Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 25, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | |||
Entity Registrant Name | Reven Housing REIT, Inc. | ||
Entity Central Index Key | 1487782 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Trading Symbol | RVEN | ||
Entity Common Stock, Shares Outstanding | 87,860,880 | ||
Document Type | 10-K | ||
Amendment Flag | TRUE | ||
Amendment Description | This Amendment No. 1 on Form 10-K/A (“Amendment No. 1”) is being filed to effect a restatement of the previously issued consolidated financial statements of Reven Housing REIT, Inc. (either the “Company,” “we” or “our”) as of and for the year ended December 31, 2013 filed as part of the Company’s Annual Report on Form 10-K filed with the SEC on March 25, 2014 (“Original Form 10-K”). The Company is restating its previously issued fiscal 2013 consolidated financial statements to correct an error that resulted from the inadvertent failure to properly account for our portfolio acquisitions of leased single family homes as asset acquisitions instead of business acquisitions. In addition, a portion of the purchase price relating to 2013 acquisitions should have been allocated on our balance sheet to lease origination costs instead of building values. This Amendment No.1 amends and restates Items 1, 2, 7, 8 and 9A of Part II of the Original Form 10-K to reflect the effects of the restatements. In addition, in accordance with Rule 12b-15 promulgated under the Securities and Exchange Act of 1934, as amended, this Amendment also includes updated certifications from our Chief Executive Officer and Chief Financial Officer as Exhibits 31.1, 31.2 and 32.1. The remaining Items contained within this Amendment No. 1 consist of all other Items originally contained in Original Form 10-K. This Amendment No. 1 does not reflect events occurring after the filing of the Original Form 10-K or modify or update those disclosures in any way other than as required to reflect the effects of the restatements. | ||
Document Period End Date | 31-Dec-13 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2013 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1,261,295 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Investment in real estate: | ||
Land | $2,514,009 | $67,019 |
Buildings and improvements | 9,685,361 | 276,391 |
Investment in real estate,Gross | 12,199,370 | 343,410 |
Accumulated depreciation | -73,950 | -1,400 |
Investment in real estate, net | 12,125,420 | 342,010 |
Cash | 2,134,510 | 5,763 |
Rents and other receivables | 10,053 | 3,375 |
Escrow deposits and prepaid expenses | 151,128 | 0 |
Lease origination costs, net | 75,038 | 0 |
Deferred stock issuance costs | 35,000 | 50,000 |
Total Assets | 14,531,149 | 401,148 |
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | ||
Convertible notes payable - officer, net of debt discount of $123,430 in 2012, and $0 in 2013 | 0 | 128,746 |
Convertible notes payable, net of debt discount of $122,364 in 2012, and $0 in 2013 | 0 | 127,635 |
Convertible notes payable - shareholders, net of debt discount of $25,539 in 2012, and $0 in 2013 | 0 | 26,638 |
Accounts payable and accrued expenses | 347,179 | 119,978 |
Accrued interest and security deposits | 156,985 | 14,770 |
Related party advance | 0 | 266,877 |
Total Liabilities | 504,164 | 684,644 |
Commitments (Note 9) | ||
Stockholders' (Deficit) Equity | ||
Preferred stock, $.001 par value; 25,000,000 shares authorized; No shares issued & outstanding | 0 | 0 |
Common stock, $.001 par value; 600,000,000 shares authorized; 8,350,000 shares issued & outstanding at December 31, 2012 and 87,860,880 at December 31, 2013 | 87,861 | 8,350 |
Additional paid-in capital | 15,953,180 | 349,513 |
Accumulated deficit | -2,014,056 | -641,359 |
Total Stockholders' (Deficit) Equity | 14,026,985 | -283,496 |
Total Liabilities and Stockholders' (Deficit) Equity | $14,531,149 | $401,148 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Notes payable related parties, net of discount (in dollars) | $0 | $123,430 |
Notes payable, net of discount (in dollars) | 0 | 122,364 |
Notes payable shareholders, net of debt discount (in dollars) | $0 | $25,539 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 600,000,000 | 600,000,000 |
Common stock, shares issued | 87,860,880 | 8,350,000 |
Common stock, shares outstanding | 87,860,880 | 8,350,000 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Rental income | $342,243 | $6,750 |
Operating expenses: | ||
Rental expenses | 136,679 | 1,006 |
General and administrative | 366,071 | 132,261 |
Legal and accounting | 195,156 | 396,797 |
Real estate acquisition costs | 279,965 | 0 |
Interest expense | 77,004 | 13,258 |
Amortization of discount on notes payable | 563,253 | 56,530 |
Depreciation and amortization expense | 96,812 | 1,400 |
Total operating expenses | 1,714,940 | 601,252 |
Loss from continuing operations | -1,372,697 | -594,502 |
Income from discontinued operations, net of taxes | 0 | 334 |
Net loss | ($1,372,697) | ($594,168) |
Net loss per share from continuing operations | ||
(Basic and fully diluted) (in dollars per share) | ($0.05) | ($0.06) |
Net loss per share from discontinued operations | ||
(Basic and fully diluted) (in dollars per share) | $0 | $0 |
Weighted average number of common shares outstanding (in shares) | 26,732,284 | 9,170,492 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ (DEFICIT) EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balances at Dec. 31, 2011 | ($17,191) | $10,000 | $20,000 | ($47,191) |
Balances (in shares) at Dec. 31, 2011 | 10,000,000 | |||
Shares returned to treasury | 0 | -1,650 | 1,650 | |
Shares returned to treasury (in shares) | -1,650,000 | |||
Fair value of note conversion feature and warrants issued | 327,863 | 327,863 | ||
Net loss | -594,168 | -594,168 | ||
Balances at Dec. 31, 2012 | -283,496 | 8,350 | 349,513 | -641,359 |
Balances (in shares) at Dec. 31, 2012 | 8,350,000 | |||
Fair value of note conversion feature and warrants issued | 291,920 | 291,920 | ||
Shares issued on conversion of notes | 902,176 | 4,511 | 897,665 | |
Shares issued on conversion of notes (in shares) | 4,510,880 | |||
Issuances of shares | 14,489,082 | 75,000 | 14,414,082 | |
Issuances of shares (in shares) | 75,000,000 | |||
Net loss | -1,372,697 | -1,372,697 | ||
Balances at Dec. 31, 2013 | $14,026,985 | $87,861 | $15,953,180 | ($2,014,056) |
Balances (in shares) at Dec. 31, 2013 | 87,860,880 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows From Operating Activities: | ||
Net loss | ($1,372,697) | ($594,168) |
Net income from discontinued operations | 0 | -334 |
Adjustments to reconcile net loss to net cash used for operating activities: | ||
Amortization of debt discount | 563,253 | 56,530 |
Depreciation and amortization expense | 96,812 | 1,400 |
Changes in operating assets and liabilities: | ||
Rents and other receivables | -6,678 | -3,375 |
Escrow deposits and prepaid expenses | -151,128 | 0 |
Accounts payable, accrued expenses, accrued interest and security deposits | 369,416 | 131,958 |
Related party advances | -266,877 | 266,877 |
Net cash used for operating activities - continuing operations | -767,899 | -141,112 |
Net cash provided for operating activities - discontinued operations | 0 | 334 |
Net cash used for operating activities | -767,899 | -140,778 |
Cash Flows From Investing Activities: | ||
Acquisition of residential homes | -11,855,960 | -343,410 |
Lease origination costs | -99,300 | 0 |
Net cash used for investing activities | -11,955,260 | -343,410 |
Cash Flows From Financing Activities: | ||
Proceeds from convertible notes payable | 500,000 | 554,352 |
Payment of convertible notes payable | -152,176 | -15,000 |
Deferred stock issuance costs | -35,000 | -50,000 |
Net proceeds from common stock issuance | 14,539,082 | 0 |
Net cash provided by financing activities | 14,851,906 | 489,352 |
Net Increase In Cash | 2,128,747 | 5,164 |
Cash at the Beginning of the Year | 5,763 | 599 |
Cash at the End of the Year | 2,134,510 | 5,763 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||
Debt discount for allocation of proceeds to warrants and beneficial conversion feature of debt | 291,920 | 327,863 |
Conversion of debt to common shares | 902,176 | 0 |
Deferred costs of common stock issuance | 50,000 | 0 |
Supplemental Disclosure: | ||
Cash paid for interest | $88,821 | $2,790 |
ORGANIZATION_OPERATIONS_AND_SU
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] | NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||
Reven Housing REIT, Inc. and Subsidiaries (the “Company”) (formerly known as Bureau of Fugitive Recovery, Inc.) was incorporated in the State of Colorado on April 26, 1995. The Company previously provided bounty hunting services for bail bond businesses through July 2, 2012. | |||||||||||
On July 2, 2012 Chad M. Carpenter purchased an aggregate of 5,999,300 shares of the outstanding common stock of the Company from certain of the Company’s stockholders in a private transaction. In connection with the transaction, an aggregate of 1,650,000 shares of the Company’s outstanding common stock were returned to treasury for cancellation. Immediately upon the closing of the transaction, Mr. Carpenter became the majority shareholder and Chief Executive Officer of the Company and beneficially owned stock representing 71.8 percent of the outstanding voting shares of the Company. | |||||||||||
The Company formally changed its name from Bureau of Fugitive Recovery, Inc. to “Reven Housing REIT, Inc.” and commenced activities to acquire portfolios of occupied and rented single-family houses throughout the United States in accordance with its new business plan. The Company’s business plan involves (i) acquiring portfolios of rented houses from investors; and (ii) receiving income from rental property activity and future profits from sale of rental property at appreciated values. | |||||||||||
Restatement of Consolidated Financial Statements | |||||||||||
In connection with preparing the annual financial information for the year ending December 31, 2014, prior period errors were identified which affected the annual period ended December 31, 2013. These errors occurred in the Company’s accounting for the acquisition of certain real property portfolios of single family homes included in investment in real estate and involve acquisition costs that were improperly capitalized, and the reallocation of acquisition values from building and improvements to lease origination costs. These errors require the Company to restate previously reported financial results contained in this report. The effects of these prior period errors in the consolidated financial statements are as follows: | |||||||||||
December 31, 2013 | |||||||||||
As | As previously | ||||||||||
Restated | Reported | Adjustment | |||||||||
Consolidated Balance Sheet | |||||||||||
Buildings and improvements | $ | 9,685,361 | $ | 10,064,626 | $ | -379,265 | |||||
Accumulated depreciation | $ | -73,950 | $ | -76,200 | $ | 2,250 | |||||
Investment in real estate, net | $ | 12,125,420 | $ | 12,502,435 | $ | -377,015 | |||||
Lease origination costs | $ | 75,038 | $ | - | $ | 75,038 | |||||
Total Assets | $ | 14,531,149 | $ | 14,833,126 | $ | -301,977 | |||||
Accumulated deficit | $ | -2,014,056 | $ | -1,712,079 | $ | -301,977 | |||||
Total Stockholders' Equity | $ | 14,026,985 | $ | 14,328,962 | $ | -301,977 | |||||
Total Liabilities and Stockholders' Equity | $ | 14,531,149 | $ | 14,833,126 | $ | -301,977 | |||||
Consolidated Statement of Operations | |||||||||||
Real estate acquisition costs | $ | 279,965 | $ | - | $ | 279,965 | |||||
Depreciation and amortization | $ | 96,812 | $ | 74,800 | $ | 22,012 | |||||
Total operating expenses | $ | 1,714,940 | $ | 1,412,963 | $ | 301,977 | |||||
Net loss | $ | -1,372,697 | $ | -1,070,720 | $ | -301,977 | |||||
Net loss per share | $ | -0.05 | $ | -0.04 | $ | -0.01 | |||||
Consolidated Statement of Cash Flows | |||||||||||
Net loss | $ | -1,372,697 | $ | -1,070,720 | $ | -301,977 | |||||
Depreciation and amortization | $ | 96,812 | $ | 74,800 | $ | 22,012 | |||||
Net cash used in operating activities | $ | -767,899 | $ | -336,806 | $ | -431,093 | |||||
Acquisitions of investments in real estate | $ | -11,855,960 | $ | -12,235,225 | $ | 379,265 | |||||
Lease origination costs | $ | -99,300 | $ | - | $ | -99,300 | |||||
Net cash used in investing activities | $ | -11,955,260 | $ | -12,386,353 | $ | 431,093 | |||||
Discontinued Operations | |||||||||||
On July 2, 2012, the Company discontinued operations related to the Bureau of Fugitive Recovery, Inc. upon Chad M. Carpenter becoming the majority shareholder of the Company. Accordingly, the former operations are classified as discontinued operations in the accompanying consolidated statements of operations. | |||||||||||
Basis of Accounting | |||||||||||
The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). | |||||||||||
Principles of Consolidation | |||||||||||
The accompanying financial statements consolidate the accounts of the Company and its wholly-owned subsidiaries, Reven Housing Georgia, LLC and Reven Housing Texas, LLC. All significant inter-company transactions have been eliminated in consolidation. | |||||||||||
New Accounting Pronouncements | |||||||||||
The Company has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company. | |||||||||||
Cash and Cash Equivalents | |||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents. | |||||||||||
Rents and Other Receivables | |||||||||||
Rents and other receivables represent the amount of rent receivables, security deposits and net rental funds which are held by the property manager on behalf of the Company, net of any allowance for amounts deemed uncollectible. | |||||||||||
Deferred Stock Issuance Costs | |||||||||||
Deferred stock issuance costs represent amounts paid for consulting services and other offering expenses in conjunction with the future raising of additional capital to be performed within one year. These costs are charged against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. | |||||||||||
Concentration of Risk | |||||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash. The Company’s cash in excess of the Federal Deposit Insurance Corporation insured limits at December 31, 2013, were approximately $1,911,000. The Company does not believe it is exposed to any significant credit risk due to the quality nature of the financial instruments in which the money is held. | |||||||||||
Warrant Issuance and Note Conversion Feature | |||||||||||
The Company accounts for the proceeds from the issuance of convertible notes payable with detachable stock purchase warrants and embedded conversion features in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options. Under FASB ASC 470-20, the proceeds from the issuance of a debt instrument with detachable stock purchase warrants shall be allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion of the proceeds allocated to the warrants is accounted for as additional paid-in capital and the remaining proceeds are allocated to the debt instrument which resulted in a discount to debt which is amortized and charged as interest expense over the term of the note agreement. Additionally, pursuant to FASB ASC 470-20, the intrinsic value of the embedded conversion feature of the convertible notes payable is included in the discount to debt and amortized and charged to interest expense over the life of the note agreement. | |||||||||||
Revenue Recognition | |||||||||||
Property is leased under rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis. | |||||||||||
Income Taxes | |||||||||||
The Company intends to elect to be taxed as a REIT, as defined in the Internal Revenue Code, upon meeting the necessary requirements. Management believes that the Company will be able to satisfy the requirements for qualification as a REIT. Accordingly, the Company is not expecting to be subject to federal income tax, provided that it qualifies as a REIT and distributions to the stockholders equal or exceed REIT taxable income. | |||||||||||
However, qualification and taxation as a REIT depend upon the Company’s ability to meet the various qualification tests imposed under the Internal Revenue Code related to the percentage of income that are earned from specified sources, the percentage of assets that fall within specified categories, the diversity of capital stock ownership, and the percentage of earnings that are distributed. Accordingly, no assurance can be given that the Company will be organized or be able to operate in a manner so as to qualify or remain qualified as a REIT. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for four subsequent tax years. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes. | |||||||||||
The tax benefit of uncertain tax positions is recognized only if it is “more likely than not” that the tax position will be sustained, based solely on its technical merits, with the taxing authority having full knowledge of relevant information. The measurement of a tax benefit for an uncertain tax position that meets the “more likely than not” threshold is based on a cumulative probability model under which the largest amount of tax benefit recognized is the amount with a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority, having full knowledge of all the relevant information. As of December 31, 2012 and 2013, the Company had no unrecognized tax benefits. The Company does not anticipate a significant change in the total amount of unrecognized tax benefits during 2014. | |||||||||||
Incentive Compensation Plan | |||||||||||
During 2012, the Company established the 2012 Incentive Compensation Plan, which was subsequently amended and restated in December 2013 (“2012 Plan”). The 2012 Plan allows for the grant of options and other awards representing up to 33,000,000 shares of the Company’s common stock. Such awards may be granted to officers, directors, employees, consultants and other persons who provide services to the Company or any related entity. Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event longer than ten years. No awards have been granted as of December 31, 2013. | |||||||||||
Net Loss Per Share | |||||||||||
Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share. For the year ended December 31, 2012 there were no shares that were potentially dilutive. For the year ended December 31, 2013, potentially dilutive securities excluded from the calculations were 5,271,760 shares issuable upon exercise of outstanding warrants granted in conjunction with the convertible notes. | |||||||||||
Financial Instruments | |||||||||||
The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value. | |||||||||||
Security Deposits | |||||||||||
Security deposits represent amounts deposited by tenants at the inception of the lease. | |||||||||||
Use of Estimates | |||||||||||
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and reported amounts of expenses for the periods presented. Accordingly, actual results could differ from those estimates. Significant estimates include assumptions used to value warrants and conversion features associated with convertible notes payable (Note 3). Further, significant estimates include assumptions used to determine the allocation of purchase prices of property acquisitions (Note 1). | |||||||||||
Investments in Real Estate | |||||||||||
The Company accounts for its investments in real estate as business combinations under the guidance of FASB ASC Topic 805, Business Combinations (“ASC 805”) and these acquisitions are recorded at fair value, allocated to land, building and the existing leases based upon their fair values at the date of acquisition, with acquisition costs expensed as incurred. In making estimates of fair values for purposes of allocating purchase price, the Company utilizes its own market knowledge and published market data. The estimated fair value of acquired in-place leases represents the expected costs the Company would have incurred to lease the property at the date of acquisition. Each portfolio of acquired property is recorded as a separate business combination. | |||||||||||
Land, buildings and improvements are recorded at cost. Buildings and improvements are depreciated over estimated useful lives of approximately 27.5 years using the straight-line method. Lease origination costs are amortized over the average remaining term of the in-place leases which is generally less than one year. Maintenance and repair costs are charged to expenses as incurred. | |||||||||||
The Company assesses the impairment of investments in real estate, whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company has not recognized any impairment losses for the years ended December 31, 2012 and 2013. | |||||||||||
Reclassifications | |||||||||||
Certain amounts for 2012 have been reclassified to conform to the current year’s presentation. | |||||||||||
RESIDENTIAL_HOMES_NET
RESIDENTIAL HOMES, NET | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Residential Homes [Abstract] | ||||||||||||||||||||
Residential Homes [Text Block] | NOTE 2. RESIDENTIAL HOMES, NET | |||||||||||||||||||
Reven Housing Georgia, LLC (a wholly owned subsidiary of Reven Housing REIT, Inc.) completed the acquisition of nine residential homes. The nine homes are located in various cities in Georgia. Five of these homes were purchased in 2012 and the remaining four homes were purchased on January 10, 2013. | ||||||||||||||||||||
On October 4, 2013, Reven Housing Texas, LLC (a wholly owned subsidiary of Reven Housing REIT, Inc.) entered into a purchase and sale agreement for the purchase of a portfolio of 170 single family homes located in the Houston, Texas metropolitan area. On October 31, 2013, the Company closed and completed the purchase of 150 of the homes at a total cost of $11,592,532 excluding closing expenses (Note 10). | ||||||||||||||||||||
Residential homes purchased by the Company are recorded at cost. The Homes are depreciated over the estimated useful lives using the straight-line method for financial reporting purposes. The estimated useful life for the residential homes is estimated to be 27.5 years. The Homes are leased on short-term leases expiring on various dates over the coming year. | ||||||||||||||||||||
The following table represents the Company’s net investment in the homes and allocates purchase price in accordance with ASC 805: | ||||||||||||||||||||
Investment | ||||||||||||||||||||
Number | Residential | Total | Accumulated | In Real Estate | ||||||||||||||||
Purchased during 2012: | of Homes | Land | Homes | Investment | Depreciation | Net | ||||||||||||||
Georgia | 5 | $ | 67,019 | $ | 276,391 | $ | 343,410 | $ | -1,400 | $ | 342,010 | |||||||||
Total at December 31, 2012 | 5 | 67,019 | 276,391 | 343,410 | -1,400 | 342,010 | ||||||||||||||
Purchased during 2013: | ||||||||||||||||||||
Georgia | 4 | 52,631 | 210,797 | 263,428 | -16,800 | 246,628 | ||||||||||||||
Texas | 150 | 2,394,359 | 9,198,173 | 11,592,532 | -55,750 | 11,536,782 | ||||||||||||||
Total at December 31, 2013 | 159 | $ | 2,514,009 | $ | 9,685,361 | $ | 12,199,370 | $ | -73,950 | $ | 12,125,420 | |||||||||
Net investment in homes, as shown above, consists of the following as of December 31: | ||||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
Number | Investment | Number | Investment | |||||||||||||||||
of Homes | Net | of Homes | Net | |||||||||||||||||
Leased | 5 | $ | 342,010 | 146 | $ | 11,228,018 | ||||||||||||||
Vacant | - | - | 13 | 897,402 | ||||||||||||||||
5 | $ | 342,010 | 159 | $ | 12,125,420 | |||||||||||||||
CONVERTIBLE_NOTES_PAYABLE
CONVERTIBLE NOTES PAYABLE | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Convertible Notes Payable [Abstract] | |||||||||
Convertible Notes Payable [Text Block] | NOTE 3. CONVERTIBLE NOTES PAYABLE | ||||||||
The Company issued convertible promissory notes (the “Notes”) to certain accredited investors, shareholders, and officers in the aggregate principal amount of $1,054,352. Of this total, $500,000 was issued on January 3, 2013 in order to fund the four residential homes purchased in January 2013 and to pay operating expenses. The maturity date for the Notes was the earlier of December 31, 2013, or upon the Company raising $5 million or more of equity capital. The Notes bore interest at a rate of 10 percent per annum payable in full on the maturity date and were unsecured. Upon the Company successfully raising additional capital, the Notes could be exchanged by the holders for such securities of the Company at the same price and on the same terms and conditions being offered to the other investors in such financing, and the principal and accrued interest under the Notes could be applied towards the purchase price of such security. The Notes could be prepaid in whole or in part at the Company’s option without penalty. | |||||||||
Of the total Notes, $652,176 were issued to an officer, $350,000 were issued to accredited investors, and $52,176 to shareholders. | |||||||||
On September 27, 2013, in connection with the Company’s sale of common stock through a private placement (Note 5), convertible notes with a principal balance of $902,176 were exchanged for 4,510,880 shares of common stock at a conversion price of $0.20 per share and retired. Also in connection with the private placement, notes with a principal balance of $152,176 were paid in full with cash payments. Additionally, the Company paid accrued interest of $82,071 on all the convertible notes with cash payments. | |||||||||
Warrant Issuance and Note Conversion Feature | |||||||||
In connection with the issuance of the above Notes, the Company also issued to the investors 5-year detachable warrants exercisable for shares of the Company’s common stock (the “Warrants”). The exercise price of the Warrants is at the same price per share as the price of the equity securities sold to investors in the qualified equity financing, and each Warrant provides for 100% warrant coverage on the principal amount of the related Note. | |||||||||
The fair value of the Warrants and debt beneficial conversion feature were determined using the Monte-Carlo simulation valuation model that uses assumptions for expected volatility, expected dividends, and the risk-free interest rate. Expected volatilities were based on weighted averages of the selected peer group of thirteen companies as the Company has limited trading history and were estimated over the expected term of the Warrants. The risk-free rate was based on the U.S. Treasury yield curve at the date of issuance for the period of the expected term. | |||||||||
Accordingly, the fair value of the proceeds attributable to Warrants of $309,892 and the debt beneficial conversion feature of $309,891 totaling $619,783, was recorded as an increase in additional paid-in capital and as a corresponding discount to the convertible notes payable. Of the total debt discount of $619,783, $327,863 and $291,920 was recorded to additional paid-in capital and debt discount during 2012 and 2013, respectively. The discount was amortized over the term of the convertible notes payable using the interest method. In connection with the Company’s private placement of common stock and the corresponding conversion and retirement of the Notes, all remaining discount was recognized as an expense as of September 27, 2013. Amortization of the discount amounted to $56,530 and $563,253 and is included as a separate expense on the Consolidated Statements of Operations for the years ended December 31, 2012 and 2013, respectively. | |||||||||
A summary of the assumptions used to value the warrants and the beneficial conversion feature are as follows: | |||||||||
2012 | 2013 | ||||||||
Risk -free interest rate | 0.79 | % | 1.4 | % | |||||
Expected stock volatility | 48 | % | 47 | % | |||||
Time to expiration (years) | 5 | 5 | |||||||
Fair value of common stock | $ | 1 | $ | 0.2 | |||||
Expected dividends | $ | 0 | $ | 0 | |||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Payable and Accrued Liabilities [Abstract] | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 4. ACCOUNTS PAYABLE AND ACCRUED EXPENSES | |||||||
At December 31, 2012 and 2013, accounts payable and accrued expenses consisted of the following: | ||||||||
2012 | 2013 | |||||||
Accounts payable | $ | - | $ | 89,666 | ||||
Accrued property taxes | - | 196,141 | ||||||
Accrued legal fees | 119,978 | 61,372 | ||||||
$ | 119,978 | $ | 347,179 | |||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | |
Stockholders Equity Note Disclosure [Text Block] | NOTE 5. STOCKHOLDERS’ EQUITY |
On September 27, 2013, the Company entered into a stock purchase agreement with King APEX Group II, Ltd. and King APEX Group III, Ltd., which are funds managed by Allied Fortune (“HK”) Management Limited, a Hong Kong based funds management company, in connection with a private placement of up to 125,000,000 shares of its common stock at a price of $0.20 per share, for aggregate gross proceeds of up to $25 million. Under the terms of this agreement, a total of 75,000,000 shares at a gross price of $15,000,000 were purchased through December 31, 2013. Cash proceeds after offering expenses were $14,539,082, plus an additional non-cash expense of $50,000 representing additional deferred costs relating to the private placement resulting in net proceeds of $14,489,082. | |
In connection with the private placement of the Company’s common stock pursuant to the stock purchase agreement mentioned above, the Company also entered into a convertible promissory note conversion agreement on September 27, 2013 with certain holders of its outstanding 10% convertible promissory notes. Pursuant to the note conversion agreement, the Company agreed to issue shares of its common stock to those holders of the notes desiring to convert their convertible notes at the conversion price of $0.20 per share for the cancellation of the outstanding principal amounts under those notes. Certain holders elected to receive, and the Company agreed to make, cash payments on the outstanding principal amounts on their notes in lieu of shares of common stock. In addition, the Company agreed to make cash payments on all the accrued interest due under the notes. As a result of the above, the Company issued 4,510,880 shares and closed on the conversion of $902,176 of aggregate principal of the Company’s outstanding notes. The remaining $152,176 of outstanding principal and all of the accrued interest under the notes of $82,071 have been repaid in full. Additionally in connection with the Company’s private placement, the number of Warrants issued and outstanding to the note holders was set at 5,271,760 shares at an exercise price of $0.20 per share. The warrants will expire on September 27, 2018, if not exercised prior to that date. | |
As a result of the issuance of the 75,000,000 shares to King APEX Group II, Ltd. and King Apex Group III, Ltd., the two funds under common control collectively own approximately 85.4% of the Company’s outstanding voting shares and Mr. Carpenter now owns approximately 9.5% of the Company’s outstanding voting shares. | |
On October 30, 2013, the Company amended its Articles of Incorporation to increase the number of authorized shares to 600,000,000 from 100,000,000. | |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Income Tax Disclosure [Text Block] | NOTE 6. INCOME TAXES | |||||||
The Company plans to elect REIT status when it meets all requirements allowing it to do so. At that time, the Company would generally not be subject to income taxes assuming it complied with the specific distribution rules applicable to REITs. | ||||||||
Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and expected carry-forwards are available to reduce taxable income. The Company records a valuation allowance when, in the opinion of management, it is more likely than not, that the Company will not realize some or all deferred tax assets. As the achievement of required future taxable income is uncertain, the Company required a valuation allowance at December 31, 2012 and 2013. The valuation allowance increased by $226,000 and $192,000 during 2012 and 2013, respectively. At December 31, 2013 the Company had federal and state net operating loss carry-forwards of approximately $675,000 and $673,000, respectively. The federal and state tax loss carry-forwards will begin to expire in 2032, unless previously utilized. | ||||||||
Significant components of the Company’s deferred tax assets are as follows: | ||||||||
2012 | 2013 | |||||||
Deferred tax assets: | ||||||||
Start-up and acquisition costs | $ | 20,000 | $ | 180,000 | ||||
Net operating losses | 210,000 | 256,000 | ||||||
230,000 | 436,000 | |||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | - | -14,000 | ||||||
Total | 230,000 | 422,000 | ||||||
Valuation allowance | -230,000 | -422,000 | ||||||
Net deferred tax assets | $ | - | $ | - | ||||
Pursuant to Internal Revenue Code Section 382, use of the Company’s net operating loss carry-forwards may be limited if a cumulative change in ownership of more than 50% occurs within a three year period. Management believes that such an ownership change had occurred but has not performed a study of the limitations on the net operating losses. | ||||||||
Expected income tax by applying the statutory income tax rate to net loss differs from the actual tax provision as follows: | ||||||||
2012 | 2013 | |||||||
Tax computed at the federal statutory rate | $ | -210,000 | $ | -364,000 | ||||
State taxes | -16,000 | -62,000 | ||||||
Permanent differences | - | 225,000 | ||||||
Other | - | 9,000 | ||||||
Valuation allowance | 226,000 | 192,000 | ||||||
Total provision | $ | - | $ | - | ||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 7. RELATED PARTY TRANSACTIONS |
At December 31, 2012, the Company had convertible notes payable outstanding to Chad M. Carpenter of $252,176. At September 27, 2013, the Company had convertible notes payable outstanding to Chad M. Carpenter and Reven Capital, LLC, an entity wholly owned by Mr. Carpenter, in the amount of $652,176, that were converted to Company common stock as described more fully in Notes 3 and 5. | |
At December 31, 2012, the Company had convertible notes payable outstanding to certain other shareholders of the Company in the amount of $52,176. These notes were paid off or converted to Company common stock on September 27, 2013 as described more fully in Notes 3 and 5. | |
At December 31, 2012, the Company owed Reven Capital, LLC $266,877, for advances made for operating expenses. Reven Capital, LLC is wholly-owned by Chad M. Carpenter. The Company sub-leases office space on a month-to-month basis from Reven Capital, LLC and reimburses Reven Capital for Company expenses paid and previously advanced by Reven Capital, LLC. The advances are due on demand, unsecured and are non-interest bearing. During the year ended December 31, 2013, the Company incurred an additional $148,438 of expenses that were paid by Reven Capital, LLC. All of these advances were paid off in full during the year ending December 31, 2013, for total payments of $415,315. | |
For the year ended December 31, 2012, the Company paid $50,000 for consulting services to a company in which a Board of Director member of the Company is the Senior Managing Principal which was included in deferred stock issuance costs on the accompanying consolidated balance sheet as of December 31, 2012 and was charged against additional paid-in capital upon the closing of the private placement on September 27, 2013. | |
LEASE_INCOME
LEASE INCOME | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Lease Income [Abstract] | ||||||||
Lease Income [Text Block] | NOTE 8. LEASE INCOME | |||||||
The Company generally rents properties under non-cancelable lease agreements with a term of one year. Future minimum rental revenues under leases existing on properties as of December 31, 2013 are expected to be as follows: | ||||||||
2014 | $ | 535,301 | ||||||
2015 | 7,895 | |||||||
$ | 543,196 | |||||||
The Company operates in two states. The breakdown of lease income between the two states for the years ending December 31, 2012 and 2013 are as follows: | ||||||||
2012 | 2013 | |||||||
Rent | Rent | |||||||
Revenue | Revenue | |||||||
Georgia | $ | 6,750 | $ | 70,716 | ||||
Texas | - | 271,527 | ||||||
$ | 6,750 | $ | 342,243 | |||||
COMMITMENTS
COMMITMENTS | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 9. COMMITMENTS |
Property Management Agreement | |
The Company has entered into property management agreements with unrelated property management companies in which the Company will pay management fees ranging from six to eight percent of gross rental receipts. | |
SUBSEQUENT_EVENT
SUBSEQUENT EVENT | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 10. SUBSEQUENT EVENT |
On January 31, 2014, a wholly owned subsidiary of the Company closed on an additional 18 single family homes as part of the October 31, 2013 purchase (Note 2), located in the Houston, Texas metropolitan area. The purchase price of the investment in the 18 homes, excluding acquisition and closing costs, totaled $1,560,836. | |
ORGANIZATION_OPERATIONS_AND_SU1
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Restatement adjustments [Policy Text Block] | Restatement of Consolidated Financial Statements | ||||||||||
In connection with preparing the annual financial information for the year ending December 31, 2014, prior period errors were identified which affected the annual period ended December 31, 2013. These errors occurred in the Company’s accounting for the acquisition of certain real property portfolios of single family homes included in investment in real estate and involve acquisition costs that were improperly capitalized, and the reallocation of acquisition values from building and improvements to lease origination costs. These errors require the Company to restate previously reported financial results contained in this report. The effects of these prior period errors in the consolidated financial statements are as follows: | |||||||||||
December 31, 2013 | |||||||||||
As | As previously | ||||||||||
Restated | Reported | Adjustment | |||||||||
Consolidated Balance Sheet | |||||||||||
Buildings and improvements | $ | 9,685,361 | $ | 10,064,626 | $ | -379,265 | |||||
Accumulated depreciation | $ | -73,950 | $ | -76,200 | $ | 2,250 | |||||
Investment in real estate, net | $ | 12,125,420 | $ | 12,502,435 | $ | -377,015 | |||||
Lease origination costs | $ | 75,038 | $ | - | $ | 75,038 | |||||
Total Assets | $ | 14,531,149 | $ | 14,833,126 | $ | -301,977 | |||||
Accumulated deficit | $ | -2,014,056 | $ | -1,712,079 | $ | -301,977 | |||||
Total Stockholders' Equity | $ | 14,026,985 | $ | 14,328,962 | $ | -301,977 | |||||
Total Liabilities and Stockholders' Equity | $ | 14,531,149 | $ | 14,833,126 | $ | -301,977 | |||||
Consolidated Statement of Operations | |||||||||||
Real estate acquisition costs | $ | 279,965 | $ | - | $ | 279,965 | |||||
Depreciation and amortization | $ | 96,812 | $ | 74,800 | $ | 22,012 | |||||
Total operating expenses | $ | 1,714,940 | $ | 1,412,963 | $ | 301,977 | |||||
Net loss | $ | -1,372,697 | $ | -1,070,720 | $ | -301,977 | |||||
Net loss per share | $ | -0.05 | $ | -0.04 | $ | -0.01 | |||||
Consolidated Statement of Cash Flows | |||||||||||
Net loss | $ | -1,372,697 | $ | -1,070,720 | $ | -301,977 | |||||
Depreciation and amortization | $ | 96,812 | $ | 74,800 | $ | 22,012 | |||||
Net cash used in operating activities | $ | -767,899 | $ | -336,806 | $ | -431,093 | |||||
Acquisitions of investments in real estate | $ | -11,855,960 | $ | -12,235,225 | $ | 379,265 | |||||
Lease origination costs | $ | -99,300 | $ | - | $ | -99,300 | |||||
Net cash used in investing activities | $ | -11,955,260 | $ | -12,386,353 | $ | 431,093 | |||||
Discontinued Operations, Policy [Policy Text Block] | Discontinued Operations | ||||||||||
On July 2, 2012, the Company discontinued operations related to the Bureau of Fugitive Recovery, Inc. upon Chad M. Carpenter becoming the majority shareholder of the Company. Accordingly, the former operations are classified as discontinued operations in the accompanying consolidated statements of operations. | |||||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Accounting | ||||||||||
The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”). | |||||||||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation | ||||||||||
The accompanying financial statements consolidate the accounts of the Company and its wholly-owned subsidiaries, Reven Housing Georgia, LLC and Reven Housing Texas, LLC. All significant inter-company transactions have been eliminated in consolidation. | |||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements | ||||||||||
The Company has adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company. | |||||||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents | ||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents. | |||||||||||
Advances to Property Manager [Policy Text Block] | Rents and Other Receivables | ||||||||||
Rents and other receivables represent the amount of rent receivables, security deposits and net rental funds which are held by the property manager on behalf of the Company, net of any allowance for amounts deemed uncollectible. | |||||||||||
Deferred Stock Issuance Costs [Policy Text Block] | Deferred Stock Issuance Costs | ||||||||||
Deferred stock issuance costs represent amounts paid for consulting services and other offering expenses in conjunction with the future raising of additional capital to be performed within one year. These costs are charged against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. | |||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Risk | ||||||||||
Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash. The Company’s cash in excess of the Federal Deposit Insurance Corporation insured limits at December 31, 2013, were approximately $1,911,000. The Company does not believe it is exposed to any significant credit risk due to the quality nature of the financial instruments in which the money is held. | |||||||||||
Warrant Issuance and Note Conversion Feature [Policy Text Block] | Warrant Issuance and Note Conversion Feature | ||||||||||
The Company accounts for the proceeds from the issuance of convertible notes payable with detachable stock purchase warrants and embedded conversion features in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 470-20, Debt with Conversion and Other Options. Under FASB ASC 470-20, the proceeds from the issuance of a debt instrument with detachable stock purchase warrants shall be allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion of the proceeds allocated to the warrants is accounted for as additional paid-in capital and the remaining proceeds are allocated to the debt instrument which resulted in a discount to debt which is amortized and charged as interest expense over the term of the note agreement. Additionally, pursuant to FASB ASC 470-20, the intrinsic value of the embedded conversion feature of the convertible notes payable is included in the discount to debt and amortized and charged to interest expense over the life of the note agreement. | |||||||||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition | ||||||||||
Property is leased under rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis. | |||||||||||
Income Tax, Policy [Policy Text Block] | Income Taxes | ||||||||||
The Company intends to elect to be taxed as a REIT, as defined in the Internal Revenue Code, upon meeting the necessary requirements. Management believes that the Company will be able to satisfy the requirements for qualification as a REIT. Accordingly, the Company is not expecting to be subject to federal income tax, provided that it qualifies as a REIT and distributions to the stockholders equal or exceed REIT taxable income. | |||||||||||
However, qualification and taxation as a REIT depend upon the Company’s ability to meet the various qualification tests imposed under the Internal Revenue Code related to the percentage of income that are earned from specified sources, the percentage of assets that fall within specified categories, the diversity of capital stock ownership, and the percentage of earnings that are distributed. Accordingly, no assurance can be given that the Company will be organized or be able to operate in a manner so as to qualify or remain qualified as a REIT. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for four subsequent tax years. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes. | |||||||||||
The tax benefit of uncertain tax positions is recognized only if it is “more likely than not” that the tax position will be sustained, based solely on its technical merits, with the taxing authority having full knowledge of relevant information. The measurement of a tax benefit for an uncertain tax position that meets the “more likely than not” threshold is based on a cumulative probability model under which the largest amount of tax benefit recognized is the amount with a greater than 50% likelihood of being realized upon ultimate settlement with the taxing authority, having full knowledge of all the relevant information. As of December 31, 2012 and 2013, the Company had no unrecognized tax benefits. The Company does not anticipate a significant change in the total amount of unrecognized tax benefits during 2014. | |||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Incentive Compensation Plan | ||||||||||
During 2012, the Company established the 2012 Incentive Compensation Plan, which was subsequently amended and restated in December 2013 (“2012 Plan”). The 2012 Plan allows for the grant of options and other awards representing up to 33,000,000 shares of the Company’s common stock. Such awards may be granted to officers, directors, employees, consultants and other persons who provide services to the Company or any related entity. Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event longer than ten years. No awards have been granted as of December 31, 2013. | |||||||||||
Earnings Per Share, Policy [Policy Text Block] | Net Loss Per Share | ||||||||||
Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share. For the year ended December 31, 2012 there were no shares that were potentially dilutive. For the year ended December 31, 2013, potentially dilutive securities excluded from the calculations were 5,271,760 shares issuable upon exercise of outstanding warrants granted in conjunction with the convertible notes. | |||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments | ||||||||||
The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value. | |||||||||||
Security Deposits [Policy Text Block] | Security Deposits | ||||||||||
Security deposits represent amounts deposited by tenants at the inception of the lease | |||||||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates | ||||||||||
The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and reported amounts of expenses for the periods presented. Accordingly, actual results could differ from those estimates. Significant estimates include assumptions used to value warrants and conversion features associated with convertible notes payable (Note 3). Further, significant estimates include assumptions used to determine the allocation of purchase prices of property acquisitions (Note 1). | |||||||||||
Property Acquisitions [Policy Text Block] | Investments in Real Estate | ||||||||||
The Company accounts for its investments in real estate as business combinations under the guidance of FASB ASC Topic 805, Business Combinations (“ASC 805”) and these acquisitions are recorded at fair value, allocated to land, building and the existing leases based upon their fair values at the date of acquisition, with acquisition costs expensed as incurred. In making estimates of fair values for purposes of allocating purchase price, the Company utilizes its own market knowledge and published market data. The estimated fair value of acquired in-place leases represents the expected costs the Company would have incurred to lease the property at the date of acquisition. Each portfolio of acquired property is recorded as a separate business combination. | |||||||||||
Land, buildings and improvements are recorded at cost. Buildings and improvements are depreciated over estimated useful lives of approximately 27.5 years using the straight-line method. Lease origination costs are amortized over the average remaining term of the in-place leases which is generally less than one year. Maintenance and repair costs are charged to expenses as incurred. | |||||||||||
The Company assesses the impairment of investments in real estate, whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company has not recognized any impairment losses for the years ended December 31, 2012 and 2013. | |||||||||||
Reclassification, Policy [Policy Text Block] | Reclassifications | ||||||||||
Certain amounts for 2012 have been reclassified to conform to the current year’s presentation. | |||||||||||
ORGANIZATION_OPERATIONS_AND_SU2
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Accounting Policies [Abstract] | |||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The effects of these prior period errors in the consolidated financial statements are as follows: | ||||||||||
December 31, 2013 | |||||||||||
As | As previously | ||||||||||
Restated | Reported | Adjustment | |||||||||
Consolidated Balance Sheet | |||||||||||
Buildings and improvements | $ | 9,685,361 | $ | 10,064,626 | $ | -379,265 | |||||
Accumulated depreciation | $ | -73,950 | $ | -76,200 | $ | 2,250 | |||||
Investment in real estate, net | $ | 12,125,420 | $ | 12,502,435 | $ | -377,015 | |||||
Lease origination costs | $ | 75,038 | $ | - | $ | 75,038 | |||||
Total Assets | $ | 14,531,149 | $ | 14,833,126 | $ | -301,977 | |||||
Accumulated deficit | $ | -2,014,056 | $ | -1,712,079 | $ | -301,977 | |||||
Total Stockholders' Equity | $ | 14,026,985 | $ | 14,328,962 | $ | -301,977 | |||||
Total Liabilities and Stockholders' Equity | $ | 14,531,149 | $ | 14,833,126 | $ | -301,977 | |||||
Consolidated Statement of Operations | |||||||||||
Real estate acquisition costs | $ | 279,965 | $ | - | $ | 279,965 | |||||
Depreciation and amortization | $ | 96,812 | $ | 74,800 | $ | 22,012 | |||||
Total operating expenses | $ | 1,714,940 | $ | 1,412,963 | $ | 301,977 | |||||
Net loss | $ | -1,372,697 | $ | -1,070,720 | $ | -301,977 | |||||
Net loss per share | $ | -0.05 | $ | -0.04 | $ | -0.01 | |||||
Consolidated Statement of Cash Flows | |||||||||||
Net loss | $ | -1,372,697 | $ | -1,070,720 | $ | -301,977 | |||||
Depreciation and amortization | $ | 96,812 | $ | 74,800 | $ | 22,012 | |||||
Net cash used in operating activities | $ | -767,899 | $ | -336,806 | $ | -431,093 | |||||
Acquisitions of investments in real estate | $ | -11,855,960 | $ | -12,235,225 | $ | 379,265 | |||||
Lease origination costs | $ | -99,300 | $ | - | $ | -99,300 | |||||
Net cash used in investing activities | $ | -11,955,260 | $ | -12,386,353 | $ | 431,093 | |||||
RESIDENTIAL_HOMES_NET_Tables
RESIDENTIAL HOMES, NET (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Residential Homes [Abstract] | ||||||||||||||||||||
Real Estate Investment Financial Statements, Disclosure [Table Text Block] | The following table represents the Company’s net investment in the homes and allocates purchase price in accordance with ASC 805: | |||||||||||||||||||
Investment | ||||||||||||||||||||
Number | Residential | Total | Accumulated | In Real Estate | ||||||||||||||||
Purchased during 2012: | of Homes | Land | Homes | Investment | Depreciation | Net | ||||||||||||||
Georgia | 5 | $ | 67,019 | $ | 276,391 | $ | 343,410 | $ | -1,400 | $ | 342,010 | |||||||||
Total at December 31, 2012 | 5 | 67,019 | 276,391 | 343,410 | -1,400 | 342,010 | ||||||||||||||
Purchased during 2013: | ||||||||||||||||||||
Georgia | 4 | 52,631 | 210,797 | 263,428 | -16,800 | 246,628 | ||||||||||||||
Texas | 150 | 2,394,359 | 9,198,173 | 11,592,532 | -55,750 | 11,536,782 | ||||||||||||||
Total at December 31, 2013 | 159 | $ | 2,514,009 | $ | 9,685,361 | $ | 12,199,370 | $ | -73,950 | $ | 12,125,420 | |||||||||
Schedule of Real Estate Properties [Table Text Block] | Net investment in homes, as shown above, consists of the following as of December 31: | |||||||||||||||||||
2012 | 2013 | |||||||||||||||||||
Number | Investment | Number | Investment | |||||||||||||||||
of Homes | Net | of Homes | Net | |||||||||||||||||
Leased | 5 | $ | 342,010 | 146 | $ | 11,228,018 | ||||||||||||||
Vacant | - | - | 13 | 897,402 | ||||||||||||||||
5 | $ | 342,010 | 159 | $ | 12,125,420 | |||||||||||||||
CONVERTIBLE_NOTES_PAYABLE_Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Convertible Notes Payable1 [Abstract] | |||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | A summary of the assumptions used to value the warrants and the beneficial conversion feature are as follows: | ||||||||
2012 | 2013 | ||||||||
Risk -free interest rate | 0.79 | % | 1.4 | % | |||||
Expected stock volatility | 48 | % | 47 | % | |||||
Time to expiration (years) | 5 | 5 | |||||||
Fair value of common stock | $ | 1 | $ | 0.2 | |||||
Expected dividends | $ | 0 | $ | 0 | |||||
ACCOUNTS_PAYABLE_AND_ACCRUED_E1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts Payable and Accrued Liabilities [Abstract] | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | At December 31, 2012 and 2013, accounts payable and accrued expenses consisted of the following: | |||||||
2012 | 2013 | |||||||
Accounts payable | $ | - | $ | 89,666 | ||||
Accrued property taxes | - | 196,141 | ||||||
Accrued legal fees | 119,978 | 61,372 | ||||||
$ | 119,978 | $ | 347,179 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Significant components of the Company’s deferred tax assets are as follows: | |||||||
2012 | 2013 | |||||||
Deferred tax assets: | ||||||||
Start-up and acquisition costs | $ | 20,000 | $ | 180,000 | ||||
Net operating losses | 210,000 | 256,000 | ||||||
230,000 | 436,000 | |||||||
Deferred tax liabilities: | ||||||||
Depreciation and amortization | - | -14,000 | ||||||
Total | 230,000 | 422,000 | ||||||
Valuation allowance | -230,000 | -422,000 | ||||||
Net deferred tax assets | $ | - | $ | - | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Expected income tax by applying the statutory income tax rate to net loss differs from the actual tax provision as follows: | |||||||
2012 | 2013 | |||||||
Tax computed at the federal statutory rate | $ | -210,000 | $ | -364,000 | ||||
State taxes | -16,000 | -62,000 | ||||||
Permanent differences | - | 225,000 | ||||||
Other | - | 9,000 | ||||||
Valuation allowance | 226,000 | 192,000 | ||||||
Total provision | $ | - | $ | - | ||||
LEASE_INCOME_Tables
LEASE INCOME (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Lease Income [Abstract] | ||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | The Company generally rents properties under non-cancelable lease agreements with a term of one year. Future minimum rental revenues under leases existing on properties as of December 31, 2013 are expected to be as follows: | |||||||
2014 | $ | 535,301 | ||||||
2015 | 7,895 | |||||||
$ | 543,196 | |||||||
schedule of lease income [Table Text Block] | The Company operates in two states. The breakdown of lease income between the two states for the years ending December 31, 2012 and 2013 are as follows: | |||||||
2012 | 2013 | |||||||
Rent | Rent | |||||||
Revenue | Revenue | |||||||
Georgia | $ | 6,750 | $ | 70,716 | ||||
Texas | - | 271,527 | ||||||
$ | 6,750 | $ | 342,243 | |||||
ORGANIZATION_OPERATIONS_AND_SU3
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Consolidated Balance Sheet | |||
Buildings and improvements | $9,685,361 | $276,391 | |
Accumulated depreciation | 73,950 | 1,400 | |
Investment in real estate, net | 12,125,420 | 342,010 | |
Lease origination costs | 75,038 | 0 | |
Total Assets | 14,531,149 | 401,148 | |
Accumulated deficit | -2,014,056 | -641,359 | |
Total Stockholders' Equity | 14,026,985 | -283,496 | -17,191 |
Total Liabilities and Stockholders' Equity | 14,531,149 | 401,148 | |
Consolidated Statement of Operations | |||
Real estate acquisition costs | 279,965 | 0 | |
Depreciation and amortization expense | 96,812 | 1,400 | |
Total operating expenses | 1,714,940 | 601,252 | |
Net loss | -1,372,697 | -594,168 | |
Net loss per share | ($0.05) | ($0.06) | |
Consolidated Statement of Cash Flows | |||
Net loss | -1,372,697 | -594,168 | |
Depreciation and amortization | 96,812 | ||
Net cash used in operating activities | -767,899 | -141,112 | |
Acquisitions of investments in real estate | -11,855,960 | ||
Lease origination costs | 99,300 | 0 | |
Net cash used in investing activities | -11,955,260 | ||
Scenario, Previously Reported [Member] | |||
Consolidated Balance Sheet | |||
Buildings and improvements | 10,064,626 | ||
Accumulated depreciation | -76,200 | ||
Investment in real estate, net | 12,502,435 | ||
Lease origination costs | 0 | ||
Total Assets | 14,833,126 | ||
Accumulated deficit | -1,712,079 | ||
Total Stockholders' Equity | 14,328,962 | ||
Total Liabilities and Stockholders' Equity | 14,833,126 | ||
Consolidated Statement of Operations | |||
Real estate acquisition costs | 0 | ||
Depreciation and amortization expense | 74,800 | ||
Total operating expenses | 1,412,963 | ||
Net loss | -1,070,720 | ||
Net loss per share | ($0.04) | ||
Consolidated Statement of Cash Flows | |||
Net loss | -1,070,720 | ||
Depreciation and amortization | 74,800 | ||
Net cash used in operating activities | -336,806 | ||
Acquisitions of investments in real estate | -12,235,225 | ||
Lease origination costs | 0 | ||
Net cash used in investing activities | -12,386,353 | ||
Restatement Adjustment [Member] | |||
Consolidated Balance Sheet | |||
Buildings and improvements | -379,265 | ||
Accumulated depreciation | 2,250 | ||
Investment in real estate, net | -377,015 | ||
Lease origination costs | 75,038 | ||
Total Assets | -301,977 | ||
Accumulated deficit | -301,977 | ||
Total Stockholders' Equity | -301,977 | ||
Total Liabilities and Stockholders' Equity | -301,977 | ||
Consolidated Statement of Operations | |||
Real estate acquisition costs | 279,965 | ||
Depreciation and amortization expense | 22,012 | ||
Total operating expenses | 301,977 | ||
Net loss | -301,977 | ||
Net loss per share | ($0.01) | ||
Consolidated Statement of Cash Flows | |||
Net loss | -301,977 | ||
Depreciation and amortization | 22,012 | ||
Net cash used in operating activities | -431,093 | ||
Acquisitions of investments in real estate | 379,265 | ||
Lease origination costs | -99,300 | ||
Net cash used in investing activities | $431,093 |
ORGANIZATION_OPERATIONS_AND_SU4
ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2013 | Jul. 02, 2012 | Dec. 31, 2012 | |
Accounting Policies [Line Items] | |||
Entity Incorporation, State Country Name | Colorado | ||
Entity Incorporation, Date of Incorporation | 26-Apr-95 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Description | Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 5,271,760 | ||
Cash, FDIC Insured Amount | $1,911,000 | ||
Incentive Compensation Plan 2012 [Member] | |||
Accounting Policies [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 33,000,000 | ||
Chad M Carpenter [Member] | |||
Accounting Policies [Line Items] | |||
Common Stock Purchased During Period | 5,999,300 | ||
Treasury Stock, Shares, Acquired | 1,650,000 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 71.80% |
RESIDENTIAL_HOMES_NET_Details
RESIDENTIAL HOMES, NET (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Numbers | Numbers | |
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | 159 | 5 |
Real Estate Investment Property, at Cost | $12,199,370 | $343,410 |
Total Investment | 12,199,370 | 343,410 |
Accumulated Depreciation | -73,950 | -1,400 |
Investment In Real Estate Net | 12,125,420 | 342,010 |
Georgia [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | 4 | 5 |
Total Investment | 263,428 | 343,410 |
Accumulated Depreciation | -16,800 | -1,400 |
Investment In Real Estate Net | 246,628 | 342,010 |
Texas [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | 150 | |
Total Investment | 11,592,532 | |
Accumulated Depreciation | -55,750 | |
Investment In Real Estate Net | 11,536,782 | |
Land [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Real Estate Investment Property, at Cost | 2,514,009 | 67,019 |
Land [Member] | Georgia [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Real Estate Investment Property, at Cost | 52,631 | 67,019 |
Land [Member] | Texas [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Real Estate Investment Property, at Cost | 2,394,359 | |
Residential Homes [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Real Estate Investment Property, at Cost | 9,685,361 | 276,391 |
Residential Homes [Member] | Georgia [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Real Estate Investment Property, at Cost | 210,797 | 276,391 |
Residential Homes [Member] | Texas [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Real Estate Investment Property, at Cost | $9,198,173 |
RESIDENTIAL_HOMES_NET_Details_
RESIDENTIAL HOMES, NET (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Numbers | Numbers | |
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | 159 | 5 |
Investment Net | $12,125,420 | $342,010 |
Leased [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | 146 | 5 |
Investment Net | 11,228,018 | 342,010 |
Vacant [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Number of Homes | 13 | 0 |
Investment Net | $897,402 | $0 |
RESIDENTIAL_HOMES_NET_Details_1
RESIDENTIAL HOMES, NET (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
RESIDENTIAL HOMES, NET [Line Items] | ||
Real Estate Investment Property, at Cost | $12,199,370 | $343,410 |
Residential Homes [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |
Real Estate Investment Property, at Cost | 9,685,361 | 276,391 |
Reven Housing Texas, LLC [Member] | ||
RESIDENTIAL HOMES, NET [Line Items] | ||
Real Estate Investment Property, at Cost | $11,592,532 |
CONVERTIBLE_NOTES_PAYABLE_Deta
CONVERTIBLE NOTES PAYABLE (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | ||
Risk -free interest rate | 1.40% | 0.79% |
Expected stock volatility | 47.00% | 48.00% |
Time to expiration (years) | 5 years | 5 years |
Fair value of common stock | $0.20 | $1 |
Expected dividends | $0 | $0 |
CONVERTIBLE_NOTES_PAYABLE_Deta1
CONVERTIBLE NOTES PAYABLE (Details Textual) (USD $) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | Sep. 27, 2013 | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Debt Instrument, Maturity Date | 31-Dec-13 | ||
Increase in Equity Capital | $5,000,000 | ||
Proceeds from Issuance of Warrants | 309,892 | ||
Debt Instrument, Convertible, Beneficial Conversion Feature | 309,891 | ||
Warrants and Rights Outstanding | 619,783 | ||
Amortization of Debt Discount (Premium) | 563,253 | 56,530 | |
Warrant Coverage Percentage | 100.00% | ||
Debt Discount For Allocation Of Proceeds To Warrants And Beneficial Conversion Feature Of Debt | 291,920 | 327,863 | |
Warrant [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Debt Discount For Allocation Of Proceeds To Warrants And Beneficial Conversion Feature Of Debt | 291,920 | 327,863 | |
Promissory Note Conversion Agreement [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Convertible Notes Payable, Current | 902,176 | ||
Stock Issued During Period, Shares, New Issues | 4,510,880 | ||
Debt Instrument, Convertible, Conversion Price | $0.20 | ||
Long-term Debt, Gross | 152,176 | ||
Debt Instrument, Increase, Accrued Interest | 82,071 | ||
Officer [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Convertible Notes Payable, Current | 652,176 | ||
Shareholders [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Convertible Notes Payable, Current | 52,176 | 52,176 | |
Accredited Investors [Members] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Debt Instrument, Annual Principal Payment | 1,054,352 | ||
Debt Instrument, Interest Rate, Effective Percentage | 10.00% | ||
Convertible Notes Payable, Current | 350,000 | ||
Chad M Carpenter [Member] | |||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |||
Convertible Notes Payable, Current | $652,176 |
ACCOUNTS_PAYABLE_AND_ACCRUED_E2
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts Payable And Accrued Expenses [Line Items] | ||
Accounts payable | $89,666 | $0 |
Accrued property taxes | 196,141 | 0 |
Accrued legal fees | 61,372 | 119,978 |
Accounts payable and accrued expenses | $347,179 | $119,978 |
STOCKHOLDERS_EQUITY_Details_Te
STOCKHOLDERS' EQUITY (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | |
Sep. 27, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
STOCKHOLDERSb EQUITY [Line Items] | |||
Warrants To Purchase Common Stock | 5,271,760 | ||
Share Price | $0.20 | $1 | |
Stock Issued During Period, Value, New Issues | $14,489,082 | ||
Deferred Costs Of Common Stock Issuance | 50,000 | 0 | |
Proceeds from Issuance of Common Stock | 14,539,082 | 0 | |
Convertible Notes Payable | 0 | 128,746 | |
Purchase Of Common Stock Price Per Share | $0.20 | ||
Investment Warrants Expiration Date | 27-Sep-18 | ||
Common Stock, Shares Authorized | 600,000,000 | 600,000,000 | |
Maximum [Member] | |||
STOCKHOLDERSb EQUITY [Line Items] | |||
Common Stock, Shares Authorized | 600,000,000 | ||
Minimum [Member] | |||
STOCKHOLDERSb EQUITY [Line Items] | |||
Common Stock, Shares Authorized | 100,000,000 | ||
Promissory Note Conversion Agreement [Member] | |||
STOCKHOLDERSb EQUITY [Line Items] | |||
Long-term Debt, Gross | 152,176 | ||
Debt Instrument, Increase, Accrued Interest | 82,071 | ||
Stock Issued During Period, Shares, New Issues | 4,510,880 | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||
Common Stock Conversion Price | $0.20 | ||
Convertible Notes Payable | 902,176 | ||
Chad M Carpenter [Member] | |||
STOCKHOLDERSb EQUITY [Line Items] | |||
Convertible Notes Payable | 252,176 | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 9.50% | ||
King APEX Group II, Ltd. and King APEX Group III, Ltd [Member] | |||
STOCKHOLDERSb EQUITY [Line Items] | |||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 85.40% | ||
Private Placement [Member] | King APEX Group II, Ltd. and King APEX Group III, Ltd [Member] | |||
STOCKHOLDERSb EQUITY [Line Items] | |||
Stock Issued During Period, Shares, New Issues | 125,000,000 | 75,000,000 | |
Share Price | $0.20 | ||
Stock Issued During Period, Value, New Issues | 25,000,000 | 15,000,000 | |
Proceeds from Issuance of Private Placement | 14,539,082 | ||
Deferred Costs Of Common Stock Issuance | 50,000 | ||
Proceeds from Issuance of Common Stock | $14,489,082 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ||
Start-up and acquisition costs | $180,000 | $20,000 |
Net operating losses | 256,000 | 210,000 |
Deferred Tax Assets, Gross, Total | 436,000 | 230,000 |
Deferred tax liabilities: | ||
Depreciation and amortization | -14,000 | 0 |
Total | 422,000 | 230,000 |
Valuation allowance | -422,000 | -230,000 |
Net deferred tax assets | $0 | $0 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | ||
Tax computed at the federal statutory rate | ($364,000) | ($210,000) |
State taxes | -62,000 | -16,000 |
Permanent differences | 225,000 | 0 |
Other | 9,000 | 0 |
Valuation allowance | 192,000 | 226,000 |
Total provision | $0 | $0 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $675,000 | |
Federal Tax Loss Carry Forwards Expiration | expire in 2032 | |
Deferred Tax Asset sIncrease In Valuation Allowances | 192,000 | 226,000 |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $673,000 |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ||
Convertible Notes Payable | $0 | $128,746 |
Accounts Payable, Related Parties, Current | 0 | 266,877 |
Consulting Fees | 50,000 | |
Increase (Decrease) In Accounts Payable, Related Parties | -266,877 | 266,877 |
Shareholders [Member] | ||
Related Party Transaction [Line Items] | ||
Convertible Notes Payable, Current | 52,176 | 52,176 |
Chad M Carpenter [Member] | ||
Related Party Transaction [Line Items] | ||
Convertible Notes Payable | 252,176 | |
Notes Payable | 415,315 | |
Increase (Decrease) In Accounts Payable, Related Parties | 148,438 | |
Convertible Notes Payable, Current | $652,176 |
LEASE_INCOME_Details
LEASE INCOME (Details) (USD $) | Dec. 31, 2013 |
LEASE INCOME [Line Items] | |
2014 | $535,301 |
2015 | 7,895 |
Operating Leases, Future Minimum Payments Receivable, Total | $543,196 |
LEASE_INCOME_Details_1
LEASE INCOME (Details 1) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
LEASE INCOME [Line Items] | ||
Rent Revenue | $342,243 | $6,750 |
Georgia [Member] | ||
LEASE INCOME [Line Items] | ||
Rent Revenue | 70,716 | 6,750 |
Texas [Member] | ||
LEASE INCOME [Line Items] | ||
Rent Revenue | $271,527 | $0 |
COMMITMENTS_Details_Textual
COMMITMENTS (Details Textual) | 12 Months Ended |
Dec. 31, 2013 | |
Maximum [Member] | |
Other Commitments [Line Items] | |
Percentage of Payment on Gross Rental Receipt | 8.00% |
Minimum [Member] | |
Other Commitments [Line Items] | |
Percentage of Payment on Gross Rental Receipt | 6.00% |
SUBSEQUENT_EVENT_Details_Textu
SUBSEQUENT EVENT (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Subsequent Event [Line Items] | ||
Real Estate Investment Property, Net, Total | $12,125,420 | $342,010 |
Subsequent Event [Member] | Single Family Home Purchase [Member] | Wholly Owned Properties [Member] | ||
Subsequent Event [Line Items] | ||
Real Estate Investment Property, Net, Total | $1,560,836 |