Sachem Capital (SACH) 10-Q 16 Aug 21 2021 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2021	Aug. 13, 2021
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity File Number	001-37997
Entity Registrant Name	SACHEM CAPITAL CORP.
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	81-3467779
Entity Address, Address Line One	698 Main Street,
Entity Address, City or Town	Branford
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06405
City Area Code	203
Local Phone Number	433-4736
Entity Current Reporting Status	Yes
Entity Central Index Key	0001682220
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Trading Symbol	SACH
Entity Common Stock, Shares Outstanding		28,315,930
Entity Interactive Data Current	Yes
Title of 12(b) Security	Common Shares, par value $.001 per share
Security Exchange Name	NYSE

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Assets:
Cash and cash equivalents	$ 62,225,813	$ 19,408,028
Investment securities	44,502,267	37,293,703
Investment in partnership	1,843,398
Mortgages receivable	172,793,975	155,616,300
Interest and fees receivable	2,017,996	1,820,067
Other receivables	131,175	67,307
Due from borrowers	2,306,346	2,025,663
Prepaid expenses	153,732	71,313
Property and equipment, net	2,168,988	1,433,388
Real estate owned	7,892,845	8,861,609
Other deposits	192,646
Deferred financing costs	88,212	72,806
Total assets	296,317,393	226,670,184
Liabilities:
Notes payable (net of deferred financing costs of $4,383,186 and $4,866,058)	110,143,564	109,640,692
Mortgage payable	0	767,508
Line of credit	34,276,418	28,055,648
Accrued dividends payable	0	2,654,977
Accounts payable and accrued expenses	315,708	372,662
Other loans	0	257,845
Security deposits held	13,416	13,416
Advances from borrowers	2,987,231	1,830,539
Deferred revenue	2,230,435	2,099,331
Notes payable	42,918	54,682
Accrued interest	18,299	3,344
Total liabilities	150,027,989	145,750,644
Commitments and Contingencies
Shareholders' equity:
Preferred shares - $.001 par value; 5,000,000 shares authorized; 1,700,000 shares of Series A Preferred Stock issued and outstanding	1,700	0
Common stock - $.001 par value; 100,000,000 shares authorized; 26,733,213 issued and outstanding	26,733	22,125
Paid-in capital	147,362,456	83,814,376
Accumulated other comprehensive loss	(137,802)	(25,992)
Accumulated deficit	(963,683)	(2,890,969)
Total shareholders' equity	146,289,404	80,919,540
Total liabilities and shareholders' equity	$ 296,317,393	$ 226,670,184

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
BALANCE SHEETS
Deferred financing costs	$ 4,383,186	$ 4,866,058
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	1,700,000	1,700,000
Preferred Stock, Shares Outstanding	1,700,000	1,700,000
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	26,733,213	22,124,801
Common Stock, Shares, Outstanding	26,733,213	22,124,801

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Revenue:
Interest income from loans	$ 4,682,295	$ 3,265,677	$ 9,213,528	$ 6,167,083
Investment income	180,120	33,162	422,811	130,678
Income from partnership investment	36,868	0	54,241	0
Gain (loss) on sale of investment securities	85,471	(8,925)	(43,968)	437,159
Origination fees	831,893	647,499	1,349,321	1,158,555
Late and other fees	61,970	21,099	97,899	35,880
Processing fees	43,410	39,665	79,385	86,123
Rental income (loss), net	(9,398)	29,456	(5,214)	40,184
Debt forgiveness	257,845	0	257,845	0
Other income	543,421	283,009	1,000,230	567,283
Total revenue	6,713,895	4,310,642	12,426,078	8,622,945
Operating costs and expenses:
Interest and amortization of deferred financing costs	2,505,234	1,152,302	4,969,989	2,302,255
Professional fees	251,170	110,104	482,928	242,413
Compensation, fees and taxes	812,143	388,075	1,404,230	732,569
Exchange fees	12,465	0	24,795	7,272
Other expenses and taxes	23,506	6,534	45,314	35,238
Depreciation	21,263	14,688	40,865	30,971
General and administrative expenses	248,308	127,460	407,916	267,674
Expense in connection with termination of credit facility	(257,845)	0	(257,845)	0
Loss on sale of real estate	(14,962)	0	(17,096)	(4,460)
Impairment loss	294,000	245,000	319,000	495,000
Total operating costs and expenses	4,183,051	2,044,163	7,712,133	4,117,852
Net income	2,530,844	2,266,479	4,713,945	4,505,093
Other comprehensive (loss) gain
Unrealized (loss) gain on investment securities	(104,316)	221,449	(111,810)	86,067
Comprehensive income	$ 2,426,528	$ 2,487,928	$ 4,602,135	$ 4,591,160
Basic and diluted net income per common share outstanding:
Basic	$ 0.10	$ 0.10	$ 0.20	$ 0.20
Diluted	$ 0.10	$ 0.10	$ 0.20	$ 0.20
Weighted average number of common shares outstanding:
Basic	24,851,010	22,117,301	23,503,679	22,117,301
Diluted	24,857,897	22,117,301	23,507,685	22,117,301

STATEMENTS OF CHANGES IN SHAREH

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	Series A Preferred StockPreferred Stock	Series A Preferred StockAdditional Paid-in Capital	Series A Preferred Stock	Preferred Stock	Common Shares	Additional Paid-in Capital	Accumulated Other Comprehensive (Loss) Income	(Accumulated Deficit) Retained Earnings	Total
Beginning balance at Dec. 31, 2019					$ 22,117	$ 83,856,308	$ (50,878)	$ (1,266,729)	$ 82,560,818
Beginning balance (in shares) at Dec. 31, 2019					22,117,301
Issuance of common shares, net of expenses						(58,353)			(58,353)
Stock based compensation						8,214			8,214
Unrealized loss on marketable securities							86,067		86,067
Dividends paid								(2,654,076)	(2,654,076)
Net income								4,505,093	4,505,093
Balance at Jun. 30, 2020					$ 22,117	83,806,169	35,189	584,288	84,447,763
Balance (in shares) at Jun. 30, 2020					22,117,301
Beginning balance at Mar. 31, 2020					$ 22,117	83,802,062	(186,260)	(1,682,191)	81,955,728
Beginning balance (in shares) at Mar. 31, 2020					22,117,301
Stock based compensation						4,107			4,107
Unrealized loss on marketable securities							221,449		221,449
Net income								2,266,479	2,266,479
Balance at Jun. 30, 2020					$ 22,117	83,806,169	35,189	584,288	84,447,763
Balance (in shares) at Jun. 30, 2020					22,117,301
Beginning balance at Dec. 31, 2020					$ 22,125	83,814,376	(25,992)	(2,890,969)	80,919,540
Beginning balance (in shares) at Dec. 31, 2020					22,124,801
Issuance of common shares, net of expenses	$ 1,700	$ 40,611,426	$ 40,613,126		$ 4,514	22,874,335			22,878,849
Issuance of common shares, net of expenses (in shares)	1,700,000				4,513,731
Stock based compensation					$ 94	62,319			62,413
Stock based compensation (in shares)					94,681
Unrealized loss on marketable securities							(111,810)		(111,810)
Dividends paid								(2,786,659)	(2,786,659)
Net income								4,713,945	4,713,945
Balance at Jun. 30, 2021				$ 1,700	$ 26,733	147,362,456	(137,802)	(963,683)	146,289,404
Balance (in shares) at Jun. 30, 2021				1,700,000	26,733,213
Beginning balance at Mar. 31, 2021					$ 22,428	85,360,645	(33,486)	(707,868)	84,641,719
Beginning balance (in shares) at Mar. 31, 2021					22,428,208
Issuance of common shares, net of expenses	$ (1,700)	$ (40,611,426)	$ (40,613,126)		$ 4,211	21,332,173			21,336,384
Issuance of common shares, net of expenses (in shares)	1,700,000				4,210,324
Stock based compensation					$ 94	58,212			58,306
Stock based compensation (in shares)					94,681
Unrealized loss on marketable securities							(104,316)		(104,316)
Dividends paid								(2,786,659)	(2,786,659)
Net income								2,530,844	2,530,844
Balance at Jun. 30, 2021				$ 1,700	$ 26,733	$ 147,362,456	$ (137,802)	$ (963,683)	$ 146,289,404
Balance (in shares) at Jun. 30, 2021				1,700,000	26,733,213

STATEMENTS OF CASH FLOW

STATEMENTS OF CASH FLOW - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 4,713,945	$ 4,505,093
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs and bond discount	502,872	235,913
Write-off of deferred financing costs	72,806	0
Depreciation expense	40,865	30,971
Stock based compensation	62,319	8,214
Impairment loss	319,000	495,000
Loss on sale of real estate	(17,096)	(4,460)
Loss (gain) on sale of marketable securities	43,968	(437,159)
Debt forgiveness	(257,845)	0
(Increase) decrease in:
Interest and fees receivable	(197,929)	(186,094)
Other receivables	(63,868)	25,000
Due from borrowers	(280,683)	(597,776)
Prepaid expenses	(82,419)	(48,441)
Deposits on property and equipment	0	71,680
(Decrease) increase in:
Accrued interest	14,955	(144)
Accounts payable and accrued expenses	(56,954)	51,836
Deferred revenue	131,104	(346,855)
Advances from borrowers	1,156,692	163,933
Total adjustments	1,421,979	(529,462)
NET CASH PROVIDED BY OPERATING ACTIVITIES	6,135,924	3,975,631
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities	(85,471,393)	(17,428,603)
Proceeds from the sale of investment securities	78,107,144	17,940,198
Purchase of interest in investment partnership	(1,843,398)	0
Proceeds from sale of real estate owned	919,014	1,762,775
Acquisitions of and improvements to real estate owned	(286,346)	(1,027,533)
Purchase of property and equipment	(776,465)	(62,567)
Security deposits held	0	5,616
Principal disbursements for mortgages receivable	(75,190,172)	(42,303,747)
Principal collections on mortgages receivable	58,012,498	25,417,062
Costs in connection with investment activities	(192,646)	0
NET CASH USED FOR INVESTING ACTIVITIES	(26,721,764)	(15,696,799)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from line of credit	6,220,770	0
Repayment of mortgage payable	(767,508)	(8,181)
Principal payments on notes payable	(11,764)	(10,031)
Dividends paid	(5,441,636)	(2,654,076)
Financing costs incurred	(88,212)	(58,353)
Proceeds from other loans	0	257,845
Proceeds from issuance of common shares, net of expenses	22,878,849	0
Proceeds from issuance of Series A Preferred Stock, net of expenses	40,613,126	0
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES	63,403,625	(2,472,796)
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS	42,817,785	(14,193,964)
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR	19,408,028	18,841,937
CASH AND CASH EQUIVALENTS - END OF PERIOD	62,225,813	4,647,973
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Interest paid	$ 4,479,800	$ 2,066,341

The Company

The Company	6 Months Ended
	Jun. 30, 2021
The Company
The Company	1. The Company Sachem Capital Corp. (the “Company”), a New York corporation, specializes in originating, underwriting, funding, servicing and managing a portfolio of first mortgage loans. The Company offers short term ( i.e. one

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2021
Significant Accounting Policies
Significant Accounting Policies	2. Significant Accounting Policies Unaudited Financial Statements The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying unaudited financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2020 and the notes thereto included in the Company’s Annual Report on Form 10-K. Results of operations for the interim periods are not necessarily indicative of the operating results to be attained in the entire fiscal year. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management will base the use of estimates on (a) various assumptions that consider its experience, (b) the Company’s projections regarding future operations and (c) general financial market and local and general economic conditions. Actual amounts could differ from those estimates. Cash and Cash Equivalents The Company considers all demand deposits, cashier’s checks, money market accounts and certificates of deposit with an original maturity of three months or less to be cash equivalents. The Company maintains its cash and cash equivalents at various financial institutions. The combined account balances typically exceed the Federal Deposit Insurance Corporation insurance coverage, and, as a result, there is a concentration of credit risk related to amounts on deposit. The Company does not believe that the risk is significant. Allowance for Loan Loss The Company reviews each loan on a quarterly basis and evaluates the borrower’s ability to pay the monthly interest, the borrower’s likelihood of executing the original exit strategy and the loan-to-value (LTV) ratio. Based on the analysis, management determines if any provisions for impairment of loans should be made and whether any loan loss reserves are required. Fair Value Measurements The framework for measuring fair value provides a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 Level 2 ● quoted prices for similar assets or liabilities in active markets; ● quoted prices for identical or similar assets or liabilities in inactive markets; ● inputs other than quoted prices that are observable for the asset or liability; and ● inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (i.e., Level 3 Property and Equipment Land and building acquired in December 2016 to serve as the Company’s office facilities is stated at cost. The building is being depreciated using the straight-line method over its estimated useful life of 40 years. Expenditures for repairs and maintenance are charged to expense as incurred. Impairment of long-lived assets The Company continually monitors events or changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted cash flows is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair market value of the assets. Deferred Financing Costs Costs incurred by the Company in connection with public offerings of its unsecured, unsubordinated notes, described in Note 6 - Notes Payable -- are being amortized over the term of the respective Notes. Revenue Recognition Interest income from the Company’s loan portfolio is earned over the loan period and is calculated using the simple interest method on principal amounts outstanding. Generally, the Company's loans provide for interest to be paid monthly in arrears. The Company does not accrue interest income on mortgages receivable that are more than 90 days past due. Interest income not accrued at June 30, 2021 and collected prior to the issuance of these financial statements is included in June 30, 2021 income. Origination fee revenue, generally 2%- 5% of the original loan principal amount, is collected at loan funding and is recognized ratably over the contractual life of the loan in accordance with ASC 310. Income Taxes The Company believes it qualifies as a Real Estate Investment Trust (REIT) for federal income tax purposes and made the election to be taxed as a REIT when it filed its 2017 federal income tax return. As a REIT, the Company is required to distribute at least 90% of its taxable income to its shareholders on an annual basis. The Company’s qualification as a REIT depends on its ability to meet on a continuing basis, through actual investment and operating results, various complex requirements under the Internal Revenue Code of 1986, as amended, relating to, among other things, the sources of its income, the composition and values of its assets, its compliance with the distribution requirements applicable to REITs and the diversity of ownership of its outstanding common shares. So long as it qualifies as a REIT, the Company, generally, will not be subject to U.S. federal income tax on its taxable income distributed to its shareholders. However, if it fails to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal income tax at regular corporate rates and may also be subject to various penalties and may be precluded from re-electing REIT status for the four taxable years following the year during in which it lost its REIT qualification. The Company follows the provisions of FASB ASC Topic 740-10 “Accounting for Uncertainty in Income Taxes”, which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and disclosure required. Under this standard, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in interest expense. The Company has determined that there are no uncertain tax positions requiring accrual or disclosure in the accompanying financial statements as of June 30, 2021. Earnings Per Share Basic and diluted earnings per share are calculated in accordance with ASC 260 “Earnings Per Share”. Under ASC 260, basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the potential dilution from the exercise of stock options and warrants for common shares using the treasury stock method. The numerator in calculating both basic and diluted earnings per common share for each period is the reported net income. Recent Accounting Pronouncements Management does not believe that any other recently issued, but not yet effected, accounting standards if currently adopted would have a material effect on the Company’s financial statements. ​

Fair Value Measurement

Fair Value Measurement	6 Months Ended
	Jun. 30, 2021
Fair Value Measurement
Fair Value Measurement	3. Fair Value Measurement The asset or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair market value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table sets forth by Level, within the fair value hierarchy, the Company’s assets at fair value as of June 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Stocks and ETFs ​ $ 3,145,774 ​ $ — ​ $ — ​ $ 3,145,774 Fixed and Preferred Securities ​ ​ 41,314,792 ​ ​ — ​ ​ — ​ ​ 41,314,792 Mutual Funds ​ ​ 41,701 ​ — ​ — ​ ​ 41,701 Total Investments ​ $ 44,502,267 ​ ​ — ​ ​ — ​ $ 44,502,267 Real Estate Owned ​ ​ ​ $ 7,892,845 ​ $ 7,892,845 ​ Following is a description of the methodologies used for assets measured at fair value: Stocks and ETFs: Fixed and Preferred Securities: Mutual funds Real estate owned

Mortgages Receivable

Mortgages Receivable	6 Months Ended
	Jun. 30, 2021
Mortgages Receivable
Mortgages Receivable	4. Mortgages Receivable Mortgages Receivable The Company offers short-term secured, non-bank loans to real estate owners and investors (also known as “hard money” loans) to fund their acquisition, renovation, development, rehabilitation or improvement of properties located primarily in Connecticut. The loans are secured by first mortgage liens on one or more properties owned by the borrower or related parties. In addition, each loan is personally guaranteed by the borrower or its principals, which guarantees may be collaterally secured as well. The loans are for a term of one to three years . The loans are initially recorded and carried thereafter, in the financial statements, at cost. Most of the loans provide for monthly payments of interest only (in arrears) during the term of the loan and a “balloon” payment of the principal on the maturity date. For the six-month periods ended June 30 , 2021 and 2020, the aggregate amounts of loans funded by the Company were $75,190,172 and $42,303,747 , respectively, offset by principal repayments of $58,012,498 and $25,417,062 , respectively. At June 30 , 2021, the Company’s portfolio included loans with outstanding principal balances up to approximately $9.8 million, with stated interest rates ranging from 5.0% to 13.0% and a default interest rate for non-payment of 18% . At June 30 , 2021, no single borrower had loans outstanding representing more than 10% of the total balance of the loans outstanding. The Company will extend the term of a loan if, at the time of the extension, the loan and the borrower satisfy the Company’s underwriting requirements at the time of the extension. The Company treats a loan extension as a new loan. Credit Risk Credit risk profile based on loan activity as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding Mortgages Receivable Residential Commercial Land Mixed Use Mortgages June 30, 2021 ​ $ 104,918,519 ​ $ 46,809,361 ​ $ 11,900,941 ​ $ 9,165,154 ​ $ 172,793,975 December 31, 2020 ​ $ 112,240,129 ​ $ 33,548,683 ​ $ 6,111,670 ​ $ 3,715,818 ​ $ 155,616,300 ​ The following are the maturities of mortgages receivable as of June 30: ​ ​ ​ ​ ​ 2021 $ 67,900,778 2022 ​ 92,695,010 2023 ​ 11,787,347 2024 and thereafter ​ 410,840 ​ ​ $ 172,793,975 ​ At June 30, 2021, of the 477 mortgage loans in the Company’s portfolio, 12 were the subject of foreclosure proceedings. The aggregate outstanding balances due on these loans as of June 30, 2021, including unpaid principal, accrued but unpaid interest and borrower fees, was approximately $2.63 million. In the case of each of these loans, the Company believes the value of the collateral exceeds the total amount due.

Real Estate Owned

Real Estate Owned	6 Months Ended
	Jun. 30, 2021
Real Estate Owned
Real Estate Owned	5. Real Estate Owned Property purchased for rental or acquired through foreclosure are included on the balance sheet as real estate owned. As of June 30, 2021, and December 31, 2020, real estate owned totaled $7,892,845 and $8,861,609, respectively, with no valuation allowance. As of June 30, 2021, real estate owned included $986,975 of real estate held for rental and $6,905,870 of real estate held for sale. In the first six-months of 2021, the Company recorded an impairment loss of $319,000 compared to an impairment loss of $495,000 in the first six-months of 2020. For the three-months ended June 30, 2021 and 2020, the impairment loss was $294,000 and $245,000, respectively. ​ Properties Held for Sale On April 30, 2021, the Company sold a property classified as real estate held for sale, receiving approximately $280,000 in gross proceeds. A loss of $14,962 was recognized on the sale.

Notes Payable and Line of Credi

Notes Payable and Line of Credit	6 Months Ended
	Jun. 30, 2021
Notes Payable and Line of Credit
Notes Payable and Line of Credit	6. Notes Payable and Line of Credit At June 30, 2021, the Company had an aggregate of $110,143,564 of unsecured, unsubordinated notes payable outstanding, net of $4,383,186 of deferred financing costs (collectively, the “Notes”). The Notes are divided into three series: (i) Notes having an aggregate principal amount of $23,663,000 bearing interest at 7.125% per annum and maturing June 30, 2024 (“the June 2024 Notes”); (ii) Notes having an aggregate principal amount of $34,500,000 bearing interest at 6.875% per annum and maturing December 30, 2024 (the “December 2024 Notes”); and (iii) Notes having an aggregate principal amount of $56,363,750 bearing interest at 7.75% per annum and maturing December 30, 2024 (the “2025 Notes”). The Notes were sold in underwritten public offerings, were issued in denomination of $25.00 each and are listed on the NYSE American and trade under the symbol “SCCB”, “SACC” and “SCCC”, respectively. All the notes were issued at par except for the last tranche of the 2025 Notes, in the original principal amount of $28 million, which were issued at $24.75 each. Interest on the Notes is payable quarterly on each March 30, June 30, September 30 and December 30 that they are outstanding. So long as the Notes are outstanding, the Company is prohibited from making distributions in excess of 90% of its taxable income, incurring any additional indebtedness or purchasing any shares of its capital stock unless it has an “Asset Coverage Ratio” of at least 150% after giving effect to the payment of such dividend, the incurrence of such indebtedness or the application of the net proceeds, as the case may be. The Company may redeem the Notes, in whole or in part, without premium or penalty, at any time after their second anniversary of issuance upon at least 30 days prior written notice to the holders of the Notes. The redemption price will be equal to the outstanding principal amount of the Notes redeemed plus the accrued but unpaid interest thereon up to, but not including the date of redemption. The June 2024 Notes are currently callable, the December 2024 Notes will be callable at any time after November 7, 2021 and the 2025 Notes will be callable at any time after September 4, 2022. Wells Fargo Margin Line of Credit At June 30, 2021, the Company had a total outstanding balance of $34,276,418 under the margin loan account from Wells Fargo, which is secured by the Company’s portfolio of short-term securities. The credit line bears interest at a rate equal to 1.75% below the prime rate (1.5% at June 30, 2021). ​

Other Income

Other Income	6 Months Ended
	Jun. 30, 2021
Other Income
Other Income	7. Other income For the three and six-month periods ended June 30, 2021 and 2020, other income consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ​ Six Months ​ ​ ended June 30, ​ ended June 30, ​ 2021 2020 2021 2020 Income on borrower charges ​ $ 251,387 ​ $ 72,083 ​ $ 335,878 ​ $ 158,532 Lender, modification and extension fees ​ 234,163 ​ 145,529 ​ 540,305 ​ 277,803 In-house legal fees ​ 54,500 ​ 51,200 ​ 111,800 ​ 102,350 Other income ​ 3,371 ​ 14,197 ​ 12,247 ​ 28,598 Total ​ $ 543,421 ​ $ 283,009 ​ $ 1,000,230 ​ $ 567,283 ​

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies
Commitments and Contingencies	8. Commitments and Contingencies Origination Fees Loan origination fees consist of points, generally 2%-5% of the original loan principal. These payments are amortized over the life of the loan for financial statement purposes. Original maturities of deferred revenue are as follows as of: ​ ​ ​ ​ ​ June 30, ​ ​ 2021 ​ $ 1,349,433 2022 ​ ​ 853,530 2023 ​ 27,069 2024 ​ 403 Total ​ $ 2,230,435 ​ In instances in which mortgages are repaid before their maturity date, the balance of any unamortized deferred revenue is recognized in full at the time of repayment. Unfunded Commitments Most loans are funded in full at closing. However, where all or a portion of the loan proceeds are to be used to fund the costs of renovating or constructing improvements on the property, only a portion of the loan may be funded at closing. At June 30, 2021, the Company’s mortgage loan portfolio included 130 loans with future funding obligations, in the aggregate principal amount of $31,845,533. Advances under these loans are funded against requests supported by all required documentation (including lien waivers) as and when needed to pay contractors and other costs of construction. Other In the normal course of its business, the Company is named as a party-defendant because it is a mortgagee having interests in real properties that are being foreclosed upon, usually because the owner failed to pay property taxes. The Company actively monitors these actions and, in all cases, believes there remains sufficient value in the subject property to assure that no loan impairment exists. At June 30, 2021, there were 7 such properties, representing approximately $834,000 in mortgages receivable.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2021
Related Party Transactions
Related Party Transactions	9. Related Party Transactions In the ordinary course of business, the Company may originate, fund, manage and service loans to shareholders. The underwriting process on these loans is consistent with Company policy. The terms of such loans, including the interest rate, income, origination fees and other closing costs are the same as those applicable to loans made to unrelated third parties in the portfolio. As of June 30, 2021, and 2020, loans to known shareholders totaled $10,153,291 and $6,141,356, respectively. Interest income earned on these loans for the six months ended June 30, 2021 and 2020 totaled $416,965 and $344,385, respectively, and for the three months ended June 30, 2021 and 2020 totaled $246,006 and $168,414, respectively. For the six-month periods ended June 30, 2021 and 2020, the wife of the Company’s chief executive officer was paid $56,385 and $50,000, respectively, for accounting and financial reporting services provided to the Company. For the three months ended June 30, 2021 and 2020, the corresponding amounts were $28,206 and $25,000, respectively.

Concentration of Credit Risk

Concentration of Credit Risk	6 Months Ended
	Jun. 30, 2021
Concentration of Credit Risk
Concentration of Credit Risk	10. Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents and mortgage loans. The Company maintains its cash and cash equivalents with various financial institutions. Accounts at the financial institution are insured by the Federal Deposit Insurance Corporation up to $250,000. The Company is potentially subject to concentration of credit risk in its investment securities. Currently, all of its investment securities, which include common stocks, preferred stock, corporate bonds and mutual funds, are held at Wells Fargo Advisors. Wells Fargo Advisors is a member of the Securities Investor Protection Corporation (SIPC). SIPC protects clients against the custodial risk of a member investment firm becoming insolvent by replacing missing securities and cash up to $500,000, including up to $250,000 in cash, per client in accordance with SIPC rules. The Company makes loans that are secured by first mortgage liens on real property located primarily (approximately 66.75%) in Connecticut. This concentration of credit risk may be affected by changes in economic or other conditions of the geographic area. Credit risks associated with the Company’s mortgage loan portfolio and related interest receivable are described in Note 4 - Mortgages Receivable.

Equity Offerings

Equity Offerings	6 Months Ended
	Jun. 30, 2021
Equity Offerings
Equity Offerings	11. Equity Offerings On April 9, 2021, the Company filed a prospectus supplement to its Form S-3 Registration Statement covering the sale of up to $43,636,250 of its common shares in an at-the-market offering. ​ During the six-month period ended June 30, 2021, the Company sold an aggregate of 4,513,731 common shares and realized net proceeds of $22,878,849 . On June 23, 2021, the Company entered into an underwriting agreement with respect to a firm commitment underwritten public offering of up to 1,955,000 shares (including 255,000 shares to cover overallotments) of the Company’s 7.75% Series A Cumulative Redeemable Preferred Stock, par value $0.001 per share (the “Series A Preferred Stock”), at a public offering price of $25.00 per share, equal to the liquidation preference (the “Series A Offering”). The Series A Offering was made pursuant to a prospectus supplement, dated June 23, 2021, to the Company’s shelf registration statement on Form S-3 declared effective by the U.S. Securities and Exchange Commission (the “SEC”) on June 17, 2021, and the base prospectus included in such registration statement. On June 29, 2021, the Company consummated the sale of 1,700,000 shares of Series A Preferred Stock for an aggregate purchase price of $42.5 million. Another 203,000 shares were sold on July 2, 2021 after the underwriters exercised their over-allotment option. Total gross proceeds from the offering were $47.6 million and net proceeds from the sale, after paying underwriting discounts and commissions and other offering expenses, were approximately $45.4 million (See Notes 14 and 15.)

Partnership Investment

Partnership Investment	6 Months Ended
	Jun. 30, 2021
Partnership Investment
Partnership Investment	12. Partnership Investment On February 22, 2021, the Company committed to $3 million in an investment partnership, or approximately a 7.6% ownership interest in the partnership as of the commitment date. The partnership is a commercial real estate finance company with a focus on providing debt capital solutions to local and regional commercial real estate owners in the Northeastern United States. As of June 30, 2021, the Company’s outstanding investment totaled approximately

Special Purpose Acquisition Cor

Special Purpose Acquisition Corporation	6 Months Ended
	Jun. 30, 2021
Special Purpose Acquisition Corporation
Special Purpose Acquisition Corporation	13. Special Purpose Acquisition Corporation ​ On March 24, 2021, the Company loaned $25,000 to its wholly-owned subsidiary, Sachem Sponsor LLC. Sachem Sponsor used those funs to purchase

Series A Preferred Stock

Series A Preferred Stock	6 Months Ended
	Jun. 30, 2021
Series A Preferred Stock
Series A Preferred Stock	14. Series A Preferred Stock On June 25, 2021, the Company filed a Certificate of Amendment with the Department of State of the State of New York to designate 1,955,000 shares of the Company’s authorized preferred shares, par value $0.001 per share, as shares of Series A Preferred Stock with the powers, designations, preferences and other rights as set forth therein (the “Certificate of Amendment”). The Certificate of Amendment provides that the Company will pay quarterly cumulative dividends on the Series A Preferred Stock, in arrears, on the 30th day of each of September, December, March and June from, and including, the date of original issuance of the Series A Preferred Stock at 7.75% of the $25.00 per share liquidation preference per annum (equivalent to $1.9375 per annum per share). The Series A Preferred Stock will not be redeemable before June 29, 2026, except upon the occurrence of a Change of Control (as defined in the Certificate of Amendment). On or after June 29, 2026, the Company may, at its option, redeem any or all of the shares of the Series A Preferred Stock at $25.00 per share plus any accumulated and unpaid dividends to, but not including, the redemption date. Also, upon the occurrence of a Change of Control, the Company may, at its option, redeem any or all of the shares of Series A Preferred Stock within 120 days after the first date on which such Change of Control occurred at $25.00 per share plus any accumulated and unpaid dividends to, but not including, the redemption date. The Series A Preferred Stock has no stated maturity, is not subject to any sinking fund or mandatory redemption and will remain outstanding indefinitely unless repurchased or redeemed by the Company or converted into common shares in connection with a Change of Control by the holders of Series A Preferred Stock. Upon the occurrence of a Change of Control, each holder of Series A Preferred Stock will have the right (subject to the Company’s election to redeem the Series A Preferred Stock in whole or in part, as described above, prior to the Change of Control Conversion Date (as defined in the Certificate of Amendment) to convert some or all of the Series A Preferred Stock held by such holder on the Change of Control Conversion Date into a number of the common shares per share of Series A Preferred Stock determined by formula, in each case, on the terms and subject to the conditions described in the Certificate of Amendment, including provisions for the receipt, under specified circumstances, of alternative consideration as described in the Certificate of Amendment. Except under limited circumstances, holders of the Series A Preferred Stock generally do not have any voting rights.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2021
Subsequent Events
Subsequent Events	15. Subsequent Events On July 1, 2021, the Underwriters partially exercised their overallotment option to purchase an additional 203,000 shares of Series A Preferred Stock, which was consummated on July 2, 2021, raising an additional approximately $5.1 million in gross proceeds and additional approximately $4.9 million in net proceeds (after deducting underwriting discounts and commissions and offering expenses). The aggregate net proceeds from the Series A Offering, including the proceeds from the Overallotment Option exercise was approximately $45.4 million. On July 21, 2021, the Company consummated a $200 million master repurchase financing facility (“Facility”) with Churchill MRA Funding I LLC (“Churchill”), a subsidiary of Churchill Real Estate, a vertically integrated real estate finance company based in New York, New York. Under the terms of the Facility between the Company and Churchill, the Company has the right, but not the obligation, to sell mortgage loans to Churchill, and Churchill has the right, but not the obligation, to purchase those loans. The cost of capital under the Facility is equal to the sum of (a) the greater of (i) 0.25% and (ii) the 30-day LIBOR plus (b) 3%-4%, depending on the aggregate principal amount of the mortgage loans held by Churchill at that time. The Company intends to use the proceeds from the Facility to finance the continued expansion of its lending business and for general corporate purposes. On July 14, 2021, Sachem Acquisition Corp. filed a registration statement on Form S-1 registering the sale of 5,750,000 units at $10.00 per unit, or $57,500,000 in the aggregate. Each unit consists of one share of Class A common stock and one-half of a warrant to purchase one share of Class A common stock. The registration statement is currently under SEC review. (See Note 13.) On July 30, 2021, the Company sold a property classified as real estate held for sale at June 30, 2021 receiving $180,491 in net proceeds. The Company had previously recorded an impairment loss of $62,000. From July 1, 2021 through August 9, 2021, the Company sold 1,582,717 of its common shares in an at-the-market offering which raised $8,014,203 in net proceeds. (See Note 11.)

COVID-19

COVID-19	6 Months Ended
	Jun. 30, 2021
COVID-19
COVID-19	16. COVID-19 The COVID-19 pandemic has resulted in a widespread health crisis that has adversely affected the economies and financial markets worldwide and has materially and adversely affected many businesses. In response to the onset of the COVID-19 pandemic and the restrictions imposed by various states, including the State of Connecticut, to prevent, or at least reduce the risk of the spread of the virus, at the end of the first quarter of 2020 the Company adopted certain temporary programs, policies and guidelines designed primarily to preserve its liquidity, help its borrowers and protect its employees. In particular, the Company adopted a “forbearance” program to help borrowers that were unable to meet their financial obligations due to COVID-19. In addition, to preserve its capital, the Company imposed a moratorium on funding new loans other than from proceeds generated from pay-offs of existing loans. Finally, the Company imposed stricter lending criteria on new loans. By the beginning of the third quarter of 2020, it appeared that economic conditions had stabilized to the point that the Company was able to cancel the forbearance program, restart its lending operations and return to its normal underwriting criteria. Over the course of 2020 and into early 2021, the U.S. Congress has authorized over $4.0 trillion of stimulus payments to small businesses and individuals adversely impacted by COVID-19. In addition, the Federal Reserve Board has maintained its accommodative monetary policy. Finally, since December 2020, the U.S. Food and Drug Administration (“FDA”) has issued emergency use authorizations for three COVID-19 vaccines. As of July 24, 2021, approximately 342 million doses of vaccines have been administered in the United States and over 163 million (or 49.7 percent) of people in the United States are fully vaccinated. In Connecticut, approximately 4.6 million doses of vaccines have been administered and over 2.2 million (or 62.9 percent) of the state's population are fully vaccinated. As a result, many states have issued new orders relaxing or even eliminating many of the restrictions on social gatherings and businesses that were intended to stem the spread of the virus. The combination of these factors – stimulus, monetary easing and vaccination roll-out, appears to be having a positive impact on general economic conditions. In addition, interest rates remain low and markets are liquid. As a result, real estate values have stabilized and the Company has not experienced any significant increase in defaults. Notwithstanding the foregoing, there are still concerns regarding mutations of the virus that might not be susceptible to the existing vaccines and there is still a significant portion of the worldwide population, including in the U.S., that is not vaccinated. If continuing concerns relating to the COVID-19 pandemic limit our ability to have meetings with potential borrowers, or our borrower’s ability to source materials and services to complete construction in process, the Company’s business and operations could be adversely impacted. The extent to which COVID-19 impacts the Company’s business and operations will depend on future developments, which are highly uncertain and cannot be predicted, including new information which may emerge concerning the severity of COVID-19 and the actions to contain COVID-19 or treat its impact, among others. If the disruptions posed by COVID-19 or other matters of global concern continue for an extensive period of time, the Company’s business, operations and financial condition may be materially adversely affected.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2021
Significant Accounting Policies
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management will base the use of estimates on (a) various assumptions that consider its experience, (b) the Company’s projections regarding future operations and (c) general financial market and local and general economic conditions. Actual amounts could differ from those estimates.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all demand deposits, cashier’s checks, money market accounts and certificates of deposit with an original maturity of three months or less to be cash equivalents. The Company maintains its cash and cash equivalents at various financial institutions. The combined account balances typically exceed the Federal Deposit Insurance Corporation insurance coverage, and, as a result, there is a concentration of credit risk related to amounts on deposit. The Company does not believe that the risk is significant.
Allowance for Loan Loss	Allowance for Loan Loss The Company reviews each loan on a quarterly basis and evaluates the borrower’s ability to pay the monthly interest, the borrower’s likelihood of executing the original exit strategy and the loan-to-value (LTV) ratio. Based on the analysis, management determines if any provisions for impairment of loans should be made and whether any loan loss reserves are required.
Fair Value Measurements	Fair Value Measurements The framework for measuring fair value provides a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: Level 1 Level 2 ● quoted prices for similar assets or liabilities in active markets; ● quoted prices for identical or similar assets or liabilities in inactive markets; ● inputs other than quoted prices that are observable for the asset or liability; and ● inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (i.e., Level 3
Property and Equipment	Property and Equipment Land and building acquired in December 2016 to serve as the Company’s office facilities is stated at cost. The building is being depreciated using the straight-line method over its estimated useful life of 40 years. Expenditures for repairs and maintenance are charged to expense as incurred.
Impairment of long-lived assets	Impairment of long-lived assets The Company continually monitors events or changes in circumstances that could indicate carrying amounts of long-lived assets may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether the carrying value of such assets will be recovered through undiscounted expected future cash flows. If the total of the undiscounted cash flows is less than the carrying amount of these assets, the Company recognizes an impairment loss based on the excess of the carrying amount over the fair market value of the assets.
Deferred Financing Costs	Deferred Financing Costs Costs incurred by the Company in connection with public offerings of its unsecured, unsubordinated notes, described in Note 6 - Notes Payable -- are being amortized over the term of the respective Notes.
Revenue Recognition	Revenue Recognition Interest income from the Company’s loan portfolio is earned over the loan period and is calculated using the simple interest method on principal amounts outstanding. Generally, the Company's loans provide for interest to be paid monthly in arrears. The Company does not accrue interest income on mortgages receivable that are more than 90 days past due. Interest income not accrued at June 30, 2021 and collected prior to the issuance of these financial statements is included in June 30, 2021 income. Origination fee revenue, generally 2%- 5% of the original loan principal amount, is collected at loan funding and is recognized ratably over the contractual life of the loan in accordance with ASC 310.
Income Taxes	Income Taxes The Company believes it qualifies as a Real Estate Investment Trust (REIT) for federal income tax purposes and made the election to be taxed as a REIT when it filed its 2017 federal income tax return. As a REIT, the Company is required to distribute at least 90% of its taxable income to its shareholders on an annual basis. The Company’s qualification as a REIT depends on its ability to meet on a continuing basis, through actual investment and operating results, various complex requirements under the Internal Revenue Code of 1986, as amended, relating to, among other things, the sources of its income, the composition and values of its assets, its compliance with the distribution requirements applicable to REITs and the diversity of ownership of its outstanding common shares. So long as it qualifies as a REIT, the Company, generally, will not be subject to U.S. federal income tax on its taxable income distributed to its shareholders. However, if it fails to qualify as a REIT in any taxable year and does not qualify for certain statutory relief provisions, it will be subject to U.S. federal income tax at regular corporate rates and may also be subject to various penalties and may be precluded from re-electing REIT status for the four taxable years following the year during in which it lost its REIT qualification. The Company follows the provisions of FASB ASC Topic 740-10 “Accounting for Uncertainty in Income Taxes”, which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and disclosure required. Under this standard, an entity may only recognize or continue to recognize tax positions that meet a “more likely than not” threshold. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in interest expense. The Company has determined that there are no uncertain tax positions requiring accrual or disclosure in the accompanying financial statements as of June 30, 2021.
Earnings Per Share	Earnings Per Share Basic and diluted earnings per share are calculated in accordance with ASC 260 “Earnings Per Share”. Under ASC 260, basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. The computation of diluted earnings per share is similar to basic earnings per share, except that the denominator is increased to include the potential dilution from the exercise of stock options and warrants for common shares using the treasury stock method. The numerator in calculating both basic and diluted earnings per common share for each period is the reported net income.
Recent Accounting Pronouncements	Recent Accounting Pronouncements Management does not believe that any other recently issued, but not yet effected, accounting standards if currently adopted would have a material effect on the Company’s financial statements.
Unaudited Financial Statements	Unaudited Financial Statements The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying unaudited financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2020 and the notes thereto included in the Company’s Annual Report on Form 10-K. Results of operations for the interim periods are not necessarily indicative of the operating results to be attained in the entire fiscal year.

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Measurement
Summary of company's assets at fair value	The following table sets forth by Level, within the fair value hierarchy, the Company’s assets at fair value as of June 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Stocks and ETFs ​ $ 3,145,774 ​ $ — ​ $ — ​ $ 3,145,774 Fixed and Preferred Securities ​ ​ 41,314,792 ​ ​ — ​ ​ — ​ ​ 41,314,792 Mutual Funds ​ ​ 41,701 ​ — ​ — ​ ​ 41,701 Total Investments ​ $ 44,502,267 ​ ​ — ​ ​ — ​ $ 44,502,267 Real Estate Owned ​ ​ ​ $ 7,892,845 ​ $ 7,892,845 ​

Mortgages Receivable (Tables)

Mortgages Receivable (Tables)	6 Months Ended
	Jun. 30, 2021
Mortgages Receivable
Schedule of credit risk profile	Credit risk profile based on loan activity as of June 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding Mortgages Receivable Residential Commercial Land Mixed Use Mortgages June 30, 2021 ​ $ 104,918,519 ​ $ 46,809,361 ​ $ 11,900,941 ​ $ 9,165,154 ​ $ 172,793,975 December 31, 2020 ​ $ 112,240,129 ​ $ 33,548,683 ​ $ 6,111,670 ​ $ 3,715,818 ​ $ 155,616,300
Schedule of maturities of mortgage loans receivable	The following are the maturities of mortgages receivable as of June 30: ​ ​ ​ ​ ​ 2021 $ 67,900,778 2022 ​ 92,695,010 2023 ​ 11,787,347 2024 and thereafter ​ 410,840 ​ ​ $ 172,793,975

Other Income (Tables)

Other Income (Tables)	6 Months Ended
	Jun. 30, 2021
Other Income
Schedule of other income	For the three and six-month periods ended June 30, 2021 and 2020, other income consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ​ Six Months ​ ​ ended June 30, ​ ended June 30, ​ 2021 2020 2021 2020 Income on borrower charges ​ $ 251,387 ​ $ 72,083 ​ $ 335,878 ​ $ 158,532 Lender, modification and extension fees ​ 234,163 ​ 145,529 ​ 540,305 ​ 277,803 In-house legal fees ​ 54,500 ​ 51,200 ​ 111,800 ​ 102,350 Other income ​ 3,371 ​ 14,197 ​ 12,247 ​ 28,598 Total ​ $ 543,421 ​ $ 283,009 ​ $ 1,000,230 ​ $ 567,283

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies
Schedule of original maturities of deferred revenue	Original maturities of deferred revenue are as follows as of: ​ ​ ​ ​ ​ June 30, ​ ​ 2021 ​ $ 1,349,433 2022 ​ ​ 853,530 2023 ​ 27,069 2024 ​ 403 Total ​ $ 2,230,435

The Company (Details)

The Company (Details)	6 Months Ended
	Jun. 30, 2021
Minimum
Debt term (in years)	1 year
Maximum
Debt term (in years)	3 years

Significant Accounting Polici_3

Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Gain (Loss) on Extinguishment of Debt	$ 257,845	$ 0	$ 257,845	$ 0
Land and Building [Member]
Property, Plant and Equipment, Useful Life			40 years
Minimum
Origination fee revenue as a percentage of original loan principal amount			2.00%
Maximum
Origination fee revenue as a percentage of original loan principal amount			5.00%

Fair Value Measurement (Details

Fair Value Measurement (Details)	Jun. 30, 2021USD ($)
Fair Value Measurement
Stocks and ETF's	$ 3,145,774
Fixed and Preferred Securities	41,314,792
Mutual Funds	41,701
Total Investments	44,502,267
Real Estate Owned	7,892,845
Level 1
Fair Value Measurement
Stocks and ETF's	3,145,774
Fixed and Preferred Securities	41,314,792
Mutual Funds	41,701
Total Investments	44,502,267
Level 2
Fair Value Measurement
Stocks and ETF's	0
Fixed and Preferred Securities	0
Mutual Funds	0
Total Investments	0
Level 3
Fair Value Measurement
Stocks and ETF's	0
Fixed and Preferred Securities	0
Mutual Funds	0
Total Investments	0
Real Estate Owned	$ 7,892,845

Mortgages Receivable (Details)

Mortgages Receivable (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	$ 172,793,975	$ 155,616,300
Land [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	11,900,941	6,111,670
Residential Mortgage [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	104,918,519	112,240,129
Commercial Loan [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	46,809,361	33,548,683
Mixed Use [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	$ 9,165,154	$ 3,715,818

Mortgages Receivable - Maturiti

Mortgages Receivable - Maturities of mortgage loans (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Mortgages Receivable
2021	$ 67,900,778
2022	92,695,010
2023	11,787,347
2024 and thereafter	410,840
Total	$ 172,793,975	$ 155,616,300

Mortgages Receivable - Addition

Mortgages Receivable - Additional information (Details)	6 Months Ended
	Jun. 30, 2021USD ($)loan	Jun. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Mortgage Loans on Real Estate, Default Interest Rate	18.00%
Payments to Acquire Mortgage Receivable	$ 75,190,172	$ 42,303,747
Proceeds from Collection of Mortgages Receivable	58,012,498	25,417,062
Mortgages receivable	$ 172,793,975		$ 155,616,300
Mortgage loan portfolio number of loans | loan	477
Mortgage loan portfolio number of loans in process of foreclosure | loan	12
Mortgage Concentration Risk [Member] | Revenue Benchmark
Threshold Used For Calculating Concentration Of Risk	10.00%
Mortgages [Member]
Payments to Acquire Mortgage Receivable	$ 75,190,172	$ 42,303,747
Minimum
Debt term (in years)	1 year
Interest rate (as a percent)	5.00%
Maximum
Debt term (in years)	3 years
Mortgage Loans on Real Estate, Face Amount of Mortgages	$ 9,800,000
Interest rate (as a percent)	13.00%
Twelve Mortgage Loans [Member]
Mortgages receivable	$ 2,630,000

Real Estate Owned - Additional

Real Estate Owned - Additional information (Details) - USD ($)	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Real Estate Owned
Real Estate Investment Property, at Cost		$ 7,892,845		$ 7,892,845		$ 8,861,609
Rental Properties		986,975		986,975
Real Estate Held-for-sale		6,905,870		6,905,870
Loss on sale of real estate	$ (14,962)
Proceeds from sale of real estate owned	$ 280,000			919,014	$ 1,762,775
Impairment loss on real estate owned		$ 294,000	$ 245,000	$ 319,000	$ 495,000

Notes Payable and Line of Cre_2

Notes Payable and Line of Credit (Details)	Jun. 30, 2021USD ($)$ / shares	Jun. 30, 2021USD ($)$ / shares	Dec. 31, 2020USD ($)
Number of unsecured unsubordinated notes		3
Threshold percentage of taxable income to prohibit distribution		90.00%
Threshold asset coverage ratio		150.00%
Period of written notice to redeem notes without premium or penalty		30 days
Debt Issuance Costs, Net	$ 4,383,186	$ 4,383,186	$ 4,866,058
Long-term Line of Credit	34,276,418	34,276,418	$ 28,055,648
Notes
Aggregate amount outstanding	110,143,564	110,143,564
Debt Issuance Costs, Net	4,383,186	4,383,186
June 2024 Notes
Aggregate amount outstanding	$ 23,663,000	$ 23,663,000
Interest rate	7.125%	7.125%
Notes issued denomination | $ / shares	$ 25	$ 25
December 2024 Notes
Aggregate amount outstanding	$ 34,500,000	$ 34,500,000
Interest rate	6.875%	6.875%
December 2025 Notes
Aggregate amount outstanding	$ 56,363,750	$ 56,363,750
Original principal amount	$ 28,000,000	$ 28,000,000
Interest rate	7.75%	7.75%
Notes issued denomination | $ / shares	$ 24.75	$ 24.75
Credit line from Wells Fargo
Long-term Line of Credit	$ 34,276,418	$ 34,276,418
Interest rate (as a percent)	1.50%	1.75%

Other Income (Details)

Other Income (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Income
Income from borrower charges	$ 251,387	$ 72,083	$ 335,878	$ 158,532
Lender, modification and extension fees	234,163	145,529	540,305	277,803
In-house legal fees	54,500	51,200	111,800	102,350
Other income	3,371	14,197	12,247	28,598
Total	$ 543,421	$ 283,009	$ 1,000,230	$ 567,283

Commitments and Contingencies -

Commitments and Contingencies - Original maturities of deferred revenue (Details) - Deferred Lease Revenue [Member]	Jun. 30, 2021USD ($)
Other Commitments [Line Items]
2021	$ 1,349,433
2022	853,530
2023	27,069
2024	403
Total	$ 2,230,435

Commitments and Contingencies_2

Commitments and Contingencies - Additional Information (Details)	6 Months Ended
	Jun. 30, 2021USD ($)property
Number of Mortgage Properties | property	7
Mortgages receivable	$ 834,000
Unfunded Loan Commitment [Member]
Other Commitment	$ 31,845,533
Minimum
Loan Origination Fees On Original Loan Principal, Percentage	2.00%
Maximum
Loan Origination Fees On Original Loan Principal, Percentage	5.00%

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Shareholders [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	$ 10,153,291	$ 6,141,356	$ 10,153,291	$ 6,141,356
Interest Income, Related Party	246,006	168,414	416,965	344,385
Wife of Executive Officer [Member] | Accounting and Financial Services [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 28,206	$ 25,000	$ 56,385	$ 50,000

Concentration of Credit Risk (D

Concentration of Credit Risk (Details) - Credit Concentration Risk [Member]	6 Months Ended
	Jun. 30, 2021USD ($)
Concentration Risk [Line Items]
Cash and cash equivalents insured by the Federal Deposit Insurance Corporation	$ 250,000
Concentration risk, description	SIPC protects clients against the custodial risk of a member investment firm becoming insolvent by replacing missing securities and cash up to $500,000, including up to $250,000 in cash, per client in accordance with SIPC rules.
First Mortgage Liens On Real Property
Concentration Risk [Line Items]
Threshold Used For Calculating Concentration Of Risk	66.75%

Equity Offerings (Details)

Equity Offerings (Details) - USD ($)	Jul. 02, 2021	Jun. 29, 2021	Jun. 25, 2021	Jun. 23, 2021	Apr. 09, 2021	Aug. 09, 2021	Jun. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Proceeds from issuance of common shares, net of expenses								$ 22,878,849	$ 0
Preferred Stock, Par or Stated Value Per Share							$ 0.001	$ 0.001		$ 0.001
Sales of stock							$ 21,336,384	$ 22,878,849	(58,353)
Proceeds from issuance of preferred stock, gross								$ 40,613,126	$ 0
Subsequent Events
Sale of common stock						1,582,717
Proceeds from issuance of common shares, net of expenses						$ 8,014,203
Common Shares
Sale of common stock							4,210,324	4,513,731
Sales of stock							$ 4,211	$ 4,514
Common stock issued under prospectus supplement dated October 31, 2019
Sale of common stock								4,513,731
Proceeds from issuance of common shares, net of expenses								$ 22,878,849
ATM | Common stock issued under prospectus supplement dated April 9, 2021
Authorized amount to be issued					$ 43,636,250
Series A Preferred Stock
Sale of common stock		1,700,000
Dividend rate			7.75%	7.75%
Preferred Stock, Par or Stated Value Per Share			$ 0.001	$ 0.001
Share Price			$ 25	$ 25
Sales of stock		$ 42,500,000					$ (40,613,126)	$ 40,613,126
Proceeds from issuance of preferred stock, gross	$ 47,600,000
Proceeds from issuance of preferred stock, net	45,400,000
Series A Preferred Stock | Subsequent Events
Proceeds from issuance of preferred stock, net	$ 45,400,000
Series A Preferred Stock | Maximum
Sale of common stock				1,955,000
Series A Preferred Stock | Over-Allotment Option
Sale of common stock	203,000			255,000
Series A Preferred Stock | Over-Allotment Option | Subsequent Events
Sale of common stock	203,000
Proceeds from issuance of preferred stock, gross	$ 5,100,000
Proceeds from issuance of preferred stock, net	$ 4,900,000

Partnership Investment (Details

Partnership Investment (Details) - USD ($)	Feb. 22, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Partnership Investment
Investment in partnership committed	$ 3,000,000
Ownership interest in the partnership	7.60%
Outstanding investment		$ 1,843,398		$ 1,843,398
Income from partnership investment		$ 36,868	$ 0	$ 54,241	$ 0

Special Purpose Acquisition C_2

Special Purpose Acquisition Corporation (Details) - USD ($)	Mar. 24, 2021	Jun. 30, 2021
Registration and legal fees		$ 190,000
Sachem Sponsor LLC
Loan to related party	$ 25,000
Common Class B | Sachem Sponsor LLC
Sale of common stock	1,437,500

Series A Preferred Stock (Detai

Series A Preferred Stock (Details) - $ / shares	Jun. 25, 2021	Jun. 23, 2021	Jun. 30, 2021	Dec. 31, 2020
Preferred Stock, Shares Authorized			5,000,000	5,000,000
Preferred Stock, Par or Stated Value Per Share			$ 0.001	$ 0.001
Series A Preferred Stock
Preferred Stock, Shares Authorized	1,955,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Dividend rate	7.75%	7.75%
Share Price	$ 25	$ 25
Liquidation preference per annum	1.9375
Preferred Stock, Redemption Price Per Share	$ 25
Redemption period for preference stock	120 days

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Events - USD ($)	Jul. 14, 2021	Jul. 21, 2021
Master Repurchase agreement
Subsequent Event [Line Items]
Repurchase face amount		$ 200,000,000
Cost of capital		0.25%
Class A Common Stock
Subsequent Event [Line Items]
Sale of Stock unit	5,750,000
Sale of Stock, Price Per share	$ 10
Sale of Stock,aggregate	$ 57,500,000
Maximum | Master Repurchase agreement
Subsequent Event [Line Items]
Cost of capital		4.00%
Minimum | Master Repurchase agreement
Subsequent Event [Line Items]
Cost of capital		3.00%

Subsequent Events - Equity offe

Subsequent Events - Equity offering (Details) - USD ($)	Jul. 02, 2021	Jun. 29, 2021	Jun. 23, 2021	Aug. 09, 2021	Jun. 30, 2021	Jun. 30, 2020
Subsequent Event [Line Items]
Proceeds from issuance of preferred stock, gross					$ 40,613,126	$ 0
Proceeds from issuance of common shares, net of expenses					$ 22,878,849	$ 0
Series A Preferred Stock
Subsequent Event [Line Items]
Sale of common stock		1,700,000
Proceeds from issuance of preferred stock, gross	$ 47,600,000
Proceeds from issuance of preferred stock, net	$ 45,400,000
Over-Allotment Option | Series A Preferred Stock
Subsequent Event [Line Items]
Sale of common stock	203,000		255,000
Subsequent Events
Subsequent Event [Line Items]
Sale of common stock				1,582,717
Proceeds from issuance of common shares, net of expenses				$ 8,014,203
Subsequent Events | Series A Preferred Stock
Subsequent Event [Line Items]
Proceeds from issuance of preferred stock, net	$ 45,400,000
Subsequent Events | Over-Allotment Option | Series A Preferred Stock
Subsequent Event [Line Items]
Sale of common stock	203,000
Proceeds from issuance of preferred stock, gross	$ 5,100,000
Proceeds from issuance of preferred stock, net	$ 4,900,000

Subsequent Events - Sale of pro

Subsequent Events - Sale of property (Details) - USD ($)	Jul. 30, 2021	Apr. 30, 2021	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Subsequent Event [Line Items]
Proceeds from sale of real estate owned		$ 280,000			$ 919,014	$ 1,762,775
Impairment loss on real estate owned			$ 294,000	$ 245,000	$ 319,000	$ 495,000
Subsequent Events
Subsequent Event [Line Items]
Proceeds from sale of real estate owned	$ 180,491
Impairment loss on real estate owned	$ 62,000

COVID-19 (Details)

COVID-19 (Details) $ in Trillions	6 Months Ended
	Jun. 30, 2021USD ($)
COVID-19
Stimulus payments to small businesses and individuals adversely impacted by COVID-19	$ 4