Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jun. 30, 2014 | Mar. 09, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Owens Realty Mortgage, Inc. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 10,768,000 | ||
Entity Public Float | $204,561,000 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 1556364 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Cash and cash equivalents | $1,413,545 | $8,158,734 |
Restricted cash | 6,248,746 | 4,095,435 |
Loans, net of allowance for losses of $2,869,355 in 2014 and $4,739,088 in 2013 | 65,164,156 | 54,057,205 |
Interest and other receivables | 1,482,380 | 1,673,978 |
Other assets, net of accumulated depreciation and amortization of $1,065,172 in 2014 and $976,090 in 2013 | 1,138,123 | 1,102,683 |
Deferred financing costs, net of accumulated amortization of $253,675 in 2014 | 1,317,585 | 95,000 |
Investment in limited liability company | 2,142,581 | 2,142,582 |
Real estate held for sale | 59,494,339 | 5,890,131 |
Real estate held for investment, net of accumulated depreciation of $6,075,287 in 2014 and $9,599,719 in 2013 | 103,522,466 | 129,425,833 |
Total assets | 241,923,921 | 206,641,581 |
Liabilities: | ||
Dividends payable | 1,292,160 | 180,000 |
Due to Manager | 283,644 | 293,776 |
Accounts payable and accrued liabilities | 2,219,674 | 2,710,745 |
Deferred gains | 362,283 | 3,313,169 |
Lines of credit payable | 11,450,000 | |
Notes and loans payable on real estate | 37,569,549 | 13,917,585 |
Total liabilities | 53,177,310 | 20,415,275 |
Commitments and Contingencies (Note 14) | ||
Stockholders’ equity: | ||
Preferred stock, $.01 par value per share, 5,000,000 shares authorized, no shares issued and outstanding at December 31, 2014 and 2013 | ||
Common stock, $.01 par value per share, 50,000,000 shares authorized, 11,198,119 shares issued, 10,768,001 and 10,794,209 shares outstanding at December 31, 2014 and 2013 | 111,981 | 111,981 |
Additional paid-in capital | 182,437,522 | 182,437,522 |
Treasury stock, at cost – 430,118 and 403,910 shares at December 31, 2014 and 2013 | -5,349,156 | -5,023,668 |
Retained earnings | 7,371,511 | 2,348,575 |
Total stockholders’ equity | 184,571,858 | 179,874,410 |
Noncontrolling interests | 4,174,753 | 6,351,896 |
Total equity | 188,746,611 | 186,226,306 |
Total liabilities and equity | $241,923,921 | $206,641,581 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Loans, allowance for losses (in Dollars) | $2,869,355 | $4,739,088 |
Other assets, accumulated depreciation and amortization (in Dollars) | 1,065,172 | 976,090 |
Deferred financing costs, accumulated amortization (in Dollars) | 253,675 | |
Real estate held for investment, accumulated depreciation (in Dollars) | $6,075,287 | $9,599,719 |
Preferred Stock,par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock,authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 11,198,119 | 11,198,119 |
Common stock,shares outstanding | 10,768,001 | 10,794,209 |
Treasury stock, shares | 430,118 | 403,910 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Revenues: | ||
Interest income on loans secured by trust deeds | $5,382,019 | $3,020,884 |
Gain on foreclosures of loans | 464,754 | 952,357 |
Rental and other income from real estate properties | 12,268,214 | 11,223,260 |
Income from investment in limited liability company | 169,999 | 160,805 |
Other income | 19 | 4,406 |
Total revenues | 18,285,005 | 15,361,712 |
Expenses: | ||
Management fees to Manager | 1,726,945 | 1,664,076 |
Servicing fees to Manager | 156,995 | 151,643 |
General and administrative expense | 1,661,210 | 1,657,467 |
Rental and other expenses on real estate properties | 8,161,434 | 8,170,318 |
Depreciation and amortization | 2,255,577 | 2,485,587 |
Interest expense | 1,161,822 | 513,750 |
Total expenses | 15,123,983 | 14,642,841 |
Operating income | 3,161,022 | 718,871 |
Gain on sales of real estate, net | 3,243,359 | 2,942,861 |
Reversal of provision for loan losses | 1,869,733 | 7,822,112 |
Impairment losses on real estate properties | -179,040 | -666,240 |
Net income | 8,095,074 | 10,817,604 |
Less: Net income attributable to noncontrolling interests | -165,445 | -2,084,707 |
Net income attributable to common stockholders | $7,929,629 | $8,732,897 |
Per common share data: | ||
Basic and diluted earnings per common share (in Dollars per share) | $0.74 | $0.78 |
Basic and diluted weighted average number of common shares outstanding (in Shares) | 10,768,370 | 11,127,820 |
Dividends declared per share of common stock (in Dollars per share) | $0.27 | $0.25 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Parent [Member] | Noncontrolling Interest [Member] | Total |
Balances at Dec. 31, 2012 | $111,981 | $182,985,281 | ($3,637,331) | $179,459,931 | $8,049,300 | $187,509,231 | |
Balances (in Shares) at Dec. 31, 2012 | 11,198,119 | ||||||
Net income | 8,732,897 | 8,732,897 | 2,084,707 | 10,817,604 | |||
Offering costs incurred | -527,785 | -527,785 | -527,785 | ||||
Distribution to stockholders for fractional shares upon conversion | -19,974 | -19,974 | -19,974 | ||||
Dividends declared | -2,746,991 | -2,746,991 | -2,746,991 | ||||
Purchase of treasury stock | -5,023,668 | -5,023,668 | -5,023,668 | ||||
Purchase of treasury stock (in Shares) | -403,910 | ||||||
Contribution from non-controlling interest | 362,593 | 362,593 | |||||
Distributions to non-controlling interests | -4,144,704 | -4,144,704 | |||||
Balances at Dec. 31, 2013 | 111,981 | 182,437,522 | -5,023,668 | 2,348,575 | 179,874,410 | 6,351,896 | 186,226,306 |
Balances (in Shares) at Dec. 31, 2013 | 11,198,119 | -403,910 | |||||
Net income | 7,929,629 | 7,929,629 | 165,445 | 8,095,074 | |||
Dividends declared | -2,906,693 | -2,906,693 | -2,906,693 | ||||
Purchase of treasury stock | -325,488 | -325,488 | -325,488 | ||||
Purchase of treasury stock (in Shares) | -26,208 | ||||||
Contribution from non-controlling interest | 112,533 | 112,533 | |||||
Distributions to non-controlling interests | -2,455,121 | -2,455,121 | |||||
Balances at Dec. 31, 2014 | $111,981 | $182,437,522 | ($5,349,156) | $7,371,511 | $184,571,858 | $4,174,753 | $188,746,611 |
Balances (in Shares) at Dec. 31, 2014 | 11,198,119 | -430,118 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash flows from operating activities: | ||
Net income | $8,095,074 | $10,817,604 |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Gain on sales of real estate, net | -3,243,359 | -2,942,861 |
Gain on foreclosures of loans | -464,754 | -952,357 |
Income from investment in limited liability company | -169,999 | -160,805 |
Reversal of provision for loan losses | -1,869,733 | -7,822,112 |
Impairment losses on real estate properties | 179,040 | 666,240 |
Depreciation and amortization | 2,255,577 | 2,485,587 |
Amortization of deferred financing costs | 132,723 | |
Accretion of discount on loans | -122,004 | |
Changes in operating assets and liabilities: | ||
Interest and other receivables | -944,608 | 407,894 |
Other assets | -118,577 | -42,934 |
Accounts payable and accrued liabilities | -752,081 | -3,059,355 |
Due to Manager | -10,132 | -4,573 |
Net cash provided by (used in) operating activities | 2,967,167 | -607,672 |
Cash flows from investing activities: | ||
Principal collected on loans | 27,718,917 | 15,641,192 |
Investments in loans | -44,805,577 | -19,718,852 |
Investment in real estate properties | -21,605,288 | -7,919,883 |
Net proceeds from disposition of real estate properties | 1,822,020 | 11,052,494 |
Purchases of vehicles and equipment | -22,212 | -31,527 |
Distribution received from investment in limited liability company | 170,000 | 160,000 |
Transfer (to) from restricted cash, net | -2,153,311 | 2,168,675 |
Net cash (used in) provided by investing activities | -38,875,451 | 1,352,099 |
Cash flows from financing activities | ||
Advances on notes payable | 23,331,207 | |
Repayments on notes payable | -800,954 | -467,317 |
Advances on lines of credit | 59,879,345 | |
Repayments of lines of credit | -48,429,345 | |
Payment of deferred financing costs | -354,549 | -95,000 |
Distributions to noncontrolling interests | -2,455,121 | -4,144,704 |
Contribution from noncontrolling interest | 112,533 | 362,593 |
Offering costs incurred and paid | -527,785 | |
Distributions to stockholders for fractional shares | -19,974 | |
Purchase of treasury stock | -325,488 | -5,023,668 |
Dividends paid | -1,794,533 | -3,801,343 |
Net cash provided by (used in) financing activities | 29,163,095 | -13,717,198 |
Net decrease in cash and cash equivalents | -6,745,189 | -12,972,771 |
Cash and cash equivalents at beginning of year | 8,158,734 | 21,131,505 |
Cash and cash equivalents at end of year | 1,413,545 | 8,158,734 |
Supplemental Disclosures of Cash Flow Information | ||
Cash paid during the year for interest (excluding amounts capitalized) | 915,117 | 514,480 |
Cash paid during the year for interest that was capitalized | 213,934 | 163,625 |
Supplemental Disclosure of Non-Cash Activity | ||
Increase in real estate from loan foreclosures | 9,107,652 | 18,650,121 |
Decrease in loans, net of allowance for loan losses, from loan foreclosures | -7,671,446 | -15,609,812 |
Decrease in interest and other receivables from adding balances to loans | -22,880 | |
Decrease in interest and other receivables from loan foreclosures | -1,436,206 | -1,380,309 |
Increase in loans from sales of real estate | 11,900,000 | |
Increase in deferred gains from sales of real estate | -2,344,052 | |
Deferred financing costs paid from notes payable proceeds | 1,121,711 | |
Amortization of deferred financing costs capitalized to construction project | -120,952 | |
Capital expenditures financed through accounts payable | -261,010 | -1,097,450 |
Notes Payable, Other Payables [Member] | ||
Supplemental Disclosure of Non-Cash Activity | ||
Increase in payable from loan foreclosure | -1,000,000 | |
Accounts Payable and Accrued Liabilities [Member] | ||
Supplemental Disclosure of Non-Cash Activity | ||
Increase in payable from loan foreclosure | ($660,000) |
Note_1_Organization
Note 1 - Organization | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 –ORGANIZATION |
Owens Realty Mortgage, Inc. (the “Company”) was incorporated on August 9, 2012, under the laws of the State of Maryland and was authorized to issue 1,000,000 shares of $0.01 par value common stock (the “Common Stock”) at the time of its incorporation. At the time of its incorporation, William C. Owens was issued 1,000 shares of Common Stock, $.01 par value per share, in exchange for cash consideration of $1.00 per share (for total consideration of $1,000). Per the Articles of Amendment and Restatement of the Company dated January 23, 2013, the authorized shares of Common Stock were increased to 50,000,000 shares, $0.01 par value per share. In addition, the Company is now authorized to issue 5,000,000 shares of preferred stock at $0.01 par value per share. The Company was created to effect the merger (the “Merger”) of Owens Mortgage Investment Fund, a California Limited Partnership (“OMIF”) with and into the Company as described in the Registration Statement on Form S-4, as amended, of the Company, declared effective on February 12, 2013 (File No. 333-184392). The Merger was part of a plan to reorganize the business operations of OMIF so that it could elect to qualify as a real estate investment trust for Federal income tax purposes. The Merger was approved by OMIF limited partners on April 16, 2013 and was completed on May 20, 2013. | |
Upon effectiveness of the Merger, the outstanding 1,000 shares of Common Stock of the Company held by William C. Owens were cancelled in exchange for $1,000 and every 25 limited partner units of OMIF were converted into one share of Common Stock of the Company. Additionally, the units representing the general partner interests of Owens Financial Group, Inc. (“OFG”) were treated as follows: i) the 1,496,000 units representing the interest that was an expense of OMIF were cancelled, and ii) the 1,378,256 units representing the interest relating to cash contributions made by OFG to the capital of OMIF were converted into shares of Common Stock of the Company in the same manner limited partnership units were converted into shares of Common Stock. No fractional shares were issued in the Merger; instead, cash adjustments were paid in respect of shares otherwise issuable. The Company now, by virtue of the Merger, directly or indirectly owns all of the assets and business formerly owned by OMIF and is a deemed successor issuer to OMIF pursuant to Rule 12g-3(a) under the Securities Exchange Act of 1934, as amended. For accounting purposes, the merger of OMIF with and into the Company has been treated as a transfer of assets and exchange of shares between entities under common control. The accounting basis used to initially record the assets and liabilities in the Company is the carryover basis of OMIF. The consolidated financial statements reflect the extinguishment of OMIF’s partners’ capital and replacement with 11,198,119 shares of Common Stock and additional paid –in capital as if the Merger occurred on January 1, 2013. | |
The Company has elected to be taxed as a real estate investment trust (“REIT”) under the Internal Revenue Code of 1986, as amended (the “Code”), commencing with the Company’s taxable year ended December 31, 2012. As a REIT, the Company will be permitted to deduct distributions made to its stockholders, allowing its income and gain represented by such distributions to avoid taxation at the entity level and to be taxed generally only at the stockholder level. The Company intends to distribute substantially all of its income and gain. As a REIT, however, the Company will be subject to separate, corporate-level tax, including potential 100% penalty taxes under various circumstances, as well as certain state and local taxes. In addition, the Company’s taxable REIT subsidiaries will be subject to full corporate income tax. Furthermore, the Company’s ability to qualify as a REIT will depend upon its continuing satisfaction of various requirements, such as those related to the diversity of its stock ownership, the nature of its assets, the sources of its income and the distributions to its stockholders, including a requirement that the Company distribute to its stockholders at least 90% of its REIT taxable income on an annual basis (determined without regard to the dividends paid deduction and by excluding net capital gain). |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation | |
The consolidated financial statements include the accounts of the Company and its majority and wholly owned limited liability companies (see Notes 5, 6, 8 and 11). All significant inter-company transactions and balances have been eliminated in consolidation. The Company also has a 50% ownership interest in a limited liability company accounted for under the equity method (see Note 4). The Company is in the business of providing mortgage lending services and manages its business as one operating segment. Due to foreclosure activity, the Company also owns and manages real estate assets. | |
Certain reclassifications have been made to the 2013 consolidated financial statements to conform to the 2014 presentation. None of the reclassifications had an impact on net income. | |
Management Estimates | |
The preparation of financial statements 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 assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates relate principally to the determination of the allowance for loan losses, including the valuation of impaired loans, the valuation of real estate held for sale and investment, and the estimate of the environmental remediation liability (see Notes 5, 6, 14 and 15). Fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves or write-downs. Such estimates are inherently imprecise and actual results could differ significantly from such estimates. | |
Recently Issued Accounting Standards | |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” or ASU 2014-09. ASU 2014-09 broadly amends the accounting guidance for revenue recognition. ASU 2014-09 is effective for the first quarter of 2017, and is to be applied prospectively. Early adoption is not permitted. The Company is currently evaluating the impact that ASU 2014-09 will have on its consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” or ASU 2014-15. ASU 2014-15 introduces an explicit requirement for management to assess and provide certain disclosures if there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for the first quarter of 2017. The Company is currently evaluating the impact that ASU 2014-15 will have on its consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. ASU 2014-08 updated guidance that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. As a result of this new guidance, future dispositions of real estate owned assets may no longer meet the criteria to be considered as discontinued operations. The guidance is effective prospectively as of the first quarter of 2015, with early adoption permitted for new disposals or new classifications as held-for-sale. The Company does not expect that ASU 2014-08 will have a material effect on its consolidated financial statements. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include funds on deposit with financial institutions. | |
Restricted Cash | |
Restricted cash includes contingency reserves required pursuant to the Company’s charter, non-interest bearing deposits required pursuant to the Company’s two lines of credit (see Note 7), the deposit required pursuant to the Company’s construction loan payable (see Note 8) and escrow deposits for property taxes and insurance to be paid on certain Company real estate properties. | |
Concentration of Credit Risk | |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and loans. The Company places its cash and cash equivalents with financial institutions and, at times, cash held may exceed the Federal Deposit Insurance Corporation, or “FDIC”, insured limit. The Company has exposure to credit risk on its loans and other investments. The Company’s Manager, OFG, will seek to manage credit risk by performing analysis of underlying collateral assets. | |
Loans and Allowance for Loan Losses | |
Loans are generally stated at the principal amount outstanding. Advances under the terms of a loan to pay property taxes, insurance, legal and other costs are generally capitalized and reported as interest and other receivables. The Company’s portfolio consists primarily of real estate loans generally collateralized by first, second and third deeds of trust. Interest income on loans is accrued by the simple interest method. Loans are generally placed on nonaccrual status when the borrowers are past due greater than ninety days or when full payment of principal and interest is not expected. When a loan is classified as nonaccrual, interest accruals discontinue and all past due interest remains accrued until the loan becomes current, is paid off or is foreclosed upon. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. Cash receipts on nonaccrual loans are used to reduce any outstanding accrued interest, and then are recorded as interest income, except when such payments are specifically designated as principal reduction or when management does not believe the Company’s investment in the loan is fully recoverable. The Company does not incur origination costs and does not earn or collect origination fees from borrowers as OFG is entitled to all such fees (see Note 12). | |
Loans and the related accrued interest and advances are analyzed by management on a periodic basis for ultimate recovery. The allowance for loan losses is management’s estimate of probable credit losses inherent in the Company’s loan portfolio that have been incurred as of the balance sheet date. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of two primary components: specific reserves related to impaired loans that are individually evaluated for impairment and general reserves for inherent losses related to loans that are not considered impaired and are collectively evaluated for impairment. | |
Regardless of the loan type, a loan is considered impaired when, based on current information and events, management believes it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement or when the monthly payments are delinquent for more than 90 days on a loan. All loans determined to be impaired are individually evaluated for impairment. When a loan is considered impaired, management estimates impairment based on the present value of expected future cash flows discounted at the loan's effective interest rate, except that as a practical expedient, management may measure impairment based on a loan's observable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. These valuations are generally updated during the fourth quarter but may be updated during interim periods if deemed appropriate by management. | |
A restructuring of a debt constitutes a troubled debt restructuring (“TDR”) if the Company for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. Loans that are reported as TDR’s are considered impaired and measured for impairment as described above. | |
The determination of the general reserve for loans that are not considered impaired and are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, and qualitative factors to include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan portfolio, and probable incurred losses inherent in the portfolio taken as a whole. | |
The Company maintains a separate allowance for each portfolio segment (loan type). These portfolio segments include commercial real estate, residential real estate and land loans. The allowance for loan losses attributable to each portfolio segment, which includes both impaired loans that are individually evaluated for impairment and loans that are not considered impaired and are collectively evaluated for impairment, is combined to determine the Company’s overall allowance, which is included on the consolidated balance sheet. The reserve for loans that are not considered impaired consists of reserve factors that are based on management’s assessment of the following for each portfolio segment: (1) inherent credit risk, (2) historical losses, and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below. | |
Land Loans – These loans generally possess a higher inherent risk of loss than other real estate portfolio segments. A major risk arises from the necessity to complete projects within specified costs and time lines. Trends in the construction industry significantly impact the credit quality of these loans as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects. | |
Commercial and Residential Real Estate Loans – Adverse economic developments or an overbuilt market impact commercial and residential real estate projects and may result in troubled loans. Trends in vacancy rates of properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations. | |
Other Assets | |
Other assets primarily include deferred rent, capitalized lease commissions, prepaid expenses, deposits and inventory. Amortization of lease commissions is provided on the straight-line method over the lives of the related leases. | |
Deferred Financing Costs | |
Issuance and other costs related to the Company’s lines of credit and certain notes payable are capitalized and amortized to interest expense under either the straight-line or effective interest methods over the terms of the respective debt instruments. Deferred financing costs related to the construction loan in TOTB North, LLC are being amortized to the construction project under the straight-line method over the term of construction/renovation. | |
Rental Income | |
The Company leases multifamily rental units under operating leases with terms of generally one year or less. Rental revenue is recognized, net of rental concessions, on a straight-line method over the related lease term. Rental income on commercial property is recognized on a straight-line basis over the term of each operating lease. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. | |
Real Estate Held for Sale | |
Real estate held for sale includes real estate acquired in full or partial settlement of loan obligations, generally through foreclosure, that is being marketed for sale. Real estate held for sale is recorded at acquisition at the property’s estimated fair value less estimated costs to sell. Any excess of the recorded investment in the loan over the net realizable value is charged against the allowance for loan losses. Any excess of the net realizable value over the recorded investment in the loan is credited first to the allowance for loan losses as a recovery to the extent charge-offs had been recorded previously and, then, to earnings as gain on foreclosure of loan. | |
After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, real estate held for sale is analyzed periodically for changes in fair values and any subsequent write down is charged to impairment losses on real estate properties. Any recovery in the fair value subsequent to such a write down is recorded (not to exceed the net realizable value at acquisition) as an offset to impairment losses on real estate properties. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. | |
Real Estate Held for Investment | |
Real estate held for investment includes real estate acquired in full or partial settlement of loan obligations, generally through foreclosure, that is not being marketed for sale and is either being operated, such as rental properties; is being managed through the development process, including obtaining appropriate and necessary entitlements, permits and construction; or are idle properties awaiting more favorable market conditions or properties the Company cannot sell without placing the Company’s REIT status at risk or become subject to prohibited transactions penalty tax. Real estate held for investment is recorded at acquisition at the property’s estimated fair value, less estimated costs to sell. | |
After acquisition, costs incurred relating to the development and improvement of the property are capitalized, whereas costs relating to operating or holding the property are expensed. Subsequent to acquisition, management periodically compares the carrying value of real estate to expected undiscounted future cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds future undiscounted cash flows, the assets are reduced to estimated fair value. | |
Depreciation of real estate properties held for investment is provided on the straight-line method over the estimated remaining useful lives of buildings and improvements (5-39 years). Depreciation of tenant improvements is provided on the straight-line method over the shorter of their estimated useful lives or the lease terms. | |
The Company reclassifies real estate properties from held for investment to held for sale in the period in which all of the following criteria are met: 1) Management commits to a plan to sell the property; 2) The property is available for immediate sale in its present condition; 3) An active program to locate a buyer has been initiated; 4) The sale of the property is probable and the transfer of the property is expected to qualify for recognition as a completed sale, within one year; and 5) Actions required to complete the plan indicate it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Such real estate properties are recorded at the time of reclassification at their carrying amounts prior to reclassification or fair value, whichever is lower. This establishes the initial basis at which the properties are accounted for as held for sale, as described above. | |
If circumstances arise that previously were considered unlikely, and, as a result, the Company decides not to sell a real estate property classified as held for sale, the property is reclassified to held for investment. The property is then measured individually at the lower of its carrying amount, adjusted for depreciation or amortization expense that would have been recognized had the property been continuously classified as held for investment, or its fair value at the date of the subsequent decision not to sell. | |
Environmental Remediation Liability | |
Liabilities related to future environmental remediation costs are recorded when remediation or monitoring or both are probable and the costs can be reasonably estimated. The Company’s environmental remediation liability related to the property located in Santa Clara, California (held within 1850 De La Cruz, LLC – see Notes 4 and 15) was recorded based on a third party consultant’s estimate of the costs required to remediate and monitor the contamination. | |
Earnings per Common Share | |
The Company calculates basic earnings per common share by dividing net income attributable to common stockholders for the period by the weighted-average shares of Common Stock outstanding for that period. Diluted earnings per common share takes into effect any dilutive instruments, unless if when doing so such effect would be anti-dilutive. At the present time, the Company has not issued any restricted stock or restricted stock units. | |
Income Taxes | |
The Company has elected to be taxed as a REIT. As a result of the Company’s expected REIT qualification and its distribution policy, the Company does not generally expect to pay U.S. federal corporate level income taxes. Many of the REIT requirements, however, are highly technical and complex. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distribute annually at least 90% of the Company’s REIT taxable income to the Company’s stockholders. If the Company has previously qualified as a REIT and fails to qualify as a REIT in any subsequent taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may be precluded from qualifying as a REIT for the Company’s four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company’s income and property and to U.S. federal income and excise taxes on the Company’s undistributed REIT taxable income. | |
The Company has elected or may elect to treat certain of its existing or newly created corporate subsidiaries as taxable REIT subsidiaries (each a “TRS”). In general, a TRS of a REIT may hold assets that the REIT cannot hold directly and, subject to certain exceptions related to hotels and healthcare properties, may engage in any real estate or non-real estate related business. A TRS is treated as a regular corporation and is subject to federal, state, local and foreign taxes on its income and property. Lone Star Golf, Inc. is treated as a TRS of the Company. | |
ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. | |
Certain entities included in the Company’s consolidated financial statements are subject to certain state and local taxes. These taxes are recorded as general and administrative expenses in the accompanying consolidated financial statements. |
Note_3_Loans_and_Allowance_for
Note 3 - Loans and Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Disclosure Text Block Supplement [Abstract] | |||||||||||||||||||||||||
Allowance for Credit Losses [Text Block] | NOTE 3 - LOANS AND ALLOWANCE FOR LOAN LOSSES | ||||||||||||||||||||||||
The following tables show the changes in the allowance for loan losses by portfolio segment for the years ended December 31, 2014 and 2013 and the allocation of the allowance for loan losses and loans as of December 31, 2014 and 2013 by portfolio segment and by impairment methodology: | |||||||||||||||||||||||||
2014 | Commercial | Residential | Land | Total | |||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Beginning balance | $ | 932,651 | $ | 3,798,203 | $ | 8,234 | $ | 4,739,088 | |||||||||||||||||
Charge-offs | — | — | — | — | |||||||||||||||||||||
(Reversal) Provision | (44,391 | ) | (1,823,091 | ) | (2,251 | ) | (1,869,733 | ) | |||||||||||||||||
Ending balance | $ | 888,260 | $ | 1,975,112 | $ | 5,983 | $ | 2,869,355 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 550,010 | $ | 1,839,345 | $ | — | $ | 2,389,355 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 338,250 | $ | 135,767 | $ | 5,983 | $ | 480,000 | |||||||||||||||||
Ending balance | $ | 888,260 | $ | 1,975,112 | $ | 5,983 | $ | 2,869,355 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||
Ending balance | $ | 52,531,537 | $ | 13,491,906 | $ | 2,010,068 | $ | 68,033,511 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 12,666,935 | $ | 7,788,747 | $ | 1,860,068 | $ | 22,315,750 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 39,864,602 | $ | 5,703,159 | $ | 150,000 | $ | 45,717,761 | |||||||||||||||||
2013 | Commercial | Residential | Land | Total | |||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Beginning balance | $ | 1,493,585 | $ | 4,401,448 | $ | 18,522,864 | $ | 24,417,897 | |||||||||||||||||
Charge-offs | — | — | (11,856,697 | ) | (11,856,697 | ) | |||||||||||||||||||
(Reversal) Provision | (560,934 | ) | (603,245 | ) | (6,657,933 | ) | (7,822,112 | ) | |||||||||||||||||
Ending balance | $ | 932,651 | $ | 3,798,203 | $ | 8,234 | $ | 4,739,088 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 537,743 | $ | 3,087,345 | $ | — | $ | 3,625,088 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 394,908 | $ | 710,858 | $ | 8,234 | $ | 1,114,000 | |||||||||||||||||
Ending balance | $ | 932,651 | $ | 3,798,203 | $ | 8,234 | $ | 4,739,088 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||
Ending balance | $ | 26,158,878 | $ | 27,461,913 | $ | 5,175,502 | $ | 58,796,293 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 16,566,878 | $ | 10,195,725 | $ | 4,975,502 | $ | 31,738,105 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 9,592,000 | $ | 17,266,188 | $ | 200,000 | $ | 27,058,188 | |||||||||||||||||
The following tables show an aging analysis of the loan portfolio by the time monthly payments are past due at December 31, 2014 and 2013: | |||||||||||||||||||||||||
31-Dec-14 | Loans | Loans | Loans | Total Past | Current Loans | Total Loans | |||||||||||||||||||
30-59 Days | 60-89 Days | 90 or More Days | Due Loans | ||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 1,078,752 | $ | 1,078,752 | $ | 51,452,785 | $ | 52,531,537 | |||||||||||||
Residential | — | — | 7,788,747 | 7,788,747 | 5,703,159 | 13,491,906 | |||||||||||||||||||
Land | — | — | 1,860,068 | 1,860,068 | 150,000 | 2,010,068 | |||||||||||||||||||
$ | — | $ | — | $ | 10,727,567 | $ | 10,727,567 | $ | 57,305,944 | $ | 68,033,511 | ||||||||||||||
31-Dec-13 | Loans | Loans | Loans | Total Past | Current Loans | Total Loans | |||||||||||||||||||
30-59 Days | 60-89 Days | 90 or More Days | Due Loans | ||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||
Commercial | $ | — | $ | 690,000 | $ | 5,100,699 | $ | 5,790,699 | $ | 20,368,179 | $ | 26,158,878 | |||||||||||||
Residential | — | — | 10,195,725 | 10,195,725 | 17,266,188 | 27,461,913 | |||||||||||||||||||
Land | — | — | 4,975,502 | 4,975,502 | 200,000 | 5,175,502 | |||||||||||||||||||
$ | — | $ | 690,000 | $ | 20,271,926 | $ | 20,961,926 | $ | 37,834,367 | $ | 58,796,293 | ||||||||||||||
All of the loans that are 90 or more days past due as listed above were on non-accrual status as of December 31, 2014 and 2013. In addition, two commercial loans totaling $11,466,179 that are considered impaired were also on non-accrual status as of December 31, 2013 (total of $31,738,105). These two loans were restored to accrual status during the first quarter of 2014 because the Company had received consistent payments from the borrower over the previous six month period, and management expects that the borrower will continue to keep the loans current with respect to principal and interest payments. These two loans continue to be reported as impaired due to the previous modification of the borrower's terms in a troubled debt restructuring. There is an unamortized discount on one of these loans in the amount of approximately $537,000 and $659,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The following tables show information related to impaired loans as of and for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||
As of December 31, 2014 | Year Ended December 31, 2014 | ||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 11,588,183 | $ | 11,588,183 | $ | — | $ | 16,686,997 | $ | 1,714,230 | |||||||||||||||
Residential | 253,747 | 253,747 | — | 1,986,693 | 688,196 | ||||||||||||||||||||
Land | 1,860,068 | 1,860,068 | — | 2,440,015 | 173,484 | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | 1,079,699 | 1,078,752 | 550,010 | 1,079,681 | 47,958 | ||||||||||||||||||||
Residential | 7,983,345 | 7,535,000 | 1,839,345 | 7,983,366 | 150,000 | ||||||||||||||||||||
Land | — | — | — | — | — | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial | $ | 12,667,882 | $ | 12,666,935 | $ | 550,010 | $ | 17,766,678 | $ | 1,762,188 | |||||||||||||||
Residential | $ | 8,267,092 | $ | 7,788,747 | $ | 1,839,345 | $ | 9,970,059 | $ | 838,196 | |||||||||||||||
Land | $ | 1,860,068 | $ | 1,860,068 | $ | — | $ | 2,440,015 | $ | 173,484 | |||||||||||||||
As of December 31, 2013 | Year Ended December 31, 2013 | ||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 16,212,899 | $ | 15,488,126 | $ | — | $ | 10,880,512 | $ | 704,623 | |||||||||||||||
Residential | 2,734,228 | 2,660,725 | — | 2,841,401 | 134,702 | ||||||||||||||||||||
Land | 5,017,839 | 4,975,502 | — | 4,984,885 | 259,281 | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | 1,079,699 | 1,078,752 | 537,743 | 1,079,699 | 21,000 | ||||||||||||||||||||
Residential | 7,983,345 | 7,535,000 | 3,087,345 | 7,983,342 | 198,100 | ||||||||||||||||||||
Land | — | — | — | 8,761,503 | — | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial | $ | 17,292,598 | $ | 16,566,878 | $ | 537,743 | $ | 11,960,212 | $ | 725,623 | |||||||||||||||
Residential | $ | 10,717,573 | $ | 10,195,725 | $ | 3,087,345 | $ | 10,824,743 | $ | 332,802 | |||||||||||||||
Land | $ | 5,017,839 | $ | 4,975,502 | $ | — | $ | 13,746,388 | $ | 259,281 | |||||||||||||||
The recorded investment balances presented in the above tables include amounts advanced in addition to principal on impaired loans (such as property taxes, insurance and legal charges) that are reimbursable by borrowers and are included in interest and other receivables in the accompanying consolidated balance sheets. Interest income recognized on a cash basis for impaired loans approximates the interest income recognized as reflected in the tables above. | |||||||||||||||||||||||||
Troubled Debt Restructurings | |||||||||||||||||||||||||
The Company had allocated approximately $2,389,000 and $3,625,000 of specific reserves on loans totaling $20,265,000 and $25,781,000 (recorded investments before reserves) to borrowers whose loan terms had been modified in troubled debt restructurings as of December 31, 2014 and 2013, respectively. The Company has not committed to lend additional amounts to any of these borrowers, other than discussed below. | |||||||||||||||||||||||||
During the year ended December 31, 2014, the terms of one impaired loan were modified as a troubled debt restructuring. The loan was rewritten as the borrower had previously paid the principal balance down partially from sale proceeds. The maturity date was extended by six months to April 2015. All other terms of the loan remained the same. As of December 31, 2014, no specific loan loss allowance was recorded on this modified loan given the estimated underlying collateral value. | |||||||||||||||||||||||||
During the year ended December 31, 2013, the terms of two loans were modified as troubled debt restructurings. One loan was modified to combine all principal, delinquent interest and advances into principal and provide for amortizing payments at a reduced interest rate over an extended maturity of 15 years. The borrower is now delinquent in making payments on this modified loan. Another impaired loan was rewritten by the Company during the year whereby the Company repaid the unrelated first deed of trust on the subject property of approximately $5,899,000 and refinanced its second deed of trust by combining them into one first deed of trust in the amount of $9,625,000 with interest at 10% per annum due in five years. As part of the modification, approximately $659,000 of past due interest on the Company’s original note was paid from the proceeds of the rewritten loan, which was recorded as a discount against the principal balance of the new loan because the loan was impaired (net principal balance of $8,966,000). In addition, the Company loaned the borrower an additional $2,500,000 to fund certain improvements to the property (aggregate principal balance of $11,466,000). As of December 31, 2013, no specific loan loss allowance was recorded on either of these modified loans given the estimated underlying collateral values. | |||||||||||||||||||||||||
The following tables show information related to loan modifications made by the Company during the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||
Modifications | |||||||||||||||||||||||||
During the Year Ended December 31, 2014 | |||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | |||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||||||
Troubled Debt RestructuringsThat Occurred During the Year | |||||||||||||||||||||||||
Land | 1 | $ | 1,860,068 | $ | 1,860,068 | ||||||||||||||||||||
Modifications | |||||||||||||||||||||||||
During the Year Ended December 31, 2013 | |||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | |||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||||||
Troubled Debt RestructuringsThat Occurred During the Year | |||||||||||||||||||||||||
Commercial | 1 | $ | 2,638,530 | $ | 8,966,179 | ||||||||||||||||||||
Residential | 1 | 272,028 | 272,028 | ||||||||||||||||||||||
Troubled Debt Restructurings That Subsequently DefaultedDuring the Year | Number of | Recorded | |||||||||||||||||||||||
Contracts | Investment | ||||||||||||||||||||||||
Residential | 1 | $ | 272,028 | ||||||||||||||||||||||
Note_4_Investment_in_Limited_L
Note 4 - Investment in Limited Liability Company | 12 Months Ended |
Dec. 31, 2014 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | NOTE 4–INVESTMENT IN LIMITED LIABILITY COMPANY |
During 2008, the Company entered into an Operating Agreement of 1850 De La Cruz LLC, a California limited liability company (“1850”), with Nanook Ventures LLC (“Nanook”), an unrelated party. The purpose of the joint venture is to acquire, own and operate certain industrial land and buildings located in Santa Clara, California that were owned by the Company. The property was subject to a Purchase and Sale Agreement dated July 24, 2007 (the “Sale Agreement”), as amended, between the Company, as seller, and Nanook, as buyer. During the course of due diligence under the Sale Agreement, it was discovered that the property is contaminated and that remediation and monitoring may be required. The parties agreed to enter into the Operating Agreement to restructure the arrangement as a joint venture. At the time of closing in July 2008, the two properties were separately contributed to two new limited liability companies, Nanook Ventures One LLC and Nanook Ventures Two LLC, which are wholly owned by 1850. The Company and Nanook are the Members of 1850 and NV Manager, LLC is the Manager. (See Note 15 for further discussion of the Company’s environmental remediation obligation with respect to the properties owned by 1850.) | |
During the years ended December 31, 2014 and 2013, the Company received capital distributions from 1850 in the total amount of $170,000 and $160,000, respectively. The net income to the Company from its investment in 1850 De La Cruz was approximately $170,000 and $161,000 for the years ended December 31, 2014 and 2013, respectively. |
Note_5_Real_Estate_Held_for_Sa
Note 5 - Real Estate Held for Sale | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Real Estate Owned [Text Block] | NOTE 5- REAL ESTATE HELD FOR SALE | ||||||||
Real estate properties held for sale as of December 31, 2014 and 2013 consists of properties acquired through foreclosure classified by property type as follows: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Residential | $ | — | $ | 93,647 | |||||
Land (including land under development) | 36,263,330 | 3,427,200 | |||||||
Retail | 16,494,440 | — | |||||||
Golf course | 2,020,410 | 1,961,284 | |||||||
Office | 4,716,159 | — | |||||||
Marina | — | 408,000 | |||||||
$ | 59,494,339 | $ | 5,890,131 | ||||||
During the year ended December 31, 2014, the Company transferred three properties (one land, one marina and one residential) from “Held for sale” to “Held for investment” because the properties are no longer listed for sale and sales are not likely within the next year. In addition, during the year ended December 31, 2014, the Company transferred five properties (two land, two retail and one office) from “Held for investment” to “Held for sale” as the properties are now listed for sale and sales are expected within the next year. During the year ended December 31, 2013, the Company transferred three properties (one land, one retail and one residential) from “Held for sale” to “Held for investment” because the properties were no longer listed for sale and sales were not likely within the next year. In addition, during the year ended December 31, 2013, the Company transferred three properties (two land and one golf course) from “Held for investment” to “Held for sale” as the properties were listed for sale and sales were expected within the next year. No losses were recorded as a result of transfers between “Held for sale” and “Held for investment” categories for the years ended December 31, 2014 and 2013. | |||||||||
During the year ended December 31, 2014, the Company recorded an impairment loss of $179,000 on the marina property located in Oakley, California due to a decrease in the listing price of the property and a reduction in the fair market value estimated by management. The property was then moved to “Held for investment” as of December 31, 2014. | |||||||||
During the year ended December 31, 2014, the Company sold two real estate properties (both Land) and an easement for aggregate net sales proceeds of approximately $1,821,000, resulting in gain on sales of real estate totaling approximately $292,000. In addition, the Company recognized gains of approximately $2,951,000 during the year ended December 31, 2014 that had previously been deferred related to the sales of real estate properties in 2012 and 2013. The gains on the sales of those properties were being accounted for under the installment method. | |||||||||
During the year ended December 31, 2013, the Company sold six real estate properties (three Land, one Residential, one Office and one Retail) for aggregate net sales proceeds of approximately $11,052,000 and carry back notes totaling $11,900,000, resulting in gain on sales of real estate (net) totaling approximately $2,585,000. In addition, the Company recognized gains of approximately $358,000 during the year ended December 31, 2013 that had previously been deferred due to the receipt of principal repayments on the carryback loans during 2013. | |||||||||
During the year ended December 31, 2014, the Company foreclosed on one loan secured by retail property located in San Jose, California with a principal balance of $690,000 and obtained the properties via the trustee’s sale. The fair market value of the property acquired was estimated to be higher than the Company’s recorded investment in the subject loan, and, thus, a gain on foreclosure in the amount of approximately $208,000 was recorded. The property has been classified as held for sale as a sale is expected within one year. |
Note_6_Real_Estate_Held_for_In
Note 6 - Real Estate Held for Investment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Real Estate Held For Investment Disclosure [Abstract] | |||||||||
Real Estate Held For Investment Disclosure [Text Block] | NOTE 6- REAL ESTATE HELD FOR INVESTMENT | ||||||||
Real estate held for investment as of December 31, 2014 and 2013 consists of properties acquired through foreclosure classified by property type as follows: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land (1) | $ | 10,797,656 | $ | 46,873,135 | |||||
Residential | 48,154,258 | 47,037,370 | |||||||
Retail | 23,211,896 | 15,588,452 | |||||||
Office | 4,416,108 | 9,348,331 | |||||||
Industrial | 4,486,797 | 4,605,910 | |||||||
Storage | 3,847,884 | 3,943,780 | |||||||
Marina | 3,602,867 | 2,028,855 | |||||||
Assisted care | 5,005,000 | — | |||||||
$ | 103,522,466 | $ | 129,425,833 | ||||||
(1) As of December 31, 2013, balance includes all TSV land under development (see below). | |||||||||
The balances of land and the major classes of depreciable property for real estate held for investment as of December 31, 2014 and 2013 are as follows: | |||||||||
December 31, | December 31, | ||||||||
2014 | 2013 | ||||||||
Land and land improvements | $ | 39,003,422 | $ | 73,591,953 | |||||
Buildings and improvements | 70,594,331 | 65,433,599 | |||||||
109,597,753 | 139,025,552 | ||||||||
Less: Accumulated depreciation and amortization | (6,075,287 | ) | (9,599,719 | ) | |||||
$ | 103,522,466 | $ | 129,425,833 | ||||||
It is the Company’s intent to sell the majority of its real estate properties held for investment, but expected sales are not probable to occur within the next year. | |||||||||
Depreciation expense was approximately $2,151,000 and $2,387,000 for the years ended December 31, 2014 and 2013, respectively. | |||||||||
For purposes of assessing potential impairment of value during 2014 and 2013, the Company obtained updated appraisals or other valuation support for certain of its real estate properties held for investment. This resulted in the Company recording impairment losses in 2013 as follows: | |||||||||
2013 | |||||||||
Two improved residential lots, West Sacramento, California | $ | 13,440 | |||||||
Six improved residential lots, Coeur D’Alene, Idaho | 652,800 | ||||||||
$ | 666,240 | ||||||||
During the year ended December 31, 2014, the Company foreclosed on two loans secured by an assisted care facility located in Bensalem, Pennsylvania and unimproved land, a marina and campground located in Bethel Island, California with aggregate principal balances of approximately $6,981,000 and obtained the properties via the trustee’s sales. The fair market values of certain of the properties acquired were estimated to be higher than the Company’s recorded investments in the subject loans, and, thus a gain on foreclosure in the amount of approximately $257,000 was recorded. The properties have been classified as held for investment as sales are not expected within one year. | |||||||||
During the year ended December 31, 2013, the Company foreclosed on six loans secured by a marina located in Isleton, California and undeveloped parcels of land located in South Lake Tahoe, California with aggregate principal balances of approximately $27,467,000 and obtained the properties via the trustee’s sales. The fair market values of certain of the properties acquired were estimated to be higher than the Company’s recorded investments in the subject loans, and, thus a gain on foreclosure in the amount of approximately $952,000 was recorded. |
Note_7_Lines_of_Credit_Payable
Note 7 - Lines of Credit Payable | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Debt Disclosure [Text Block] | NOTE 7 – LINES OF CREDIT PAYABLE | ||||||||||||||||
The Company borrows funds under the California Bank & Trust (“CB&T”) Line of Credit and the Opus Bank (“Opus”) Line of Credit (collectively, the “Funding Agreements”). As of December 31, 2014 and 2013, the outstanding balances and total commitments under the Funding Agreements consisted of the following: | |||||||||||||||||
As of December 31, 2014 | As of December 31, 2013 | ||||||||||||||||
Outstanding | Total | Outstanding | Total | ||||||||||||||
Balance | Commitment | Balance | Commitment | ||||||||||||||
CB&T Line of Credit | $ | 11,450,000 | $ | 17,355,000 | $ | — | $ | — | |||||||||
Opus Bank Line of Credit | — | 16,721,000 | — | — | |||||||||||||
Total | $ | 11,450,000 | $ | 34,076,000 | $ | — | $ | — | |||||||||
The Funding Agreements are generally collateralized by assignments of specific loans or real estate properties owned by the Company. | |||||||||||||||||
CB&TLine of Credit | |||||||||||||||||
In February 2014, the Company entered into a Credit Agreement and Advance Formula Agreement with CB&T as the lender and executed a related Master Revolving Note and Security Agreement, which agreements provide the Company with a new revolving line of credit facility (the “CB&T Credit Facility”). Subject to various conditions, borrowings under the CB&T Credit Facility will be used for general corporate purposes and to finance the origination of new commercial real estate loans. | |||||||||||||||||
The maximum borrowings available (total commitment) under the revolving CB&T Credit Facility is the lesser of $20,000,000, which is the face amount of the Master Revolving Note, or the amount determined pursuant to a borrowing base calculation described in the Advance Formula Agreement. At any time that the aggregate principal amount of the total borrowings under the CB&T Credit Facility exceeds the maximum permitted pursuant to the borrowing base calculation, the Company must promptly repay an amount equal to such excess. | |||||||||||||||||
Borrowings under the CB&T Credit Facility mature on February 5, 2016. Such borrowings bear interest payable monthly, in arrears, on the first business day of each month, at the prime rate of interest established by CB&T from time-to-time plus one quarter percent (.25%) per annum (3.5% at December 31, 2014). Upon a default under the CB&T Credit Facility such interest rate increases by 2.00%. The CB&T Credit Facility required the payment of an origination fee of $100,000 and other issuance costs and is subject to certain ongoing administrative fees and expenses. As of December 31, 2014, $177,000 of these costs were paid and capitalized to deferred financing costs and are being amortized to interest expense using the straight-line method through the maturity date of the CB&T Credit Facility. | |||||||||||||||||
Interest expense on the CB&T Credit Facility was approximately $458,000 during the year ended December 31, 2014 (including $69,000 in amortization of deferred financing costs). | |||||||||||||||||
Borrowings under the CB&T Credit Facility are secured by certain assets of the Company. These collateral assets will include the grant to CB&T of first-priority deeds of trust on certain real property assets and trust deeds of the Company to be identified by the parties from time-to-time and all personal property of the Company, which collateral includes the assets described in the Security Agreement and in other customary collateral agreements that will be entered into by the parties from time-to-time. As of December 31, 2014, the carrying amount and classification of loans and real estate properties securing the CB&T Credit Facility were as follows: | |||||||||||||||||
Loans: | December 31, | ||||||||||||||||
2014 | |||||||||||||||||
Commercial | $ | 11,505,000 | |||||||||||||||
Real Estate: | |||||||||||||||||
Residential | 6,933,229 | ||||||||||||||||
Storage | 3,847,884 | ||||||||||||||||
Industrial | 3,027,735 | ||||||||||||||||
Total | $ | 13,808,848 | |||||||||||||||
The borrowing base calculation outlined in the Advance Formula Agreement equals the sum of: (a) the lesser of (i) 75% of the outstanding principal balance of those mortgage loan promissory notes issued by the Company in the ordinary course of business that qualify as “Eligible Loan Notes” according to criteria outlined in the Advance Formula Agreement and (ii) 50% of the then-current appraised value of the real property securing such Eligible Loan Notes; plus (b) 50% of the then-current appraised value of the real property owned by the Company that qualifies as “Eligible Owned Real Property” according to criteria outlined in the Advance Formula Agreement. | |||||||||||||||||
The CB&T Credit Facility contains affirmative, negative, and financial covenants which are customary for loans of this type, including among others: approvals of new leases or lease renewals with respect to collateral properties; maintaining the Company’s principal bank accounts with CB&T and maintenance of $2,000,000 of unencumbered liquid assets as defined (reported as part of restricted cash on the accompanying consolidated balance sheets); obligations to use best efforts to keep certain of the Company’s properties fully leased; maintenance of minimum debt-to-tangible net worth and debt service coverage ratios; limitations on repurchasing or redeeming stock of the Company; limitations on incurrence of liens or additional indebtedness; restrictions against guarantying debt outside the ordinary course of business; restrictions on asset dispositions, capital or corporate restructuring or other transactions outside the ordinary course of business; and restrictions on making certain investments. Management is not aware of any breach of these covenants as of December 31, 2014. | |||||||||||||||||
The Credit Agreement contains certain events of default (subject to specified thresholds and, in certain cases, cure periods), including among others: nonpayment of principal and other amounts when due; breach of covenants or inaccuracy of representations and warranties; maintenance of required insurance; change in the management, ownership or control of the Company which CB&T believes could have a Material Adverse Effect as defined in the Credit Agreement; cross-default and/or cross-acceleration to other indebtedness; certain bankruptcy or insolvency events; the dissolution, merger or consolidation of the Company or if the Company ceases to do business as a going concern; the issuance of a writ of attachment, seizure or similar process against any part of the Company’s property; certain ERISA-related events; entry of non-appealable judgments against the Company that are not covered by insurance, or the entry of a levy or lien of attachment against any assets of the Company or entry by the Company into certain types of settlements; or if CB&T deems itself insecure with respect to the payment obligations of the Company or is of the opinion that a Material Adverse Effect has occurred or could occur. If an event of default occurs and is continuing under the Credit Agreement, CB&T may, among other things, terminate its obligations to lend under the CB&T Credit Facility and require the Company to repay all amounts owed thereunder. | |||||||||||||||||
Opus BankLine of Credit | |||||||||||||||||
On April 22, 2014, the Company entered into a Secured Revolving Credit Loan Agreement (the “Opus Credit Agreement”) with Opus as the lender and executed a Promissory Note in favor of Opus, which agreements provide the Company with a new revolving line of credit facility (the “Opus Credit Facility”). As a condition to providing the Opus Credit Facility to the Company, Opus also required the Company’s Chairman of the Board, President and Chief Executive Officer, William C. Owens, to enter into a Carveout Payment Guaranty (the “Guaranty”), dated April 22, 2014, in favor of Opus. Mr. Owens’ delivered the Guaranty in his individual capacity and as sole trustee of Owens Trust, a California trust controlled by Mr. Owens, to guarantee performance by the Company of certain specified obligations under the Opus Credit Facility. Subject to various conditions, borrowings under the Opus Credit Facility will be used by the Company for general corporate purposes and to finance the origination of new commercial real estate loans. | |||||||||||||||||
The maximum borrowings available (total commitment) under the revolving Opus Credit Facility is the lesser of $20,000,000, which is the face amount of the Promissory Note, or the Maximum Allowed Advance amount determined pursuant to a borrowing base calculation described in the Opus Credit Agreement. At any time that the aggregate principal amount of the total borrowings under the Opus Credit Facility exceeds the Maximum Allowed Advance permitted pursuant to the borrowing base calculation, the Company must promptly repay an amount equal to such excess. | |||||||||||||||||
Advances under the Opus Credit Facility may be made by Opus until April 1, 2016. All borrowings under the Opus Credit Facility bear interest payable monthly, in arrears, on the first business day of each month, as follows: (i) continuing through October 1, 2014 the rate of interest will be 4.5%; (ii) commencing October 1, 2014, and on each successive six month anniversary during the term (the “Rate Change Date”), the rate of interest will be reset to the Six Month LIBOR rate of interest (0.36% at December 31, 2014) as reported on such Rate Change Date plus four percent (4.0%) per annum but in no event will the interest rate be lower than 4.5% per annum. The interest rate as of December 31, 2014 was 4.5%. Upon a default under the Opus Credit Facility such interest rate increases by an additional 5.00%. Commencing on May 1, 2016, in addition to the required interest payments, the Company is also required to make mandatory monthly principal payments and all amounts under the Opus Credit Facility are to be repaid not later than April 1, 2017. | |||||||||||||||||
Borrowings under the Opus Credit Facility will be secured by certain of the Company's assets. These collateral assets will include the following types of assets to be identified by the parties and described in Borrowing Base Collateral Certificates to be entered into by the parties from time-to-time: (i) the grant to Opus of first-priority deeds of trust on certain of the Company's real property assets that meet related eligibility requirements set forth in the Opus Credit Agreement (as further defined in the Opus Credit Agreement, the “REO Collateral”); and (ii) the grant to Opus of a collateral interest in mortgage loan promissory notes issued by the Company in the ordinary course of business that meet related eligibility requirements set forth in the Opus Credit Agreement (as further defined in the Opus Credit Agreement, the “Note Collateral”). | |||||||||||||||||
The borrowing base calculation outlined in the Opus Credit Agreement equals the sum of: (a) the lesser of (i) 70% of the outstanding principal balance of the Note Collateral and (ii) 50% of the then-current Appraised Value (using the appraisal method described in the Opus Credit Agreement) of the real property securing such Note Collateral; plus (b) 60% of the then-current Appraised Value of the real property owned by the Company that qualifies as REO Collateral. As of December 31, 2014, the carrying amount and classification of loans and real estate properties securing the Opus Credit Facility were as follows: | |||||||||||||||||
Loans: | December 31, | ||||||||||||||||
2014 | |||||||||||||||||
Commercial | $ | 13,630,000 | |||||||||||||||
Real Estate: | |||||||||||||||||
Office | 9,132,267 | ||||||||||||||||
Industrial | 1,459,063 | ||||||||||||||||
Total | $ | 10,591,330 | |||||||||||||||
The Opus Credit Facility contains affirmative, negative, and financial covenants which are customary for loans of this type, including among others: approvals of new leases or lease renewals with respect to collateral properties; maintaining a minimum of $5,000,000 in bank accounts of the Company and affiliates maintained at Opus ($4,000,000 is reported as part of restricted cash in the accompanying consolidated balance sheets and the remaining $1,000,000 is held by affiliates); compliance by Mr. Owens with all terms of the Guaranty obligations; maintenance of minimum debt-to-tangible net worth and debt service coverage ratios and limitations on making dividends or distributions that could cause a material adverse change in the Company’s financial position or have other financial consequences as described in the agreements. Management is not aware of any breach of these covenants as of December 31, 2014. | |||||||||||||||||
The Opus Credit Facility required the payment of an origination fee of $100,000 and other issuance costs and is subject to certain administrative fees and expenses. As of December 31, 2014, $231,000 of these costs were paid and capitalized to deferred financing costs and are being amortized to interest expense using the straight-line method through the maturity date of the Opus Credit Facility. | |||||||||||||||||
Interest expense on the Opus Credit Facility was approximately $112,000 during the year ended December 31, 2014 (including $51,000 in amortization of deferred financing costs). |
Note_8_Notes_and_Loans_Payable
Note 8 - Notes and Loans Payable on Real Estate | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure Text Block [Abstract] | ||||||||||||||||
Mortgage Notes Payable Disclosure [Text Block] | NOTE 8 - NOTES AND LOANS PAYABLE ON REAL ESTATE | |||||||||||||||
The Company had the following notes and loans payable outstanding as of December 31, 2014 and 2013: | ||||||||||||||||
December 31, | December 31, | Interest | Payment | Maturity Date | ||||||||||||
2014 | 2013 | Rate | Terms/Frequency | |||||||||||||
720 University, LLC Note Payable | $ | 9,741,463 | $ | 9,917,585 | 5.07% | Amortizing | Mar-15 | |||||||||
Monthly | ||||||||||||||||
Tahoe Stateline Venture, LLC Note #1 | 2,900,000 | 2,900,000 | 5.00% | Interest Only | Dec-16 | |||||||||||
Semi-annual | ||||||||||||||||
Tahoe Stateline Venture, LLC Note #2 | — | 400,000 | 5.00% | Interest Only | Dec-16 | |||||||||||
Semi-annual | ||||||||||||||||
Tahoe Stateline Venture, LLC Note #3 | 500,000 | 700,000 | 5.00% | Interest Only | Aug-17 | |||||||||||
Quarterly | ||||||||||||||||
TOTB North, LLC Construction Loan Payable | 1,007,919 | — | 4.50% | Amortizing | Jun-17 | |||||||||||
Monthly | ||||||||||||||||
TOTB Miami, LLC Loan Payable | 12,975,167 | — | 4.26% | Amortizing | Nov-17 | |||||||||||
Monthly | ||||||||||||||||
Tahoe Stateline Venture, LLC Loan Payable | 10,445,000 | — | 3.47% | Amortizing | Jan-21 | |||||||||||
Monthly | ||||||||||||||||
$ | 37,569,549 | $ | 13,917,585 | |||||||||||||
The following table shows maturities by year on these notes and loans payable as of December 31, 2014: | ||||||||||||||||
Twelve months ending December 31: | ||||||||||||||||
2015 | $ | 9,741,463 | ||||||||||||||
2016 | 2,900,000 | |||||||||||||||
2017 | 14,483,086 | |||||||||||||||
2021 | 10,445,000 | |||||||||||||||
$ | 37,569,549 | |||||||||||||||
720 University, LLC Note Payable | ||||||||||||||||
The Company had a note payable with a bank through its investment in 720 University, LLC (“720 University), which was secured by the retail development located in Greeley, Colorado. The note required amortized monthly payments of $56,816 at a fixed rate of 5.07% per annum with the balance of unpaid principal due on March 1, 2015 (see below). Interest expense was approximately $505,000 and $514,000 for the years ended December 31, 2014 and 2013, respectively. | ||||||||||||||||
In November 2014, 720 University entered into an agreement to sell the property that secures this note payable, and the buyer extended a new loan to 720 University to repay the existing note payable. The refinancing closed in January 2015. The principal amount of the new loan is $9,771,263 and will accrue interest at 6.0% per annum until paid off with the closing of the sale of the property to the buyer which is expected to occur on or about May 28, 2015. | ||||||||||||||||
Tahoe Stateline Venture, LLC NotesPayable | ||||||||||||||||
The Company obtained these obligations as a result of the foreclosure or purchase of nine parcels by TSV in 2013 and 2012. The Company repaid all of one note in the amount of $400,000 during the year ended December 31, 2014 to allow for the new Rabobank loan to be secured by the phase I retail building recently completed (see below). The Company also repaid $200,000 of one note during the year ended December 31, 2014 to allow demolition of the buildings on the land for the overall development in Phase II of the project. The Company paid approximately $195,000 and $164,000 of interest on the notes during the years ended December 31, 2014 and 2013, respectively. As of December 31, 2014 and 2013, there was approximately $19,000 and $21,000 in accrued but unpaid interest on these notes. The majority of the interest incurred has been capitalized to the basis of the land now under development. | ||||||||||||||||
TOTB North, LLC Construction LoanPayable | ||||||||||||||||
TOTB Miami, LLC (“TOTB”) contributed the vacant and unimproved “North” apartment building (the “Apartments”) and the related 2.37 acre parcel of land (together with the Apartments, the “North Property”) to a new wholly owned limited liability company, TOTB North, LLC (“TOTB North”) during 2014 and entered into a Construction Loan Agreement (the “Loan Agreement”) with Bank of the Ozarks (“Ozarks”) as the lender providing TOTB North with a loan (the “Loan”) of up to $21,304,000, subject to the terms and conditions of the Loan documents, for the purpose of renovating and improving the Apartments (the “Project”). The Loan is evidenced by the Loan Agreement, a related Promissory Note (the “Note”), a Mortgage, Security Agreement and Fixture Filing (the “Security Agreement”), an Assignment of Rents and Revenues (the “Assignment”), an Environmental Indemnity Agreement (the “Indemnity Agreement”) and a Post-Closing Agreement (the “Post-Closing Agreement”). As a condition to providing the Loan to TOTB North, Ozarks also required a joint and several completion guaranty from the Company and the Manager (the “Completion Guaranty”) with respect to completion of the Apartments, a joint and several repayment guaranty from the Company and the Manager (the “Repayment Guaranty”) that guarantees repayment of the Loan subject to certain limitations and a joint and several carve-out guaranty from the Company and the Manager (the “Carve-Out Guaranty” and, together with the Completion Guaranty and the Repayment Guaranty, the “Guarantees”) that provides a guaranty with respect to standard “bad-boy” carve-out provisions. As described below under “TOTB Miami, LLC Loan Payable”, the Loan Agreement was modified in November 2014. | ||||||||||||||||
The initial maturity date (the “Maturity Date”) of the Loan is June 12, 2017, which may be extended at the option of TOTB North for two additional one year periods if a number of conditions are met including, among others, the conditions that there be no defaults, that the North Property have a loan to value ratio calculated in accordance with the Loan Agreement at or below 60% at the time of each extension, that the debt service coverage ratio (“DSCR”) of the North Property calculated in accordance with the Loan Agreement equals or exceeds 1.25:1 at the time of each extension, that there be no Material Adverse Change (as defined in the Loan documents) relating to Borrower or any Guarantor and that certain additional fees are paid to Ozarks at the time of the extension. | ||||||||||||||||
The balance of the loan was approximately $1,008,000 as of December 31, 2014. All outstanding borrowings under the Loan bear interest equal to the floating daily Three Month LIBOR rate of interest plus four percent (4.0%) per annum (the “Note Rate”), but in no event will the Note Rate be lower than the floor rate of four and one-half percent (4.5%) per annum. The Note Rate as of December 31, 2014 was 4.5% per annum. | ||||||||||||||||
Upon a default under the Loan documents the Note Rate increases by an additional eight percent (8.00%) per annum. Interest only payments are payable monthly, in arrears, on the first business day of each month (the “Payment Date”), until the “Amortization Commencement Date” which is the earlier to occur of (i) December 12, 2015 or (ii) the first Payment Date occurring after the Project is completed and the North Property achieves a DSCR of greater than 1.25:1. | ||||||||||||||||
Commencing on the Amortization Commencement Date and continuing on each Payment Date thereafter until the Maturity Date, TOTB North is required to make, in addition to the interest payment due on such date, a monthly principal payment. The principal payment is calculated monthly based on the principal component of a mortgage-style amortization schedule calculated using the principal balance and the Note Rate as of the corresponding Payment Date and a period of 300 months (less the number of any such monthly principal payments made by TOTB North prior to the applicable monthly calculation). The balance of the Loan is due on the Maturity Date. | ||||||||||||||||
As of December 31, 2014, TOTB North had paid customary closing fees, disbursements and expenses, including an origination fee to Ozarks, which totaled $622,000. The majority of these costs were paid out of proceeds from the loan and capitalized to deferred financing costs and are being amortized to the construction project using the straight-line method through the Maturity Date. During the year ended December 31, 2014, approximately $121,000 of deferred financing costs was amortized to the Project. During the year ended December 31, 2014, approximately $22,000 of interest was incurred which was capitalized to the Project. | ||||||||||||||||
Borrowings under the Loan documents are subject to customary conditions, and, additionally, Ozarks was not required to loan more than $1.0 million to TOTB North until TOTB North satisfied certain additional conditions detailed in the Post-Closing Agreement (the “Post-Closing Conditions. TOTB North was also required to deposit with Ozarks $1.0 million, or such greater amount as was required (the “Bridge Equity”), to fund all Project costs incurred prior to the satisfaction of the Post-Closing Conditions. The Bridge Equity deposit of $1.0 million was made in 2014 with a capital contribution by TOTB (excess funds held and capital contributions of $453,000 from the Company and $108,000 from OFG). Upon satisfaction of the Post-Closing Conditions in February 2015, Ozarks has reimbursed as part of the Loan the amount of the Bridge Equity to TOTB North to the extent the proceeds were expended in conformance with the approved Project budget. | ||||||||||||||||
Borrowings under the Loan Agreement will be secured by: (i) a first mortgage lien on the North Property and all improvements, amenities and appurtenances to the North Property, (ii) an assignment of all personal property, sales contracts, rents, leases, and ground leases associated with the North Property and (iii) all design, development, service, management, leasing and construction contracts associated with the North Property. In addition, the Bridge Equity and other reserves established by Ozarks are additional collateral for the Loan. | ||||||||||||||||
The Loan documents contain affirmative, negative and financial covenants of TOTB North and the Guarantors which are customary for loans of this type, including, among others, a requirement that the Company in its capacity as a Guarantor maintain: (i) a minimum of $5,000,000 in unencumbered cash balances and (ii) a minimum Net Worth of $35,000,000. Management is not aware of any breach of these covenants as of December 31, 2014. | ||||||||||||||||
The Loan documents contain events of default (subject to specified thresholds and, in certain cases, cure periods) which are customary for loans of this type. If an event of default occurs and is continuing under the Loan documents, Ozarks may, among other things, terminate its obligations to lend and require the Company to repay all amounts owed thereunder, take possession of the Project and proceed to complete the Project at the cost of TOTB North and/or take certain actions against Guarantors pursuant to the Guarantees. | ||||||||||||||||
TOTB Miami, LLC LoanPayable | ||||||||||||||||
In November 2014, TOTB entered into another Loan Agreement (the “TOTB Loan Agreement”) with Ozarks providing TOTB a loan (the “TOTB Loan”) of $13,000,000 secured by the 154 leased condominium units owned in the Point building and the related parcel (the “TOTB Property”). The TOTB Loan is evidenced by the TOTB Loan Agreement, a related Promissory Note, a Mortgage, Security Agreement and Fixture Filing, Assignment of Rents and Revenues, Collateral Assignment of Declaration Rights, Environmental Indemnity Agreement, and Assignment and Subordination of Management Agreement. | ||||||||||||||||
As a condition of providing the TOTB Loan, Ozarks required that the TOTB Loan and the North Loan (see above) be cross collateralized and cross-defaulted, that excess proceeds from any sale of the North Property be used to reduce or pay off the new Loan and that excess proceeds from any sale of the TOTB Property be used to pay off the North Loan. Accordingly, such terms are included in the new Loan documents and a Modification Agreement has been entered to amend the North Loan Agreement, the North Assignment and the North Security Agreement to add these terms. The Lender also required a joint and several repayment guaranty from the Company and the Manager (the “Repayment Guaranty”) that guarantees repayment of the Loan subject to certain limitations, and a joint and several carve-out guaranty from the Company and the Manager (the “Carve-Out Guaranty” and, together with the Repayment Guaranty, the “Guarantees”) that provides a guaranty with respect to standard “bad-boy” carve-out provisions. | ||||||||||||||||
The initial maturity date (the “Maturity Date”) of the TOTB Loan is November 16, 2017, and the Maturity Date may be extended at the option of TOTB for two additional one year periods if a number of conditions outlined in the TOTB Loan Agreement are met, including among others, the conditions that there be no defaults, that the TOTB Property have a loan to value ratio calculated in accordance with the TOTB Loan Agreement at or below 65% at the time of each extension, that the debt service coverage ratio (“DSCR”) of the TOTB Property calculated in accordance with the TOTB Loan Agreement equals or exceeds 1.35:1 at the time of each extension, that all reserves required to be established are fully funded, that there be no Material Adverse Change relating to TOTB or any Guarantor and that certain additional fees are paid to Lender at the time of the extension. | ||||||||||||||||
All outstanding borrowings under the TOTB Loan will bear interest equal to the floating daily Three Month LIBOR rate of interest plus four percent (4.0%) per annum (the “Note Rate”), but in no event will the Note Rate be lower than the floor rate of four and one-quarter percent (4.25%) per annum. The Note Rate as of December 31, 2014 was 4.26 % per annum. Upon a default under the TOTB Loan documents, including any cross-default, the Note Rate increases by an additional eight percent (8.00%) per annum. Principal and interest is payable monthly, in arrears, on the first business day of each month (the “Payment Date”). The principal payment amount is calculated monthly based on the principal component of a mortgage-style amortization schedule calculated using the principal balance and the Note Rate as of the corresponding Payment Date and a period of 300 months (less the number of any such monthly principal payments made by TOTB prior to the applicable monthly calculation), and the balance of the TOTB Loan is due on the Maturity Date. | ||||||||||||||||
TOTB was obligated to pay customary closing fees, disbursements and expenses, including an origination fee to the Lender, which totaled approximately $323,000. The majority of these costs were paid out of proceeds from the loan and capitalized to deferred financing costs and are being amortized to interest expense using the effective interest method through the Maturity Date. During the year ended December 31, 2014, approximately $81,000 of interest expense was incurred (including approximately $12,000 of deferred financing costs amortized to interest expense). | ||||||||||||||||
Borrowings are secured by: (i) a first mortgage lien on the TOTB Property and all improvements, amenities and appurtenances to the TOTB Property, (ii) an assignment of all personal property, sales contracts, rents, leases, and ground leases associated with the TOTB Property, (iii) all design, development, service, management, leasing and construction contracts associated with the TOTB Property, and (iv) certain reserves established by Lender as additional collateral. The TOTB Loan and the North Loan are cross-collateralized, so each of the TOTB Loan and the North Loan is also secured by the collateral provided pursuant to both loans. | ||||||||||||||||
The TOTB Loan documents contain affirmative, negative and financial covenants of TOTB and the Guarantors which are customary for loans of this type, including among others a requirement that the Company in its capacity as a Guarantor maintain: (i) a minimum of $5,000,000 in unencumbered cash balances and (ii) a minimum Net Worth of $35,000,000. Management is not aware of any breach of these covenants as of December 31, 2014. | ||||||||||||||||
The TOTB Loan documents contain events of default (subject to specified thresholds and, in certain cases, cure periods) which are customary for loans of this type, and includes cross-default provisions with respect to the North Loan documents. If an event of default occurs and is continuing under the TOTB Loan or North Loan documents, Lender may, among other things, terminate its obligations to lend funds to the Company and require the Company to repay all amounts owed, take possession of the collateral and proceed to complete the TOTB North project at the cost of the Company and/or take certain actions against Guarantors pursuant to the Guarantees. | ||||||||||||||||
Tahoe Stateline Venture, LLC LoanPayable | ||||||||||||||||
In December 2014, Tahoe Stateline Ventures, LLC (“TSV”) entered into a Credit Agreement (the “Credit Agreement”) with RaboBank, N.A. as the lender (“Lender”) providing TSV with a loan (the “TSV Loan”) of up to $14,500,000. The TSV Loan is evidenced by the Credit Agreement, a Real Estate Term Loan Note, a Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing (the “Security Agreement”) and an Environmental Certificate and Indemnity Agreement. The TSV Loan and related obligations are guaranteed by the Company pursuant to a Guaranty agreement (the “Guaranty” and, together with the Credit Agreement and related agreements, the “TSV Loan Documents”) between the Company and Lender. | ||||||||||||||||
TSV borrowed $10,445,000 at the first closing under the TSV Loan and up to an additional $4,055,000 (the “Undisbursed Portion”) will be made available to TSV in one or more future advances, provided that no event of default has occurred under the TSV Loan Documents and that such additional advances do not result in a pro forma Debt Service Coverage ratio (as defined in the Credit Agreement) of less than 1.25:1.00. | ||||||||||||||||
All outstanding borrowings under the TSV Loan Documents bear interest initially at a rate of 3.47% per annum (the “Long Term Adjustable Rate”), provided that on January 1, 2018 the Long Term Adjustable Rate will be reset to Lender’s then current market rate for three year fixed rate loans from comparable commercial real estate secured transactions, as determined by Lender in its sole discretion. Upon a default under the TSV Loan Documents, the interest rate on the outstanding principal balance increases by an additional five percent (5.00%) per annum and the rate on any other outstanding obligations thereunder increases to ten percent (10.00%) per annum. Prepayments under the TSV Loan Documents may be made at any time provided that a prepayment fee in the following amount accompanies such prepayment (the “Prepayment Fee”): (i) until January 4, 2016 the Prepayment Fee is 3.00% of the prepayment amount; (ii) from January 5, 2016 until January 4, 2017 the Prepayment Fee is 2.00% of the prepayment amount; and (iii) from January 5, 2017 until January 1, 2021 the Prepayment Fee is 1.00% of the prepayment amount. Notwithstanding the foregoing sentence, during the 90 day period immediately prior to January 1, 2018, and the 90 day period immediately prior to the Maturity Date, TSV may prepay the entire unpaid balance of the Loan in full, without any Prepayment Fee or penalty. | ||||||||||||||||
During the term of the TSV Loan, TSV will make equal combined payments of principal and accrued interest on the first day of each month in an amount calculated to fully amortize the original principal amount over a period of 300 months, subject to certain adjustments to the monthly payment amount. An adjustment to the monthly amount will be made: (i) upon disbursement of the Undisbursed Portion of the Loan so that a recalculated monthly payment will fully amortize the then outstanding principal amount over the remainder of the original amortization period; and (ii) following a reset of the Long Term Adjustable Rate of interest. The balance of the Loan is due on January 1, 2021 (the “Maturity Date”). | ||||||||||||||||
The Credit Agreement required the payment of a closing fee of $108,750 and certain administrative fees which totaled approximately $218,000.The majority of these costs were paid out of proceeds from the loan and capitalized to deferred financing costs and are being amortized to interest expense using the effective interest method through the Maturity Date. During the year ended December 31, 2014, approximately $1,000 of interest expense was incurred. | ||||||||||||||||
Borrowings under the Credit Agreement are secured by a lien on all real, personal and other property owned by TSV, including, without limitation, the land, buildings and other improvements at development located in South Lake Tahoe, California known as Chateau at Lake Tahoe, (the “Project”) and an assignment of all rents and leases associated with the Project, which collateral is further described in the Security Agreement. | ||||||||||||||||
The TSV Loan Documents contain affirmative, negative, and financial covenants which are customary for loans of this type, including among others the requirement to obtain Lender approval of new leases or lease renewals with respect to TSV properties. The TSV Loan Documents also contains customary events of default (subject to specified thresholds and, in certain cases, cure periods). If an event of default occurs and is continuing under the TSV Loan Documents, Lender may, among other things, terminate its obligations to lend under the Credit Agreement and require the Company to repay all amounts owed thereunder. Management is not aware of any breach of these covenants as of December 31, 2014. |
Note_9_Stockholders_Equity
Note 9 - Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note Disclosure [Text Block] | NOTE 9–STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||
The Company was incorporated on August 9, 2012, under the laws of the State of Maryland and was authorized to issue 1,000,000 shares of $0.01 par value Common Stock at the time of its incorporation. Per the Articles of Amendment and Restatement of the Company dated January 23, 2013, the authorized shares of Common Stock were increased to 50,000,000 shares (at $0.01 par value per share). In addition, the Company was authorized to issue 5,000,000 shares of preferred stock at $0.01 par value per share. The Company was created to effect the Merger. The Merger was approved by a requisite vote of OMIF limited partners on April 16, 2013 and was completed on May 20, 2013. | |||||||||||||||||||||||||||||||||||||
Per resolutions of the Board of Directors of the Company on August 9, 2012, the Board of Directors authorized the issuance of 1,000 shares of $0.01 par value Common Stock to William C. Owens in exchange for cash consideration of $1.00 per share (for total consideration of $1,000). Upon effectiveness of the Merger, the outstanding 1,000 shares of Common Stock of the Company held by William C. Owens were cancelled in exchange for $1,000, and every 25 limited partner units of OMIF were converted into one share of Common Stock of the Company. Additionally, the units representing the general partner interests of OFG were treated as follows: i) the 1,496,000 units representing the interest that was an expense of OMIF were cancelled, and ii) the 1,378,256 units representing the interest relating to cash contributions made by OFG to the capital of OMIF were converted into shares of Common Stock of the Company in the same manner limited partnership units were converted into shares of Common Stock. No fractional shares were issued in the Merger; instead, cash adjustments were paid in respect of shares otherwise issuable. | |||||||||||||||||||||||||||||||||||||
On August 9, 2013, the Board of Directors authorized a Rule 10b5-1 stock repurchase plan (the “Repurchase Plan”) which permitted the Company to repurchase up to the lesser of $7 million of its Common Stock or five percent of the shares of Common Stock outstanding as of that date. As of December 31, 2014 and 2013, the Company had repurchased 430,118 and 403,910 shares of its Common Stock, respectively, for a total cost of approximately $5,349,000 and $5,024,000 (including commissions) and an average cost of $12.44 per share. No further repurchases were made under the Repurchase Plan which expired on May 19, 2014. | |||||||||||||||||||||||||||||||||||||
The following table presents the tax treatment for dividends paid by the Company on its Common Stock for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||
Dividends Classified as | Capital Gain | Dividend Classified as Return of Capital | |||||||||||||||||||||||||||||||||||
Ordinary Income | Distribution | ||||||||||||||||||||||||||||||||||||
Year | Total | Dividends | Percent | Dividends | Qualified | Percent | Dividend | Percent | Dividends | ||||||||||||||||||||||||||||
Dividends | Paid | Paid | Dividend | Paid | Paid | ||||||||||||||||||||||||||||||||
Paid(1) | Per Share | Per Share | Income(2) | Per Share | Per Share | ||||||||||||||||||||||||||||||||
Common Stock: | |||||||||||||||||||||||||||||||||||||
2014 | $ | 3,087,360 | $ | 0.287 | 100 | % | $ | 0.255 | — | — | — | 0 | % | $ | 0 | ||||||||||||||||||||||
2013(3) | $ | 2,530,290 | $ | 0.227 | 28.45 | % | $ | 0.023 | — | — | — | 71.55 | % | $ | 0.204 | ||||||||||||||||||||||
(1) Dividends for 2014 include dividend declared for shareholders of record as of December 31, 2014 and paid in January 2015. This amount consisted of a $0.07 per share special dividend and a $0.05 per share regular quarterly dividend. This dividend was a split-year dividend with $0.088 allocable to 2014 for federal income tax purposes and $0.032 allocable to 2015 for federal income tax purposes. | |||||||||||||||||||||||||||||||||||||
(2) Qualified dividend income is eligible for reduced dividend rates. | |||||||||||||||||||||||||||||||||||||
(3) Dividends for 2013 do not include dividends paid prior to the conversion from OMIF to ORM on May 20, 2013. |
Note_10_Restricted_Cash
Note 10 - Restricted Cash | 12 Months Ended |
Dec. 31, 2014 | |
Loss Contingency [Abstract] | |
Contingencies Disclosure [Text Block] | NOTE 10–RESTRICTED CASH |
Contingency Reserves | |
In accordance with the charter, the Company is required to maintain cash, cash equivalents and marketable securities as contingency reserves in an aggregate amount of 1.50% of Capital as defined in the charter. Although the Manager believes the contingency reserves are adequate, it could become necessary for the Company to sell or otherwise liquidate certain of its investments or other assets to cover such contingencies on terms which might not be favorable to the Company, which could lead to unanticipated losses upon sale of such assets. | |
The contingency reserves required per the charter as of December 31, 2014 and 2013 were approximately $3,876,000 and $3,895,000 and are reported as restricted cash in the accompanying consolidated balance sheets. The $6,000,000 required to be held in non-interest bearing accounts as of December 31, 2014 pursuant to the Company’s two lines of credit agreements satisfy this contingency reserve requirement (see Note 7). | |
Escrow Deposits | |
Restricted cash includes deposits held in third party escrow accounts to pay property taxes and insurance on Company real estate in the amounts of approximately $249,000 and $200,000 as of December 31, 2014 and 2013, respectively. |
Note_11_Income_Taxes
Note 11 - Income Taxes | 12 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 11- INCOME TAXES |
The Company operates in such a manner as to qualify as a REIT, under the provisions of the Internal Revenue Code of 1986, as amended (the "Code"); therefore, applicable REIT taxable income is included in the taxable income of its shareholders, to the extent distributed by the Company. To maintain REIT status for federal income tax purposes, the Company is generally required to distribute at least 90% of its REIT taxable income to its shareholders as well as comply with certain other qualification requirements as defined under the Code. As a REIT, the Company is not subject to federal corporate income tax to the extent that it distributes 100% of its REIT taxable income each year. During 2014 and 2013, the Company distributed in excess of 100% of its taxable income to its stockholders. | |
Taxable income from non-REIT activities managed through the Company's taxable REIT subsidiary (“TRS”) (Lone Star Golf, Inc.) is subject to federal, state and local income taxes. The Company did not record a provision for current income taxes related to its TRS for the years ended December 31, 2014 and 2013 as it was in a net loss position. Deferred taxes related to temporary differences in book and taxable income as well as net operating losses of the TRS were not significant. | |
As of December 31, 2014 and 2013, the Company has not recorded a reserve for any uncertain income tax positions. There has been no interest or penalties incurred to date. The Company has capital loss carryforwards from the sale of two properties during 2014 totaling approximately $822,000 as of December 31, 2014. These losses will begin to expire in 2020. | |
As of December 31, 2014, income tax returns for the calendar years ended 2012 through 2014 remain subject to examination by IRS and/or any state or local taxing jurisdiction. Additionally, tax returns from the predecessor entity (OMIF) remain open for the calendar years ended 2011 and 2012, as well as the short year ended May 19, 2013. |
Note_12_Transactions_with_Affi
Note 12 - Transactions with Affiliates | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 12- TRANSACTIONS WITH AFFILIATES |
OFG is entitled to receive from the Company a management fee of up to 2.75% per annum of the average unpaid balance of the Company’s loans at the end of the twelve months in the calendar year for services rendered as Manager of the Company. | |
All of the Company’s loans are serviced by OFG, in consideration for which OFG receives a monthly fee, which, when added to all other fees paid in connection with the servicing of a particular loan, does not exceed the lesser of the customary, competitive fee in the community where the loan is placed for the provision of such mortgage services on that type of loan or up to 0.25% per annum of the unpaid principal balance of the loans. | |
OFG, at its sole discretion may, on a monthly basis, adjust the management and servicing fees as long as they do not exceed the allowable limits calculated on an annual basis. Even though the fees for a month may exceed 1/12 of the maximum limits, at the end of the calendar year the sum of the fees collected for each of the 12 months must be equal to or less than the stated limits. Management fees amounted to approximately $1,727,000 and $1,664,000 for the years ended December 31, 2014 and 2013, respectively, and are included in the accompanying consolidated statements of operations. Service fees amounted to approximately $157,000 and $152,000 for the years ended December 31, 2014 and 2013, respectively, and are included in the accompanying consolidated statements of operations. As of December 31, 2014 and 2013, the Company owed management and servicing fees to OFG in the amount of approximately $171,000 and $294,000, respectively. | |
The maximum servicing fees were paid to OFG during the years ended December 31, 2014 and 2013. The maximum management fees had been paid to OFG during the year ended December 31, 2014. If the maximum management fees had been paid to OFG during the year ended December 31, 2013, the management fees would have been $1,668,000 (increase of $4,000), which would have decreased net income by approximately 0.05%. | |
In determining the management fees to pay to OFG, OFG may consider a number of factors, including current market yields, delinquency experience, uninvested cash and real estate activities. OFG expects that the management fees that it receives from the Company will vary in amount and percentage from period to period. However, due to reduced levels of loans held by the Company during the years ended December 31, 2014 and 2013, OFG has chosen to take close to the maximum compensation that it is able to take pursuant to the Company’s charter and will likely continue to take the maximum compensation for the foreseeable future. | |
Pursuant to the charter, OFG receives all late payment charges from borrowers on loans owned by the Company, with the exception of those loans participated with outside entities. The amounts paid to or collected by OFG for such charges on Company loans totaled approximately $14,000 and $5,000 for the years ended December 31, 2014 and 2013, respectively. In addition, the Company remits other miscellaneous fees to OFG, which are collected from loan payments, loan payoffs or advances from loan principal (i.e. funding, demand and partial release fees). Such fees remitted to OFG totaled approximately $4,000 and $1,000 for the years ended December 31, 2014 and 2013, respectively. | |
OFG originates all loans the Company invests in and receives loan origination fees from borrowers. Such fees earned by OFG amounted to approximately $1,228,000 and $658,000 on loans originated, rewritten or extended of approximately $50,440,000 and $18,977,000 for the years ended December 31, 2014 and 2013, respectively. Such fees as a percentage of loans originated, rewritten or extended by the Company were 2.4% and 3.5% for the years ended December 31, 2014 and 2013, respectively. | |
OFG is reimbursed by the Company for the actual cost of goods, services and materials used for or by the Company and obtained from unaffiliated entities and the salary and related salary expense of OFG’s non-management and non-supervisory personnel performing services for the Company which could be performed by independent parties (subject to certain limitations in the Management Agreement). The amounts reimbursed to OFG by the Company were $704,000 and $742,000 during the years ended December 31, 2014 and 2013, respectively. As of December 31, 2014, there was approximately $113,000 payable to OFG for reimbursable expenses and other fees owed and no amounts payable as of December 31, 2013. The Company also reimbursed certain of OFG’s officers for allowed expenses in the total amount of $1,000 and $19,000 during the years ended December 31, 2014 and 2013, respectively. | |
The Company paid Investor’s Yield, Inc. (a wholly owned subsidiary of OFG) approximately $30,000 and $34,000 in trustee’s fees related to certain foreclosure proceedings on Company loans during the years ended December 31, 2014 and 2013, respectively. | |
In February 2015 (subsequent to year-end), the Company purchased OFG’s full interest in a loan secured by an industrial property located in San Ramon, California with a principal balance of $1,499,000 at face value. |
Note_13_Rental_Income
Note 13 - Rental Income | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Rental Income [Abstract] | |||||
Rental Income [Text Block] | NOTE 13- RENTAL INCOME | ||||
The Company’s real estate properties held for sale and investment are leased to tenants under noncancellable leases with remaining terms ranging from one to twelve years. Certain of the leases require the tenant to pay all or some operating expenses of the properties. The future minimum rental income from noncancellable operating leases due within the five years subsequent to December 31, 2014, and thereafter is as follows: | |||||
Year ending December 31: | |||||
2015 | $ | 7,148,109 | |||
2016 | 3,784,137 | ||||
2017 | 3,129,076 | ||||
2018 | 2,652,363 | ||||
2019 | 2,007,112 | ||||
Thereafter (through 2026) | 3,487,794 | ||||
$ | 22,208,591 | ||||
Note_14_Fair_Value
Note 14 - Fair Value | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Disclosures [Text Block] | NOTE 14- FAIR VALUE | ||||||||||||||||||||
The Company measures its financial and nonfinancial assets and liabilities pursuant to ASC 820 – Fair Value Measurements and Disclosures. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. | |||||||||||||||||||||
Fair value is defined in ASC 820 as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: | |||||||||||||||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities | ||||||||||||||||||||
Level 2 | Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities | ||||||||||||||||||||
Level 3 | Unobservable inputs that are supported by little or no market activity, such as the Company’s own data or assumptions | ||||||||||||||||||||
Level 3 inputs include unobservable inputs that are used when there is little, if any, market activity for the asset or liability measured at fair value. In certain cases, the inputs used to measure fair value fall into different levels of the fair value hierarchy. In such cases, the level in which the fair value measurement in its entirety falls is determined based on the lowest level input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input requires judgment and considers factors specific to the asset or liability being measured. | |||||||||||||||||||||
Management monitors the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the beginning of the reporting period. | |||||||||||||||||||||
Management evaluates the significance of transfers between levels based upon the nature of the financial instrument and size of the transfer relative to total assets, total liabilities or total earnings. | |||||||||||||||||||||
The following is a description of the Company’s valuation methodologies used to measure and disclose the fair values of its financial and nonfinancial assets and liabilities on a recurring and nonrecurring basis. | |||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or when monthly payments are delinquent greater than ninety days. Once a loan is identified as impaired, management measures impairment in accordance with ASC 310-10-35. Impairment is estimated by either the present value of expected cash flows discounted at the note rate or, as a practical expedient, the loan’s observable market price (if available) or the fair value of the underlying collateral, if collateral dependent. The fair value of the loan’s collateral is determined by third party appraisals, broker price opinions, comparable property sales or other indications of value. Those impaired loans not requiring an allowance represent loans for which the fair value of the collateral exceed the recorded investments in such loans. At December 31, 2014 and 2013, the majority of the total impaired loans were evaluated based on the fair value of the collateral by obtaining third party appraisals that valued the collateral primarily by utilizing an income or market approach or some combination of the two. In accordance with ASC 820, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is not available, management determines the fair value of the collateral is further impaired below the appraised value or there are significant unobservable inputs included in a current appraisal, the Company records the impaired loan as nonrecurring Level 3. Unobservable market data included in appraisals often includes adjustments to comparable property sales for such items as location, size and quality to estimate fair values using a sales comparison approach. Unobservable market data also includes cash flow assumptions and capitalization rates used to estimate fair values under an income approach. | |||||||||||||||||||||
Real Estate Held for Sale and Investment | |||||||||||||||||||||
Real estate held for sale and investment includes properties acquired through foreclosure of the related loans. When property is acquired, any excess of the Company’s recorded investment in the loan and accrued interest income over the estimated fair market value of the property, net of estimated selling costs, is charged against the allowance for loan losses. Subsequently, real estate properties held for sale are carried at the lower of carrying value or fair value less costs to sell. The Company periodically compares the carrying value of real estate held for investment to expected future cash flows as determined by internally or third party generated valuations (including third party appraisals that primarily utilize an income or market approach or some combination of the two) for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds future undiscounted cash flows, the assets are reduced to fair value. As fair value is generally based upon unobservable inputs, the Company records the impairment on real estate properties as nonrecurring Level 3. Unobservable market data included in appraisals often includes adjustments to comparable property sales for such items as location, size and quality to estimate fair values using a sales comparison approach. Unobservable market data also includes cash flow assumptions and capitalization rates used to estimate fair values under an income approach. | |||||||||||||||||||||
There were no assets or liabilities measured at fair value on a recurring basis at December 31, 2014 and 2013. The following table presents information about the Company’s assets and liabilities measured at fair value on a nonrecurring basis as of December 31, 2014 and 2013: | |||||||||||||||||||||
Fair Value Measurements Using | |||||||||||||||||||||
Carrying Value | Quoted Prices In Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
2014 | |||||||||||||||||||||
Nonrecurring: | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 529,689 | — | — | $ | 529,689 | |||||||||||||||
Residential | 6,144,000 | — | — | 6,144,000 | |||||||||||||||||
Total | $ | 6,673,689 | — | — | $ | 6,673,689 | |||||||||||||||
Real estate properties: | |||||||||||||||||||||
Commercial | $ | 1,292,500 | — | — | $ | 1,292,500 | |||||||||||||||
Land | 2,334,773 | — | — | 2,334,773 | |||||||||||||||||
Total | $ | 3,627,273 | — | — | $ | 3,627,273 | |||||||||||||||
2013 | |||||||||||||||||||||
Nonrecurring: | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 541,956 | — | — | $ | 541,956 | |||||||||||||||
Residential | 4,896,000 | — | — | 4,896,000 | |||||||||||||||||
Total | $ | 5,437,956 | — | — | $ | 5,437,956 | |||||||||||||||
Real estate properties: | |||||||||||||||||||||
Commercial | $ | 408,000 | — | — | $ | 408,000 | |||||||||||||||
Land | 433,920 | 433,920 | |||||||||||||||||||
Total | $ | 841,920 | — | — | $ | 841,920 | |||||||||||||||
The reversal of loan losses (net) based on the fair value of loan collateral less estimated selling costs for the impaired loans above totaled approximately $1,236,000 and $466,000 during the years ended December 31, 2014 and 2013, respectively. Impairment losses of approximately $179,000 and $666,000 were recorded on the real estate properties above during the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
During the years ended December 31, 2014 and 2013, there were no transfers into or out of Levels 1 and 2. | |||||||||||||||||||||
The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at December 31, 2014 and 2013: | |||||||||||||||||||||
At December 31, 2014: | |||||||||||||||||||||
Description | Fair Value | Valuation Technique | Significant Unobservable Inputs | Input/Range | Weighted Average | ||||||||||||||||
Impaired Loans: | |||||||||||||||||||||
Commercial | $ | 529,689 | Appraisal | Estimate of Future Improvements | 13.60% | - | |||||||||||||||
Capitalization Rate | 6.50% | ||||||||||||||||||||
Comparable Sales Adjustment | (59)% to (2.3)% | ||||||||||||||||||||
Residential | $ | 6,144,000 | Appraisal | Estimate of Future Improvements | 1.80% | ||||||||||||||||
Discount Rate | 12% | ||||||||||||||||||||
Comparable Sales Adjustment | (10)% to 20% | ||||||||||||||||||||
Real Estate Properties: | |||||||||||||||||||||
Commercial | $ | 1,292,500 | Appraisal | Comparable Purchase Offers | (42)% to 13.4% | ||||||||||||||||
Land | $ | 2,334,773 | Appraisal | Comparable Sales Adjustment | 5% to 62.8% | ||||||||||||||||
Discount Rate | 8% | ||||||||||||||||||||
At December 31, 2013: | |||||||||||||||||||||
Description | Fair Value | Valuation Technique | Significant Unobservable Inputs | Input/Range | Weighted Average | ||||||||||||||||
Impaired Loans: | |||||||||||||||||||||
Commercial | $ | 541,956 | Appraisal | Estimate of Future Improvements | 13.60% | ||||||||||||||||
Capitalization Rate | 6.50% | ||||||||||||||||||||
Comparable Sales Adjustment | (59)% to (2.3)% | ||||||||||||||||||||
Residential | $ | 4,896,000 | Appraisal | Capitalization Rate | 5.50% | ||||||||||||||||
Comparable Sales Adjustment | (19.1)% to 39% | ||||||||||||||||||||
Real Estate Properties: | |||||||||||||||||||||
Commercial | $ | 408,000 | Appraisal | Comparable Sales Adjustment | (186.2)% to (27.1)% | ||||||||||||||||
Capitalization Rate | 8.20% | ||||||||||||||||||||
Estimate of Future Improvements | 15.80% | ||||||||||||||||||||
Land | $ | 433,920 | Appraisal | Comparable Sales Adjustment | (33.3)% to 35.5% | 7.50% | |||||||||||||||
Estimate of Future Improvements | 54.10% | ||||||||||||||||||||
Where only one percentage is presented in the above table there was only one unobservable input of that type for one loan or property. Adjustments to comparable sales included items such as market conditions, location, size, condition, access/frontage and intended use. | |||||||||||||||||||||
The approximate carrying amounts and estimated fair values of financial instruments at December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||
Fair Value Measurements at December 31, 2014 | |||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,414,000 | $ | 1,414,000 | $ | — | $ | — | $ | 1,414,000 | |||||||||||
Restricted cash | 6,249,000 | 6,249,000 | — | — | 6,249,000 | ||||||||||||||||
Loans, net | 65,164,000 | — | — | 66,009,000 | 66,009,000 | ||||||||||||||||
Investment in limited liability company | 2,143,000 | — | — | 2,352,000 | 2,352,000 | ||||||||||||||||
Interest and other receivables | 1,482,000 | — | 644,000 | 838,000 | 1,482,000 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Due to Manager | $ | 284,000 | $ | — | $ | 284,000 | $ | — | $ | 284,000 | |||||||||||
Accrued interest payable | 175,000 | — | 113,000 | 62,000 | 175,000 | ||||||||||||||||
Lines of credit payable | 11,450,000 | — | 11,450,000 | — | 11,450,000 | ||||||||||||||||
Notes payable | 37,570,000 | — | 24,428,000 | 13,155,000 | 37,583,000 | ||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 8,159,000 | $ | 8,159,000 | $ | — | $ | — | $ | 8,159,000 | |||||||||||
Restricted cash | 4,095,000 | 4,095,000 | — | — | 4,095,000 | ||||||||||||||||
Loans, net | 54,057,000 | — | — | 54,602,000 | 54,602,000 | ||||||||||||||||
Investment in limited liability company | 2,143,000 | — | — | 2,352,000 | 2,352,000 | ||||||||||||||||
Interest and other receivables | 1,674,000 | — | 238,000 | 1,436,000 | 1,674,000 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Due to Manager | $ | 294,000 | $ | — | $ | 294,000 | $ | — | $ | 294,000 | |||||||||||
Accrued interest payable | 64,000 | — | — | 64,000 | 64,000 | ||||||||||||||||
Notes payable | 13,918,000 | — | — | 13,960,000 | 13,960,000 | ||||||||||||||||
The following methods and assumptions were used by the Company in estimating the fair value of each class of financial instruments: | |||||||||||||||||||||
Cash, cash equivalents and restricted cash: The carrying value of cash and cash equivalents and restricted cash approximates the fair value because of the relatively short maturity of these instruments and are classified as Level 1. | |||||||||||||||||||||
Loans, net: The fair value of loans that are not impaired are estimated using discounted cash flow methodology, using discount rates, which, in the opinion of management, best reflect current market interest rates that would be offered for loans with similar characteristics and credit quality. The fair values of loans that are impaired are estimated by the Company primarily through the use of third party appraisals of the underlying collateral. Such appraisals often include unobservable market data including adjustments to comparable property sales for such items as location, size and quality to estimate fair values using a sales comparison approach and include cash flow assumptions and capitalization rates used to estimate fair values under an income approach. | |||||||||||||||||||||
Investment in limited liability company: The fair value of the Company’s investment in limited liability company is estimated based on an appraisal obtained and is classified as Level 3. | |||||||||||||||||||||
Lines of creditpayable: The fair value of the Company’s lines of credit payable is estimated based upon comparable market indicators of current pricing for the same or similar issue or on the current rate offered to the Company for debt of the same remaining maturity and is generally observable resulting in a Level 2 classification. | |||||||||||||||||||||
Notes payable: The fair values of the Company’s notes payable and related accrued interest payable are estimated based upon comparable market indicators of current pricing for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities resulting in either a Level 2 or Level 3 classification. | |||||||||||||||||||||
Other: The carrying values of interest and other receivables and due to Manager are estimated to approximate fair values due to the short term nature of these instruments and are classified as Level 2 (except for accrued interest and advances related to loans which are classified as Level 3). |
Note_15_Commitments_and_Contin
Note 15 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 15- COMMITMENTS AND CONTINGENCIES |
Environmental Remediation Obligations | |
The Company has an obligation to pay all required costs to remediate and monitor contamination of the real properties owned by 1850. As part of the Operating Agreement executed by the Company and its joint venture partner in 1850, Nanook, the Company has indemnified Nanook against all obligations related to the expected costs to monitor and remediate the contamination. In 2008, the Company had accrued an amount that a third party consultant had estimated will need to be paid to monitor and remediate the site. The majority of clean-up activities were completed during 2012 as part of the tenant’s construction of a new building on the site. Thus, approximately $460,000 was paid by the Company from the previously established liability and an additional $100,000 was accrued during the year ended December 31, 2012 as a result of an updated estimate of future costs to be incurred. If additional amounts are required, it will be an obligation of the Company. As of December 31, 2014 and 2013, approximately $60,000 and $63,000 of this obligation remains accrued on the Company’s books. Management expects that all costs for this remediation will be paid from cash reserves. | |
During the course of due diligence performed by a potential buyer of TOTB during 2012, a low level of arsenic was found in the ground water of a monitoring well located on the property owned by TOTB. While the level of arsenic exceeds the minimum level acceptable for drinking water standards, the water under this property is subject to tidal influence and is not used for domestic consumption. TOTB has retained an environmental consultant to perform additional testing and analysis with the goal of petitioning the appropriate governmental agency to issue a no further action letter for this property due to the low level of contamination and the low quality of the ground water under the property. At this time, the costs of any potential remediation and/or monitoring are unknown and cannot be estimated. As of December 31, 2014 and 2013, approximately $79,000 and $55,000 had been paid/accrued to perform testing and analysis. | |
Contractual Obligations | |
The Company has entered into various contracts for design, architectural and engineering for the potential phase II development of the land owned by TSV. The aggregate amount of these contracts as of the date of this filing is approximately $793,000 of which approximately $282,000 has been incurred as of December 31, 2014. Management expects that all costs for this project will be paid from cash reserves and/or construction financing to be obtained in the future. | |
The Company has also entered into contracts for the construction, demolition and concrete remediation, design, architectural and engineering services related to the renovation of the vacant apartment building owned by TOTB North (see Note 6) in the aggregate amount of approximately $21,786,000 of which approximately $1,557,000 has been incurred to December 31, 2014 in addition to other capitalized costs related to the construction project of $580,000 (total of $2,137,000). Management expects that all costs for this project will be paid from cash reserves or the recently obtained construction loan. It is possible that additional change orders will be submitted and construction costs may be higher than expected. | |
The Company has entered into contracts for new bathrooms and modular offices and improvements to the bridge that accesses the marina held within Brannan Island, LLC in the aggregate amount of approximately $785,000 of which approximately $230,000 has been incurred to December 31, 2014. Management expects that all costs from the project will be paid from cash reserves or advances from the lines of credit. It is possible that additional change orders will be submitted and construction costs may be higher than expected. | |
As of December 31, 2014, the Company has commitments to advance additional funds to borrowers of construction, rehabilitation and other loans in the total amount of approximately $5,935,000 (including approximately $1,645,000 in interest reserves). | |
Legal Proceedings | |
The Company is involved in various legal actions arising in the normal course of business. In the opinion of management, such matters will not have a material effect upon the financial position of the Company. |
Note_16_Subsequent_Events
Note 16 - Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE 16–SUBSEQUENT EVENTS |
720 University, LLC Debt Refinancing | |
In November 2014, 720 University entered into a Real Estate Sale Agreement pursuant to which 720 University agreed to sell the property for $21,000,000 (subsequently reduced to $20,750,000). The buyer deposited $500,000 upon execution and deposited an additional $500,000 once the due diligence period expired in January 2015 and these deposits are non-refundable. On January 30, 2015, an initial closing was held for the purpose of refinancing the 720 University note payable, (see Note 8) and the buyer extended a new loan to 720 University to repay the existing note payable to the bank. The principal amount of the new loan is $9,771,263 and will accrue interest at 6.0% per annum until paid off with the closing of the sale of the property to the buyer which is expected to occur on or about May 28, 2015. |
Note_17_Summary_Quarterly_Cons
Note 17 - Summary Quarterly Consolidated Financial Information (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information [Text Block] | NOTE 17 – SUMMARY QUARTERLY CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) | ||||||||||||||||
The following tables represent unaudited summarized quarterly financial data of the Company for the years ended December 31, 2014 and 2013 which, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Company's results of operations. | |||||||||||||||||
Three Months Ended | |||||||||||||||||
31-Dec-14 | 30-Sep-14 | 30-Jun-14 | 31-Mar-14 | ||||||||||||||
Total revenues | $ | 5,399,844 | $ | 4,705,357 | $ | 4,054,311 | 4,125,493 | ||||||||||
Total expenses | 4,325,811 | 3,709,670 | 3,625,646 | 3,462,856 | |||||||||||||
Operating income | 1,074,033 | 995,687 | 428,665 | 662,637 | |||||||||||||
Gain on sale of real estate, net | 503,254 | 113,113 | 2,349,808 | 277,184 | |||||||||||||
Reversal of (provision for) loan losses | 2,010,765 | (117,680 | ) | 103,820 | (127,172 | ) | |||||||||||
Impairment losses on real estate properties | — | (123,500 | ) | (48,000 | ) | (7,540 | ) | ||||||||||
Net income | 3,588,052 | 867,620 | 2,834,293 | 805,109 | |||||||||||||
Less: Net income attributable to non-controlling interests | (13,693 | ) | (83,797 | ) | (23,409 | ) | (44,546 | ) | |||||||||
Net income attributable to common stockholders | $ | 3,574,359 | $ | 783,823 | $ | 2,810,884 | $ | 760,563 | |||||||||
Net income per common share (basic and diluted) | $ | 0.33 | $ | 0.07 | $ | 0.26 | $ | 0.07 | |||||||||
Weighted average number of common shares outstanding | 10,768,001 | 10,768,001 | 10,768,001 | 10,769,498 | |||||||||||||
Dividends declared per share of Common Stock | $ | 0.12 | $ | 0.05 | $ | 0.05 | $ | 0.05 | |||||||||
Three Months Ended | |||||||||||||||||
31-Dec-13 | 30-Sep-13 | 30-Jun-13 | 31-Mar-13 | ||||||||||||||
Total revenues | $ | 3,519,922 | $ | 3,676,957 | $ | 3,560,035 | 4,604,798 | ||||||||||
Total expenses | 3,338,179 | 3,643,731 | 4,172,275 | 3,488,656 | |||||||||||||
Operating income (loss) | 181,743 | 33,226 | (612,240 | ) | 1,116,142 | ||||||||||||
Gain on sale of real estate, net | 230,765 | 251,887 | 2,429,872 | 30,337 | |||||||||||||
Reversal of provision for loan losses | 445,768 | 419,860 | 6,699,271 | 257,213 | |||||||||||||
Impairment losses on real estate properties | (666,240 | ) | — | — | — | ||||||||||||
Net income | 192,036 | 704,973 | 8,516,903 | 1,403,692 | |||||||||||||
Less: Net (income) loss attributable to non-controlling interests | (21,162 | ) | (3,899 | ) | (2,085,886 | ) | 26,240 | ||||||||||
Net income attributable to common stockholders | $ | 170,874 | $ | 701,074 | $ | 6,431,017 | $ | 1,429,932 | |||||||||
Net income per common share (basic and diluted) | $ | 0.02 | $ | 0.06 | $ | 0.57 | $ | 0.13 | |||||||||
Weighted average number of common shares outstanding | 10,920,690 | 11,196,646 | 11,198,119 | 11,198,119 | |||||||||||||
Dividends declared per share of Common Stock | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0 | |||||||||
Schedule_III_Real_Estate_and_A
Schedule III - Real Estate and Accumulated Depreciation | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Abstract] | |||||||||||||||||||||||||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation Disclosure [Text Block] | Description | Encumbrances | Initial Cost | Capitalized | Sales | Impairment | Accumulated | Carrying | Date | Depreciable | |||||||||||||||||||||
Costs | Writedowns | Depreciation | Value | Acquired | Lives (Years) | ||||||||||||||||||||||||||
169 Condominium Units & 160 Unit Vacant Apartment Building Under Renovation, | $13,983,086 Note and Construction Loan Payable | $ | 34,560,000 | $ | 2,136,658 | $ | — | $ | — | $ | (2,342,700 | ) | $ | 34,353,958 | 2/2/11 | 27.5 | |||||||||||||||
Miami, Florida | |||||||||||||||||||||||||||||||
Retail Complex, Greeley, Colorado | $9,741,463 Note Payable | 4,136,239 | 7,539,507 | (128,274 | ) | — | — | Note | 11,547,472 | 7/31/00 | Jan-39 | ||||||||||||||||||||
4 | |||||||||||||||||||||||||||||||
Commercial and Residential Land under Development, | $3,400,000 | 17,871,561 | 12,578,335 | — | — | — | Note | 30,449,896 | Various | N/A | |||||||||||||||||||||
South Lake Tahoe, California | Notes Payable | 5 | |||||||||||||||||||||||||||||
Retail Complex, South Lake Tahoe, California | $10,445,000 | 6,409,617 | 16,946,784 | — | — | (144,505 | ) | 23,211,896 | Various | May-39 | |||||||||||||||||||||
Note Payable | |||||||||||||||||||||||||||||||
133 Condominium Units, Phoenix, Arizona | None | 5,822,597 | 3,459,377 | — | (1,443,790 | ) | (904,955 | ) | Note | 6,933,229 | 11/18/09 | 5-27.5 | |||||||||||||||||||
6 | |||||||||||||||||||||||||||||||
Residential and Commercial Land, Gypsum, Colorado | None | 9,600,000 | 53,434 | — | (3,840,000 | ) | — | Note | 5,813,434 | 10/1/11 | N/A | ||||||||||||||||||||
7 | |||||||||||||||||||||||||||||||
Assisted Living Facility, Bensalem, Pennsylvania | None | 5,018,166 | — | — | — | (13,166 | ) | 5,005,000 | 12/12/14 | 27.5 | |||||||||||||||||||||
Medical Office Condominium Complex, Gilbert, Arizona | None | 4,535,781 | 180,378 | — | — | — | Note | 4,716,159 | 5/19/10 | May-39 | |||||||||||||||||||||
8 | |||||||||||||||||||||||||||||||
60 Condominium Units, Lakewood, Washington | None | 6,616,881 | 65,502 | — | (1,882,384 | ) | (435,256 | ) | Note | 4,364,743 | 8/20/10 | 27.5 | |||||||||||||||||||
9 | |||||||||||||||||||||||||||||||
Storage Facility, Stockton, California | None | 5,674,000 | 42,980 | — | (1,580,079 | ) | (289,017 | ) | Note | 3,847,884 | 6/3/08 | 15-39 | |||||||||||||||||||
10 | |||||||||||||||||||||||||||||||
Office Condominium Complex, | None | 8,569,286 | 303,178 | (1,095,670 | ) | (3,712,707 | ) | (379,884 | ) | Note | 3,684,203 | 9/26/08 | Feb-39 | ||||||||||||||||||
Roseville, California | 11 | ||||||||||||||||||||||||||||||
Retail Building, Sacramento, California | None | 3,890,968 | — | — | — | — | 3,890,968 | 9/3/10 | N/A | ||||||||||||||||||||||
75 Residential Lots, Auburn, California | None | 13,746,625 | 36,745 | — | (9,904,826 | ) | — | Note | 3,878,544 | 9/27/07 | N/A | ||||||||||||||||||||
12 | |||||||||||||||||||||||||||||||
Industrial Building, | None | 3,428,885 | 54,514 | — | — | (455,665 | ) | 3,027,734 | 11/5/09 | Oct-39 | |||||||||||||||||||||
Sunnyvale, California | |||||||||||||||||||||||||||||||
12 Condominium & 3 Commercial Units, Tacoma, Washington | None | 2,486,400 | 84,909 | — | — | (162,628 | ) | 2,408,681 | 7/8/11 | 27.5-39 | |||||||||||||||||||||
Marina & Boat Club with 179 Boat Slips, | None | 2,002,525 | 255,543 | — | — | (37,620 | ) | 2,220,448 | 1/29/13 | 15-May | |||||||||||||||||||||
Isleton, California | |||||||||||||||||||||||||||||||
Undeveloped, Industrial Land, | None | 3,025,992 | — | — | (1,067,592 | ) | — | Note | 1,958,400 | 12/27/02 | N/A | ||||||||||||||||||||
San Jose, California | 13 | ||||||||||||||||||||||||||||||
Golf Course, | None | 1,917,981 | 102,429 | — | — | — | Note | 2,020,410 | 6/20/09 | N/A | |||||||||||||||||||||
Auburn, California | 14 | ||||||||||||||||||||||||||||||
Unimproved residential and commercial land, Bethel Island, California | None | 2,336,640 | — | (1,867 | ) | — | — | 2,334,773 | 3/11/14 | N/A | |||||||||||||||||||||
Miscellaneous Real Estate | None | (909,891 | ) | 7,348,973 | Various | Various | |||||||||||||||||||||||||
TOTALS | $ | (6,075,287 | ) | $ | 163,016,805 | ||||||||||||||||||||||||||
NOTE 1: All real estate listed above was acquired through foreclosure or deed in lieu of foreclosure other than certain parcels of the commercial and residential land under development located in South Lake Tahoe, California that was purchased in 2012 and 2014. | |||||||||||||||||||||||||||||||
NOTE 2: Changes in real estate held for sale and investment were as follows: | |||||||||||||||||||||||||||||||
Balance at beginning of period (1/1/13) | $ | 127,773,349 | |||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||
Acquisitions through foreclosure | 19,602,478 | ||||||||||||||||||||||||||||||
Investments in real estate properties | 9,017,333 | ||||||||||||||||||||||||||||||
Subtotal | 156,393,160 | ||||||||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||||||||
Cost of real estate properties sold | 18,023,870 | ||||||||||||||||||||||||||||||
Impairment losses on real estate properties | 666,240 | ||||||||||||||||||||||||||||||
Depreciation of properties held for investment | 2,387,086 | ||||||||||||||||||||||||||||||
Balance at end of period (12/31/13) | $ | 135,315,964 | |||||||||||||||||||||||||||||
Balance at beginning of period (1/1/14) | $ | 135,315,964 | |||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||
Acquisitions through foreclosure | 9,572,406 | ||||||||||||||||||||||||||||||
Investments in real estate properties | 21,987,250 | ||||||||||||||||||||||||||||||
Subtotal | 166,875,620 | ||||||||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||||||||
Cost of real estate properties sold | 1,529,227 | ||||||||||||||||||||||||||||||
Impairment losses on real estate properties | 179,040 | ||||||||||||||||||||||||||||||
Depreciation of properties held for investment | 2,150,548 | ||||||||||||||||||||||||||||||
Balance at end of period (12/31/14) | $ | 163,016,805 | |||||||||||||||||||||||||||||
NOTE 3: Changes in accumulated depreciation were as follows: | |||||||||||||||||||||||||||||||
Balance at beginning of period (1/1/13) | $ | 6,518,160 | |||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||
Depreciation expense | 2,387,086 | ||||||||||||||||||||||||||||||
Previous accumulated depreciation on real estate moved back to held for investment | 849,125 | ||||||||||||||||||||||||||||||
Subtotal | 9,754,371 | ||||||||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||||||||
Accumulated depreciation of real estate sold during 2013 | 8,663 | ||||||||||||||||||||||||||||||
Accumulated depreciation on real estate moved to held for sale | 145,989 | ||||||||||||||||||||||||||||||
Balance at end of period (12/31/13) | $ | 9,599,719 | |||||||||||||||||||||||||||||
Balance at beginning of period (1/1/14) | $ | 9,599,719 | |||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||
Depreciation expense | 2,150,548 | ||||||||||||||||||||||||||||||
Subtotal | 11,750,267 | ||||||||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||||||||
Accumulated depreciation on real estate moved to held for sale | 5,674,980 | ||||||||||||||||||||||||||||||
Balance at end of period (12/31/14) | $ | 6,075,287 | |||||||||||||||||||||||||||||
NOTE 4: Property was moved to Held for Sale during 2014 and accumulated depreciation up to that time of $5,170,761 is shown net with the Initial Cost above. | |||||||||||||||||||||||||||||||
NOTE 5: Capitalized costs include purchases of parcels in the total amount of $6,074,000 adjacent to parcels obtained via foreclosure. | |||||||||||||||||||||||||||||||
NOTE 6: A write-down of $1,115,660 was recorded on this property during 2011 based on a third party appraisal. Accumulated depreciation of $328,130 was netted with basis at time of write-down and is reflected in write-down amount above. | |||||||||||||||||||||||||||||||
NOTE 7: A write-down of $3,840,000 was recorded on this property during 2012 based on a third party appraisal. | |||||||||||||||||||||||||||||||
NOTE 8: Property was moved to Held for Sale during 2014 and accumulated depreciation up to that time of $504,219 is shown net with the Initial Cost above. | |||||||||||||||||||||||||||||||
NOTE 9: A write-down of $1,608,100 was recorded on this property during 2011 based on a third party appraisal. Accumulated depreciation of $274,284 was netted with basis at time of write-down and is reflected in write-down amount above. | |||||||||||||||||||||||||||||||
NOTE 10: Write-downs totaling $1,183,571 were recorded on this property during 2009 and 2011 based on third party appraisals. Accumulated depreciation of $396,508 was netted with basis at time of write-downs and is reflected in write-down amount above. | |||||||||||||||||||||||||||||||
NOTE 11: Write-downs totaling $3,712,707 were recorded on this property during 2010 and 2011 based on third party appraisals and comparable sales. | |||||||||||||||||||||||||||||||
NOTE 12: Write-downs totaling $9,904,826 were recorded on this property during 2009 through 2012 based on broker's opinions of value and third party appraisals. | |||||||||||||||||||||||||||||||
NOTE 13: Write-downs totaling $1,067,592 were recorded on this property in 2010 through 2012 based on third party appraisals. | |||||||||||||||||||||||||||||||
NOTE 14: Property was moved to Held for Sale during 2013 and accumulated depreciation up to that time of $145,989 is shown net with the Initial Cost above. | |||||||||||||||||||||||||||||||
NOTE 15: The aggregate cost of the above real estate properties for Federal income tax purposes is approximately $230,061,000. |
Schedule_IV_Mortgage_Loans_on_
Schedule IV - Mortgage Loans on Real Estate | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Mortgage Loans on Real Estate [Abstract] | |||||||||||||||||||||||||
Mortgage Loans on Real Estate, by Loan Disclosure [Text Block] | Description | Interest Rate | Final Maturity date | Carrying Amount of Mortgages | Principal Amount of Loans Subject to Delinquent Principal | Principal Amount of Loans Subject to Delinquent Payments | |||||||||||||||||||
TYPE OF PROPERTY | |||||||||||||||||||||||||
Commercial | 5.00-10.00% | Current to October 2018 | $ | 52,531,537 | $ | 1,078,752 | $ | 1,078,752 | |||||||||||||||||
Residential | 7.50-11.00% | Current to March 2028 | 13,491,906 | 8,397,329 | 7,788,747 | ||||||||||||||||||||
Land | 8.00% | April 2015 to February 2016 | 2,010,068 | — | 1,860,068 | ||||||||||||||||||||
TOTAL | $ | 68,033,511 | $ | 9,476,081 | $ | 10,727,567 | |||||||||||||||||||
AMOUNT OF LOAN | |||||||||||||||||||||||||
$0-500,000 | 7.88-8.00% | Current to March 2028 | $ | 653,747 | $ | — | $ | 253,747 | |||||||||||||||||
$500,001-1,000,000 | 7.50-8.00% | Current to March 2017 | 5,627,223 | 862,329 | — | ||||||||||||||||||||
$1,000,001-5,000,000 | 5.00-10.00% | Current to October 2018 | 31,499,358 | 1,078,752 | 2,938,820 | ||||||||||||||||||||
Over $5,000,000 | 8.00-11.00% | Current to August 2018 | 30,253,183 | 7,535,000 | 7,535,000 | ||||||||||||||||||||
TOTAL | $ | 68,033,511 | $ | 9,476,081 | $ | 10,727,567 | |||||||||||||||||||
POSITION OF LOAN | |||||||||||||||||||||||||
First | 5.00-11.00% | Current to March 2028 | $ | 65,533,511 | $ | 9,476,081 | $ | 10,727,567 | |||||||||||||||||
Second | 10.00% | Oct-18 | 2,500,000 | — | — | ||||||||||||||||||||
TOTAL | $ | 68,033,511 | $ | 9,476,081 | $ | 10,727,567 | |||||||||||||||||||
NOTE 1: All loans are arranged by or acquired from an affiliate of the Company, namely Owens Financial Group, Inc., the Manager. | |||||||||||||||||||||||||
NOTE 2: | |||||||||||||||||||||||||
Balance at beginning of period (1/1/13) | $ | 70,262,262 | |||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||
New loans, including from sales of real estate properties | 31,618,852 | ||||||||||||||||||||||||
Advances moved to principal of loans | 22,880 | ||||||||||||||||||||||||
Subtotal | 101,903,994 | ||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||
Collection of principal | 15,641,192 | ||||||||||||||||||||||||
Foreclosures | 27,466,509 | ||||||||||||||||||||||||
Balance at end of period (12/31/13) | $ | 58,796,293 | |||||||||||||||||||||||
Balance at beginning of period (1/1/14) | $ | 58,796,293 | |||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||
New loans | 44,505,577 | ||||||||||||||||||||||||
Discount accretion | 122,004 | ||||||||||||||||||||||||
Subtotal | 103,423,874 | ||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||
Collection of principal | 27,718,917 | ||||||||||||||||||||||||
Foreclosures | 7,671,446 | ||||||||||||||||||||||||
Balance at end of period (12/31/14) | $ | 68,033,511 | |||||||||||||||||||||||
NOTE 3: Included in the above loans are the following loans which exceed 3% of the total loans as of December 31, 2014: | |||||||||||||||||||||||||
Description | Interest Rate | Final Maturity Date | Periodic Payment Terms | Prior Liens | Face Amount of Mortgages | Carrying Amount of Mortgages | Principal Amount of Loans Subject to Delinquent Principal or Interest | ||||||||||||||||||
Mixed Commercial Buildings (Office) | 10 | % | 8/1/18 and 10/1/18 | Interest only, balance due at maturity | $ | 0 | $ | 11,588,183 | $ | 11,588,183 | $ | 0 | |||||||||||||
Oakland, California (2 Notes) | |||||||||||||||||||||||||
Office Building and Single Family Home | 8 | % | 6/1/16 | Interest and principal due monthly | 0 | 8,500,000 | 7,780,000 | 0 | |||||||||||||||||
Dublin, California | |||||||||||||||||||||||||
Condominiums | 11 | % | 7/1/09 | Interest only, balance due at maturity | 0 | 7,535,000 | 5,695,655 | 5,695,655 | |||||||||||||||||
Phoenix, Arizona | Note 5 | ||||||||||||||||||||||||
Office Building | 8 | % | 4/15/16 | Interest only, balance due at maturity | 0 | 5,850,000 | 5,850,000 | 0 | |||||||||||||||||
Santa Clara, California | |||||||||||||||||||||||||
Marina | 8 | % | 10/1/15 | Interest only, balance due at maturity | 0 | 3,200,000 | 3,200,000 | 0 | |||||||||||||||||
Tiburon, California | |||||||||||||||||||||||||
Retail Building | 8 | % | 1/1/17 | Interest only, balance due at maturity | 0 | 4,593,803 | 2,809,838 | 0 | |||||||||||||||||
South Lake Tahoe, California | |||||||||||||||||||||||||
Apartment Building | 8 | % | 6/15/16 | Interest only, balance due at maturity | 0 | 2,300,000 | 2,135,821 | 0 | |||||||||||||||||
Berkeley, California | |||||||||||||||||||||||||
Apartment Building | 7.5 | % | 3/1/17 | Interest only, balance due at maturity | 0 | 2,986,625 | 2,064,760 | 0 | |||||||||||||||||
San Anselmo, California | |||||||||||||||||||||||||
TOTALS | $ | 0 | $ | 46,553,611 | $ | 41,124,257 | $ | 5,695,655 | |||||||||||||||||
NOTE 4: The aggregate cost of the Company’s loans for Federal income tax purposes is approximately $68,570,000 as of December 31, 2014. | |||||||||||||||||||||||||
NOTE 5: A third party appraisal was obtained on this loan’s underlying property resulting in a specific loan loss allowance of $1,839,345 as of December 31, 2014. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation |
The consolidated financial statements include the accounts of the Company and its majority and wholly owned limited liability companies (see Notes 5, 6, 8 and 11). All significant inter-company transactions and balances have been eliminated in consolidation. The Company also has a 50% ownership interest in a limited liability company accounted for under the equity method (see Note 4). The Company is in the business of providing mortgage lending services and manages its business as one operating segment. Due to foreclosure activity, the Company also owns and manages real estate assets. | |
Certain reclassifications have been made to the 2013 consolidated financial statements to conform to the 2014 presentation. None of the reclassifications had an impact on net income. | |
Use of Estimates, Policy [Policy Text Block] | Management Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Such estimates relate principally to the determination of the allowance for loan losses, including the valuation of impaired loans, the valuation of real estate held for sale and investment, and the estimate of the environmental remediation liability (see Notes 5, 6, 14 and 15). Fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves or write-downs. Such estimates are inherently imprecise and actual results could differ significantly from such estimates. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Standards |
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” or ASU 2014-09. ASU 2014-09 broadly amends the accounting guidance for revenue recognition. ASU 2014-09 is effective for the first quarter of 2017, and is to be applied prospectively. Early adoption is not permitted. The Company is currently evaluating the impact that ASU 2014-09 will have on its consolidated financial statements. | |
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” or ASU 2014-15. ASU 2014-15 introduces an explicit requirement for management to assess and provide certain disclosures if there is substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 is effective for the first quarter of 2017. The Company is currently evaluating the impact that ASU 2014-15 will have on its consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”. ASU 2014-08 updated guidance that changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has (or will have) a major effect on an entity's operations and financial results. As a result of this new guidance, future dispositions of real estate owned assets may no longer meet the criteria to be considered as discontinued operations. The guidance is effective prospectively as of the first quarter of 2015, with early adoption permitted for new disposals or new classifications as held-for-sale. The Company does not expect that ASU 2014-08 will have a material effect on its consolidated financial statements. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents |
Cash and cash equivalents include funds on deposit with financial institutions. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash |
Restricted cash includes contingency reserves required pursuant to the Company’s charter, non-interest bearing deposits required pursuant to the Company’s two lines of credit (see Note 7), the deposit required pursuant to the Company’s construction loan payable (see Note 8) and escrow deposits for property taxes and insurance to be paid on certain Company real estate properties. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Credit Risk |
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents and loans. The Company places its cash and cash equivalents with financial institutions and, at times, cash held may exceed the Federal Deposit Insurance Corporation, or “FDIC”, insured limit. The Company has exposure to credit risk on its loans and other investments. The Company’s Manager, OFG, will seek to manage credit risk by performing analysis of underlying collateral assets. | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | Loans and Allowance for Loan Losses |
Loans are generally stated at the principal amount outstanding. Advances under the terms of a loan to pay property taxes, insurance, legal and other costs are generally capitalized and reported as interest and other receivables. The Company’s portfolio consists primarily of real estate loans generally collateralized by first, second and third deeds of trust. Interest income on loans is accrued by the simple interest method. Loans are generally placed on nonaccrual status when the borrowers are past due greater than ninety days or when full payment of principal and interest is not expected. When a loan is classified as nonaccrual, interest accruals discontinue and all past due interest remains accrued until the loan becomes current, is paid off or is foreclosed upon. Interest accruals are resumed on such loans only when they are brought fully current with respect to interest and principal and when, in the judgment of management, the loans are estimated to be fully collectible as to both principal and interest. Cash receipts on nonaccrual loans are used to reduce any outstanding accrued interest, and then are recorded as interest income, except when such payments are specifically designated as principal reduction or when management does not believe the Company’s investment in the loan is fully recoverable. The Company does not incur origination costs and does not earn or collect origination fees from borrowers as OFG is entitled to all such fees (see Note 12). | |
Loans and the related accrued interest and advances are analyzed by management on a periodic basis for ultimate recovery. The allowance for loan losses is management’s estimate of probable credit losses inherent in the Company’s loan portfolio that have been incurred as of the balance sheet date. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance after credit losses and loan growth. Credit exposures determined to be uncollectible are charged against the allowance. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The overall allowance consists of two primary components: specific reserves related to impaired loans that are individually evaluated for impairment and general reserves for inherent losses related to loans that are not considered impaired and are collectively evaluated for impairment. | |
Regardless of the loan type, a loan is considered impaired when, based on current information and events, management believes it is probable that the Company will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the original agreement or when the monthly payments are delinquent for more than 90 days on a loan. All loans determined to be impaired are individually evaluated for impairment. When a loan is considered impaired, management estimates impairment based on the present value of expected future cash flows discounted at the loan's effective interest rate, except that as a practical expedient, management may measure impairment based on a loan's observable market price, or the fair value of the collateral if the loan is collateral dependent. A loan is collateral dependent if the repayment of the loan is expected to be provided solely by the underlying collateral. These valuations are generally updated during the fourth quarter but may be updated during interim periods if deemed appropriate by management. | |
A restructuring of a debt constitutes a troubled debt restructuring (“TDR”) if the Company for economic or legal reasons related to the debtor's financial difficulties grants a concession to the debtor that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. Loans that are reported as TDR’s are considered impaired and measured for impairment as described above. | |
The determination of the general reserve for loans that are not considered impaired and are collectively evaluated for impairment is based on estimates made by management, to include, but not limited to, consideration of historical losses by portfolio segment, internal asset classifications, and qualitative factors to include economic trends in the Company’s service areas, industry experience and trends, geographic concentrations, estimated collateral values, the Company’s underwriting policies, the character of the loan portfolio, and probable incurred losses inherent in the portfolio taken as a whole. | |
The Company maintains a separate allowance for each portfolio segment (loan type). These portfolio segments include commercial real estate, residential real estate and land loans. The allowance for loan losses attributable to each portfolio segment, which includes both impaired loans that are individually evaluated for impairment and loans that are not considered impaired and are collectively evaluated for impairment, is combined to determine the Company’s overall allowance, which is included on the consolidated balance sheet. The reserve for loans that are not considered impaired consists of reserve factors that are based on management’s assessment of the following for each portfolio segment: (1) inherent credit risk, (2) historical losses, and (3) other qualitative factors. These reserve factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment described below. | |
Improved and Unimproved Land [Policy Text Block] | Land Loans – These loans generally possess a higher inherent risk of loss than other real estate portfolio segments. A major risk arises from the necessity to complete projects within specified costs and time lines. Trends in the construction industry significantly impact the credit quality of these loans as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects. |
Commercial Real Estate and Condominiums [Policy Text Block] | Commercial and Residential Real Estate Loans – Adverse economic developments or an overbuilt market impact commercial and residential real estate projects and may result in troubled loans. Trends in vacancy rates of properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flow to service debt obligations. |
Other Assets [Policy Text Block] | Other Assets |
Other assets primarily include deferred rent, capitalized lease commissions, prepaid expenses, deposits and inventory. Amortization of lease commissions is provided on the straight-line method over the lives of the related leases. | |
Deferred Charges, Policy [Policy Text Block] | Deferred Financing Costs |
Issuance and other costs related to the Company’s lines of credit and certain notes payable are capitalized and amortized to interest expense under either the straight-line or effective interest methods over the terms of the respective debt instruments. Deferred financing costs related to the construction loan in TOTB North, LLC are being amortized to the construction project under the straight-line method over the term of construction/renovation. | |
Revenue Recognition, Policy [Policy Text Block] | Rental Income |
The Company leases multifamily rental units under operating leases with terms of generally one year or less. Rental revenue is recognized, net of rental concessions, on a straight-line method over the related lease term. Rental income on commercial property is recognized on a straight-line basis over the term of each operating lease. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. | |
Real Estate Held for Development and Sale, Policy [Policy Text Block] | Real Estate Held for Sale |
Real estate held for sale includes real estate acquired in full or partial settlement of loan obligations, generally through foreclosure, that is being marketed for sale. Real estate held for sale is recorded at acquisition at the property’s estimated fair value less estimated costs to sell. Any excess of the recorded investment in the loan over the net realizable value is charged against the allowance for loan losses. Any excess of the net realizable value over the recorded investment in the loan is credited first to the allowance for loan losses as a recovery to the extent charge-offs had been recorded previously and, then, to earnings as gain on foreclosure of loan. | |
After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, real estate held for sale is analyzed periodically for changes in fair values and any subsequent write down is charged to impairment losses on real estate properties. Any recovery in the fair value subsequent to such a write down is recorded (not to exceed the net realizable value at acquisition) as an offset to impairment losses on real estate properties. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. | |
Real Estate, Policy [Policy Text Block] | Real Estate Held for Investment |
Real estate held for investment includes real estate acquired in full or partial settlement of loan obligations, generally through foreclosure, that is not being marketed for sale and is either being operated, such as rental properties; is being managed through the development process, including obtaining appropriate and necessary entitlements, permits and construction; or are idle properties awaiting more favorable market conditions or properties the Company cannot sell without placing the Company’s REIT status at risk or become subject to prohibited transactions penalty tax. Real estate held for investment is recorded at acquisition at the property’s estimated fair value, less estimated costs to sell. | |
After acquisition, costs incurred relating to the development and improvement of the property are capitalized, whereas costs relating to operating or holding the property are expensed. Subsequent to acquisition, management periodically compares the carrying value of real estate to expected undiscounted future cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds future undiscounted cash flows, the assets are reduced to estimated fair value. | |
Depreciation of real estate properties held for investment is provided on the straight-line method over the estimated remaining useful lives of buildings and improvements (5-39 years). Depreciation of tenant improvements is provided on the straight-line method over the shorter of their estimated useful lives or the lease terms. | |
The Company reclassifies real estate properties from held for investment to held for sale in the period in which all of the following criteria are met: 1) Management commits to a plan to sell the property; 2) The property is available for immediate sale in its present condition; 3) An active program to locate a buyer has been initiated; 4) The sale of the property is probable and the transfer of the property is expected to qualify for recognition as a completed sale, within one year; and 5) Actions required to complete the plan indicate it is unlikely that significant changes to the plan will be made or the plan will be withdrawn. Such real estate properties are recorded at the time of reclassification at their carrying amounts prior to reclassification or fair value, whichever is lower. This establishes the initial basis at which the properties are accounted for as held for sale, as described above. | |
If circumstances arise that previously were considered unlikely, and, as a result, the Company decides not to sell a real estate property classified as held for sale, the property is reclassified to held for investment. The property is then measured individually at the lower of its carrying amount, adjusted for depreciation or amortization expense that would have been recognized had the property been continuously classified as held for investment, or its fair value at the date of the subsequent decision not to sell. | |
Environmental Costs, Policy [Policy Text Block] | Environmental Remediation Liability |
Liabilities related to future environmental remediation costs are recorded when remediation or monitoring or both are probable and the costs can be reasonably estimated. The Company’s environmental remediation liability related to the property located in Santa Clara, California (held within 1850 De La Cruz, LLC – see Notes 4 and 15) was recorded based on a third party consultant’s estimate of the costs required to remediate and monitor the contamination. | |
Earnings Per Share, Policy [Policy Text Block] | Earnings per Common Share |
The Company calculates basic earnings per common share by dividing net income attributable to common stockholders for the period by the weighted-average shares of Common Stock outstanding for that period. Diluted earnings per common share takes into effect any dilutive instruments, unless if when doing so such effect would be anti-dilutive. At the present time, the Company has not issued any restricted stock or restricted stock units. | |
Income Tax, Policy [Policy Text Block] | Income Taxes |
The Company has elected to be taxed as a REIT. As a result of the Company’s expected REIT qualification and its distribution policy, the Company does not generally expect to pay U.S. federal corporate level income taxes. Many of the REIT requirements, however, are highly technical and complex. To qualify as a REIT, the Company must meet a number of organizational and operational requirements, including a requirement that the Company distribute annually at least 90% of the Company’s REIT taxable income to the Company’s stockholders. If the Company has previously qualified as a REIT and fails to qualify as a REIT in any subsequent taxable year and does not qualify for certain statutory relief provisions, the Company will be subject to U.S. federal income taxes at regular corporate rates (including any applicable alternative minimum tax) and may be precluded from qualifying as a REIT for the Company’s four subsequent taxable years. Even if the Company qualifies for taxation as a REIT, the Company may be subject to certain U.S. federal, state, local and foreign taxes on the Company’s income and property and to U.S. federal income and excise taxes on the Company’s undistributed REIT taxable income. | |
The Company has elected or may elect to treat certain of its existing or newly created corporate subsidiaries as taxable REIT subsidiaries (each a “TRS”). In general, a TRS of a REIT may hold assets that the REIT cannot hold directly and, subject to certain exceptions related to hotels and healthcare properties, may engage in any real estate or non-real estate related business. A TRS is treated as a regular corporation and is subject to federal, state, local and foreign taxes on its income and property. Lone Star Golf, Inc. is treated as a TRS of the Company. | |
ASC 740 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has analyzed its various federal and state filing positions and believes that its income tax filing positions and deductions are well documented and supported. | |
Certain entities included in the Company’s consolidated financial statements are subject to certain state and local taxes. These taxes are recorded as general and administrative expenses in the accompanying consolidated financial statements. |
Note_3_Loans_and_Allowance_for1
Note 3 - Loans and Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Note 3 - Loans and Allowance for Loan Losses (Tables) [Line Items] | |||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | 2014 | Commercial | Residential | Land | Total | ||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Beginning balance | $ | 932,651 | $ | 3,798,203 | $ | 8,234 | $ | 4,739,088 | |||||||||||||||||
Charge-offs | — | — | — | — | |||||||||||||||||||||
(Reversal) Provision | (44,391 | ) | (1,823,091 | ) | (2,251 | ) | (1,869,733 | ) | |||||||||||||||||
Ending balance | $ | 888,260 | $ | 1,975,112 | $ | 5,983 | $ | 2,869,355 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 550,010 | $ | 1,839,345 | $ | — | $ | 2,389,355 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 338,250 | $ | 135,767 | $ | 5,983 | $ | 480,000 | |||||||||||||||||
Ending balance | $ | 888,260 | $ | 1,975,112 | $ | 5,983 | $ | 2,869,355 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||
Ending balance | $ | 52,531,537 | $ | 13,491,906 | $ | 2,010,068 | $ | 68,033,511 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 12,666,935 | $ | 7,788,747 | $ | 1,860,068 | $ | 22,315,750 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 39,864,602 | $ | 5,703,159 | $ | 150,000 | $ | 45,717,761 | |||||||||||||||||
2013 | Commercial | Residential | Land | Total | |||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
Beginning balance | $ | 1,493,585 | $ | 4,401,448 | $ | 18,522,864 | $ | 24,417,897 | |||||||||||||||||
Charge-offs | — | — | (11,856,697 | ) | (11,856,697 | ) | |||||||||||||||||||
(Reversal) Provision | (560,934 | ) | (603,245 | ) | (6,657,933 | ) | (7,822,112 | ) | |||||||||||||||||
Ending balance | $ | 932,651 | $ | 3,798,203 | $ | 8,234 | $ | 4,739,088 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 537,743 | $ | 3,087,345 | $ | — | $ | 3,625,088 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 394,908 | $ | 710,858 | $ | 8,234 | $ | 1,114,000 | |||||||||||||||||
Ending balance | $ | 932,651 | $ | 3,798,203 | $ | 8,234 | $ | 4,739,088 | |||||||||||||||||
Loans: | |||||||||||||||||||||||||
Ending balance | $ | 26,158,878 | $ | 27,461,913 | $ | 5,175,502 | $ | 58,796,293 | |||||||||||||||||
Ending balance: individually evaluated for impairment | $ | 16,566,878 | $ | 10,195,725 | $ | 4,975,502 | $ | 31,738,105 | |||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 9,592,000 | $ | 17,266,188 | $ | 200,000 | $ | 27,058,188 | |||||||||||||||||
Past Due Financing Receivables [Table Text Block] | 31-Dec-14 | Loans | Loans | Loans | Total Past | Current Loans | Total Loans | ||||||||||||||||||
30-59 Days | 60-89 Days | 90 or More Days | Due Loans | ||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | 1,078,752 | $ | 1,078,752 | $ | 51,452,785 | $ | 52,531,537 | |||||||||||||
Residential | — | — | 7,788,747 | 7,788,747 | 5,703,159 | 13,491,906 | |||||||||||||||||||
Land | — | — | 1,860,068 | 1,860,068 | 150,000 | 2,010,068 | |||||||||||||||||||
$ | — | $ | — | $ | 10,727,567 | $ | 10,727,567 | $ | 57,305,944 | $ | 68,033,511 | ||||||||||||||
31-Dec-13 | Loans | Loans | Loans | Total Past | Current Loans | Total Loans | |||||||||||||||||||
30-59 Days | 60-89 Days | 90 or More Days | Due Loans | ||||||||||||||||||||||
Past Due | Past Due | Past Due | |||||||||||||||||||||||
Commercial | $ | — | $ | 690,000 | $ | 5,100,699 | $ | 5,790,699 | $ | 20,368,179 | $ | 26,158,878 | |||||||||||||
Residential | — | — | 10,195,725 | 10,195,725 | 17,266,188 | 27,461,913 | |||||||||||||||||||
Land | — | — | 4,975,502 | 4,975,502 | 200,000 | 5,175,502 | |||||||||||||||||||
$ | — | $ | 690,000 | $ | 20,271,926 | $ | 20,961,926 | $ | 37,834,367 | $ | 58,796,293 | ||||||||||||||
Impaired Financing Receivables [Table Text Block] | As of December 31, 2014 | Year Ended December 31, 2014 | |||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 11,588,183 | $ | 11,588,183 | $ | — | $ | 16,686,997 | $ | 1,714,230 | |||||||||||||||
Residential | 253,747 | 253,747 | — | 1,986,693 | 688,196 | ||||||||||||||||||||
Land | 1,860,068 | 1,860,068 | — | 2,440,015 | 173,484 | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | 1,079,699 | 1,078,752 | 550,010 | 1,079,681 | 47,958 | ||||||||||||||||||||
Residential | 7,983,345 | 7,535,000 | 1,839,345 | 7,983,366 | 150,000 | ||||||||||||||||||||
Land | — | — | — | — | — | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial | $ | 12,667,882 | $ | 12,666,935 | $ | 550,010 | $ | 17,766,678 | $ | 1,762,188 | |||||||||||||||
Residential | $ | 8,267,092 | $ | 7,788,747 | $ | 1,839,345 | $ | 9,970,059 | $ | 838,196 | |||||||||||||||
Land | $ | 1,860,068 | $ | 1,860,068 | $ | — | $ | 2,440,015 | $ | 173,484 | |||||||||||||||
As of December 31, 2013 | Year Ended December 31, 2013 | ||||||||||||||||||||||||
Recorded | Unpaid | Related | Average | Interest | |||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||
With no related allowance recorded: | |||||||||||||||||||||||||
Commercial | $ | 16,212,899 | $ | 15,488,126 | $ | — | $ | 10,880,512 | $ | 704,623 | |||||||||||||||
Residential | 2,734,228 | 2,660,725 | — | 2,841,401 | 134,702 | ||||||||||||||||||||
Land | 5,017,839 | 4,975,502 | — | 4,984,885 | 259,281 | ||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||
Commercial | 1,079,699 | 1,078,752 | 537,743 | 1,079,699 | 21,000 | ||||||||||||||||||||
Residential | 7,983,345 | 7,535,000 | 3,087,345 | 7,983,342 | 198,100 | ||||||||||||||||||||
Land | — | — | — | 8,761,503 | — | ||||||||||||||||||||
Total: | |||||||||||||||||||||||||
Commercial | $ | 17,292,598 | $ | 16,566,878 | $ | 537,743 | $ | 11,960,212 | $ | 725,623 | |||||||||||||||
Residential | $ | 10,717,573 | $ | 10,195,725 | $ | 3,087,345 | $ | 10,824,743 | $ | 332,802 | |||||||||||||||
Land | $ | 5,017,839 | $ | 4,975,502 | $ | — | $ | 13,746,388 | $ | 259,281 | |||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | Modifications | ||||||||||||||||||||||||
During the Year Ended December 31, 2014 | |||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | |||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||||||
Troubled Debt RestructuringsThat Occurred During the Year | |||||||||||||||||||||||||
Land | 1 | $ | 1,860,068 | $ | 1,860,068 | ||||||||||||||||||||
Modifications | |||||||||||||||||||||||||
During the Year Ended December 31, 2013 | |||||||||||||||||||||||||
Number of | Pre-Modification | Post-Modification | |||||||||||||||||||||||
Contracts | Outstanding | Outstanding | |||||||||||||||||||||||
Recorded Investment | Recorded Investment | ||||||||||||||||||||||||
Troubled Debt RestructuringsThat Occurred During the Year | |||||||||||||||||||||||||
Commercial | 1 | $ | 2,638,530 | $ | 8,966,179 | ||||||||||||||||||||
Residential | 1 | 272,028 | 272,028 | ||||||||||||||||||||||
Subsequent Default [Member] | |||||||||||||||||||||||||
Note 3 - Loans and Allowance for Loan Losses (Tables) [Line Items] | |||||||||||||||||||||||||
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | Troubled Debt Restructurings That Subsequently DefaultedDuring the Year | Number of | Recorded | ||||||||||||||||||||||
Contracts | Investment | ||||||||||||||||||||||||
Residential | 1 | $ | 272,028 |
Note_5_Real_Estate_Held_for_Sa1
Note 5 - Real Estate Held for Sale (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Disclosure Text Block [Abstract] | |||||||||
Properties Acquired Through Foreclosure [Table Text Block] | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Residential | $ | — | $ | 93,647 | |||||
Land (including land under development) | 36,263,330 | 3,427,200 | |||||||
Retail | 16,494,440 | — | |||||||
Golf course | 2,020,410 | 1,961,284 | |||||||
Office | 4,716,159 | — | |||||||
Marina | — | 408,000 | |||||||
$ | 59,494,339 | $ | 5,890,131 |
Note_6_Real_Estate_Held_for_In1
Note 6 - Real Estate Held for Investment (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Note 6 - Real Estate Held for Investment (Tables) [Line Items] | |||||||||||||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | Description | Encumbrances | Initial Cost | Capitalized | Sales | Impairment | Accumulated | Carrying | Date | Depreciable | |||||||||||||||||||||
Costs | Writedowns | Depreciation | Value | Acquired | Lives (Years) | ||||||||||||||||||||||||||
169 Condominium Units & 160 Unit Vacant Apartment Building Under Renovation, | $13,983,086 Note and Construction Loan Payable | $ | 34,560,000 | $ | 2,136,658 | $ | — | $ | — | $ | (2,342,700 | ) | $ | 34,353,958 | 2/2/11 | 27.5 | |||||||||||||||
Miami, Florida | |||||||||||||||||||||||||||||||
Retail Complex, Greeley, Colorado | $9,741,463 Note Payable | 4,136,239 | 7,539,507 | (128,274 | ) | — | — | Note | 11,547,472 | 7/31/00 | Jan-39 | ||||||||||||||||||||
4 | |||||||||||||||||||||||||||||||
Commercial and Residential Land under Development, | $3,400,000 | 17,871,561 | 12,578,335 | — | — | — | Note | 30,449,896 | Various | N/A | |||||||||||||||||||||
South Lake Tahoe, California | Notes Payable | 5 | |||||||||||||||||||||||||||||
Retail Complex, South Lake Tahoe, California | $10,445,000 | 6,409,617 | 16,946,784 | — | — | (144,505 | ) | 23,211,896 | Various | May-39 | |||||||||||||||||||||
Note Payable | |||||||||||||||||||||||||||||||
133 Condominium Units, Phoenix, Arizona | None | 5,822,597 | 3,459,377 | — | (1,443,790 | ) | (904,955 | ) | Note | 6,933,229 | 11/18/09 | 5-27.5 | |||||||||||||||||||
6 | |||||||||||||||||||||||||||||||
Residential and Commercial Land, Gypsum, Colorado | None | 9,600,000 | 53,434 | — | (3,840,000 | ) | — | Note | 5,813,434 | 10/1/11 | N/A | ||||||||||||||||||||
7 | |||||||||||||||||||||||||||||||
Assisted Living Facility, Bensalem, Pennsylvania | None | 5,018,166 | — | — | — | (13,166 | ) | 5,005,000 | 12/12/14 | 27.5 | |||||||||||||||||||||
Medical Office Condominium Complex, Gilbert, Arizona | None | 4,535,781 | 180,378 | — | — | — | Note | 4,716,159 | 5/19/10 | May-39 | |||||||||||||||||||||
8 | |||||||||||||||||||||||||||||||
60 Condominium Units, Lakewood, Washington | None | 6,616,881 | 65,502 | — | (1,882,384 | ) | (435,256 | ) | Note | 4,364,743 | 8/20/10 | 27.5 | |||||||||||||||||||
9 | |||||||||||||||||||||||||||||||
Storage Facility, Stockton, California | None | 5,674,000 | 42,980 | — | (1,580,079 | ) | (289,017 | ) | Note | 3,847,884 | 6/3/08 | 15-39 | |||||||||||||||||||
10 | |||||||||||||||||||||||||||||||
Office Condominium Complex, | None | 8,569,286 | 303,178 | (1,095,670 | ) | (3,712,707 | ) | (379,884 | ) | Note | 3,684,203 | 9/26/08 | Feb-39 | ||||||||||||||||||
Roseville, California | 11 | ||||||||||||||||||||||||||||||
Retail Building, Sacramento, California | None | 3,890,968 | — | — | — | — | 3,890,968 | 9/3/10 | N/A | ||||||||||||||||||||||
75 Residential Lots, Auburn, California | None | 13,746,625 | 36,745 | — | (9,904,826 | ) | — | Note | 3,878,544 | 9/27/07 | N/A | ||||||||||||||||||||
12 | |||||||||||||||||||||||||||||||
Industrial Building, | None | 3,428,885 | 54,514 | — | — | (455,665 | ) | 3,027,734 | 11/5/09 | Oct-39 | |||||||||||||||||||||
Sunnyvale, California | |||||||||||||||||||||||||||||||
12 Condominium & 3 Commercial Units, Tacoma, Washington | None | 2,486,400 | 84,909 | — | — | (162,628 | ) | 2,408,681 | 7/8/11 | 27.5-39 | |||||||||||||||||||||
Marina & Boat Club with 179 Boat Slips, | None | 2,002,525 | 255,543 | — | — | (37,620 | ) | 2,220,448 | 1/29/13 | 15-May | |||||||||||||||||||||
Isleton, California | |||||||||||||||||||||||||||||||
Undeveloped, Industrial Land, | None | 3,025,992 | — | — | (1,067,592 | ) | — | Note | 1,958,400 | 12/27/02 | N/A | ||||||||||||||||||||
San Jose, California | 13 | ||||||||||||||||||||||||||||||
Golf Course, | None | 1,917,981 | 102,429 | — | — | — | Note | 2,020,410 | 6/20/09 | N/A | |||||||||||||||||||||
Auburn, California | 14 | ||||||||||||||||||||||||||||||
Unimproved residential and commercial land, Bethel Island, California | None | 2,336,640 | — | (1,867 | ) | — | — | 2,334,773 | 3/11/14 | N/A | |||||||||||||||||||||
Miscellaneous Real Estate | None | (909,891 | ) | 7,348,973 | Various | Various | |||||||||||||||||||||||||
TOTALS | $ | (6,075,287 | ) | $ | 163,016,805 | ||||||||||||||||||||||||||
Impairment Losses On Real Estate Held for Investment [Table Text Block] | 2013 | ||||||||||||||||||||||||||||||
Two improved residential lots, West Sacramento, California | $ | 13,440 | |||||||||||||||||||||||||||||
Six improved residential lots, Coeur D’Alene, Idaho | 652,800 | ||||||||||||||||||||||||||||||
$ | 666,240 | ||||||||||||||||||||||||||||||
By Property [Member] | |||||||||||||||||||||||||||||||
Note 6 - Real Estate Held for Investment (Tables) [Line Items] | |||||||||||||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | December 31, | December 31, | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||
Land (1) | $ | 10,797,656 | $ | 46,873,135 | |||||||||||||||||||||||||||
Residential | 48,154,258 | 47,037,370 | |||||||||||||||||||||||||||||
Retail | 23,211,896 | 15,588,452 | |||||||||||||||||||||||||||||
Office | 4,416,108 | 9,348,331 | |||||||||||||||||||||||||||||
Industrial | 4,486,797 | 4,605,910 | |||||||||||||||||||||||||||||
Storage | 3,847,884 | 3,943,780 | |||||||||||||||||||||||||||||
Marina | 3,602,867 | 2,028,855 | |||||||||||||||||||||||||||||
Assisted care | 5,005,000 | — | |||||||||||||||||||||||||||||
$ | 103,522,466 | $ | 129,425,833 | ||||||||||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||||
Land and land improvements | $ | 39,003,422 | $ | 73,591,953 | |||||||||||||||||||||||||||
Buildings and improvements | 70,594,331 | 65,433,599 | |||||||||||||||||||||||||||||
109,597,753 | 139,025,552 | ||||||||||||||||||||||||||||||
Less: Accumulated depreciation and amortization | (6,075,287 | ) | (9,599,719 | ) | |||||||||||||||||||||||||||
$ | 103,522,466 | $ | 129,425,833 |
Note_7_Lines_of_Credit_Payable1
Note 7 - Lines of Credit Payable (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||
Schedule of Line of Credit Facilities [Table Text Block] | As of December 31, 2014 | As of December 31, 2013 | |||||||||||||||
Outstanding | Total | Outstanding | Total | ||||||||||||||
Balance | Commitment | Balance | Commitment | ||||||||||||||
CB&T Line of Credit | $ | 11,450,000 | $ | 17,355,000 | $ | — | $ | — | |||||||||
Opus Bank Line of Credit | — | 16,721,000 | — | — | |||||||||||||
Total | $ | 11,450,000 | $ | 34,076,000 | $ | — | $ | — | |||||||||
Schedule of Financial Instruments Owned and Pledged as Collateral [Table Text Block] | Loans: | December 31, | |||||||||||||||
2014 | |||||||||||||||||
Commercial | $ | 11,505,000 | |||||||||||||||
Real Estate: | |||||||||||||||||
Residential | 6,933,229 | ||||||||||||||||
Storage | 3,847,884 | ||||||||||||||||
Industrial | 3,027,735 | ||||||||||||||||
Total | $ | 13,808,848 | |||||||||||||||
Loans: | December 31, | ||||||||||||||||
2014 | |||||||||||||||||
Commercial | $ | 13,630,000 | |||||||||||||||
Real Estate: | |||||||||||||||||
Office | 9,132,267 | ||||||||||||||||
Industrial | 1,459,063 | ||||||||||||||||
Total | $ | 10,591,330 |
Note_8_Notes_and_Loans_Payable1
Note 8 - Notes and Loans Payable on Real Estate (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure Text Block [Abstract] | ||||||||||||||||
Schedule of Debt [Table Text Block] | December 31, | December 31, | Interest | Payment | Maturity Date | |||||||||||
2014 | 2013 | Rate | Terms/Frequency | |||||||||||||
720 University, LLC Note Payable | $ | 9,741,463 | $ | 9,917,585 | 5.07% | Amortizing | Mar-15 | |||||||||
Monthly | ||||||||||||||||
Tahoe Stateline Venture, LLC Note #1 | 2,900,000 | 2,900,000 | 5.00% | Interest Only | Dec-16 | |||||||||||
Semi-annual | ||||||||||||||||
Tahoe Stateline Venture, LLC Note #2 | — | 400,000 | 5.00% | Interest Only | Dec-16 | |||||||||||
Semi-annual | ||||||||||||||||
Tahoe Stateline Venture, LLC Note #3 | 500,000 | 700,000 | 5.00% | Interest Only | Aug-17 | |||||||||||
Quarterly | ||||||||||||||||
TOTB North, LLC Construction Loan Payable | 1,007,919 | — | 4.50% | Amortizing | Jun-17 | |||||||||||
Monthly | ||||||||||||||||
TOTB Miami, LLC Loan Payable | 12,975,167 | — | 4.26% | Amortizing | Nov-17 | |||||||||||
Monthly | ||||||||||||||||
Tahoe Stateline Venture, LLC Loan Payable | 10,445,000 | — | 3.47% | Amortizing | Jan-21 | |||||||||||
Monthly | ||||||||||||||||
$ | 37,569,549 | $ | 13,917,585 | |||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | Twelve months ending December 31: | |||||||||||||||
2015 | $ | 9,741,463 | ||||||||||||||
2016 | 2,900,000 | |||||||||||||||
2017 | 14,483,086 | |||||||||||||||
2021 | 10,445,000 | |||||||||||||||
$ | 37,569,549 |
Note_9_Stockholders_Equity_Tab
Note 9 - Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||
Dividends Declared [Table Text Block] | Dividends Classified as | Capital Gain | Dividend Classified as Return of Capital | ||||||||||||||||||||||||||||||||||
Ordinary Income | Distribution | ||||||||||||||||||||||||||||||||||||
Year | Total | Dividends | Percent | Dividends | Qualified | Percent | Dividend | Percent | Dividends | ||||||||||||||||||||||||||||
Dividends | Paid | Paid | Dividend | Paid | Paid | ||||||||||||||||||||||||||||||||
Paid(1) | Per Share | Per Share | Income(2) | Per Share | Per Share | ||||||||||||||||||||||||||||||||
Common Stock: | |||||||||||||||||||||||||||||||||||||
2014 | $ | 3,087,360 | $ | 0.287 | 100 | % | $ | 0.255 | — | — | — | 0 | % | $ | 0 | ||||||||||||||||||||||
2013(3) | $ | 2,530,290 | $ | 0.227 | 28.45 | % | $ | 0.023 | — | — | — | 71.55 | % | $ | 0.204 |
Note_13_Rental_Income_Tables
Note 13 - Rental Income (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Rental Income [Abstract] | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ending December 31: | ||||
2015 | $ | 7,148,109 | |||
2016 | 3,784,137 | ||||
2017 | 3,129,076 | ||||
2018 | 2,652,363 | ||||
2019 | 2,007,112 | ||||
Thereafter (through 2026) | 3,487,794 | ||||
$ | 22,208,591 |
Note_14_Fair_Value_Tables
Note 14 - Fair Value (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | Fair Value Measurements Using | ||||||||||||||||||||
Carrying Value | Quoted Prices In Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | ||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
2014 | |||||||||||||||||||||
Nonrecurring: | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 529,689 | — | — | $ | 529,689 | |||||||||||||||
Residential | 6,144,000 | — | — | 6,144,000 | |||||||||||||||||
Total | $ | 6,673,689 | — | — | $ | 6,673,689 | |||||||||||||||
Real estate properties: | |||||||||||||||||||||
Commercial | $ | 1,292,500 | — | — | $ | 1,292,500 | |||||||||||||||
Land | 2,334,773 | — | — | 2,334,773 | |||||||||||||||||
Total | $ | 3,627,273 | — | — | $ | 3,627,273 | |||||||||||||||
2013 | |||||||||||||||||||||
Nonrecurring: | |||||||||||||||||||||
Impaired loans: | |||||||||||||||||||||
Commercial | $ | 541,956 | — | — | $ | 541,956 | |||||||||||||||
Residential | 4,896,000 | — | — | 4,896,000 | |||||||||||||||||
Total | $ | 5,437,956 | — | — | $ | 5,437,956 | |||||||||||||||
Real estate properties: | |||||||||||||||||||||
Commercial | $ | 408,000 | — | — | $ | 408,000 | |||||||||||||||
Land | 433,920 | 433,920 | |||||||||||||||||||
Total | $ | 841,920 | — | — | $ | 841,920 | |||||||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | Description | Fair Value | Valuation Technique | Significant Unobservable Inputs | Input/Range | Weighted Average | |||||||||||||||
Impaired Loans: | |||||||||||||||||||||
Commercial | $ | 529,689 | Appraisal | Estimate of Future Improvements | 13.60% | - | |||||||||||||||
Capitalization Rate | 6.50% | ||||||||||||||||||||
Comparable Sales Adjustment | (59)% to (2.3)% | ||||||||||||||||||||
Residential | $ | 6,144,000 | Appraisal | Estimate of Future Improvements | 1.80% | ||||||||||||||||
Discount Rate | 12% | ||||||||||||||||||||
Comparable Sales Adjustment | (10)% to 20% | ||||||||||||||||||||
Real Estate Properties: | |||||||||||||||||||||
Commercial | $ | 1,292,500 | Appraisal | Comparable Purchase Offers | (42)% to 13.4% | ||||||||||||||||
Land | $ | 2,334,773 | Appraisal | Comparable Sales Adjustment | 5% to 62.8% | ||||||||||||||||
Discount Rate | 8% | ||||||||||||||||||||
Description | Fair Value | Valuation Technique | Significant Unobservable Inputs | Input/Range | Weighted Average | ||||||||||||||||
Impaired Loans: | |||||||||||||||||||||
Commercial | $ | 541,956 | Appraisal | Estimate of Future Improvements | 13.60% | ||||||||||||||||
Capitalization Rate | 6.50% | ||||||||||||||||||||
Comparable Sales Adjustment | (59)% to (2.3)% | ||||||||||||||||||||
Residential | $ | 4,896,000 | Appraisal | Capitalization Rate | 5.50% | ||||||||||||||||
Comparable Sales Adjustment | (19.1)% to 39% | ||||||||||||||||||||
Real Estate Properties: | |||||||||||||||||||||
Commercial | $ | 408,000 | Appraisal | Comparable Sales Adjustment | (186.2)% to (27.1)% | ||||||||||||||||
Capitalization Rate | 8.20% | ||||||||||||||||||||
Estimate of Future Improvements | 15.80% | ||||||||||||||||||||
Land | $ | 433,920 | Appraisal | Comparable Sales Adjustment | (33.3)% to 35.5% | 7.50% | |||||||||||||||
Estimate of Future Improvements | 54.10% | ||||||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurements at December 31, 2014 | ||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 1,414,000 | $ | 1,414,000 | $ | — | $ | — | $ | 1,414,000 | |||||||||||
Restricted cash | 6,249,000 | 6,249,000 | — | — | 6,249,000 | ||||||||||||||||
Loans, net | 65,164,000 | — | — | 66,009,000 | 66,009,000 | ||||||||||||||||
Investment in limited liability company | 2,143,000 | — | — | 2,352,000 | 2,352,000 | ||||||||||||||||
Interest and other receivables | 1,482,000 | — | 644,000 | 838,000 | 1,482,000 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Due to Manager | $ | 284,000 | $ | — | $ | 284,000 | $ | — | $ | 284,000 | |||||||||||
Accrued interest payable | 175,000 | — | 113,000 | 62,000 | 175,000 | ||||||||||||||||
Lines of credit payable | 11,450,000 | — | 11,450,000 | — | 11,450,000 | ||||||||||||||||
Notes payable | 37,570,000 | — | 24,428,000 | 13,155,000 | 37,583,000 | ||||||||||||||||
Fair Value Measurements at December 31, 2013 | |||||||||||||||||||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||
Financial assets | |||||||||||||||||||||
Cash and cash equivalents | $ | 8,159,000 | $ | 8,159,000 | $ | — | $ | — | $ | 8,159,000 | |||||||||||
Restricted cash | 4,095,000 | 4,095,000 | — | — | 4,095,000 | ||||||||||||||||
Loans, net | 54,057,000 | — | — | 54,602,000 | 54,602,000 | ||||||||||||||||
Investment in limited liability company | 2,143,000 | — | — | 2,352,000 | 2,352,000 | ||||||||||||||||
Interest and other receivables | 1,674,000 | — | 238,000 | 1,436,000 | 1,674,000 | ||||||||||||||||
Financial liabilities | |||||||||||||||||||||
Due to Manager | $ | 294,000 | $ | — | $ | 294,000 | $ | — | $ | 294,000 | |||||||||||
Accrued interest payable | 64,000 | — | — | 64,000 | 64,000 | ||||||||||||||||
Notes payable | 13,918,000 | — | — | 13,960,000 | 13,960,000 |
Note_17_Summary_Quarterly_Cons1
Note 17 - Summary Quarterly Consolidated Financial Information (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | Three Months Ended | ||||||||||||||||
31-Dec-14 | 30-Sep-14 | 30-Jun-14 | 31-Mar-14 | ||||||||||||||
Total revenues | $ | 5,399,844 | $ | 4,705,357 | $ | 4,054,311 | 4,125,493 | ||||||||||
Total expenses | 4,325,811 | 3,709,670 | 3,625,646 | 3,462,856 | |||||||||||||
Operating income | 1,074,033 | 995,687 | 428,665 | 662,637 | |||||||||||||
Gain on sale of real estate, net | 503,254 | 113,113 | 2,349,808 | 277,184 | |||||||||||||
Reversal of (provision for) loan losses | 2,010,765 | (117,680 | ) | 103,820 | (127,172 | ) | |||||||||||
Impairment losses on real estate properties | — | (123,500 | ) | (48,000 | ) | (7,540 | ) | ||||||||||
Net income | 3,588,052 | 867,620 | 2,834,293 | 805,109 | |||||||||||||
Less: Net income attributable to non-controlling interests | (13,693 | ) | (83,797 | ) | (23,409 | ) | (44,546 | ) | |||||||||
Net income attributable to common stockholders | $ | 3,574,359 | $ | 783,823 | $ | 2,810,884 | $ | 760,563 | |||||||||
Net income per common share (basic and diluted) | $ | 0.33 | $ | 0.07 | $ | 0.26 | $ | 0.07 | |||||||||
Weighted average number of common shares outstanding | 10,768,001 | 10,768,001 | 10,768,001 | 10,769,498 | |||||||||||||
Dividends declared per share of Common Stock | $ | 0.12 | $ | 0.05 | $ | 0.05 | $ | 0.05 | |||||||||
Three Months Ended | |||||||||||||||||
31-Dec-13 | 30-Sep-13 | 30-Jun-13 | 31-Mar-13 | ||||||||||||||
Total revenues | $ | 3,519,922 | $ | 3,676,957 | $ | 3,560,035 | 4,604,798 | ||||||||||
Total expenses | 3,338,179 | 3,643,731 | 4,172,275 | 3,488,656 | |||||||||||||
Operating income (loss) | 181,743 | 33,226 | (612,240 | ) | 1,116,142 | ||||||||||||
Gain on sale of real estate, net | 230,765 | 251,887 | 2,429,872 | 30,337 | |||||||||||||
Reversal of provision for loan losses | 445,768 | 419,860 | 6,699,271 | 257,213 | |||||||||||||
Impairment losses on real estate properties | (666,240 | ) | — | — | — | ||||||||||||
Net income | 192,036 | 704,973 | 8,516,903 | 1,403,692 | |||||||||||||
Less: Net (income) loss attributable to non-controlling interests | (21,162 | ) | (3,899 | ) | (2,085,886 | ) | 26,240 | ||||||||||
Net income attributable to common stockholders | $ | 170,874 | $ | 701,074 | $ | 6,431,017 | $ | 1,429,932 | |||||||||
Net income per common share (basic and diluted) | $ | 0.02 | $ | 0.06 | $ | 0.57 | $ | 0.13 | |||||||||
Weighted average number of common shares outstanding | 10,920,690 | 11,196,646 | 11,198,119 | 11,198,119 | |||||||||||||
Dividends declared per share of Common Stock | $ | 0.05 | $ | 0.05 | $ | 0.15 | $ | 0 |
Schedule_III_Real_Estate_and_A1
Schedule III - Real Estate and Accumulated Depreciation (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Schedule III - Real Estate and Accumulated Depreciation (Tables) [Line Items] | |||||||||||||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | Description | Encumbrances | Initial Cost | Capitalized | Sales | Impairment | Accumulated | Carrying | Date | Depreciable | |||||||||||||||||||||
Costs | Writedowns | Depreciation | Value | Acquired | Lives (Years) | ||||||||||||||||||||||||||
169 Condominium Units & 160 Unit Vacant Apartment Building Under Renovation, | $13,983,086 Note and Construction Loan Payable | $ | 34,560,000 | $ | 2,136,658 | $ | — | $ | — | $ | (2,342,700 | ) | $ | 34,353,958 | 2/2/11 | 27.5 | |||||||||||||||
Miami, Florida | |||||||||||||||||||||||||||||||
Retail Complex, Greeley, Colorado | $9,741,463 Note Payable | 4,136,239 | 7,539,507 | (128,274 | ) | — | — | Note | 11,547,472 | 7/31/00 | Jan-39 | ||||||||||||||||||||
4 | |||||||||||||||||||||||||||||||
Commercial and Residential Land under Development, | $3,400,000 | 17,871,561 | 12,578,335 | — | — | — | Note | 30,449,896 | Various | N/A | |||||||||||||||||||||
South Lake Tahoe, California | Notes Payable | 5 | |||||||||||||||||||||||||||||
Retail Complex, South Lake Tahoe, California | $10,445,000 | 6,409,617 | 16,946,784 | — | — | (144,505 | ) | 23,211,896 | Various | May-39 | |||||||||||||||||||||
Note Payable | |||||||||||||||||||||||||||||||
133 Condominium Units, Phoenix, Arizona | None | 5,822,597 | 3,459,377 | — | (1,443,790 | ) | (904,955 | ) | Note | 6,933,229 | 11/18/09 | 5-27.5 | |||||||||||||||||||
6 | |||||||||||||||||||||||||||||||
Residential and Commercial Land, Gypsum, Colorado | None | 9,600,000 | 53,434 | — | (3,840,000 | ) | — | Note | 5,813,434 | 10/1/11 | N/A | ||||||||||||||||||||
7 | |||||||||||||||||||||||||||||||
Assisted Living Facility, Bensalem, Pennsylvania | None | 5,018,166 | — | — | — | (13,166 | ) | 5,005,000 | 12/12/14 | 27.5 | |||||||||||||||||||||
Medical Office Condominium Complex, Gilbert, Arizona | None | 4,535,781 | 180,378 | — | — | — | Note | 4,716,159 | 5/19/10 | May-39 | |||||||||||||||||||||
8 | |||||||||||||||||||||||||||||||
60 Condominium Units, Lakewood, Washington | None | 6,616,881 | 65,502 | — | (1,882,384 | ) | (435,256 | ) | Note | 4,364,743 | 8/20/10 | 27.5 | |||||||||||||||||||
9 | |||||||||||||||||||||||||||||||
Storage Facility, Stockton, California | None | 5,674,000 | 42,980 | — | (1,580,079 | ) | (289,017 | ) | Note | 3,847,884 | 6/3/08 | 15-39 | |||||||||||||||||||
10 | |||||||||||||||||||||||||||||||
Office Condominium Complex, | None | 8,569,286 | 303,178 | (1,095,670 | ) | (3,712,707 | ) | (379,884 | ) | Note | 3,684,203 | 9/26/08 | Feb-39 | ||||||||||||||||||
Roseville, California | 11 | ||||||||||||||||||||||||||||||
Retail Building, Sacramento, California | None | 3,890,968 | — | — | — | — | 3,890,968 | 9/3/10 | N/A | ||||||||||||||||||||||
75 Residential Lots, Auburn, California | None | 13,746,625 | 36,745 | — | (9,904,826 | ) | — | Note | 3,878,544 | 9/27/07 | N/A | ||||||||||||||||||||
12 | |||||||||||||||||||||||||||||||
Industrial Building, | None | 3,428,885 | 54,514 | — | — | (455,665 | ) | 3,027,734 | 11/5/09 | Oct-39 | |||||||||||||||||||||
Sunnyvale, California | |||||||||||||||||||||||||||||||
12 Condominium & 3 Commercial Units, Tacoma, Washington | None | 2,486,400 | 84,909 | — | — | (162,628 | ) | 2,408,681 | 7/8/11 | 27.5-39 | |||||||||||||||||||||
Marina & Boat Club with 179 Boat Slips, | None | 2,002,525 | 255,543 | — | — | (37,620 | ) | 2,220,448 | 1/29/13 | 15-May | |||||||||||||||||||||
Isleton, California | |||||||||||||||||||||||||||||||
Undeveloped, Industrial Land, | None | 3,025,992 | — | — | (1,067,592 | ) | — | Note | 1,958,400 | 12/27/02 | N/A | ||||||||||||||||||||
San Jose, California | 13 | ||||||||||||||||||||||||||||||
Golf Course, | None | 1,917,981 | 102,429 | — | — | — | Note | 2,020,410 | 6/20/09 | N/A | |||||||||||||||||||||
Auburn, California | 14 | ||||||||||||||||||||||||||||||
Unimproved residential and commercial land, Bethel Island, California | None | 2,336,640 | — | (1,867 | ) | — | — | 2,334,773 | 3/11/14 | N/A | |||||||||||||||||||||
Miscellaneous Real Estate | None | (909,891 | ) | 7,348,973 | Various | Various | |||||||||||||||||||||||||
TOTALS | $ | (6,075,287 | ) | $ | 163,016,805 | ||||||||||||||||||||||||||
Changes in Real Estate Held for Sale and Investment [Member] | |||||||||||||||||||||||||||||||
Schedule III - Real Estate and Accumulated Depreciation (Tables) [Line Items] | |||||||||||||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | Balance at beginning of period (1/1/13) | $ | 127,773,349 | ||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||
Acquisitions through foreclosure | 19,602,478 | ||||||||||||||||||||||||||||||
Investments in real estate properties | 9,017,333 | ||||||||||||||||||||||||||||||
Subtotal | 156,393,160 | ||||||||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||||||||
Cost of real estate properties sold | 18,023,870 | ||||||||||||||||||||||||||||||
Impairment losses on real estate properties | 666,240 | ||||||||||||||||||||||||||||||
Depreciation of properties held for investment | 2,387,086 | ||||||||||||||||||||||||||||||
Balance at end of period (12/31/13) | $ | 135,315,964 | |||||||||||||||||||||||||||||
Balance at beginning of period (1/1/14) | $ | 135,315,964 | |||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||
Acquisitions through foreclosure | 9,572,406 | ||||||||||||||||||||||||||||||
Investments in real estate properties | 21,987,250 | ||||||||||||||||||||||||||||||
Subtotal | 166,875,620 | ||||||||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||||||||
Cost of real estate properties sold | 1,529,227 | ||||||||||||||||||||||||||||||
Impairment losses on real estate properties | 179,040 | ||||||||||||||||||||||||||||||
Depreciation of properties held for investment | 2,150,548 | ||||||||||||||||||||||||||||||
Balance at end of period (12/31/14) | $ | 163,016,805 | |||||||||||||||||||||||||||||
Changes in Accumulated Depreciation [Member] | |||||||||||||||||||||||||||||||
Schedule III - Real Estate and Accumulated Depreciation (Tables) [Line Items] | |||||||||||||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | Balance at beginning of period (1/1/13) | $ | 6,518,160 | ||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||
Depreciation expense | 2,387,086 | ||||||||||||||||||||||||||||||
Previous accumulated depreciation on real estate moved back to held for investment | 849,125 | ||||||||||||||||||||||||||||||
Subtotal | 9,754,371 | ||||||||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||||||||
Accumulated depreciation of real estate sold during 2013 | 8,663 | ||||||||||||||||||||||||||||||
Accumulated depreciation on real estate moved to held for sale | 145,989 | ||||||||||||||||||||||||||||||
Balance at end of period (12/31/13) | $ | 9,599,719 | |||||||||||||||||||||||||||||
Balance at beginning of period (1/1/14) | $ | 9,599,719 | |||||||||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||||||||
Depreciation expense | 2,150,548 | ||||||||||||||||||||||||||||||
Subtotal | 11,750,267 | ||||||||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||||||||
Accumulated depreciation on real estate moved to held for sale | 5,674,980 | ||||||||||||||||||||||||||||||
Balance at end of period (12/31/14) | $ | 6,075,287 |
Schedule_IV_Mortgage_Loans_on_1
Schedule IV - Mortgage Loans on Real Estate (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Schedule IV - Mortgage Loans on Real Estate (Tables) [Line Items] | |||||||||||||||||||||||||
Schedule of Participating Mortgage Loans [Table Text Block] | Description | Interest Rate | Final Maturity date | Carrying Amount of Mortgages | Principal Amount of Loans Subject to Delinquent Principal | Principal Amount of Loans Subject to Delinquent Payments | |||||||||||||||||||
TYPE OF PROPERTY | |||||||||||||||||||||||||
Commercial | 5.00-10.00% | Current to October 2018 | $ | 52,531,537 | $ | 1,078,752 | $ | 1,078,752 | |||||||||||||||||
Residential | 7.50-11.00% | Current to March 2028 | 13,491,906 | 8,397,329 | 7,788,747 | ||||||||||||||||||||
Land | 8.00% | April 2015 to February 2016 | 2,010,068 | — | 1,860,068 | ||||||||||||||||||||
TOTAL | $ | 68,033,511 | $ | 9,476,081 | $ | 10,727,567 | |||||||||||||||||||
AMOUNT OF LOAN | |||||||||||||||||||||||||
$0-500,000 | 7.88-8.00% | Current to March 2028 | $ | 653,747 | $ | — | $ | 253,747 | |||||||||||||||||
$500,001-1,000,000 | 7.50-8.00% | Current to March 2017 | 5,627,223 | 862,329 | — | ||||||||||||||||||||
$1,000,001-5,000,000 | 5.00-10.00% | Current to October 2018 | 31,499,358 | 1,078,752 | 2,938,820 | ||||||||||||||||||||
Over $5,000,000 | 8.00-11.00% | Current to August 2018 | 30,253,183 | 7,535,000 | 7,535,000 | ||||||||||||||||||||
TOTAL | $ | 68,033,511 | $ | 9,476,081 | $ | 10,727,567 | |||||||||||||||||||
POSITION OF LOAN | |||||||||||||||||||||||||
First | 5.00-11.00% | Current to March 2028 | $ | 65,533,511 | $ | 9,476,081 | $ | 10,727,567 | |||||||||||||||||
Second | 10.00% | Oct-18 | 2,500,000 | — | — | ||||||||||||||||||||
TOTAL | $ | 68,033,511 | $ | 9,476,081 | $ | 10,727,567 | |||||||||||||||||||
Changes in Mortgage Loans on Real Estate [Member] | |||||||||||||||||||||||||
Schedule IV - Mortgage Loans on Real Estate (Tables) [Line Items] | |||||||||||||||||||||||||
Schedule of Participating Mortgage Loans [Table Text Block] | Balance at beginning of period (1/1/13) | $ | 70,262,262 | ||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||
New loans, including from sales of real estate properties | 31,618,852 | ||||||||||||||||||||||||
Advances moved to principal of loans | 22,880 | ||||||||||||||||||||||||
Subtotal | 101,903,994 | ||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||
Collection of principal | 15,641,192 | ||||||||||||||||||||||||
Foreclosures | 27,466,509 | ||||||||||||||||||||||||
Balance at end of period (12/31/13) | $ | 58,796,293 | |||||||||||||||||||||||
Balance at beginning of period (1/1/14) | $ | 58,796,293 | |||||||||||||||||||||||
Additions during period: | |||||||||||||||||||||||||
New loans | 44,505,577 | ||||||||||||||||||||||||
Discount accretion | 122,004 | ||||||||||||||||||||||||
Subtotal | 103,423,874 | ||||||||||||||||||||||||
Deductions during period: | |||||||||||||||||||||||||
Collection of principal | 27,718,917 | ||||||||||||||||||||||||
Foreclosures | 7,671,446 | ||||||||||||||||||||||||
Balance at end of period (12/31/14) | $ | 68,033,511 | |||||||||||||||||||||||
Loans Which Exceed Three Percent of the Total Loans [Member] | |||||||||||||||||||||||||
Schedule IV - Mortgage Loans on Real Estate (Tables) [Line Items] | |||||||||||||||||||||||||
Schedule of Participating Mortgage Loans [Table Text Block] | Description | Interest Rate | Final Maturity Date | Periodic Payment Terms | Prior Liens | Face Amount of Mortgages | Carrying Amount of Mortgages | Principal Amount of Loans Subject to Delinquent Principal or Interest | |||||||||||||||||
Mixed Commercial Buildings (Office) | 10 | % | 8/1/18 and 10/1/18 | Interest only, balance due at maturity | $ | 0 | $ | 11,588,183 | $ | 11,588,183 | $ | 0 | |||||||||||||
Oakland, California (2 Notes) | |||||||||||||||||||||||||
Office Building and Single Family Home | 8 | % | 6/1/16 | Interest and principal due monthly | 0 | 8,500,000 | 7,780,000 | 0 | |||||||||||||||||
Dublin, California | |||||||||||||||||||||||||
Condominiums | 11 | % | 7/1/09 | Interest only, balance due at maturity | 0 | 7,535,000 | 5,695,655 | 5,695,655 | |||||||||||||||||
Phoenix, Arizona | Note 5 | ||||||||||||||||||||||||
Office Building | 8 | % | 4/15/16 | Interest only, balance due at maturity | 0 | 5,850,000 | 5,850,000 | 0 | |||||||||||||||||
Santa Clara, California | |||||||||||||||||||||||||
Marina | 8 | % | 10/1/15 | Interest only, balance due at maturity | 0 | 3,200,000 | 3,200,000 | 0 | |||||||||||||||||
Tiburon, California | |||||||||||||||||||||||||
Retail Building | 8 | % | 1/1/17 | Interest only, balance due at maturity | 0 | 4,593,803 | 2,809,838 | 0 | |||||||||||||||||
South Lake Tahoe, California | |||||||||||||||||||||||||
Apartment Building | 8 | % | 6/15/16 | Interest only, balance due at maturity | 0 | 2,300,000 | 2,135,821 | 0 | |||||||||||||||||
Berkeley, California | |||||||||||||||||||||||||
Apartment Building | 7.5 | % | 3/1/17 | Interest only, balance due at maturity | 0 | 2,986,625 | 2,064,760 | 0 | |||||||||||||||||
San Anselmo, California | |||||||||||||||||||||||||
TOTALS | $ | 0 | $ | 46,553,611 | $ | 41,124,257 | $ | 5,695,655 |
Note_1_Organization_Details
Note 1 - Organization (Details) (USD $) | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
20-May-13 | 20-May-13 | Feb. 12, 2013 | Aug. 09, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 09, 2013 | Jan. 23, 2013 | Dec. 31, 2011 | |
Note 1 - Organization (Details) [Line Items] | |||||||||
Common Stock, Shares Authorized | 1,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | |||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | ||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | 5,000,000 | ||||||
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) | $0.01 | $0.01 | $0.01 | ||||||
Number Of Partnership Units Converted Per Common Stock Share | 25 | ||||||||
Number Of Shares Of Common Stock Issued Per 25 Partnership Units | 1 | ||||||||
General Partner Units Cancelled | 1,496,000 | 1,496,000 | |||||||
General Partner Units Converted | 1,378,256 | 1,378,256 | |||||||
Common Stock, Shares, Issued | 11,198,119 | 11,198,119 | 11,198,119 | ||||||
Potential Percentage Penalty Tax | 100.00% | ||||||||
REIT Minimum Percent Distribution Of Taxable Income | 90.00% | ||||||||
William C Owens [Member] | |||||||||
Note 1 - Organization (Details) [Line Items] | |||||||||
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.01 | ||||||||
Stock Issued During Period, Shares, New Issues | 1,000 | ||||||||
Share Price (in Dollars per share) | $1 | ||||||||
Stock Issued During Period, Value, New Issues (in Dollars) | $1,000 | ||||||||
Stock Repurchased and Retired During Period, Shares | 1,000 | 1,000 | |||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | 1,000 | $1,000 | |||||||
Common Stock, Shares, Issued | 1,000 |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |
Number of Operating Segments | 1 |
Line of Credit, Number of Lines | 2 |
Loans Receivable, Nonaccrual Status, Number of Days, Minimum | 90 days |
Allowance for Loan Losses, Number of Components | 2 |
Qualify for Recognition as a Completed Sale, Expected Term | 1 year |
Real Estate Properties [Member] | Maximum [Member] | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |
Property, Plant and Equipment, Useful Life | 39 years |
Real Estate Properties [Member] | Minimum [Member] | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
1850 [Member] | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | |
Equity Method Investment, Ownership Percentage | 50.00% |
Note_3_Loans_and_Allowance_for2
Note 3 - Loans and Allowance for Loan Losses (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | $11,466,179 | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 31,738,105 | ||
Allowance for Loan and Lease Losses, Real Estate | 2,869,355 | 4,739,088 | 24,417,897 |
Financing Receivable, Modifications, Number of Contracts | 1 | 2 | |
Maturity Date Extension Period for Troubled Debt Restructurings | 15 years | ||
Commercial Real Estate Portfolio Segment [Member] | Non-accrual Status [Member] | |||
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | 2 | ||
Commercial Real Estate Portfolio Segment [Member] | Accrual Status [Member] | |||
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | 2 | ||
Commercial Real Estate Portfolio Segment [Member] | |||
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums | 537,000 | 659,000 | |
Modified Loan Terms [Member] | |||
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Allowance for Loan and Lease Losses, Real Estate | 2,389,000 | 3,625,000 | |
Financing Receivable, Modifications, Recorded Investment | 20,265,000 | 25,781,000 | |
Financing Receivable, Allowance for Credit Losses | 0 | 0 | |
Original Balance [Member] | |||
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 8,966,000 | ||
Additional Borrowing [Member] | |||
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Impaired Financing Receivable, Unpaid Principal Balance | 2,500,000 | ||
Combined First Deed of Trust [Member] | |||
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Loans and Leases Receivable, Gross, Other | 9,625,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||
Debt Instrument, Term | 5 years | ||
Past Due [Member] | |||
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Proceeds from Interest Received | 659,000 | ||
Impaired [Member] | |||
Note 3 - Loans and Allowance for Loan Losses (Details) [Line Items] | |||
Payments for Loans | $5,899,000 |
Note_3_Loans_and_Allowance_for3
Note 3 - Loans and Allowance for Loan Losses (Details) - Allocation of the Allowance for Loan Losses (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for loan losses: | ||||||||||
Allowance for loan losses, beginning balance | $4,739,088 | $24,417,897 | $4,739,088 | $24,417,897 | ||||||
Allowance for loan losses, ending balance | 2,869,355 | 4,739,088 | 2,869,355 | 4,739,088 | ||||||
Allowance for loan losses: individually evaluated for impairment | 2,389,355 | 3,625,088 | 2,389,355 | 3,625,088 | ||||||
Allowance for loan losses: collectively evaluated for impairment | 480,000 | 1,114,000 | 480,000 | 1,114,000 | ||||||
Allowance for loan losses | 2,869,355 | 4,739,088 | 2,869,355 | 4,739,088 | ||||||
Charge-offs | -11,856,697 | |||||||||
Provision (reversal) | -2,010,765 | 117,680 | -103,820 | 127,172 | -445,768 | -419,860 | -6,699,271 | -257,213 | -1,869,733 | -7,822,112 |
Loans: | ||||||||||
Loans | 68,033,511 | 58,796,293 | 68,033,511 | 58,796,293 | ||||||
Loans: individually evaluated for impairment | 22,315,750 | 31,738,105 | 22,315,750 | 31,738,105 | ||||||
Loans: collectively evaluated for impairment | 45,717,761 | 27,058,188 | 45,717,761 | 27,058,188 | ||||||
Commercial Real Estate Portfolio Segment [Member] | ||||||||||
Allowance for loan losses: | ||||||||||
Allowance for loan losses, beginning balance | 932,651 | 1,493,585 | 932,651 | 1,493,585 | ||||||
Allowance for loan losses, ending balance | 888,260 | 932,651 | 888,260 | 932,651 | ||||||
Allowance for loan losses: individually evaluated for impairment | 550,010 | 537,743 | 550,010 | 537,743 | ||||||
Allowance for loan losses: collectively evaluated for impairment | 338,250 | 394,908 | 338,250 | 394,908 | ||||||
Allowance for loan losses | 888,260 | 932,651 | 888,260 | 932,651 | ||||||
Provision (reversal) | -44,391 | -560,934 | ||||||||
Loans: | ||||||||||
Loans | 52,531,537 | 26,158,878 | 52,531,537 | 26,158,878 | ||||||
Loans: individually evaluated for impairment | 12,666,935 | 16,566,878 | 12,666,935 | 16,566,878 | ||||||
Loans: collectively evaluated for impairment | 39,864,602 | 9,592,000 | 39,864,602 | 9,592,000 | ||||||
Residential Portfolio Segment [Member] | ||||||||||
Allowance for loan losses: | ||||||||||
Allowance for loan losses, beginning balance | 3,798,203 | 4,401,448 | 3,798,203 | 4,401,448 | ||||||
Allowance for loan losses, ending balance | 1,975,112 | 3,798,203 | 1,975,112 | 3,798,203 | ||||||
Allowance for loan losses: individually evaluated for impairment | 1,839,345 | 3,087,345 | 1,839,345 | 3,087,345 | ||||||
Allowance for loan losses: collectively evaluated for impairment | 135,767 | 710,858 | 135,767 | 710,858 | ||||||
Allowance for loan losses | 1,975,112 | 3,798,203 | 1,975,112 | 3,798,203 | ||||||
Provision (reversal) | -1,823,091 | -603,245 | ||||||||
Loans: | ||||||||||
Loans | 13,491,906 | 27,461,913 | 13,491,906 | 27,461,913 | ||||||
Loans: individually evaluated for impairment | 7,788,747 | 10,195,725 | 7,788,747 | 10,195,725 | ||||||
Loans: collectively evaluated for impairment | 5,703,159 | 17,266,188 | 5,703,159 | 17,266,188 | ||||||
Land Loan [Member] | ||||||||||
Allowance for loan losses: | ||||||||||
Allowance for loan losses, beginning balance | 8,234 | 18,522,864 | 8,234 | 18,522,864 | ||||||
Allowance for loan losses, ending balance | 5,983 | 8,234 | 5,983 | 8,234 | ||||||
Allowance for loan losses: collectively evaluated for impairment | 5,983 | 8,234 | 5,983 | 8,234 | ||||||
Allowance for loan losses | 5,983 | 8,234 | 5,983 | 8,234 | ||||||
Charge-offs | -11,856,697 | |||||||||
Provision (reversal) | -2,251 | -6,657,933 | ||||||||
Loans: | ||||||||||
Loans | 2,010,068 | 5,175,502 | 2,010,068 | 5,175,502 | ||||||
Loans: individually evaluated for impairment | 1,860,068 | 4,975,502 | 1,860,068 | 4,975,502 | ||||||
Loans: collectively evaluated for impairment | $150,000 | $200,000 | $150,000 | $200,000 |
Note_3_Loans_and_Allowance_for4
Note 3 - Loans and Allowance for Loan Losses (Details) - Aging Analysis of the Loan Portfolio by the Time Past Due (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, 90 days or more | $10,727,567 | $20,271,926 |
Loans, past due | 10,727,567 | 20,961,926 |
Loans, current | 57,305,944 | 37,834,367 |
Loans | 68,033,511 | 58,796,293 |
Loans, 60 - 89 days past due | 690,000 | |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, 90 days or more | 1,078,752 | 5,100,699 |
Loans, past due | 1,078,752 | 5,790,699 |
Loans, current | 51,452,785 | 20,368,179 |
Loans | 52,531,537 | 26,158,878 |
Loans, 60 - 89 days past due | 690,000 | |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, 90 days or more | 7,788,747 | 10,195,725 |
Loans, past due | 7,788,747 | 10,195,725 |
Loans, current | 5,703,159 | 17,266,188 |
Loans | 13,491,906 | 27,461,913 |
Land Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, 90 days or more | 1,860,068 | 4,975,502 |
Loans, past due | 1,860,068 | 4,975,502 |
Loans, current | 150,000 | 200,000 |
Loans | $2,010,068 | $5,175,502 |
Note_3_Loans_and_Allowance_for5
Note 3 - Loans and Allowance for Loan Losses (Details) - Impaired Loans (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
With an allowance recorded: | ||
Unpaid principal balance | $11,466,179 | |
Commercial Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
Recorded investment, with no related allowance recorded | 11,588,183 | 16,212,899 |
Unpaid principal balance, with no related allowance recorded | 11,588,183 | 15,488,126 |
Average recorded investment, with no related allowance recorded | 16,686,997 | 10,880,512 |
Interest income recognized, with no related allowance recorded | 1,714,230 | 704,623 |
With an allowance recorded: | ||
Recorded investment, with an allowance recorded | 1,079,699 | 1,079,699 |
Unpaid principal balance, with an allowance recorded | 1,078,752 | 1,078,752 |
Related allowance | 550,010 | 537,743 |
Average recorded investment, with an allowance recorded | 1,079,681 | 1,079,699 |
Interest income recognized, with an allowance recorded | 47,958 | 21,000 |
Recorded investment | 12,667,882 | 17,292,598 |
Unpaid principal balance | 12,666,935 | 16,566,878 |
Related allowance | 550,010 | 537,743 |
Average recorded investment | 17,766,678 | 11,960,212 |
Interest income recognized | 1,762,188 | 725,623 |
Residential Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
Recorded investment, with no related allowance recorded | 253,747 | 2,734,228 |
Unpaid principal balance, with no related allowance recorded | 253,747 | 2,660,725 |
Average recorded investment, with no related allowance recorded | 1,986,693 | 2,841,401 |
Interest income recognized, with no related allowance recorded | 688,196 | 134,702 |
With an allowance recorded: | ||
Recorded investment, with an allowance recorded | 7,983,345 | 7,983,345 |
Unpaid principal balance, with an allowance recorded | 7,535,000 | 7,535,000 |
Related allowance | 1,839,345 | 3,087,345 |
Average recorded investment, with an allowance recorded | 7,983,366 | 7,983,342 |
Interest income recognized, with an allowance recorded | 150,000 | 198,100 |
Recorded investment | 8,267,092 | 10,717,573 |
Unpaid principal balance | 7,788,747 | 10,195,725 |
Related allowance | 1,839,345 | 3,087,345 |
Average recorded investment | 9,970,059 | 10,824,743 |
Interest income recognized | 838,196 | 332,802 |
Land Loan [Member] | ||
With no related allowance recorded: | ||
Recorded investment, with no related allowance recorded | 1,860,068 | 5,017,839 |
Unpaid principal balance, with no related allowance recorded | 1,860,068 | 4,975,502 |
Average recorded investment, with no related allowance recorded | 2,440,015 | 4,984,885 |
Interest income recognized, with no related allowance recorded | 173,484 | 259,281 |
With an allowance recorded: | ||
Average recorded investment, with an allowance recorded | 8,761,503 | |
Recorded investment | 1,860,068 | 5,017,839 |
Unpaid principal balance | 1,860,068 | 4,975,502 |
Average recorded investment | 2,440,015 | 13,746,388 |
Interest income recognized | $173,484 | $259,281 |
Note_3_Loans_and_Allowance_for6
Note 3 - Loans and Allowance for Loan Losses (Details) - Troubled Debt Restructurings (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Troubled Debt RestructuringsThat Occurred During the Year | ||
Number of contracts | 1 | 2 |
Land Loan [Member] | ||
Troubled Debt RestructuringsThat Occurred During the Year | ||
Number of contracts | 1 | |
Pre-modification outstanding recorded investment | 1,860,068 | |
Post-modification outstanding recorded investment | 1,860,068 | |
Commercial [Member] | ||
Troubled Debt RestructuringsThat Occurred During the Year | ||
Number of contracts | 1 | |
Pre-modification outstanding recorded investment | 2,638,530 | |
Post-modification outstanding recorded investment | 8,966,179 | |
Residential [Member] | ||
Troubled Debt RestructuringsThat Occurred During the Year | ||
Number of contracts | 1 | |
Pre-modification outstanding recorded investment | 272,028 | |
Post-modification outstanding recorded investment | 272,028 |
Note_3_Loans_and_Allowance_for7
Note 3 - Loans and Allowance for Loan Losses (Details) - Troubled Debt Restructurings that Subsequently Defaulted (Residential [Member], USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Residential [Member] | |
Financing Receivable, Modifications [Line Items] | |
Residential | 1 |
Residential | $272,028 |
Note_4_Investment_in_Limited_L1
Note 4 - Investment in Limited Liability Company (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 31, 2008 | |
Note 4 - Investment in Limited Liability Company (Details) [Line Items] | |||
Number of Real Estate Properties | 6 | ||
Proceeds from Equity Method Investment, Dividends or Distributions | $170,000 | $160,000 | |
Income (Loss) from Equity Method Investments | 169,999 | 160,805 | |
1850 [Member] | |||
Note 4 - Investment in Limited Liability Company (Details) [Line Items] | |||
Number of Real Estate Properties | 2 | ||
Number of Companies | 2 | ||
Proceeds from Equity Method Investment, Dividends or Distributions | 170,000 | 160,000 | |
Income (Loss) from Equity Method Investments | $170,000 | $161,000 |
Note_5_Real_Estate_Held_for_Sa2
Note 5 - Real Estate Held for Sale (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Gain (Loss) on Transfers Between Held for Sale and Held for Investment (in Dollars) | $0 | $0 | ||||||||
Impairment of Real Estate (in Dollars) | -123,500 | -48,000 | -7,540 | -666,240 | 179,040 | 666,240 | ||||
Number of Real Estate Properties | 6 | 6 | ||||||||
Gain (Loss) on Sale of Properties (in Dollars) | 503,254 | 113,113 | 2,349,808 | 277,184 | 230,765 | 251,887 | 2,429,872 | 30,337 | 3,243,359 | 2,942,861 |
Gain on Foreclosure of Loan (in Dollars) | 464,754 | 952,357 | ||||||||
Transferred from Held for Sale to Held for Investment [Member] | Land Property [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 1 | 1 | 1 | 1 | ||||||
Transferred from Held for Sale to Held for Investment [Member] | Marina Property [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 1 | 1 | ||||||||
Transferred from Held for Sale to Held for Investment [Member] | Residential [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 1 | 1 | 1 | 1 | ||||||
Transferred from Held for Sale to Held for Investment [Member] | Retail Property [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 1 | 1 | ||||||||
Transferred from Held for Sale to Held for Investment [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 3 | 3 | 3 | 3 | ||||||
Transferred from Held for Investment to Held for Sale [Member] | Land Property [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 2 | 2 | 2 | 2 | ||||||
Transferred from Held for Investment to Held for Sale [Member] | Retail Property [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 2 | 2 | ||||||||
Transferred from Held for Investment to Held for Sale [Member] | Office Building [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 1 | 1 | ||||||||
Transferred from Held for Investment to Held for Sale [Member] | Golf Course [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 1 | 1 | ||||||||
Transferred from Held for Investment to Held for Sale [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Parcels | 5 | 3 | 5 | 3 | ||||||
Foreclosed On [Member] | Retail Property, San Jose, California [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Mortgage Loans on Real Estate, Number of Loans | 1 | |||||||||
Residential [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Real Estate Properties | 1 | 1 | ||||||||
Retail Property [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Real Estate Properties | 1 | 1 | ||||||||
Office Building [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Real Estate Properties | 1 | 1 | ||||||||
Marina Property in Oakley, California [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Impairment of Real Estate (in Dollars) | 179,000 | |||||||||
Land Property 1 [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Real Estate Properties | 2 | 2 | ||||||||
Land and Easement [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Proceeds from Sale of Other Real Estate (in Dollars) | 1,821,000 | |||||||||
Gain (Loss) on Sale of Properties (in Dollars) | 292,000 | |||||||||
Deferred Gain on Property [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Gain (Loss) on Sale of Properties (in Dollars) | 2,951,000 | 358,000 | ||||||||
Land Property 2 [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Number of Real Estate Properties | 3 | 3 | ||||||||
Real Estate [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Proceeds from Sale of Other Real Estate (in Dollars) | 11,052,000 | |||||||||
Gain (Loss) on Sale of Properties (in Dollars) | 2,585,000 | |||||||||
Mortgage Loan Related to Property Sales (in Dollars) | 11,900,000 | |||||||||
Retail Property, San Jose, California [Member] | ||||||||||
Note 5 - Real Estate Held for Sale (Details) [Line Items] | ||||||||||
Mortgage Loans on Real Estate, Foreclosures (in Dollars) | 690,000 | |||||||||
Gain on Foreclosure of Loan (in Dollars) | $208,000 |
Note_5_Real_Estate_Held_for_Sa3
Note 5 - Real Estate Held for Sale (Details) - Properties Acquired Through Foreclosure (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 5 - Real Estate Held for Sale (Details) - Properties Acquired Through Foreclosure [Line Items] | ||
Real estate held for sale | $59,494,339 | $5,890,131 |
Residential [Member] | ||
Note 5 - Real Estate Held for Sale (Details) - Properties Acquired Through Foreclosure [Line Items] | ||
Real estate held for sale | 93,647 | |
Improved and Unimproved Land [Member] | ||
Note 5 - Real Estate Held for Sale (Details) - Properties Acquired Through Foreclosure [Line Items] | ||
Real estate held for sale | 36,263,330 | 3,427,200 |
Retail Site [Member] | ||
Note 5 - Real Estate Held for Sale (Details) - Properties Acquired Through Foreclosure [Line Items] | ||
Real estate held for sale | 16,494,440 | |
Golf Course [Member] | ||
Note 5 - Real Estate Held for Sale (Details) - Properties Acquired Through Foreclosure [Line Items] | ||
Real estate held for sale | 2,020,410 | 1,961,284 |
Office Building [Member] | ||
Note 5 - Real Estate Held for Sale (Details) - Properties Acquired Through Foreclosure [Line Items] | ||
Real estate held for sale | 4,716,159 | |
Marinas [Member] | ||
Note 5 - Real Estate Held for Sale (Details) - Properties Acquired Through Foreclosure [Line Items] | ||
Real estate held for sale | $408,000 |
Note_6_Real_Estate_Held_for_In2
Note 6 - Real Estate Held for Investment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Note 6 - Real Estate Held for Investment (Details) [Line Items] | ||
Depreciation | $2,151,000 | $2,387,000 |
Gain on Foreclosure of Loan | 464,754 | 952,357 |
Assisted Care Facility Bensalem Pennsylvania and Unimproved Land, Marina, and Campground in Bethel Island California [Member] | ||
Note 6 - Real Estate Held for Investment (Details) [Line Items] | ||
Mortgage Loans on Real Estate, Number of Loans | 2 | |
Mortgage Loans on Real Estate, Foreclosures | 6,981,000 | |
Gain on Foreclosure of Loan | 257,000 | |
Marina Iselton California Undeveloped Parcel South Lake Tahoe California [Member] | ||
Note 6 - Real Estate Held for Investment (Details) [Line Items] | ||
Mortgage Loans on Real Estate, Number of Loans | 6 | |
Mortgage Loans on Real Estate, Foreclosures | 27,467,000 | |
Gain on Foreclosure of Loan | $952,000 |
Note_6_Real_Estate_Held_for_In3
Note 6 - Real Estate Held for Investment (Details) - Real Estate Held for Investment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Real Estate Properties [Line Items] | ||
Real estate held for investment | $103,522,466 | $129,425,833 |
Land and land improvements | 39,003,422 | 73,591,953 |
Buildings and improvements | 70,594,331 | 65,433,599 |
109,597,753 | 139,025,552 | |
Less: Accumulated depreciation and amortization | -6,075,287 | -9,599,719 |
Improved and Unimproved Land [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate held for investment | 10,797,656 | 46,873,135 |
Residential [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate held for investment | 48,154,258 | 47,037,370 |
Retail Site [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate held for investment | 23,211,896 | 15,588,452 |
Office Building [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate held for investment | 4,416,108 | 9,348,331 |
Industrial Property [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate held for investment | 4,486,797 | 4,605,910 |
Other Property [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate held for investment | 3,847,884 | 3,943,780 |
Marinas [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate held for investment | 3,602,867 | 2,028,855 |
Assisted Care Facility [Member] | ||
Real Estate Properties [Line Items] | ||
Real estate held for investment | $5,005,000 |
Note_6_Real_Estate_Held_for_In4
Note 6 - Real Estate Held for Investment (Details) - Impairment Losses on Real Estate Held for Investment (USD $) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 6 - Real Estate Held for Investment (Details) - Impairment Losses on Real Estate Held for Investment [Line Items] | ||||||
Impairment of real estate held for investment | ($123,500) | ($48,000) | ($7,540) | ($666,240) | $179,040 | $666,240 |
Two Improved Residential Lots, West Sacramento, California [Member] | ||||||
Note 6 - Real Estate Held for Investment (Details) - Impairment Losses on Real Estate Held for Investment [Line Items] | ||||||
Impairment of real estate held for investment | 13,440 | |||||
The 6 Improved Residential Lots Coeur D'Alene, Idaho [Member] | ||||||
Note 6 - Real Estate Held for Investment (Details) - Impairment Losses on Real Estate Held for Investment [Line Items] | ||||||
Impairment of real estate held for investment | $652,800 |
Note_7_Lines_of_Credit_Payable2
Note 7 - Lines of Credit Payable (Details) (USD $) | 12 Months Ended | 11 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | |
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Deferred Finance Costs, Net (in Dollars) | $1,317,585 | $95,000 | 1,317,585 | ||
Interest Expense (in Dollars) | 1,161,822 | 513,750 | |||
Contingency Reserves [Member] | Revolving Credit Facility [Member] | Minimum [Member] | Opus Credit Facility [Member] | |||||
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Loan Processing Fee (in Dollars) | 100,000 | ||||
Default [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Opus Credit Facility [Member] | |||||
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 5.00% | ||||
Default [Member] | Revolving Credit Facility [Member] | CB&T [Member] | |||||
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.00% | ||||
Revolving Credit Facility [Member] | Prime Rate [Member] | CB&T [Member] | |||||
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | |||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Opus Credit Facility [Member] | |||||
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||||
Debt Instrument, Interest Rate, Stated Percentage | 0.36% | 0.36% | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.50% | ||||
Revolving Credit Facility [Member] | Restricted Cash and Cash Equivalents [Member] | Opus Credit Facility [Member] | |||||
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Credit Agreement, Covenants, Minimum Account Balance (in Dollars) | 4,000,000 | ||||
Revolving Credit Facility [Member] | Affiliates [Member] | Opus Credit Facility [Member] | |||||
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Credit Agreement, Covenants, Minimum Account Balance (in Dollars) | 1,000,000 | ||||
Revolving Credit Facility [Member] | CB&T [Member] | |||||
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 20,000,000 | ||||
Loan Processing Fee (in Dollars) | 100,000 | ||||
Deferred Finance Costs, Net (in Dollars) | 177,000 | 177,000 | |||
Interest Expense (in Dollars) | 458,000 | ||||
Amortization of Financing Costs (in Dollars) | 69,000 | ||||
Percent Of Note Collateral | 75.00% | 75.00% | |||
Percent of Appraised Value, Property Securing Note Collateral | 50.00% | 50.00% | |||
Percent Of Appraised Value, Property Owned Qualifying As REO Collateral | 50.00% | 50.00% | |||
Line of Credit Facility, Covenant, Unencumbered Liquid Assets (in Dollars) | 2,000,000 | 2,000,000 | |||
Revolving Credit Facility [Member] | Opus Credit Facility [Member] | |||||
Note 7 - Lines of Credit Payable (Details) [Line Items] | |||||
Line of Credit Facility, Maximum Borrowing Capacity (in Dollars) | 20,000,000 | 20,000,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||||
Deferred Finance Costs, Net (in Dollars) | 231,000 | 231,000 | |||
Interest Expense (in Dollars) | 112,000 | ||||
Amortization of Financing Costs (in Dollars) | 51,000 | ||||
Percent Of Note Collateral | 70.00% | 70.00% | |||
Percent of Appraised Value, Property Securing Note Collateral | 50.00% | 50.00% | |||
Percent Of Appraised Value, Property Owned Qualifying As REO Collateral | 60.00% | 60.00% | |||
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | 4.50% | |||
Credit Agreement, Covenants, Minimum Account Balance (in Dollars) | $5,000,000 |
Note_7_Lines_of_Credit_Payable3
Note 7 - Lines of Credit Payable (Details) - Credit Facilities (USD $) | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | |
Line of Credit, Outstanding | $11,450,000 |
Line of Credit, Commitment | 34,076,000 |
CB&T [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit, Outstanding | 11,450,000 |
Line of Credit, Commitment | 17,355,000 |
Opus Credit Facility [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit, Commitment | $16,721,000 |
Note_7_Lines_of_Credit_Payable4
Note 7 - Lines of Credit Payable (Details) - Loans Securing Credit Facility (USD $) | Dec. 31, 2014 |
Commercial Loan [Member] | CB&T [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Loans securing the credit facility | $11,505,000 |
Commercial Loan [Member] | Opus Credit Facility [Member] | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |
Loans securing the credit facility | 13,630,000 |
Residential Real Estate [Member] | CB&T [Member] | |
Real Estate: | |
Real estate securing the credit facility | 6,933,229 |
Commercial Real Estate [Member] | Warehouse [Member] | CB&T [Member] | |
Real Estate: | |
Real estate securing the credit facility | 3,847,884 |
Commercial Real Estate [Member] | Industrial Property [Member] | CB&T [Member] | |
Real Estate: | |
Real estate securing the credit facility | 3,027,735 |
Commercial Real Estate [Member] | Industrial Property [Member] | Opus Credit Facility [Member] | |
Real Estate: | |
Real estate securing the credit facility | 1,459,063 |
Commercial Real Estate [Member] | Office Building [Member] | Opus Credit Facility [Member] | |
Real Estate: | |
Real estate securing the credit facility | 9,132,267 |
CB&T [Member] | |
Real Estate: | |
Real estate securing the credit facility | 13,808,848 |
Opus Credit Facility [Member] | |
Real Estate: | |
Real estate securing the credit facility | $10,591,330 |
Note_8_Notes_and_Loans_Payable2
Note 8 - Notes and Loans Payable on Real Estate (Details) (USD $) | 12 Months Ended | 48 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Jan. 04, 2021 | Jan. 31, 2015 | Nov. 30, 2014 | |
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Interest Expense | $1,161,822 | $513,750 | |||
Notes Payable | 37,569,549 | 13,917,585 | |||
Repayments of Notes Payable | 800,954 | 467,317 | |||
Deferred Finance Costs, Net | 1,317,585 | 95,000 | |||
Escrow Deposit | 249,000 | 200,000 | |||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 112,533 | 362,593 | |||
Subsequent Event [Member] | 720 LLC[Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||
Notes Payable | 9,771,263 | ||||
Escrow Deposit | 500,000 | ||||
Outstanding Principal Balance [Member] | TSV Credit Agreement [Member] | Tahoe Stateline Venture, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Instrument, Default Rate Increase | 5.00% | ||||
Other Outstanding Obligations [Member] | TSV Credit Agreement [Member] | Tahoe Stateline Venture, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Instrument, Default Rate Increase | 10.00% | ||||
Prepayment Fee 12/31/14 - 01/04/16 [Member] | TSV Credit Agreement [Member] | Tahoe Stateline Venture, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Prepayment Fee, Percentage of Prepayment Amount | 3.00% | ||||
Prepayment Fee 01/05/2016 - 01/04/2017 [Member] | TSV Credit Agreement [Member] | Tahoe Stateline Venture, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Prepayment Fee, Percentage of Prepayment Amount | 2.00% | ||||
Prepayment Fee 01/05/2017 - 01/04/2021 [Member] | TSV Credit Agreement [Member] | Tahoe Stateline Venture, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Prepayment Fee, Percentage of Prepayment Amount | 1.00% | ||||
Quarterly Interest Only Payments Due August 2017 [Member] | Tahoe Stateline Venture, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Repayments of Notes Payable | 200,000 | ||||
TOTB North Loan Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | TOTB North, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||||
TOTB North Loan Agreement [Member] | Maximum [Member] | TOTB North, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Instrument, Face Amount | 21,304,000 | ||||
Loan to Value Ratio | 60.00% | ||||
TOTB North Loan Agreement [Member] | Minimum [Member] | TOTB North, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Service Coverage Ratio | 1.25 | ||||
TOTB North Loan Agreement [Member] | TOTB North, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Notes Payable | 1,008,000 | ||||
Debt Instrument, Additional Terms | 2 years | ||||
Debt Instrument, Extended Term | 1 year | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.50% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 4.50% | ||||
Debt Instrument, Default Rate Increase | 8.00% | ||||
Deferred Finance Costs, Net | 622,000 | ||||
Amortization of Financing Costs | 121,000 | ||||
Interest Costs Capitalized | 22,000 | ||||
Construction Loan, Available Borrowing Capacity | 1,000,000 | ||||
Escrow Deposit | 1,000,000 | ||||
TOTB North Loan Agreement [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Guarantor Obligations, Minimum Unencumbered Cash | 5,000,000 | ||||
Guarantor Obligations, Minimum Net Worth | 35,000,000 | ||||
TOTB Miami Loan Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | TOTB Miami, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.00% | ||||
TOTB Miami Loan Agreement [Member] | Maximum [Member] | TOTB Miami, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Loan to Value Ratio | 65.00% | ||||
TOTB Miami Loan Agreement [Member] | Minimum [Member] | TOTB Miami, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Service Coverage Ratio | 1.35 | ||||
TOTB Miami Loan Agreement [Member] | TOTB Miami, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Interest Expense | 81,000 | ||||
Debt Instrument, Face Amount | 13,000,000 | ||||
Debt Instrument, Additional Terms | 2 years | ||||
Debt Instrument, Extended Term | 1 year | ||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.25% | ||||
Debt Instrument, Interest Rate, Effective Percentage | 4.26% | ||||
Debt Instrument, Default Rate Increase | 8.00% | ||||
Deferred Finance Costs, Net | 323,000 | ||||
Amortization of Financing Costs | 12,000 | ||||
Number of Units in Real Estate Property | 154 | ||||
TOTB Miami Loan Agreement [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Guarantor Obligations, Minimum Unencumbered Cash | 5,000,000 | ||||
Guarantor Obligations, Minimum Net Worth | 35,000,000 | ||||
TSV Credit Agreement [Member] | Minimum [Member] | TSV Credit Agreement [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Service Coverage Ratio | 1.25 | ||||
TSV Credit Agreement [Member] | Closing Fee [Member] | Tahoe Stateline Venture, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Deferred Finance Costs, Net | 108,750 | ||||
TSV Credit Agreement [Member] | Tahoe Stateline Venture, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.47% | ||||
Interest Expense | 1,000 | ||||
Debt Instrument, Face Amount | 14,500,000 | ||||
Deferred Finance Costs, Net | 218,000 | ||||
Proceeds from Issuance of Debt | 10,445,000 | ||||
Debt Instrument, Unused Borrowing Capacity, Amount | 4,055,000 | ||||
TOTB North, LLC [Member] | OFG [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Noncontrolling Interest, Increase from Subsidiary Equity Issuance | 108,000 | ||||
TOTB North, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Payments to Acquire Interest in Subsidiaries and Affiliates | 453,000 | ||||
720 LLC[Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Debt Instrument, Periodic Payment | 56,816 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.07% | ||||
Interest Expense | 505,000 | 514,000 | |||
Escrow Deposit | 500,000 | ||||
Tahoe Stateline Venture, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Number of Parcels | 9 | ||||
Number of Notes Payable | 1 | ||||
Repayments of Notes Payable | 400,000 | ||||
Interest Paid | 195,000 | 164,000 | |||
Interest Payable | $19,000 | $21,000 | |||
TOTB North, LLC [Member] | |||||
Note 8 - Notes and Loans Payable on Real Estate (Details) [Line Items] | |||||
Area of Land (in Acres) | 2.37 |
Note_8_Notes_and_Loans_Payable3
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Outstanding (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Outstanding [Line Items] | ||
Debt instrument, outstanding | $37,569,549 | $13,917,585 |
37,569,549 | 13,917,585 | |
Tahoe Stateline Venture, LLC Note 1 [Member] | Tahoe Stateline Venture, LLC [Member] | ||
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Outstanding [Line Items] | ||
Debt instrument, outstanding | 2,900,000 | 2,900,000 |
Debt instrument, fixed interest rate | 5.00% | |
2,900,000 | 2,900,000 | |
Tahoe Stateline Venture, LLC Note 2 [Member] | Tahoe Stateline Venture, LLC [Member] | ||
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Outstanding [Line Items] | ||
Debt instrument, outstanding | 400,000 | |
Debt instrument, fixed interest rate | 5.00% | |
400,000 | ||
Tahoe Stateline Venture, LLC Note 3 [Member] | Tahoe Stateline Venture, LLC [Member] | ||
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Outstanding [Line Items] | ||
Debt instrument, outstanding | 500,000 | 700,000 |
Debt instrument, fixed interest rate | 5.00% | |
500,000 | 700,000 | |
TSV Credit Agreement [Member] | Tahoe Stateline Venture, LLC [Member] | ||
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Outstanding [Line Items] | ||
Debt instrument, outstanding | 10,445,000 | |
Debt instrument, fixed interest rate | 3.47% | |
10,445,000 | ||
720 LLC[Member] | ||
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Outstanding [Line Items] | ||
Debt instrument, outstanding | 9,741,463 | 9,917,585 |
Debt instrument, fixed interest rate | 5.07% | |
9,741,463 | 9,917,585 | |
TOTB North, LLC [Member] | ||
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Outstanding [Line Items] | ||
Debt instrument, outstanding | 1,007,919 | |
1,007,919 | ||
Debt instrument, effective interest rate | 4.50% | |
TOTB Miami, LLC [Member] | ||
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Outstanding [Line Items] | ||
Debt instrument, outstanding | 12,975,167 | |
$12,975,167 | ||
Debt instrument, effective interest rate | 4.26% |
Note_8_Notes_and_Loans_Payable4
Note 8 - Notes and Loans Payable on Real Estate (Details) - Notes and Loans Payable Maturities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Notes and Loans Payable Maturities [Abstract] | ||
2015 | $9,741,463 | |
2016 | 2,900,000 | |
2017 | 14,483,086 | |
2021 | 10,445,000 | |
$37,569,549 | $13,917,585 |
Note_9_Stockholders_Equity_Det
Note 9 - Stockholders' Equity (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 5 Months Ended | 12 Months Ended | 17 Months Ended | 0 Months Ended | ||||||||||||
Aug. 09, 2013 | 20-May-13 | 20-May-13 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Feb. 12, 2013 | Jan. 23, 2013 | Aug. 09, 2012 | Dec. 31, 2011 | |
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||||||||||||||||
Common Stock, Shares Authorized (in Shares) | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 50,000,000 | 1,000,000 | |||||||||||
Common Stock, Par or Stated Value Per Share | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||||
Preferred Stock, Shares Authorized (in Shares) | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | ||||||||||||
Preferred Stock, Par or Stated Value Per Share | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||||||
Common Stock, Shares, Issued (in Shares) | 11,198,119 | 11,198,119 | 11,198,119 | 11,198,119 | 11,198,119 | 11,198,119 | 11,198,119 | ||||||||||||
Common Stock, Value, Issued (in Dollars) | $111,981 | $111,981 | $111,981 | $111,981 | $111,981 | $111,981 | |||||||||||||
Partnership Units Converted Into Common Stock (in Shares) | 25 | 25 | |||||||||||||||||
General Partner Units Cancelled (in Shares) | 1,496,000 | 1,496,000 | |||||||||||||||||
General Partner Units Converted (in Shares) | 1,378,256 | 1,378,256 | |||||||||||||||||
Stock Repurchase Program, Authorized Amount (in Dollars) | 7,000,000 | ||||||||||||||||||
Stock Repurchase Program Authorized Amount Percentage of Outstanding Shares | 5.00% | ||||||||||||||||||
Treasury Stock, Shares, Acquired (in Shares) | 403,910 | 430,118 | |||||||||||||||||
Treasury Stock, Value, Acquired, Cost Method (in Dollars) | 5,024,000 | 325,488 | 5,023,668 | 5,349,000 | |||||||||||||||
Treasury Stock Acquired, Average Cost Per Share | $12.44 | $12.44 | |||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $0.12 | $0.05 | $0.05 | $0.05 | $0.05 | $0.05 | $0.15 | $0 | $0.27 | $0.25 | |||||||||
Tax Year 2014 [Member] | |||||||||||||||||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $0.09 | ||||||||||||||||||
Tax Year 2015 [Member] | |||||||||||||||||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $0.03 | ||||||||||||||||||
Special Dividend [Member] | |||||||||||||||||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $0.07 | ||||||||||||||||||
Regular Dividend [Member] | |||||||||||||||||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||||||||||||||||
Common Stock, Dividends, Per Share, Declared | $0.05 | ||||||||||||||||||
William C Owens [Member] | |||||||||||||||||||
Note 9 - Stockholders' Equity (Details) [Line Items] | |||||||||||||||||||
Common Stock, Par or Stated Value Per Share | $0.01 | ||||||||||||||||||
Common Stock, Shares, Issued (in Shares) | 1,000 | ||||||||||||||||||
Share Price | $1 | ||||||||||||||||||
Common Stock, Value, Issued (in Dollars) | 1,000 | ||||||||||||||||||
Stock Repurchased and Retired During Period, Shares (in Shares) | 1,000 | 1,000 | |||||||||||||||||
Stock Repurchased and Retired During Period, Value (in Dollars) | 1,000 | $1,000 |
Note_9_Stockholders_Equity_Det1
Note 9 - Stockholders' Equity (Details) - Tax Treatment for Dividends Paid by the Company (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | |||
Note 9 - Stockholders' Equity (Details) - Tax Treatment for Dividends Paid by the Company [Line Items] | ||||
Dividends paid (in Dollars) | $2,906,693 | $2,746,991 | ||
Dividends paid per share | $0.29 | $0.23 | [1] | |
Dividend Paid [Member] | ||||
Note 9 - Stockholders' Equity (Details) - Tax Treatment for Dividends Paid by the Company [Line Items] | ||||
Dividends paid (in Dollars) | 3,087,360 | [2] | 2,530,290 | [1],[2] |
Classified as Ordinary Income [Member] | ||||
Note 9 - Stockholders' Equity (Details) - Tax Treatment for Dividends Paid by the Company [Line Items] | ||||
Dividends paid per share | $0.26 | $0.02 | [1] | |
Dividends, percent | 100.00% | 28.45% | [1] | |
Qualified dividend income (in Dollars) | [3] | [1],[3] | ||
Capital Gain Distribution on Dividends [Member] | ||||
Note 9 - Stockholders' Equity (Details) - Tax Treatment for Dividends Paid by the Company [Line Items] | ||||
Dividends paid per share | [1] | |||
Dividends, percent | [1] | |||
Dividends Classified as Return of Capital [Member] | ||||
Note 9 - Stockholders' Equity (Details) - Tax Treatment for Dividends Paid by the Company [Line Items] | ||||
Dividends paid per share | $0 | $0.20 | [1] | |
Dividends, percent | 0.00% | 71.55% | [1] | |
[1] | Dividends for 2013 do not include dividends paid prior to the conversion from OMIF to ORM on May 20, 2013. | |||
[2] | Dividends for 2014 include dividend declared for shareholders of record as of December 31, 2014 and paid in January 2015. This amount consisted of a $0.07 per share special dividend and a $0.05 per share regular quarterly dividend. This dividend was a split-year dividend with $0.088 allocable to 2014 for federal income tax purposes and $0.032 allocable to 2015 for federal income tax purposes. | |||
[3] | Qualified dividend income is eligible for reduced dividend rates. |
Note_10_Restricted_Cash_Detail
Note 10 - Restricted Cash (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Note 10 - Restricted Cash (Details) [Line Items] | ||
Contingency Reserves as a Percent of Capital | 1.50% | |
Restricted Cash and Cash Equivalents | $6,248,746 | $4,095,435 |
Escrow Deposit | 249,000 | 200,000 |
Contingency Reserves [Member] | Minimum [Member] | ||
Note 10 - Restricted Cash (Details) [Line Items] | ||
Restricted Cash and Cash Equivalents | 6,000,000 | |
Contingency Reserves [Member] | ||
Note 10 - Restricted Cash (Details) [Line Items] | ||
Restricted Cash and Cash Equivalents | $3,876,000 | $3,895,000 |
Note_11_Income_Taxes_Details
Note 11 - Income Taxes (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Note 11 - Income Taxes (Details) [Line Items] | |
Percentage of Taxable Income Distributed to Stockholders | 100.00% |
Deferred Tax Assets, Capital Loss Carryforwards (in Dollars) | $822,000 |
To Maintain REIT Status for Federal Income Tax Purposes [Member] | |
Note 11 - Income Taxes (Details) [Line Items] | |
Minimum Percentage of Taxable Income to Be Distributed to Stockholders | 90.00% |
Threshold to Not Be Subject to Federal Corporate Income Tax [Member] | |
Note 11 - Income Taxes (Details) [Line Items] | |
Minimum Percentage of Taxable Income to Be Distributed to Stockholders | 100.00% |
Note_12_Transactions_with_Affi1
Note 12 - Transactions with Affiliates (Details) (USD $) | 12 Months Ended | 1 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2015 | |
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Management Fee Expense | $1,726,945 | $1,664,076 | |
Professional and Contract Services Expense | 156,995 | 151,643 | |
Due to Related Parties | 283,644 | 293,776 | |
Potential Decrease in Net Income, Percentage | 0.05% | ||
Late Fee Income Generated by Servicing Financial Assets, Amount | 14,000 | 5,000 | |
Ancillary Fee Income Generated by Servicing Financial Assets, Amount | 4,000 | 1,000 | |
Loan Fees Earned by OFG | 1,228,000 | 658,000 | |
Loans and Leases Receivable, Gross | 68,033,511 | 58,796,293 | |
Loan Fees as Percentage of Loans Originated, Rewritten, or Extended | 2.40% | 3.50% | |
Owens Financial Group, Inc. [Member] | Management and Service Fees [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Due to Related Parties | 171,000 | 294,000 | |
Owens Financial Group, Inc. [Member] | Reimbursable Goods and Services [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Due to Related Parties | 0 | 113,000 | |
Owens Financial Group, Inc. [Member] | Loan Purchase [Member] | Subsequent Event [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 1,499,000 | ||
Owens Financial Group, Inc. [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Loans and Leases Receivable, Gross | 50,440,000 | 18,977,000 | |
Related Party Transaction, Amounts of Transaction | 704,000 | 742,000 | |
OFG Officers [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 1,000 | 19,000 | |
Investor's Yield, Inc. [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Related Party Transaction, Amounts of Transaction | 30,000 | 34,000 | |
Management Fee [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Related Party Transaction, Rate | 2.75% | ||
Servicing Fee [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Related Party Transaction, Rate | 0.25% | ||
Difference [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Management Fee Expense | 4,000 | ||
Maximum [Member] | |||
Note 12 - Transactions with Affiliates (Details) [Line Items] | |||
Management Fee Expense | $1,668,000 |
Note_13_Rental_Income_Details
Note 13 - Rental Income (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
Note 13 - Rental Income (Details) [Line Items] | |
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 1 year |
Maximum [Member] | |
Note 13 - Rental Income (Details) [Line Items] | |
Lessor Leasing Arrangements, Operating Leases, Term of Contract | 12 years |
Note_13_Rental_Income_Details_
Note 13 - Rental Income (Details) - Future Minimum Rental Income (USD $) | Dec. 31, 2014 |
Future Minimum Rental Income [Abstract] | |
2015 | $7,148,109 |
2016 | 3,784,137 |
2017 | 3,129,076 |
2018 | 2,652,363 |
2019 | 2,007,112 |
Thereafter (through 2026) | 3,487,794 |
$22,208,591 |
Note_14_Fair_Value_Details
Note 14 - Fair Value (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 14 - Fair Value (Details) [Line Items] | ||||||||||
Allowance for Loan and Lease Losses, Adjustments, Net | $2,010,765 | ($117,680) | $103,820 | ($127,172) | $445,768 | $419,860 | $6,699,271 | $257,213 | $1,869,733 | $7,822,112 |
Impairment of Real Estate | -123,500 | -48,000 | -7,540 | -666,240 | 179,040 | 666,240 | ||||
Excluding Loan Loss Reversal Foreclosed Loan [Member] | ||||||||||
Note 14 - Fair Value (Details) [Line Items] | ||||||||||
Allowance for Loan and Lease Losses, Adjustments, Net | ($1,236,000) | ($466,000) | ||||||||
Limit of Days Until Becoming Delinquent [Member] | ||||||||||
Note 14 - Fair Value (Details) [Line Items] | ||||||||||
Number of Days Delinquent | 90 days |
Note_14_Fair_Value_Details_Ass
Note 14 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Commercial Loan [Member] | Fair Value, Inputs, Level 3 [Member] | Loans Receivable [Member] | ||
Impaired loans: | ||
Impaired Loans | $529,689 | $541,956 |
Commercial Loan [Member] | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ||
Impaired loans: | ||
Impaired Loans | 1,292,500 | 408,000 |
Commercial Loan [Member] | Loans Receivable [Member] | ||
Impaired loans: | ||
Impaired Loans | 529,689 | 541,956 |
Commercial Loan [Member] | Real Estate [Member] | ||
Impaired loans: | ||
Impaired Loans | 1,292,500 | 408,000 |
Residential Mortgage [Member] | Fair Value, Inputs, Level 3 [Member] | Loans Receivable [Member] | ||
Impaired loans: | ||
Impaired Loans | 6,144,000 | 4,896,000 |
Residential Mortgage [Member] | Loans Receivable [Member] | ||
Impaired loans: | ||
Impaired Loans | 6,144,000 | 4,896,000 |
Land Loan [Member] | Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ||
Impaired loans: | ||
Impaired Loans | 2,334,773 | 433,920 |
Land Loan [Member] | Real Estate [Member] | ||
Impaired loans: | ||
Impaired Loans | 2,334,773 | 433,920 |
Fair Value, Inputs, Level 3 [Member] | Loans Receivable [Member] | ||
Impaired loans: | ||
Impaired Loans | 6,673,689 | 5,437,956 |
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | ||
Impaired loans: | ||
Impaired Loans | 3,627,273 | 841,920 |
Loans Receivable [Member] | ||
Impaired loans: | ||
Impaired Loans | 6,673,689 | 5,437,956 |
Real Estate [Member] | ||
Impaired loans: | ||
Impaired Loans | $3,627,273 | $841,920 |
Note_14_Fair_Value_Details_Lev
Note 14 - Fair Value (Details) - Level 3 Fair Value Measurements for Financial Instruments (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commercial Loan [Member] | Cost Approach Valuation Technique [Member] | Impaired Loans [Member] | ||
Impaired Loans: | ||
Impaired loans (in Dollars) | $529,689 | $541,956 |
Impaired loans, estimate of future improvements | 13.60% | 13.60% |
Impaired loans (in Dollars) | 529,689 | 541,956 |
Commercial Loan [Member] | Cost Approach Valuation Technique [Member] | Real Estate Properties [Member] | ||
Impaired Loans: | ||
Impaired loans, estimate of future improvements | 15.80% | |
Commercial Loan [Member] | Income Approach Valuation Technique [Member] | Impaired Loans [Member] | ||
Impaired Loans: | ||
Impaired loans, capitalization rate | 6.50% | 6.50% |
Commercial Loan [Member] | Income Approach Valuation Technique [Member] | Real Estate Properties [Member] | ||
Impaired Loans: | ||
Impaired loans, capitalization rate | 8.20% | |
Commercial Loan [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Minimum [Member] | ||
Impaired Loans: | ||
Impaired loans, comparable sales adjustment | -59.00% | -59.00% |
Commercial Loan [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Maximum [Member] | ||
Impaired Loans: | ||
Impaired loans, comparable sales adjustment | -2.30% | -2.30% |
Commercial Loan [Member] | Market Approach Valuation Technique [Member] | Real Estate Properties [Member] | Minimum [Member] | ||
Impaired Loans: | ||
Impaired loans, comparable sales adjustment | -42.00% | -186.20% |
Commercial Loan [Member] | Market Approach Valuation Technique [Member] | Real Estate Properties [Member] | Maximum [Member] | ||
Impaired Loans: | ||
Impaired loans, comparable sales adjustment | 13.40% | -27.10% |
Commercial Loan [Member] | Market Approach Valuation Technique [Member] | Real Estate Properties [Member] | ||
Impaired Loans: | ||
Impaired loans (in Dollars) | 1,292,500 | 408,000 |
Impaired loans (in Dollars) | 1,292,500 | 408,000 |
Residential Mortgage [Member] | Cost Approach Valuation Technique [Member] | Impaired Loans [Member] | ||
Impaired Loans: | ||
Impaired loans (in Dollars) | 6,144,000 | |
Impaired loans, estimate of future improvements | 1.80% | |
Impaired loans (in Dollars) | 6,144,000 | |
Impaired loans, discount rate | 12.00% | |
Residential Mortgage [Member] | Income Approach Valuation Technique [Member] | Impaired Loans [Member] | ||
Impaired Loans: | ||
Impaired loans (in Dollars) | 4,896,000 | |
Impaired loans, capitalization rate | 5.50% | |
Impaired loans (in Dollars) | 4,896,000 | |
Residential Mortgage [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Minimum [Member] | ||
Impaired Loans: | ||
Impaired loans, comparable sales adjustment | -10.00% | -19.10% |
Residential Mortgage [Member] | Market Approach Valuation Technique [Member] | Impaired Loans [Member] | Maximum [Member] | ||
Impaired Loans: | ||
Impaired loans, comparable sales adjustment | 20.00% | 39.00% |
Land Loan [Member] | Cost Approach Valuation Technique [Member] | Real Estate Properties [Member] | ||
Impaired Loans: | ||
Impaired loans, estimate of future improvements | 54.10% | |
Impaired loans, discount rate | 8.00% | |
Land Loan [Member] | Market Approach Valuation Technique [Member] | Real Estate Properties [Member] | Minimum [Member] | ||
Impaired Loans: | ||
Impaired loans, comparable sales adjustment | 5.00% | -33.30% |
Land Loan [Member] | Market Approach Valuation Technique [Member] | Real Estate Properties [Member] | Maximum [Member] | ||
Impaired Loans: | ||
Impaired loans, comparable sales adjustment | 62.80% | 35.50% |
Land Loan [Member] | Market Approach Valuation Technique [Member] | Real Estate Properties [Member] | Weighted Average [Member] | ||
Impaired Loans: | ||
Impaired loans, comparable sales adjustment | 7.50% | |
Land Loan [Member] | Market Approach Valuation Technique [Member] | Real Estate Properties [Member] | ||
Impaired Loans: | ||
Impaired loans (in Dollars) | 2,334,773 | 433,920 |
Impaired loans (in Dollars) | $2,334,773 | $433,920 |
Note_14_Fair_Value_Details_Car
Note 14 - Fair Value (Details) - Carrying Amounts and Estimated Fair Values of Financial Instruments (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Financial assets | |||
Cash and cash equivalents | $1,413,545 | $8,158,734 | $21,131,505 |
Cash and cash equivalents, fair value | 1,414,000 | 8,159,000 | |
Restricted Cash, fair value | 6,248,746 | 4,095,435 | |
Loans, net | 65,164,156 | 54,057,205 | |
Loans, net, fair value | 66,009,000 | 54,602,000 | |
Investment in limited liability company | 2,142,581 | 2,142,582 | |
Investment in limited liability company, fair value | 2,352,000 | 2,352,000 | |
Interest and other receivables | 1,482,380 | 1,673,978 | |
Interest and other receivables, fair value | 1,482,000 | 1,674,000 | |
Financial liabilities | |||
Due to Manager | 283,644 | 293,776 | |
Due to Manager, fair value | 283,644 | 293,776 | |
Accrued interest payable, fair value | 175,000 | 64,000 | |
Lines of credit payable | 11,450,000 | ||
Lines of credit payable | 11,450,000 | ||
Notes payable | 37,569,549 | 13,917,585 | |
Notes payable, fair value | 37,583,000 | 13,960,000 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets | |||
Cash and cash equivalents, fair value | 1,414,000 | 8,159,000 | |
Restricted Cash, fair value | 6,249,000 | 4,095,000 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets | |||
Interest and other receivables, fair value | 644,000 | 238,000 | |
Financial liabilities | |||
Due to Manager | 284,000 | 294,000 | |
Due to Manager, fair value | 284,000 | 294,000 | |
Accrued interest payable, fair value | 113,000 | ||
Lines of credit payable | 11,450,000 | ||
Notes payable, fair value | 24,428,000 | ||
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets | |||
Loans, net, fair value | 66,009,000 | 54,602,000 | |
Investment in limited liability company, fair value | 2,352,000 | 2,352,000 | |
Interest and other receivables, fair value | 838,000 | 1,436,000 | |
Financial liabilities | |||
Accrued interest payable, fair value | 62,000 | 64,000 | |
Notes payable, fair value | 13,155,000 | 13,960,000 | |
Reported Value Measurement [Member] | |||
Financial assets | |||
Cash and cash equivalents | 1,414,000 | 8,159,000 | |
Restricted Cash | 6,249,000 | 4,095,000 | |
Loans, net | 65,164,000 | 54,057,000 | |
Investment in limited liability company | 2,143,000 | 2,143,000 | |
Interest and other receivables | 1,482,000 | 1,674,000 | |
Financial liabilities | |||
Due to Manager | 284,000 | 294,000 | |
Due to Manager, fair value | 284,000 | 294,000 | |
Accrued interest payable | 175,000 | 64,000 | |
Lines of credit payable | 11,450,000 | ||
Notes payable | $37,570,000 | $13,918,000 |
Note_15_Commitments_and_Contin1
Note 15 - Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||
Payments for Environmental Liabilities | $460,000 | ||
Accrual for Environmental Loss Contingencies, Provision for New Losses | 100,000 | ||
Accrual for Environmental Loss Contingencies | 60,000 | 63,000 | |
Contractual Obligation | 5,935,000 | ||
Low Level of Arsenic in Non-Drinking Well Water [Member] | |||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||
Accrual for Environmental Loss Contingencies | 79,000 | 55,000 | |
Interest Reserves [Member] | |||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||
Contractual Obligation | 1,645,000 | ||
New Bathrooms, Modular Offices, and Improvements to Bridge [Member] | |||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||
Contractual Obligation | 785,000 | ||
Contractual Obligation, Incurred | 230,000 | ||
Tahoe Stateline Venture, LLC [Member] | |||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||
Contractual Obligation | 793,000 | ||
Contractual Obligation, Incurred | 282,000 | ||
TOTB North, LLC [Member] | |||
Note 15 - Commitments and Contingencies (Details) [Line Items] | |||
Contractual Obligation | 21,786,000 | ||
Contractual Obligation, Incurred | 1,557,000 | ||
Other Construction Costs | 580,000 | ||
Construction Costs Incurred and Other Costs | $2,137,000 |
Note_16_Subsequent_Events_Deta
Note 16 - Subsequent Events (Details) (USD $) | 0 Months Ended | 1 Months Ended | ||
Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jan. 31, 2015 | |
Note 16 - Subsequent Events (Details) [Line Items] | ||||
Escrow Deposit | $249,000 | $200,000 | ||
Notes Payable | 37,569,549 | 13,917,585 | ||
Subsequent Event [Member] | 720 LLC[Member] | ||||
Note 16 - Subsequent Events (Details) [Line Items] | ||||
Escrow Deposit | 500,000 | |||
Notes Payable | 9,771,263 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||
720 LLC[Member] | ||||
Note 16 - Subsequent Events (Details) [Line Items] | ||||
Property Selling Price | 21,000,000 | 20,750,000 | ||
Escrow Deposit | $500,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.07% |
Note_17_Summary_Quarterly_Cons2
Note 17 - Summary Quarterly Consolidated Financial Information (Unaudited) (Details) - Unaudited Summarized Quarterly Financial Data (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Unaudited Summarized Quarterly Financial Data [Abstract] | ||||||||||
Total revenues | $5,399,844 | $4,705,357 | $4,054,311 | $4,125,493 | $3,519,922 | $3,676,957 | $3,560,035 | $4,604,798 | $18,285,005 | $15,361,712 |
Total expenses | 4,325,811 | 3,709,670 | 3,625,646 | 3,462,856 | 3,338,179 | 3,643,731 | 4,172,275 | 3,488,656 | 15,123,983 | 14,642,841 |
Operating income | 1,074,033 | 995,687 | 428,665 | 662,637 | 181,743 | 33,226 | -612,240 | 1,116,142 | 3,161,022 | 718,871 |
Gain on sale of real estate, net | 503,254 | 113,113 | 2,349,808 | 277,184 | 230,765 | 251,887 | 2,429,872 | 30,337 | 3,243,359 | 2,942,861 |
Reversal of (provision for) loan losses | 2,010,765 | -117,680 | 103,820 | -127,172 | 445,768 | 419,860 | 6,699,271 | 257,213 | 1,869,733 | 7,822,112 |
Impairment losses on real estate properties | -123,500 | -48,000 | -7,540 | -666,240 | 179,040 | 666,240 | ||||
Net income | 3,588,052 | 867,620 | 2,834,293 | 805,109 | 192,036 | 704,973 | 8,516,903 | 1,403,692 | 8,095,074 | 10,817,604 |
Less: Net income attributable to non-controlling interests | -13,693 | -83,797 | -23,409 | -44,546 | -21,162 | -3,899 | -2,085,886 | 26,240 | 165,445 | 2,084,707 |
Net income attributable to common stockholders | $3,574,359 | $783,823 | $2,810,884 | $760,563 | $170,874 | $701,074 | $6,431,017 | $1,429,932 | $7,929,629 | $8,732,897 |
Net income per common share (basic and diluted) (in Dollars per share) | $0.33 | $0.07 | $0.26 | $0.07 | $0.02 | $0.06 | $0.57 | $0.13 | $0.74 | $0.78 |
Weighted average number of common shares outstanding (in Shares) | 10,768,001 | 10,768,001 | 10,768,001 | 10,769,498 | 10,920,690 | 11,196,646 | 11,198,119 | 11,198,119 | 10,768,370 | 11,127,820 |
Dividends declared per share of Common Stock (in Dollars per share) | $0.12 | $0.05 | $0.05 | $0.05 | $0.05 | $0.05 | $0.15 | $0 | $0.27 | $0.25 |
Schedule_III_Real_Estate_and_A2
Schedule III - Real Estate and Accumulated Depreciation (Details) (USD $) | 12 Months Ended | 24 Months Ended | 48 Months Ended | 36 Months Ended | ||||
Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2009 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate Accumulated Depreciation | $6,518,160 | $6,518,160 | $6,518,160 | $6,075,287 | $9,599,719 | |||
Retail Complex, Greeley, Colorado (Held Within 720 University, LLC) [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate Accumulated Depreciation | 5,170,761 | |||||||
Commercial and Residential Land Under Development, South Lake Tahoe, California [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate and Accumulated Depreciation, Costs Capitalized Subsequent to Acquisition, Land | 6,074,000 | |||||||
The 133 Condominium Units Phoenix Arizona Held Within 54th Street Condos LLC [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate Accumulated Depreciation | 328,130 | 328,130 | ||||||
SEC Schedule III, Real Estate, Write-down or Reserve, Amount | 1,115,660 | |||||||
Residential and Commercial Land Gypsum Colorado [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate, Write-down or Reserve, Amount | 3,840,000 | |||||||
Medical Office Condominium Complex, Gilbert, Arizona [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate Accumulated Depreciation | 504,219 | |||||||
Sixty Condominium Units, Lakewood, Washington [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate Accumulated Depreciation | 274,284 | 274,284 | ||||||
SEC Schedule III, Real Estate, Write-down or Reserve, Amount | 1,608,100 | |||||||
Storage Facility, Stockton, California [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate Accumulated Depreciation | 396,508 | 396,508 | ||||||
SEC Schedule III, Real Estate, Write-down or Reserve, Amount | 1,183,571 | 1,183,571 | ||||||
Office Condominium Complex, Roseville, California [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate, Write-down or Reserve, Amount | 3,712,707 | |||||||
The 75 Residential Lots, Auburn, California [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate, Write-down or Reserve, Amount | 9,904,826 | |||||||
Undeveloped Land, San Jose, California [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate, Write-down or Reserve, Amount | 1,067,592 | |||||||
Golf Course, Auburn, California [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate Accumulated Depreciation | 145,989 | |||||||
Real Estate Properties [Member] | ||||||||
Schedule III - Real Estate and Accumulated Depreciation (Details) [Line Items] | ||||||||
SEC Schedule III, Real Estate, Federal Income Tax Basis | $230,061,000 |
Schedule_III_Real_Estate_and_A3
Schedule III - Real Estate and Accumulated Depreciation (Details) - Real Estate and Accumulated Depreciation (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Real Estate Properties [Line Items] | |||
Real estate sales | ($1,529,227) | ($18,023,870) | |
Real estate accumulated depreciation | -6,075,287 | -9,599,719 | -6,518,160 |
Real estate carrying value | 163,016,805 | ||
One Hundred Sixty Nine Condominium Units And One Hundred Sixty Unit Vacant Apartment Building Miami Florida [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 13,983,086 | ||
Real estate initial cost | 34,560,000 | ||
Real estate capitalized costs | 2,136,658 | ||
Real estate accumulated depreciation | -2,342,700 | ||
Real estate carrying value | 34,353,958 | ||
Real estate date acquired | 2-Feb-11 | ||
Depreciable lives | 27 years 6 months | ||
Retail Complex, Greeley, Colorado (Held Within 720 University, LLC) [Member] | Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 1 year | ||
Retail Complex, Greeley, Colorado (Held Within 720 University, LLC) [Member] | Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 39 years | ||
Retail Complex, Greeley, Colorado (Held Within 720 University, LLC) [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 9,741,463 | ||
Real estate initial cost | 4,136,239 | ||
Real estate capitalized costs | 7,539,507 | ||
Real estate sales | -128,274 | ||
Real estate carrying value | 11,547,472 | ||
Real estate date acquired | 31-Jul-00 | ||
Commercial and Residential Land Under Development, South Lake Tahoe, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 3,400,000 | ||
Real estate initial cost | 17,871,561 | ||
Real estate capitalized costs | 12,578,335 | ||
Real estate carrying value | 30,449,896 | ||
Real estate date acquired | NaN, NaN | ||
Depreciable lives | |||
Retail Complex, South Lake Tahoe, California [Member] | Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 5 years | ||
Retail Complex, South Lake Tahoe, California [Member] | Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 39 years | ||
Retail Complex, South Lake Tahoe, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 10,445,000 | ||
Real estate initial cost | 6,409,617 | ||
Real estate capitalized costs | 16,946,784 | ||
Real estate accumulated depreciation | -144,505 | ||
Real estate carrying value | 23,211,896 | ||
Real estate date acquired | NaN, NaN | ||
The 133 Condominium Units Phoenix Arizona Held Within 54th Street Condos LLC [Member] | Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 5 years | ||
The 133 Condominium Units Phoenix Arizona Held Within 54th Street Condos LLC [Member] | Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 27 years 6 months | ||
The 133 Condominium Units Phoenix Arizona Held Within 54th Street Condos LLC [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 5,822,597 | ||
Real estate capitalized costs | 3,459,377 | ||
Real estate impairment writedowns | -1,443,790 | ||
Real estate accumulated depreciation | -904,955 | ||
Real estate carrying value | 6,933,229 | ||
Real estate date acquired | 18-Nov-09 | ||
Residential and Commercial Land Gypsum Colorado [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 9,600,000 | ||
Real estate capitalized costs | 53,434 | ||
Real estate impairment writedowns | -3,840,000 | ||
Real estate carrying value | 5,813,434 | ||
Real estate date acquired | 1-Oct-11 | ||
Depreciable lives | |||
Assisted Living Facility, Bensalem, Pennsylvania [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 5,018,166 | ||
Real estate accumulated depreciation | -13,166 | ||
Real estate carrying value | 5,005,000 | ||
Real estate date acquired | 12-Dec-14 | ||
Depreciable lives | 27 years 6 months | ||
Medical Office Condominium Complex, Gilbert, Arizona [Member] | Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 5 years | ||
Medical Office Condominium Complex, Gilbert, Arizona [Member] | Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 39 years | ||
Medical Office Condominium Complex, Gilbert, Arizona [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 4,535,781 | ||
Real estate capitalized costs | 180,378 | ||
Real estate carrying value | 4,716,159 | ||
Real estate date acquired | 19-May-10 | ||
Sixty Condominium Units, Lakewood, Washington [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 6,616,881 | ||
Real estate capitalized costs | 65,502 | ||
Real estate impairment writedowns | -1,882,384 | ||
Real estate accumulated depreciation | -435,256 | ||
Real estate carrying value | 4,364,743 | ||
Real estate date acquired | 20-Aug-10 | ||
Depreciable lives | 27 years 6 months | ||
Storage Facility, Stockton, California [Member] | Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 15 years | ||
Storage Facility, Stockton, California [Member] | Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 39 years | ||
Storage Facility, Stockton, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 5,674,000 | ||
Real estate capitalized costs | 42,980 | ||
Real estate impairment writedowns | -1,580,079 | ||
Real estate accumulated depreciation | -289,017 | ||
Real estate carrying value | 3,847,884 | ||
Real estate date acquired | 3-Jun-08 | ||
Office Condominium Complex, Roseville, California [Member] | Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 2 years | ||
Office Condominium Complex, Roseville, California [Member] | Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 39 years | ||
Office Condominium Complex, Roseville, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 8,569,286 | ||
Real estate capitalized costs | 303,178 | ||
Real estate sales | -1,095,670 | ||
Real estate impairment writedowns | -3,712,707 | ||
Real estate accumulated depreciation | -379,884 | ||
Real estate carrying value | 3,684,203 | ||
Real estate date acquired | 26-Sep-08 | ||
Retail Building, Sacramento, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 3,890,968 | ||
Real estate carrying value | 3,890,968 | ||
Real estate date acquired | 3-Sep-10 | ||
Depreciable lives | |||
The 75 Residential Lots, Auburn, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 13,746,625 | ||
Real estate capitalized costs | 36,745 | ||
Real estate impairment writedowns | -9,904,826 | ||
Real estate carrying value | 3,878,544 | ||
Real estate date acquired | 27-Sep-07 | ||
Depreciable lives | |||
Industrial Building, Sunnyvale, California [Member] | Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 10 years | ||
Industrial Building, Sunnyvale, California [Member] | Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 39 years | ||
Industrial Building, Sunnyvale, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 3,428,885 | ||
Real estate capitalized costs | 54,514 | ||
Real estate accumulated depreciation | -455,665 | ||
Real estate carrying value | 3,027,734 | ||
Real estate date acquired | 5-Nov-09 | ||
Twelve Condominium and Three Commercial Units Tacoma Washington [Member] | Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 27 years 6 months | ||
Twelve Condominium and Three Commercial Units Tacoma Washington [Member] | Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 39 years | ||
Twelve Condominium and Three Commercial Units Tacoma Washington [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 2,486,400 | ||
Real estate capitalized costs | 84,909 | ||
Real estate accumulated depreciation | -162,628 | ||
Real estate carrying value | 2,408,681 | ||
Real estate date acquired | 8-Jul-11 | ||
Marina and Boat Club With One Hundred Seventy Nine Boat Slips Isleton California [Member] | Minimum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 5 years | ||
Marina and Boat Club With One Hundred Seventy Nine Boat Slips Isleton California [Member] | Maximum [Member] | |||
Real Estate Properties [Line Items] | |||
Depreciable lives | 15 years | ||
Marina and Boat Club With One Hundred Seventy Nine Boat Slips Isleton California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 2,002,525 | ||
Real estate capitalized costs | 255,543 | ||
Real estate accumulated depreciation | -37,620 | ||
Real estate carrying value | 2,220,448 | ||
Real estate date acquired | 29-Jan-13 | ||
Undeveloped Land, San Jose, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 3,025,992 | ||
Real estate impairment writedowns | -1,067,592 | ||
Real estate carrying value | 1,958,400 | ||
Real estate date acquired | 27-Dec-02 | ||
Depreciable lives | |||
Golf Course, Auburn, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 1,917,981 | ||
Real estate capitalized costs | 102,429 | ||
Real estate carrying value | 2,020,410 | ||
Real estate date acquired | 20-Jun-09 | ||
Depreciable lives | |||
Unimproved Residential and Commercial Land, Bethel Island, California [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate initial cost | 2,336,640 | ||
Real estate sales | -1,867 | ||
Real estate carrying value | 2,334,773 | ||
Real estate date acquired | 11-Mar-14 | ||
Depreciable lives | |||
Miscellaneous Real Estate [Member] | |||
Real Estate Properties [Line Items] | |||
Real estate encumbrances (Notes payable) | 0 | ||
Real estate accumulated depreciation | -909,891 | ||
Real estate carrying value | $7,348,973 | ||
Real estate date acquired | NaN, NaN | ||
Depreciable lives |
Schedule_III_Real_Estate_and_A4
Schedule III - Real Estate and Accumulated Depreciation (Details) - Changes in Real Estate Held for Sale and Investment (USD $) | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in Real Estate Held for Sale and Investment [Abstract] | ||||||
Balance at beginning of period | $135,315,964 | $135,315,964 | $127,773,349 | |||
Balance at end of period | 135,315,964 | 163,016,805 | 135,315,964 | |||
Acquisitions through foreclosure | 9,572,406 | 19,602,478 | ||||
Investments in real estate properties | 21,987,250 | 9,017,333 | ||||
Subtotal | 156,393,160 | 166,875,620 | 156,393,160 | |||
Cost of real estate properties sold | 1,529,227 | 18,023,870 | ||||
Impairment losses on real estate properties | -123,500 | -48,000 | -7,540 | -666,240 | 179,040 | 666,240 |
Depreciation of properties held for investment | $2,150,548 | $2,387,086 |
Schedule_III_Real_Estate_and_A5
Schedule III - Real Estate and Accumulated Depreciation (Details) - Changes in Accumulated Depreciation (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in Accumulated Depreciation [Abstract] | ||
Balance at beginning of period | $9,599,719 | $6,518,160 |
Depreciation expense | 2,150,548 | 2,387,086 |
Previous accumulated depreciation on real estate moved back to held for investment | 849,125 | |
Subtotal | 11,750,267 | 9,754,371 |
Accumulated depreciation of real estate sold during 2013 | 8,663 | |
Accumulated depreciation on real estate moved to held for sale | 5,674,980 | 145,989 |
Balance at end of period | $6,075,287 | $9,599,719 |
Schedule_IV_Mortgage_Loans_on_2
Schedule IV - Mortgage Loans on Real Estate (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Schedule IV - Mortgage Loans on Real Estate (Details) [Line Items] | |
Percent of Total Loans | 3.00% |
The 133 Condominium Units Phoenix Arizona Held Within 54th Street Condos LLC [Member] | |
Schedule IV - Mortgage Loans on Real Estate (Details) [Line Items] | |
Provision for Loan and Lease Losses | $1,839,345 |
Changes in Mortgage Loans on Real Estate [Member] | |
Schedule IV - Mortgage Loans on Real Estate (Details) [Line Items] | |
Mortgage Loans on Real Estate, Federal Income Tax Basis | $68,570,000 |
Schedule_IV_Mortgage_Loans_on_3
Schedule IV - Mortgage Loans on Real Estate (Details) - Mortgage Loans on Real Estate (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | $68,033,511 | $58,796,293 | $70,262,262 |
Principal Amount of Loans Subject to Delinquent Principal | 9,476,081,000,000 | ||
Principal Amount of Loans Subject to Delinquent Payments | 10,727,567,000,000 | ||
Mortgage Loans Between $0 and $500,000 [Member] | Maturity Date Current to March 2028 [Member] | Minimum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 7.88% | ||
Mortgage Loans Between $0 and $500,000 [Member] | Maturity Date Current to March 2028 [Member] | Maximum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 8.00% | ||
Mortgage Loans Between $0 and $500,000 [Member] | Maturity Date Current to March 2028 [Member] | |||
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | 653,747 | ||
Principal Amount of Loans Subject to Delinquent Payments | 253,747,000,000 | ||
Mortgage Loans Between $500,001 and $1,000,000 [Member] | Maturity Date Current to March 2017 [Member] | Minimum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 7.50% | ||
Mortgage Loans Between $500,001 and $1,000,000 [Member] | Maturity Date Current to March 2017 [Member] | Maximum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 8.00% | ||
Mortgage Loans Between $500,001 and $1,000,000 [Member] | Maturity Date Current to March 2017 [Member] | |||
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | 5,627,223 | ||
Principal Amount of Loans Subject to Delinquent Principal | 862,329,000,000 | ||
Mortgage Loans Between $1,000,001 and 5,000,000 [Member] | Maturity Date Current to October 2018 [Member] | Minimum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 5.00% | ||
Mortgage Loans Between $1,000,001 and 5,000,000 [Member] | Maturity Date Current to October 2018 [Member] | Maximum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 10.00% | ||
Mortgage Loans Between $1,000,001 and 5,000,000 [Member] | Maturity Date Current to October 2018 [Member] | |||
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | 31,499,358 | ||
Principal Amount of Loans Subject to Delinquent Principal | 1,078,752,000,000 | ||
Principal Amount of Loans Subject to Delinquent Payments | 2,938,820,000,000 | ||
Mortage Loans over $5,000,000 [Member] | Maturity Date Current to August 2018 [Member] | Minimum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 8.00% | ||
Mortage Loans over $5,000,000 [Member] | Maturity Date Current to August 2018 [Member] | Maximum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 11.00% | ||
Mortage Loans over $5,000,000 [Member] | Maturity Date Current to August 2018 [Member] | |||
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | 30,253,183 | ||
Principal Amount of Loans Subject to Delinquent Principal | 7,535,000,000,000 | ||
Principal Amount of Loans Subject to Delinquent Payments | 7,535,000,000,000 | ||
Commercial [Member] | Maturity Date Current to October 2018 [Member] | Minimum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 5.00% | ||
Commercial [Member] | Maturity Date Current to October 2018 [Member] | Maximum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 10.00% | ||
Commercial [Member] | Maturity Date Current to October 2018 [Member] | |||
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | 52,531,537 | ||
Principal Amount of Loans Subject to Delinquent Principal | 1,078,752,000,000 | ||
Principal Amount of Loans Subject to Delinquent Payments | 1,078,752,000,000 | ||
Residential [Member] | Maturity Date Current to March 2028 [Member] | Minimum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 7.50% | ||
Residential [Member] | Maturity Date Current to March 2028 [Member] | Maximum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 11.00% | ||
Residential [Member] | Maturity Date Current to March 2028 [Member] | |||
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | 13,491,906 | ||
Principal Amount of Loans Subject to Delinquent Principal | 8,397,329,000,000 | ||
Principal Amount of Loans Subject to Delinquent Payments | 7,788,747,000,000 | ||
Land Property [Member] | Maturity Date April 2015 to February 2016 [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 8.00% | ||
Carrying Amount of Mortgages | 2,010,068 | ||
Principal Amount of Loans Subject to Delinquent Payments | 1,860,068,000,000 | ||
Total [Member] | |||
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | 68,033,511 | ||
Principal Amount of Loans Subject to Delinquent Principal | 9,476,081,000,000 | ||
Principal Amount of Loans Subject to Delinquent Payments | 10,727,567,000,000 | ||
Maturity Date Current to March 2028 [Member] | Loan Position First [Member] | Minimum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 5.00% | ||
Maturity Date Current to March 2028 [Member] | Loan Position First [Member] | Maximum [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 11.00% | ||
Maturity Date Current to March 2028 [Member] | Loan Position First [Member] | |||
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | 65,533,511 | ||
Principal Amount of Loans Subject to Delinquent Principal | 9,476,081,000,000 | ||
Principal Amount of Loans Subject to Delinquent Payments | 10,727,567,000,000 | ||
Maturity Date October 2018 [Member] | Loan Position Second [Member] | |||
TYPE OF PROPERTY | |||
Interest Rate | 10.00% | ||
Carrying Amount of Mortgages | 2,500,000 | ||
Total [Member] | |||
TYPE OF PROPERTY | |||
Carrying Amount of Mortgages | 68,033,511 | ||
Principal Amount of Loans Subject to Delinquent Principal | 9,476,081,000,000 | ||
Principal Amount of Loans Subject to Delinquent Payments | $10,727,567,000,000 |
Schedule_IV_Mortgage_Loans_on_4
Schedule IV - Mortgage Loans on Real Estate (Details) - Changes in Mortgage Loans on Real Estate (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Changes in Mortgage Loans on Real Estate [Abstract] | ||
Balance at beginning of period | $58,796,293 | $70,262,262 |
Balance at end of period | 68,033,511 | 58,796,293 |
New loans | 44,505,577 | 31,618,852 |
Discount accretion | 122,004 | |
Advances moved to principal of loans | 22,880 | |
Subtotal | 103,423,874 | 101,903,994 |
Collection of principal | 27,718,917 | 15,641,192 |
Foreclosures | $7,671,446 | $27,466,509 |
Schedule_IV_Mortgage_Loans_on_5
Schedule IV - Mortgage Loans on Real Estate (Details) - Loans Which Exceed Three Percent of the Total Loans (USD $) | Dec. 31, 2014 |
Participating Mortgage Loans [Line Items] | |
Prior liens | $0 |
Face amount of mortgages | 46,553,611 |
Carrying amount of mortgages | 41,124,257 |
Principal amount of loans subject to delinquent principal or interest | 5,695,655,000,000 |
Mixed Commercial Buildings Oakland California [Member] | Maturity Date 08/01/2018 and 10/01/2018 [Member] | |
Participating Mortgage Loans [Line Items] | |
Interest rate | 10.00% |
Prior liens | 0 |
Face amount of mortgages | 11,588,183 |
Carrying amount of mortgages | 11,588,183 |
Principal amount of loans subject to delinquent principal or interest | 0 |
Office Building and Single Family Home Dublin, California [Member] | Maturity Date 06/01/2016 [Member] | |
Participating Mortgage Loans [Line Items] | |
Interest rate | 8.00% |
Prior liens | 0 |
Face amount of mortgages | 8,500,000 |
Carrying amount of mortgages | 7,780,000 |
Principal amount of loans subject to delinquent principal or interest | 0 |
The 133 Condominium Units Phoenix Arizona Held Within 54th Street Condos LLC [Member] | Maturity Date 07/01/2009 [Member] | |
Participating Mortgage Loans [Line Items] | |
Interest rate | 11.00% |
Prior liens | 0 |
Face amount of mortgages | 7,535,000 |
Carrying amount of mortgages | 5,695,655 |
Principal amount of loans subject to delinquent principal or interest | 5,695,655,000,000 |
Office Building Santa Clara, California [Member] | Maturity Date 04/15/2016 [Member] | |
Participating Mortgage Loans [Line Items] | |
Interest rate | 8.00% |
Prior liens | 0 |
Face amount of mortgages | 5,850,000 |
Carrying amount of mortgages | 5,850,000 |
Principal amount of loans subject to delinquent principal or interest | 0 |
Marina Tiburon, California [Member] | Maturity Date 10/01/2015 [Member] | |
Participating Mortgage Loans [Line Items] | |
Interest rate | 8.00% |
Prior liens | 0 |
Face amount of mortgages | 3,200,000 |
Carrying amount of mortgages | 3,200,000 |
Principal amount of loans subject to delinquent principal or interest | 0 |
Retail Building South Lake Tahoe, California [Member] | Maturity Date 01/01/2017 [Member] | |
Participating Mortgage Loans [Line Items] | |
Interest rate | 8.00% |
Prior liens | 0 |
Face amount of mortgages | 4,593,803 |
Carrying amount of mortgages | 2,809,838 |
Principal amount of loans subject to delinquent principal or interest | 0 |
Apartment Building Berkeley, California [Member] | Maturity Date 06/15/2016 [Member] | |
Participating Mortgage Loans [Line Items] | |
Interest rate | 8.00% |
Prior liens | 0 |
Face amount of mortgages | 2,300,000 |
Carrying amount of mortgages | 2,135,821 |
Principal amount of loans subject to delinquent principal or interest | 0 |
Apartment Building San Anselmo, California [Member] | Maturity Date 03/01/2017 [Member] | |
Participating Mortgage Loans [Line Items] | |
Interest rate | 7.50% |
Prior liens | 0 |
Face amount of mortgages | 2,986,625 |
Carrying amount of mortgages | 2,064,760 |
Principal amount of loans subject to delinquent principal or interest | $0 |