Document And Entity Information
Document And Entity Information | 9 Months Ended |
Sep. 30, 2015 | |
Document Information [Line Items] | |
Entity Registrant Name | Reven Housing REIT, Inc. |
Entity Central Index Key | 1,487,782 |
Entity Filer Category | Smaller Reporting Company |
Document Type | S-11/A |
Amendment Flag | true |
Document Period End Date | Sep. 30, 2015 |
Amendment Description | Amendment No. 7 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investments in real estate: | ||||
Land | $ 6,208,327 | [1] | $ 5,422,647 | $ 2,514,009 |
Buildings and improvements | 28,564,472 | 23,961,608 | 9,685,361 | |
Investment in real estate,Gross | 34,772,799 | [1] | 29,384,255 | 12,199,370 |
Accumulated depreciation | (1,343,323) | [1] | (592,114) | (73,950) |
Investments in real estate, net | 33,429,476 | [1] | 28,792,141 | 12,125,420 |
Cash | 1,301,453 | [1] | 3,343,236 | 2,134,510 |
Rents and other receivables | 218,533 | [1] | 157,230 | 10,053 |
Property tax and insurance reserves | 0 | 260,123 | 0 | |
Prepaid expenses and deposits | 53,801 | [1] | 124,781 | 151,128 |
Escrow deposits | 181,177 | [1] | 96,483 | |
Lease origination costs, net | 186,046 | [1] | 168,145 | 75,038 |
Deferred loan fees, net | 402,622 | [1] | 333,544 | 0 |
Deferred stock issuance costs | 554,990 | [1] | 535,450 | 35,000 |
Total Assets | 36,328,098 | [1] | 33,811,133 | 14,531,149 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Accounts payable and accrued liabilities | 1,129,475 | [1] | 718,162 | 347,179 |
Security deposits | 382,329 | [1] | 306,004 | 156,985 |
Notes payable | 15,049,125 | [1] | 11,522,140 | 0 |
Total Liabilities | $ 16,560,929 | [1] | $ 12,546,306 | $ 504,164 |
Commitments and contingencies | ||||
Stockholders' Equity | ||||
Preferred stock, $.001 par value; 25,000,000 shares authorized; No shares issued or outstanding | $ 0 | $ 0 | $ 0 | |
Common Stock, Value | 7,017 | 7,017 | 4,393 | |
Additional paid-in capital | 24,601,295 | [1] | 24,601,295 | 16,036,648 |
Accumulated deficit | (4,841,143) | [1] | (3,343,485) | (2,014,056) |
Total Stockholders' Equity | 19,767,169 | [1] | 21,264,827 | 14,026,985 |
Total Liabilities and Stockholders' Equity | $ 36,328,098 | [1] | $ 33,811,133 | $ 14,531,149 |
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 25,000,000 | 25,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 | 100,000,000 |
Common stock, shares issued | 7,016,796 | 7,016,796 | 4,393,046 |
Common stock, shares outstanding | 7,016,796 | 7,016,796 | 4,393,046 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Rental income | $ 1,219,419 | $ 740,778 | $ 3,602,192 | $ 1,716,758 | $ 2,599,542 | $ 342,243 | ||||
Other income | 20,586 | 0 | ||||||||
Revenues Total | 3,602,192 | 2,620,128 | [1] | 342,243 | ||||||
Expenses: | ||||||||||
Legal and accounting | 44,609 | 49,809 | 311,970 | 219,661 | 272,713 | [1] | 195,156 | |||
Real estate taxes | 194,985 | 93,815 | 546,702 | 219,531 | 384,877 | [1] | ||||
Rental expenses | 1,115,842 | 136,679 | ||||||||
Acquisition costs | 37,341 | 256,764 | 362,447 | 295,122 | 454,554 | 279,965 | ||||
Depreciation and amortization expense | 295,344 | 240,650 | 848,587 | 430,325 | 613,572 | [1] | 96,812 | |||
General and administration | 419,022 | 278,543 | 1,379,431 | 988,790 | 1,298,513 | [1] | 366,071 | |||
Interest expense | 188,434 | 50,603 | 517,009 | 66,415 | 194,363 | [1] | 77,004 | |||
Property operating and maintenance | 355,238 | 168,496 | 1,133,704 | 463,169 | 730,965 | [1] | ||||
Amortization of discount on notes payable | 0 | 563,253 | ||||||||
Total expenses | 1,534,973 | 1,138,680 | 5,099,850 | 2,683,013 | 3,949,557 | [1] | 1,714,940 | |||
Net loss | $ (315,554) | $ (397,902) | $ (1,497,658) | $ (966,255) | $ (1,329,429) | [1] | $ (1,372,697) | |||
Net loss per share (Basic and fully diluted) (in dollars per share) | $ (0.04) | $ (0.06) | $ (0.21) | $ (0.17) | $ (0.22) | $ (1.03) | ||||
Weighted average number of common shares outstanding (basic and fully diluted) (in shares) | 7,016,796 | 6,591,796 | 7,016,796 | 5,610,265 | 5,946,159 | 1,336,614 | ||||
Houston 150 Homes [Member] | ||||||||||
Rental income | $ 1,475,931 | $ 915,953 | ||||||||
Expenses: | ||||||||||
Real estate taxes | 196,783 | 137,953 | ||||||||
Property operating and maintenance | 93,210 | 60,308 | ||||||||
Total expenses | 289,993 | 198,261 | ||||||||
Net loss | $ 1,185,938 | $ 717,692 | ||||||||
HOUSTON 18 HOMES [Member] | ||||||||||
Rental income | $ 175,570 | |||||||||
Expenses: | ||||||||||
Real estate taxes | 27,085 | |||||||||
Property operating and maintenance | 13,559 | |||||||||
Total expenses | 40,644 | |||||||||
Net loss | 134,926 | |||||||||
Jacksonville 31 [Member] | ||||||||||
Rental income | $ 140,410 | 119,596 | ||||||||
Expenses: | ||||||||||
Real estate taxes | 36,753 | 28,837 | ||||||||
Property operating and maintenance | 33,190 | 31,680 | ||||||||
Total expenses | 69,943 | 60,517 | ||||||||
Net loss | 70,467 | 59,079 | ||||||||
Memphis 60 [Member] | ||||||||||
Rental income | 286,759 | 555,874 | ||||||||
Expenses: | ||||||||||
Real estate taxes | 54,505 | 73,863 | ||||||||
Property operating and maintenance | 45,949 | 111,047 | ||||||||
Total expenses | 100,454 | 184,910 | ||||||||
Net loss | $ 186,305 | 370,964 | ||||||||
Memphis 21 [Member] | ||||||||||
Rental income | $ 126,252 | 51,050 | ||||||||
Expenses: | ||||||||||
Real estate taxes | 31,469 | 21,126 | ||||||||
Net loss | $ 94,783 | $ 29,924 | ||||||||
Jacksonville 53 [Member] | ||||||||||
Rental income | $ 434,145 | |||||||||
Expenses: | ||||||||||
Real estate taxes | 55,286 | |||||||||
Property operating and maintenance | 146,504 | |||||||||
Total expenses | 201,790 | |||||||||
Net loss | 232,355 | |||||||||
Jacksonville 140 [Member] | ||||||||||
Rental income | $ 886,184 | 1,102,690 | ||||||||
Expenses: | ||||||||||
Real estate taxes | 118,336 | 154,649 | ||||||||
Property operating and maintenance | 395,504 | 440,960 | ||||||||
Total expenses | 513,840 | 595,609 | ||||||||
Net loss | 372,344 | 507,081 | ||||||||
Houston 100 [Member] | ||||||||||
Rental income | 888,502 | 1,010,862 | ||||||||
Expenses: | ||||||||||
Real estate taxes | 139,328 | 126,258 | ||||||||
Property operating and maintenance | 131,017 | 143,712 | ||||||||
Total expenses | 270,345 | 269,970 | ||||||||
Net loss | $ 618,157 | $ 740,892 | ||||||||
[1] | Reflects our historical consolidated statement of operations for the year ended December 31, 2014 included elsewhere in this prospectus. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit | ||
Balances at Dec. 31, 2012 | $ (283,496) | $ 417 | $ 357,446 | $ (641,359) | ||
Balances (in shares) at Dec. 31, 2012 | 417,500 | |||||
Fair market value of note conversion feature and warrants issued | 291,920 | $ 0 | 291,920 | 0 | ||
Shares issued on conversion of notes | 902,176 | $ 226 | 901,950 | 0 | ||
Shares issued on conversion of notes (in shares) | 225,546 | |||||
Net proceeds on issuances of shares | 14,489,082 | $ 3,750 | 14,485,332 | 0 | ||
Net proceeds on issuances of shares (in shares) | 3,750,000 | |||||
Net loss | (1,372,697) | $ 0 | 0 | (1,372,697) | ||
Balances at Dec. 31, 2013 | 14,026,985 | $ 4,393 | 16,036,648 | (2,014,056) | ||
Balances (in shares) at Dec. 31, 2013 | 4,393,046 | |||||
Net proceeds on issuances of shares | 8,372,271 | $ 2,150 | 8,370,121 | 0 | ||
Net proceeds on issuances of shares (in shares) | 2,150,000 | |||||
Stock compensation | 195,000 | $ 474 | 194,526 | 0 | ||
Stock compensation (in shares) | 473,750 | |||||
Net loss | (1,329,429) | [1] | $ 0 | 0 | (1,329,429) | |
Balances at Dec. 31, 2014 | 21,264,827 | $ 7,017 | $ 24,601,295 | $ (3,343,485) | ||
Balances (in shares) at Dec. 31, 2014 | 7,016,796 | |||||
Net loss | (1,497,658) | |||||
Balances at Sep. 30, 2015 | [2] | $ 19,767,169 | ||||
[1] | Reflects our historical consolidated statement of operations for the year ended December 31, 2014 included elsewhere in this prospectus. | |||||
[2] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Cash Flows From Operating Activities: | ||||||
Net loss | $ (1,497,658) | $ (966,255) | $ (1,329,429) | [1] | $ (1,372,697) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||||||
Depreciation and amortization | 848,587 | 430,325 | 613,572 | 96,812 | ||
Stock compensation | 0 | 195,000 | 195,000 | 0 | ||
Amortization of deferred loan fees | 68,094 | 13,325 | 29,052 | 0 | ||
Amortization of discount on notes payable | 0 | 563,253 | ||||
Changes in operating assets and liabilities: | ||||||
Rents and other receivables | (61,303) | (85,661) | (147,177) | (6,678) | ||
Property tax and insurance reserves | 260,123 | (169,740) | (260,123) | 0 | ||
Escrow deposits and prepaid expenses | 70,980 | 0 | (70,136) | (151,128) | ||
Accounts payable and accrued liabilities | 411,313 | 375,150 | 79,362 | 215,806 | ||
Security deposits | 76,325 | 96,885 | 149,019 | 153,610 | ||
Related party advances | 0 | (266,877) | ||||
Net cash used in operating activities | 176,461 | (110,971) | (740,860) | (767,899) | ||
Cash Flows From Investing Activities: | ||||||
Acquisitions of and additions to investments in real estate | (5,388,544) | (9,808,865) | (17,184,885) | (11,855,960) | ||
Lease origination costs | (115,279) | (123,569) | (188,515) | (99,300) | ||
Additions to escrow deposits | (84,694) | (745,417) | ||||
Net cash used in investing activities | (5,588,517) | (10,677,851) | (17,373,400) | (11,955,260) | ||
Cash Flows From Financing Activities: | ||||||
Proceeds from notes payable | 3,526,985 | 7,570,000 | 11,522,140 | 500,000 | ||
Payment of convertible notes payable | 0 | (152,176) | ||||
Payment of loan fees | (137,172) | (266,503) | (362,596) | 0 | ||
Proceeds from common stock issuance | 0 | 8,372,270 | 8,600,000 | 14,539,082 | ||
Payments of stock issuance costs | (19,540) | (437,357) | (436,558) | (35,000) | ||
Net cash provided by financing activities | 3,370,273 | 15,238,410 | 19,322,986 | 14,851,906 | ||
Net (Decrease) Increase In Cash | (2,041,783) | 4,449,588 | 1,208,726 | 2,128,747 | ||
Cash at the Beginning of the Period | 3,343,236 | 2,134,510 | 2,134,510 | 5,763 | ||
Cash at the End of the Period | 1,301,453 | [2] | 6,584,098 | 3,343,236 | 2,134,510 | |
Supplemental Disclosure of Non-Cash Investing and Financing Activities: | ||||||
Debt discount for allocation of proceeds to warrants and beneficial conversion feature of debt | 0 | 291,920 | ||||
Conversion of debt to common shares | 0 | 902,176 | ||||
Deferred costs of common stock issuance | 0 | 50,000 | ||||
Supplemental Disclosure: | ||||||
Cash paid for interest | $ 436,415 | $ 34,778 | $ 124,501 | $ 88,821 | ||
[1] | Reflects our historical consolidated statement of operations for the year ended December 31, 2014 included elsewhere in this prospectus. | |||||
[2] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |
Unaudited Historical and Pro Fo
Unaudited Historical and Pro Forma Condensed Consolidated Balance Sheets | Sep. 30, 2015USD ($) | |
Investment in real estate, net | ||
Land | $ 6,208,327 | [1] |
Buildings and improvements | 28,564,472 | [1] |
Investment in real estate | 34,772,799 | [1] |
Accumulated depreciation | (1,343,323) | [1] |
Investment in real estate, net | 33,429,476 | [1] |
Cash | 1,301,453 | [1] |
Rents and other receivables | 218,533 | [1] |
Prepaid expenses and deposits | 53,801 | [1] |
Escrow deposits | 181,177 | [1] |
Lease origination costs, net | 186,046 | [1] |
Deferred Loan fees, net | 402,622 | [1] |
Deferred stock issuance costs | 554,990 | [1] |
Total Assets | 36,328,098 | [1] |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 1,129,475 | [1] |
Security deposits | 382,329 | [1] |
Note payable | 15,049,125 | [1] |
Total Liabilities | 16,560,929 | [1] |
Stockholders' Equity | ||
Common Stock, Value | 7,017 | [1] |
Additional paid-in capital | 24,601,295 | [1] |
Accumulated deficit | (4,841,143) | [1] |
Total Stockholders' Equity | 19,767,169 | [1] |
Total Liabilities and Stockholders' Equity | 36,328,098 | [1] |
Pro Forma [Member] | ||
Investment in real estate, net | ||
Land | 8,926,414 | |
Buildings and improvements | 43,966,967 | |
Investment in real estate | 52,893,381 | |
Accumulated depreciation | (1,343,323) | |
Investment in real estate, net | 51,550,058 | |
Cash | 2,039,073 | |
Rents and other receivables | 218,533 | |
Prepaid expenses and deposits | 53,801 | |
Escrow deposits | 0 | |
Lease origination costs, net | 283,146 | |
Deferred Loan fees, net | 552,622 | |
Deferred stock issuance costs | 0 | |
Total Assets | 54,697,233 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 1,129,475 | |
Security deposits | 599,429 | |
Note payable | 20,064,185 | |
Total Liabilities | 21,793,089 | |
Stockholders' Equity | ||
Common Stock, Value | 9,627 | |
Additional paid-in capital | 37,895,660 | |
Accumulated deficit | (5,001,143) | |
Total Stockholders' Equity | 32,904,144 | |
Total Liabilities and Stockholders' Equity | 54,697,233 | |
Jacksonville 140 [Member] | Pro Forma [Member] | ||
Investment in real estate, net | ||
Land | 1,405,287 | [2] |
Buildings and improvements | 7,963,295 | [2] |
Investment in real estate | 9,368,582 | [2] |
Accumulated depreciation | 0 | [2] |
Investment in real estate, net | 9,368,582 | [2] |
Cash | (4,445,245) | [2] |
Rents and other receivables | 0 | [2] |
Prepaid expenses and deposits | 0 | [2] |
Escrow deposits | (94,177) | [2] |
Lease origination costs, net | 49,100 | [2] |
Deferred Loan fees, net | 150,000 | [2] |
Deferred stock issuance costs | 0 | [2] |
Total Assets | 5,028,260 | [2] |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 0 | [2] |
Security deposits | 98,200 | [2] |
Note payable | 5,015,060 | [2] |
Total Liabilities | 5,113,260 | [2] |
Stockholders' Equity | ||
Common Stock, Value | 0 | [2] |
Additional paid-in capital | 0 | [2] |
Accumulated deficit | (85,000) | [2],[3] |
Total Stockholders' Equity | (85,000) | [2] |
Total Liabilities and Stockholders' Equity | 5,028,260 | [2] |
Houston 100 [Member] | Pro Forma [Member] | ||
Investment in real estate, net | ||
Land | 1,312,800 | [4] |
Buildings and improvements | 7,439,200 | [4] |
Investment in real estate | 8,752,000 | [4] |
Accumulated depreciation | 0 | [4] |
Investment in real estate, net | 8,752,000 | [4] |
Cash | (8,669,100) | [4] |
Rents and other receivables | 0 | [4] |
Prepaid expenses and deposits | 0 | [4] |
Escrow deposits | (87,000) | [4] |
Lease origination costs, net | 48,000 | [4] |
Deferred Loan fees, net | 0 | [4] |
Deferred stock issuance costs | 0 | [4] |
Total Assets | 43,900 | [4] |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 0 | [4] |
Security deposits | 118,900 | [4] |
Note payable | 0 | [4] |
Total Liabilities | 118,900 | [4] |
Stockholders' Equity | ||
Common Stock, Value | 0 | [4] |
Additional paid-in capital | 0 | [4] |
Accumulated deficit | (75,000) | [3],[4] |
Total Stockholders' Equity | (75,000) | [4] |
Total Liabilities and Stockholders' Equity | 43,900 | [4] |
Other Credit Derivatives [Member] | Pro Forma [Member] | ||
Investment in real estate, net | ||
Land | 0 | [5] |
Buildings and improvements | 0 | [5] |
Investment in real estate | 0 | [5] |
Accumulated depreciation | 0 | [5] |
Investment in real estate, net | 0 | [5] |
Cash | 13,851,965 | [5] |
Rents and other receivables | 0 | [5] |
Prepaid expenses and deposits | 0 | [5] |
Escrow deposits | 0 | [5] |
Lease origination costs, net | 0 | [5] |
Deferred Loan fees, net | 0 | [5] |
Deferred stock issuance costs | (554,990) | [5] |
Total Assets | 13,296,975 | [5] |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Accounts payable and accrued expenses | 0 | [5] |
Security deposits | 0 | [5] |
Note payable | 0 | [5] |
Total Liabilities | 0 | [5] |
Stockholders' Equity | ||
Common Stock, Value | 2,610 | [5] |
Additional paid-in capital | 13,294,365 | [5] |
Accumulated deficit | 0 | [5] |
Total Stockholders' Equity | 13,296,975 | [5] |
Total Liabilities and Stockholders' Equity | $ 13,296,975 | [5] |
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. | |
[2] | Reflects our acquisition of 45 homes in the Jacksonville 140 portfolio in October 2015 for the purchase price of $3,057,000, our acquisition of another ten homes in December 2015 for $675,039 and our loan from Silvergate Bank in the amount of $5,015,060, a portion of which was used to finance the purchase of the 55 homes. Also, reflects our proposed acquisition of the remaining 85 homes in the Jacksonville area for $5.7 million, which will be financed through the net proceeds of this offering, allocation of purchase price and recognition of liabilities. The purchase price has been allocated to land, building and the existing leases based upon their estimated fair values at the date of acquisition under the guidance of ASC Topic 805. In estimating the corresponding land and building values, we utilize our own market knowledge and published market data. The estimated fair value of acquired in-place leases represents the expected costs we would have incurred to lease the property at the date of acquisition as adjusted for the remaining life of the leases. | |
[3] | Reflects estimated acquisition costs that will be expensed. | |
[4] | Reflects our proposed acquisition of 100 homes in the Houston, Texas area for $8.8 million of the net proceeds of this offering, allocation of purchase price and recognition of liabilities. The purchase price has been allocated to land, building and the existing leases based upon their estimated fair values at the date of acquisition under the guidance of ASC Topic 805. In estimating the corresponding land and building values, we utilize our own market knowledge and published market data. The estimated fair value of acquired in-place leases represents the expected costs we would have incurred to lease the property at the date of acquisition as adjusted for the remaining life of the leases. | |
[5] | To reflect the estimated net proceeds of approximately $13,296,975 as a result of this offering and the issuance of 2,610,000 shares of common stock. Note, approximately $554,990 of offering costs had been incurred as of September 30, 2015. |
Unaudited Historical and Pro F8
Unaudited Historical and Pro Forma Condensed Consolidated Balance Sheets (Parenthetical) | Sep. 30, 2015shares |
Common Stock, Shares, Issued | 7,016,796 |
Common Stock, Shares, Outstanding | 7,016,796 |
Pro Forma [Member] | |
Common Stock, Shares, Issued | 9,626,796 |
Common Stock, Shares, Outstanding | 9,626,796 |
Unaudited Pro Forma Condensed C
Unaudited Pro Forma Condensed Consolidated Statement of Operations - USD ($) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | ||||
Rental income, net | $ 3,602,192 | $ 2,620,128 | [1] | ||
Operating expenses: | |||||
Property operating and maintenance | 1,133,704 | 730,965 | [1] | ||
Real estate taxes | 546,702 | 384,877 | [1] | ||
Acquisition costs | 362,447 | 454,554 | [1] | ||
Depreciation and amortization | 848,587 | 613,572 | [1] | ||
General and administration | 1,379,431 | 1,298,513 | [1] | ||
Legal and accounting | 311,970 | 272,713 | [1] | ||
Interest expense | 517,009 | 194,363 | [1] | ||
Total operating expenses | 5,099,850 | 3,949,557 | [1] | ||
Net income (loss) | (1,497,658) | (1,329,429) | [1] | ||
Pro Forma [Member] | |||||
Rental income, net | 5,476,618 | 6,646,753 | |||
Operating expenses: | |||||
Property operating and maintenance | 1,823,236 | 2,135,683 | |||
Real estate taxes | 817,111 | 966,193 | |||
Acquisition costs | 362,447 | 663,128 | |||
Depreciation and amortization | 1,366,712 | 1,833,732 | |||
General and administration | 1,379,431 | 1,298,513 | |||
Legal and accounting | 311,970 | 272,713 | |||
Interest expense | 736,009 | 968,363 | |||
Total operating expenses | 6,796,916 | 8,138,325 | |||
Net income (loss) | (1,320,298) | (1,491,572) | |||
Pro Forma [Member] | Insignificant Purchases And Other [Member] | |||||
Rental income, net | [2] | 925,507 | |||
Operating expenses: | |||||
Property operating and maintenance | [2] | 350,042 | |||
Real estate taxes | [2] | 123,046 | |||
Acquisition costs | 0 | ||||
Depreciation and amortization | [2] | 260,141 | |||
General and administration | 0 | ||||
Legal and accounting | 0 | ||||
Interest expense | [3] | 774,000 | |||
Total operating expenses | 1,507,229 | ||||
Net income (loss) | (581,722) | ||||
Jacksonville 53 [Member] | |||||
Operating expenses: | |||||
Property operating and maintenance | 146,504 | ||||
Real estate taxes | 55,286 | ||||
Total operating expenses | 201,790 | ||||
Net income (loss) | 232,355 | ||||
Jacksonville 53 [Member] | Pro Forma [Member] | |||||
Rental income, net | 99,740 | [4] | 434,145 | [5] | |
Operating expenses: | |||||
Property operating and maintenance | 29,922 | [4] | 181,236 | [5] | |
Real estate taxes | 12,745 | [4] | 55,286 | [5] | |
Acquisition costs | 0 | [4] | 48,574 | [5] | |
Depreciation and amortization | 28,000 | [4] | 136,100 | [5] | |
General and administration | 0 | [4] | 0 | [5] | |
Legal and accounting | 0 | [4] | 0 | [5] | |
Interest expense | 0 | [4] | 0 | [5] | |
Total operating expenses | 70,667 | [4] | 421,196 | [5] | |
Net income (loss) | 29,073 | [4] | 12,949 | [5] | |
Jacksonville 140 [Member] | |||||
Operating expenses: | |||||
Property operating and maintenance | 395,504 | 440,960 | |||
Real estate taxes | 118,336 | 154,649 | |||
Total operating expenses | 513,840 | 595,609 | |||
Net income (loss) | 372,344 | 507,081 | |||
Jacksonville 140 [Member] | Pro Forma [Member] | |||||
Rental income, net | 886,184 | [6] | 1,102,690 | [7] | |
Operating expenses: | |||||
Property operating and maintenance | 466,398 | [6] | 529,175 | [7] | |
Real estate taxes | 118,336 | [6] | 154,649 | [7] | |
Acquisition costs | 0 | [6] | 85,000 | [7] | |
Depreciation and amortization | 253,875 | [6] | 338,500 | [7] | |
General and administration | 0 | [6] | 0 | [7] | |
Legal and accounting | 0 | [6] | 0 | [7] | |
Interest expense | 0 | [6] | 0 | [7] | |
Total operating expenses | 838,609 | [6] | 1,107,324 | [7] | |
Net income (loss) | 47,575 | [6] | (4,634) | [7] | |
Houston 100 [Member] | |||||
Operating expenses: | |||||
Property operating and maintenance | 131,017 | 143,712 | |||
Real estate taxes | 139,328 | 126,258 | |||
Total operating expenses | 270,345 | 269,970 | |||
Net income (loss) | 618,157 | 740,892 | |||
Houston 100 [Member] | Pro Forma [Member] | |||||
Rental income, net | [8] | 888,502 | 1,010,862 | ||
Operating expenses: | |||||
Property operating and maintenance | [8] | 193,212 | 214,472 | ||
Real estate taxes | [8] | 139,328 | 126,258 | ||
Acquisition costs | [8] | 0 | 75,000 | ||
Depreciation and amortization | [8] | 236,250 | 315,000 | ||
General and administration | [8] | 0 | 0 | ||
Legal and accounting | [8] | 0 | 0 | ||
Interest expense | [8] | 0 | 0 | ||
Total operating expenses | [8] | 568,790 | 730,730 | ||
Net income (loss) | [8] | 319,712 | 280,132 | ||
Other Credit Derivatives [Member] | Pro Forma [Member] | |||||
Rental income, net | [9] | 0 | |||
Operating expenses: | |||||
Property operating and maintenance | [9] | 0 | |||
Real estate taxes | [9] | 0 | |||
Acquisition costs | [9] | 0 | |||
Depreciation and amortization | [9] | 0 | |||
General and administration | [9] | 0 | |||
Legal and accounting | [9] | 0 | |||
Interest expense | [9] | 219,000 | |||
Total operating expenses | [9] | 219,000 | |||
Net income (loss) | [9] | $ (219,000) | |||
Jacksonville 31 [Member] | Pro Forma [Member] | |||||
Rental income, net | [10] | 140,410 | |||
Operating expenses: | |||||
Property operating and maintenance | [10] | 44,423 | |||
Real estate taxes | [10] | 36,753 | |||
Acquisition costs | [10] | 0 | |||
Depreciation and amortization | [10] | 38,900 | |||
General and administration | [10] | 0 | |||
Legal and accounting | [10] | 0 | |||
Interest expense | [10] | 0 | |||
Total operating expenses | [10] | 120,076 | |||
Net income (loss) | [10] | 20,334 | |||
Memphis 60 [Member] | Pro Forma [Member] | |||||
Rental income, net | [11] | 286,759 | |||
Operating expenses: | |||||
Property operating and maintenance | [11] | 66,022 | |||
Real estate taxes | [11] | 54,505 | |||
Acquisition costs | [11] | 0 | |||
Depreciation and amortization | [11] | 92,400 | |||
General and administration | [11] | 0 | |||
Legal and accounting | [11] | 0 | |||
Interest expense | [11] | 0 | |||
Total operating expenses | [11] | 212,927 | |||
Net income (loss) | [11] | 73,832 | |||
Memphis 21 [Member] | Pro Forma [Member] | |||||
Rental income, net | [12] | 126,252 | |||
Operating expenses: | |||||
Property operating and maintenance | [12] | 19,348 | |||
Real estate taxes | [12] | 30,819 | |||
Acquisition costs | [12] | 0 | |||
Depreciation and amortization | [12] | 39,119 | |||
General and administration | [12] | 0 | |||
Legal and accounting | [12] | 0 | |||
Interest expense | [12] | 0 | |||
Total operating expenses | [12] | 89,286 | |||
Net income (loss) | [12] | $ 36,966 | |||
[1] | Reflects our historical consolidated statement of operations for the year ended December 31, 2014 included elsewhere in this prospectus. | ||||
[2] | To adjust for our acquisition of 106 additional homes acquired in various insignificant acquisitions during the year ended December 31, 2014, not included in the other separately listed acquisitions. Amounts represent estimated revenues and expenses for these homes based on our actual rental income and expenses for these homes, assuming the homes were purchased on December 31, 2013, less revenues and expenses already included in our actual audited results for the year ended December 31, 2014. Depreciation expense is calculated using the straight-line method over the estimated useful life of 27.5 years for the buildings, less depreciation already recorded. Amortization expense on lease intangible costs is recognized using the straight-line method over the life of the leases, less amortization already recorded. | ||||
[3] | To adjust for interest expense and amortization of deferred loan fees on $20,064,185 bank loans for the one year period assuming 4.25% annual interest less interest and amortization already included. Note if the interest rate increased 0.125% over the entire period, interest expense over the pro forma period would have increased approximately $25,100. | ||||
[4] | Reflects two and one half months estimated rental revenue and expenses for the Jacksonville 53 homes purchased on March 13, 2015 and not included in the historical statement of operations as of September 30, 2015. Rental income and expenses are calculated based on the in place rent roll and our expense experience based on the management of our other Jacksonville properties. Depreciation expense is calculated using the straight-line method over the estimated useful life of 27.5 years for the buildings. Amortization expense on lease intangible costs is recognized using the straight-line method over the life of the lease. | ||||
[5] | To adjust for our acquisition of 53 homes in the Jacksonville, Florida area of which 50 homes were purchased on March 13, 2015 and three homes were purchased on April 8, 2015. Amounts represent revenues and expenses incurred by the prior owner of the portfolio during the period January 1, 2014 through December 31, 2014, exclusive of certain revenues and expenses on the basis that they may not be comparable to the revenues and expenses we expect to incur in the future operations of Jacksonville 53 homes. Amounts have been adjusted to include property management costs based on our contractual arrangements. Depreciation expense is calculated using the straight-line method over the estimated useful life of 27.5 years for the buildings. Amortization expense on lease intangible costs is recognized using the straight-line method over the life of the lease. | ||||
[6] | To adjust for our proposed acquisition of 140 homes in the Jacksonville, Florida area with a significant portion of the proceeds of this offering. Amounts represent revenues and expenses incurred by the current owner of the portfolio during the period January 1, 2015 through June 30, 2015, exclusive of certain revenues and expenses on the basis that they may not be comparable to the revenues and expenses we expect to incur in the future operations of Jacksonville 140 homes. Amounts have been adjusted to include property management costs based on our contractual arrangements. Depreciation expense is calculated using the straight-line method over the estimated useful life of 27.5 years for the buildings. Amortization expense on lease intangible costs is recognized using the straight-line method over the life of the lease. | ||||
[7] | To adjust for our proposed acquisition of 140 homes in the Jacksonville, Florida area with a significant portion of the proceeds of this offering. Amounts represent revenues and expenses incurred by the current owner of the portfolio during the period January 1, 2014 through December 31, 2014, exclusive of certain revenues and expenses on the basis that they may not be comparable to the revenues and expenses we expect to incur in the future operations of Jacksonville 140 homes. Amounts have been adjusted to include property management costs based on our contractual arrangements. Depreciation expense is calculated using the straight-line method over the estimated useful life of 27.5 years for the buildings based on our estimated purchase price allocation. Amortization expense on lease intangible costs is recognized using the straight-line method over the life of the lease. | ||||
[8] | To adjust for our proposed acquisition of 100 homes in Houston, Texas with a significant portion of the proceeds of this offering. Amounts represent revenues and expenses incurred by the current owner of the portfolio during the period January 1, 2015 through June 30, 2015, exclusive of certain revenues and expenses on the basis that they may not be comparable to the revenues and expenses we expect to incur in the future operations of Houston 100 homes. Amounts have been adjusted to include property management costs based on our contractual arrangements. Depreciation expense is calculated using the straight-line method over the estimated useful life of 27.5 years for the buildings. Amortization expense on lease intangible costs is recognized using the straight-line method over the life of the lease. | ||||
[9] | To adjust for interest expense and amortization of deferred loan fees on $20,064,185 of bank loans for six full months assuming 4.25% annual interest less interest and amortization already included. Note if the interest rate increased 0.125% over the entire period, interest expense over the pro forma period would have increased approximately $18,810. | ||||
[10] | To adjust for our acquisition of 31 homes in the Jacksonville, Florida area, of which 29 homes were purchased on July 7, 2014 and two homes were purchased on October 30, 2014. Amounts represent revenues and expenses incurred by the prior owner of the portfolio during the period January 1, 2014 through June 30, 2014, exclusive of certain revenues and expenses on the basis that they may not be comparable to the revenues and expenses we expect to incur in the future operations of Jacksonville 31 homes. Amounts have been adjusted to include property management costs based on our contractual arrangements. Depreciation expense is calculated using the straight-line method over the estimated useful life of 27.5 years for the buildings. Amortization expense on lease intangible costs is recognized using the straight-line method over the life of the lease. | ||||
[11] | To adjust for our acquisition of 60 homes in the Memphis, Tennessee area, of which 51 homes were purchased on July 28, 2014, five homes were purchased on September 7, 2014, three homes were purchased on November 4, 2014 and one home was purchased on December 24, 2014. Amounts represent revenues and expenses incurred by the prior owner of the portfolio during the period January 1, 2014 through June 30, 2014, exclusive of certain revenues and expenses on the basis that they may not be comparable to the revenues and expenses we expect to incur in the future operations of Memphis 60 homes. Amounts have been adjusted to include property management costs based on our contractual arrangements. Depreciation expense is calculated using the straight-line method over the estimated useful life of 27.5 years for the buildings. Amortization expense on lease intangible costs is recognized using the straight-line method over the life of the lease. | ||||
[12] | To adjust for our acquisition of 21 homes in the Memphis, Tennessee area on November 6, 2014. Amounts represent revenues and expenses incurred by the prior owner of the portfolio during the period January 1, 2014 through September 30, 2014, exclusive of certain revenues and expenses on the basis that they may not be comparable to the revenues and expenses we expect to incur in the future operations of Memphis 21 homes. Amounts have been adjusted to include property management costs based on our contractual arrangements. Depreciation expense is calculated using the straight-line method over the estimated useful life of 27.5 years for the buildings. Amortization expense on lease intangible costs is recognized using the straight-line method over the life of the lease. |
Unaudited Pro Forma Condensed10
Unaudited Pro Forma Condensed Consolidated Statement of Operations (Parenthetical) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | |||
Property, Plant and Equipment, Depreciation Methods | straight-line method | straight-line method | ||
Debt Instrument, Interest Rate During Period | 4.25% | 4.25% | ||
Debt Instrument, Interest Rate, Increase (Decrease) | 0.125% | 0.125% | ||
Interest Expense Over The Pro Forma Period | $ 18,810 | $ 25,100 | ||
Notes Payable, Total | 15,049,125 | [1] | 11,522,140 | |
Pro Forma [Member] | ||||
Notes Payable, Total | $ 20,064,185 | $ 20,064,185 | ||
Insignificant Purchases And Other [Member] | ||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |||
Jacksonville 53 [Member] | ||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | 27 years 6 months | ||
Property, Plant and Equipment, Depreciation Methods | straight-line method | straight-line method | ||
Jacksonville 140 [Member] | ||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |||
Property, Plant and Equipment, Depreciation Methods | straight-line method | |||
Jacksonville 140 [Member] | Pro Forma [Member] | ||||
Notes Payable, Total | [2] | $ 5,015,060 | ||
Houston 100 [Member] | ||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |||
Property, Plant and Equipment, Depreciation Methods | straight-line method | |||
Houston 100 [Member] | Pro Forma [Member] | ||||
Notes Payable, Total | [3] | $ 0 | ||
Memphis 60 [Member] | ||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |||
Property, Plant and Equipment, Depreciation Methods | straight-line method | |||
Memphis 21 [Member] | ||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |||
Property, Plant and Equipment, Depreciation Methods | straight-line method | |||
Jacksonville 31 [Member] | ||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | |||
Property, Plant and Equipment, Depreciation Methods | straight-line method | |||
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. | |||
[2] | Reflects our acquisition of 45 homes in the Jacksonville 140 portfolio in October 2015 for the purchase price of $3,057,000, our acquisition of another ten homes in December 2015 for $675,039 and our loan from Silvergate Bank in the amount of $5,015,060, a portion of which was used to finance the purchase of the 55 homes. Also, reflects our proposed acquisition of the remaining 85 homes in the Jacksonville area for $5.7 million, which will be financed through the net proceeds of this offering, allocation of purchase price and recognition of liabilities. The purchase price has been allocated to land, building and the existing leases based upon their estimated fair values at the date of acquisition under the guidance of ASC Topic 805. In estimating the corresponding land and building values, we utilize our own market knowledge and published market data. The estimated fair value of acquired in-place leases represents the expected costs we would have incurred to lease the property at the date of acquisition as adjusted for the remaining life of the leases. | |||
[3] | Reflects our proposed acquisition of 100 homes in the Houston, Texas area for $8.8 million of the net proceeds of this offering, allocation of purchase price and recognition of liabilities. The purchase price has been allocated to land, building and the existing leases based upon their estimated fair values at the date of acquisition under the guidance of ASC Topic 805. In estimating the corresponding land and building values, we utilize our own market knowledge and published market data. The estimated fair value of acquired in-place leases represents the expected costs we would have incurred to lease the property at the date of acquisition as adjusted for the remaining life of the leases. |
ORGANIZATION AND OPERATION
ORGANIZATION AND OPERATION | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Organization And Operation [Abstract] | ||
Nature of Operations [Text Block] | NOTE 1. ORGANIZATION AND OPERATION Reven Housing REIT, Inc. is a Maryland corporation (Reven Housing REIT, Inc., along with its wholly-owned subsidiaries, are also referred to herein collectively as the “Company”) which acquires portfolios of occupied and rented single family homes throughout the United States with the objective of receiving income from rental property activity and future profits from the sale of rental property at appreciated values. As of September 30, 2015, the Company owned 473 single family homes in the Houston, Jacksonville, Memphis and Atlanta metropolitan areas. | Reven Housing REIT, Inc. was initially incorporated in the State of Colorado and then converted to a Maryland corporation on April 1, 2014 (Reven Housing REIT, Inc., along with its subsidiaries, are also referred to herein collectively as the (“Company”). The Company acquires portfolios of occupied and rented single family homes throughout the United States with the objective of receiving income from rental property activity and future profits from the sale of rental property at appreciated values. As of December 31, 2014 the Company owned 395 single family homes in the Houston, Jacksonville, Memphis and Atlanta metropolitan areas. Restatement of Prior Period Consolidated Financial Statements In connection with preparing the annual financial information presented in this report, 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. The effects of these prior period errors in the consolidated financial statements are as follows: December 31, 2013 As Restated As previously 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 $ (1.03 ) $ (0.80 ) $ (0.23 ) 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 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Basis of Presentation and Significant Accounting Policies [Text Block] | NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and Article 8 of Regulation S-X of the Securities Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the 2014 Annual Report on Form 10-K filed with the SEC on March 31, 2015. In the opinion of management, the condensed financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results of such period. The results of operations for the period ended September 30, 2015 are not necessarily indicative of the operating results for the full year. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing REIT OP, L.P., Reven Housing GP, LLC, Reven Housing REIT TRS, LLC, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, and Reven Housing Tennessee, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of the condensed 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 revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates. Financial Instruments The carrying value of the Company’s financial instruments, as reported in the accompanying condensed consolidated balance sheets, approximates fair value due to their short term nature. The Company’s short term financial instruments consist of cash, rents and other receivables, property tax and insurance reserves, escrow deposits, accounts payable and accrued liabilities, and security deposits. The carrying value of the Company’s notes payable, as reported in the accompanying condensed consolidated balance sheets, approximates fair value due to their floating market interest rate and due to the fact that their security and payment terms are similar to other debt instruments currently being issued. Reclassifications Certain prior period amounts have been reclassified to conform to the current period’s presentation. Investments in Real Estate The Company accounts for its investments in real estate as business combinations under the guidance of ASC Topic 805, Business Combinations Buildings and improvements are depreciated over estimated useful lives of approximately 10 to 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 periods ended September 30, 2015 and 2014. Cash The Company maintains its cash, cash equivalents and escrow deposits at financial institutions. The combined account balances at one or more institutions typically exceed the Federal Depository Insurance Corporation (“FDIC”) insurance coverage, and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance. As of September 30, 2015 and December 31, 2014, the Company did not have any 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 managers on behalf of the Company, net of any allowance for amounts deemed uncollectible. The Company has not recognized any allowance for doubtful accounts as of September 30, 2015 and December 31, 2014. Property Tax and Insurance Reserves Property tax and insurance reserves represent amounts held in accordance with the terms of the Company’s notes payable for property taxes and insurance. During the first quarter of 2015, the lender waived this requirement and the amounts previously held in escrow have been released to the Company. Escrow Deposits and Prepaid Expenses Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. Deferred Loan Fees Costs incurred in the placement of the Company’s debt are deferred and amortized using the effective interest method over the term of the loans as a component of interest expense on the consolidated statements of operations. Deferred loan costs and fees totaled $499,768 and accumulated amortization totaled $97,146 as of September 30, 2015. Amortization expense for these loan fees was $24,984 and $68,094 for the three and nine months ended September 30, 2015, respectively. Loan fees totaled $266,503 and amortization expense totaled $13,326 as of September 30, 2014. Deferred Stock Issuance Costs Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be performed within one year. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. Security Deposits Security deposits represent amounts deposited by tenants at the inception of the lease. Revenue Recognition The Company’s single family homes are leased under short term rental agreements of generally one year with individual tenants and revenue is recognized over the lease term on a straight-line basis. Income Taxes The Company is currently being taxed as a “C” corporation, but intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing with the taxable year ending December 31, 2015. Management believes that the Company will be able to satisfy the requirements for qualification as a REIT. Accordingly, the Company does not expect 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 depends 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 or liabilities 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 September 30, 2015 and December 31, 2014, the Company had no unrecognized tax benefits. 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 1,650,000 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, and 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. On April 4, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 48,750 shares of the Company’s common stock under the 2012 Plan to the members of the Board of Directors as compensation for their services. On October 16, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 425,000 shares of the Company’s common stock under the 2012 Plan to certain officers and consultants of the Company. The shares issued are subject to restrictions and future vesting conditions based on the Company reaching certain future milestones. None of the shares were vested as of the issuance date. 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 three and nine months ended September 30, 2015, and 2014, potentially dilutive securities excluded from the calculations were 263,588 shares issuable upon exercise of outstanding warrants granted in conjunction with the convertible notes. On November 5, 2014, the Company effected a 1-for-20 reverse stock split of the issued common stock. Each stockholder’s percentage ownership and proportional voting power generally remained unchanged as a result of the reverse stock split. All applicable share data, per share amounts and related information in the condensed consolidated financial statements and noted thereto have been adjusted retroactively to give effect to the 1-for-20 reverse stock split . New Accounting Pronouncements The Company is currently evaluating 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. | NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and the rules and regulations of the Securities Exchange Commission (“SEC”). Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, and Reven Housing Tennessee, LLC. All significant inter-company accounts and transactions have been eliminated in consolidation. 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 revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates. Financial Instruments The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value due to their short term nature. The Company’s financial instruments consist of cash, rents and other receivables, tax and insurance reserves, escrow deposits, accounts payable and accrued liabilities, and security deposits. Reclassifications Certain amounts for 2013 have been reclassified to conform to the current year’s presentation. Investments in Real Estate The Company accounts for its investments in real estate as business combinations under the guidance of ASC Topic 805, Business Combinations 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, 2014 and 2013. Cash The Company maintains its cash, cash equivalents and escrow deposits at financial institutions. The combined account balances at one or more institutions typically exceed the Federal Depository Insurance Corporation (“FDIC”) insurance coverage, and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance. As of December 31, 2014 and 2013, the Company did not have any 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 managers on behalf of the Company, net of any allowance for amounts deemed uncollectible. The Company has not recognized any allowance for doubtful accounts as of December 31, 2014 and 2013. Property Tax and Insurance Reserves Tax and insurance reserves represent amounts held in accordance with the terms of the Company’s notes payable for property taxes and insurance. Escrow Deposits and Prepaid Expenses Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for property purchases. Deferred Loan Fees Costs incurred in the placement of the Company’s debt are deferred and amortized using the effective interest method over the term of the loans as a component of interest expense on the consolidated statements of operations. Deferred loan closing costs and fees totaled $362,596 as of December 31, 2014 and amortization expense for these loan fees was $29,052 for the year ended December 31, 2014. No loan fees or related amortization were incurred during the year ended December 31, 2013. Deferred Stock Issuance Costs Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be performed within one year. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. During the year ended December 31, 2014, $227,729 of deferred stock issuance costs were netted against additional paid-in capital as a cost of stock issued. During the year ended December 31, 2013, $510,918 of deferred stock issuance costs were netted against additional paid-in capital as a cost of stock issued. Security Deposits Security deposits represent amounts deposited by tenants at the inception of the lease. 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 FASB ASC 470-20, Debt with Conversion and Other Options. Revenue Recognition Property is leased under short term rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis. 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, 2014 and 2013, the Company had no unrecognized tax benefits. The Company intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing with the taxable year ended December 31, 2015. Management believes that the Company will be able to satisfy the requirements for qualification as a REIT. Accordingly, the Company does not expect 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 depends 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. 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 1,650,000 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. On April 4, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 48,750 shares of the Company’s common stock under the 2012 Plan to the members of the Board of Directors as compensation for their services. On October 16, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 425,000 shares of the Company’s common stock under the 2012 Plan to certain officers and consultants of the Company. The shares issued are subject to restrictions and future vesting conditions based on the Company reaching certain future milestones. None of the shares were vested as of the issuance date. 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, 2014, and 2013, potentially dilutive securities excluded from the calculations were 263,588 shares issuable upon exercise of outstanding warrants granted in conjunction with the convertible notes. On November 5, 2014, the Company effected a 1-for-20 reverse stock split of the issued common stock. Each stockholder’s percentage ownership and proportional voting power generally remained unchanged as a result of the reverse stock split. All applicable share data, per share amounts and related information in the consolidated financial statements and noted thereto have been adjusted retroactively to give effect to the 1-for-20 reverse stock split. In May 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014-09 Revenue from Contracts with Customers, or ASU No. 2014-09, which will supersede nearly all existing revenue recognition guidance under GAAP. ASU No. 2014-09 provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU No. 2014-09 allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the fourth quarter of 2016. In April 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014-08, which amends the definition of a discontinued operation in Codification Topic Presentation of Financial Statements (“ASC 205”) to change the criteria for reporting discontinued operations and enhance disclosure requirements. Under ASU No. 2014-08, only disposals representing a strategic shift that has (or will have) a major effect on an entity’s operations and financial results should be presented as discontinued operations. ASU No. 2014-08 is effective for interim or annual periods beginning on or after December 14, 2014, with early adoption permitted. The Company is currently assessing the impact, if any, the guidance will have upon adoption. 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. |
INVESTMENTS IN REAL ESTATE
INVESTMENTS IN REAL ESTATE | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Investments In Real Estate [Abstract] | ||
Residential Homes [Text Block] | NOTE 3. INVESTMENTS IN REAL ESTATE The Company’s investments in real estate consists of single family homes purchased by the Company. The homes are generally leased to individual tenants under operating leases for terms of one year or less. The following table summarizes the Company’s investments in real estate: Number Land Buildings and Total Total at December 31, 2014 395 $ 5,422,647 $ 23,961,608 $ 29,384,255 Purchases and improvements during 2015: Jacksonville, FL 78 785,680 4,533,332 5,319,012 Memphis, TN 47,160 47,160 Houston, TX 20,222 20,222 Atlanta, GA 2,150 2,150 Total at September 30, 2015 473 $ 6,208,327 $ 28,564,472 $ 34,772,799 For the nine months ended September 30, 2015, the Company included $480,229 of rental income, $208,839 of rental expenses, $79,705 of depreciation, and net income of $191,685 in its consolidated statements of operations related to the Company’s acquisitions of additional properties during 2015. The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company for the nine months ended September 30, 2015 and 2014 prepared to give effect if all of the Company’s acquisitions of properties in 2014 and 2015 occurred on January 1, 2014. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. For the Nine Months Ended 2015 2014 Rental revenue $ 3,732,192 $ 3,625,362 Rental expenses $ 1,745,406 $ 1,619,280 Depreciation and amortization $ 901,587 $ 903,331 Net loss $ (1,164,711 ) $ (630,941 ) Net loss per share, basic and fully diluted $ (0.17 ) $ (0.11 ) Weighted average number of common shares outstanding, basic and fully diluted 7,016,796 5,610,265 The unaudited pro forma information for the nine months ended September 30, 2015 and 2014 has been adjusted to exclude acquisition fees and expenses related to the acquisitions recorded in the appropriate periods and additionally to include the additional interest expense relating to the Company’s 2014 and 2015 borrowings. | NOTE 3. INVESTMENTS IN REAL ESTATE The Company’s investment in real estate consists of single family homes purchased by the Company. The homes are generally leased to individual tenants under leases of one year or less. The following table summarizes the Company’s investments in real estate: Number of Land Buildings and Total Accumulated Investments in Total at December 31, 5 $ 67,019 $ 276,391 $ 343,410 $ (1,400 ) $ 342,010 Purchases and improvements during 2013: Houston, TX 150 2,394,359 9,198,173 11,592,532 (55,750 ) 11,536,782 Atlanta, GA 4 52,631 210,797 263,428 (16,800 ) 246,628 Total at December 31, 2013 (Restated) 159 $ 2,514,009 $ 9,685,361 $ 12,199,370 $ (73,950 ) $ 12,125,420 Purchases and improvements during 2014: Houston, TX 18 319,500 1,236,765 1,556,265 (375,533 ) 1,180,732 Jacksonville, FL 123 1,506,938 6,865,952 8,372,890 (50,239 ) 8,322,651 Memphis, TN 95 1,082,200 6,160,183 7,242,383 (74,474 ) 7,167,909 Atlanta, GA improvements 13,347 13,347 (17,918 ) (4,571 ) Total at December 31, 395 $ 5,422,647 $ 23,961,608 $ 29,384,255 $ (592,114 ) $ 28,792,141 For the year ended December 31, 2014, the Company included $830,148 of rental income, $325,736 of rental expenses, $178,521 of depreciation, and net income of $325,891in its consolidated statements of operations related to the Company’s 2014 acquisitions. For the year ended December 31, 2013, the Company’s rental revenues, expenses, depreciation, and net loss are substantially all derived from the Company’s 2013 acquisitions. Unaudited Pro Forma Financial Information The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company for the years ended December 31, 2014 and 2013. The following unaudited pro forma information for the years ended December 31, 2014 and 2013 has been prepared to give effect as if all of the Company’s 2014 and 2013 acquisitions occurred on January 1, 2013. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. For the Years Ended December 31 2014 2013 Rental revenue $ 4,099,056 $ 3,809,558 Rental expenses $ 1,210,800 $ 1,392,361 Depreciation and amortization $ 1,044,132 $ 1,044,000 Net loss $ (1,087,465 ) $ (558,287 ) Net loss per share, basic and fully diluted $ (0.18 ) $ (0.42 ) Weighted average number of common shares outstanding, basic and fully diluted 5,946,159 1,336,614 The unaudited pro forma information for the year ended December 31, 2014 and 2013 has been adjusted to exclude acquisition fees and expenses related to the acquisitions recorded in the appropriate years and additionally to include the additional interest expense relating to the Company’s 2014 borrowings. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2015 2014 Accounts payable $ 264,752 $ 12,673 Property taxes payable 498,909 292,290 Accrued legal, board fees and other expenses 312,504 372,389 Interest payable 53,310 40,810 $ 1,129,475 $ 718,162 | NOTE 4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 2014 2013 Accounts payable $ 12,673 $ 89,666 Property taxes payable 292,290 196,141 Accrued legal, board fees and other expenses 372,389 61,372 Interest payable 40,810 $ 718,162 $ 347,179 |
DESCRIPTION OF REAL ESTATE PROP
DESCRIPTION OF REAL ESTATE PROPERTY | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Houston 150 Homes [Member] | ||||||
Real Estate Disclosure [Text Block] | 1. DESCRIPTION OF REAL ESTATE PROPERTY On October 31, 2013, Reven Housing REIT, Inc. (the “Company”), through a wholly-owned subsidiary, closed on the acquisition of 150 single family homes located in the Houston, Texas metropolitan area, pursuant to that certain Single Family Homes Real Estate Purchase and Sale Agreement (the “Agreement”) dated October 4, 2013, with Red Door Housing, LLC, a Texas limited liability company (“Red Door”), and WFI Funding, Inc., a Texas corporation (together with Red Door, the “Sellers”). The Houston 150 Sellers are not affiliated with the Company. The contract purchase price for the 150 acquired properties was $ 11,691,832 Reven Housing REIT is a Maryland corporation formed to invest in and manage a diverse portfolio of single family homes located throughout the United States. | |||||
HOUSTON 18 HOMES [Member] | ||||||
Real Estate Disclosure [Text Block] | 1. DESCRIPTION OF REAL ESTATE PROPERTY On January 31, 2014, Reven Housing REIT, Inc. (“Company”), through a wholly-owned subsidiary, closed on the acquisition of 18 single family homes located in the Houston, Texas metropolitan area, pursuant to that certain Single Family Homes Real Estate Purchase and Sale Agreement dated October 4, 2013, as amended on October 30, 2013 and as further amended on December 23, 2013 (the “Houston 18 Agreement”) with Red Door Housing, LLC, a Texas limited liability company (“Red Door”), and WFI Funding, Inc., a Texas corporation (together with Red Door, the “Houston 18 Sellers”). The Houston 18 Sellers are not affiliated with the Company. The contract purchase price for the 18 acquired properties was $ 1,560,836 Reven Housing REIT is a Maryland corporation formed to invest in and manage a diverse portfolio of single family homes located throughout the United States. | |||||
Jacksonville 31 [Member] | ||||||
Real Estate Disclosure [Text Block] | 1. DESCRIPTION OF REAL ESTATE PROPERTY On July 7, 2014, Reven Housing REIT, Inc. (“Company”), through a wholly-owned subsidiary, closed on the acquisition of 29 single family homes located in the Jacksonville, Florida metropolitan area, from CJJ Development II, LLC, (the “Jacksonville 31 Seller”), pursuant to that certain Single Family Homes Real Estate Purchase and Sale Agreement dated May 5, 2014, as amended on June 25, 2014, and as further amended on July 2, 2014 (collectively, the “Agreement”), with BGF Homes, LLC, a Florida limited liability company, CJJ Development II, LLC, a Florida limited liability company, DCCF Properties, LLC, a Florida limited liability company, NBJW Properties, LLC, a Florida limited liability company, North Jacksonville Rentals, LLC, a Florida limited liability company, Rams Real Estate Holdings, LLC, a Florida limited liability company, and Obadiah G. Dorsey, an individual. On October 31, 2014, the Company purchased an additional 2 properties from the Jacksonville 31 Seller pursuant to this same agreement. The acquired properties are part of a total of 49 single-family homes subject to the Agreement. However it has been determined that the other properties were owned by unrelated sellers, not acquired contingent to the other purchases, subject to separate closing agreements, and therefore were insignificant acquisitions. The contract purchase price for the 31 acquired properties was $ 2,143,499 Reven Housing REIT is a Maryland corporation formed to invest in and manage a diverse portfolio of single family homes located throughout the United States. | |||||
Memphis 60 [Member] | ||||||
Real Estate Disclosure [Text Block] | 1. DESCRIPTION OF REAL ESTATE PROPERTY On July 28, 2014, Reven Housing REIT, Inc. (“Company”), through a wholly-owned subsidiary, Reven Housing Tennessee, LLC (“Buyer”), closed on the acquisition of 51 single family homes located in the Memphis, Tennessee metropolitan area, pursuant to that certain Single Family Homes Real Estate Purchase and Sale Agreement dated April 24, 2014, as amended (the “Memphis 60 Agreement”) between Buyer and H&J Properties, LLC, Memphis Cash Flow, GP, and Equity Trust Company Custodian FBO Hulet T. Gregory IRA Z108673 (collectively, the “Memphis 60 Sellers”). Between September 11, 2014 and December 24, 2014, the Buyer closed on the acquisition of an additional nine single family homes (together with the previously purchased 51 single family homes, the “Memphis 60 Homes”) from the Memphis 60 Sellers pursuant to the Memphis 60 Agreement. The Memphis 60 Sellers are not affiliated with the Company. The contract purchase price for the 60 acquired properties was $ 4,725,800 Reven Housing REIT is a Maryland corporation formed to invest in and manage a diverse portfolio of single family homes located throughout the United States. | |||||
Memphis 21 [Member] | ||||||
Real Estate Disclosure [Text Block] | 1. DESCRIPTION OF REAL ESTATE PROPERTY On November 7, 2014, Reven Housing REIT, Inc. (“Reven Housing REIT “or the “Company”), through a wholly owned subsidiary, Reven Housing Tennessee, LLC, closed on the acquisition of 21 properties (“Memphis 21 Homes”) located in the Memphis, Tennessee metropolitan area, pursuant to that certain Single Family Homes Real Estate Purchase and Sale Agreement dated September 9, 2014 with Gregory Griffin, an individual (the “Seller”). The Seller does not have a material relationship with the Company and the acquisition was not an affiliated transaction. The contract purchase price for the 21 acquired properties was $ 1,724,909 Reven Housing REIT is a Maryland corporation formed to invest in and manage a diverse portfolio of single family homes located throughout the United States. Number of bedrooms and baths, and any other measures used to describe the real estate included in these notes to the statement of revenues over certain operating expenses are presented on an unaudited basis. | |||||
Jacksonville 53 [Member] | ||||||
Real Estate Disclosure [Text Block] | 1. DESCRIPTION OF REAL ESTATE PROPERTY On March 13, 2015, Reven Housing REIT, Inc. (the “Company”), through a wholly-owned subsidiary, closed on the acquisition of 50 properties located in the Jacksonville, Florida metropolitan area, pursuant to that Single Family Homes Real Estate Purchase and Sale Agreement dated January 30, 2015 (the “Jacksonville 53 Agreement”) between the Company and ADCIP, LLC, a Delaware limited liability company, ADCIP II, LLC, a Delaware limited liability company, APICDA, LLC, a Delaware limited liability company, BPICDA, LLC, a Delaware limited liability company, CPICDA, LLC, a Delaware limited liability company, DPICDA, LLC, a Delaware limited liability company, EPICDA, LLC, a Delaware limited liability company, FPICDA, LLC, a Delaware limited liability company (collectively, the “Jacksonville 53 Sellers”). An additional 3 properties were purchased on April 8, 2015 from the same sellers under the same agreement. The 53 acquired properties are part of a portfolio of 62 single-family homes subject to the Jacksonville 53 Agreement, of which the Company decided to acquire only 53 properties. The Jacksonville 53 Sellers do not have a material relationship with the Company and the acquisition was not an affiliated transaction. The contract purchase price for the 53 acquired properties was approximately $ 3,534,263 3,526,985 Reven Housing REIT is a Maryland corporation formed to invest in and manage a diverse portfolio of single family homes located throughout the United States. | |||||
Jacksonville 140 [Member] | ||||||
Real Estate Disclosure [Text Block] | 1. DESCRIPTION OF REAL ESTATE PROPERTY On February 27, 2015, Reven Housing REIT, Inc. (the “Company”), through a wholly-owned subsidiary, entered into a Single Family Homes Real Estate Purchase and Sale Agreement (the “Agreement”) with ADCIP, LLC, a Delaware limited liability company, and ADCIP II, LLC, a Delaware limited liability company (collectively the “Sellers”), to purchase a portfolio of up to 140 single-family rental homes located in the Jacksonville, Florida, metropolitan area from the Sellers. On September 28, 2015, the Company and Sellers entered into an amendment to the Agreement pursuant to which the parties amended the Agreement to extend the closing date and the Company’s due diligence period to October 15, 2015 for 59 of the homes and December 31, 2015 for the remainder of the homes. On October 14, 2015, the Company completed the purchase of 45 homes in the portfolio for the purchase price of approximately $ 3,057,000 675,039 The contract purchase price for the portfolio is $ 9,417,682 The Company is a Maryland corporation formed to invest in and manage a diverse Portfolio of single family homes located throughout the United States. | |||||
Houston 100 [Member] | ||||||
Real Estate Disclosure [Text Block] | 1. DESCRIPTION OF REAL ESTATE PROPERTY On September 26, 2014, Reven Housing REIT, Inc. (the “Company”), through a wholly-owned subsidiary, entered into a Single Family Homes Real Estate Purchase and Sale Agreement (the “Agreement”) with Red Door Housing, LLC, a Texas limited liability company (the “Seller”), to purchase a portfolio of up to 100 single-family rental homes located in the Houston, Texas, metropolitan area from the Seller. On September 23, 2015, the Company and Seller entered into an amendment to the Agreement pursuant to which the parties amended the Agreement to extend the closing date and the Company’s due diligence period to December 31, 2015. On December 29, 2015, the Company and the Seller further amended the Agreement to extend the closing date and the Company’s due diligence period to March 31, 2016. The contract purchase price for the portfolio is $ 8,800,000 The Company is a Maryland corporation formed to invest in and manage a diverse portfolio of single family homes located throughout the United States. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Houston 150 Homes [Member] | ||||||
Business Description and Basis of Presentation [Text Block] | 2. BASIS OF PRESENTATION The accompanying audited statement of revenues over certain operating expenses for the year ended December 31, 2012 has been prepared to comply with the rules and regulations of the Securities and Exchange Commission (“SEC”). Houston 150 Homes is not a legal entity and the accompanying statements of revenues over certain operating expenses are not representative of the actual operations for the periods presented, as certain revenues and expenses have been excluded on the basis that they may not be comparable to the revenues and expenses Reven Housing REIT expects to incur in the future operations of Houston 150 Homes. Excluded items include interest, depreciation and amortization, and general and administrative costs not directly comparable to the future operations of Houston 150 Homes. The accompanying unaudited statement of revenues over certain operating expenses for the nine months ended September 30, 2013 has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board Accounting Standards Codification and the rules and regulations of the SEC, including the instructions to Form 8-K and Article 3-14 of Regulation S-X. Accordingly, the unaudited statement of revenues over certain operating expenses does not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the statement of revenues over certain operating expenses for the unaudited interim period presented includes all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such period. An audited statement of revenues over certain operating expenses for the year ended December 31, 2012 is being presented for the most recent fiscal year available instead of the two most recent years based on the following factors: (i) Houston 150 Homes was acquired from an unaffiliated party and (ii) based on due diligence of Houston 150 Homes by Reven Housing REIT, management is not aware of any material factors relating to Houston 150 Homes that would cause this financial information not to be indicative of future operating results. | |||||
HOUSTON 18 HOMES [Member] | ||||||
Business Description and Basis of Presentation [Text Block] | 2. BASIS OF PRESENTATION The accompanying audited statement of revenues over certain operating expenses for the year ended December 31, 2013 has been prepared to comply with the rules and regulations of the Securities and Exchange Commission (“SEC”). Houston 18 Homes is not a legal entity and the accompanying statement of revenues over certain operating expenses are not representative of the actual operations for the period presented, as certain revenues and expenses have been excluded on the basis that they may not be comparable to the revenues and expenses Reven Housing REIT expects to incur in the future operations of Houston 18 Homes. Excluded items include interest, depreciation and amortization, and general and administrative costs not directly comparable to the future operations of Houston 18 Homes. An audited statement of revenues over certain operating expenses for the year ended December 31, 2013 is being presented for the most recent fiscal year available instead of the two most recent years based on the following factors: (i) Houston 18 Homes was acquired from an unaffiliated party and (ii) based on due diligence of Houston 18 Homes by Reven Housing REIT, management is not aware of any material factors relating to Houston 18 Homes that would cause this financial information not to be indicative of future operating results. | |||||
Jacksonville 31 [Member] | ||||||
Business Description and Basis of Presentation [Text Block] | 2. BASIS OF PRESENTATION The accompanying audited statement of revenues over certain operating expenses for the year ended December 31, 2013 has been prepared to comply with the rules and regulations of the Securities and Exchange Commission (“SEC”) for inclusion in Form 8-K/A. Jacksonville 31 Homes is not a legal entity and the accompanying statements of revenues over certain operating expenses are not representative of the actual operations for the periods presented, as certain revenues and expenses have been excluded on the basis that they may not be comparable to the revenues and expenses Reven Housing REIT expects to incur in the future operations of Jacksonville 31 Homes. Excluded items include interest, depreciation and amortization, and general and administrative costs not directly comparable to the future operations of Jacksonville 31 Homes. The accompanying unaudited statement of revenues over certain operating expenses for the six months ended June 30, 2014 has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board Accounting Standards Codification and the rules and regulations of the SEC, including the instructions to Form 8-K and Article 3-14 of Regulation S-X. Accordingly, the unaudited statement of revenues over certain operating expenses does not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the statement of revenues over certain operating expenses for the unaudited interim period presented includes all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such period. Operating results for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. An audited statement of revenues over certain operating expenses for the year ended December 31, 2013 is being presented for the most recent fiscal year available instead of the two most recent years based on the following factors: (i) Jacksonville 31 Homes was acquired from an unaffiliated party and (ii) based on due diligence of Jacksonville 31 Homes by Reven Housing REIT, management is not aware of any material factors relating to Jacksonville 31 Homes that would cause this financial information not to be indicative of future operating results. | |||||
Memphis 60 [Member] | ||||||
Business Description and Basis of Presentation [Text Block] | 2. BASIS OF PRESENTATION The accompanying audited statement of revenues over certain operating expenses for the year ended December 31, 2013 has been prepared to comply with the rules and regulations of the Securities and Exchange Commission (“SEC”). Memphis 60 Homes is not a legal entity and the accompanying statements of revenues over certain operating expenses are not representative of the actual operations for the periods presented, as certain revenues and expenses have been excluded on the basis that they may not be comparable to the revenues and expenses Reven Housing REIT expects to incur in the future operations of Memphis 60 Homes. Excluded items include interest, depreciation and amortization, and general and administrative costs not directly comparable to the future operations of Memphis 60 Homes. The accompanying unaudited statement of revenues over certain operating expenses for the six months ended June 30, 2014 has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board Accounting Standards Codification and the rules and regulations of the SEC, including the instructions to Form 8-K and Article 3-14 of Regulation S-X. Accordingly, the unaudited statement of revenues over certain operating expenses does not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the statement of revenues over certain operating expenses for the unaudited interim period presented includes all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such period. Operating results for the six months ended June 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. An audited statement of revenues over certain operating expenses for the year ended December 31, 2013 is being presented for the most recent fiscal year available instead of the two most recent years based on the following factors: (i) Memphis 60 Homes was acquired from an unaffiliated party and (ii) based on due diligence of Memphis 60 Homes by Reven Housing REIT, management is not aware of any material factors relating to Memphis 60 Homes that would cause this financial information not to be indicative of future operating results. | |||||
Memphis 21 [Member] | ||||||
Business Description and Basis of Presentation [Text Block] | 2. BASIS OF PRESENTATION The accompanying audited statement of revenues over certain operating expenses has been prepared to comply with the rules and regulations of the Securities and Exchange Commission (“SEC”). Memphis 21 Homes is not a legal entity and the accompanying statements of revenues over certain operating expenses are not representative of the actual operations for the periods presented, as certain revenues and expenses have been excluded on the basis that they may not be comparable to the revenues and expenses Reven Housing REIT expects to incur in the future operations of Memphis 21 Homes. Excluded items include interest, depreciation and amortization, and general and administrative costs not directly comparable to the future operations of Memphis 21 Homes. The accompanying unaudited statement of revenues over certain operating expenses for the nine months ended September 30, 2014 has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board Accounting Standards Codification and the rules and regulations of the SEC, including the instructions to Form 8-K and Article 3-14 of Regulation S-X. Accordingly, the unaudited statement of revenues over certain operating expenses does not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the statement of revenues over certain operating expenses for the unaudited interim period presented includes all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such period. Operating results for the nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. An audited statement of revenues over certain operating expenses for the year ended December 31, 2013 is being presented for the most recent fiscal year available instead of the two most recent years based on the following factors: (i) Memphis 21 Homes was acquired from an unaffiliated party and (ii) based on due diligence of Memphis 21 Homes by Reven Housing REIT, management is not aware of any material factors relating to Memphis 21 Homes that would cause this financial information not to be indicative of future operating results. | |||||
Jacksonville 53 [Member] | ||||||
Business Description and Basis of Presentation [Text Block] | 2. BASIS OF PRESENTATION The accompanying audited statement of revenues over certain operating expenses for the year ended December 31, 2014 has been prepared to comply with the rules and regulations of the Securities and Exchange Commission (“SEC”) for inclusion in Form 8-K/A. Jacksonville 53 Homes is not a legal entity and the accompanying statement of revenues over certain operating expenses is not representative of the actual operations for the period presented, as certain revenues and expenses have been excluded on the basis that they may not be comparable to the revenues and expenses Reven Housing REIT expects to incur in the future operations of Jacksonville 53 Homes. Excluded items include interest, depreciation and amortization, and general and administrative costs not directly comparable to the future operations of Jacksonville 53 Homes. An audited statement of revenues over certain operating expenses for the year ended December 31, 2014 is being presented for the most recent fiscal year available instead of the two most recent years based on the following factors: (i) Jacksonville 53 Homes was acquired from an unaffiliated party and (ii) based on due diligence of Jacksonville 53 Homes by Reven Housing REIT, management is not aware of any material factors relating to Jacksonville 53 Homes that would cause this financial information not to be indicative of future operating results. | |||||
Jacksonville 140 [Member] | ||||||
Business Description and Basis of Presentation [Text Block] | 2. BASIS OF PRESENTATION The accompanying audited statement of revenues over certain operating expenses for the year ended December 31, 2014 has been prepared to comply with the rules and regulations of the Securities and Exchange Commission (“SEC”) for inclusion in Form S-11. Jacksonville 140 Homes is not a legal entity and the accompanying statements of revenues over certain operating expenses are not representative of the actual operations for the periods presented, as certain revenues and expenses have been excluded on the basis that they may not be comparable to the revenues and expenses Reven Housing REIT expects to incur in the future operations of Jacksonville 140 Homes. Excluded items include interest, depreciation and amortization, and general and administrative costs not directly comparable to the future operations of Jacksonville 140 Homes. The accompanying unaudited statement of revenues over certain operating expenses for the nine months ended September 30, 2015 has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board Accounting Standards Codification and the rules and regulations of the SEC, including the instructions to Form 8-K and Article 3-14 of Regulation S-X. Accordingly, the unaudited statement of revenues over certain operating expenses does not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the statement of revenues over certain operating expenses for the unaudited interim period presented includes all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such period. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. An audited statement of revenues over certain operating expenses for the year ended December 31, 2014 is being presented for the most recent fiscal year available instead of the two most recent years based on the following factors: (i) Jacksonville 140 Homes is expected to be acquired from an unaffiliated party and (ii) based on due diligence of Jacksonville 140 Homes by Reven Housing REIT, management is not aware of any material factors relating to Jacksonville 140 Homes that would cause this financial information not to be indicative of future operating results. | |||||
Houston 100 [Member] | ||||||
Business Description and Basis of Presentation [Text Block] | 2. BASIS OF PRESENTATION The accompanying audited statement of revenues over certain operating expenses for the year ended December 31, 2014 has been prepared to comply with the rules and regulations of the Securities and Exchange Commission (“SEC”) for inclusion in Form S-11. Houston 100 Homes is not a legal entity and the accompanying statements of revenues over certain operating expenses are not representative of the actual operations for the periods presented, as certain revenues and expenses have been excluded on the basis that they may not be comparable to the revenues and expenses Reven Housing REIT expects to incur in the future operations of Houston 100 Homes. Excluded items include interest, depreciation and amortization, and general and administrative costs not directly comparable to the future operations of Houston 100 Homes. The accompanying unaudited statement of revenues over certain operating expenses for the nine months ended September 30, 2015 has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information as contained within the Financial Accounting Standards Board Accounting Standards Codification and the rules and regulations of the SEC, including the instructions to Form 8-K and Article 3-14 of Regulation S-X. Accordingly, the unaudited statement of revenues over certain operating expenses does not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the statement of revenues over certain operating expenses for the unaudited interim period presented includes all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results for such period. Operating results for the nine months ended September 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. An audited statement of revenues over certain operating expenses for the year ended December 31, 2014 is being presented for the most recent fiscal year available instead of the two most recent years based on the following factors: (i) Houston 100 Homes is expected to be acquired from an unaffiliated party and (ii) based on due diligence of Houston 100 Homes by Reven Housing REIT, management is not aware of any material factors relating to Houston 100 Homes that would cause this financial information not to be indicative of future operating results. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Houston 150 Homes [Member] | ||||||
Business Description and Accounting Policies [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES Houston 150 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. The preparation of financial statements, as described in Note 2 and in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
HOUSTON 18 HOMES [Member] | ||||||
Business Description and Accounting Policies [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES Houston 18 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. The preparation of financial statements, as described in Note 2 and in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Jacksonville 31 [Member] | ||||||
Business Description and Accounting Policies [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES Jacksonville 31 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Memphis 60 [Member] | ||||||
Business Description and Accounting Policies [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES Memphis 60 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Memphis 21 [Member] | ||||||
Business Description and Accounting Policies [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES Memphis 21 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Jacksonville 53 [Member] | ||||||
Business Description and Accounting Policies [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES Jacksonville 53 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. The preparation of financial statements, as described in Note 2 and in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Jacksonville 140 [Member] | ||||||
Business Description and Accounting Policies [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES Jacksonville 140 Homes leases single family homes under operating leases, generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Houston 100 [Member] | ||||||
Business Description and Accounting Policies [Text Block] | 3. SIGNIFICANT ACCOUNTING POLICIES Houston 100 Homes leases single family homes under operating leases, generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. |
NOTES PAYABLE
NOTES PAYABLE | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Debt Disclosure [Text Block] | NOTE 5. NOTES PAYABLE On June 12, 2014, Reven Housing Texas, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of up to $7,570,000 to Silvergate Bank, secured by deeds of trust encumbering the Company’s homes located in Texas. The entire balance of principal and accrued interest is due and payable on July 5, 2019. The note provides for monthly interest only payments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum at September 30, 2015) until July 5, 2016. Thereafter, monthly payments of interest (1.00% over the prime rate) and principal, based on a 25 year amortization rate, will be made until maturity. The note has a prepayment penalty of 3% calculated on principal amounts prepaid prior to July 5, 2016. There is no prepayment penalty on amounts paid after such date. On November 17, 2014, Reven Housing Tennessee, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $3,952,140 to Silvergate Bank, secured by deeds of trust encumbering primarily all of the Company’s homes located in Tennessee. The entire balance of principal and accrued interest is due and payable on December 5, 2019. The note provides for monthly interest only payments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum at September 30, 2015) until December 5, 2016. Thereafter, monthly payments of interest (1.00% over the prime rate) and principal, based on a 25 year amortization rate, will be made until maturity. The note has a prepayment penalty of 3% calculated on principal amounts prepaid prior to December 5, 2016. There is no prepayment penalty on amounts paid after such date. On March 13, 2015, Reven Housing Florida, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $3,526,985 to Silvergate Bank, secured by deeds of trust encumbering a majority of the Company’s homes located in Florida. The entire balance of principal and accrued interest is due and payable on April 5, 2020. The note provides for monthly interest only payments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum at September 30, 2015) until April 5, 2017. Thereafter, monthly payments of interest (1.00% over the prime rate) and principal, based on a 25 year amortization rate, will be made until maturity. The note has a prepayment penalty of 3% calculated on principal amounts prepaid prior to April 5, 2017. There is no prepayment penalty on amounts paid after such date. The terms of the notes also provide for lender reserve accounts for taxes and insurance reserves. As of December 31, 2014, a total of $260,123 was held in these lender escrow accounts. During the first quarter of 2015, the lender waived this requirement and the amounts previously held in escrow have been released to the Company. During the three and nine months ended September 30, 2015, the Company incurred $188,434 and $517,009, respectively, of interest expense related to the notes payable, which includes $24,984 and $68,094, respectively, of amortization of deferred loan fees. During the three and nine months ended September 30, 2014, the Company incurred $50,603 and $66,415, respectively, of interest expense related to the notes payable, which includes $13,326 and $13,326, respectively, of amortization of deferred loan fees. | NOTE 5. NOTES PAYABLE On June 12, 2014, Reven Housing Texas, LLC, a wholly owned subsidiary of the Company, issued a promissory note in the principal amount of up to $7,570,000 to Silvergate Bank, secured by deeds of trust encumbering the Company’s homes located in Texas. The entire balance of principal and accrued interest is due and payable on July 5, 2019. The note provides for monthly interest only payments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum at December 31, 2014) until July 5, 2016. Thereafter, monthly payments of interest and principal, based on a 25 year amortization rate will be made until maturity. The note has a prepayment penalty of 3% calculated on principal amounts prepaid prior to July 5, 2016. There is no prepayment penalty on amounts paid after that date. On November 17, 2014, Reven Housing Tennessee, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $3,952,140 to Silvergate Bank, secured by deeds of trust encumbering the Company’s homes located in Tennessee. The entire balance of principal and accrued interest is due and payable on December 5, 2019. The note provides for monthly interest only payments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum at December 31, 2014) until December 5, 2016. Thereafter, monthly payments of interest and principal, based on a 25 year amortization rate will be made until maturity. The note has a prepayment penalty of 3% calculated on principal amounts prepaid prior to December 5, 2016. There is no prepayment penalty on amounts paid after that date. The terms of the notes also provide for lender reserve accounts for taxes and insurance reserves. As of December 31, 2014, a total of $260,123 was held in these lender escrow accounts. During the year ended December 31, 2014, the Company incurred $194,363 of interest related to the notes payable, which includes $29,052 of amortization of deferred loan fees. 2015 $ 2016 106,635 2017 306,665 2018 319,955 2019 10,788,885 $ 11,522,140 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 12 Months Ended |
Dec. 31, 2014 | |
Convertible Notes Payable [Abstract] | |
Long-term Debt [Text Block] | NOTE 6. 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. 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 was issued to an officer, $350,000 was 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 7), convertible notes with a principal balance of $902,176 were exchanged for 225,546 shares of common stock at a conversion price of $4.00 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, $291,920 was recorded to additional paid-in capital and debt discount during 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 $563,253 and is included as a separate expense on the Consolidated Statements of Operations for the year ended December 31, 2013. Additionally in connection with the Company’s private placement, the number of Warrants issued and outstanding to the note holders was set at 263,588 shares at an exercise price of $4.00 per share. The warrants will expire on September 27, 2018, if not exercised prior to that date. A summary of the assumptions used to value the warrants and the beneficial conversion feature are as follows: 2013 Risk-free interest rate 1.40 % Expected stock volatility 47 % Time to expiration (years) 5 Fair value of common stock $ 4.00 Expected dividends $ 0.00 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | ||
Stockholders Equity Note Disclosure [Text Block] | NOTE 6. STOCKHOLDERS’ EQUITY On November 5, 2014, the Company effected a 1-for-20 reverse stock split of issued common stock. In conjunction with the reverse stock split, the Board of Directors approved a change in the number of authorized common shares from 600,000,000 to 100,000,000, which change was made immediately after the effectiveness of the reverse stock split. Additionally, the par value of the shares was modified from $.02 to $.001 per share so that the par value per share of the common stock before the reverse stock split and after the reverse stock split remained at $.001 per share. References in these condensed consolidated financial statements and notes have been adjusted to retroactively account for the effects of the reverse split. The Company currently has warrants outstanding allowing its holders to purchase up to 263,588 shares of the Company’s common stock at an exercise price of $4.00 per share. The warrants will expire on September 27, 2018, if not exercised prior to that date. No warrants were exercised in the nine month periods ended September 30, 2015 and 2014. | NOTE 7. 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 6,250,000 4.00 25 3,750,000 15,000,000 460,918 14,539,082 50,000 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 4.00 225,546 902,176 152,176 82,071 Additionally in connection with the Company’s private placement, the number of Warrants issued and outstanding to the note holders was set at 263,588 4.00 September 27, 2018 On April 4, 2014, in a separate follow-on private placement to the September 27, 2013 private placement, the Company issued an additional 675,000 4.00 2,700,000 5,900,000 1,475,000 4.00 227,729 8,372,271 On November 5, 2014, the Company effected a 1-for-20 reverse stock split of issued common stock. In conjunction with the reverse stock split, the Board of Directors approved a change in the number of authorized common shares from 600,000,000 to 100,000,000, which change was effected immediately after the effectiveness of the reverse stock split. Additionally, the par value of the shares was modified from $.02 to $.001 per share .001 |
STOCK COMPENSATION
STOCK COMPENSATION | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE 7. STOCK COMPENSATION On April 4, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 48,750 shares of the Company’s common stock under the 2012 Plan to the members of the Board of Directors as compensation for their past services. These shares were issued to compensate the members for past services and valued at $4.00 per share, based on the grant date fair value, for a total expense of $195,000 which has been included in the Company’s condensed consolidated statement of operations for the nine months ended September 30, 2014. Due to the Company’s low trading volume, the grant date fair value was determined based on similar issuances of stock in the Company’s private placements. On October 16, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 425,000 shares of the Company’s common stock under the 2012 Plan to certain officers and consultants of the Company. The shares issued are subject to restrictions and future vesting conditions based on the Company reaching certain future milestones. None of the shares were vested as of the issuance date. Compensation expense will be recognized in the applicable future periods should the applicable milestones be achieved in accordance with the vesting schedule. At the time of filing, there is no assurance that these milestones will in fact be achieved and that the shares will in fact vest in the future. No expense was recognized during the nine months ended September 30, 2015 and 2014. | NOTE 8. STOCK COMPENSATION On April 4, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 48,750 4.00 195,000 On October 16, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 425,000 |
INCOME TAXES
INCOME TAXES | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Disclosure [Text Block] | NOTE 8. INCOME TAXES 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 recorded a valuation allowance equal to the deferred tax asset at September 30, 2015 and December 31, 2014. At December 31, 2014, the Company had federal and state net operating loss carry-forwards of approximately $1,511,000. The federal and state tax loss carry-forwards will begin to expire in 2032, unless previously utilized. 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. The Company plans to elect REIT status effective for the year ending December 31, 2015, 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. The Company has also incurred current period and prior year net operating losses; thus, it does not expect to incur current income tax expenses. Additionally, due to the Company’s expectations of electing REIT status commencing in 2015, it does not expect to realize any future tax benefits from the current years, or prior years’ operating losses. | NOTE 9. INCOME TAXES 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 recorded a valuation allowance equal to the deferred tax asset at December 31, 2014 and 2013. At December 31, 2014, and December 31, 2013 the Company had federal and state net operating loss carry-forwards of approximately $1,380,000 and $650,000 respectively. The federal and state tax loss carry-forwards will begin to expire in 2032, unless previously utilized. 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. The Company plans to elect REIT status effective for the year ending December 31, 2015, 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. The Company has also incurred current and prior year net operating losses, thus is not expecting to incur current income tax expenses, and due to its expectations of electing REIT status commencing in 2015, is not expected to realize any future tax benefits from the current years, or prior years’ operating losses. 2014 2013 Deferred tax assets: Start-up and acquisition costs $ 400,000 $ 180,000 Net operating losses 640,000 256,000 1,040,000 436,000 2014 2013 Deferred tax liabilities: Depreciation and amortization (14,000 ) Total 1,040,000 422,000 Valuation allowance (1,040,000 ) (422,000 ) Net deferred tax assets $ $ 2014 2013 Tax computed at the federal statutory rate $ (450,000 ) $ (364,000 ) State taxes (80,000 ) (62,000 ) Permanent differences 225,000 Other 9,000 Valuation allowance 530,000 192,000 Total provision $ $ |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Related Party Transactions [Abstract] | ||
Related Party Transactions Disclosure [Text Block] | NOTE 9. RELATED PARTY TRANSACTIONS The Company sub-leases office space on a month-to-month basis from Reven Capital, LLC which is wholly-owned by Chad M. Carpenter, a shareholder of the Company and the Company’s Chief Executive Officer. Rental payments totaled $9,000 and $27,000 for the three and nine months ended September 30, 2015, respectively. Rental payments totaled $9,000 and $25,500 for the three and nine months ended September 30, 2014, respectively. | NOTE 10. RELATED PARTY TRANSACTIONS The Company sub-leases office space on a month-to-month basis from Reven Capital, LLC which is wholly-owned by Chad M. Carpenter, a shareholder of the Company and the Company’s Chief Executive Officer. Rental payments totaled $ 34,555 31,500 148,438 415,315 |
RENTAL INCOME
RENTAL INCOME | 12 Months Ended |
Dec. 31, 2014 | |
Lease Income [Abstract] | |
Lease Income [Text Block] | NOTE 11. RENTAL INCOME The Company generally rents properties under non-cancelable lease agreements with a term of one year. Future minimum rental revenues under existing leases on properties as of December 31, 2014 are expected to be as follows: 2015 $ 1,390,558 2016 608,271 2017 31,063 $ 2,029,892 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 10. COMMITMENTS AND CONTINGENCIES Legal and Regulatory The Company is subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of the Company’s business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s condensed consolidated financial statements and, therefore, no accrual has been recorded as of the nine months ended September 30, 2015 and 2014. Security Deposits As of September 30, 2015 and December 31, 2014, the Company had $382,329 and $306,004, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease. Escrow Deposits and Prepaid Expenses Escrow deposits and prepaid expenses include earnest deposits for the purchase of properties. As of September 30, 2015, the Company had entered into agreements to purchase 240 residential properties for an aggregate amount of approximately $18,118,000 and had corresponding refundable earnest deposits for these purchases of $181,177. At December 31, 2014, the Company had entered into agreements to purchase residential properties for an aggregate amount of $8,700,000 and had corresponding refundable earnest deposits for these purchases of $87,000. However, the Company may not consummate the real estate purchase because properties may fall out of escrow through the closing process for various reasons and these purchases are contingent on the Company’s ability to acquire the debt or equity financing required to fund the acquisition. | NOTE 12. COMMITMENTS AND CONTINGENCIES Legal and Regulatory The Company is subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of the Company’s business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements and, therefore, no accrual has been recorded as of the years ended December 31, 2014 and 2013. Security Deposits As of December 31, 2014 and 2013, the Company had $ 306,004 156,985 Escrow deposits Escrow deposits include earnest deposits for the purchase of properties. As of December 31, 2014, the Company had offers accepted to purchase residential properties for an aggregate amount of $ 8,700,000 87,000 | ||||
Houston 150 Homes [Member] | ||||||
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, Houston 150 Homes may become party to legal proceedings that arise in the ordinary course of its business. The Company is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its financial condition or results of operations for the periods presented. | |||||
HOUSTON 18 HOMES [Member] | ||||||
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, Houston 18 Homes may become party to legal proceedings that arise in the ordinary course of its business. The Company is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its financial condition or results of operations for the periods presented. | |||||
Jacksonville 31 [Member] | ||||||
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, Jacksonville 31 Homes may become party to legal proceedings that arise in the ordinary course of its business. The Company is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its financial condition or results of operations for the periods presented | |||||
Memphis 60 [Member] | ||||||
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, Memphis 60 Homes may become party to legal proceedings that arise in the ordinary course of its business. The Company is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its financial condition or results of operations for the periods presented. | |||||
Memphis 21 [Member] | ||||||
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, Memphis 21 Homes may become party to legal proceedings that arise in the ordinary course of its business. The Company is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its financial condition or results of operations for the periods presented. Environmental The Company is not aware of any material environmental liabilities relating to Memphis 21 Homes that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations or other environmental conditions with respect to Memphis 21 Homes could result in future environmental liabilities. | |||||
Jacksonville 53 [Member] | ||||||
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, Jacksonville 53 Homes may become party to legal proceedings that arise in the ordinary course of its business. The Company is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its financial condition or results of operations for the period presented. | |||||
Jacksonville 140 [Member] | ||||||
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, Jacksonville 140 Homes may become party to legal proceedings that arise in the ordinary course of its business. The Company is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its financial condition or results from operations for the periods presented. | |||||
Houston 100 [Member] | ||||||
Commitments and Contingencies Disclosure [Text Block] | 4. COMMITMENTS AND CONTINGENCIES Legal Matters From time to time, Houston 100 Homes may become party to legal proceedings that arise in the ordinary course of its business. The Company is not aware of any legal proceedings of which the outcome is probable or reasonably possible to have a material adverse effect on its financial condition or results from operations for the periods presented. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Subsequent Events [Text Block] | NOTE 11. SUBSEQUENT EVENTS The Company has evaluated subsequent events up until the date of the issuance of these financial statements. Note Payable In October and December 2015, a wholly owned subsidiary of the Company, received $ 4,875,898 5,015,060 139,162 1.00 4.25 3 Recent Investments in Real Estate On October 14, 2015, a wholly owned subsidiary of the Company purchased a portfolio of 45 single family homes, located in the Jacksonville, Florida metropolitan area for approximately $ 3,057,000 9,418,000 | NOTE 13. SUBSEQUENT EVENTS Note Payable On March 13, 2015, Reven Housing Florida, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $ 3,526,985 April 5, 2020 1.00 4.25 25 3 Recent Real Estate Investment Acquisition On March 13, 2015, a wholly owned subsidiary of the Company purchased a portfolio of 50 single family homes, located in the Jacksonville, Florida metropolitan area for $ 3,326,853 4,150,134 Purchase and Sale Agreement On February 27, 2015, a wholly owned subsidiary of the Company entered into a purchase and sale agreement to purchase a portfolio of 140 single family homes, located in the Jacksonville, Florida metropolitan area for $ 9,417,682 | |||
Houston 150 Homes [Member] | |||||
Subsequent Events [Text Block] | 5. SUBSEQUENT EVENTS Reven Housing REIT evaluates subsequent events up until the date the statements of revenues over certain operating expenses are issued. The accompanying statements of revenues over certain operating expenses were issued on May 7, 2015. | ||||
HOUSTON 18 HOMES [Member] | |||||
Subsequent Events [Text Block] | 5. SUBSEQUENT EVENTS Reven Housing REIT evaluates subsequent events up until the date the statements of revenues over certain operating expenses are issued. The accompanying statements of revenues over certain operating expenses were issued on May 11, 2015. | ||||
Jacksonville 31 [Member] | |||||
Subsequent Events [Text Block] | 5. SUBSEQUENT EVENTS Reven Housing REIT evaluates subsequent events up until the date the statements of revenues over certain operating expenses are issued. The accompanying statements of revenues over certain operating expenses were issued on May 18, 2015. | ||||
Memphis 60 [Member] | |||||
Subsequent Events [Text Block] | 5. SUBSEQUENT EVENTS Reven Housing REIT evaluates subsequent events up until the date the statements of revenues over certain operating expenses are issued. The accompanying statements of revenues over certain operating expenses were issued on May 6, 2015. | ||||
Memphis 21 [Member] | |||||
Subsequent Events [Text Block] | 5. SUBSEQUENT EVENTS Reven Housing REIT evaluates subsequent events up until the date the statements of revenues over certain operating expenses are issued. The accompanying statements of revenues over certain operating expenses were issued on January 26, 2015. | ||||
Jacksonville 53 [Member] | |||||
Subsequent Events [Text Block] | 5. SUBSEQUENT EVENTS Reven Housing REIT evaluates subsequent events up until the date the statement of revenues over certain operating expenses is issued. The accompanying statement of revenues over certain operating expenses was issued on May 12, 2015. |
BASIS OF PRESENTATION AND SIG27
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed consolidated interim financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and Article 8 of Regulation S-X of the Securities Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the 2014 Annual Report on Form 10-K filed with the SEC on March 31, 2015. In the opinion of management, the condensed financial statements for the unaudited interim periods presented include all adjustments, which are of a normal and recurring nature, necessary for a fair and consistent presentation of the results of such period. The results of operations for the period ended September 30, 2015 are not necessarily indicative of the operating results for the full year. | Basis of Presentation The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and the rules and regulations of the Securities Exchange Commission (“SEC”). | ||||
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing REIT OP, L.P., Reven Housing GP, LLC, Reven Housing REIT TRS, LLC, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, and Reven Housing Tennessee, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation. | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, and Reven Housing Tennessee, LLC. All significant inter-company accounts and transactions have been eliminated in consolidation. | ||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the condensed 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 revenues and expenses for the periods presented. Accordingly, actual results could differ from those 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 revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates. | ||||
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 condensed consolidated balance sheets, approximates fair value due to their short term nature. The Company’s short term financial instruments consist of cash, rents and other receivables, property tax and insurance reserves, escrow deposits, accounts payable and accrued liabilities, and security deposits. The carrying value of the Company’s notes payable, as reported in the accompanying condensed consolidated balance sheets, approximates fair value due to their floating market interest rate and due to the fact that their security and payment terms are similar to other debt instruments currently being issued. | Financial Instruments The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value due to their short term nature. The Company’s financial instruments consist of cash, rents and other receivables, tax and insurance reserves, escrow deposits, accounts payable and accrued liabilities, and security deposits. | ||||
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior period amounts have been reclassified to conform to the current period’s presentation. | Certain amounts for 2013 have been reclassified to conform to the current year’s presentation. | ||||
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 ASC Topic 805, Business Combinations Buildings and improvements are depreciated over estimated useful lives of approximately 10 27.5 straight-line method 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 periods ended September 30, 2015 and 2014. | Investments in Real Estate The Company accounts for its investments in real estate as business combinations under the guidance of ASC Topic 805, Business Combinations Land, buildings and improvements are recorded at cost. Buildings and improvements are depreciated over estimated useful lives of approximately 27.5 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, 2014 and 2013. | ||||
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash The Company maintains its cash, cash equivalents and escrow deposits at financial institutions. The combined account balances at one or more institutions typically exceed the Federal Depository Insurance Corporation (“FDIC”) insurance coverage, and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance. As of September 30, 2015 and December 31, 2014, the Company did not have any cash equivalents. | Cash The Company maintains its cash, cash equivalents and escrow deposits at financial institutions. The combined account balances at one or more institutions typically exceed the Federal Depository Insurance Corporation (“FDIC”) insurance coverage, and, as a result, there is a concentration of credit risk related to amounts on deposit in excess of FDIC insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance. As of December 31, 2014 and 2013, the Company did not have any 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 managers on behalf of the Company, net of any allowance for amounts deemed uncollectible. The Company has not recognized any allowance for doubtful accounts as of September 30, 2015 and December 31, 2014. | 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 managers on behalf of the Company, net of any allowance for amounts deemed uncollectible. The Company has not recognized any allowance for doubtful accounts as of December 31, 2014 and 2013 | ||||
Tax, Insurance reserves and holdback funds [Policy Text Block] | Property Tax and Insurance Reserves Property tax and insurance reserves represent amounts held in accordance with the terms of the Company’s notes payable for property taxes and insurance. During the first quarter of 2015, the lender waived this requirement and the amounts previously held in escrow have been released to the Company. | Property Tax and Insurance Reserves Tax and insurance reserves represent amounts held in accordance with the terms of the Company’s notes payable for property taxes and insurance. | ||||
Escrow Deposits And Prepaid Expenses, Policy [Policy Text Block] | Escrow Deposits and Prepaid Expenses Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. | Escrow Deposits and Prepaid Expenses Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for property purchases. | ||||
Deferred Loan Fees, Policy [Policy Text Block] | Deferred Loan Fees Costs incurred in the placement of the Company’s debt are deferred and amortized using the effective interest method over the term of the loans as a component of interest expense on the consolidated statements of operations. Deferred loan costs and fees totaled $ 499,768 97,146 24,984 68,094 266,503 13,326 | Deferred Loan Fees Costs incurred in the placement of the Company’s debt are deferred and amortized using the effective interest method over the term of the loans as a component of interest expense on the consolidated statements of operations. Deferred loan closing costs and fees totaled $ 362,596 29,052 | ||||
Deferred Stock Issuance Costs [Policy Text Block] | Deferred Stock Issuance Costs Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be performed within one year. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. | Deferred Stock Issuance Costs Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be performed within one year. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement. During the year ended December 31, 2014, $ 227,729 510,918 | ||||
Security Deposits [Policy Text Block] | Security Deposits Security deposits represent amounts deposited by tenants at the inception of the lease. | Security Deposits Security deposits represent amounts deposited by tenants at the inception of the lease. | ||||
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 FASB ASC 470-20, Debt with Conversion and Other Options. | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition The Company’s single family homes are leased under short term rental agreements of generally one year with individual tenants and revenue is recognized over the lease term on a straight-line basis. | Revenue Recognition Property is leased under short term 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 is currently being taxed as a “C” corporation, but intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing with the taxable year ending December 31, 2015. Management believes that the Company will be able to satisfy the requirements for qualification as a REIT. Accordingly, the Company does not expect 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 depends 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 or liabilities 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 September 30, 2015 and December 31, 2014, the Company had no unrecognized tax benefits. | 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, 2014 and 2013, the Company had no unrecognized tax benefits. The Company intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing with the taxable year ended December 31, 2015. Management believes that the Company will be able to satisfy the requirements for qualification as a REIT. Accordingly, the Company does not expect 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 depends 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. | ||||
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 1,650,000 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, and for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. On April 4, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 48,750 On October 16, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 425,000 | 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 1,650,000 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 On April 4, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 48,750 On October 16, 2014, the Board of Directors authorized the issuance of, and the Company issued, an aggregate of 425,000 shares of the Company’s common stock under the 2012 Plan to certain officers and consultants of the Company. The shares issued are subject to restrictions and future vesting conditions based on the Company reaching certain future milestones. None of the shares were vested as of the issuance date. | ||||
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 three and nine months ended September 30, 2015, and 2014, potentially dilutive securities excluded from the calculations were 263,588 On November 5, 2014, the Company effected a 1-for-20 reverse stock split of the issued common stock. Each stockholder’s percentage ownership and proportional voting power generally remained unchanged as a result of the reverse stock split. All applicable share data, per share amounts and related information in the condensed consolidated financial statements and noted thereto have been adjusted retroactively to give effect to the 1-for-20 reverse stock split. | 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, 2014, and 2013, potentially dilutive securities excluded from the calculations were 263,588 On November 5, 2014, the Company effected a 1-for-20 reverse stock split of the issued common stock. Each stockholder’s percentage ownership and proportional voting power generally remained unchanged as a result of the reverse stock split. All applicable share data, per share amounts and related information in the consolidated financial statements and noted thereto have been adjusted retroactively to give effect to the 1-for-20 reverse stock split | ||||
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements The Company is currently evaluating 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. | New Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014-09 Revenue from Contracts with Customers, or ASU No. 2014-09, which will supersede nearly all existing revenue recognition guidance under GAAP. ASU No. 2014-09 provides that an entity recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This update also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments, and assets recognized from costs incurred to obtain or fulfill a contract. ASU No. 2014-09 allows for either full retrospective or modified retrospective adoption and will become effective for the Company in the fourth quarter of 2016. In April 2014, the FASB issued Accounting Standards Update, or ASU, No. 2014-08, which amends the definition of a discontinued operation in Codification Topic Presentation of Financial Statements (“ASC 205”) to change the criteria for reporting discontinued operations and enhance disclosure requirements. Under ASU No. 2014-08, only disposals representing a strategic shift that has (or will have) a major effect on an entity’s operations and financial results should be presented as discontinued operations. ASU No. 2014-08 is effective for interim or annual periods beginning on or after December 14, 2014, with early adoption permitted. The Company is currently assessing the impact, if any, the guidance will have upon adoption. 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. | ||||
Houston 150 Homes [Member] | ||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements, as described in Note 2 and in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Houston 150 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. | |||||
HOUSTON 18 HOMES [Member] | ||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements, as described in Note 2 and in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Houston 18 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. | |||||
Jacksonville 31 [Member] | ||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Jacksonville 31 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. | |||||
Memphis 60 [Member] | ||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Memphis 60 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. | |||||
Memphis 21 [Member] | ||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Memphis 21 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. | |||||
Jacksonville 53 [Member] | ||||||
Use of Estimates, Policy [Policy Text Block] | The preparation of financial statements, as described in Note 2 and in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Jacksonville 53 Homes leases single family homes under operating leases generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. | |||||
Jacksonville 140 [Member] | ||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Jacksonville 140 Homes leases single family homes under operating leases, generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. | |||||
Houston 100 [Member] | ||||||
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements, as described in Note 2 and in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of revenues and expenses during the reporting periods. Actual results could materially differ from those estimates. | |||||
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Houston 100 Homes leases single family homes under operating leases, generally with terms of one year or less. Rental revenue, net of concessions, is recognized on a straight-line basis over the terms of the leases. |
ORGANIZATION AND OPERATION (Tab
ORGANIZATION AND OPERATION (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Organization And Operation [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 Restated As previously 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 $ (1.03 ) $ (0.80 ) $ (0.23 ) 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 |
INVESTMENTS IN REAL ESTATE (Tab
INVESTMENTS IN REAL ESTATE (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Real Estate Investment Property, Net [Abstract] | ||
Schedule of Real Estate Properties [Table Text Block] | The following table summarizes the Company’s investments in real estate: Number Land Buildings and Total Total at December 31, 2014 395 $ 5,422,647 $ 23,961,608 $ 29,384,255 Purchases and improvements during 2015: Jacksonville, FL 78 785,680 4,533,332 5,319,012 Memphis, TN 47,160 47,160 Houston, TX 20,222 20,222 Atlanta, GA 2,150 2,150 Total at September 30, 2015 473 $ 6,208,327 $ 28,564,472 $ 34,772,799 | The following table summarizes the Company’s investments in real estate: Number of Land Buildings and Total Accumulated Investments in Total at December 31, 5 $ 67,019 $ 276,391 $ 343,410 $ (1,400 ) $ 342,010 Purchases and improvements during 2013: Houston, TX 150 2,394,359 9,198,173 11,592,532 (55,750 ) 11,536,782 Atlanta, GA 4 52,631 210,797 263,428 (16,800 ) 246,628 Total at December 31, 2013 (Restated) 159 $ 2,514,009 $ 9,685,361 $ 12,199,370 $ (73,950 ) $ 12,125,420 Purchases and improvements during 2014: Houston, TX 18 319,500 1,236,765 1,556,265 (375,533 ) 1,180,732 Jacksonville, FL 123 1,506,938 6,865,952 8,372,890 (50,239 ) 8,322,651 Memphis, TN 95 1,082,200 6,160,183 7,242,383 (74,474 ) 7,167,909 Atlanta, GA improvements 13,347 13,347 (17,918 ) (4,571 ) Total at December 31, 395 $ 5,422,647 $ 23,961,608 $ 29,384,255 $ (592,114 ) $ 28,792,141 |
Business Acquisition, Pro Forma Information [Table Text Block] | The following table summarizes, on an unaudited pro forma basis, the combined results of operations of the Company for the nine months ended September 30, 2015 and 2014 prepared to give effect if all of the Company’s acquisitions of properties in 2014 and 2015 occurred on January 1, 2014. This pro forma information does not purport to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. For the Nine Months Ended 2015 2014 Rental revenue $ 3,732,192 $ 3,625,362 Rental expenses $ 1,745,406 $ 1,619,280 Depreciation and amortization $ 901,587 $ 903,331 Net loss $ (1,164,711 ) $ (630,941 ) Net loss per share, basic and fully diluted $ (0.17 ) $ (0.11 ) Weighted average number of common shares outstanding, basic and fully diluted 7,016,796 5,610,265 | This pro forma information does not purport to represent what the actual results of operations of the Company would have been had these acquisitions occurred on this date, nor does it purport to predict the results of operations for future periods. For the Years Ended 2014 2013 Rental revenue $ 4,099,056 $ 3,809,558 Rental expenses $ 1,210,800 $ 1,392,361 Depreciation and amortization $ 1,044,132 $ 1,044,000 Net loss $ (1,087,465 ) $ (558,287 ) Net loss per share, basic and fully diluted $ (0.18 ) $ (0.42 ) Weighted average number of common shares outstanding, basic and fully diluted 5,946,159 1,336,614 |
ACCOUNTS PAYABLE AND ACCRUED 30
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accounts Payable and Accrued Liabilities [Abstract] | ||
Schedule of Accrued Liabilities [Table Text Block] | At September 30, 2015 and December 31, 2014, accounts payable and accrued liabilities consisted of the following: 2015 2014 Accounts payable $ 264,752 $ 12,673 Property taxes payable 498,909 292,290 Accrued legal, board fees and other expenses 312,504 372,389 Interest payable 53,310 40,810 $ 1,129,475 $ 718,162 | At December 31, 2014 and 2013, accounts payable and accrued liabilities consisted of the following: 2014 2013 Accounts payable $ 12,673 $ 89,666 Property taxes payable 292,290 196,141 Accrued legal, board fees and other expenses 372,389 61,372 Interest payable 40,810 $ 718,162 $ 347,179 |
NOTES PAYABLE (Tables)
NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | 2015 $ 2016 106,635 2017 306,665 2018 319,955 2019 10,788,885 $ 11,522,140 |
CONVERTIBLE NOTES PAYABLE (Tabl
CONVERTIBLE NOTES PAYABLE (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Convertible Notes Payable [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: 2013 Risk-free interest rate 1.40 % Expected stock volatility 47 % Time to expiration (years) 5 Fair value of common stock $ 4.00 Expected dividends $ 0.00 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2014 2013 Deferred tax assets: Start-up and acquisition costs $ 400,000 $ 180,000 Net operating losses 640,000 256,000 1,040,000 436,000 2014 2013 Deferred tax liabilities: Depreciation and amortization (14,000 ) Total 1,040,000 422,000 Valuation allowance (1,040,000 ) (422,000 ) Net deferred tax assets $ $ |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Expected income tax (benefit) by applying the statutory income tax rate to net loss differs from the actual tax provision as follows: 2014 2013 Tax computed at the federal statutory rate $ (450,000 ) $ (364,000 ) State taxes (80,000 ) (62,000 ) Permanent differences 225,000 Other 9,000 Valuation allowance 530,000 192,000 Total provision $ $ |
RENTAL INCOME (Tables)
RENTAL INCOME (Tables) | 12 Months Ended |
Dec. 31, 2014 | |
Lease Income [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | NOTE 11. RENTAL INCOME The Company generally rents properties under non-cancelable lease agreements with a term of one year. Future minimum rental revenues under existing leases on properties as of December 31, 2014 are expected to be as follows: 2015 $ 1,390,558 2016 608,271 2017 31,063 $ 2,029,892 |
ORGANIZATION AND OPERATION (Det
ORGANIZATION AND OPERATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Consolidated Balance Sheet | ||||||||||
Buildings and improvements | $ 28,564,472 | $ 28,564,472 | $ 23,961,608 | $ 9,685,361 | $ 276,391 | |||||
Accumulated depreciation | (1,343,323) | [1] | (1,343,323) | [1] | (592,114) | (73,950) | (1,400) | |||
Investment in real estate, net | 33,429,476 | [1] | 33,429,476 | [1] | 28,792,141 | 12,125,420 | 342,010 | |||
Lease origination costs | 186,046 | [1] | 186,046 | [1] | 168,145 | 75,038 | ||||
Total Assets | 36,328,098 | [1] | 36,328,098 | [1] | 33,811,133 | 14,531,149 | ||||
Accumulated deficit | (4,841,143) | [1] | (4,841,143) | [1] | (3,343,485) | (2,014,056) | ||||
Total Stockholders' Equity | 19,767,169 | [1] | 19,767,169 | [1] | 21,264,827 | 14,026,985 | $ (283,496) | |||
Total Liabilities and Stockholders' Equity | 36,328,098 | [1] | 36,328,098 | [1] | 33,811,133 | 14,531,149 | ||||
Consolidated Statement of Operations | ||||||||||
Real estate acquisition costs | 362,447 | 454,554 | [2] | 279,965 | ||||||
Depreciation and amortization | 295,344 | $ 240,650 | 848,587 | $ 430,325 | 613,572 | [2] | 96,812 | |||
Total operating expenses | 1,534,973 | 1,138,680 | 5,099,850 | 2,683,013 | 3,949,557 | [2] | 1,714,940 | |||
Net loss | $ (315,554) | $ (397,902) | $ (1,497,658) | $ (966,255) | $ (1,329,429) | [2] | $ (1,372,697) | |||
Net loss per share | $ (0.04) | $ (0.06) | $ (0.21) | $ (0.17) | $ (0.22) | $ (1.03) | ||||
Consolidated Statement of Cash Flows | ||||||||||
Net loss | $ (315,554) | $ (397,902) | $ (1,497,658) | $ (966,255) | $ (1,329,429) | [2] | $ (1,372,697) | |||
Depreciation and amortization | 848,587 | 430,325 | 613,572 | 96,812 | ||||||
Net cash used in operating activities | 176,461 | (110,971) | (740,860) | (767,899) | ||||||
Acquisitions of investments in real estate | (5,388,544) | (9,808,865) | (17,184,885) | (11,855,960) | ||||||
Lease origination costs | (115,279) | (123,569) | (188,515) | (99,300) | ||||||
Net cash used in investing activities | $ (5,588,517) | $ (10,677,851) | $ (17,373,400) | (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 | 74,800 | |||||||||
Total operating expenses | 1,412,963 | |||||||||
Net loss | $ (1,070,720) | |||||||||
Net loss per share | $ (0.80) | |||||||||
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) | |||||||||
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 | 22,012 | |||||||||
Total operating expenses | 301,977 | |||||||||
Net loss | $ (301,977) | |||||||||
Net loss per share | $ (0.23) | |||||||||
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 | |||||||||
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. | |||||||||
[2] | Reflects our historical consolidated statement of operations for the year ended December 31, 2014 included elsewhere in this prospectus. |
ORGANIZATION AND OPERATION (D36
ORGANIZATION AND OPERATION (Details Textual) | Sep. 30, 2015Number | Dec. 31, 2014Number | Dec. 31, 2013Number | Dec. 31, 2012Number |
Number of Real Estate Properties | 473 | 395 | 159 | 5 |
Wholly Owned Properties [Member] | ||||
Number of Real Estate Properties | 395 |
BASIS OF PRESENTATION AND SIG37
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | Nov. 05, 2014 | Nov. 05, 2014 | Oct. 16, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 04, 2014 | ||
Accounting Policies [Line Items] | |||||||||||||
Amortization of Financing Costs | $ 24,984 | $ 13,326 | $ 0 | $ 68,094 | $ 13,325 | $ 29,052 | $ 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,650,000 | 1,650,000 | 1,650,000 | ||||||||||
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, and for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. | 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 | 263,588 | 263,588 | 263,588 | 263,588 | 263,588 | 263,588 | |||||||
Deferred Finance Costs, Current, Gross | $ 499,768 | $ 266,503 | $ 499,768 | $ 266,503 | $ 362,596 | ||||||||
Accumulated Amortization of Current Deferred Finance Costs | 97,146 | 97,146 | 29,052 | ||||||||||
Stockholders' Equity, Reverse Stock Split | Company effected a 1-for-20 reverse stock split of the issued common stock. Each stockholders percentage ownership and proportional voting power generally remained unchanged as a result of the reverse stock split. All applicable share data, per share amounts and related information in the consolidated financial statements and noted thereto have been adjusted retroactively to give effect to the 1-for-20 reverse stock split | the Company effected a 1-for-20 reverse stock split of issued common stock. In conjunction with the reverse stock split, the Board of Directors approved a change in the number of authorized common shares from 600,000,000 to 100,000,000, which change was effected immediately after the effectiveness of the reverse stock split. Additionally, the par value of the shares was modified from $.02 to $.001 per share | |||||||||||
Deferred Offering Costs | $ 554,990 | [1] | $ 554,990 | [1] | $ 535,450 | $ 35,000 | |||||||
Property, Plant and Equipment, Depreciation Methods | straight-line method | straight-line method | |||||||||||
Common Stock [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 48,750 | ||||||||||||
Additional Paid-in Capital [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Deferred Offering Costs | $ 227,729 | $ 510,918 | |||||||||||
Land, Buildings and Improvements [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | ||||||||||||
Land, Buildings and Improvements [Member] | Maximum [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Property, Plant and Equipment, Useful Life | 27 years 6 months | ||||||||||||
Land, Buildings and Improvements [Member] | Minimum [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Property, Plant and Equipment, Useful Life | 10 years | ||||||||||||
Incentive Compensation Plan 2012 [Member] | |||||||||||||
Accounting Policies [Line Items] | |||||||||||||
Stock Issued During Period, Shares, Issued for Services | 425,000 | ||||||||||||
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |
INVESTMENTS IN REAL ESTATE (Det
INVESTMENTS IN REAL ESTATE (Details) | Sep. 30, 2015USD ($)Number$ / Number | Dec. 31, 2014USD ($)Number | Dec. 31, 2013USD ($)Number | Dec. 31, 2012USD ($)Number | |
Real Estate Properties [Line Items] | |||||
Number of Homes | Number | 473 | 395 | 159 | 5 | |
Land | $ 6,208,327 | [1] | $ 5,422,647 | $ 2,514,009 | $ 67,019 |
Building and Improvements | 28,564,472 | 23,961,608 | 9,685,361 | 276,391 | |
Total Investments in Real Estate | 34,772,799 | [1] | 29,384,255 | 12,199,370 | 343,410 |
Accumulated Depreciation | (1,343,323) | [1] | (592,114) | (73,950) | (1,400) |
Investments in Real Estate Net | $ 33,429,476 | [1] | $ 28,792,141 | $ 12,125,420 | $ 342,010 |
Houston, TX [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of Homes | 0 | 18 | 150 | ||
Land | $ 0 | $ 319,500 | $ 2,394,359 | ||
Building and Improvements | 20,222 | 1,236,765 | 9,198,173 | ||
Total Investments in Real Estate | $ 20,222 | 1,556,265 | 11,592,532 | ||
Accumulated Depreciation | (375,533) | (55,750) | |||
Investments in Real Estate Net | $ 1,180,732 | $ 11,536,782 | |||
Jacksonville, FL [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of Homes | Number | 78 | 123 | |||
Land | $ 785,680 | $ 1,506,938 | |||
Building and Improvements | 4,533,332 | 6,865,952 | |||
Total Investments in Real Estate | $ 5,319,012 | 8,372,890 | |||
Accumulated Depreciation | (50,239) | ||||
Investments in Real Estate Net | $ 8,322,651 | ||||
Memphis, TN [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of Homes | 0 | 95 | |||
Land | $ 0 | $ 1,082,200 | |||
Building and Improvements | 47,160 | 6,160,183 | |||
Total Investments in Real Estate | $ 47,160 | 7,242,383 | |||
Accumulated Depreciation | (74,474) | ||||
Investments in Real Estate Net | $ 7,167,909 | ||||
Atlanta, GA [Member] | |||||
Real Estate Properties [Line Items] | |||||
Number of Homes | 0 | 0 | 4 | ||
Land | $ 0 | $ 0 | $ 52,631 | ||
Building and Improvements | 2,150 | 13,347 | 210,797 | ||
Total Investments in Real Estate | $ 2,150 | 13,347 | 263,428 | ||
Accumulated Depreciation | (17,918) | (16,800) | |||
Investments in Real Estate Net | $ (4,571) | $ 246,628 | |||
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |
INVESTMENTS IN REAL ESTATE (D39
INVESTMENTS IN REAL ESTATE (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Real Estate Properties [Line Items] | ||||||||
Rental revenue | $ 1,219,419 | $ 740,778 | $ 3,602,192 | $ 1,716,758 | $ 2,599,542 | $ 342,243 | ||
Rental expenses | 1,115,842 | 136,679 | ||||||
Depreciation and amortization | 295,344 | 240,650 | 848,587 | 430,325 | 613,572 | [1] | 96,812 | |
Net loss | $ (315,554) | $ (397,902) | $ (1,497,658) | $ (966,255) | $ (1,329,429) | [1] | $ (1,372,697) | |
Net loss per share, basic and fully diluted (in dollars per share) | $ (0.04) | $ (0.06) | $ (0.21) | $ (0.17) | $ (0.22) | $ (1.03) | ||
Weighted average number of common shares outstanding, basic and fully diluted (in shares) | 7,016,796 | 6,591,796 | 7,016,796 | 5,610,265 | 5,946,159 | 1,336,614 | ||
Real Estate Investment [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental revenue | $ 480,229 | |||||||
Rental expenses | 208,839 | |||||||
Depreciation and amortization | 79,705 | |||||||
Net loss | 191,685 | |||||||
Pro Forma [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Depreciation and amortization | 1,366,712 | $ 1,833,732 | ||||||
Net loss | (1,320,298) | (1,491,572) | ||||||
Pro Forma [Member] | Real Estate Investment [Member] | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental revenue | $ 2,416,908 | 3,732,192 | ||||||
Rental expenses | 1,079,520 | 1,745,406 | ||||||
Depreciation and amortization | 602,221 | 901,587 | ||||||
Net loss | $ (420,627) | $ (1,164,711) | ||||||
Net loss per share, basic and fully diluted (in dollars per share) | $ (0.08) | $ (0.17) | ||||||
Weighted average number of common shares outstanding, basic and fully diluted (in shares) | 5,111,366 | 7,016,796 | ||||||
January 1, 2013 Acquisitions | ||||||||
Real Estate Properties [Line Items] | ||||||||
Rental revenue | 4,099,056 | $ 3,809,558 | ||||||
Rental expenses | 1,210,800 | 1,392,361 | ||||||
Depreciation and amortization | 1,044,132 | 1,044,000 | ||||||
Net loss | $ (1,087,465) | $ (558,287) | ||||||
Net loss per share, basic and fully diluted (in dollars per share) | $ (0.18) | $ (0.42) | ||||||
Weighted average number of common shares outstanding, basic and fully diluted (in shares) | 5,946,159 | 1,336,614 | ||||||
[1] | Reflects our historical consolidated statement of operations for the year ended December 31, 2014 included elsewhere in this prospectus. |
INVESTMENTS IN REAL ESTATE (D40
INVESTMENTS IN REAL ESTATE (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Real Estate Properties [Line Items] | |||||||
Rental Income | $ 1,219,419 | $ 740,778 | $ 3,602,192 | $ 1,716,758 | $ 2,599,542 | $ 342,243 | |
Rental Expenses | 1,115,842 | 136,679 | |||||
Depreciation, Depletion and Amortization, Nonproduction | 295,344 | 240,650 | 848,587 | 430,325 | 613,572 | [1] | 96,812 |
Net Income (Loss) Attributable to Parent, Total | $ (315,554) | $ (397,902) | (1,497,658) | $ (966,255) | (1,329,429) | [1] | $ (1,372,697) |
Real Estate Investment [Member] | |||||||
Real Estate Properties [Line Items] | |||||||
Rental Income | 480,229 | ||||||
Rental Expenses | 208,839 | ||||||
Depreciation, Depletion and Amortization, Nonproduction | 79,705 | ||||||
Net Income (Loss) Attributable to Parent, Total | $ 191,685 | ||||||
2014 Acquisitions | |||||||
Real Estate Properties [Line Items] | |||||||
Rental Income | 830,148 | ||||||
Rental Expenses | 325,736 | ||||||
Depreciation, Depletion and Amortization, Nonproduction | 178,521 | ||||||
Net Income (Loss) Attributable to Parent, Total | $ 325,891 | ||||||
[1] | Reflects our historical consolidated statement of operations for the year ended December 31, 2014 included elsewhere in this prospectus. |
ACCOUNTS PAYABLE AND ACCRUED 41
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts Payable And Accrued Expenses [Line Items] | ||||
Accounts payable | $ 264,752 | $ 12,673 | $ 89,666 | |
Property taxes payable | 498,909 | 292,290 | 196,141 | |
Accrued legal, board fees and other expenses | 312,504 | 372,389 | 61,372 | |
Interest payable | 53,310 | 40,810 | 0 | |
Accounts payable and accrued expenses | $ 1,129,475 | [1] | $ 718,162 | $ 347,179 |
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |
DESCRIPTION OF REAL ESTATE PR42
DESCRIPTION OF REAL ESTATE PROPERTY (Details Textual) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 31, 2013 |
Houston 150 Homes [Member] | ||||||
Business Acquisition, Purchase Price Allocation, Properties Acquired | $ 11,691,832 | |||||
HOUSTON 18 HOMES [Member] | ||||||
Business Acquisition, Purchase Price Allocation, Properties Acquired | $ 1,560,836 | |||||
Jacksonville 31 [Member] | ||||||
Business Acquisition, Purchase Price Allocation, Properties Acquired | $ 2,143,499 | |||||
Memphis 60 [Member] | ||||||
Business Acquisition, Purchase Price Allocation, Properties Acquired | $ 4,725,800 | |||||
Memphis 21 [Member] | ||||||
Business Acquisition, Purchase Price Allocation, Properties Acquired | $ 1,724,909 | |||||
Jacksonville 53 [Member] | ||||||
Business Acquisition, Purchase Price Allocation, Properties Acquired | $ 3,534,263 | |||||
Jacksonville 53 [Member] | Silvergate Bank [Member] | ||||||
Business Acquisition, Purchase Price Allocation, Properties Acquired | $ 3,526,985 | |||||
Jacksonville 140 [Member] | ||||||
Business Acquisition, Purchase Price Allocation, Properties Acquired | $ 9,417,682 | |||||
Houston 100 [Member] | ||||||
Business Acquisition, Purchase Price Allocation, Properties Acquired | $ 8,800,000 |
NOTES PAYABLE (Details)
NOTES PAYABLE (Details) - USD ($) | Sep. 30, 2015 | [1] | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||||
2,015 | $ 0 | |||
2,016 | 106,635 | |||
2,017 | 306,665 | |||
2,018 | 319,955 | |||
2,019 | 10,788,885 | |||
Notes Payable | $ 15,049,125 | $ 11,522,140 | $ 0 | |
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |
NOTES PAYABLE (Details Textual)
NOTES PAYABLE (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 13, 2015 | Nov. 17, 2014 | Jun. 12, 2014 | ||
Notes Payable [Line Items] | |||||||||||
Escrow deposits | $ 0 | $ 0 | $ 260,123 | $ 0 | |||||||
Interest Expense, Debt | 188,434 | $ 50,603 | 517,009 | $ 66,415 | 194,363 | [1] | 77,004 | ||||
Amortization of Financing Costs | $ 24,984 | $ 13,326 | $ 0 | $ 68,094 | $ 13,325 | $ 29,052 | $ 0 | ||||
Reven Housing Texas, LLC [Member] | Silvergate Bank [Member] | |||||||||||
Notes Payable [Line Items] | |||||||||||
Debt Instrument, Annual Principal Payment | $ 7,570,000 | ||||||||||
Debt Instrument, Maturity Date | Jul. 5, 2019 | Jul. 5, 2019 | |||||||||
Debt Instrument, Interest Rate Terms | The note provides for monthly interestonlypayments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum at September 30, 2015) until July 5, 2016. | The note provides for monthly interest only payments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum at December 31, 2014) until July 5, 2016. | |||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 25 years | 25 years | |||||||||
Debt Instrument Prepayment Penalty Percentage | 3.00% | 3.00% | |||||||||
Debt Instrument Prepayment Maturity Date | Jul. 5, 2016 | Jul. 5, 2016 | |||||||||
Reven Housing Tennessee, LLC [Member] | Silvergate Bank [Member] | |||||||||||
Notes Payable [Line Items] | |||||||||||
Debt Instrument, Annual Principal Payment | $ 3,952,140 | ||||||||||
Debt Instrument, Maturity Date | Dec. 5, 2019 | Dec. 5, 2019 | |||||||||
Debt Instrument, Interest Rate Terms | The note provides for monthly interestonly payments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum atSeptember 30, 2015) until December 5, 2016. | The note provides for monthly interest only payments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum at December 31, 2014) until December 5, 2016. | |||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 25 years | 25 years | |||||||||
Debt Instrument Prepayment Penalty Percentage | 3.00% | 3.00% | |||||||||
Debt Instrument Prepayment Maturity Date | Dec. 5, 2016 | Dec. 5, 2016 | |||||||||
Reven Housing Florida, LLC [Member] | Silvergate Bank [Member] | |||||||||||
Notes Payable [Line Items] | |||||||||||
Debt Instrument, Annual Principal Payment | $ 3,526,985 | ||||||||||
Debt Instrument, Maturity Date | Apr. 5, 2020 | Apr. 5, 2020 | |||||||||
Debt Instrument, Interest Rate Terms | The note provides for monthly interest only payments at a rate of 1.00% over the prime rate (interest rate is 4.25% per annum at September 30, 2015) until April 5, 2017. | ||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 25 years | 25 years | |||||||||
Debt Instrument Prepayment Penalty Percentage | 3.00% | ||||||||||
Debt Instrument Prepayment Maturity Date | Apr. 5, 2017 | ||||||||||
[1] | Reflects our historical consolidated statement of operations for the year ended December 31, 2014 included elsewhere in this prospectus. |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details) | 12 Months Ended |
Dec. 31, 2013$ / shares | |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items] | |
Risk -free interest rate | 1.40% |
Expected stock volatility | 47.00% |
Time to expiration (years) | 5 years |
Fair value of common stock | $ 4 |
Expected dividends | $ 0 |
CONVERTIBLE NOTES PAYABLE (De46
CONVERTIBLE NOTES PAYABLE (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||
May. 16, 2014 | Apr. 04, 2014 | Sep. 27, 2013 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Convertible Notes Payable [Line Items] | ||||||
Increase In Equity Capital | $ 5,000,000 | |||||
Warrant Coverage Percentage | 100.00% | |||||
Proceeds from Issuance of Warrants | $ 309,892 | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | 309,891 | |||||
Warrants and Rights Outstanding | 619,783 | |||||
Debt Discount For Allocation Of Proceeds To Warrants And Beneficial Conversion Feature Of Debt | 0 | 291,920 | ||||
Amortization of Debt Discount (Premium) | 0 | 563,253 | ||||
Private Placement [Member] | ||||||
Convertible Notes Payable [Line Items] | ||||||
Stock Issued During Period, Shares, New Issues | 1,475,000 | 675,000 | ||||
Warrants To Purchase Common Stock | 263,588 | |||||
Purchase Of Common Stock Price Per Share | $ 4 | |||||
Investment Warrants Expiration Date | Sep. 27, 2018 | Sep. 27, 2018 | ||||
Warrant [Member] | ||||||
Convertible Notes Payable [Line Items] | ||||||
Debt Discount For Allocation Of Proceeds To Warrants And Beneficial Conversion Feature Of Debt | $ 291,920 | |||||
Increase In Additional Paid In Capital | 619,783 | |||||
Promissory Note Conversion Agreement [Member] | ||||||
Convertible Notes Payable [Line Items] | ||||||
Convertible Notes Payable, Current | $ 902,176 | |||||
Stock Issued During Period, Shares, New Issues | 225,546 | |||||
Debt Instrument, Convertible, Conversion Price | $ 4 | |||||
Long-term Debt, Gross | $ 152,176 | |||||
Debt Instrument, Increase, Accrued Interest | $ 82,071 | |||||
Shareholders' Equity [Member] | ||||||
Convertible Notes Payable [Line Items] | ||||||
Convertible Notes Payable, Current | 52,176 | |||||
Accredited Investors [Member] | ||||||
Convertible Notes Payable [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] | ||||||
Convertible Notes Payable [Line Items] | ||||||
Convertible Notes Payable, Current | $ 652,176 |
STOCKHOLDERS' EQUITY (Details T
STOCKHOLDERS' EQUITY (Details Textual) - USD ($) | Nov. 05, 2014 | Nov. 05, 2014 | May. 16, 2014 | Apr. 04, 2014 | Sep. 27, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
STOCKHOLDERS' EQUITY [Line Items] | |||||||||
Share Price | $ 4 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||
Stockholders' Equity, Reverse Stock Split | Company effected a 1-for-20 reverse stock split of the issued common stock. Each stockholders percentage ownership and proportional voting power generally remained unchanged as a result of the reverse stock split. All applicable share data, per share amounts and related information in the consolidated financial statements and noted thereto have been adjusted retroactively to give effect to the 1-for-20 reverse stock split | the Company effected a 1-for-20 reverse stock split of issued common stock. In conjunction with the reverse stock split, the Board of Directors approved a change in the number of authorized common shares from 600,000,000 to 100,000,000, which change was effected immediately after the effectiveness of the reverse stock split. Additionally, the par value of the shares was modified from $.02 to $.001 per share | |||||||
Stock Issued During Period, Value, New Issues | $ 8,372,271 | $ 14,489,082 | |||||||
Deferred Costs Of Common Stock Issuance | 0 | 50,000 | |||||||
Proceeds from Issuance of Common Stock | $ 0 | $ 8,372,270 | 8,600,000 | 14,539,082 | |||||
Payments of Stock Issuance Costs | $ 19,540 | $ 437,357 | $ 436,558 | 35,000 | |||||
Promissory Note Conversion Agreement [Member] | |||||||||
STOCKHOLDERS' EQUITY [Line Items] | |||||||||
Stock Issued During Period, Shares, New Issues | 225,546 | ||||||||
Common Stock Conversion Price | $ 4 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||
Convertible Notes Payable | $ 902,176 | ||||||||
Long-term Debt, Gross | 152,176 | ||||||||
Debt Instrument, Increase, Accrued Interest | $ 82,071 | ||||||||
Private Placement [Member] | |||||||||
STOCKHOLDERS' EQUITY [Line Items] | |||||||||
Proceeds from Issuance of Private Placement | $ 5,900,000 | $ 2,700,000 | |||||||
Stock Issued During Period, Shares, New Issues | 1,475,000 | 675,000 | |||||||
Share Price | $ 4 | $ 4 | $ 4 | $ 4 | |||||
Other Ownership Interests, Offering Costs | $ 227,729 | ||||||||
Net proceeds | $ 8,372,271 | ||||||||
Warrants To Purchase Common Stock | 263,588 | ||||||||
Investment Warrants Expiration Date | Sep. 27, 2018 | Sep. 27, 2018 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 263,588 | ||||||||
Private Placement [Member] | King APEX Group II, Ltd. and King APEX Group III, Ltd [Member] | |||||||||
STOCKHOLDERS' EQUITY [Line Items] | |||||||||
Proceeds from Issuance of Private Placement | $ 14,539,082 | ||||||||
Stock Issued During Period, Shares, New Issues | 6,250,000 | 3,750,000 | |||||||
Share Price | $ 4 | ||||||||
Stock Issued During Period, Value, New Issues | $ 25,000,000 | $ 15,000,000 | |||||||
Deferred Costs Of Common Stock Issuance | 50,000 | ||||||||
Proceeds from Issuance of Common Stock | 14,489,082 | ||||||||
Payments of Stock Issuance Costs | $ 460,918 |
STOCK COMPENSATION (Details Tex
STOCK COMPENSATION (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Oct. 16, 2014 | Apr. 04, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 05, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation, Total | $ 0 | $ 195,000 | $ 195,000 | $ 0 | |||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||
Incenteve Compensation Plan 2012 [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock Issued During Period, Shares, Issued for Services | 425,000 | 48,750 | |||||
Share-based Compensation, Total | $ 195,000 | $ 195,000 | |||||
Common Stock, Par or Stated Value Per Share | $ 4 | $ 4 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred tax assets: | ||
Start-up and acquisition costs | $ 400,000 | $ 180,000 |
Net operating losses | 640,000 | 256,000 |
Deferred Tax Assets, Gross | 1,040,000 | 436,000 |
Deferred tax liabilities: | ||
Depreciation and amortization | 0 | (14,000) |
Total | 1,040,000 | 422,000 |
Valuation allowance | (1,040,000) | (422,000) |
Net deferred tax assets | $ 0 | $ 0 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | ||
Tax computed at the federal statutory rate | $ (450,000) | $ (364,000) |
State taxes | (80,000) | (62,000) |
Permanent differences | 0 | 225,000 |
Other | 0 | 9,000 |
Valuation allowance | 530,000 | 192,000 |
Total provision | $ 0 | $ 0 |
INCOME TAXES (Details Textual)
INCOME TAXES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Line Items] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $ 1,380,000 | $ 1,380,000 |
Federal Tax Loss Carry Forwards Expiration | expire in 2032 | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | $ 650,000 | $ 650,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |||
Related Party Transaction [Line Items] | ||||||||
Increase (Decrease) In Accounts Payable, Related Parties | $ 0 | $ (266,877) | ||||||
Notes Payable, Total | $ 15,049,125 | [1] | $ 15,049,125 | [1] | 11,522,140 | 0 | ||
Operating Leases, Rent Expense | $ 9,000 | $ 9,000 | $ 27,000 | $ 25,500 | ||||
Chief Executive Officer [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Operating Leases, Rent Expense | $ 34,555 | 31,500 | ||||||
Chad M Carpenter [Member] | ||||||||
Related Party Transaction [Line Items] | ||||||||
Increase (Decrease) In Accounts Payable, Related Parties | 148,438 | |||||||
Notes Payable, Total | $ 415,315 | |||||||
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |
RENTAL INCOME (Details)
RENTAL INCOME (Details) | Dec. 31, 2014USD ($) |
Lease Income [Line Items] | |
2,015 | $ 1,390,558 |
2,016 | 608,271 |
2,017 | 31,063 |
Operating Leases, Future Minimum Payments Receivable | $ 2,029,892 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Secured Debt | $ 382,329 | [1] | $ 306,004 | $ 156,985 |
Payments to Acquire Residential Real Estate | 8,700,000 | |||
Earnest Money Deposits | 181,177 | 87,000 | ||
Purchase Commitment [Member] | ||||
Payments to Acquire Residential Real Estate | $ 18,118,000 | 8,700,000 | ||
Refundable [Member] | ||||
Secured Debt | $ 306,004 | $ 156,985 | ||
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |
SUBSEQUENT EVENTS (Details Text
SUBSEQUENT EVENTS (Details Textual) - USD ($) | Oct. 14, 2015 | Dec. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 15, 2015 | Mar. 13, 2015 | Feb. 27, 2015 | Dec. 31, 2012 | |
Subsequent Event [Line Items] | |||||||||||
Real Estate Investment Property, Net, Total | $ 33,429,476 | [1] | $ 28,792,141 | $ 12,125,420 | $ 342,010 | ||||||
Proceeds From Notes Payable | $ 3,526,985 | $ 7,570,000 | $ 11,522,140 | $ 500,000 | |||||||
Debt Instrument, Interest Rate During Period | 4.25% | 4.25% | |||||||||
Wholly Owned Properties [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Real Estate Investment Property, Net, Total | $ 3,326,853 | $ 9,417,682 | |||||||||
Original Purchase And Sale Agreement [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Real Estate Investment Property, Net, Total | 4,150,134 | ||||||||||
Subsequent Event [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||||||||||
Proceeds Subject To Holdback Agreement | $ 139,162 | ||||||||||
Percentage Of Prepayment Penalty On Principal Amounts | 3.00% | ||||||||||
Proceeds from Other Short-term Debt | $ 4,875,898 | ||||||||||
Proceeds From Notes Payable | $ 5,015,060 | ||||||||||
Debt Instrument, Interest Rate During Period | 1.00% | ||||||||||
Subsequent Event [Member] | 21 Residential Homes | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Real Estate Investment Property, Net, Total | $ 9,418,000 | ||||||||||
Subsequent Event [Member] | Single Family Home Purchase [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Real Estate Investment Property, Net, Total | $ 3,057,000 | ||||||||||
Subsequent Event [Member] | Single Family Home Additional Purchase [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Real Estate Investment Property, Net, Total | $ 675,039 | ||||||||||
Reven Housing Florida, LLC [Member] | Silvergate Bank [Member] | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Debt Instrument Prepayment Penalt Percentage | 3.00% | ||||||||||
Debt Instrument, Annual Principal Payment | $ 3,526,985 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | ||||||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.25% | ||||||||||
Debt Instrument, Convertible, Remaining Discount Amortization Period | 25 years | 25 years | |||||||||
Debt Instrument, Maturity Date | Apr. 5, 2020 | Apr. 5, 2020 | |||||||||
[1] | Reflects our unaudited historical consolidated balance sheet as of September 30, 2015 included elsewhere within this prospectus. |