Korth Direct Mortgage 10-Q 13 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2018shares
Document And Entity Information
Entity Registrant Name	Korth Direct Mortgage LLC
Entity Central Index Key	1,695,963
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity's Reporting Status Current	Yes
Entity Small Business	true
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Common Stock, Shares Outstanding	1,000,000
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

UNAUDITED STATEMENTS OF FINANCI

UNAUDITED STATEMENTS OF FINANCIAL CONDITION - USD ($)	Sep. 30, 2018	Dec. 31, 2017
ASSETS
Cash and Cash Equivalents	$ 26,687	$ 19,844
Restricted Cash	139,678	55,487
Mortgages Owned	13,178,351	1,999,132
Mortgage Servicing Rights, at Fair Value	423,038
Prepaid Expenses	10,584	11,332
TOTAL ASSETS	13,778,338	2,085,795
LIABILITIES
Due to Parent	548,832	334,324
Escrow Payable	139,678	46,579
Due to Investors		8,908
Accrued Expenses	9,750	15,000
Mortgage Secured Notes Payable	13,178,351	1,999,132
Total Liabilities	13,876,611	2,403,943
MEMBERS' DEFICIT
Accumulated Deficit	(101,795)	(321,670)
Capital	3,522	3,522
Total Members' Deficit	(98,273)	(318,148)
TOTAL LIABILITIES AND MEMBERS' DEFICIT	$ 13,778,338	$ 2,085,795

UNAUDITED STATEMENTS OF OPERATI

UNAUDITED STATEMENTS OF OPERATIONS - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
REVENUES
Interest Income	$ 87
Total Revenues	216,788	23,875
COST OF REVENUES
Broker Underwriting Expense	101,160
Bank Fees	2,344	260
Appraisal Costs	5,555	950
Marketing	23,743	4,235
License and Registration	13,498	4,623
Ratings	30,000	10,000
Technology Fees	5,030	3,067
Total Cost of Revenues	181,330	23,135
GROSS PROFIT (LOSS)	35,458	740
OPERATING EXPENSES
Office Supplies	1,818	1,207
Accounting	29,480
Salaries	107,881	95,517
Payroll Taxes	7,116	6,659
Professional & Legal	89,450	46,980
SEC Filing Expense	989
Travel & Entertainment	1,286	729
Business Development	599
Total Expenses	238,619	151,092
Other Income
Unrealized Gain on Mortgages Owned	423,038
Net Profit/(Loss) From Operations	219,877	(150,352)
NET PROFIT/(LOSS)	219,877	(150,352)
Origination Revenue, Net [Member]
REVENUES
Total Revenues	174,866	21,180
Servicing Revenue [Member]
REVENUES
Total Revenues	37,685	1,195
Processing Revenue [Member]
REVENUES
Total Revenues	$ 4,150	$ 1,500

UNAUDITED STATEMENTS OF CASH FL

UNAUDITED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Profit/(Loss)	$ 219,877	$ (150,352)
Adjustments to Reconcile Net Profit/(Loss) to Net Cash Provided by/(Used in) Operating Activities:
Unrealized Gain on Motgages Owned	(423,038)
Changes in Operating Assets and Liabilities:
Restricted Cash	(84,191)	(37,264)
Mortgage Secured Notes Issued	11,179,219	1,052,873
Prepaid Expenses	748
Due to Parent	214,506	152,290
Taxes Payable		(8,213)
Escrow Payable	93,099	34,913
Due to Investors	(8,908)	2,351
Accrued Expenses	(5,250)
New Mortgage Lending	(11,179,219)	(1,052,873)
Total Adjustments	(213,034)	144,077
NET CASH PROVIDED BY/(USED IN) OPERATING ACTIVITIES	6,843	(6,275)
NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS	6,843	(6,275)
CASH AND CASH EQUIVALENTS - Beginning of Period	19,844	7,290
CASH AND CASH EQUIVALENTS - End of Period	$ 26,687	$ 1,015

NATURE OF BUSINESS

NATURE OF BUSINESS	9 Months Ended
	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NOTE 1 - NATURE OF BUSINESS Korth Direct Mortgage LLC (the “Company”) is a limited liability company formed in the State of Florida. The Company is a wholly owned subsidiary of J. W. Korth & Company, L.P. (“J. W. Korth”) an SEC and FINRA registered broker dealer. The Company was created to sell Notes secured by mortgage loans. The Company and J. W. Korth & Company executed a support agreement that provides financial, managerial, and office support to the Company until it is fully operational and a going concern. Pursuant to this agreement, for any moneys owed by the Company to J. W Korth, J. W. Korth may not seek reimbursement from the Company until the Company shall maintain a liquid net worth of at least $1,000,000 for a minimum period of 90 days. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with US generally accepted accounting principles (“GAAP”) have been condensed or omitted. These unaudited financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The accompanying financial statements are solely for the Company. The financial statements of the parent company, J. W. Korth, have these accounts consolidated within them. BASIS OF ACCOUNTING The accompanying financial statements have been prepared on the accrual basis of accounting, in accordance with GAAP. CASH AND CASH EQUIVALENTS For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. MORTGAGE VALUATION Mortgages that are current are carried at the principal value owed by the borrower, as of the date of the financial statements, according to the amortization schedule for the loan. All mortgages owned as of the date of these financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights, at fair value on the Unaudited Statements of Financial Condition, and is recognized on the Unaudited Statement of Operations as an unrealized gain on mortgages owned. MORTGAGE SECURED NOTES The Company funds the mortgage loans that it makes by issuing Mortgage Secured Notes (“MSNs”), which are secured by those same mortgages. As of the date of these financial statements, the Company has funded loans totaling $13,200,250, and it issued MSNs secured by those loans, also in the amount of $13,200,250. The deals have been funded in multiple ways, including private placements, SEC registered deals, and 144a offerings. REVENUE RECOGNITION The Company has three primary sources of revenue: origination fees, servicing fees, and processing fees. Origination Fees Loan origination fees represent revenue earned from originating mortgage loans, net of any credits given to the borrower. The net includes a $27,369 closing credit that was given to the borrower in the quarter ending June 30, 2018. Loan origination fees generally represent flat, per-loan fee amounts and are recognized as revenue at the time the loans are funded. Servicing Fees Loan servicing fees represent revenue earned for servicing loans for various investors. Loan servicing fees are a percentage of the outstanding unpaid principal balance and represent the difference between the Corresponding Mortgage Loan (“CM Loan”) interest received and the MSN interest payable. Servicing Fees are recognized as revenue as the related mortgage payments are received; similarly, loan servicing expenses are charged to operations as incurred. Processing Fees Processing fees are collected from the borrower at the time the commitment letter is signed and cover a variety of expenses during the underwriting process. If the Company cancels the transaction, then unused fees are refunded. If the transaction is unable to proceed for any reason not the fault of the Company, then the Company keeps the full processing fee. Revenues from processing fees are recognized at closing or at the time a transaction is canceled. Unrealized Gain on Mortgages Owned The net present value of the servicing income is recognized at the time the mortgage is initiated. This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has limited operating history and a small amount of loans outstanding, we have a limited basis to predict prepayment rates and default rates. 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. DUE TO PARENT AND PAYABLES Items due to parent are operating expenses due to the parent company, J. W. Korth, pursuant to the support agreement. The date such payments are due has not yet been determined. A repayment plan for operating expenses will be created a future date. INCOME TAXES The Company is a limited liability company which is treated as a partnership for federal and state income tax. Accordingly, no provision for federal income taxes is required since the members report their proportionate share of company taxable income or loss on their respective income tax returns. Such income or losses are proportionately allocated to the members based upon their ownership interests. In accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 740 – Income Taxes

RESTRICTED CASH

RESTRICTED CASH	9 Months Ended
	Sep. 30, 2018
Restricted Cash [Abstract]
RESTRICTED CASH	NOTE 3 - RESTRICTED CASH The Company maintains two segregated accounts in trust for borrowers and investors. The value of these accounts is carried under the asset “Restricted Cash.” The “In Trust for 1” account holds the monthly tax and insurance payments collected from borrowers and distributes payments annually, on behalf of borrowers, to the appropriate tax authority and insurance companies. This account corresponds to the Escrow Payable liability. As of September 30, 2018, this account has a liability of $139,678. The “In Trust for 2” account receives payments from borrowers and distributes payments to investors, and pays the servicing fee to the Company. This account corresponds to the Due to Investors liability. As of September 30, 2018, this account has a zero balance.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 4 - COMMITMENTS The Company relies entirely on its parent, J. W. Korth, to provide office space, internet connectivity, phone service, and incidentals through the end of 2018.

INDEMNIFICATIONS

INDEMNIFICATIONS	9 Months Ended
	Sep. 30, 2018
Indemnifications
INDEMNIFICATIONS	NOTE 5 - INDEMNIFICATIONS The Company provides representations and warranties to counterparties in connection with a variety of commercial transactions and occasionally indemnifies them against potential losses caused by the breach of those representations and warranties. These indemnifications generally are standard contractual terms and are entered into in the normal course of business. The maximum potential amount of future payments that the Company could be required to make under these indemnifications cannot be estimated. However, the Company believes that it is unlikely it will have to make material payments under these arrangements and has not recorded any contingent liability in the financial statements for these indemnifications.

CUSTOMERS

CUSTOMERS	9 Months Ended
	Sep. 30, 2018
Risks and Uncertainties [Abstract]
CUSTOMERS	NOTE 6 - CUSTOMERS As of September 30, 2018, the Company has seven customers. The Company defines customers as borrowers that have an active loan with the Company, or are in the midst of the underwriting process and have a commitment fee on deposit with the Company. Currently, 68% of loans, by unpaid balance, are geographically concentrated in the state of Ohio.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2018
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 - RELATED PARTY TRANSACTIONS The Company is currently supported by its parent company, J. W. Korth. This support is expected to be repaid once the Company is cash flow positive. The Company records this value as a liability on its balance sheet. The Company owed J. W. Korth $548,832 and $334,324 as of September 30, 2018 and December 31, 2017, respectively. Pursuant to the Support Agreement between the Company and J. W. Korth, J. W. Korth may not seek reimbursement from the Company until the Company shall maintain a liquid net worth of at least $1,000,000 for a minimum of 90 days.

FAIR VALUE

FAIR VALUE	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
FAIR VALUE	NOTE 8 - FAIR VALUE GAAP establishes a hierarchy of valuation techniques based on the observability of inputs utilized in measuring financial assets and liabilities at fair value. GAAP establishes market-based or observable inputs as the preferred source of values, followed by valuation models using management assumptions in the absence of market inputs. The three levels of the hierarchy are described below: Level I Level II Level III Valuation Process Cash and cash equivalents: The carrying amounts of cash and short-term instruments approximate fair values and are classified as either Level 1 or Level 2. Mortgages Owned and Mortgage Secured Notes Payable: Due to the fact that the Company issues notes secured directly by underlying loans, our assets and liabilities in this category have identical values and assets have offsetting balances. Mortgage Servicing The net present value of the servicing income is recognized at the time the mortgage is initiated as an unrealized gain, beginning in 2018. This value uses several inputs that are highly subjective including: discount rate, constant prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has limited operating history and a small amount of loans outstanding, we have a limited basis to predict prepayment rates and default rates, but have engaged a third party to assist us in our valuation of this asset, beginning in the three months ended June 30, 2018. For the prior quarter, the servicing rights were combined under the caption “Mortgages Owned, at Fair Value” on the Unaudited Statement of Financial Condition; however, beginning this period and for those going forward the servicing has been separated to its own line item as “Mortgage Servicing Rights, at Fair Value” Fair Value Disclosure The following tables display the Company’s assets and liabilities measured at fair value on a recurring basis: December 31, 2017 Total Level I Level II Level III Financial Assets Mortgages Owned $ 1,999,132 $ - $ 1,999,132 $ - Financial Liabilities Mortgage Secured Notes Payable $ 1,999,132 $ - $ 1,999,132 $ - September 30, 2018 Financial Assets Mortgages Owned $ 13,178,351 $ - $ 13,178,351 $ - Mortgage Servicing 423,038 - - 423,038 Total Financial Assets $ 13,601,389 $ - $ 13,178,351 $ 423,038 Financial Liabilities Mortgage Secured Notes Payable $ 13,178,351 $ - $ 13,178,351 $ - Fair Value Measurements Changes in Fair Value Measurements for the quarter ended September 30, 2018 The Company has engaged MIAC Analytics to assist in the valuation of the mortgage servicing component of its business. This lead to significant changes in underlying assumptions within the valuation model, which are detailed below. The following table presents a reconciliation of changes in Level 3 assets and liabilities reported in the Statements of Financial Condition for the quarter ended September 30, 2018: Changes in assets: Quarter ended September 30, 2018 Mortgage Beginning balance at June 30, 2018 $ 307,668 Purchases - Sales - Issues - Settlements - Net realized gain/loss - Unrealized Gain from newly issued mortgages 122,243 Fair Value adjustment (6,873 ) Transfers into Level 3 - Transfers out of Level 3 - Ending balance at September 30, 2018 $ 423,038 The Company’s policy for recording transfers between levels of the fair value hierarchy is to recognize as of the financial statement date. For the quarter ended September 30, 2018, there were no transfers between levels. The Company has established valuation processes and policies for its Level 3 investments to ensure that the methods used are fair and consistent in accordance with ASC 820 – Fair Value Measurements and Disclosures The following table presents quantitative information regarding the significant unobservable inputs the Company uses to determine the fair value of Level 3 investments held as of September 30, 2018: Investment type Fair Value Valuation technique Unobservable input Value Mortgage servicing $423,038 Net Present Value Prepayment Discount 5.62% Discount rate 15.00%

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION The accompanying financial statements are solely for the Company. The financial statements of the parent company, J. W. Korth, have these accounts consolidated within them.
BASIS OF ACCOUNTING	BASIS OF ACCOUNTING The accompanying financial statements have been prepared on the accrual basis of accounting, in accordance with GAAP.
CASH AND CASH EQUIVALENTS	CASH AND CASH EQUIVALENTS For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents.
MORTGAGE VALUATION	MORTGAGE VALUATION Mortgages that are current are carried at the principal value owed by the borrower, as of the date of the financial statements, according to the amortization schedule for the loan. All mortgages owned as of the date of these financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights, at fair value on the Unaudited Statements of Financial Condition, and is recognized on the Unaudited Statement of Operations as an unrealized gain on mortgages owned.
MORTGAGE SECURED NOTES	MORTGAGE SECURED NOTES The Company funds the mortgage loans that it makes by issuing Mortgage Secured Notes (“MSNs”), which are secured by those same mortgages. As of the date of these financial statements, the Company has funded loans totaling $13,200,250, and it issued MSNs secured by those loans, also in the amount of $13,200,250. The deals have been funded in multiple ways, including private placements, SEC registered deals, and 144a offerings.
REVENUE RECOGNITION	REVENUE RECOGNITION The Company has three primary sources of revenue: origination fees, servicing fees, and processing fees. Origination Fees Loan origination fees represent revenue earned from originating mortgage loans, net of any credits given to the borrower. The net includes a $27,369 closing credit that was given to the borrower in the quarter ending June 30, 2018. Loan origination fees generally represent flat, per-loan fee amounts and are recognized as revenue at the time the loans are funded. Servicing Fees Loan servicing fees represent revenue earned for servicing loans for various investors. Loan servicing fees are a percentage of the outstanding unpaid principal balance and represent the difference between the Corresponding Mortgage Loan (“CM Loan”) interest received and the MSN interest payable. Servicing Fees are recognized as revenue as the related mortgage payments are received; similarly, loan servicing expenses are charged to operations as incurred. Processing Fees Processing fees are collected from the borrower at the time the commitment letter is signed and cover a variety of expenses during the underwriting process. If the Company cancels the transaction, then unused fees are refunded. If the transaction is unable to proceed for any reason not the fault of the Company, then the Company keeps the full processing fee. Revenues from processing fees are recognized at closing or at the time a transaction is canceled.
UNREALIZED GAIN ON MORTGAGES OWNED	Unrealized Gain on Mortgages Owned The net present value of the servicing income is recognized at the time the mortgage is initiated. This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. Since the Company has limited operating history and a small amount of loans outstanding, we have a limited basis to predict prepayment rates and default rates.
ESTIMATES	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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
DUE TO PARENT AND PAYABLES	DUE TO PARENT AND PAYABLES Items due to parent are operating expenses due to the parent company, J. W. Korth, pursuant to the support agreement. The date such payments are due has not yet been determined. A repayment plan for operating expenses will be created a future date.
INCOME TAXES	INCOME TAXES The Company is a limited liability company which is treated as a partnership for federal and state income tax. Accordingly, no provision for federal income taxes is required since the members report their proportionate share of company taxable income or loss on their respective income tax returns. Such income or losses are proportionately allocated to the members based upon their ownership interests. In accordance with Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 740 – Income Taxes

FAIR VALUE (Tables)

FAIR VALUE (Tables)	9 Months Ended
	Sep. 30, 2018
Fair Value Disclosures [Abstract]
Schedule of fair value disclosure	The following tables display the Company’s assets and liabilities measured at fair value on a recurring basis: December 31, 2017 Total Level I Level II Level III Financial Assets Mortgages Owned $ 1,999,132 $ - $ 1,999,132 $ - Financial Liabilities Mortgage Secured Notes Payable $ 1,999,132 $ - $ 1,999,132 $ - September 30, 2018 Financial Assets Mortgages Owned $ 13,178,351 $ - $ 13,178,351 $ - Mortgage Servicing 423,038 - - 423,038 Total Financial Assets $ 13,601,389 $ - $ 13,178,351 $ 423,038 Financial Liabilities Mortgage Secured Notes Payable $ 13,178,351 $ - $ 13,178,351 $ -
Schedule of fair value measurements	The following table presents a reconciliation of changes in Level 3 assets and liabilities reported in the Statements of Financial Condition for the quarter ended September 30, 2018: Changes in assets: Quarter ended September 30, 2018 Mortgage Beginning balance at June 30, 2018 $ $307,668 Purchases - Sales - Issues - Settlements - Net realized gain/loss - Unrealized Gain from newly issued mortgages 122,243 Fair Value adjustment (6,873 ) Transfers into Level 3 - Transfers out of Level 3 - Ending balance at September 30, 2018 $ $423,038
Schedule of quantitative information	The following table presents quantitative information regarding the significant unobservable inputs the Company uses to determine the fair value of Level 3 investments held as of September 30, 2018: Investment type Fair Value Valuation technique Unobservable input Value Mortgage servicing $423,038 Net Present Value Prepayment Discount 5.62% Discount rate 15.00%

NATURE OF BUSINESS (Details Nar

NATURE OF BUSINESS (Details Narrative)	9 Months Ended
	Sep. 30, 2018USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Liquid net worth	$ 1,000,000
minimum period liquid net worth	90 days

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	9 Months Ended
	Sep. 30, 2018USD ($)
Accounting Policies [Abstract]
Mortgage secured notes funded	$ 13,200,250
Mortgage second secured notes funded	13,200,250
Credit to borrower	$ 27,369

RESTRICTED CASH (Details Narrat

RESTRICTED CASH (Details Narrative) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Restricted Cash [Abstract]
Escrow Payable	$ 139,678	$ 46,579
Due to Investors		$ 8,908

CUSTOMERS (Details Narrative)

CUSTOMERS (Details Narrative)	9 Months Ended
	Sep. 30, 2018customer
Risks and Uncertainties [Abstract]
Number of customer	7
Percentage of revenue	68.00%

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Related Party Transactions [Abstract]
Liquid net worth	$ 1,000,000
minimum period liquid net worth	90 days
Due to Parent	$ 548,832	$ 334,324

FAIR VALUE (Details)

FAIR VALUE (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Financial Assets
Mortgages Owned	$ 13,178,351	$ 1,999,132
Mortgage Servicing	423,038
Total Financial Aseets	13,601,389
Financial Liabilities
Mortgage Secured Notes Payable	13,178,351	1,999,132
Fair Value, Inputs, Level 1 [Member]
Financial Assets
Mortgages Owned
Mortgage Servicing
Total Financial Aseets
Financial Liabilities
Mortgage Secured Notes Payable
Fair Value, Inputs, Level 2 [Member]
Financial Assets
Mortgages Owned	13,178,351	1,999,132
Mortgage Servicing
Total Financial Aseets	13,178,351
Financial Liabilities
Mortgage Secured Notes Payable	13,178,351	1,999,132
Fair Value, Inputs, Level 3 [Member]
Financial Assets
Mortgages Owned
Mortgage Servicing	423,038
Total Financial Aseets	423,038
Financial Liabilities
Mortgage Secured Notes Payable

FAIR VALUE (Details 1)

FAIR VALUE (Details 1)	9 Months Ended
	Sep. 30, 2018USD ($)
Fair Value Disclosures [Abstract]
Beginning balance at June 30, 2018	$ 307,668
Purchases
Sales
Issues
Settlements
Net realized gain/loss
Unrealized Gain from newly issued mortgages	122,243
Fair Value adjustment	(6,873)
Transfers into Level 3
Transfers out of Level 3
Ending balance at September 30, 2018	$ 423,038

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) - Fair Value, Measurements, Recurring [Member]	9 Months Ended
	Sep. 30, 2018USD ($)
Fair Value	$ 423,038
Valuation technique	Net Present Value
Unobservable input	Discount rate
Value	0.15
Prepayment Discount [Member]
Value	0.0562