Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 28, 2019 | Jun. 29, 2018 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Sachem Capital Corp. | ||
Entity Central Index Key | 0001682220 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 49,547,000 | ||
Trading Symbol | SACH | ||
Entity Common Stock, Shares Outstanding | 15,950,256 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Small Business | true |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash | $ 99,310 | $ 954,223 |
Cash - restricted | 59,549 | 0 |
Escrow deposits | 12,817 | 111,189 |
Mortgages receivable | 78,011,653 | 62,166,937 |
Mortgages receivable, affiliate | 879,457 | 1,104,022 |
Interest and fees receivable | 1,397,038 | 645,493 |
Other receivables | 155,000 | 234,570 |
Due from borrowers | 695,218 | 451,795 |
Prepaid expenses | 14,866 | 4,520 |
Property and equipment, net | 1,180,107 | 501,819 |
Deposits on property and equipment | 12,000 | 0 |
Real estate owned | 2,943,438 | 1,224,409 |
Deferred financing costs | 553,597 | 95,560 |
Total assets | 86,014,050 | 67,494,537 |
Liabilities: | ||
Line of credit | 27,219,123 | 9,841,613 |
Mortgage payable | 290,984 | 301,101 |
Accounts payable and accrued expenses | 316,413 | 390,758 |
Security deposits held | 7,800 | 2,550 |
Advances from borrowers | 317,324 | 519,764 |
Due to shareholder | 1,200,000 | 0 |
Due to note purchaser | 0 | 723,478 |
Deferred revenue | 1,058,406 | 1,108,400 |
Dividend payable | 2,624,566 | 0 |
Accrued interest | 176,619 | 40,592 |
Total liabilities | 33,211,235 | 12,928,256 |
Commitments and Contingencies | ||
Shareholders' equity: | ||
Preferred shares - $.001 par value; 5,000,000 shares authorized; no shares issued | 0 | 0 |
Common stock - $.01 par value; 50,000,000 shares authorized; 15,438,621 and 15,415,737 issued and outstanding | 15,439 | 15,416 |
Paid-in capital | 53,192,859 | 53,315,772 |
(Accumulated deficit) retained earnings | (405,483) | 1,235,093 |
Total shareholders' equity | 52,802,815 | 54,566,281 |
Total liabilities and shareholders' equity | $ 86,014,050 | $ 67,494,537 |
BALANCE SHEETS (Parenthetical)
BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares, Issued | 15,438,621 | 15,415,737 |
Common Stock, Shares, Outstanding | 15,438,621 | 15,415,737 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Revenue: | |||
Interest income from loans | $ 8,960,883 | $ 5,434,502 | |
Origination fees, net | 1,411,100 | 802,264 | |
Late and other fees | 189,078 | 136,834 | |
Processing fees | 138,317 | 124,240 | |
Rental income, net | 101,789 | 88,364 | |
Other income | 837,339 | 410,494 | |
Net gain on sale of real estate | 74,864 | 179 | |
Total revenue | 11,713,370 | 6,996,877 | |
Operating costs and expenses: | |||
Interest and amortization of deferred financing costs | 1,665,891 | 664,134 | |
Compensation to manager | 0 | 35,847 | |
Professional fees | 417,312 | 299,935 | |
Compensation, fees and taxes | 1,248,107 | 698,227 | |
Exchange fees | 33,535 | 32,083 | |
Other expenses and taxes | 20,707 | 155,345 | |
Excise tax | 19,000 | 0 | |
Depreciation | 32,529 | 28,358 | |
General and administrative expenses | 437,011 | 222,100 | |
Impairment loss | 67,493 | 0 | |
Total operating costs and expenses | 3,941,585 | 2,136,029 | |
Net income | $ 7,771,785 | $ 4,860,848 | |
Basic and diluted net income per common share outstanding: | |||
Basic | $ 0.50 | $ 0.38 | [1] |
Diluted | $ 0.50 | $ 0.38 | [1] |
Weighted average number of common shares outstanding: | |||
Basic | 15,425,772 | 11,956,246 | |
Diluted | 15,425,772 | 0 | |
[1] | Basic and diluted net income per common share outstanding and weighted average number of shares outstanding are calculated for the period beginning February 9, 2017 (the effective date of the Company’s initial public offering) through December 31, 2017. |
STATEMENT OF CHANGES IN SHAREHO
STATEMENT OF CHANGES IN SHAREHOLDERS'/MEMBERS' EQUITY - USD ($) | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] |
Beginning balance at Dec. 31, 2016 | $ 28,485,615 | $ 2,220 | $ (2,220) | $ 0 |
Beginning balance (in shares) at Dec. 31, 2016 | 2,220,000 | |||
Member contributions | 653,646 | |||
Member distributions | (2,460,125) | |||
Conversion of members' equity into common stock | (26,965,236) | $ 6,283 | 26,958,953 | |
Conversion of members' equity into common stock (in shares) | 6,283,237 | |||
Initial public offering | $ 2,600 | 11,023,400 | ||
Initial public offering (in shares) | 2,600,000 | |||
Public offering | $ 4,313 | 15,335,639 | ||
Public offering (in shares) | 4,312,500 | |||
Dividends paid | (3,339,655) | |||
Net income | Predecessor [Member] | 286,100 | |||
Net income | 4,860,848 | 4,574,748 | ||
Balance at Dec. 31, 2017 | 0 | $ 15,416 | 53,315,772 | 1,235,093 |
Balance (in shares) at Dec. 31, 2017 | 15,415,737 | |||
Offering costs-ATM | (160,479) | |||
Stock based compensation | $ 23 | 37,566 | ||
Stock based compensation (in shares) | 22,884 | |||
Dividends paid | (6,787,795) | |||
Dividends declared and payable | (2,624,566) | |||
Net income | 7,771,785 | 7,771,785 | ||
Balance at Dec. 31, 2018 | $ 0 | $ 15,439 | $ 53,192,859 | $ (405,483) |
Balance (in shares) at Dec. 31, 2018 | 15,438,621 |
STATEMENTS OF CASH FLOW
STATEMENTS OF CASH FLOW - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 7,771,785 | $ 4,860,848 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of deferred financing costs | 137,241 | 59,118 |
Depreciation expense | 32,529 | 28,358 |
Stock based compensation | 37,589 | 0 |
Impairment loss | 67,493 | 0 |
Gain on sale of real estate | (74,864) | (179) |
(Increase) decrease in: | ||
Escrow deposits | 98,372 | (111,189) |
Interest and fees receivable | (994,900) | (166,565) |
Other receivables | 234,570 | (51,728) |
Due from borrowers | (243,423) | 0 |
Prepaid insurance | (10,346) | (4,520) |
Deposits | (12,000) | 0 |
(Decrease) increase in: | ||
Due to note purchaser | (723,478) | 0 |
Due to member | 0 | (656,296) |
Accrued interest | 136,027 | 16,242 |
Accrued expenses | (74,345) | 194,674 |
Deferred revenue | (49,994) | 817,944 |
Advances from borrowers | (116,207) | (141,995) |
Total adjustments | (1,555,736) | (16,136) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 6,216,049 | 4,844,712 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Proceeds from sale of real estate owned | 1,848,558 | 530,181 |
Acquisitions of and improvements to real estate owned | (541,525) | (531,961) |
Purchase of land and building | (699,228) | (39,923) |
Purchase of property and equipment | (11,587) | (92,806) |
Security deposits | 5,250 | 1,750 |
Principal disbursements for mortgages receivable | (42,078,191) | (53,468,949) |
Principal collections on mortgages receivable | 24,641,469 | 23,948,601 |
Repurchase of notes sold | 0 | (2,000,000) |
Proceeds from notes sold | 0 | 2,723,478 |
NET CASH USED FOR INVESTING ACTIVITIES | (16,835,254) | (28,929,629) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from line of credit | 77,564,529 | 44,177,225 |
Repayment of line of credit | (60,187,019) | (42,449,555) |
Principal payments on mortgage payable | (10,117) | (8,899) |
Dividends | (6,787,795) | (3,339,655) |
Proceeds from IPO | 0 | 30,250,000 |
Pre-offering costs incurred | 0 | (3,258,158) |
Costs in connection with ATM | (160,479) | |
Financing costs incurred | (595,278) | (87,202) |
Member contributions | 0 | 653,646 |
Member distributions | 0 | (2,460,125) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 9,823,841 | 23,477,277 |
NET DECREASE IN CASH AND RESTRICTED CASH | (795,364) | (607,640) |
CASH AND RESTRICTED CASH- BEGINNING OF YEAR | 954,223 | 1,561,863 |
CASH AND RESTRICTED CASH - END OF YEAR | 158,859 | 954,223 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION | ||
Taxes paid | 53,191 | 0 |
Interest paid | 1,370,714 | 587,442 |
SUPPLEMENTAL INFORMATION-NON-CASH | ||
Dividends declared and payable | $ 2,624,566 | $ 0 |
STATEMENTS OF CASH FLOW (Parent
STATEMENTS OF CASH FLOW (Parenthetical) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Feb. 08, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 24, 2018 | |
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued | 6,283,237 | 155,000 | ||
Notes Issued | $ 169,338 | |||
Receivable with Imputed Interest, Discount | 1,200,000 | $ 21,433 | ||
Payments To Acquire Real Estate1 | $ 3,173,963 | |||
Pre-offering [Member] | ||||
Adjustments to Additional Paid in Capital, Stock Issued, Issuance Costs | $ 625,890 |
The Company
The Company | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | 1. The Company Sachem Capital Corp. (the “Company”) was formed under the name HML Capital Corp in January 2016 under the State of New York Business Corporation Law. On February 8, 2017, the Company completed an exchange transaction (the “Exchange”) with Sachem Capital Partners, LLC (“SCP”), a Connecticut limited liability company located in Branford, Connecticut, which commenced operations on December 8, 2010. In the Exchange, SCP transferred all its assets to the Company in exchange for 6,283,237 of the Company’s common shares and the assumption by the Company of all of SCP’s liabilities. Prior to the consummation of the Exchange, the Company was not engaged in any business or investment activities and had only nominal assets and no liabilities. Also, prior to the Exchange, SCP was managed by JJV, LLC (the “Manager”), a Connecticut limited liability, jointly owned by Jeffrey C. Villano and John L. Villano, the founders of SCP and, currently, the co-chief executive officers of the Company. On February 9, 2017, the Company’s registration statement on Form S-11 was declared effective by the U.S. Securities and Exchange Commission (the “SEC”). Pursuant to such registration statement, the Company issued and sold 2,600,000 common shares at a price of $5.00 per share, or $13 million of gross proceeds (the “IPO”). The net proceeds to the Company, after payment of underwriting discounts and commissions and transaction fees, were approximately $11.1 million. The IPO was consummated on February 15, 2017. Following the consummation of the IPO, the Company believes it meets all of the qualifications to be taxed as a Real Estate Investment Trust (“REIT”) for federal income tax purposes. Since then, the Company has been conducting its operations as if it is a REIT and made the election to be taxed as a REIT when it filed its 2017 Federal corporate income tax return. (See Note 2 — Significant Accounting Policies — Income Taxes .) In addition, on October 27, 2017, the Company issued and sold 3,750,000 common shares in an underwritten follow-on public offering at an offering price of $4.00 per share. On November 3, 2017, the Company issued and sold an additional 562,500 of its common shares upon the exercise of the underwriter’s over-allotment option. The aggregate gross proceeds from this offering were $17.25 million and the net proceeds, after deducting underwriting discounts and commissions and other offering expenses, were approximately $15.3 million. The Company specializes in originating, underwriting, funding, servicing and managing a portfolio of first mortgage loans. The Company offers short term ( i.e. , one to three years), secured, non-banking loans (sometimes referred to as “hard money” loans) to real estate owners and investors to fund their acquisition, renovation, development, rehabilitation or improvement of properties located primarily in Connecticut. The properties securing the Company’s loans are generally classified as residential or commercial real estate and, typically, are held for resale or investment. Each loan is secured by a first mortgage lien on real estate and may also be secured with additional collateral, such as other real estate owned by the borrower or its principals or a pledge of the ownership interests in the borrower by the principals thereof, as well as personal guarantees by the principals of the borrower. The Company does not lend to owner occupants. The Company’s primary underwriting criteria is a conservative loan to value ratio. In addition, the Company may make opportunistic real estate purchases apart from its lending activities. Except as otherwise noted, the accompanying statements of operations and cash flows for the year ended December 31, 2017 includes the operations of SCP from January 1 through February 8, 2017, the date the Exchange was consummated. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | 2. Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management will base the use of estimates on (a) various assumptions that consider its past 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. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and mortgage loans. The Company maintains its cash with one financial institution. Accounts at the financial institution are insured by the Federal Deposit Insurance Corporation up to $250,000. Credit risks associated with the Company’s mortgage loan portfolio and related interest receivable are described in Note 4 -- Mortgages Receivable. Income Taxes The Company believes it qualifies as a REIT for federal income tax purposes and operates accordingly. It made the election to be taxed as a REIT on its 2017 Federal income tax return. 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 distributions requirements applicable to REITs and the diversity of ownership of its outstanding capital stock. 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 has adopted the provisions of FASB ASC Topic 740-10 “Accounting for Uncertainty in Income Taxes.” The standard 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 December 31, 2018 and 2017. Property and Equipment Property and equipment principally consists of land and building acquired in December 2016, to house the Company’s office facilities is stated at cost. The building will be 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. 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. Origination fee revenue is recognized ratably over the contractual life of the loan in accordance with ASC 310. Deferred Financing Costs Costs incurred in connection with the Company’s line of credit, as discussed in Note 8 – Line of Credit and Mortgage Payable, are amortized over the term of the line of credit, using the straight-line method. Fair Value of Financial Instruments For the line of credit, mortgage payable and interest-bearing mortgages receivable held by the Company, the carrying amount approximates fair value due to the relative short-term nature of such instruments. Subsequent Events Management has evaluated subsequent events through March 29, 2019, the date on which the financial statements were available to be issued. Based on the evaluation, no adjustments were required in the accompanying financial statements. 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. Prior to the Exchange, the Company’s business was conducted by SCP, a limited liability company. Accordingly, earnings per share for the year ended December 31, 2017, do not include the net income per share for the period prior to the Exchange. Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2017. This ASU outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. Several ASUs expanding and clarifying the initial guidance issued in ASU 2014-09 have been released since May 2014. Exclusions from the scope of this guidance include revenues resulting from loans, investment securities (available-for-sale and trading), investments in unconsolidated entities and leases. The Company adopted the ASU effective January 1, 2018. The Company evaluated the applicability of this guidance, and concluded that the adoption does not have an effect on its financial statements. In May 2017, the Financial Accounting Standards Board (the “FASB”) issued ASU 2017-09, “Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting.” The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. For all entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The adoption of this guidance did not have a material impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The ASU expands the activities that qualify for hedge accounting and simplifies the rules for reporting hedging transactions. For public companies that file with the Securities Exchange Commission (“SEC”), the standard is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. In November 2017, the FASB issued ASU 2017-14, “Income Statement — Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606).” The ASU adds, amends, and supersedes certain paragraphs of the ASC pursuant to Staff Accounting Bulletin No. 116 and SEC Release 33-10403, which amends the ASC to align SEC guidance with the new guidance in ASC Topic 606. Adoption of ASU 2017-14 should be concurrent with an entity’s adoption of the guidance contained in ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The adoption of this guidance did not have a material impact on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The ASU amends ASC 220, “Income Statement — Reporting Comprehensive Income,” to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. In addition, under the ASU, an entity will be required to provide certain disclosures regarding stranded tax effects. For all entities, the ASU is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” This ASU supersedes ASC 505-50, “Equity Based Payment to Non-Employees,” (“ASC 505-50”) and expands the scope of ASC 718, “Compensation – Stock Compensation,” to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. For public companies that file with the SEC, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than an entity’s adoption date of ASC 606, “Revenue from Contracts with Customers.” The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company’s financial statements. |
Cash-Restricted
Cash-Restricted | 12 Months Ended |
Dec. 31, 2018 | |
Restricted Cash [Abstract] | |
Restricted Cash [Text Block] | 3. Cash-Restricted Restricted cash mainly represents collections received, pending check clearance, from the Company’s commercial loans and is primarily dedicated to the reduction of the Company’s credit line established pursuant to the Amended Credit Agreement (the “Webster Facility”). |
Mortgages Receivable
Mortgages Receivable | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Mortgage Loans on Real Estate, by Loan Disclosure [Text Block] | 4. Mortgages Receivable The Company offers secured, non-banking 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 generally 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 years ended December 31, 2018 and 2017, the aggregate amounts of loans funded by the Company were $42,078,191 and $53,468,949, respectively, offset by principal repayments of $24,641,469 and $23,948,601, respectively. As of December 31, 2018, the Company’s mortgage loan portfolio included closed loans ranging in size from $8,113 to $2,038,586 with stated interest rates ranging from 5.0% to 12.5% and a default interest rate for non-payment of 18%. At December 31, 2018 and 2017, no single borrower had loans outstanding representing more than 10% of the total balance of the loans outstanding. The Company generally grants loans for a term of one to three years. The Company will agree to extend the term of a loan if, at the time of the extension, the loan and the borrower meets all of the Company’s underwriting requirements. The Company treats a loan extension as a new loan. Credit Risk Credit risk profile based on loan activity as of December 31, 2018 and 2017 : Mortgages Receivable Residential Commercial Land Mixed Use Total Outstanding Mortgages December 31, 2017 $ 43,855,827 $ 12,480,612 $ 6,676,060 $ 258,460 $ 63,270,959 December 31, 2018 $ 52,980,472 $ 19,250,618 $ 5,638,113 $ 1,021,907 $ 78,891,110 As of December 31, 2018, the following is the maturities of mortgages receivable for the years ending December 31: 2019 $ 55,993,536 2020 12,952,075 2021 9,149,824 2022 795,675 Total $ 78,891,110 At December 31, 2018, of the 403 mortgage loans in the Company’s portfolio, 13 were treated by the Company as “non-performing,” typically because the borrower is more than 90 days in arrears on its interest payment obligations or because the borrower has failed to make timely payments of real estate taxes or insurance premiums. The aggregate outstanding principal balance of these non-performing loans and the accrued but unpaid interest as of December 31, 2018 was approximately $5.1 million. The non-performing loans have all been referred to counsel to commence foreclosure proceedings or to negotiate settlement terms. In the case of each non-performing loan, the Company believes the value of the collateral exceeds the outstanding balance on the loan. At December 31, 2017, of the 337 mortgage loans in the Company’s portfolio, 12 were treated by the Company as non-performing. The aggregate outstanding principal balance of these non-performing loans and the accrued but unpaid interest as of December 31, 2017 was approximately $2.2 million. By the end of 2018, the Company sold five properties, two were refinanced by third party lenders at no loss to the Company and two are still in foreclosure. The Company recorded a net aggregate gain on the sale of those five properties of approximately $ 19,000 |
Real Estate Owned
Real Estate Owned | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Real Estate Owned [Text Block] | 5. Real Estate Owned Property purchased for rental or acquired through foreclosure are included on the balance sheet as real estate owned. As of December 31, 2018 and 2017, real estate owned totaled $2,943,438 and $1,224,409, respectively, with no valuation allowance. As of December 31, 2018, real estate owned included $887,918 of real estate held for rental and $2,055,520 of real estate held for sale. As of December 31, 2017, real estate owned included $1,224,409 of real estate held for rental and $-0- of real estate held for sale. There was no valuation allowance on real estate owned at December 31, 2018 or 2017. Properties Held for Sale During the year ended December 31, 2018, the Company sold nine properties held for sale and recognized an aggregate gain of $74,864. Properties Held for Rental As of December 31, 2018, six properties were held for rental, of which five are single family residences and the other one is a multi-family dwelling. Two properties are leased on a month-month basis and the other four are subject to leases that expire at various times from October 2019 through May 2020. Three of the properties are subject to an option to purchase in favor of the current lessee. Rental payments due from real estate held for rental are as follows: Year ending December 31, 2019 $ 60,400 Year ending December 31, 2020 19,025 Year ending December 31, 2021 13,200 Total $ 92,625 |
Profit Sharing Plan
Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 6. Profit Sharing Plan On April 16, 2018, the Company’s Board of Directors approved the adoption of the Sachem Capital Corp. 401(k) Profit Sharing Plan (the “401(k) Plan”). All employees, who meet the participation criteria, are eligible to participate in the 401(k) Plan. Under the terms of the 401(k) Plan, the Company is obligated to contribute 3% of a participant’s compensation to the 401(k) Plan on behalf of an employee-participant. For the year ended December 31, 2018, the 401(k) Plan expense was $16,792. |
Escrow Deposits
Escrow Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Escrow Deposits [Abstract] | |
Escrow Deposits [Text Block] | 7. Escrow Deposits Some of the mortgage loans made by the Company have future funding requirements, in which only a portion of the principal amount of the loan is funded at the closing of the loan. In such cases, the Company deposits the full amount of the loan with the closing attorney prior to the closing. Following the closing, the closing attorney will return the undisbursed funds to the Company. |
Line of Credit and Mortgage Pay
Line of Credit and Mortgage Payable | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 8. Line of Credit and Mortgage Payable Line of Credit On December 18, 2014, the Company entered into a two-year revolving Line of Credit Agreement with Bankwell Bank (“Bankwell”), pursuant to which Bankwell agreed to advance up to $5 million (the “Bankwell Credit Line”) against assignments of mortgages and other collateral. On December 30, 2015, the Bankwell Credit Line was amended to increase available borrowings to $7,000,000 and on March 15, 2016, the Credit Line was amended again to increase available borrowings to $15,000,000. The interest rate on the amount actually outstanding was calculated at a variable rate equal to the prime rate plus 3 6.25 The Bankwell Credit Line was secured by substantially all Company assets. In addition, JJV and each of the Company’s co-chief executive officers, jointly and severally, guaranteed the Company’s obligations under the Bankwell Credit Line up to a maximum of $1,000,000 each. The amortization of all financing costs for the years ended December 31, 2018 and 2017 were $137,241 and $59,118, respectively. At December 31, 2017, the outstanding amount under the Bankwell Credit Line was $9,841,613 and at May 11, 2018 it was $18,512,470, immediately prior to payoff. Effective May 11, 2018 (the “Closing Date”), the Company entered into a Credit and Security Agreement with Webster Business Credit Corporation (“WBCC”), Bankwell Bank and Berkshire Bank (collectively, the “Lenders”) regarding a new $35 million revolving credit facility (the “Webster Facility”) to replace the Bankwell Credit Line. The Webster Facility is secured by a first priority lien on all the Company’s assets, including its mortgage loan portfolio. Interest on the outstanding balance accrues at a rate equal to the 30-day LIBOR rate plus 4.00% per annum. All amounts outstanding under the Webster Facility, including principal, accrued interest and other fees and charges, are due and payable May 11, 2022. Pursuant to the terms of the Webster Facility, the maximum amount the Company may borrow is 75% of the aggregate principal amount of its “Eligible Mortgage Loans,” as defined. As of the Closing Date, the aggregate principal amount of the Company’s Eligible Mortgage Loans was approximately $43.2 million. The Credit and Security Agreement between the Company and the Lenders contains provisions regarding defaults and events of default, representations and warranties and affirmative, negative and financial covenants that are typical of transactions of this sort. At the closing with respect to the Webster Facility, the Company made an initial draw-down of $20.2 million, of which $18.6 million was used to repay the balance due to Bankwell, $1.4 million was used for working capital and the balance was used to pay transaction costs and other fees and expenses relating to obtaining and closing the Webster Facility. No fee was paid with respect to the termination of the Bankwell Credit Line. At the time of the closing of the Webster Facility, the interest rate on the Bankwell Credit Line was 6.79% and the interest rate on the Webster Facility was 6.09%. At December 31, 2018, the Company was not in compliance with the “tangible net worth” covenant required pursuant to the Credit and Security Agreement, and on March 29, 2019 the Lenders waived compliance with that covenant. At December 31, 2018, the outstanding amount under the Webster Facility was approximately $27.2 million and interest on the outstanding balance was accruing at the rate of 6.50%. Mortgage Payable In February 2017, the Company obtained a mortgage loan from Bankwell Bank, secured by property owned by the Company located at 698 Main Street in Branford, Connecticut (the “Bankwell Mortgage Loan”). Commencing March 2019, this property serves as the Company’s principal place of business. The original principal amount of the Bankwell Mortgage Loan is $310,000 and bears interest at the rate of 4.52%. Interest and principal are payable in monthly installments of $1,975. The entire outstanding principal balance of the Bankwell Mortgage Loan and all accrued and unpaid interest thereon is due and payable in January 2022. At December 31, 2018, the outstanding principal balance on the Bankwell Mortgage Loan was $ 290,984 Principal payments on the Bankwell Mortgage Loan are due as follows: Year ending December 31, 2019 $ 10,645 Year ending December 31, 2020 11,136 Year ending December 31, 2021 11,650 Year ending December 31, 2022 257,553 Total $ 290,984 |
Other income
Other income | 12 Months Ended |
Dec. 31, 2018 | |
Component of Operating Income [Abstract] | |
Other income [Text Block] | 9. Other Income Other income of the Company includes the following: Year Ended December 31, 2018 2017 Income from borrower charges $ 250,561 $ 174,707 Lender, modification and extension fees 437,839 153,544 In-house legal fees 76,302 61,400 Other income 72,637 20,843 Total $ 837,339 $ 410,494 |
Members' Equity
Members' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Members' Equity Notes Disclosure [Text Block] | 10. Members’ Equity On the date of the Exchange, members’ equity in SCP was approximately $28.5 million. In the Exchange all such members’ equity was converted into common shares of the Company. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | 11. Commitments and Contingencies Origination Fees Loan origination fees consist of points, generally 2% – 5% of the original loan principal amount. Pursuant to SCP’s operating agreement, JJV, as the manager of SCP, was entitled to 75% of loan origination fees. For the year ended December 31, 2017, loan origination fees paid to JJV were $52,902. These payments are amortized over the life of the loan for financial statement purposes and recognized as a reduction of origination fee income. After the Exchange, the Manager was no longer entitled to origination fee payments. Original maturities of deferred revenue are as follows as of: December 31, 2019 $ 763,808 2020 237,218 2021 57,380 Total $ 1,058,406 In instances in which mortgages are repaid before their maturity date, the balance of any unamortized deferred revenue is generally recognized in full at the time of repayment. If the borrower is entitled to a partial refund of the origination fee collected in connection with a prepaid loan, the Company credits the refundable portion against the balance due on the loan. For the years ended December 31, 2018 and 2017, approximately $76,200 and $74,000 of origination fees were refunded in connection with prepaid loans. Loan Servicing Fees Prior to the Exchange, JJV was responsible for servicing SCP’s mortgage loan portfolio and for administration of the affairs of SCP for which it received compensation. At JJV’s discretion, the loan servicing fee ranges from one-twelfth (1∕12th) of one-half percent (0.5%) to one percent (1.0%) of the loan portfolio Other Manager Compensation JJV was also entitled to fees for other services performed such as inspection fees. For the year ended December 31, 2017, fees paid to JJV for such services were $3,069. Employment Agreements In February 2017, the Company entered into identical employment agreements with John and Jeffrey Villano, executive officers of the Company, pursuant to which: (i) the employment term is five years commencing February 9, 2017, with extensions for successive one-year periods unless either party provides written notice at least 180 days prior to the next anniversary date of its intention to not renew the agreement; (ii) effective as of April 2018, each receives an annual base salary is $360,000, increased from $260,000; (iii) each is entitled to incentive compensation in such amount as determined by the Compensation Committee of the Company’s Board of Directors; (iv) each is entitled to participate in the Company’s employee benefit plans; (v) each is entitled to full indemnification permitted by law; (v) each is subject to a two-year non-competition period following the termination of employment without cause; and (vi) each is entitled to payments upon termination of employment or a change in control. Unfunded Commitments At December 31, 2018, the Company had future funding obligations totaling $5,963,355, which can be drawn by the borrowers when the conditions relating thereto have been satisfied. (See Note 6 – Escrow Deposits.) 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, primarily resulting from unpaid property taxes. The Company actively monitors these actions and in all cases, there remains sufficient value in the subject property to assure that no loan impairment exists. At December 31, 2018, there were nine of such properties, representing approximately $1.4 million of mortgages receivable. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 12. Related Party Transactions Until March 11, 2019, the Company leased office space, on a month-to-month basis, in a building owned by Union News of New Haven, Inc., an entity that is controlled and 20%-owned by Jeffrey Villano, one of the Company’s co-chief executive officers. Rent and other facility related charges paid by the Company to Union News for each of the years ended December 31, 2018 and 2017 was $18,000. On March 11, 2019, the Company relocated its operations to a new location, which is owned by the Company. Prior to the Exchange, SCP reimbursed JJV for rent and other expenses paid by JJV on behalf of SCP. For the period beginning January 1, 2017 and ending February 8, 2017 such amount totaled $35,847. In addition to rent, these amounts include other payments made by JJV on SCP’s behalf including insurance premiums and real estate taxes in instances where SCP was been notified that the borrower is in default, costs of any actions ( i.e., foreclosures) commenced by SCP to enforce its rights or collect amounts due from borrowers who were in default of their obligations to SCP as well as other costs that JJV deemed appropriate to protect SCP’s interests. During 2017, JJV paid salaries and payroll taxes on behalf of the Company totaling $12,223. During the period beginning January 1, 2017 and ending February 8, 2017, SCP paid JJV $52,902, representing the origination fees on loans funded by SCP in those years. (See Note 9 – Commitments and Contingencies.) From time to time, JJV would acquire certain troubled assets from third parties who are not existing SCP borrowers. In such instances, JJV would borrow money from SCP to finance these acquisitions. As part of the Exchange, the Company acquired the notes evidencing these loans from SCP. The principal balance of the loans to JJV at December 31, 2018 and 2017 was $879,457 and $1,104,022, respectively. The real estate purchased is held by JJV in trust for the Company. The Company accounts for these arrangements as separate loans to JJV. The income earned on these loans is equivalent to the income earned on similar loans in the portfolio. All underwriting guidelines are adhered to. The terms of the mortgage allow JJV to sell the properties in case of default with proceeds in excess of loan principal and accrued expense being returned to JJV. Neither SCP nor the Company made any loans to JJV in 2018 or 2017. During the years ended December 31, 2018 and 2017, JJV paid $148,171 and $134,452, respectively, in interest to the Company (or to SCP prior to the Exchange). In the ordinary course of business, the Company may originate, fund, manage and service loans to shareholders (members in the case of loans funded prior to the Exchange). The underwriting process on these loans adheres to prevailing 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 December 31, 2018 and 2017, loans to former partners and now shareholders totaled $4,412,742 and $3,588,669, respectively. Interest income earned on these loans totaled $375,552 and $303,232 for the years ended December 31, 2018 and 2017, respectively. During the year ended December 31, 2018, the Company originated then sold two notes to a shareholder in the aggregate amount of $1,717,000. One note in the amount of $1,200,000 was modified as to its term and has not been re-assigned back to the note holder. This amount is reflected as due to shareholder at December 31, 2018. During the year ended December 31, 2017, the Company originated then sold notes to a shareholder in the amount of $2,750,000. Notes totaling $2,000,000 were repurchased by the Company and are classified as mortgages receivable at December 31, 2017. Prior to December 31, 2017, $723,478 was paid to the Company for the benefit of the noteholder. This amount is reflected in the balance sheet as Due to shareholder at December 31, 2017, and was paid to the noteholder in January 2018. At December 31, 2018 and 2017, the total amount owed by JJV to the Company was $22,794 and $22,977, respectively and is reflected as other receivables on the Company’s balance sheet. On February 9, 2017, the Company purchased computer hardware, software and furniture and fixtures totaling $92,806 from JJV. During the years ended December 31, 2018 and 2017, the wife of one of the Company’s executive officers was paid $80,532 and $75,000, respectively, for accounting and financial reporting services provided to the Company. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Disclosure [Text Block] | 13. Concentration of Credit Risk The Company makes loans that are secured by first mortgage liens on real property located primarily (approximately 90%) in Connecticut. This concentration of credit risk may be affected by changes in economic or other conditions of the geographic area. |
Public Offerings Underwriter Wa
Public Offerings Underwriter Warrants | 12 Months Ended |
Dec. 31, 2018 | |
Underwriter Warrants In Public Offerings [Abstract] | |
Underwriter Warrants In Public Offerings [Text Block] | 14. Public Offerings Underwriter Warrants In 2017 the Company consummated two public offerings – the IPO in February and a follow-on offering in October-November. (See Note 1 --- The Company.) In connection with the IPO, the Company issued to the underwriters warrants to purchase an aggregate of 130,000 common shares at an exercise price of $6.25 per common share. These warrants are exercisable at any time, and from time to time, in whole or in part, commencing on February 9, 2018 and expire on February 9, 2022. The fair value of these warrants, using the Black-Scholes option pricing model, on the date of issuance was $114,926. At December 31, 2018, all these warrants were outstanding. In connection with the follow-on, the Company issued to the underwriters warrants to purchase an aggregate of 187,500 common shares at an exercise price of $5.00 per share. These warrants are exercisable at any time, and from time to time, in whole or in part, commencing on October 24, 2018 and expire on October 24, 2022 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 15. Stock-Based Compensation On October 27, 2016, the Company adopted the 2016 Equity Compensation Plan (the “Plan), the purpose of which is to align the interests of the Company’s officers, other employees, advisors and consultants or any subsidiary, if any, with those of the Company’s shareholders and to afford an incentive to such officers, employees, consultants and advisors to continue as such, to increase their efforts on the Company’s behalf and to promote the success of the Company’s business. The basis of participation in the Plan is upon discretionary grants of awards by the Company’s Board of Directors. The Plan is administered by the Compensation Committee. The maximum number of Common Shares reserved for the grant of awards under the Plan is 1,500,000, subject to adjustment as provided in Section 5 of the Plan. The number of securities remaining available for future issuance the Plan is 1,477,116. During the fiscal year ended December 31, 2018, the Company granted an aggregate of 22,884 restricted Common Shares under the Plan. Stock based compensation for the year ended December 31, 2018 was $37,589. |
At-the Market Offering
At-the Market Offering | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Market Offering Sales Agreement [Table Text Block] | 16. At-the Market Offering On November 9, 2018, the Company entered into an At the Market Issuance Sales Agreement (the “Sales Agreement”) with B. Riley FBR, Inc., (the “Sales Agent”) to sell common shares, par value $0.001 $16 million, from time to time, through an “at-the-market” equity offering program (the “ATM Offering”). The sales of the ATM shares may be made in negotiated transactions or other transactions that are deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933. The Company has no obligation to sell any of the ATM shares under the Sales Agreement, and may at any time suspend sales of the ATM shares. The Company has agreed to pay the Sales Agent commissions for their services in acting as agent in the sale of ATM shares, and the Company has agreed to pay $35,000 to the Sales Agents for their out-of-pocket legal fees incurred in connection with the ATM Offering. The Sales Agent is entitled to compensation at a commission rate up to 7% of the gross proceeds from the sale of ATM shares pursuant to the Sales Agreement. The Sales Agreement contains representations and warranties and covenants that are customary for transactions of this type. In addition, the Company has agreed to indemnify the Sales Agent against certain liabilities on customary terms, subject to limitations on such arrangements imposed by applicable law and regulation. No shares were sold under the Sales Agreement during the year ended December 31, 2018. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 17. Subsequent Events On January 10, 2019, the Company paid a dividend of $0.17 per share, or $2,624,566 in the aggregate, to its shareholders of record as of December 31, 2018. On January 15, 2019, the Company sold a property classified as real estate held for sale at December 31, 2018 receiving $135,000 in net proceeds. The Company recognized an impairment loss of $ 16,822 In February 2019, a property classified as real estate held for rental was sold resulting in a gain of $7,149. In February 2019, the Company purchased a property held for rental for $90,000. In February 2019, the Company entered in to an agreement with a former borrower to pay the sum of $155,000 relating to the sale of four properties foreclosed by the Company. The borrower paid $25,000 in January 2019 pursuant to the agreement. In February and March of 2019, the Company sold 511,635 common shares in the ATM Program, realizing approximately $2.2 million in net proceeds. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Management will base the use of estimates on (a) various assumptions that consider its past 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. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and mortgage loans. The Company maintains its cash with one financial institution. Accounts at the financial institution are insured by the Federal Deposit Insurance Corporation up to $250,000. Credit risks associated with the Company’s mortgage loan portfolio and related interest receivable are described in Note 4 -- Mortgages Receivable. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company believes it qualifies as a REIT for federal income tax purposes and operates accordingly. It made the election to be taxed as a REIT on its 2017 Federal income tax return. 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 distributions requirements applicable to REITs and the diversity of ownership of its outstanding capital stock. 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 has adopted the provisions of FASB ASC Topic 740-10 “Accounting for Uncertainty in Income Taxes.” The standard 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 December 31, 2018 and 2017. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment principally consists of land and building acquired in December 2016, to house the Company’s office facilities is stated at cost. The building will be 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 or Disposal of Long-Lived Assets, Policy [Policy Text Block] | 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. |
Revenue Recognition, Policy [Policy Text Block] | 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. Origination fee revenue is recognized ratably over the contractual life of the loan in accordance with ASC 310. |
Deferred Financing Costs [Policy Text Block] | Deferred Financing Costs Costs incurred in connection with the Company’s line of credit, as discussed in Note 8 – Line of Credit and Mortgage Payable, are amortized over the term of the line of credit, using the straight-line method. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments For the line of credit, mortgage payable and interest-bearing mortgages receivable held by the Company, the carrying amount approximates fair value due to the relative short-term nature of such instruments. |
Subsequent Events, Policy [Policy Text Block] | Subsequent Events Management has evaluated subsequent events through March 29, 2019, the date on which the financial statements were available to be issued. Based on the evaluation, no adjustments were required in the accompanying financial statements. |
Earnings Per Share, Policy [Policy Text Block] | 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. Prior to the Exchange, the Company’s business was conducted by SCP, a limited liability company. Accordingly, earnings per share for the year ended December 31, 2017, do not include the net income per share for the period prior to the Exchange. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2017. This ASU outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry specific guidance. Several ASUs expanding and clarifying the initial guidance issued in ASU 2014-09 have been released since May 2014. Exclusions from the scope of this guidance include revenues resulting from loans, investment securities (available-for-sale and trading), investments in unconsolidated entities and leases. The Company adopted the ASU effective January 1, 2018. The Company evaluated the applicability of this guidance, and concluded that the adoption does not have an effect on its financial statements. In May 2017, the Financial Accounting Standards Board (the “FASB”) issued ASU 2017-09, “Compensation — Stock Compensation (Topic 718): Scope of Modification Accounting.” The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under ASC 718. Under the new guidance, modification accounting is required only if the fair value, the vesting conditions, or the classification of the award changes as a result of the change in terms or conditions. For all entities, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in any interim period. The adoption of this guidance did not have a material impact on the Company’s financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities.” The ASU expands the activities that qualify for hedge accounting and simplifies the rules for reporting hedging transactions. For public companies that file with the Securities Exchange Commission (“SEC”), the standard is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. In November 2017, the FASB issued ASU 2017-14, “Income Statement — Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606).” The ASU adds, amends, and supersedes certain paragraphs of the ASC pursuant to Staff Accounting Bulletin No. 116 and SEC Release 33-10403, which amends the ASC to align SEC guidance with the new guidance in ASC Topic 606. Adoption of ASU 2017-14 should be concurrent with an entity’s adoption of the guidance contained in ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” The adoption of this guidance did not have a material impact on the Company’s financial statements. In February 2018, the FASB issued ASU 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The ASU amends ASC 220, “Income Statement — Reporting Comprehensive Income,” to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. In addition, under the ASU, an entity will be required to provide certain disclosures regarding stranded tax effects. For all entities, the ASU is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s financial statements. In June 2018, the FASB issued ASU 2018-07, “Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting.” This ASU supersedes ASC 505-50, “Equity Based Payment to Non-Employees,” (“ASC 505-50”) and expands the scope of ASC 718, “Compensation – Stock Compensation,” to include all share-based payment arrangements related to the acquisition of goods and services from both nonemployees and employees. For public companies that file with the SEC, the standard is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, but no earlier than an entity’s adoption date of ASC 606, “Revenue from Contracts with Customers.” The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement.” This ASU eliminates, adds and modifies certain disclosure requirements for fair value measurements as part of its disclosure framework project. The standard is effective for all entities for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company’s consolidated financial statements. Management does not believe that any other recently issued, but not yet effective, accounting standards if currently adopted would have a material effect on the Company’s financial statements. |
Mortgages Receivable (Tables)
Mortgages Receivable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate [Abstract] | |
Mortgages Receivable [Table Text Block] | Credit risk profile based on loan activity as of December 31, 2018 and 2017 : Mortgages Receivable Residential Commercial Land Mixed Use Total Outstanding Mortgages December 31, 2017 $ 43,855,827 $ 12,480,612 $ 6,676,060 $ 258,460 $ 63,270,959 December 31, 2018 $ 52,980,472 $ 19,250,618 $ 5,638,113 $ 1,021,907 $ 78,891,110 |
Schedule of Maturities of Mortgages Receivable [Table Text Block] | As of December 31, 2018, the following is the maturities of mortgages receivable for the years ending December 31: 2019 $ 55,993,536 2020 12,952,075 2021 9,149,824 2022 795,675 Total $ 78,891,110 |
Real Estate Owned (Tables)
Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Rental payments due from real estate held for rental are as follows: Year ending December 31, 2019 $ 60,400 Year ending December 31, 2020 19,025 Year ending December 31, 2021 13,200 Total $ 92,625 |
Line of Credit and Mortgage P_2
Line of Credit and Mortgage Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Principal payments on the Bankwell Mortgage Loan are due as follows: Year ending December 31, 2019 $ 10,645 Year ending December 31, 2020 11,136 Year ending December 31, 2021 11,650 Year ending December 31, 2022 257,553 Total $ 290,984 |
Other income (Tables)
Other income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Component of Operating Income [Abstract] | |
Other income [Table Text Block] | Other income of the Company includes the following: Year Ended December 31, 2018 2017 Income from borrower charges $ 250,561 $ 174,707 Lender, modification and extension fees 437,839 153,544 In-house legal fees 76,302 61,400 Other income 72,637 20,843 Total $ 837,339 $ 410,494 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Other Commitments [Table Text Block] | Original maturities of deferred revenue are as follows as of: December 31, 2019 $ 763,808 2020 237,218 2021 57,380 Total $ 1,058,406 |
The Company (Details Textual)
The Company (Details Textual) - USD ($) | Nov. 03, 2017 | Feb. 09, 2017 | Oct. 27, 2017 | Feb. 15, 2017 | Feb. 08, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | 6,283,237 | ||||||
Stock Issued During Period, Shares, New Issues | 562,500 | 3,750,000 | |||||
Shares Issued, Price Per Share | $ 4 | ||||||
Stock Issued During Period, Value, New Issues | $ 17,250,000 | ||||||
Proceeds from Issuance Initial Public Offering | $ 0 | $ 30,250,000 | |||||
Proceeds from Issuance of Common Stock | $ 15,300,000 | ||||||
IPO [Member] | |||||||
Stock Issued During Period, Shares, New Issues | 2,600,000 | ||||||
Shares Issued, Price Per Share | $ 5 | ||||||
Proceeds from Issuance Initial Public Offering | $ 13,000,000 | ||||||
Net IPO Proceeds | $ 11,100,000 |
Significant Accounting Polici_3
Significant Accounting Policies (Details Textual) | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Cash, FDIC Insured Amount | $ 250,000 |
Land and Building [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Mortgages Receivable (Details)
Mortgages Receivable (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | $ 78,891,110 | $ 63,270,959 |
Land [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | 5,638,113 | 6,676,060 |
Commercial Loan [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | 19,250,618 | 12,480,612 |
Mixed Use [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | 1,021,907 | 258,460 |
Residential Mortgage [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | $ 52,980,472 | $ 43,855,827 |
Mortgages Receivable (Details 1
Mortgages Receivable (Details 1) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
2018 | $ 55,993,536 | |
2019 | 12,952,075 | |
2020 | 9,149,824 | |
2021 | 795,675 | |
Total | $ 78,891,110 | $ 63,270,959 |
Mortgages Receivable (Details T
Mortgages Receivable (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans on Real Estate, Default Interest Rate | 18.00% | |
Payments to Acquire Mortgage Receivable | $ 42,078,191 | $ 53,468,949 |
Proceeds from Collection of Mortgages Receivable | 24,641,469 | 23,948,601 |
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | $ 78,011,653 | 62,166,937 |
Gain (Loss) on Sale of Properties | $ 19,000 | |
Mortgage Concentration Risk [Member] | ||
Concentration Risk, Percentage | 10.00% | 10.00% |
Mortgages [Member] | ||
Payments to Acquire Mortgage Receivable | $ 42,078,191 | $ 53,468,949 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
SEC Schedule, 12-29, Real Estate Companies, Investment in Mortgage Loans on Real Estate | 5,100,000 | $ 2,200,000 |
Minimum [Member] | ||
Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 8,113 | |
Mortgage Loans on Real Estate, Interest Rate | 5.00% | |
Maximum [Member] | ||
Mortgage Loans on Real Estate, Face Amount of Mortgages | $ 2,038,586 | |
Mortgage Loans on Real Estate, Interest Rate | 12.50% |
Real Estate Owned (Details)
Real Estate Owned (Details) | Dec. 31, 2018USD ($) |
Banking and Thrift [Abstract] | |
Year ending December 31, 2019 | $ 60,400 |
Year ending December 31, 2020 | 19,025 |
Year ending December 31, 2021 | 13,200 |
Total | $ 92,625 |
Real Estate Owned (Details Text
Real Estate Owned (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate Investment Property, at Cost | $ 2,943,438 | $ 1,224,409 |
Rental Properties | 887,918 | 1,224,409 |
Real Estate Held-for-sale | 2,055,520 | 0 |
Gains (Losses) on Sales of Investment Real Estate | $ 74,864 | $ 179 |
Profit Sharing Plan (Details Te
Profit Sharing Plan (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended |
Apr. 16, 2018 | Dec. 31, 2018 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 3.00% | |
Defined Contribution Plan, Cost | $ 16,792 |
Line of Credit and Mortgage P_3
Line of Credit and Mortgage Payable (Details) | Dec. 31, 2018USD ($) |
Year ending December 31, 2019 | $ 10,645 |
Year ending December 31, 2020 | 11,136 |
Year ending December 31, 2021 | 11,650 |
Year ending December 31, 2022 | 257,553 |
Total | $ 290,984 |
Line of Credit and Mortgage P_4
Line of Credit and Mortgage Payable (Details Textual) - USD ($) | May 11, 2018 | Jun. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Mar. 15, 2016 | Dec. 30, 2015 | Dec. 18, 2014 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 43,200,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 6.50% | |||||
Long-term Line of Credit | $ 18,512,470 | $ 27,219,123 | $ 9,841,613 | ||||
Line of Credit, Current | 27,200,000 | ||||||
Proceeds from Lines of Credit | 77,564,529 | 44,177,225 | |||||
Repayments of Lines of Credit | 60,187,019 | 42,449,555 | |||||
Payments for Working Capital | 1,400,000 | ||||||
Maximum percentage of borrowing capacity | 75.00% | ||||||
Amortization of Debt Issuance Costs | 137,241 | $ 59,118 | |||||
Mortgages [Member] | |||||||
Debt Instrument, Face Amount | $ 310,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.52% | ||||||
Debt Instrument, Periodic Payment | $ 1,975 | ||||||
Long-term Debt, Gross | $ 290,984 | ||||||
Revolving Credit Facility [Member] | |||||||
Proceeds from Issuance of Long-term Debt | $ 35,000,000 | ||||||
Bankwell Bank[ [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||||
Repayments of Lines of Credit | $ 18,600,000 | ||||||
Bankwell Bank[ [Member] | Minimum [Member] | Prime Rate [Member] | |||||||
Line of Credit Facility, Interest Rate During Period | 6.25% | ||||||
Bankwell Bank[ [Member] | Guarantee Obligations [Member] | Maximum [Member] | |||||||
Long-term Line of Credit | $ 1,000,000 | ||||||
Bankwell Bank[ [Member] | Line of Credit [Member] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 20,000,000 | $ 15,000,000 | $ 7,000,000 | $ 5,000,000 | |||
Line of Credit Facility, Interest Rate at Period End | 6.19% | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 6.79% | |||||
Debt Instrument, Basis Spread on Variable Rate | 4.50% | ||||||
Webster Business Credit Corporation [Member] | |||||||
Proceeds from Lines of Credit | $ 20,200,000 | ||||||
Webster Business Credit Corporation [Member] | Line of Credit [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.09% |
Other income (Details)
Other income (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income on borrower charges | $ 250,561 | $ 174,707 |
Lender, modification and extension fees | 437,839 | 153,544 |
In-house legal fees | 76,302 | 61,400 |
Other income | 72,637 | 20,843 |
Total | $ 837,339 | $ 410,494 |
Members' Equity (Details Textua
Members' Equity (Details Textual) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Members' Equity | $ 0 | $ 0 | $ 28,485,615 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Deferred Lease Revenue [Member] | Dec. 31, 2018USD ($) |
Other Commitments [Line Items] | |
2019 | $ 763,808 |
2020 | 237,218 |
2021 | 57,380 |
Total | $ 1,058,406 |
Commitments and Contingencies_3
Commitments and Contingencies (Details Textual) | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Amortization of Deferred Loan Origination Fees, Net | $ 76,200 | $ 74,000 | ||
Number of Real Estate Properties | 1,400,000 | |||
Salary and Wage, Officer, Excluding Cost of Good and Service Sold | $ 360,000 | $ 260,000 | ||
Employment Agreements Description | (i) the employment term is five years commencing February 9, 2017, with extensions for successive one-year periods unless either party provides written notice at least 180​​​​​​​ days prior to the next anniversary date of its intention to not renew the agreement; (ii) effective as of April 2018, each receives an annual base salary is $360,000​​​​​​​, increased from $260,000; (iii) each is entitled to incentive compensation in such amount as determined by the Compensation Committee of the Company’s Board of Directors; (iv) each is entitled to participate in the Company’s employee benefit plans; (v) each is entitled to full indemnification permitted by law; (v) each is subject to a two-year non-competition period following the termination of employment without cause; and (vi) each is entitled to payments upon termination of employment or a change in control. | |||
Unfunded Loan Commitment [Member] | ||||
Other Commitment | $ 5,963,355 | |||
Manager [Member] | ||||
Loan Servicing Fees, Description | the loan servicing fee ranges from one-twelfth (1∕12th) of one-half percent (0.5%) to one percent (1.0%) of the loan portfolio | |||
Loan Servicing Fees, Percentage | 1.00% | |||
Loan Portfolio Expense | $ 32,778 | |||
Payments for Other Fees | 3,069 | |||
JJV LLC [Member] | ||||
Loan Origination Fees ,Percentage | 75.00% | |||
Loan Processing Fee | $ 52,902 | |||
JJV LLC [Member] | Minimum [Member] | ||||
Loan Origination Fees On Original Loan Principal, Percentage | 2.00% | |||
JJV LLC [Member] | Maximum [Member] | ||||
Loan Origination Fees On Original Loan Principal, Percentage | 5.00% |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - USD ($) | Feb. 09, 2017 | Feb. 08, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | ||||
Payments for Rent | $ 18,000 | $ 18,000 | ||
Salaries, Wages and Officers' Compensation | $ 12,223 | |||
Interest Expense, Related Party | 148,171 | 134,452 | ||
Due to Related Parties | 1,200,000 | 0 | ||
Mortgage Receivable [Member] | ||||
Related Party Transaction [Line Items] | ||||
Notes Receivable, Related Parties | 2,000,000 | |||
JJV LLC [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Purchases from Related Party | $ 92,806 | |||
Manager [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans and Leases Receivable, Related Parties | 879,457 | 1,104,022 | ||
Due to Officers or Stockholders | 22,794 | 22,977 | ||
Manager [Member] | Rent and Other Expenses [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repayments of Related Party Debt | 35,847 | |||
Manager [Member] | Origination fees on loans [Member] | ||||
Related Party Transaction [Line Items] | ||||
Repayments of Related Party Debt | $ 52,902 | |||
Investor [Member] | ||||
Related Party Transaction [Line Items] | ||||
Loans and Leases Receivable, Related Parties | 4,412,742 | 3,588,669 | ||
Origination of Notes Receivable from Related Parties | $ 1,717,000 | 2,750,000 | ||
Increase (Decrease) in Due to Officers and Stockholders | 723,478 | |||
Jeffrey Villano [Member] | ||||
Related Party Transaction [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 20.00% | |||
Shareholders [Member] | ||||
Related Party Transaction [Line Items] | ||||
Interest Income, Related Party | $ 375,552 | 303,232 | ||
Wife of Executive Officer [Member] | Accounting and Financial Services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 80,532 | $ 75,000 |
Concentration of Credit Risk (D
Concentration of Credit Risk (Details Textual) | 12 Months Ended |
Dec. 31, 2018 | |
Credit Concentration Risk [Member] | |
Concentration Risk [Line Items] | |
Concentration Risk, Percentage | 90.00% |
Public Offerings Underwriter _2
Public Offerings Underwriter Warrants (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Nov. 30, 2017 | |
IPO [Member] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 130,000 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.25 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 114,926 | |
Warrants Exercisable Date Description | These warrants are exercisable at any time, and from time to time, in whole or in part, commencing on October 24, 2018 and expire on October 24, 2022. | |
Follow On Public Offering [Member] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 187,500 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 5 | |
Warrants Not Settleable in Cash, Fair Value Disclosure | $ 131,728 | |
Warrants Exercisable Date Description | October 24, 2022 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Oct. 27, 2016 | |
Share-based Compensation | $ 37,589 | $ 0 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 22,884 | ||
Two thousand sixteen equity plan [Member] | |||
Common Stock, Capital Shares Reserved for Future Issuance | 1,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,477,116 |
At-the Market Offering (Details
At-the Market Offering (Details Textual) - USD ($) | Nov. 09, 2018 | Nov. 03, 2017 | Nov. 09, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | |||
Stock Issued During Period, Value, New Issues | $ 17,250,000 | ||||
At the Market Offering [Member] | |||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | |||
Stock Issued During Period, Value, New Issues | $ 16,000,000 | ||||
Legal Fees | $ 35,000 | ||||
Percentage of Gross Proceeds Payable for Commission | 7.00% |
Subsequent Events (Details Text
Subsequent Events (Details Textual) - USD ($) | Jan. 10, 2019 | Nov. 03, 2017 | Mar. 31, 2019 | Feb. 28, 2019 | Jan. 15, 2019 | Oct. 27, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | ||||||||
Proceeds from Sale of Real Estate | $ 1,848,558 | $ 530,181 | ||||||
Payments of Ordinary Dividends | 6,787,795 | 3,339,655 | ||||||
Stock Issued During Period, Shares, New Issues | 562,500 | 3,750,000 | ||||||
Proceeds from Issuance of Common Stock | $ 15,300,000 | |||||||
Impairment of Long-Lived Assets to be Disposed of | 16,822 | |||||||
Gains (Losses) on Sales of Investment Real Estate | 74,864 | 179 | ||||||
Payments to Acquire Real Estate | 541,525 | 531,961 | ||||||
Due from Affiliates | $ 695,218 | $ 451,795 | ||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Proceeds from Sale of Real Estate | $ 135,000 | |||||||
Payments of Ordinary Dividends | $ 2,624,566 | |||||||
Due from Affiliates | $ 155,000 | |||||||
Proceeds from Contributions from Affiliates | 25,000 | |||||||
Dividend Paid per share | $ 0.17 | |||||||
Subsequent Event [Member] | Property Held For Rent [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Gains (Losses) on Sales of Investment Real Estate | 7,149 | |||||||
Payments to Acquire Real Estate | $ 90,000 | |||||||
Subsequent Event [Member] | At the Market Offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 511,635 | |||||||
Proceeds from Issuance of Common Stock | $ 2,200,000 |