and accrued liabilities | 36,933 | 9,321 |
Commitments and contingencies (Note 5) | ||
Investors in applicant status | 651,500 | |
Members’ capital, net | 79,629,130 | 76,804,195 |
Receivable from manager (formation loan) | (3,948,064) | (4,179,343) |
Members’ capital, net, less formation loan | 75,681,066 | 72,624,852 |
Total liabilities, investors in applicant status and members’ capital | $ 75,717,999 | $ 73,285,673 |
Statements of Income
Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues, net | ||
Interest income | $ 5,994,790 | $ 5,200,702 |
Late fees | 51,997 | 20,285 |
Gain on sale, loans | 20,833 | 27,133 |
Total revenues | 6,067,620 | 5,248,120 |
Provision for loan losses | 87,000 | |
Operations expense | ||
Mortgage servicing fees | 166,878 | 151,457 |
Asset management fees, net (Note 3) | 278,103 | |
Professional services, net (Note 3) | 524,940 | 289,053 |
Other | 36,987 | 17,338 |
Total operations expense | 1,006,908 | 457,848 |
Net income | 4,973,712 | 4,790,272 |
Members (99%) | 4,923,975 | 4,742,369 |
Manager (1%) | $ 49,737 | $ 47,903 |
Statements of Income (Parenthet
Statements of Income (Parenthetical) - Redwood Mortgage Investors IX [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Members investment | 99.00% | 99.00% |
Manager investment | 1.00% | 1.00% |
Statements of Changes in Member
Statements of Changes in Members' Capital - USD ($) | 12 Months Ended | 123 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | ||
Beginning balance | $ 72,624,852 | |||
Net income | 4,973,712 | $ 4,790,272 | ||
Early withdrawal penalties | [1] | 19,415 | $ 60,290 | |
Ending balance | 75,681,066 | 72,624,852 | 75,681,066 | |
RMC [Member] | ||||
Early withdrawal penalties | 111,551 | 54,429 | ||
Investors In Applicant Status [Member] | ||||
Beginning balance | 651,500 | 3,270,312 | ||
Early withdrawal penalties | 0 | 0 | ||
Ending balance | 651,500 | |||
Investors In Applicant Status [Member] | Contributions On Application [Member] | ||||
Partners capital accounts | 2,666,508 | 10,413,923 | ||
Investors In Applicant Status [Member] | Contributions Admitted To Members Capital [Member] | ||||
Partners capital accounts | (3,318,008) | (13,025,630) | ||
Investors In Applicant Status [Member] | Premiums Paid On Application By RMC [Member] | ||||
Partners capital accounts | 12,355 | 52,990 | ||
Investors In Applicant Status [Member] | Premiums Admitted To Members Capital [Member] | ||||
Partners capital accounts | (12,355) | (60,095) | ||
Capital Members [Member] | ||||
Beginning balance | 79,198,453 | 66,450,424 | ||
Net income | 4,923,975 | 4,742,369 | ||
Organization and offering expenses allocated | (329,234) | (304,199) | ||
Early withdrawal penalties | 0 | 0 | ||
Ending balance | 81,755,930 | 79,198,453 | 81,755,930 | |
Capital Members [Member] | Contributions Admitted To Members Capital [Member] | ||||
Partners capital accounts | 3,318,008 | 13,025,630 | ||
Capital Members [Member] | Premiums Admitted To Members Capital [Member] | ||||
Partners capital accounts | 12,355 | 60,095 | ||
Capital Members [Member] | Earnings Distributed To Members [Member] | ||||
Partners capital accounts | (4,534,952) | (4,462,623) | ||
Capital Members [Member] | Earnings Distributed Used In DRIP [Member] | ||||
Partners capital accounts | 2,415,807 | 2,420,528 | ||
Capital Members [Member] | Member's Redemptions [Member] | ||||
Partners capital accounts | (3,248,482) | (2,733,771) | ||
Managers Capital Net [Member] | ||||
Beginning balance | 125,200 | 102,902 | ||
Net income | 49,737 | 47,903 | ||
Early withdrawal penalties | 0 | 0 | ||
Ending balance | 133,268 | 125,200 | 133,268 | |
Managers Capital Net [Member] | Contributions Admitted To Members Capital [Member] | ||||
Partners capital accounts | 3,331 | 13,085 | ||
Managers Capital Net [Member] | Earnings Distributed To Members [Member] | ||||
Partners capital accounts | (45,000) | (38,690) | ||
Unallocated Organization and Offering Expenses [Member] | ||||
Beginning balance | (2,519,458) | (2,335,325) | ||
Organization and offering expenses | (185,332) | (591,907) | ||
Organization and offering expenses allocated | 329,234 | 304,199 | ||
Early withdrawal penalties | 19,415 | 22,360 | ||
Ending balance | (2,260,068) | (2,519,458) | (2,260,068) | |
Unallocated Organization and Offering Expenses [Member] | RMC [Member] | ||||
Organization and offering expenses repaid by RMC | 96,073 | |||
Organization and offering expenses rebated by RMC | 81,215 | |||
Members Capital, Net [Member] | ||||
Beginning balance | 76,804,195 | 64,218,001 | ||
Net income | 4,973,712 | 4,790,272 | ||
Organization and offering expenses | (185,332) | (591,907) | ||
Early withdrawal penalties | 19,415 | 22,360 | ||
Ending balance | 79,629,130 | 76,804,195 | $ 79,629,130 | |
Members Capital, Net [Member] | RMC [Member] | ||||
Organization and offering expenses repaid by RMC | 96,073 | |||
Organization and offering expenses rebated by RMC | 81,215 | |||
Members Capital, Net [Member] | Contributions Admitted To Members Capital [Member] | ||||
Partners capital accounts | 3,321,339 | 13,038,715 | ||
Members Capital, Net [Member] | Premiums Admitted To Members Capital [Member] | ||||
Partners capital accounts | 12,355 | 60,095 | ||
Members Capital, Net [Member] | Earnings Distributed To Members [Member] | ||||
Partners capital accounts | (4,579,952) | (4,501,313) | ||
Members Capital, Net [Member] | Earnings Distributed Used In DRIP [Member] | ||||
Partners capital accounts | 2,415,807 | 2,420,528 | ||
Members Capital, Net [Member] | Member's Redemptions [Member] | ||||
Partners capital accounts | $ (3,248,482) | $ (2,733,771) | ||
[1] | Prior to June 30, 2019, early withdrawal penalties collected were applied to the next installment of principal due under the formation loan and to reduce the amount owed to RMC for O&O expenses. The amounts credited were determined by the ratio between the amount of the formation loan and the amount of offering costs incurred by the company. |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operations | ||
Interest income received | $ 5,732,666 | $ 5,039,822 |
Other loan revenue received | 52,797 | 18,499 |
Loan administrative fee reimbursed | 3,130 | |
Operations expense | (979,982) | (394,909) |
Total cash provided by operations | 4,805,481 | 4,666,542 |
Investing – loans | ||
Loans originated | (58,051,600) | (64,959,250) |
Loans sold to non-affiliate, net | 4,994,818 | 22,128,128 |
Loans transferred from affiliates | (5,889,819) | |
Principal collected | 44,597,043 | 41,506,194 |
Advances (made) on loans | (1,053) | (7,051) |
Total cash used in investing | (8,460,792) | (7,221,798) |
Contributions by members, net | ||
Organization and offering expenses paid, net | (89,259) | (510,692) |
Formation loan funding | (186,656) | (779,964) |
Formation loan collected | 355,301 | 345,639 |
Total cash provided by members, net | 2,761,467 | 9,534,913 |
Distributions to members | ||
Distributions to members | (5,330,580) | (4,814,556) |
Total cash (used in) provided by financing | (2,569,113) | 4,720,357 |
Net (decrease) increase in cash | (6,224,424) | 2,165,101 |
Cash, beginning of period | 10,674,953 | 8,509,852 |
Cash, December 31, | 4,450,529 | 10,674,953 |
Net income | 4,973,712 | 4,790,272 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
(Gain) on sale, loans | (20,833) | (27,133) |
Provision for loan losses | 87,000 | |
Amortization of loan administrative fees | 5,878 | |
Change in operating assets and liabilities | ||
Accrued interest | (262,124) | (166,758) |
Loan administrative fees reimbursed | 3,130 | |
Accounts payable and accrued liabilities | 27,726 | 3,419 |
Other | 57,734 | |
Total adjustments | (168,231) | (123,730) |
Total cash provided by operations | 4,805,481 | 4,666,542 |
Members Equity Contributions [Member] | ||
Contributions by members, net | ||
Contributions by members/manager | 2,682,081 | 10,479,930 |
Earnings Distributed To Members [Member] | ||
Distributions to members | ||
Distributions to members | (2,119,145) | (2,080,785) |
Earnings Distributed to Manager [Member] | ||
Distributions to members | ||
Distributions to members | (45,000) | |
Member's Redemptions [Member] | ||
Distributions to members | ||
Distributions to members | $ (3,166,435) | $ (2,733,771) |
Statements of Cash Flows (Paren
Statements of Cash Flows (Parenthetical) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Non cash financing activity in early withdrawal penalties | $ 82,047 | $ 54,430 |
Non cash financing activity including investors in applicant status cash amounts received but not admitted | 651,500 | 3,270,312 |
Formation Loan [Member] | ||
Non cash financing activity in early withdrawal penalties | 62,632 | 32,070 |
Unallocated Organization and Offering Expenses [Member] | ||
Non cash financing activity in early withdrawal penalties | $ 19,415 | $ 22,360 |
Organization and General
Organization and General | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and General | NOTE 1 – ORGANIZATION AND GENERAL Redwood Mortgage Investors IX, LLC (RMI IX or the company) is a Delaware limited liability company formed in October 2008 to engage in business as a mortgage lender and investor by making and holding-for-investment mortgage loans secured by California real estate, primarily through first and second deeds of trust. The company is externally managed by Redwood Mortgage Corp (RMC or the manager). The manager is solely responsible for managing the business and affairs of the company, subject to the voting rights of the members on specified matters. The manager acting alone has the power and authority to act for and bind the company. The rights, duties and powers of the members and manager of the company are governed by the Ninth Amended and Restated Limited Liability Company Operating Agreement of RMI IX (the “Operating Agreement”), the Delaware Limited Liability Company Act and the California Revised Uniform Limited Liability Company Act. The following is a summary of certain provisions of the Operating Agreement and is qualified in its entirety by the terms of the Operating Agreement. Members should refer to the company’s Operating Agreement for complete disclosure of its provisions. The company’s primary investment objectives are to: • yield a favorable rate of return from the company’s business of making and/or investing in loans; • preserve and protect the company’s capital by making and/or investing in loans secured by California real estate, preferably income-producing properties geographically situated in the San Francisco Bay Area and the coastal metropolitan regions of Southern California; and, • generate and distribute cash flow from these mortgage lending and investing activities. The ongoing sources of funds for loans are the proceeds (net of redemption of members’ capital and operating expenses) from: • loan payoffs; • borrowers’ monthly principal and interest payments, net of operating expenses; • a line of credit; • loan sales to unaffiliated 3 rd • payments from RMC on the outstanding balance of the formation loan; and, • sale of units to members participating in the dividend reinvestment plan and – prior to May 2019 – sale of units net of reimbursement to RMC of organization and offering expenses (“O&O expenses”) and net of amounts advanced for the formation loan to RMC. The company intends to hold until maturity the loans in which it invests and does not presently intend to invest in mortgage loans primarily for the purpose of reselling such loans in the ordinary course of business; however, the company may sell mortgage loans (or fractional interests therein) when the manager determines that it appears to be advantageous for the company to do so, based upon then current interest rates, the length of time that the loan has been held by the company, the company’s credit risk and concentration risk and the overall investment objectives of the company. Loans sold to third parties may be sold for par, at a premium or, in the case of non-performing or under performing loans, at a discount. Company loans may be sold to third parties or to the manager or its affiliates; however, any loan sold to the manager or an affiliate thereof will be sold for a purchase price equal to the greater of (i) the par value of the loan or (ii) the fair market value of the loan. The manager will not receive commissions or broker fees with respect loan sales conducted for the company; however, selling loans will increase members’ capital available for investing in new loans for which the manager will earn brokerage fees and other forms of compensation. Members representing a majority of the outstanding units may, without the concurrence of the managers, vote to: (i) dissolve the company, (ii) amend the Operating Agreement, subject to certain limitations, (iii) approve or disapprove the sale of all or substantially all of the assets of the company or (iv) remove or replace one or all of the managers. Where there is only one manager, a majority in interest of the members is required to elect a new manager to continue the company business after a manager ceases to be a manager due to its withdrawal. Distribution policy Cash available for distribution at the end of each calendar month is allocated ninety-nine percent (99%) to the members and one percent (1%) to the manager. Cash available for distribution means cash flow from operations (excluding repayments for loan principal and other capital transaction proceeds) less amounts set aside for creation or restoration of reserves. The manager may withhold from cash available for distribution otherwise distributable to the members with respect to any period the respective amounts of O&O expenses allocated to the members’ accounts for the applicable period pursuant to the company’s reimbursement to RMC and allocation to members’ accounts of O&O expenses. The amount otherwise distributable, less the respective amounts of O&O expenses allocated to members, is the net distribution. Per the terms of the company’s Operating Agreement, cash available for distribution to the members is allocated among the members in proportion to their percentage interests (except with respect to differences in the amounts of O&O expenses allocated to the respective members during the applicable period) and in proportion to the number of days during the applicable month that they owned such percentage interests. See Note 3 (Manager and Other Related Parties) to the financial statements for a detailed discussion on the allocation of O&O expenses to members’ accounts. The distribution reinvestment plan (DRIP) provision of the Operating Agreement permits members to elect to have all or a portion of their monthly distributions reinvested in the purchase of additional units. Cash available for distributions allocable to members, other than those participating in the DRIP and the manager, is distributed at the end of each calendar month. Cash available for distribution allocable to members who participate in the DRIP is used to purchase additional units at the end of each calendar month. The manager’s allocable share of cash available for distribution is also distributed not more frequently than with cash distributions to members. To determine the amount of cash to be distributed in any specific month, the company relies in part on its forecast of full year profits, which takes into account the difference between the forecasted and actual results in the year and the requirement to maintain a cash reserve. The company’s net income, cash available for distribution, and net-distribution rate fluctuates depending on: • loan origination volume and the balance of capital available to lend; • the current and future interest rates negotiated with borrowers; • the timing and amount of gains received from loan sales, if any; • payment of fees and cost reimbursements to RMC; • the amount and timing of other operating expenses, including expenses for professional services; • financial support, if any, from RMC; • payments from RMC on the outstanding balance of the formation loan; and, • a line of credit. Financial Support from RMC Since commencement of operations in 2009, RMC, at its sole discretion, provided significant financial support to the company which increased the net income, cash available for distribution, and the net-distribution rate, by: • charging less than the maximum allowable fees; • not requesting reimbursement of qualifying costs attributable to the company (“Costs from RMC” on the Statements of Income); and/or, • absorbing some, and in certain periods, all of the company’s direct expenses, such as professional fees. Such fee and cost-reimbursement waivers and the absorption of the company’s expenses by RMC were not made for the purpose of providing the company with sufficient funds to satisfy any required level of distributions, as the Operating Agreement has no such required level of distributions, nor to meet withdrawal requests. Any decision to waive fees or cost-reimbursements and/or to absorb direct expenses, and the amount (if any) to be waived or absorbed, is made by RMC in its sole discretion. This support increased the company’s financial performance and resulted in an annual 6.5% net distribution rate (6.95% before O&O expenses allocation of 0.45% when applicable) for periods prior to February 28, 2018. In April 2018, RMI IX began paying its direct expenses for professional-service fees (legal and audit/tax compliance) and other operating expenses (postage, printing etc.). In June 2019, RMC began collecting from RMI IX the asset management fee of three quarters of one percent annually (0.75%), and plans to commence collection from RMI IX in 2020 of cost reimbursements to which RMC is entitled. In 2019, the company began being invoiced directly and paying fees to an independent service bureau for information technology relating to the recordkeeping and reporting for the accounts of individual investors and their corresponding member accounts. In prior years these fees were invoiced to RMC and then billed to the company. Liquidity and unit redemption program There are substantial restrictions on transferability of units, and there is no established public trading and/or secondary market for the units and none is expected to develop. In order to provide liquidity to members, the company’s Operating Agreement includes a unit redemption program, whereby beginning one year from the date of purchase of the units, a member may redeem all or part of their units, subject to certain limitations. The price paid for redeemed units is based on the lesser of the purchase price paid by the redeeming member or the member’s capital account balance as of the date of each redemption payment. Redemption value is calculated based on the period from date of purchase as follows: • after one year, 92% of the purchase price or of the capital account balance, whichever is less; • after two years, 94% of the purchase price or of the capital account balance, whichever is less; • after three years, 96% of the purchase price or of the capital account balance, whichever is less; • after four years, 98% of the purchase price or of the capital account balance, whichever is less; • after five years, 100% of the purchase price or of the capital account balance, whichever is less. The company redeems units quarterly, subject to certain limitations as provided in the Operating Agreement. The maximum number of units which may be redeemed per quarter per individual member shall not exceed the greater of (i) 100,000 units, or (ii) 25% of the member’s total outstanding units. For redemption requests requiring more than one quarter to fully redeem, the percentage discount amount that, if any, applies when the redemption payments begin continues to apply throughout the redemption period and applies to all units covered by such redemption request regardless of when the final redemption payment is made. The company has not established a cash reserve from which to fund redemptions. The company’s capacity to redeem units upon request is limited by the availability of cash and the company’s cash flow. As provided in the Operating Agreement, the company will not, in any calendar year, redeem more than five percent (5%) of the weighted average number of units outstanding during the twelve-month period immediately prior to the date of the redemption. In the event unit withdrawal requests exceed 5% in any calendar year, units will be redeemed in the priority provided in the Operating Agreement. Contributed capital Prior to April 30, 2019, the manager was required to contribute to capital one tenth of one percent (0.1%) of the aggregate capital accounts of the members . Manager’s interest If a manager is removed, withdrawn or terminated, the company will pay to the manager all amounts then accrued and due to the manager. Additionally, the company will terminate the manager’s interest in the company’s profits, losses, distributions and capital by payment of an amount in cash equal to the then-present fair value of such interest. The formation loan is forgiven if the manager is removed and RMC is no longer receiving payments for services rendered. Distribution reinvestment plan (DRIP)/Unit sales On May 9, 2019, the company filed a Registration Statement on Form S-3 with the SEC (SEC File No. 333-231333) to offer up to 15,000,000 units ($15,000,000) to members of record as of April 30, 2019 that had previously elected to participate in the DRIP or that elect to participate in the DRIP. The Registration Statement on Form S-3 became effective on May 9, 2019. Members of record as of April 30, 2019, that previously elected to participate in the DRIP or that provide written notice to the manager may elect to participate in the DRIP, in those states in which approval has been obtained. As of December 31, 2019, the gross proceeds from sales of units to our members under our DRIP pursuant to the May 9, 2019 Form S-3 Registration Statement (after May 9, 2019) was approximately $1,614,000, and approximately $802,000 (for the four month period ended April 30, 2019) pursuant to the company’s Form S-11 Registration Statement. On June 11, 2019, the company filed a Post-Effective Amendment No. 5 with the SEC (SEC File No. 333-208315) to deregister all of the units which were registered under its Form S-11 Registration Statement that remained unsold as of April 30, 2019. The company used the gross proceeds from the sale of the units to: • make additional loans; • fund working capital reserves; • pay RMC up to 4.5% of proceeds from sale of units for O&O expenses, excluding units sold in the DRIP; and • fund a formation loan to RMC at up to 7% of proceeds from sale of units, excluding units sold in the DRIP. Unit sales – commissions paid to broker-dealers/formation loan Commissions for unit sales were previously paid to broker-dealers (B/D sales commissions) by RMC and were not paid directly by the company out of offering proceeds. Instead, the company advanced to RMC, from offering proceeds, amounts sufficient to pay the B/D sales commissions and premiums paid to investors up to seven percent (7%) of offering proceeds. The receivable arising from the advances is unsecured, and non-interest bearing and is referred to as the “formation loan.” RMC is required to make annual payments on the formation loan in the amount of one tenth of the principal balance outstanding at December 31 of the prior year. Term of the company The term of the company will continue until 2028, unless sooner terminated as provided in the Operating Agreement. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Management estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates 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 owned, at acquisition and subsequently. Actual results could differ significantly from these estimates. Fair value estimates GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Fair values of assets and liabilities are determined based on the fair-value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly in active markets and quoted prices for identical assets or liabilities that are not active, and inputs other than quoted prices that are observable or inputs derived from or corroborated by market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the company’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the company’s own data. The fair value of real property 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 income approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g., as-is, when-completed or for land when-entitled); and determining the unit of value (e.g., as a series of individual unit sales or as a bulk disposition). Management has the requisite familiarity with the real estate markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types. 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. At December 31, 2019, substantially all of the company’s cash balances in banks exceed federally insured limits of $250,000. The bank or banks in which funds are deposited are reviewed periodically for their general credit-worthiness/investment grade credit rating. Loans and interest income Performing loans are carried at amortized cost which is generally equal to the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the company’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums and attorney fees. Advances generally are stated at the amounts paid out on the borrower’s behalf and any accrued interest on amounts paid out, until repaid by the borrower. For performing loans, interest is accrued daily on the principal plus advances, if any. Non-performing loans (i.e., loans with a payment in arears) less than 180 days delinquent continue to recognize interest income as long as the loan is in the process of collection and is considered to be well-secured. Non-performing loans are placed on non-accrual status if 180 days delinquent or earlier if management determines 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. Late fees are recognized in the period received. The company may fund a specific loan origination net of an interest reserve (one to two years) to insure timely interest payments at the inception of the loan. Any interest reserve is amortized over the period that the amount is prepaid. In the event of an early loan payoff, any unapplied interest reserves would be first applied to any accrued but unpaid interest and then as a reduction to the principal. In the normal course of the company’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the renewed loan was previously designated as impaired. From time to time, the manager negotiates and enters into loan modifications with borrowers whose loans are delinquent. If a loan modification were to result in an economic concession to the borrower (i.e., a significant delay or reduction in cash flows compared to the original note), the modification is deemed a troubled debt restructuring. The company originates loans with the intent to hold the loans until maturity. From time to time the company may sell certain loans. Loans are classified as held-for-sale once a decision has been made to sell loans and the loans held-for-sale have been identified. In 2019 and 2018 certain performing loans were sold at an immaterial gain (net of expenses). Allowance for loan losses Loans and the related accrued interest and advances (i.e., the loan balance) are analyzed on a periodic basis for ultimate recoverability. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the dollar amount by which the net realizable value (i.e., fair value less the cost to sell) of the collateral, net of any senior liens exceeds the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. If based upon current information and events, it is probable the partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement, then a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. Payments on impaired loans are applied to late fees, then to the accrued interest, then to advances, and lastly to principal. A provision for loan losses to adjust the allowance for loan losses (principal and/or recorded interest) is made to an amount such that the net carrying amount (unpaid principal less the specific allowance) is reduced to the lower of the loan balance or the estimated fair value of the related collateral, net of any costs to sell in arriving at net realizable value and net of any senior loans. The company charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. Any amounts collected after a charge off is deemed a recovery of loan losses. At foreclosure, any excess of the recorded investment in the loan (accounting basis) over the net realizable value of the collateral is charged against the allowance for loan losses. Real estate owned (REO) Real estate owned, or REO, is property acquired in full or partial settlement of loan obligations generally through foreclosure, and is recorded at acquisition at property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. REO is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expenses as an adjustment to the valuation allowance. Any recovery in the fair value subsequent to such a write down is recorded and is not to exceed the value recorded at acquisition. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. Recently issued accounting pronouncements -Accounting and Financial reporting for Expected Credit Losses The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) that significantly changes how entities will account for credit losses for most financial assets that are not measured at fair value through net income. The new standard will supersede currently in effect guidance and applies to all entities. Entities will be required to use a current expected credit loss (CECL) model to estimate credit impairment. This estimate will be forward-looking, meaning management will be required to use not only historical trends and current conditions, but must also consider forecasts about future economic conditions to determine the expected credit loss over the remaining life of an instrument. This will be a significant change from the current incurred credit loss model, and generally may result in allowances being recognized in earlier periods than under the current credit loss model. The ASU is effective for smaller reporting companies for interim and annual reporting periods in 2023. RMI IX invests in real estate secured loans made with the expectation that the possibility of credit losses is remote as a result of substantial protective equity provided by the underlying collateral. The real estate secured programs and low loan-to-value ratios have caused RMC to expect that the adoption of the CECL model from the incurred loss models presently in use as to credit loss recognition will likely not materially impact the reported results of operations or financial position. |
Manager and Other Related Parti
Manager and Other Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Manager and Other Related Parties | NOTE 3 – MANAGER AND OTHER RELATED PARTIES The Operating Agreement provides for compensation to the manager, as detailed below. RMC is entitled to 1% of the net income or loss of the company. Loan administrative fees and operating expenses, including amounts for fees and cost reimbursements waived and/or expenses absorbed by RMC for the year ended December 31, 2019 is presented in the following table. Operating Expenses For the year ended Loan Admin Fees Mortgage Servicing Fees Asset Management Fee Costs from RMC Professional Services Other Total December 31, 2019 Chargeable/reimbursable $ 580,516 $ 166,878 $ 476,748 $ 657,864 $ 524,940 $ 36,987 $ 2,443,933 RMC support Waived (580,516 ) — (198,645 ) (657,864 ) — — (1,437,025 ) Expenses absorbed by RMC — — — — — — — Total RMC support (580,516 ) — (198,645 ) (657,864 ) — — (1,437,025 ) Net charged $ — $ 166,878 $ 278,103 $ — $ 524,940 $ 36,987 $ 1,006,908 Loan administrative fees and operating expenses, including amounts for fees and cost reimbursements waived and/or expenses absorbed by RMC for the year ended December 31, 2018 is presented in the following table. Operating Expenses For the year ended Loan Admin Fees Mortgage Servicing Fees Asset Management Fee Costs from RMC Professional Services Other Total December 31, 2018 Chargeable/reimbursable $ 708,491 $ 151,457 $ 419,820 $ 744,901 $ 432,205 $ 31,584 $ 2,488,458 RMC support Waived (708,491 ) — (419,820 ) (744,901 ) — — (1,873,212 ) Expenses absorbed by RMC — — — — (143,152 ) (14,246 ) (157,398 ) Total RMC support (708,491 ) — (419,820 ) (744,901 ) (143,152 ) (14,246 ) (2,030,610 ) Net charged $ — $ 151,457 $ — $ — $ 289,053 $ 17,338 $ 457,848 Loan administrative fees RMC is entitled to receive a loan administrative fee in an amount up to one percent (1%) of the principal amount of each new loan originated or acquired on the company’s behalf by RMC for services rendered in connection with the selection and underwriting of potential loans. Such fees would be payable by the company upon the closing or acquisition of each loan. Since August 2015, RMC, at its sole discretion, waived and continues to waive, the loan administrative fees. Mortgage servicing fees The manager acting as servicing agent with respect to all loans is entitled to receive a servicing fee from the company of up to one-quarter of one percent (0.25%) annually of the unpaid principal balance of the loan portfolio or such lesser amount as is reasonable and customary in the geographic area where the property securing the mortgage is located. RMC is entitled to receive these fees regardless of whether specific mortgage payments are collected. The mortgage servicing fees are accrued monthly on all loans. Remittance to RMC is made monthly unless the loan has been assigned a specific loss reserve, at which point remittance is deferred until the specific loss reserve is no longer required, or the property has been acquired by the company. Asset management fees The manager is entitled to receive a monthly asset management fee for managing the company’s portfolio and operations in an amount up to three-quarters of one percent (0.75%) annually of the portion of the capital originally committed to investment in mortgages, not including leverage, and including up to two percent (2%) of working capital reserves. In June 2019, the company began paying the manager asset management fees. Costs from RMC The manager is entitled to request reimbursement by the company for operations expense incurred on behalf of the company, including without limitation, accounting, tax and data processing, postage and preparation of reports to members and out-of-pocket general and administration expenses. Certain of these qualifying costs (e.g., postage) can be tracked by RMC as specifically attributable to the company. Other costs (e.g., RMC’s accounting and audit fees, legal fees and expenses, qualifying payroll expenses, occupancy, and insurance premium) are allocated on a pro-rata basis (e.g., by the company’s percentage of total capital of all mortgage funds managed by RMC). Payroll and consulting fees are allocated first based on activity, and then to the company on a pro-rata basis based on percentage of capital to the total capital of all affiliated mortgage funds managed by RMC. RMC, at its sole discretion, has elected to waive reimbursement for operating expenses during the years ended December 31, 2019 and 2018. Professional Services Professional services consist primarily of legal, audit and tax compliance, information technology related to recordkeeping and reporting for individual investor accounts, and regulatory (including SEC/FINRA compliance) expenses. Prior to April 2018, RMC, at its sole discretion, had elected to absorb some or all of RMI IX’s expenses for professional services (and other operating expenses directly incurred by the company). Commissions and fees are paid by the borrowers to RMC - Brokerage commissions, loan originations – For fees in connection with the review, selection, evaluation, negotiation and extension of loans, RMC may collect a loan brokerage commission that is expected to range from approximately 1.5% to 5% of the principal amount of each loan made during the year. Total loan brokerage commissions are limited to an amount not to exceed 4% of the total company assets per year. The loan brokerage commissions are paid by the borrowers, and thus, are not an expense of the company. - Other fees – During the year ended December 31, 2018, Redwood Mortgage Investors VIII, LP, an affiliated mortgage fund, transferred to the company two performing loans in-full at par value, which approximates fair value, of approximately $5,890,000. The company paid cash for the loans and the affiliated mortgage fund has no continuing obligation or involvement on the loans. No loans were transferred during the year ended December 31, 2019. Formation loan Formation loan transactions are presented in the following table. 2019 Since Inception Balance, beginning of period $ 4,179,343 $ — Formation loan advances to RMC 186,656 5,626,566 Payments received from RMC (355,301 ) (1,555,017 ) Early withdrawal penalties applied (62,634 ) (123,485 ) Balance, December 31, 2019 $ 3,948,064 $ 3,948,064 Subscription proceeds since inception $ 80,256,995 Formation loan advance rate 7 % The future minimum payments on the formation loan of December 31, 2019 are presented in the following table. 2020 $ 493,508 2021 493,508 2022 493,508 2023 493,508 2024 493,508 Thereafter 1,480,524 Total $ 3,948,064 RMC is required to make annual payments on the formation loan of one tenth of the principal balance outstanding at December 31 of the prior year. The formation loan is forgiven if the manager is removed and RMC is no longer receiving payments for services rendered. Member capital withdrawals The table below presents the company’s unit redemptions for the years ended December 31, 2019 and 2018. 2019 2018 Capital redemptions-without penalty $ 1,281,768 $ 1,923,685 Capital redemptions-subject to penalty 1,966,714 810,086 Total $ 3,248,482 $ 2,733,771 Early withdrawal penalties $ 111,551 $ 54,429 At December 31, 2019, scheduled redemptions of members’ capital was $447,417, all of which was scheduled for payment in 2020. Reimbursement and allocation of organization and offering expenses Per the Operating Agreement, the manager is reimbursed for, or the company may pay directly, O&O expenses incurred in connection with the organization of the company or offering of the units including, without limitation, attorneys’ fees, accounting fees, printing costs and other selling expenses (other than sales commissions) in a total amount not exceeding 4.5% of the original purchase price of all units (other than DRIP units) sold in all offerings (hereafter, the “maximum O&O expenses”), and the manager pays any O&O expenses in excess of the maximum O&O expenses. For each calendar quarter or portion thereof after December 31, 2015, that a member holds units (other than DRIP units) and for a maximum of forty (40) such quarters, a portion of the O&O expenses borne by the company is allocated to and debited from that member’s capital account in an annual amount equal to 0.45% of the member’s original purchase price for those units, in equal quarterly installments of 0.1125% each commencing with the later of the first calendar quarter of 2016 or the first full calendar quarter after a member’s purchase of units, and continuing through the quarter in which such units are redeemed. If at any time the aggregate O&O expenses actually paid or reimbursed by the company since inception are less than the maximum O&O expenses, the company shall first reimburse the manager for any O&O expenses previously borne by it so long as it does not result in the company bearing more than the maximum O&O expenses, and any savings thereafter remaining shall be equitably allocated among (and serve to reduce any such subsequent cost allocations to) those members who have not yet received forty (40) quarterly allocations of O&O expenses, as determined in the good faith judgment of the manager. Unallocated O&O transactions are summarized in the following table. 2019 Since Inception Balance, beginning of period $ 2,519,458 $ — O&O expenses reimbursed to RMC 185,332 3,671,853 Early withdrawal penalties applied (1) (19,415 ) (60,290 ) O&O expenses allocated (2) (329,234 ) (1,015,590 ) O&O expenses repaid to Members' Capital by RMC (3) (96,073 ) (335,905 ) Balance, December 31 $ 2,260,068 $ 2,260,068 (1) Prior to June 30, 2019, early withdrawal penalties collected were applied to the next installment of principal due under the formation loan and to reduce the amount owed to RMC for O&O expenses. The amounts credited were determined by the ratio between the amount of the formation loan and the amount of offering costs incurred by the company. (2) Beginning in 2016, O&O expenses reimbursed to RMC by RMI IX are allocated to members’ capital accounts over 40 quarters. (3) RMC is obligated under the Operating Agreement to repay the company for unallocated O&O expenses attributed to units redeemed prior to the 40 quarterly allocations. RMC estimated its future obligations to repay unallocated O&O expenses on scheduled redemptions as of December 31, 2019, to be $10,761, which is expected to be offset by early withdrawal penalties. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | NOTE 4 – LOANS Loans generally are funded at a fixed interest rate with a loan term of up to five years. Loans acquired are generally done so within the first six months of origination and purchased at the current par value, which approximates fair value. No loans were acquired from affiliates in 2019. As of December 31, 2019, 74 loans (representing 98% of the aggregate principal of the company’s loan portfolio) have a loan term of five years or less from loan inception. The remaining loans have terms longer than five years. Substantially all loans are written without a prepayment provision. As of December 31, 2019, 53 loans outstanding (representing 45% of the aggregate principal balance of the company’s loan portfolio) provide from monthly payments of principal and interest, typically calculated on a 30-year amortization schedule, with the remaining principal balance due at maturity. The remaining loans provide for monthly payments of interest only, with the principal balance due at maturity. Secured loans unpaid principal balance (principal) Secured loan transactions are summarized in the following table for 2019 and 2018. 2019 2018 Principal, beginning of period $ 62,115,713 $ 54,768,689 Loans originated 58,051,600 64,959,250 Loans transferred from affiliates — 5,889,819 Loans sold to non-affiliate (4,909,986 ) (21,995,851 ) Principal collected (44,597,043 ) (41,506,194 ) Principal December 31 $ 70,660,284 $ 62,115,713 During each of the years ended December 31, 2019 and 2018, the company renewed eight loans with aggregated principal of approximately$5,195,000 and $5,004,000, respectively, which are not included in the activity shown in the table above. See Note 3 (Manager and Other Related Parties) for a description of loans transferred by executed assignments between affiliates. Pursuant to California regulatory requirements, borrower payments are deposited into a trust account established by RMC with an independent bank. Funds are disbursed to the company as collected which can range from same day for wire transfers and up to two weeks after deposit for checks. Borrower payments held in the trust account that are yet to be disbursed to the company are not included in the financial statements. At December 31, 2019, $71,416, of borrower payments made by check, was on deposit in the bank trust account, which was fully disbursed to the company’s account by January 23, 2020. At December 31, 2018, $67,214 of borrower payments made by check, was on deposit in the trust account, all of which was disbursed to the company’s bank account by January 17, 2019, when they were recorded by the company. The company originates loans with the intent to hold the loans until maturity, although from time to time the company may sell certain loans when the manager determines it to be in the best interest of the company. • In September 2019, a loan with principal of $500,000, that had been designated as impaired, was sold to an unaffiliated third party which specializes in the resolution of such loans. There was no gain recognized upon sale. • In July 2019, 8 loans with aggregate principal of $4,273,346 and accrued interest of $31,830 were sold to an unaffiliated third party, at a price that netted an immaterial gain. • In March 2019, a loan with principal of $136,640, was sold to an unaffiliated third party, for an amount that approximated the loan balance at the time of sale. Loan characteristics December 31, December 31, 2019 2018 Number of secured loans 77 83 Secured loans – principal $ 70,660,284 $ 62,115,713 Secured loans – lowest interest rate (fixed) 7.8 % 7.0 % Secured loans – highest interest rate (fixed) 10.5 % 10.5 % Average secured loan – principal $ 917,666 $ 748,382 Average principal as percent of total principal 1.3 % 1.2 % Average principal as percent of members’ capital, net 1.2 % 1.0 % Average principal as percent of total assets 1.2 % 1.0 % Largest secured loan – principal $ 6,735,000 $ 4,000,000 Largest principal as percent of total principal 9.5 % 6.4 % Largest principal as percent of members’ capital, net 8.5 % 5.2 % Largest principal as percent of total assets 8.9 % 5.5 % Smallest secured loan – principal $ 125,656 $ 74,390 Smallest principal as percent of total principal 0.2 % 0.1 % Smallest principal as percent of members’ capital, net 0.2 % 0.1 % Smallest principal as percent of total assets 0.2 % 0.1 % Number of California counties where security is located 17 15 Largest percentage of principal in one California county 27.0 % 25.0 % Number of secured loans with filed notice of default — 2 Secured loans in foreclosure – principal $ — $ 565,685 As of December 31, 2019, the company’s largest loan with principal of $6,735,000 is secured by an office building located in Santa Clara county, bears an interest rate of 8.25% and matures on October 1, 2021. As of December 31, 2019, the company had no loans with filed notices of default. As of December 31, 2019, the company had no construction loans outstanding and had no rehabilitation loans outstanding. As of December 31, 2019, the company had no commitments to fund construction or rehabilitation loans. The company had no loan commitments to lend as of December 31, 2019. Lien position Secured loans had the lien positions in the following table. December 31, 2019 December 31, 2018 Loans Principal Percent Loans Principal Percent First trust deeds 42 $ 42,712,037 60 % 41 $ 29,699,888 48 % Second trust deeds 35 27,948,247 40 42 32,415,825 52 Total principal, secured loans 77 70,660,284 100 % 83 62,115,713 100 % Liens due other lenders at loan closing 54,062,023 65,941,118 Total debt $ 124,722,307 $ 128,056,831 Appraised property value at loan closing $ 237,453,000 $ 240,307,000 Percent of total debt to appraised values (LTV) at loan closing (1) 55.3 % 54.5 % (1) based on appraised values and liens due to other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing nor does it include decreases or increases of the amount of senior liens to other lenders. Property type Secured loans summarized by property type are presented in the following table as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Loans Principal Percent Loans Principal Percent Single family (2) 53 $ 32,361,343 46 % 60 $ 42,967,253 69 % Multi-family 9 9,219,497 13 8 8,210,970 13 Commercial 15 29,079,444 41 15 10,937,490 18 Total principal, secured loans 77 $ 70,660,284 100 % 83 $ 62,115,713 100 % (2) single family property type as of December 31, 2019 consists of 11 loans with principal of $6,236,571 that are owner occupied and 42 loans with principal of $26,124,772 that are non-owner occupied. At December 31, 2018, single family property consisted of 14 loans with principal of $11,398,869 that are owner occupied and 46 loans with principal $31,568,384 that are non-owner occupied. Distribution of loans in California The distribution of secured loans by counties is presented in the following table as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Principal Percent Principal Percent San Francisco Bay Area (3) Santa Clara $ 19,064,638 27.0 % $ 11,756,695 18.9 % San Mateo 10,837,195 15.3 9,619,609 15.5 San Francisco 7,735,173 10.9 5,238,008 8.4 Alameda 2,930,219 4.2 7,306,779 11.8 Contra Costa 400,000 0.6 725,771 1.2 Santa Cruz 264,515 0.4 — — Marin 249,628 0.4 575,000 0.9 Sonoma — — 1,300,000 2.1 41,481,368 58.8 36,521,862 58.8 Other Northern California Sutter 3,815,000 5.4 — — Monterey 1,110,000 1.6 322,716 0.5 Sacramento 492,216 0.6 822,500 1.3 Tehama 405,000 0.6 — — Placer — — 637,354 1.0 5,822,216 8.2 1,782,570 2.8 Northern California Total 47,303,584 67.0 38,304,432 61.6 Los Angeles & Coastal Los Angeles 12,531,312 17.7 15,514,789 25.0 San Diego 4,983,331 7.1 5,563,635 9.0 Orange 3,067,396 4.3 1,177,446 1.9 Santa Barbara 497,977 0.7 — — 21,080,016 29.8 22,255,870 35.9 Other Southern California San Bernardino 1,200,000 1.7 1,200,000 1.9 Riverside 1,076,684 1.5 355,411 0.6 2,276,684 3.2 1,555,411 2.5 Southern California Total 23,356,700 33.0 23,811,281 38.4 Total principal, secured loans $ 70,660,284 100.0 % $ 62,115,713 100.0 % (3) Includes Silicon Valley Scheduled maturities Secured loans are scheduled to mature as presented in the following table as of December 31, 2019. Loans Principal Percent 2020 35 $ 25,361,762 36 % 2021 26 38,598,944 55 2022 8 3,642,402 5 2023 2 345,101 — 2024 1 246,684 — Thereafter 2 1,390,000 2 Total future maturities 74 69,584,893 98 Matured as of December 31, 2019 3 1,075,391 2 Total principal, secured loans 77 $ 70,660,284 100 % Loans may be repaid or refinanced before, at or after the contractual maturity date. For matured loans, the company may continue to accept payments while pursuing collection of amounts owed from borrowers. Secured loans, principal past maturity are summarized in the following table as of December 31, 2019. December 31, 2019 Number of loans 3 Principal $ 1,075,391 Advances 1,653 Accrued interest 21,013 Total recorded investment $ 1,098,057 Principal past maturity as percent of total principal 2 % Non-performing loans Secured loans, principal summarized by payment delinquency is presented in the following table as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Non-performing loans, principal Loans Principal Loans Principal Past Due 30-89 days 8 $ 3,952,306 5 $ 3,828,975 90-179 days 2 3,520,112 — — 180 or more days 2 1,013,726 2 565,685 Total past due 12 8,486,144 7 4,394,660 Current 65 62,174,140 76 57,721,053 Total principal, secured loans 77 $ 70,660,284 83 $ 62,115,713 No loan payment modifications were made during 2019 or 2018. In 2019 the company entered into two forbearance agreements with borrowers. • One loan with principal of approximately $764,100 matured on April 1, 2019 and was 274 days delinquent and was designated impaired and in non-accrual status at December 31, 2019. The company entered into a forbearance agreement with the borrower in August 2019, whereby the borrower agreed to resume monthly payments and the company agreed to forbear collection activity until April 1, 2020. • One loan with a principal balance of approximately $3,329,000 was 121 days delinquent and was designated impaired at December 31, 2019. The company entered into a forbearance agreement with the borrower in August 2019, whereby the company agreed to defer the interest payments due August 1, 2019, September 1, 2019 and October 1, 2019 and the company agreed to forbear collection activity until August 1, 2020. At December 31, 2019 and 2018, the company had one workout agreement with a borrower. The loan, with principal of approximately $191,000 matured on June 1, 2016, and the company entered into a workout agreement in September 2016, whereby the borrower agreed to resume monthly payments to the company. This agreement extended the maturity date through October 1, 2021. The 2016 agreement was the successor to three prior agreements with the borrower, the first of which was dated August 5, 2011. The borrower was 91 days delinquent and was designated as impaired and in non-accrual status at December 31, 2019. A loan with principal of approximately $250,000 was 213 days delinquent, and designated as impaired and in nonaccrual status at December 31, 2019. The remaining eight loans, with principal of approximately $3,952,000, were all 60 or fewer days delinquent and not in non-accrual status or designated as impaired at December 31, 2019. Payments in arrears for non-performing secured loans (i.e., principal and interest payments past due 30 or more days), principal and accrued interest receivable are presented in the following table as of December 31, 2019. Loans Principal Accrued interest receivable Total past due Payments past due 30-89 days 8 $ 312,965 $ 60,041 $ 373,006 90-179 days 2 8,175 136,715 144,890 180 or more days 2 765,000 32,870 797,870 Total payments past due 12 $ 1,086,140 $ 229,626 $ 1,315,766 Secured loans in non-accrual status are summarized in the following table. December 31, 2019 December 31, 2018 Number of loans 3 2 Principal $ 1,204,495 $ 565,685 Advances 10,677 10,688 Accrued interest 37,799 19,831 Total recorded investment $ 1,252,971 $ 596,204 Foregone interest $ 3,952 $ 33,410 A loan with principal of approximately $3,329,000 was 90 or more days delinquent as to principal or interest and not in non-accrual status at December 31, 2019. No loans were 90 or more days delinquent as to principal or interest and not in non-accrual status at December 31, 2018. Allowance for Loan Losses At December 31, 2019, RMI IX recorded a $87,000 provision for loan losses, primarily for secured loans in a second lien position, as the manager may – from time to time – agree to concessions to borrowers to facilitate a sale of collateral or refinance transactions. Included in the provision for loan losses at December 31, 2019 is a $37,000 specific provision on a secured loan in second lien position, to facilitate the sale of the underlying collateral, which was sold in February 2020. At December 31, 2018, the company had no allowance for loan losses. Loans designated impaired and the associated allowance for loan losses is presented in the following table. December 31, 2019 December 31, 2018 Principal $ 4,533,838 $ 3,841,148 Recorded investment (4) 4,719,705 3,950,157 Impaired loans without allowance 4,451,368 3,950,157 Impaired loans with allowance 268,337 — Allowance for loan losses, impaired loans 37,000 — Number of loans 4 6 LTV at origination (5) 66.0 % 54.7 % (4) Recorded investment is the sum of the principal, advances, and recorded accrued interest. (5) A non-performing loan, in second lien position, with principal of approximately $250,000, and recorded investment of approximately $268,000, was determined to have an LTV which exceeded 90%. The loan was paid in February 2020, after RMI IX made a concession – as did the selling broker - to facilitate the sale of the underlying collateral. RMI IX’s concession approximated $37,000. Impaired loans had average balances and interest income recognized and received in cash as presented in the following tables as of and for the years ended December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Average recorded investment $ 4,334,931 $ 2,050,897 Interest income recognized 169,585 23,848 Interest income received in cash 67,990 21,670 Fair Value The following methods and assumptions are used when estimating fair value: Secured loans, performing (i.e., not designated as impaired) (Level 3) - Each loan is reviewed quarterly for its delinquency, LTV adjusted for the most recent valuation of the underlying collateral, remaining term to maturity, borrower’s payment history and other factors. Due to the nature of the company’s loans and borrowers, the fair value of loan balances secured by deeds of trust approximates the recorded amount (per the financial statements) due to the following: • are of shorter terms at origination than commercial real estate loans by institutional lenders and conventional single-family home mortgage lenders; • are written without a prepayment penalty causing uncertainty/a lack of predictability as to the expected duration of the loan; and • have limited marketability and are not yet sellable into an established secondary market. Secured loans, designated impaired (Level 3) - The fair value of secured loans designated impaired is the lesser of the fair value of the collateral or the enforceable amount of the note. Secured loans designated impaired are collateral dependent because it is expected that the primary source of repayment will not be from the borrower but rather from the collateral. The fair value of the collateral is determined on a nonrecurring basis by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values and publicly available information on in-market transactions (Level 3 inputs). When the fair value of the collateral exceeds the enforceable amount of the note, the borrower is likely to redeem the note. Accordingly, third party market participants would generally pay the fair value of the collateral, but no more than the enforceable amount of the note. The following methods and assumptions are used to determine the fair value of the collateral securing a loan. Single family – Management’s preferred method for determining the fair market value of its single-family residential assets is the sale comparison method. Management primarily obtains 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 and adjusted for similarity to the subject property, examining features such as proximity to subject, number of bedrooms and bathrooms, square footage, sale date, condition and year built. If applicable sale comps are not available or deemed unreliable, management will seek additional information in the form of brokers’ opinions of value or appraisals. Multi-family residential – Management’s preferred method for determining the aggregate retail value of its multifamily units is the sale comparison method. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, rental income, number of units, composition of units by the number of bedrooms and bathrooms, square footage, condition, amenities and year built. Management’s secondary method for valuing its multifamily assets as income-producing rental operations is the direct capitalization method. In order to determine market cap rates for properties of the same class and location as the subject, management refers to published data from reliable third-party sources such as the CBRE Cap Rate Survey. Management applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing project. When adequate sale comps are not available or reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value and/or management will seek additional information in the form of brokers’ opinion of value or appraisals. Commercial 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. Management supplements the direct capitalization method with additional information in the form of a sale comparison analysis (where adequate sale comps are available), brokers’ opinion of value, or appraisal. When adequate sale comps are not available or reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value and/or management will seek additional information in the form of brokers’ opinion of value or appraisals. Commercial land – Commercial land has many variations/uses, thus requiring management to employ a variety of methods depending upon the unique characteristics of the subject land, including a determination of its highest and best use. Management may rely on information in the form of a sale comparison analysis (where adequate sale comps are available), brokers’ opinion of value, or appraisal. |
Commitments and Contingencies,
Commitments and Contingencies, Other Than Loan Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Other Than Loan Commitments | NOTE 5 – COMMITMENTS AND CONTINGENCIES, OTHER THAN LOAN COMMITMENTS Commitments At December 31, 2019, scheduled future redemptions of members’ capital was $447,417, all of which is scheduled for payment in 2020. The company has contractual obligations to RMC per the Operating Agreement. See Note 3 (Manager and Other Related Parties) for a more detailed discussion on the company’s contractual obligations to RMC. Legal proceedings In the normal course of its business, the company may become involved in legal proceedings (such as assignment of rents, bankruptcy proceedings, appointment of receivers, unlawful detainers, judicial foreclosure, etc.) to collect the debt owed under the promissory notes, to enforce the provisions of the deeds of trust, to protect its interest in the real property subject to the deeds of trust and to resolve disputes with borrowers, lenders, lien holders and mechanics. None of these actions, in and of themselves, typically would be of any material financial impact to the net income or balance sheet of the company. As of the date hereof, the company is not involved in any legal proceedings other than those that would be considered part of the normal course of business. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 6 – SUBSEQUENT EVENTS COVID-19 (Coronavirus) On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) and in March 2020 classified the outbreak as a pandemic. In March 2020, the President of the United States and the Governor of California declared a state of emergency, based on the rapid increase in COVID-19 cases including in California where the real estate collateralizing the company’s loans are located. Recently, COVID-19 has caused significant disruptions to the global, national and local economy. The overall impact of COVID-19 on the California economy and the California real estate markets is not known and cannot be predicted at this time. The company’s revenue and operating results depend significantly on the strength of the California real estate market, interest rates charged on loans and the ability of borrowers to make principal and interest payments. If the outbreak causes weakness in national, regional and local economies including but not limited to increases in unemployment rates and disruptions to businesses, it may negatively impact the values of California real estate, the ability of borrowers to make principal and interest payments and the volume of loan originations. If these factors persist, it would likely result in declines in California real estate values which would cause the protective equity in the loan to be eroded and any continued decreases in values would also lead to increases in the allowance for loan losses in future periods. Taken together, these factors if severe and prolonged would have a short or long term adverse impact, possibly material, on the company’s future financial condition, liquidity, and results of operations. On March 27, 2020, the company acquired through executed transfer, one performing loan with principal of approximately $2.3 million from an affiliated mortgage fund at par plus accrued interest which approximates fair value. The manager evaluated subsequent events that have occurred after December 31, 2019 and determined that there were no other events or transactions occurring during this reporting period that require recognition or disclosure in the financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). |
Management Estimates | Management estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates 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 owned, at acquisition and subsequently. Actual results could differ significantly from these estimates. |
Fair Value Estimates | Fair value estimates GAAP defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) willing to transact. Fair values of assets and liabilities are determined based on the fair-value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used: • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the company has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly in active markets and quoted prices for identical assets or liabilities that are not active, and inputs other than quoted prices that are observable or inputs derived from or corroborated by market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the company’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the company’s own data. The fair value of real property 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 income approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g., as-is, when-completed or for land when-entitled); and determining the unit of value (e.g., as a series of individual unit sales or as a bulk disposition). Management has the requisite familiarity with the real estate markets it lends in generally and of the properties lent on specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types. |
Cash and Cash Equivalents | 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. At December 31, 2019, substantially all of the company’s cash balances in banks exceed federally insured limits of $250,000. The bank or banks in which funds are deposited are reviewed periodically for their general credit-worthiness/investment grade credit rating. |
Loans and Interest Income | Loans and interest income Performing loans are carried at amortized cost which is generally equal to the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the company’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums and attorney fees. Advances generally are stated at the amounts paid out on the borrower’s behalf and any accrued interest on amounts paid out, until repaid by the borrower. For performing loans, interest is accrued daily on the principal plus advances, if any. Non-performing loans (i.e., loans with a payment in arears) less than 180 days delinquent continue to recognize interest income as long as the loan is in the process of collection and is considered to be well-secured. Non-performing loans are placed on non-accrual status if 180 days delinquent or earlier if management determines 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. Late fees are recognized in the period received. The company may fund a specific loan origination net of an interest reserve (one to two years) to insure timely interest payments at the inception of the loan. Any interest reserve is amortized over the period that the amount is prepaid. In the event of an early loan payoff, any unapplied interest reserves would be first applied to any accrued but unpaid interest and then as a reduction to the principal. In the normal course of the company’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the renewed loan was previously designated as impaired. From time to time, the manager negotiates and enters into loan modifications with borrowers whose loans are delinquent. If a loan modification were to result in an economic concession to the borrower (i.e., a significant delay or reduction in cash flows compared to the original note), the modification is deemed a troubled debt restructuring. The company originates loans with the intent to hold the loans until maturity. From time to time the company may sell certain loans. Loans are classified as held-for-sale once a decision has been made to sell loans and the loans held-for-sale have been identified. In 2019 and 2018 certain performing loans were sold at an immaterial gain (net of expenses). |
Allowance for Loan Losses | Allowance for loan losses Loans and the related accrued interest and advances (i.e., the loan balance) are analyzed on a periodic basis for ultimate recoverability. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the dollar amount by which the net realizable value (i.e., fair value less the cost to sell) of the collateral, net of any senior liens exceeds the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. If based upon current information and events, it is probable the partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement, then a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. Payments on impaired loans are applied to late fees, then to the accrued interest, then to advances, and lastly to principal. A provision for loan losses to adjust the allowance for loan losses (principal and/or recorded interest) is made to an amount such that the net carrying amount (unpaid principal less the specific allowance) is reduced to the lower of the loan balance or the estimated fair value of the related collateral, net of any costs to sell in arriving at net realizable value and net of any senior loans. The company charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. Any amounts collected after a charge off is deemed a recovery of loan losses. At foreclosure, any excess of the recorded investment in the loan (accounting basis) over the net realizable value of the collateral is charged against the allowance for loan losses. |
Real Estate Owned (REO) | Real estate owned (REO) Real estate owned, or REO, is property acquired in full or partial settlement of loan obligations generally through foreclosure, and is recorded at acquisition at property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. REO is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expenses as an adjustment to the valuation allowance. Any recovery in the fair value subsequent to such a write down is recorded and is not to exceed the value recorded at acquisition. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements -Accounting and Financial reporting for Expected Credit Losses The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) that significantly changes how entities will account for credit losses for most financial assets that are not measured at fair value through net income. The new standard will supersede currently in effect guidance and applies to all entities. Entities will be required to use a current expected credit loss (CECL) model to estimate credit impairment. This estimate will be forward-looking, meaning management will be required to use not only historical trends and current conditions, but must also consider forecasts about future economic conditions to determine the expected credit loss over the remaining life of an instrument. This will be a significant change from the current incurred credit loss model, and generally may result in allowances being recognized in earlier periods than under the current credit loss model. The ASU is effective for smaller reporting companies for interim and annual reporting periods in 2023. RMI IX invests in real estate secured loans made with the expectation that the possibility of credit losses is remote as a result of substantial protective equity provided by the underlying collateral. The real estate secured programs and low loan-to-value ratios have caused RMC to expect that the adoption of the CECL model from the incurred loss models presently in use as to credit loss recognition will likely not materially impact the reported results of operations or financial position. |
Manager and Other Related Par_2
Manager and Other Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Loan Administrative Fees and Operating Expenses, for Fees and Cost Reimbursements Waived and Expenses Absorbed | Loan administrative fees and operating expenses, including amounts for fees and cost reimbursements waived and/or expenses absorbed by RMC for the year ended December 31, 2019 is presented in the following table. Operating Expenses For the year ended Loan Admin Fees Mortgage Servicing Fees Asset Management Fee Costs from RMC Professional Services Other Total December 31, 2019 Chargeable/reimbursable $ 580,516 $ 166,878 $ 476,748 $ 657,864 $ 524,940 $ 36,987 $ 2,443,933 RMC support Waived (580,516 ) — (198,645 ) (657,864 ) — — (1,437,025 ) Expenses absorbed by RMC — — — — — — — Total RMC support (580,516 ) — (198,645 ) (657,864 ) — — (1,437,025 ) Net charged $ — $ 166,878 $ 278,103 $ — $ 524,940 $ 36,987 $ 1,006,908 Loan administrative fees and operating expenses, including amounts for fees and cost reimbursements waived and/or expenses absorbed by RMC for the year ended December 31, 2018 is presented in the following table. Operating Expenses For the year ended Loan Admin Fees Mortgage Servicing Fees Asset Management Fee Costs from RMC Professional Services Other Total December 31, 2018 Chargeable/reimbursable $ 708,491 $ 151,457 $ 419,820 $ 744,901 $ 432,205 $ 31,584 $ 2,488,458 RMC support Waived (708,491 ) — (419,820 ) (744,901 ) — — (1,873,212 ) Expenses absorbed by RMC — — — — (143,152 ) (14,246 ) (157,398 ) Total RMC support (708,491 ) — (419,820 ) (744,901 ) (143,152 ) (14,246 ) (2,030,610 ) Net charged $ — $ 151,457 $ — $ — $ 289,053 $ 17,338 $ 457,848 |
Schedule of Accounts, Notes, Loans and Financing Receivable | Formation loan transactions are presented in the following table. 2019 Since Inception Balance, beginning of period $ 4,179,343 $ — Formation loan advances to RMC 186,656 5,626,566 Payments received from RMC (355,301 ) (1,555,017 ) Early withdrawal penalties applied (62,634 ) (123,485 ) Balance, December 31, 2019 $ 3,948,064 $ 3,948,064 Subscription proceeds since inception $ 80,256,995 Formation loan advance rate 7 % |
Formation Loan, Future Minimum Payments | The future minimum payments on the formation loan of December 31, 2019 are presented in the following table. 2020 $ 493,508 2021 493,508 2022 493,508 2023 493,508 2024 493,508 Thereafter 1,480,524 Total $ 3,948,064 |
Schedule of Unit Redemptions | The table below presents the company’s unit redemptions for the years ended December 31, 2019 and 2018. 2019 2018 Capital redemptions-without penalty $ 1,281,768 $ 1,923,685 Capital redemptions-subject to penalty 1,966,714 810,086 Total $ 3,248,482 $ 2,733,771 Early withdrawal penalties $ 111,551 $ 54,429 |
Summary of Organization and Offering Expenses | Unallocated O&O transactions are summarized in the following table. 2019 Since Inception Balance, beginning of period $ 2,519,458 $ — O&O expenses reimbursed to RMC 185,332 3,671,853 Early withdrawal penalties applied (1) (19,415 ) (60,290 ) O&O expenses allocated (2) (329,234 ) (1,015,590 ) O&O expenses repaid to Members' Capital by RMC (3) (96,073 ) (335,905 ) Balance, December 31 $ 2,260,068 $ 2,260,068 (1) Prior to June 30, 2019, early withdrawal penalties collected were applied to the next installment of principal due under the formation loan and to reduce the amount owed to RMC for O&O expenses. The amounts credited were determined by the ratio between the amount of the formation loan and the amount of offering costs incurred by the company. (2) Beginning in 2016, O&O expenses reimbursed to RMC by RMI IX are allocated to members’ capital accounts over 40 quarters. (3) RMC is obligated under the Operating Agreement to repay the company for unallocated O&O expenses attributed to units redeemed prior to the 40 quarterly allocations. RMC estimated its future obligations to repay unallocated O&O expenses on scheduled redemptions as of December 31, 2019, to be $10,761, which is expected to be offset by early withdrawal penalties. |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Secured Loan Principal Transactions | Secured loan transactions are summarized in the following table for 2019 and 2018. 2019 2018 Principal, beginning of period $ 62,115,713 $ 54,768,689 Loans originated 58,051,600 64,959,250 Loans transferred from affiliates — 5,889,819 Loans sold to non-affiliate (4,909,986 ) (21,995,851 ) Principal collected (44,597,043 ) (41,506,194 ) Principal December 31 $ 70,660,284 $ 62,115,713 |
Secured Loans Characteristics | Loan characteristics December 31, December 31, 2019 2018 Number of secured loans 77 83 Secured loans – principal $ 70,660,284 $ 62,115,713 Secured loans – lowest interest rate (fixed) 7.8 % 7.0 % Secured loans – highest interest rate (fixed) 10.5 % 10.5 % Average secured loan – principal $ 917,666 $ 748,382 Average principal as percent of total principal 1.3 % 1.2 % Average principal as percent of members’ capital, net 1.2 % 1.0 % Average principal as percent of total assets 1.2 % 1.0 % Largest secured loan – principal $ 6,735,000 $ 4,000,000 Largest principal as percent of total principal 9.5 % 6.4 % Largest principal as percent of members’ capital, net 8.5 % 5.2 % Largest principal as percent of total assets 8.9 % 5.5 % Smallest secured loan – principal $ 125,656 $ 74,390 Smallest principal as percent of total principal 0.2 % 0.1 % Smallest principal as percent of members’ capital, net 0.2 % 0.1 % Smallest principal as percent of total assets 0.2 % 0.1 % Number of California counties where security is located 17 15 Largest percentage of principal in one California county 27.0 % 25.0 % Number of secured loans with filed notice of default — 2 Secured loans in foreclosure – principal $ — $ 565,685 |
Secured Loans by Lien Position in the Collateral | Secured loans had the lien positions in the following table. December 31, 2019 December 31, 2018 Loans Principal Percent Loans Principal Percent First trust deeds 42 $ 42,712,037 60 % 41 $ 29,699,888 48 % Second trust deeds 35 27,948,247 40 42 32,415,825 52 Total principal, secured loans 77 70,660,284 100 % 83 62,115,713 100 % Liens due other lenders at loan closing 54,062,023 65,941,118 Total debt $ 124,722,307 $ 128,056,831 Appraised property value at loan closing $ 237,453,000 $ 240,307,000 Percent of total debt to appraised values (LTV) at loan closing (1) 55.3 % 54.5 % (1) based on appraised values and liens due to other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing nor does it include decreases or increases of the amount of senior liens to other lenders. |
Secured Loans by Property Type of the Collateral | Secured loans summarized by property type are presented in the following table as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Loans Principal Percent Loans Principal Percent Single family (2) 53 $ 32,361,343 46 % 60 $ 42,967,253 69 % Multi-family 9 9,219,497 13 8 8,210,970 13 Commercial 15 29,079,444 41 15 10,937,490 18 Total principal, secured loans 77 $ 70,660,284 100 % 83 $ 62,115,713 100 % (2) single family property type as of December 31, 2019 consists of 11 loans with principal of $6,236,571 that are owner occupied and 42 loans with principal of $26,124,772 that are non-owner occupied. At December 31, 2018, single family property consisted of 14 loans with principal of $11,398,869 that are owner occupied and 46 loans with principal $31,568,384 that are non-owner occupied. |
Secured Loans Distributed within California | The distribution of secured loans by counties is presented in the following table as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Principal Percent Principal Percent San Francisco Bay Area (3) Santa Clara $ 19,064,638 27.0 % $ 11,756,695 18.9 % San Mateo 10,837,195 15.3 9,619,609 15.5 San Francisco 7,735,173 10.9 5,238,008 8.4 Alameda 2,930,219 4.2 7,306,779 11.8 Contra Costa 400,000 0.6 725,771 1.2 Santa Cruz 264,515 0.4 — — Marin 249,628 0.4 575,000 0.9 Sonoma — — 1,300,000 2.1 41,481,368 58.8 36,521,862 58.8 Other Northern California Sutter 3,815,000 5.4 — — Monterey 1,110,000 1.6 322,716 0.5 Sacramento 492,216 0.6 822,500 1.3 Tehama 405,000 0.6 — — Placer — — 637,354 1.0 5,822,216 8.2 1,782,570 2.8 Northern California Total 47,303,584 67.0 38,304,432 61.6 Los Angeles & Coastal Los Angeles 12,531,312 17.7 15,514,789 25.0 San Diego 4,983,331 7.1 5,563,635 9.0 Orange 3,067,396 4.3 1,177,446 1.9 Santa Barbara 497,977 0.7 — — 21,080,016 29.8 22,255,870 35.9 Other Southern California San Bernardino 1,200,000 1.7 1,200,000 1.9 Riverside 1,076,684 1.5 355,411 0.6 2,276,684 3.2 1,555,411 2.5 Southern California Total 23,356,700 33.0 23,811,281 38.4 Total principal, secured loans $ 70,660,284 100.0 % $ 62,115,713 100.0 % (3) Includes Silicon Valley |
Secured Loans Scheduled Maturities | Secured loans are scheduled to mature as presented in the following table as of December 31, 2019. Loans Principal Percent 2020 35 $ 25,361,762 36 % 2021 26 38,598,944 55 2022 8 3,642,402 5 2023 2 345,101 — 2024 1 246,684 — Thereafter 2 1,390,000 2 Total future maturities 74 69,584,893 98 Matured as of December 31, 2019 3 1,075,391 2 Total principal, secured loans 77 $ 70,660,284 100 % |
Secured Loans Principal Past Maturity | Secured loans, principal past maturity are summarized in the following table as of December 31, 2019. December 31, 2019 Number of loans 3 Principal $ 1,075,391 Advances 1,653 Accrued interest 21,013 Total recorded investment $ 1,098,057 Principal past maturity as percent of total principal 2 % |
Past Due Financing Receivables | Secured loans, principal summarized by payment delinquency is presented in the following table as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Non-performing loans, principal Loans Principal Loans Principal Past Due 30-89 days 8 $ 3,952,306 5 $ 3,828,975 90-179 days 2 3,520,112 — — 180 or more days 2 1,013,726 2 565,685 Total past due 12 8,486,144 7 4,394,660 Current 65 62,174,140 76 57,721,053 Total principal, secured loans 77 $ 70,660,284 83 $ 62,115,713 |
Payments in Arrears Past Due Financing Receivables | Payments in arrears for non-performing secured loans (i.e., principal and interest payments past due 30 or more days), principal and accrued interest receivable are presented in the following table as of December 31, 2019. Loans Principal Accrued interest receivable Total past due Payments past due 30-89 days 8 $ 312,965 $ 60,041 $ 373,006 90-179 days 2 8,175 136,715 144,890 180 or more days 2 765,000 32,870 797,870 Total payments past due 12 $ 1,086,140 $ 229,626 $ 1,315,766 |
Secured Loans in Non-Accrual Status | Secured loans in non-accrual status are summarized in the following table. December 31, 2019 December 31, 2018 Number of loans 3 2 Principal $ 1,204,495 $ 565,685 Advances 10,677 10,688 Accrued interest 37,799 19,831 Total recorded investment $ 1,252,971 $ 596,204 Foregone interest $ 3,952 $ 33,410 |
Impaired Loans [Member] | |
Impaired Financing Receivables | Loans designated impaired and the associated allowance for loan losses is presented in the following table. December 31, 2019 December 31, 2018 Principal $ 4,533,838 $ 3,841,148 Recorded investment (4) 4,719,705 3,950,157 Impaired loans without allowance 4,451,368 3,950,157 Impaired loans with allowance 268,337 — Allowance for loan losses, impaired loans 37,000 — Number of loans 4 6 LTV at origination (5) 66.0 % 54.7 % (4) Recorded investment is the sum of the principal, advances, and recorded accrued interest. (5) A non-performing loan, in second lien position, with principal of approximately $250,000, and recorded investment of approximately $268,000, was determined to have an LTV which exceeded 90%. The loan was paid in February 2020, after RMI IX made a concession – as did the selling broker - to facilitate the sale of the underlying collateral. RMI IX’s concession approximated $37,000. |
Average Balances and Interest Income [Member] | |
Impaired Financing Receivables | Impaired loans had average balances and interest income recognized and received in cash as presented in the following tables as of and for the years ended December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Average recorded investment $ 4,334,931 $ 2,050,897 Interest income recognized 169,585 23,848 Interest income received in cash 67,990 21,670 |
Organization and General - Addi
Organization and General - Additional Information (Details) | Mar. 31, 2019 | Apr. 30, 2019USD ($) | Dec. 31, 2019Unit | Feb. 28, 2018 | Dec. 31, 2019USD ($) | Mar. 31, 2020 | May 09, 2019USD ($)shares |
Organization and General (Details) [Line Items] | |||||||
Members or partners capital, description | Cash available for distribution at the end of each calendar month is allocated ninety-nine percent (99%) to the members and one percent (1%) to the manager. | ||||||
Percentage of distribution allocated to members | 99.00% | ||||||
Annualized net distribution rate | 6.50% | ||||||
Net distribution rate before organization and offering expense percentage | 6.95% | ||||||
Organization and offering expense percentage | 0.45% | ||||||
Unit Redemption Program, Years After Purchase | 1 year | ||||||
Maximum Capital Units for Redemption Per Quarter Per Individual | Unit | 100,000 | ||||||
Maximum Percentage of Members Total Outstanding Units for Redemption Per Quarter Per Individual | 25.00% | ||||||
Maximum Percentage of Weighted Average Number of Members Outstanding Units During Twelve Months for Redemption | 5.00% | ||||||
Gross proceeds from unit sales | $ 802,000 | ||||||
Maximum [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Percentage of offering proceeds | 7.00% | ||||||
DRIP [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Gross proceeds from unit sales | $ 1,614,000 | ||||||
Member Units [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Capital Unit Sold in Public Offering, Shares | shares | 15,000,000 | ||||||
Capital Unit Sold in Public Offering, Value | $ 15,000,000 | ||||||
RMC [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Ownership interest held by the manager | 0.10% | ||||||
Redemption Between One to Two Years [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 92.00% | 92.00% | |||||
Redemption Between Two to Three Years [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 94.00% | 94.00% | |||||
Redemption Between Three to Four Years [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 96.00% | 96.00% | |||||
Redemption Between Four to Five Years [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 98.00% | 98.00% | |||||
Redemption After Five Years [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Redemption Value Percentage of Purchase Price or Capital Account Balance | 100.00% | 100.00% | |||||
RMC [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Percentage of profits and losses allocated to manager | 1.00% | ||||||
Management Fee, Percentage | 0.75% | 0.75% | |||||
RMC [Member] | Maximum [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Percentage of proceeds from sale of units used to pay for organization and offering expenses,excluding units sold in the DRIP | 4.50% | ||||||
Percentage of proceeds from sale of units used for funding formation loan to related party,excluding units sold in the DRIP | 7.00% | ||||||
RMC [Member] | Scenario, Forecast [Member] | |||||||
Organization and General (Details) [Line Items] | |||||||
Management Fee, Percentage | 1.00% |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)Approach | |
Summary of Significant Accounting Policies [Line Items] | |
Estimating Real Property Value, Number of Approaches | Approach | 3 |
Cash and Cash Equivalents, Maximum Initial Maturity | 3 months |
Impaired loans maximum days of delinquent | 180 days |
Interest Reserve Minimum Length | 1 year |
Interest Reserve Maximum Length | 2 years |
Maximum [Member] | |
Summary of Significant Accounting Policies [Line Items] | |
Federal Insurance Limit | $ | $ 250,000 |
Manager and Other Related Par_3
Manager and Other Related Parties - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) | |
Managers and Other Related Parties (Details) [Line Items] | |||
Managers Share of net income or loss | 1.00% | ||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 77 | 83 | |
Principal | $ 70,660,284 | $ 62,115,713 | $ 54,768,689 |
Scheduled redemptions of member's capital | $ 447,417 | ||
Reimbursement as a percentage of member's original purchase price | 0.45% | ||
Percentage of original purchase price, quarterly installment percentage | 0.1125% | ||
Asset Management Fee [Member] | |||
Managers and Other Related Parties (Details) [Line Items] | |||
Scheduled redemptions of member's capital | $ 447,417 | ||
Performing Loans [Member] | |||
Managers and Other Related Parties (Details) [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 0 | 2 | |
Principal | $ 5,890,000 | ||
Maximum [Member] | |||
Managers and Other Related Parties (Details) [Line Items] | |||
Annual mortgage servicing fees, percentage | 0.25% | ||
Percentage of reimbursement of organization and offering expenses | 4.50% | ||
Reimbursement threshold | maximum of forty (40) such quarters | ||
RMC [Member] | |||
Managers and Other Related Parties (Details) [Line Items] | |||
Administrative Fees, Percentage | 1.00% | ||
Management Fee, Percentage | 0.75% | ||
Working Capital Reserve, Percentage | 2.00% | ||
Loan Brokerage Commission Percent Minimum | 1.50% | ||
Loan Brokerage Commission Percent Maximum | 5.00% | ||
Loan Brokerage Commissions, Maximum Percent of Assets | 4.00% | ||
Scheduled redemptions of member's capital | $ 3,248,482 | $ 2,733,771 |
Manager and Other Related Par_4
Manager and Other Related Parties - Summary of Loan Administrative Fees and Operating Expenses, for Fees and Cost Reimbursements Waived and Expenses Absorbed (Details) - RMC [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Managers and Other Related Parties (Details) [Line Items] | ||
Chargeable/reimbursable | $ 2,443,933 | $ 2,488,458 |
Waived | (1,437,025) | (1,873,212) |
Expenses absorbed by RMC | (157,398) | |
Total RMC support | (1,437,025) | (2,030,610) |
Net charged | 1,006,908 | 457,848 |
Loan Admin Fees [Member] | ||
Managers and Other Related Parties (Details) [Line Items] | ||
Chargeable/reimbursable | 580,516 | 708,491 |
Waived | (580,516) | (708,491) |
Total RMC support | (580,516) | (708,491) |
Mortgage Servicing Fees [Member] | ||
Managers and Other Related Parties (Details) [Line Items] | ||
Chargeable/reimbursable | 166,878 | 151,457 |
Net charged | 166,878 | 151,457 |
Asset Management Fee [Member] | ||
Managers and Other Related Parties (Details) [Line Items] | ||
Chargeable/reimbursable | 476,748 | 419,820 |
Waived | (198,645) | (419,820) |
Total RMC support | (198,645) | (419,820) |
Net charged | 278,103 | |
Costs from RMC [Member] | ||
Managers and Other Related Parties (Details) [Line Items] | ||
Chargeable/reimbursable | 657,864 | 744,901 |
Waived | (657,864) | (744,901) |
Total RMC support | (657,864) | (744,901) |
Professional Services [Member] | ||
Managers and Other Related Parties (Details) [Line Items] | ||
Chargeable/reimbursable | 524,940 | 432,205 |
Expenses absorbed by RMC | (143,152) | |
Total RMC support | (143,152) | |
Net charged | 524,940 | 289,053 |
Other [Member] | ||
Managers and Other Related Parties (Details) [Line Items] | ||
Chargeable/reimbursable | 36,987 | 31,584 |
Expenses absorbed by RMC | (14,246) | |
Total RMC support | (14,246) | |
Net charged | $ 36,987 | $ 17,338 |
Manager and Other Related Par_5
Manager and Other Related Parties - Formation Loan Transactions (Details) - USD ($) | 12 Months Ended | 123 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Formation Loan Transactions [Abstract] | ||
Balance, beginning of period | $ 4,179,343 | |
Formation loan advances to RMC | 186,656 | $ 5,626,566 |
Payments received from RMC | (355,301) | (1,555,017) |
Early withdrawal penalties applied | (62,634) | (123,485) |
Balance, December 31, 2019 | $ 3,948,064 | 3,948,064 |
Subscription proceeds since inception | $ 80,256,995 | |
Formation loan advance rate | 7.00% |
Manager and Other Related Par_6
Manager and Other Related Parties - Formation Loan, Future Minimum Payments (Details) | Dec. 31, 2019USD ($) |
Formation Loan Future Minimum Payments [Abstract] | |
2020 | $ 493,508 |
2021 | 493,508 |
2022 | 493,508 |
2023 | 493,508 |
2024 | 493,508 |
Thereafter | 1,480,524 |
Total | $ 3,948,064 |
Manager and Other Related Par_7
Manager and Other Related Parties - Schedule of Unit Redemptions (Details) - USD ($) | 12 Months Ended | 123 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | ||
Managers and Other Related Parties (Details) [Line Items] | ||||
Total, Capital redemptions | $ 447,417 | |||
Early withdrawal penalties | [1] | 19,415 | $ 60,290 | |
RMC [Member] | ||||
Managers and Other Related Parties (Details) [Line Items] | ||||
Total, Capital redemptions | 3,248,482 | $ 2,733,771 | ||
Early withdrawal penalties | 111,551 | 54,429 | ||
RMC [Member] | Capital Redemptions-without Penalty [Member] | ||||
Managers and Other Related Parties (Details) [Line Items] | ||||
Total, Capital redemptions | 1,281,768 | 1,923,685 | ||
RMC [Member] | Capital Redemptions-subject to Penalty [Member] | ||||
Managers and Other Related Parties (Details) [Line Items] | ||||
Total, Capital redemptions | $ 1,966,714 | $ 810,086 | ||
[1] | Prior to June 30, 2019, early withdrawal penalties collected were applied to the next installment of principal due under the formation loan and to reduce the amount owed to RMC for O&O expenses. The amounts credited were determined by the ratio between the amount of the formation loan and the amount of offering costs incurred by the company. |
Manager and Other Related Par_8
Manager and Other Related Parties - Summary of Organization and Offering Expenses (Details) - USD ($) | 12 Months Ended | 123 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | ||
Related Party Transactions [Abstract] | |||
Balance, beginning of period | $ 2,519,458 | ||
O&O expenses reimbursed to RMC | 185,332 | $ 3,671,853 | |
Early withdrawal penalties applied | [1] | (19,415) | (60,290) |
O&O expenses allocated | [2] | (329,234) | (1,015,590) |
O&O expenses repaid to Members' Capital by RMC | [3] | (96,073) | (335,905) |
Balance, December 31 | $ 2,260,068 | $ 2,260,068 | |
[1] | Prior to June 30, 2019, early withdrawal penalties collected were applied to the next installment of principal due under the formation loan and to reduce the amount owed to RMC for O&O expenses. The amounts credited were determined by the ratio between the amount of the formation loan and the amount of offering costs incurred by the company. | ||
[2] | Beginning in 2016, O&O expenses reimbursed to RMC by RMI IX are allocated to members’ capital accounts over 40 quarters | ||
[3] | RMC is obligated under the Operating Agreement to repay the company for unallocated O&O expenses attributed to units redeemed prior to the 40 quarterly allocations. RMC estimated its future obligations to repay unallocated O&O expenses on scheduled redemptions as of December 31, 2019, to be $10,761, which is expected to be offset by early withdrawal penalties |
Manager and Other Related Par_9
Manager and Other Related Parties - Summary of Organization and Offering Expenses (Parenthetical) (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Related Party Transactions [Abstract] | |
O&O expenses reimbursed period to RMC | 120 months |
Unallocated O&O expenses on units rebates period | 120 months |
Estimated future rebates on scheduled redemptions | $ 10,761 |
Loans - Additional Information
Loans - Additional Information (Details) | Jul. 29, 2019USD ($)MortgageLoan | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)MortgageLoanLoan | Dec. 31, 2018USD ($)MortgageLoanLoan | Dec. 31, 2019 | Dec. 31, 2019MortgageLoan | Dec. 31, 2019Loan | Mar. 31, 2019USD ($) | Dec. 31, 2017USD ($) |
Loans (Details) [Line Items] | |||||||||
Loans Receivable, Term | 5 years | ||||||||
Number of loans acquired from affiliates | Loan | 0 | ||||||||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 77 | 83 | |||||||
Loans Receivable, Number of Principal and Interest Loans | Loan | 53 | ||||||||
Loans Receivable, Amortization Term | 30 years | ||||||||
Mortgage Loans On Real Estate Renewed Number Of Loans | MortgageLoan | 8 | 8 | |||||||
Mortgage Loans On Real Estate Principal Renewed | $ 5,195,000 | $ 5,004,000 | |||||||
Balance relating to loan portfolio deposit in bank trust account | 71,416 | 67,214 | |||||||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 8 | 3 | |||||||
Financing Receivable, Recorded Investment, Nonaccrual Status (in Dollars) | $ 136,640 | ||||||||
Loans receivable aggregate principal amount | $ 4,273,346 | ||||||||
Accrued interest | $ 31,830 | 680,146 | 473,966 | ||||||
Loans Receivable Largest Loan (in Dollars) | 6,735,000 | 4,000,000 | |||||||
Loans - principal (in Dollars) | 70,660,284 | $ 62,115,713 | $ 54,768,689 | ||||||
Loan commitments to lend | 0 | ||||||||
Number of loans | 83 | 2 | 77 | ||||||
Principal | 70,660,284 | $ 62,115,713 | |||||||
Allowance for loans losses reserve | 37,000 | 0 | |||||||
Equity [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Allowance for loans losses reserve | 87,000 | ||||||||
Secured Loan [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Allowance for loans losses reserve | 37,000 | ||||||||
Past Due 274 Days [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Number of loans | MortgageLoan | 1 | ||||||||
Principal | $ 764,100 | ||||||||
Loans receivable extended maturity date | Apr. 1, 2019 | ||||||||
Past Due 121 Days [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Number of loans | MortgageLoan | 1 | ||||||||
Principal | $ 3,329,000 | ||||||||
Past Due 90 Or More Days [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Financing receivable, recorded investment, 90 days past due and still accruing | 3,329,000 | $ 0 | |||||||
Impaired Loans [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Financing Receivable, Recorded Investment, Nonaccrual Status (in Dollars) | $ 500,000 | ||||||||
Gain recognized on sales of loans | $ 0 | ||||||||
Impaired Loans [Member] | Past Due 91 Days [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Principal | $ 191,000 | ||||||||
Loans receivable extended maturity date | Oct. 1, 2021 | ||||||||
Loans receivable maturity date | Jun. 1, 2016 | ||||||||
Impaired Loans [Member] | Past Due 231 Days [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Principal | $ 250,000 | ||||||||
Impaired Loans [Member] | Past Due 60 Or Fewer Days [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Number of loans | MortgageLoan | 8 | ||||||||
Principal | $ 3,952,000 | ||||||||
Five Years Or Less Term Loans [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 74 | ||||||||
Loans Receivable, Percent of Aggregate Principal | 98.00% | ||||||||
Interest Only [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Loans Receivable, Percent of Aggregate Principal | 45.00% | ||||||||
Largest Loan [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Loans Receivable, Yield of Loan Acquired | 8.25% | ||||||||
Loans Receivable Maturity Date | Oct. 1, 2021 | ||||||||
Largest Loan [Member] | Filed Notice Of Sale [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 0 | ||||||||
Construction Loans [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Loans outstanding | $ 0 | ||||||||
Rehabilitation Loans [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Loans outstanding | 0 | ||||||||
Construction Or Rehabilitation Loans [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Loans - principal (in Dollars) | $ 0 | ||||||||
Minimum [Member] | |||||||||
Loans (Details) [Line Items] | |||||||||
Loans Receivable, Remaining Term | 5 years |
Loans - Secured Loan Principal
Loans - Secured Loan Principal Transactions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Principal, beginning of period | $ 62,115,713 | $ 54,768,689 |
Loans originated | 58,051,600 | 64,959,250 |
Loans transferred from affiliates | 5,889,819 | |
Loans sold to non-affiliate | (4,909,986) | (21,995,851) |
Principal collected | (44,597,043) | (41,506,194) |
Principal December 31 | $ 70,660,284 | $ 62,115,713 |
Loans - Secured Loans Character
Loans - Secured Loans Characteristics (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)MortgageLoanCountry | Dec. 31, 2018USD ($)MortgageLoanCountry | Dec. 31, 2017USD ($) | |
Secured Loan Transactions [Line Items] | |||
Number of secured loans | MortgageLoan | 77 | 83 | |
Secured loans - principal (in Dollars) | $ 70,660,284 | $ 62,115,713 | $ 54,768,689 |
Average secured loan - principal (in Dollars) | $ 917,666 | $ 748,382 | |
Average principal as percent of total principal | 1.30% | 1.20% | |
Average principal as percent of members’ capital, net | 1.20% | 1.00% | |
Average principal as percent of total assets | 1.20% | 1.00% | |
Largest secured loan - principal (in Dollars) | $ 6,735,000 | $ 4,000,000 | |
Largest principal as percent of total principal | 9.50% | 6.40% | |
Largest principal as percent of members’ capital, net | 8.50% | 5.20% | |
Largest principal as percent of total assets | 8.90% | 5.50% | |
Smallest secured loan - principal (in Dollars) | $ 125,656 | $ 74,390 | |
Smallest principal as percent of total principal | 0.20% | 0.10% | |
Smallest principal as percent of members’ capital, net | 0.20% | 0.10% | |
Smallest principal as percent of total assets | 0.20% | 0.10% | |
Number of California counties where security is located | Country | 17 | 15 | |
Largest percentage of principal in one California county | 27.00% | 25.00% | |
Secured loans in foreclosure - principal (in Dollars) | $ 565,685 | ||
Minimum [Member] | |||
Secured Loan Transactions [Line Items] | |||
Secured loans – interest rate (fixed) | 7.80% | 7.00% | |
Maximum [Member] | |||
Secured Loan Transactions [Line Items] | |||
Secured loans – interest rate (fixed) | 10.50% | 10.50% | |
Filed Notice of Default [Member] | |||
Secured Loan Transactions [Line Items] | |||
Number of secured loans | MortgageLoan | 2 |
Loans - Secured Loans by Lien P
Loans - Secured Loans by Lien Position in the Collateral (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) | ||
Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Loans | MortgageLoan | 77 | 83 | ||
Loans - principal (in Dollars) | $ 70,660,284 | $ 62,115,713 | $ 54,768,689 | |
Liens due other lenders at loan closing | 54,062,023 | 65,941,118 | ||
Total debt | 124,722,307 | 128,056,831 | ||
Appraised property value at loan closing | $ 237,453,000 | $ 240,307,000 | ||
Percent of total debt to appraised values (LTV) at loan closing | [1] | 55.30% | 54.50% | |
Loans - percent | 100.00% | 100.00% | ||
First Trust Deeds [Member] | ||||
Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Loans | MortgageLoan | 42 | 41 | ||
Loans - principal (in Dollars) | $ 42,712,037 | $ 29,699,888 | ||
Loans - percent | 60.00% | 48.00% | ||
Second Trust Deeds [Member] | ||||
Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Loans | MortgageLoan | 35 | 42 | ||
Loans - principal (in Dollars) | $ 27,948,247 | $ 32,415,825 | ||
Loans - percent | 40.00% | 52.00% | ||
[1] | based on appraised values and liens due to other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing nor does it include decreases or increases of the amount of senior liens to other lenders. |
Loans - Secured Loans by Proper
Loans - Secured Loans by Property Type (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) | ||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans | MortgageLoan | 77 | 83 | ||
Loans - principal (in Dollars) | $ | $ 70,660,284 | $ 62,115,713 | $ 54,768,689 | |
Loans - percent | 100.00% | 100.00% | ||
Single Family [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans | MortgageLoan | [1] | 53 | 60 | |
Loans - principal (in Dollars) | $ | [1] | $ 32,361,343 | $ 42,967,253 | |
Loans - percent | [1] | 46.00% | 69.00% | |
Multifamily [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans | MortgageLoan | 9 | 8 | ||
Loans - principal (in Dollars) | $ | $ 9,219,497 | $ 8,210,970 | ||
Loans - percent | 13.00% | 13.00% | ||
Commercial [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans | MortgageLoan | 15 | 15 | ||
Loans - principal (in Dollars) | $ | $ 29,079,444 | $ 10,937,490 | ||
Loans - percent | 41.00% | 18.00% | ||
[1] | single family property type as of December 31, 2019 consists of 11 loans with principal of $6,236,571 that are owner occupied and 42 loans with principal of $26,124,772 that are non-owner occupied. At December 31, 2018, single family property consisted of 14 loans with principal of $11,398,869 that are owner occupied and 46 loans with principal $31,568,384 that are non-owner occupied. |
Loans - Secured Loans by Prop_2
Loans - Secured Loans by Property Type (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) | |
Loans (Details) - Secured Loans by Property Type [Line Items] | |||
Loans | MortgageLoan | 77 | 83 | |
Principal | $ | $ 70,660,284 | $ 62,115,713 | $ 54,768,689 |
Single Family Property-Owner Occupied [Member] | |||
Loans (Details) - Secured Loans by Property Type [Line Items] | |||
Loans | MortgageLoan | 11 | 14 | |
Principal | $ | $ 6,236,571 | $ 11,398,869 | |
Single Family Property-NonOwner Occupied [Member] | |||
Loans (Details) - Secured Loans by Property Type [Line Items] | |||
Loans | MortgageLoan | 42 | 46 | |
Principal | $ | $ 26,124,772 | $ 31,568,384 |
Loans - Secured Loans Distribut
Loans - Secured Loans Distributed in California (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 70,660,284 | $ 62,115,713 | $ 54,768,689 | |
Loans - percent | 100.00% | 100.00% | ||
Santa Clara [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 19,064,638 | $ 11,756,695 | |
Loans - percent | [1] | 27.00% | 18.90% | |
San Mateo [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 10,837,195 | $ 9,619,609 | |
Loans - percent | [1] | 15.30% | 15.50% | |
Alameda [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 2,930,219 | $ 7,306,779 | |
Loans - percent | [1] | 4.20% | 11.80% | |
San Francisco [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 7,735,173 | $ 5,238,008 | |
Loans - percent | [1] | 10.90% | 8.40% | |
Sonoma [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 1,300,000 | ||
Loans - percent | [1] | 2.10% | ||
Contra Costa [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 400,000 | $ 725,771 | |
Loans - percent | [1] | 0.60% | 1.20% | |
Santa Cruz [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 264,515 | ||
Loans - percent | [1] | 0.40% | ||
Marin [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 249,628 | $ 575,000 | |
Loans - percent | [1] | 0.40% | 0.90% | |
San Francisco Bay Area [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 41,481,368 | $ 36,521,862 | |
Loans - percent | [1] | 58.80% | 58.80% | |
Sutter [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 3,815,000 | |||
Loans - percent | 5.40% | |||
Sacramento [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 492,216 | $ 822,500 | ||
Loans - percent | 0.60% | 1.30% | ||
Placer [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 637,354 | |||
Loans - percent | 1.00% | |||
Monterey [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 1,110,000 | $ 322,716 | ||
Loans - percent | 1.60% | 0.50% | ||
Tehama [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 405,000 | |||
Loans - percent | 0.60% | |||
Other Northern California [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 5,822,216 | $ 1,782,570 | ||
Loans - percent | 8.20% | 2.80% | ||
Northern California [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 47,303,584 | $ 38,304,432 | ||
Loans - percent | 67.00% | 61.60% | ||
Los Angeles [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 12,531,312 | $ 15,514,789 | ||
Loans - percent | 17.70% | 25.00% | ||
San Diego [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 4,983,331 | $ 5,563,635 | ||
Loans - percent | 7.10% | 9.00% | ||
Orange [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 3,067,396 | $ 1,177,446 | ||
Loans - percent | 4.30% | 1.90% | ||
Santa Barbara [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 497,977 | |||
Loans - percent | 0.70% | |||
Los Angeles & Coastal [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 21,080,016 | $ 22,255,870 | ||
Loans - percent | 29.80% | 35.90% | ||
San Bernardino [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 1,200,000 | $ 1,200,000 | ||
Loans - percent | 1.70% | 1.90% | ||
Riverside [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 1,076,684 | $ 355,411 | ||
Loans - percent | 1.50% | 0.60% | ||
Other Southern California [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 2,276,684 | $ 1,555,411 | ||
Loans - percent | 3.20% | 2.50% | ||
Southern California [Member] | ||||
Loans (Details) - Secured Loans Distributed Within California [Line Items] | ||||
Loans - principal (in Dollars) | $ 23,356,700 | $ 23,811,281 | ||
Loans - percent | 33.00% | 38.40% | ||
[1] | Includes Silicon Valley |
Loans - Secured Loans Scheduled
Loans - Secured Loans Scheduled Maturities (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Jul. 29, 2019MortgageLoan | Dec. 31, 2017USD ($) | |
Secured Loans Scheduled Maturities [Abstract] | ||||
2020, Loans | MortgageLoan | 35 | |||
2021, Loans | MortgageLoan | 26 | |||
2022, Loans | MortgageLoan | 8 | |||
2023, Loans | MortgageLoan | 2 | |||
2024, Loans | MortgageLoan | 1 | |||
Thereafter, Loans | MortgageLoan | 2 | |||
Total future maturities, Loans | MortgageLoan | 74 | |||
Matured as of December 31, 2019, Loans | MortgageLoan | 3 | 8 | ||
Loans | MortgageLoan | 77 | 83 | ||
2020, Principal | $ | $ 25,361,762 | |||
2021, Principal | $ | 38,598,944 | |||
2022, Principal | $ | 3,642,402 | |||
2023, Principal | $ | 345,101 | |||
2024, Principal | $ | 246,684 | |||
Thereafter, Principal | $ | 1,390,000 | |||
Total future maturities, Principal | $ | 69,584,893 | |||
Matured as of December 31, 2019, Principal | $ | 1,075,391 | |||
Total principal, secured loans, Principal | $ | $ 70,660,284 | $ 62,115,713 | $ 54,768,689 | |
2020, Percent | 36.00% | |||
2021, Percent | 55.00% | |||
2022, Percent | 5.00% | |||
Thereafter, Percent | 2.00% | |||
Total future maturities, Percent | 98.00% | |||
Matured as of December 31, 2019, Percent | 2.00% | |||
Total principal, secured loans, Percent | 100.00% | 100.00% |
Loans - Secured Loans Principal
Loans - Secured Loans Principal Past Maturity (Details) | Dec. 31, 2019USD ($)MortgageLoan | Jul. 29, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Loans Details Secured Loans In Nonaccrual Status [Line Items] | ||||
Number of loans | MortgageLoan | 3 | 8 | ||
Loans - principal (in Dollars) | $ 70,660,284 | $ 62,115,713 | $ 54,768,689 | |
Accrued interest | $ 680,146 | $ 31,830 | $ 473,966 | |
Matured Loans [Member] | ||||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | ||||
Number of loans | MortgageLoan | 3 | |||
Loans - principal (in Dollars) | $ 1,098,057 | |||
Accrued interest | $ 21,013 | |||
Principal past maturity as percent of total principal | 2.00% | |||
Principal [Member] | Matured Loans [Member] | ||||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | ||||
Loans - principal (in Dollars) | $ 1,075,391 | |||
Advances [Member] | Matured Loans [Member] | ||||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | ||||
Loans - principal (in Dollars) | $ 1,653 |
Loans - Past Due Financing Rece
Loans - Past Due Financing Receivables (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019MortgageLoan | Dec. 31, 2019Loan | Dec. 31, 2018USD ($)Loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of loans | 2 | 77 | 83 | |
Principal | $ 70,660,284 | $ 62,115,713 | ||
Past Due 30-89 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of loans | Loan | 8 | 5 | ||
Principal | 3,952,306 | $ 3,828,975 | ||
Past Due 90-179 Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of loans | Loan | 2 | |||
Principal | 3,520,112 | |||
Past Due 180 Or More Days [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of loans | Loan | 2 | 2 | ||
Principal | 1,013,726 | $ 565,685 | ||
Total Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of loans | Loan | 12 | 7 | ||
Principal | 8,486,144 | $ 4,394,660 | ||
Current [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Number of loans | Loan | 65 | 76 | ||
Principal | $ 62,174,140 | $ 57,721,053 |
Loans - Payments in Arrears Pas
Loans - Payments in Arrears Past Due Financing Receivables (Details) | Dec. 31, 2019USD ($) | Dec. 31, 2019MortgageLoan | Dec. 31, 2019Loan | Jul. 29, 2019USD ($) | Dec. 31, 2018USD ($)Loan |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Number of loans | 2 | 77 | 83 | ||
Principal | $ 70,660,284 | $ 62,115,713 | |||
Accrued interest receivable | 680,146 | $ 31,830 | $ 473,966 | ||
Past Due 30-89 Days [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Number of loans | Loan | 8 | 5 | |||
Principal | 3,952,306 | $ 3,828,975 | |||
Past Due 30-89 Days [Member] | Non-Performing Secured Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Number of loans | Loan | 8 | ||||
Principal | 312,965 | ||||
Accrued interest receivable | 60,041 | ||||
Total past due | 373,006 | ||||
Past Due 90-179 Days [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Number of loans | Loan | 2 | ||||
Principal | 3,520,112 | ||||
Past Due 90-179 Days [Member] | Non-Performing Secured Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Number of loans | Loan | 2 | ||||
Principal | 8,175 | ||||
Accrued interest receivable | 136,715 | ||||
Total past due | 144,890 | ||||
Past Due 180 Or More Days [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Number of loans | Loan | 2 | 2 | |||
Principal | 1,013,726 | $ 565,685 | |||
Past Due 180 Or More Days [Member] | Non-Performing Secured Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Number of loans | Loan | 2 | ||||
Principal | 765,000 | ||||
Accrued interest receivable | 32,870 | ||||
Total past due | 797,870 | ||||
Total Past Due [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Number of loans | Loan | 12 | 7 | |||
Principal | 8,486,144 | $ 4,394,660 | |||
Total Past Due [Member] | Non-Performing Secured Loan [Member] | |||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||||
Number of loans | Loan | 12 | ||||
Principal | 1,086,140 | ||||
Accrued interest receivable | 229,626 | ||||
Total past due | $ 1,315,766 |
Loans - Secured Loan in Non-Acc
Loans - Secured Loan in Non-Accrual Status (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Jul. 29, 2019USD ($) | Dec. 31, 2017USD ($) | |
Loans Details Secured Loans In Nonaccrual Status [Line Items] | ||||
Loans | MortgageLoan | 77 | 83 | ||
Loans - principal (in Dollars) | $ 70,660,284 | $ 62,115,713 | $ 54,768,689 | |
Accrued interest | $ 680,146 | $ 473,966 | $ 31,830 | |
Non-Accrual Status [Member] | ||||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | ||||
Loans | MortgageLoan | 3 | 2 | ||
Loans - principal (in Dollars) | $ 1,252,971 | $ 596,204 | ||
Accrued interest | 37,799 | 19,831 | ||
Foregone interest | 3,952 | 33,410 | ||
Principal [Member] | Non-Accrual Status [Member] | ||||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | ||||
Loans - principal (in Dollars) | 1,204,495 | 565,685 | ||
Advances [Member] | Non-Accrual Status [Member] | ||||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | ||||
Loans - principal (in Dollars) | $ 10,677 | $ 10,688 |
Loans - Schedule of Impaired Lo
Loans - Schedule of Impaired Loans/Allowance for Loan Losses (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | ||
Secured Loans Designated as Impaired Loans [Abstract] | |||
Principal | $ 4,533,838 | $ 3,841,148 | |
Recorded investment | [1] | 4,719,705 | 3,950,157 |
Impaired loans without allowance | 4,451,368 | 3,950,157 | |
Impaired loans with allowance | 268,337 | ||
Allowance for loan losses, impaired loans | $ 37,000 | $ 0 | |
Number of loans | Loan | 4 | 6 | |
LTV at origination | [2] | 66.00% | 54.70% |
LTV of 90% [Member] | |||
Secured Loans Designated as Impaired Loans [Abstract] | |||
Principal | $ 250,000 | ||
Recorded investment | [1] | 268,000 | |
Allowance for loan losses, impaired loans | $ 37,000 | ||
LTV at origination | [2] | 90.00% | |
[1] | Recorded investment is the sum of the principal, advances, and recorded accrued interest. A non-performing loan, in second lien position, with principal of approximately $250,000, and recorded investment of approximately $268,000, was determined to have an LTV which exceeded 90%. The loan was paid in February 2020, after RMI IX made a concession – as did the selling broker - to facilitate the sale of the underlying collateral. RMI IX’s concession approximated $37,000. | ||
[2] | A non-performing loan, in second lien position, with principal of approximately $250,000, and recorded investment of approximately $268,000, was determined to have an LTV which exceeded 90%. The loan was paid in February 2020, after RMI IX made a concession – as did the selling broker - to facilitate the sale of the underlying collateral. RMI IX’s concession approximated $37,000. |
Loans - Impaired Loans - Averag
Loans - Impaired Loans - Average Balances and Interest Income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Loans - Average Balances and Interest Income [Abstract] | ||
Average recorded investment | $ 4,334,931 | $ 2,050,897 |
Interest income recognized | 169,585 | 23,848 |
Interest income received in cash | $ 67,990 | $ 21,670 |
Commitment and Contingencies, O
Commitment and Contingencies, Other Than Loan Commitments - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Future redemptions of member's capital | $ 447,417 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Mar. 27, 2020USD ($)MortgageLoan | Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan |
Subsequent Event [Line Items] | |||
Number of secured loans | MortgageLoan | 77 | 83 | |
Principal | $ | $ 70,660,284 | $ 62,115,713 | |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of secured loans | MortgageLoan | 1 | ||
Principal | $ | $ 2,300,000 |