Sachem Capital (SACH) 10-Q 4 Nov 21 2021 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Nov. 03, 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	Sep. 30, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
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		29,443,218
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 ($)	Sep. 30, 2021	Dec. 31, 2020
Assets:
Cash and cash equivalents	$ 19,242,316	$ 19,408,028
Investment securities	56,080,725	37,293,703
Investment in partnership	1,804,217	0
Mortgages receivable	219,963,291	155,616,300
Interest and fees receivable	2,705,447	1,820,067
Other receivables	428,391	67,307
Due from borrowers	3,431,015	2,025,663
Prepaid expenses	85,813	71,313
Property and equipment, net	2,189,887	1,433,388
Real estate owned	6,774,522	8,861,609
Other deposits	291,191	0
Deferred financing costs, net	354,936	72,806
Total assets	313,351,751	226,670,184
Liabilities:
Notes payable (net of deferred financing costs of $4,132,355 and $4,866,058)	110,394,395	109,640,692
Mortgage payable	0	767,508
Line of credit	30,056,159	28,055,648
Accrued dividends payable	0	2,654,977
Accounts payable and accrued expenses	192,670	372,662
Other loans	0	257,845
Security deposits held	2,000	13,416
Advances from borrowers	10,031,656	1,830,539
Deferred revenue	3,879,291	2,099,331
Notes payable	37,498	54,682
Accrued interest	0	3,344
Total liabilities	154,593,669	145,750,644
Commitments and Contingencies
Shareholders' equity:
Preferred shares - $.001 par value; 5,000,000 shares authorized; 1,903,000 shares of Series A Preferred Stock issued and outstanding	1,903	0
Common stock - $.001 par value; 100,000,000 shares authorized; 28,315,930 and 22,124,801 issued and outstanding	28,316	22,125
Paid-in capital	160,279,468	83,814,376
Accumulated other comprehensive loss	(637,990)	(25,992)
Accumulated deficit	(913,615)	(2,890,969)
Total shareholders' equity	158,758,082	80,919,540
Total liabilities and shareholders' equity	$ 313,351,751	$ 226,670,184

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
BALANCE SHEETS
Deferred financing costs	$ 4,132,355	$ 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	1,903,000	1,903,000
Preferred Stock, Shares Outstanding	1,903,000	1,903,000
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	28,315,930	22,124,801
Common Stock, Shares, Outstanding	28,315,930	22,124,801

STATEMENTS OF COMPREHENSIVE INC

STATEMENTS OF COMPREHENSIVE INCOME - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenue:
Interest income from loans	$ 6,094,165	$ 3,473,304	$ 15,307,692	$ 9,640,387
Investment income	275,745	32,483	698,556	163,161
Income from partnership investment	35,983	0	90,225	0
Gain (loss) on sale of investment securities	256,418	(21,858)	212,449	415,301
Origination fees	999,287	393,097	2,348,608	1,551,652
Late and other fees	202,572	10,955	300,471	46,835
Processing fees	50,230	37,445	129,615	123,568
Rental income (loss), net	28,320	9,593	23,105	49,777
Debt Forgiveness	0	0	257,845	0
Other income	579,656	336,789	1,579,885	904,071
Total revenue	8,522,376	4,271,808	20,948,451	12,894,752
Operating costs and expenses:
Interest and amortization of deferred financing costs	2,589,847	1,262,278	7,541,536	3,564,533
Professional fees	183,503	158,206	666,431	400,868
Compensation, fees and taxes	771,373	500,165	2,175,603	1,232,733
Exchange fees	12,603	22,713	37,397	29,986
Other expenses and taxes	104,583	26,247	149,898	61,484
Depreciation	20,421	15,348	61,286	46,318
General and administrative expenses	294,981	145,251	702,897	412,677
Loss on sale of real estate	94,450	2,816	111,545	7,276
Impairment loss	150,000	0	469,000	495,000
Total operating costs and expenses	4,221,761	2,133,024	11,915,593	6,250,875
Net income	4,300,615	2,138,784	9,032,858	6,643,877
Preferred stock dividend	(913,791)	0	(932,089)	0
Net income attributable to common shareholders	3,386,824	2,138,784	8,100,769	6,643,877
Other comprehensive (loss) gain
Unrealized (loss) gain on investment securities	(500,188)	(72,785)	(611,998)	13,282
Comprehensive income	$ 2,886,636	$ 2,065,999	$ 7,488,771	$ 6,657,159
Basic and diluted net income per common share outstanding:
Basic	$ 0.12	$ 0.10	$ 0.32	$ 0.30
Diluted	$ 0.12	$ 0.10	$ 0.32	$ 0.30
Weighted average number of common shares outstanding:
Basic	27,973,249	22,117,301	24,968,885	22,117,301
Diluted	27,977,095	22,117,301	24,972,837	22,117,301

STATEMENTS OF CHANGES IN SHAREH

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	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 Stock, net of expenses			(58,353)			(58,353)
Stock based compensation			12,321			12,321
Unrealized gain on marketable securities				13,282		13,282
Dividends paid on Common stock					(5,308,152)	(5,308,152)
Dividends paid on Preferred Stock						0
Net income					6,643,877	6,643,877
Balance at Sep. 30, 2020		$ 22,117	83,810,276	(37,596)	68,996	83,863,793
Balance (in shares) at Sep. 30, 2020		22,117,301
Beginning balance at Jun. 30, 2020		$ 22,117	83,806,169	35,189	584,288	84,447,763
Beginning balance (in shares) at Jun. 30, 2020		22,117,301
Stock based compensation			4,107			4,107
Unrealized gain on marketable securities				(72,785)		(72,785)
Dividends paid on Common stock					(2,654,076)	(2,654,076)
Dividends paid on Preferred Stock						0
Net income					2,138,784	2,138,784
Balance at Sep. 30, 2020		$ 22,117	83,810,276	(37,596)	68,996	83,863,793
Balance (in shares) at Sep. 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 Preferred Stock, net of expenses	$ 1,903		45,460,723			45,462,626
Issuance of Preferred Stock, net of expenses (in shares)	1,903,000
Issuance of Common Stock, net of expenses		$ 6,097	30,877,831			30,883,928
Issuance of Common Stock, net of expenses (in shares)		6,096,448
Stock based compensation		$ 94	126,538			126,632
Stock based compensation (in shares)		94,681
Unrealized gain on marketable securities				(611,998)		(611,998)
Dividends paid on Common stock					(6,123,415)	(6,123,415)
Dividends paid on Preferred Stock					(932,089)	(932,089)
Net income					9,032,858	9,032,858
Balance at Sep. 30, 2021	$ 1,903	$ 28,316	160,279,468	(637,990)	(913,615)	158,758,082
Balance (in shares) at Sep. 30, 2021	1,903,000	28,315,930
Beginning balance at Jun. 30, 2021	$ 1,700	$ 26,733	147,362,456	(137,802)	(963,683)	146,289,404
Beginning balance (in shares) at Jun. 30, 2021	1,700,000	26,733,213
Issuance of Preferred Stock, net of expenses	$ 203		4,849,297			4,849,500
Issuance of Preferred Stock, net of expenses (in shares)	203,000
Issuance of Common Stock, net of expenses		$ 1,583	8,003,496			8,005,079
Issuance of Common Stock, net of expenses (in shares)		1,582,717
Stock based compensation			64,219			64,219
Unrealized gain on marketable securities				(500,188)		(500,188)
Dividends paid on Common stock					(3,336,756)	(3,336,756)
Dividends paid on Preferred Stock					(913,791)	(913,791)
Net income					4,300,615	4,300,615
Balance at Sep. 30, 2021	$ 1,903	$ 28,316	$ 160,279,468	$ (637,990)	$ (913,615)	$ 158,758,082
Balance (in shares) at Sep. 30, 2021	1,903,000	28,315,930

STATEMENTS OF CASH FLOW

STATEMENTS OF CASH FLOW - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 9,032,858	$ 6,643,877
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization of deferred financing costs and bond discount	839,418	357,497
Write-off of deferred financing costs	72,806	0
Depreciation expense	61,286	46,318
Stock based compensation	126,538	12,321
Impairment loss	469,000	495,000
Loss on sale of real estate	111,545	7,276
Gain on sale of marketable securities	(212,449)	(415,301)
Debt Forgiveness	(257,845)	0
(Increase) decrease in:
Interest and fees receivable	(885,380)	(180,335)
Other receivables	(361,084)	54,090
Due from borrowers	(1,405,352)	(273,202)
Prepaid expenses	(14,500)	(82,082)
Deposits on property and equipment	0	(100,530)
(Decrease) increase in:
Accrued interest	(3,344)	77,256
Accounts payable and accrued expenses	(179,992)	272,574
Deferred revenue	1,779,960	(91,019)
Advances from borrowers	8,201,117	565,706
Total adjustments	8,341,724	745,569
NET CASH PROVIDED BY OPERATING ACTIVITIES	17,374,582	7,389,446
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of investment securities	(160,896,229)	(37,216,177)
Proceeds from the sale of investment securities	141,709,658	25,905,769
Purchase of interest in investment partnership, net	(1,804,217)	0
Proceeds from sale of real estate owned	1,839,977	1,816,522
Acquisitions of and improvements to real estate owned	(333,435)	(1,584,300)
Purchase of property and equipment	(817,785)	(118,364)
Security deposits held	(11,416)	5,616
Principal disbursements for mortgages receivable	(154,810,007)	(68,029,798)
Principal collections on mortgages receivable	90,463,016	37,859,270
Costs in connection with investment activities	(281,191)	0
NET CASH USED FOR INVESTING ACTIVITIES	(84,941,629)	(41,361,462)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from line of credit	2,000,511	12,080,569
Repayment of mortgage payable	(767,508)	(12,296)
Principal payments on notes payable	(17,184)	(15,303)
Dividends paid on Common Stock	(8,778,392)	(5,308,152)
Dividends paid on Preferred Stock	(932,089)	0
Financing costs incurred	(450,651)	(108,353)
Proceeds from other loans	0	257,845
Proceeds from issuance of common shares, net of expenses	30,884,022	0
Proceeds from issuance of Series A Preferred Stock, net of expenses	45,462,626	0
Gross proceeds from issuance of fixed rate notes	0	14,363,750
Financing costs incurred in connection with fixed rate notes	0	(743,908)
NET CASH PROVIDED BY FINANCING ACTIVITIES	67,401,335	20,514,152
NET DECREASE IN CASH AND CASH EQUIVALENTS	(165,712)	(13,457,864)
CASH AND CASH EQUIVALENTS- BEGINNING OF YEAR	19,408,028	18,841,937
CASH AND CASH EQUIVALENTS - END OF PERIOD	19,242,316	5,384,073
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION
Interest paid	$ 6,745,109	$ 2,093,080

STATEMENTS OF CASH FLOW (Parent

STATEMENTS OF CASH FLOW (Parenthetical)	Sep. 30, 2020USD ($)
STATEMENTS OF CASH FLOW
Real estate acquired in connection with the foreclosure of certain mortgages, inclusive of interest and other fees receivable	$ 170,383

The Company

The Company	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 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. Consolidations The consolidated financial statements of the Company include the accounts of all subsidiaries in which the Company has control over significant operating, financial and investing decisions of the entity. All intercompany accounts and transactions have been eliminated. 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 Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“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 and Line of Credit-- 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 more than 90 days in arrears. Interest income not accrued at September 30, 2021 and collected prior to the issuance of these financial statements is included in September 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 elected to be taxed as a Real Estate Investment Trust (REIT) for federal income tax purposes 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 September 30, 2021. Earnings Per Share Basic and diluted earnings per share are calculated in accordance with FASB ASC 260 “Earnings Per Share”. Under FASB 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 recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company’s financial statements.

Fair Value Measurement

Fair Value Measurement	9 Months Ended
	Sep. 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 September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Stocks and ETFs ​ $ 15,273,970 ​ $ — ​ $ — ​ $ 15,273,970 Fixed and Preferred Securities ​ ​ 3,906,670 ​ ​ — ​ ​ — ​ ​ 3,906,670 Mutual Funds ​ ​ 36,900,085 ​ — ​ — ​ ​ 36,900,085 Total Investments ​ $ 56,080,725 ​ ​ — ​ ​ — ​ $ 56,080,725 Real Estate Owned ​ ​ ​ $ 6,774,522 ​ $ 6,774,522 Investment in Partnership ​ ​ ​ ​ ​ ​ ​ $ 1,804,217 ​ ​ ​ ​ 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	9 Months Ended
	Sep. 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 nine-month periods ended September 30 , 2021 and 2020, the aggregate amounts of loans funded by the Company were $154,810,007 and $68,029,798 , respectively, offset by principal repayments of $90,463,016 and $37,859,270 , respectively. At September 30 , 2021, the Company’s portfolio included loans with outstanding principal balances up to approximately $16.7 million, with stated interest rates ranging from 5.0% to 14.2% and a default interest rate for non-payment of 18% . 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 September 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding Mortgages Receivable Residential Commercial Land Mixed Use Mortgages September 30, 2021 ​ $ 135,875,193 ​ $ 57,635,307 ​ $ 13,478,355 ​ $ 12,974,436 ​ $ 219,963,291 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 September 30: ​ ​ ​ ​ ​ 2021 $ 48,408,254 2022 ​ 150,388,034 2023 ​ 18,578,880 2024 ​ 2,325,000 2025 and thereafter ​ ​ 263,123 ​ ​ $ 219,963,291 ​ At September 30, 2021, of the 493 mortgage loans in the Company’s portfolio, 17 were the subject of foreclosure proceedings. The aggregate outstanding balances due on these loans as of September 30, 2021, including unpaid principal, accrued but unpaid interest and borrower fees, was approximately $6.2 million. In the case of each of these loans, the Company believes the value of the collateral exceeds the total amount due. At September 30, 2021, we had one borrower whose outstanding loans, in the aggregate principal amount of $22.3 million, represented 10.2% of our mortgage loan portfolio.

Real Estate Owned

Real Estate Owned	9 Months Ended
	Sep. 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 September 30, 2021, and December 31, 2020, real estate owned totaled $6,774,522 and $8,861,609, respectively. As of September 30, 2021, real estate owned included $916,325 of real estate held for rental and $5,858,197 of real estate held for sale. In the first nine-months of 2021, the Company recorded an impairment loss and loss on sale of real estate of $469,000 and $111,545, respectively, compared to an impairment loss and loss on sale of real estate of $495,000 and $7,276, respectively, in the first nine-months of 2020. For the three-months ended September 30, 2021 and 2020, the impairment loss was $150,000 and $0, respectively, and loss on sale of real estate was $94,450 and $2,816, respectively.

Notes Payable and Line of Credi

Notes Payable and Line of Credit	9 Months Ended
	Sep. 30, 2021
Notes Payable and Line of Credit
Notes Payable and Line of Credit	6. Notes Payable and Line of Credit At September 30, 2021, the Company had an aggregate of $110,394,395 of unsecured, unsubordinated notes payable outstanding, net of $4,112,355 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 September 30, 2025 (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 September 30, 2021, the Company had a total outstanding balance of $30,056,159 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 September 30, 2021). Churchill MRA Funding I LLC Repurchase Financing Facility 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 Master Repurchase Agreement entered into in connection with the Facility (the “MRA”), 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. In addition, the Company has the right and, in some instances the obligation, to repurchase those loans from Churchill. The amount that Churchill will pay for each mortgage loan it purchases will vary based on the attributes of the loan and various other circumstances. The repurchase price is calculated by applying an interest factor to the purchase price of the mortgage loan. The Company has also granted Churchill a first priority security interest on the mortgage loans sold to Churchill to secure its repurchase obligation. 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 MRA contains other terms and conditions, including representations and warranties, covenants and agreements typically found in these types of financing arrangements. In addition, the Company has agreed that it will not (A) (i) pay any dividends or make distributions in excess of 90% of its taxable income, (ii) incur any indebtedness or (iii) purchase any of its capital stock, unless, in any case, it has an asset coverage ratio of at least 150%; and (B) has unencumbered cash and cash equivalents in an amount equal to or greater than 2.50% of the amount of its repurchase obligations. Churchill has the right to terminate the Facility at any time upon 180 days prior notice to the Company. The Company then has an additional 180 days after termination to repurchase all the mortgage loans held by Churchill. The Company intends to use the proceeds from the Facility to finance the continued expansion of its lending business and for general corporate purposes. At September 30, 2021, the Company had not pledged any of its loans to Churchill. ​

Other income

Other income	9 Months Ended
	Sep. 30, 2021
Other income
Other income	7. Other income For the three and nine-month periods ended September 30, 2021 and 2020, other income consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ​ Nine Months ​ ​ ended September 30, ​ ended September 30, ​ 2021 2020 2021 2020 Income on borrower charges ​ $ 33,291 ​ $ 46,432 ​ $ 369,169 ​ $ 204,964 Lender, modification and extension fees ​ 476,162 ​ 154,175 ​ 1,016,468 ​ 431,977 In-house legal fees ​ 69,800 ​ 53,740 ​ 181,600 ​ 156,090 Other income ​ 403 ​ 82,442 ​ 12,648 ​ 111,040 Total ​ $ 579,656 ​ $ 336,789 ​ $ 1,579,885 ​ $ 904,071 ​

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 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: ​ ​ ​ ​ ​ September 30, ​ ​ 2021 ​ $ 1,279,043 2022 ​ ​ 2,501,573 2023 ​ 90,574 2024 ​ 8,101 Total ​ $ 3,879,291 ​ 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 September 30, 2021, the Company’s mortgage loan portfolio included 157 loans with future funding obligations, in the aggregate principal amount of $61,707,185. Advances under these loans are funded against requests supported by required documentation (including lien waivers) as and when needed to pay contractors and other costs of construction. Management estimates that these commitments will be funded over the next 12 months. 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 September 30, 2021, there were eight such properties, representing approximately $810,000 in mortgages receivable.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 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 September 30, 2021, and 2020, loans to known shareholders totaled $13,200,972 and $4,626,665, respectively. Interest income earned on these loans for the nine months ended September 30, 2021 and 2020 totaled $573,446 and $397,293, respectively, and for the three months ended September 30, 2021 and 2020 totaled $252,050 and $129,956, respectively. The wife of the Company’s chief executive officer is employed by the Company in the accounting and finance department. For the nine-month periods ended September 30, 2021 and 2020, she received $85,634 and $75,000, respectively, as compensation from the Company. For the three months ended September 30, 2021 and 2020, the corresponding amounts were $29,250 and $25,000, respectively.

Concentration of Credit Risk

Concentration of Credit Risk	9 Months Ended
	Sep. 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, investments in securities 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 in Connecticut (approximately 59.51%), Florida (approximately 21.09%) and New York (approximately 10.69%). This concentration of credit risk may be affected by changes in economic or other conditions of the particular 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	9 Months Ended
	Sep. 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, which is ongoing. During the nine-month period ended September 30, 2021, the Company sold an aggregate of 6,096,448 common shares and realized net proceeds of $30,884,022 in its at-the-market offering. 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 $45.5 million. (See Note 14.)

Partnership Investment

Partnership Investment	9 Months Ended
	Sep. 30, 2021
Partnership Investment
Partnership Investment	12. Partnership Investment On February 22, 2021, the Company committed to a $3 million investment, representing approximately a 7.6% ownership interest as of the commitment date, in a commercial real estate finance company that provides debt capital solutions to local and regional commercial real estate owners in the Northeastern United States. As of September 30, 2021, the Company’s outstanding investment totaled approximately $1.8 million. The Company’s withdrawal from the partnership may only be granted by the manager. For the nine months ended September 30, 2021, the Company earned approximately $90,000 on the investment. The Company uses the cost method of accounting to account for this investment.

Special Purpose Acquisition Cor

Special Purpose Acquisition Corporation	9 Months Ended
	Sep. 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 LLC used those funds to purchase 1,437,500 shares of Class B common stock of Sachem Acquisition Corp., a newly organized blank check company formed under the laws of Maryland in February 2021 for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses. As of September 30, 2021, the Company had incurred approximately $281,000 of costs related to the the preparation and filing of the registration statement, including legal fees, accounting fees and filing fees as well organizational costs and an expense advance to the underwriter. 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

Series A Preferred Stock

Series A Preferred Stock	9 Months Ended
	Sep. 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	9 Months Ended
	Sep. 30, 2021
Subsequent Events.
Subsequent Events	15. Subsequent Events From October 1, 2021 through November 1, 2021, the Company sold 968,779 of its common shares in an at-the-market offering which raised $5,411,273 in net proceeds. (See Note 11.) On October 13, 2021, the board of directors declared a dividend of $0.12 per common share payable on October 29, 2021 to shareholders of record as of October 25, 2021.

COVID-19

COVID-19	9 Months Ended
	Sep. 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 and as of September 30, 2021, the COVID-19 pandemic is ongoing. In response to the onset of the COVID-19 pandemic and the restrictions imposed by various states, including the States of Connecticut, Florida and New York 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 invested capital into its technology infrastructure over the course of 2020 and into 2021 to allow its employees to work remotely and remain effective in the event of office shutdowns. 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. The combination of these factors – stimulus, monetary easing and vaccination roll-out, appears to have had positive impact on general economic conditions. 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. In addition, the COVID-19 pandemic has exposed certain vulnerabilities in the U.S. economy that could materially and adversely impact our borrowers and, by extension the Company. These vulnerabilities include a labor shortage and supply chain disruptions, particularly with respect to building materials and appliances. 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)	9 Months Ended
	Sep. 30, 2021
Significant Accounting Policies
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.
Consolidations	Consolidations The consolidated financial statements of the Company include the accounts of all subsidiaries in which the Company has control over significant operating, financial and investing decisions of the entity. All intercompany accounts and transactions have been eliminated.
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 Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“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 and Line of Credit-- 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 more than 90 days in arrears. Interest income not accrued at September 30, 2021 and collected prior to the issuance of these financial statements is included in September 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 elected to be taxed as a Real Estate Investment Trust (REIT) for federal income tax purposes 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 September 30, 2021.
Earnings Per Share	Earnings Per Share Basic and diluted earnings per share are calculated in accordance with FASB ASC 260 “Earnings Per Share”. Under FASB 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 recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company’s financial statements.

Fair Value Measurement (Tables)

Fair Value Measurement (Tables)	9 Months Ended
	Sep. 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 September 30, 2021: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Level 1 Level 2 Level 3 Total Stocks and ETFs ​ $ 15,273,970 ​ $ — ​ $ — ​ $ 15,273,970 Fixed and Preferred Securities ​ ​ 3,906,670 ​ ​ — ​ ​ — ​ ​ 3,906,670 Mutual Funds ​ ​ 36,900,085 ​ — ​ — ​ ​ 36,900,085 Total Investments ​ $ 56,080,725 ​ ​ — ​ ​ — ​ $ 56,080,725 Real Estate Owned ​ ​ ​ $ 6,774,522 ​ $ 6,774,522 Investment in Partnership ​ ​ ​ ​ ​ ​ ​ $ 1,804,217 ​ ​ ​ ​

Mortgages Receivable (Tables)

Mortgages Receivable (Tables)	9 Months Ended
	Sep. 30, 2021
Mortgages Receivable
Schedule of credit risk profile	Credit risk profile based on loan activity as of September 30, 2021 and December 31, 2020: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Total ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Outstanding Mortgages Receivable Residential Commercial Land Mixed Use Mortgages September 30, 2021 ​ $ 135,875,193 ​ $ 57,635,307 ​ $ 13,478,355 ​ $ 12,974,436 ​ $ 219,963,291 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 September 30: ​ ​ ​ ​ ​ 2021 $ 48,408,254 2022 ​ 150,388,034 2023 ​ 18,578,880 2024 ​ 2,325,000 2025 and thereafter ​ ​ 263,123 ​ ​ $ 219,963,291

Other income (Tables)

Other income (Tables)	9 Months Ended
	Sep. 30, 2021
Other income
Schedule of other income	For the three and nine-month periods ended September 30, 2021 and 2020, other income consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months ​ Nine Months ​ ​ ended September 30, ​ ended September 30, ​ 2021 2020 2021 2020 Income on borrower charges ​ $ 33,291 ​ $ 46,432 ​ $ 369,169 ​ $ 204,964 Lender, modification and extension fees ​ 476,162 ​ 154,175 ​ 1,016,468 ​ 431,977 In-house legal fees ​ 69,800 ​ 53,740 ​ 181,600 ​ 156,090 Other income ​ 403 ​ 82,442 ​ 12,648 ​ 111,040 Total ​ $ 579,656 ​ $ 336,789 ​ $ 1,579,885 ​ $ 904,071

Commitments and Contingencies (

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2021
Commitments and Contingencies
Schedule of original maturities of deferred revenue	Original maturities of deferred revenue are as follows as of: ​ ​ ​ ​ ​ September 30, ​ ​ 2021 ​ $ 1,279,043 2022 ​ ​ 2,501,573 2023 ​ 90,574 2024 ​ 8,101 Total ​ $ 3,879,291

The Company (Details)

The Company (Details)	9 Months Ended
	Sep. 30, 2021
Minimum
Debt term (in years)	1 year
Maximum
Debt term (in years)	3 years

Significant Accounting Polici_3

Significant Accounting Policies (Details)	9 Months Ended
	Sep. 30, 2021
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) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Fair Value Measurement
Stocks and ETF's	$ 15,273,970
Fixed and Preferred Securities	3,906,670
Mutual Funds	36,900,085
Total Investments	56,080,725
Real Estate Owned	6,774,522
Investment in partnership	1,804,217	$ 0
Level 1
Fair Value Measurement
Stocks and ETF's	15,273,970
Fixed and Preferred Securities	3,906,670
Mutual Funds	36,900,085
Total Investments	56,080,725
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	6,774,522
Investment in partnership	$ 1,804,217

Mortgages Receivable (Details)

Mortgages Receivable (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	$ 219,963,291	$ 155,616,300
Residential Mortgage [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	135,875,193	112,240,129
Commercial Loan [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	57,635,307	33,548,683
Mixed Use [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	12,974,436	3,715,818
Land [Member]
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate	$ 13,478,355	$ 6,111,670

Mortgages Receivable - Maturiti

Mortgages Receivable - Maturities of mortgage loans (Details) - USD ($)	Sep. 30, 2021	Dec. 31, 2020
Mortgages Receivable
2021	$ 48,408,254
2022	150,388,034
2023	18,578,880
2024	2,325,000
2025 and thereafter	263,123
Total	$ 219,963,291	$ 155,616,300

Mortgages Receivable - Addition

Mortgages Receivable - Additional information (Details)	9 Months Ended
	Sep. 30, 2021USD ($)loan	Sep. 30, 2020USD ($)	Dec. 31, 2020USD ($)
Mortgage Loans on Real Estate, Default Interest Rate	18.00%
Payments to Acquire Mortgage Receivable	$ 154,810,007	$ 68,029,798
Proceeds from Collection of Mortgages Receivable	90,463,016	37,859,270
Mortgages receivable	$ 219,963,291		$ 155,616,300
Mortgage loan portfolio number of loans | loan	493
Mortgage loan portfolio number of loans in process of foreclosure | loan	17
Mortgages [Member]
Payments to Acquire Mortgage Receivable	$ 154,810,007	$ 68,029,798
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	$ 16,700,000
Interest rate (as a percent)	14.20%
Twelve Mortgage Loans [Member]
Mortgages receivable	$ 6,200,000
Mortgage Loan Portfolio
Mortgage Loans on Real Estate, Face Amount of Mortgages	$ 22,300,000
Interest rate (as a percent)	10.20%

Real Estate Owned - Additional

Real Estate Owned - Additional information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Real Estate Owned
Real Estate Investment Property, at Cost	$ 6,774,522		$ 6,774,522		$ 8,861,609
Rental Properties	916,325		916,325
Real Estate Held-for-sale	5,858,197		5,858,197
Loss on sale of real estate	94,450	$ 2,816	111,545	$ 7,276
Impairment loss on real estate owned	$ 150,000	$ 0	$ 469,000	$ 495,000

Notes Payable and Line of Cre_2

Notes Payable and Line of Credit (Details)	Sep. 30, 2021USD ($)$ / shares	Jul. 21, 2021USD ($)	Sep. 30, 2021USD ($)$ / 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	$ 4,132,355		$ 4,132,355	$ 4,866,058
Long-term Line of Credit	30,056,159		30,056,159	$ 28,055,648
Notes
Aggregate amount outstanding	110,394,395		110,394,395
Debt Issuance Costs, Net	4,112,355		4,112,355
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	$ 30,056,159		$ 30,056,159
Interest rate (as a percent)	1.50%		1.75%
Master Repurchase agreement
Interest rate		0.25%
Threshold asset coverage ratio		150.00%
Percentage amount of repurchase obligation of unencumbered cash and cash equivalents		2.50%
Term of Facility to terminate at prior notice		180 days
Debt Instrument, Repurchased Face Amount		$ 200,000,000
Minimum
Term of Facility to terminate at prior notice			1 year
Minimum | Master Repurchase agreement
Interest rate		3.00%
Maximum
Term of Facility to terminate at prior notice			3 years
Maximum | Master Repurchase agreement
Interest rate		4.00%

Other income (Details)

Other income (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Other income
Income from borrower charges	$ 33,291	$ 46,432	$ 369,169	$ 204,964
Lender, modification and extension fees	476,162	154,175	1,016,468	431,977
In-house legal fees	69,800	53,740	181,600	156,090
Other income	403	82,442	12,648	111,040
Total	$ 579,656	$ 336,789	$ 1,579,885	$ 904,071

Commitments and Contingencies -

Commitments and Contingencies - Original maturities of deferred revenue (Details) - Deferred Lease Revenue [Member]	Sep. 30, 2021USD ($)
Other Commitments [Line Items]
2021	$ 1,279,043
2022	2,501,573
2023	90,574
2024	8,101
Total	$ 3,879,291

Commitments and Contingencies_2

Commitments and Contingencies - Additional Information (Details)	9 Months Ended
	Sep. 30, 2021USD ($)property
Number of Mortgage Properties | property	8
Mortgages receivable	$ 810,000
Unfunded Loan Commitment [Member]
Other Commitment	$ 61,707,185
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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Shareholders [Member]
Related Party Transaction [Line Items]
Loans and Leases Receivable, Related Parties	$ 13,200,972	$ 4,626,665	$ 13,200,972	$ 4,626,665
Interest Income, Related Party	252,050	129,956	573,446	397,293
Wife of Executive Officer [Member] | Accounting and Financial Services [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$ 29,250	$ 25,000	$ 85,634	$ 75,000

Concentration of Credit Risk (D

Concentration of Credit Risk (Details) - Credit Concentration Risk [Member]	9 Months Ended
	Sep. 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	59.51%
Florida | First Mortgage Liens On Real Property
Concentration Risk [Line Items]
Threshold Used For Calculating Concentration Of Risk	21.09%
New York | First Mortgage Liens On Real Property
Concentration Risk [Line Items]
Threshold Used For Calculating Concentration Of Risk	10.69%

Equity Offerings (Details)

Equity Offerings (Details) - USD ($)	Jul. 02, 2021	Jun. 29, 2021	Jun. 25, 2021	Jun. 23, 2021	Apr. 09, 2021	Nov. 01, 2021	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Proceeds from issuance of common shares, net of expenses								$ 30,884,022	$ 0
Preferred Stock, Par or Stated Value Per Share							$ 0.001	$ 0.001		$ 0.001
Sales of stock							$ 4,849,500	$ 45,462,626
Proceeds from issuance of preferred stock, gross								$ 45,462,626	$ 0
Subsequent Events
Sale of common stock						968,779
Proceeds from issuance of common shares, net of expenses						$ 5,411,273
Common stock issued under prospectus supplement dated October 31, 2019
Sale of common stock								6,096,448
Proceeds from issuance of common shares, net of expenses								$ 30,884,022
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
Proceeds from issuance of preferred stock, gross	$ 47,600,000
Proceeds from issuance of preferred stock, net	$ 45,500,000
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

Partnership Investment (Details

Partnership Investment (Details) - USD ($)	Feb. 22, 2021	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020	Dec. 31, 2020
Partnership Investment
Investment in partnership committed	$ 3,000,000
Ownership interest in the partnership	7.60%
Outstanding investment		$ 1,804,217		$ 1,804,217		$ 0
Income from partnership investment		$ 35,983	$ 0	$ 90,225	$ 0

Special Purpose Acquisition C_2

Special Purpose Acquisition Corporation (Details) - USD ($)	Jul. 14, 2021	Mar. 24, 2021	Sep. 30, 2021
Registration and legal fees			$ 281,000
Sachem Acquisition Corp
Sale of units	5,750,000
Price per unit	$ 10
Aggregate sale price	$ 57,500,000
Sachem Sponsor LLC
Loan to related party		$ 25,000
Common Class A
Number of shares in a unit	1
Number of warrants in a unit	0.5
Number of shares issuable for warrant	1
Common Class B | Sachem Sponsor LLC
Sale of common stock		1,437,500

Series A Preferred Stock (Detai

Series A Preferred Stock (Details) - USD ($)	Jul. 02, 2021	Jun. 29, 2021	Jun. 25, 2021	Jun. 23, 2021	Sep. 30, 2021	Sep. 30, 2020	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
Proceeds from issuance of preferred stock, gross					$ 45,462,626	$ 0
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
Sale of common stock		1,700,000
Proceeds from issuance of preferred stock, gross	$ 47,600,000
Proceeds from issuance of preferred stock, net	$ 45,500,000
Series A Preferred Stock | Over-Allotment Option
Sale of common stock	203,000			255,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	1 Months Ended	9 Months Ended
	Nov. 01, 2021	Sep. 30, 2021	Sep. 30, 2020	Oct. 13, 2021
Subsequent Event [Line Items]
Proceeds from issuance of common shares, net of expenses		$ 30,884,022	$ 0
Subsequent Events
Subsequent Event [Line Items]
Sale of common stock	968,779
Proceeds from issuance of common shares, net of expenses	$ 5,411,273
Dividend payable per common share				$ 0.12

COVID-19 (Details)

COVID-19 (Details) $ in Trillions	9 Months Ended
	Sep. 30, 2021USD ($)
COVID-19
Stimulus payments to small businesses and individuals adversely impacted by COVID-19	$ 4