Korth Direct Mortgage 10-Q 14 Aug 24 2024 Q2 Quarterly report Financial data

Cover

Cover	6 Months Ended
	Jun. 30, 2024 shares
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Jun. 30, 2024
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Current Fiscal Year End Date	--12-31
Entity File Number	000-1695962
Entity Registrant Name	KORTH DIRECT MORTGAGE INC.
Entity Central Index Key	0001695963
Entity Tax Identification Number	27-0644172
Entity Incorporation, State or Country Code	FL
Entity Address, Address Line One	135 San Lorenzo Avenue
Entity Address, Address Line Two	Suite 600
Entity Address, City or Town	Coral Gables
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33146
City Area Code	305
Local Phone Number	668-8485
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	true
Elected Not To Use the Extended Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding	5,000,000

UNAUDITED CONSOLIDATED STATEMEN

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)	Jun. 30, 2024	Dec. 31, 2023
ASSETS
Cash and Cash Equivalents	$ 3,521,162	$ 4,844,873
Restricted Cash	14,509,587	16,856,935
Restricted Investment	1,158,247
Mortgages Owned	456,742,692	484,484,408
Mortgage Servicing Rights, at Fair Value	8,108,634	9,245,877
Portfolio Loans	5,147,805	7,674,198
Loans Held for Sale	524,258	6,074,927
Securities	56,280	85,000
ROU Leased Asset	387,304	501,715
Goodwill	110,000	110,000
Property and equipment, net of depreciation	32,334,966	17,674,959
Other Assets	2,991,198	1,784,370
TOTAL ASSETS	525,592,133	549,337,262
LIABILITIES
Escrows Payable	14,408,018	14,884,214
Lease Liability	419,054	540,266
Deferred Revenue, net	1,600,348	1,725,803
Deferred Tax Liability, net	1,529,562	2,012,419
Contingent Liability, net	164,644	164,644
Securities Sold Short		2,565,082
Mortgage Secured Notes Payable	467,548,877	485,154,510
Warehouse Line of Credit, net	9,260,720	10,191,104
Other Liabilities and Payables	2,986,503	2,030,662
Total Liabilities	497,917,726	519,268,704
STOCKHOLDERS' EQUITY
Accumulated (Deficit)/Earnings	(2,102,980)	293,220
Additional Paid-in Capital	29,605,484	29,578,706
Common Stock, $0.001 par value, 60,000,000 shares authorized 5,000,000 shares issued and outstanding at June 30, 2024 and December 31, 2023	5,000	5,000
Non-Controlling Interest	166,424	191,153
Total Stockholders' Equity	27,674,407	30,068,558
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	525,592,133	549,337,262
Series A Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock value	460	460
Series B Preferred Stock [Member]
STOCKHOLDERS' EQUITY
Preferred stock value	$ 19	$ 19

UNAUDITED CONSOLIDATED STATEM_2

UNAUDITED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	5,000,000	5,000,000
Common stock, shares outstanding	5,000,000	5,000,000
Series A Preferred Stock [Member]
Preferred stock, par value (in dollar per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	460,000	460,000
Preferred stock, shares issued	460,000	460,000
Preferred stock, shares outstanding	460,000	460,000
Series B Preferred Stock [Member]
Preferred stock, par value (in dollar per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000	20,000
Preferred stock, shares issued	19,000	19,000
Preferred stock, shares outstanding	19,000	19,000

UNAUDITED CONSOLIDATED STATEM_3

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
REVENUES
Total Revenues	$ 5,183,564	$ 4,862,296
COST OF REVENUES
Broker Underwriting Expense	768,292	924,880
Administrative Expenses	729,422	723,630
Total Cost of Revenues	1,497,714	1,648,510
GROSS PROFIT	3,685,850	3,213,786
OPERATING EXPENSES
Office	847,392	422,163
Compensation and Related Benefits	2,306,493	2,120,429
Professional & Legal	843,775	263,460
Advertising	113,506	179,901
Depreciation	571,042	332,159
Total Expenses	4,682,208	3,318,112
Loss From Operations	(996,358)	(104,326)
Other (Expenses)/Income
Unrealized (Loss)/Gain on Mortgages	(1,137,243)	90,290
Unrealized (Loss)/Gain on Mortgage Secured Notes	(888)	66,470
Interest Expense	(709,778)	(793,307)
Realized Gain on Foreclosure	1,045,062
Realized Loss on Mortgage Secured Notes	(434)
Realized Loss on Loans Held for Sale	(141,647)
Change in Fair Value of Mortgage Secured Notes	12,660,000
Loss on Foreclosures	(12,660,000)
Total Other (Expenses)/Income	(944,928)	(636,547)
Loss before provision for income taxes	(1,941,286)	(740,873)
Income tax benefit	(482,857)	(171,913)
Net Loss before non-controlling interest	(1,458,429)	(568,960)
Less: Net Loss attributable to non-controlling interest	(24,729)	(17,875)
Net Loss	(1,433,700)	(551,085)
Series A Preferred Dividends	345,000	285,000
Series B Preferred Dividends	617,500	617,500
Net loss attributable to common stockholders	(2,396,200)	(1,453,585)
Origination Revenue [Member]
REVENUES
Total Revenues	820,154	729,507
Service [Member]
REVENUES
Total Revenues	2,499,354	2,807,076
Underwriting Income [Member]
REVENUES
Total Revenues	40,000	229,000
Leasing Revenue [Member]
REVENUES
Total Revenues	1,451,188	596,782
Other Revenue [Member]
REVENUES
Total Revenues	$ 372,868	$ 499,931

UNAUDITED CONSOLIDATED STATEM_4

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Preferred Stock Series A [Member]	Preferred Stock Series B [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Beginning balance, value at Dec. 31, 2022	$ 300	$ 19	$ 5,000	$ 25,626,614	$ 6,493,385	$ 238,643	$ 32,363,961
Beginning balance, shares at Dec. 31, 2022	300,000	19,000	5,000,000
Share-based compensation				29,474			29,474
Issuance of Series A preferred stock	$ 160			3,895,840			3,896,000
Issuance of Series A preferred stock, shares	160,000
Series A & Series B preferred stock dividends declared					(902,500)		(902,500)
Net loss					(551,085)	(17,875)	(568,960)
Ending balance, value at Jun. 30, 2023	$ 460	$ 19	$ 5,000	29,551,928	5,039,800	220,768	34,817,975
Ending balance, shares at Jun. 30, 2023	460,000	19,000	5,000,000
Beginning balance, value at Dec. 31, 2023	$ 460	$ 19	$ 5,000	29,578,706	293,220	191,153	30,068,558
Beginning balance, shares at Dec. 31, 2023	460,000	19,000	5,000,000
Share-based compensation				26,778			26,778
Series A & Series B preferred stock dividends declared					(962,500)		(962,500)
Net loss					(1,433,700)	(24,729)	(1,458,429)
Ending balance, value at Jun. 30, 2024	$ 460	$ 19	$ 5,000	$ 29,605,484	$ (2,102,980)	$ 166,424	$ 27,674,407
Ending balance, shares at Jun. 30, 2024	460,000	19,000	5,000,000

UNAUDITED CONSOLIDATED STATEM_5

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (1,458,429)	$ (568,960)
Adjustments to Reconcile Net Loss to:
Unrealized Loss/(Gain) on Mortgages Owned	1,137,243	(90,290)
Unrealized Loss/(Gain) on Mortgage Secured Notes	888	(66,470)
Unrealized Gain on Securities	27,832
Realized Gain on Foreclosure	(1,045,062)
Realized Loss on LHS	141,647
Change in Fair Value of Mortgage Secured Notes	(12,660,000)
Loss on Foreclosures	12,660,000
Stock Compensation Expense	26,778	29,474
Depreciation	571,042	332,159
Amortization of loan costs	720,136	264,966
Deferred rent expense from operating lease	(6,801)	(3,229)
Deferred income taxes	(482,857)	(171,913)
Changes in Operating Assets and Liabilities:
Mortgage Secured Notes Issued	(4,945,633)	39,241,375
Mortgage Secured Notes Purchased		409,296
Restricted Investment	(1,158,247)	1,486,207
Warehouse LOC	(1,650,520)	(591,702)
Portfolio Loans	2,526,393	(2,294,206)
Loans Held For Sale, at Fair Value	5,409,022
Other Assets	(360,267)	(1,282,190)
Deferred Revenue, net	(125,455)	246,995
Escrow Payable	(476,196)	7,724,111
Securities Sold Short	(2,565,082)
Other Liabilities and Payables	955,842	143,883
New Mortgage Lending	81,716	(38,093,723)
Total Adjustments	(1,217,581)	7,284,743
NET CASH PROVIDED BY OPERATING ACTIVITIES	(2,676,010)	6,715,783
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(32,549)	(24,946)
NET CASH USED IN INVESTING ACTIVITIES	(32,549)	(24,946)
CASH FLOWS FROM FINANCING ACTIVITIES
Payment of Series A/B preferred stock dividends	(962,500)	(902,500)
Net proceeds from the sale of Series A preferred stock		3,896,000
NET CASH (USED IN)/PROVIDED BY FINANCING ACTIVITIES	(962,500)	2,993,500
NET (DECREASE)/INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(3,671,059)	9,684,336
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – Beginning of Period	21,701,808	18,360,430
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – End of Period	18,030,749	28,044,766
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION
Cash paid during the year for interest		528,341
NON-CASH INVESTING AND FINANCING ACTIVITIES
Assets acquired through foreclosure	$ 16,045,062	$ 0

NATURE OF BUSINESS

NATURE OF BUSINESS	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NATURE OF BUSINESS	NOTE 1 - NATURE OF BUSINESS Korth Direct Mortgage Inc. (the “Company” or “KDM”) is incorporated in the State of Florida. The Company was created to originate mortgages and fund those mortgages with Notes secured by mortgage loans. J.W. Korth & Company Limited Partnership (“J.W. Korth”) is a wholly owned subsidiary of KDM. J.W. Korth is a securities broker dealer registered with the Securities Exchange Commission (the “Commission”) and the states of Michigan, Florida, and various other states and an SEC registered investment adviser under the Investment Advisers Act of 1940. J.W. Korth is a licensed member of the Financial Industry Regulatory Authority (FINRA), the Securities Investor Protection Corporation, as well as a Municipal Securities Rulemaking Board (MSRB) registrant. On July 28, 2022, KDM created a new wholly owned subsidiary, KDM Funding I LLC (“KDMF”), which is an additional issuer of Mortgage Secured Notes (“MSNs”). KDM is the servicer of KDMF’s loans, and all revenue and expenses are passed through to the Company and consolidated within these financial statements. Although KDMF’s deal history is broken out by KDM and KDMF as issuers in KDM’s annual reports on Form 10-K as well as its securities memoranda there are no stand-alone financial statements prepared for KDMF. See the current report Form 8-K filed with the Commission on August 5, 2022, for more information concerning the business of KDMF. KDM owns a controlling interest in KDM Stafford LLC, KDM Nagog Park LLC, and KDM Cupples REO LLC, which are special purpose entities that own multiple buildings in Stafford, VA, Acton, MA, and St. Louis, MS. KDM also owns Citrus Servicing LLC, which is an entity that is a servicer for our small balance multifamily loan program. KDM Capital Partners LP (“the Fund”) is a fund that invests in mortgages and other real estate related investments. The Fund primarily invests in mortgages that are originated and serviced by KDM. The Fund launched in June 2024 and is actively raising capital. The Company may create and operate other special purpose and pass-through entities typically organized as limited liability companies in order to own real estate and issue additional securities. These entities will be consolidated into these unaudited consolidated financial statements and Notes, if and when created.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The accompanying unaudited consolidated financial statements include the accounts of the Company and the accounts of the Company’s wholly owned subsidiaries J.W. Korth, KDM MFB LLC, KDM Funding I LLC, KDM Nagog Park LLC, KDM Cupples REO LLC, KDM Capital Management LLC, KDM Capital Partners LP, and KDM Stafford LLC, in which KDM owns a controlling interest. BASIS OF ACCOUNTING The accompanying unaudited consolidated financial statements have been prepared on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”). The accompanying unaudited consolidated financial statements have also been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). USE OF ESTIMATES The preparation of unaudited consolidated 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 unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. CASH, CASH EQUIVALENTS AND RESTRICTED CASH For purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the unaudited consolidated statements of cash flows as of June 30, 2024, and 2023: Schedule of cash and cash equivalents 2024 2023 Cash and Cash Equivalents $ 3,521,162 $ 8,273,944 Restricted Cash 14,509,587 19,770,822 $ 18,030,749 $ 28,044,766 The Company maintains cash and restricted cash balances at financial institutions in excess of federally insured limits. The Company has not experienced any losses related to these balances. The Federal Deposit Insurance Corporation insures eligible accounts up to $ 250,000 MORTGAGE VALUATION Mortgages that are current are carried at the principal value owed by the borrower as of the date of the unaudited consolidated financial statements, according to the amortization schedule for the loans, which management believes to be the best estimate of fair value. Mortgages owned as of the date of these unaudited consolidated financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights at fair value on the Unaudited Consolidated Statements of Financial Condition and the change in the fair value is recognized on the Unaudited Consolidated Statements of Operations as an unrealized gain on mortgages. MORTGAGE SECURED NOTES The Company primarily funds the mortgage loans (”CM Loans”) that it makes by issuing MSNs in series, each of which MSN series is secured by the mortgage or mortgages funded from proceeds of the MSN series. Our MSNs have been funded in multiple ways, including private placements, SEC registered offerings, loan participations, and Rule 144A offerings. As of June 30, 2024, the Company has issued MSNs secured by these loans in the amount of $ 597,471,250 140,728,558 PORTFOLIO LOANS The Company recognizes loans made with its own capital, or pieces of those not securitized or sold via participation, under the caption “Portfolio Loans” on the unaudited consolidated statements of financial condition. This number also includes the cash we have invested in loans on our warehouse line as “haircut capital.” As of June 30, 2024, the Company had issued Portfolio Loans in the amount of $ 49,589,472 5,147,805 LOANS HELD FOR SALE The Company purchases small balance commercial loans classified as held for sale which are carried at the lower of amortized cost basis or market value, where gains and losses are recognized upon sale as realized loss on loans held for sale on the Statements of Operations which is $ 141,647 PARTICIPATIONS From time to time the Company sells all or part of its mortgage loans as loan participations to banks or other lending institutions that prefer to hold their mortgage investments in that manner. As of June 30, 2024, the Company had issued loan participations in the amount of $ 52,930,000 GOODWILL Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 350 requires an annual assessment of the recoverability of goodwill using a two-step process. The first step of the impairment test involves a comparison of the fair value of the reporting unit to its carrying value. If the carrying value is higher than the fair value or there is an indication that impairment may exist, a second step must be performed to compute the amount of the impairment. Management conducted its annual assessment of goodwill impairment and determined that there were no indicators of goodwill impairment and therefore did not record an impairment loss for the period ended June 30, 2024. REVENUE RECOGNITION The Company’s primary sources of revenue are origination fees, servicing fees, underwriting income, and leasing revenue. Origination Fees Loan origination fees represent revenue earned from originating mortgage loans; net of any credits given to the borrower. Loan origination fees generally represent flat, per-loan fee amounts and are deferred and recognized as revenue over the life of the loan. The associated loan origination costs are also deferred and recognized as expense over the life of the loan. The deferred portion of the loan origination fees is netted against the deferred portion of the loan origination costs, which include mortgage broker expenses, and reported as a net deferred revenue liability on the Company’s unaudited consolidated statements of financial condition. 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 interest received from our CM Loans 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. Underwriting Income Underwriting income represents revenue earned by J.W. Korth for underwriting and distribution of the Company’s securities. Revenues from underwriting income are recognized on the settlement date of the trades. Leasing Revenue Leasing revenue represents revenues generated through KDM Stafford, KDM Nagog Park, and KDM Cupples REO for rental income earned from operating leases at rental properties majority-owned and controlled by KDM. Leasing revenue generated from operating leases are recognized over the lease term on a straight-line basis. We recorded rental revenue of $ 1,451,188 LEASES In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842).” The standard requires organizations to recognize right-of-use (“ROU”) assets and lease liabilities on the unaudited consolidated statements of financial condition and disclose key information about leases that were historically classified as operating leases under previous GAAP. As part of the adoption of this standard, the Company recognizes lease liabilities with a corresponding ROU leased asset of approximately the same amount based on the present value of the remaining lease payments pursuant to current leasing standards for existing operating leases. STOCK-BASED COMPENSATION The Company estimates the fair value of share-based payments on the date of grant using a Black-Scholes option pricing model. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur. The Black-Scholes option pricing model requires assumptions for the expected volatility of the share price of our common stock, the expected dividend yield, and a risk-free interest rate over the expected term of the stock-based award. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our stock-based compensation expense could be materially different in the future. Unrealized Gain on Mortgages The net present value of the servicing income is recognized at the time the mortgage is initiated. The changes to the net present value which is determined by the determination of the fair value of the assets are recognized through an adjustment to the unrealized gain/loss in each reporting period This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. We use a third-party to calculate this value. DUE TO CLEARINGHOUSE BROKERS J.W. Korth operates as an SEC and FINRA registered securities broker dealer. The securities transactions are traded through broker clearinghouses and, upon settlement, funds are transferred in and out of the Company’s bank accounts. Unsettled transactions create short-term payables and receivables due to and from the broker clearinghouses. As of June 30, 2024, the Company had a net amount due to the clearinghouse brokers of $ 0 DEPRECIATION Depreciation is provided on a straight-line basis using estimated useful lives of three thirty-nine INCOME TAXES Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the unaudited consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance on deferred tax assets is established when management considers it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax benefits from an uncertain tax position are only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the unaudited consolidated financial statements from such position are measured by the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Interest and penalties related to unrecognized tax benefits are recorded as incurred as a component of income tax expense. DEBT ISSUANCE COSTS Debt issuance costs are amortized over the term of the respective obligation, using the straight-line method. Amortization expense of debt issuance costs is recorded in interest expense in the unaudited consolidated statements of operations.

CONTINGENT LIABILITY

CONTINGENT LIABILITY	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
CONTINGENT LIABILITY	NOTE 3 – CONTINGENT LIABILITY As part of the acquisition of J. W. Korth, the Company agreed to pay (i) the Preferred Capital Interest partners of J.W. Korth accrued and unpaid dividends of 6% July 31, 2020 25% The following table summarizes the unpaid Contingent Liability outstanding as of June 30, 2024: Schedule of unpaid contingent liability outstanding Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners $ 320,500 Contingent liability payment (160,250 ) Accrued quarterly dividends recorded as interest expense through June 30, 2024 4,394 Contingent Liability, net $ 164,644

MORTGAGE SECURED NOTES PAYABLE

MORTGAGE SECURED NOTES PAYABLE	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
MORTGAGE SECURED NOTES PAYABLE	NOTE 4 – MORTGAGE SECURED NOTES PAYABLE As stated in Note 2 the Company funds the majority of the mortgage loans that it makes by issuing MSNs, which are secured by those same mortgages. As of June 30, 2024, and December 31, 2023, the Company had outstanding loans securing MSNs totaling $ 456,742,692 484,484,408 467,548,877 485,154,510 The MSNs are typically five-year interest-only notes with the principal balance due at maturity, but terms can vary. Interest rates on the senior MSNs have ranged from 4.25% 9.25% The following table presents the future scheduled principal payments on the Company’s MSNs: Schedule of future maturities Years ending Future Last 6 months of 2024 $ 96,949,637 2025 83,936,469 2026 104,671,015 2027 74,484,870 2028 74,927,323 Thereafter 32,579,565 Total $ 467,548,879

RESTRICTED CASH

RESTRICTED CASH	6 Months Ended
	Jun. 30, 2024
Disclosure Restricted Cash Abstract
RESTRICTED CASH	NOTE 5 - RESTRICTED CASH The Company maintains multiple 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 authorities and insurance companies. This account corresponds to the Escrow Payable liability. As of June 30, 2024, and December 31, 2023, this account had balances of $ 997,240 151,376 The “In Trust for 2” account receives payments from borrowers, distributes payments to investors, and pays the servicing fees to the Company. This account corresponds to the Due to Investors liability, which is included in other liabilities and payables. As of June 30, 2024, and December 31, 2023, this account had balances of $ 931,128 638,032 The Company maintains an account for payment of quarterly Preferred Series B dividends that has balances of $ 308,750 The Company maintains a cash management account that holds a portion of the restricted cash, which is swept on a regular basis. The account had balances of $ 4,200,000 4,550,000 The Company invests a portion of the restricted cash collected from borrowers in U.S. Treasury Bills with maturities of twelve months or less. The Restricted Investment account had a balance of $ 1,158,247 0 The Company invests a portion of restricted cash from borrowers in a savings account with a balance of $ 250,000 The Company has opened two cash management accounts at J.W. Korth & Company that hold a portion of restricted cash. The balances as of June 30, 2024, were $ 4,930,441 2,876,380 6,299,514 3,556,615

ACQUISITION OF RENTAL PROPERTY

ACQUISITION OF RENTAL PROPERTY	6 Months Ended
	Jun. 30, 2024
Acquisition Of Rental Property
ACQUISITION OF RENTAL PROPERTY	NOTE 6 – ACQUISITION OF RENTAL PROPERTY In November 2022, through a Settlement in Lieu of Foreclosure Agreement, the Company obtained majority ownership and the controlling interest in rental property located in Stafford, Virginia. As part of the agreement, a $9.5 million mortgage held by the Company was assigned to a newly created special-purpose entity, KDM Stafford LLC, which is majority owned and controlled by the Company. The original borrower maintains a minority interest in the special-purpose entity. For the six months ended June 30, 2024, the Company recorded a net loss attributable to the non-controlling interest of $ 24,729 In March 2024, through foreclosure and via a special-purpose entity named KDM Nagog Park LLC, KDM now owns a 3 building office park in Acton, Massachusetts. Similarly, via deed in lieu of foreclosure in April 2024, KDM took ownership of an office in St. Louis, Missouri through a wholly owned subsidiary named KDM Cupples REO LLC. The activity of the wholly owned subsidiaries, KDM Nagog Park LLC and KDM Cupples REO LLC, are included in the Company’s consolidated financial statements beginning in the current quarter. As part of the transaction, the Company recognized a gain of $ 1,045,062 Schedule of fair value of net assets acquired Fair value of Net Assets Acquired: Building and land $ 15,000,000 Acquired operating leases 1,045,062 Mortgage liability assumed (15,000,000 ) Gain on Settlement Agreement $ 1,045,062

COMMITMENTS

COMMITMENTS	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS	NOTE 7 - COMMITMENTS The Company maintains office space in Coral Gables, Florida. In November 2020, the Company signed a lease for office space in Miami, Florida, for a term of sixty-two months with the right to extend the term of the lease for two additional, successive terms of two years upon the same terms and conditions as the initial term. The Company also maintains an office in Lansing, Michigan for J.W. Korth. The net present value of future lease payments pursuant to the operating lease agreements are included in the ROU Leased Asset and the Lease Liability accounts on the unaudited consolidated statements of financial condition. The ROU Leased Asset represents the right to use an underlying asset for the remaining lease term. The Lease Liability represents the obligation to make lease payments pursuant to the terms of the lease agreements. Rental expense for the six months ended June 30, 2024, was $ 148,185 131,128 As of June 30, 2024, the net present value of the future lease liabilities, using the weighted-average discount rate of 4.24% 1.7 419,054 The following is a schedule of the maturities of future lease payments over the remaining life of the operating leases, reconciled to the net present value as of June 30, 2024: Schedule of future minimum rental payments for operating leases Future Lease 2024 $ 132,452 2025 271,470 2026 30,504 Total Lease Payments 434,426 Less: Imputed Interest (15,372 ) Present Value of Lease Liabilities $ 419,054

INDEMNIFICATIONS

INDEMNIFICATIONS	6 Months Ended
	Jun. 30, 2024
Indemnifications
INDEMNIFICATIONS	NOTE 8 - 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 the Company will have to make material payments under these indemnification arrangements, and it has not recorded any contingent liability in the unaudited consolidated financial statements for these indemnifications.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2024
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 9 – RELATED PARTY TRANSACTIONS From time to time the Company purchases MSNs and holds them in its brokerage account. These MSNs are included on the unaudited consolidated statements of financial condition as mortgages owned. Also, from time to time second lien or balance sheet loans may be all or partially funded by entities controlled by KDM directors or employees and are serviced by KDM. In some circumstances where MSNs are in default, in the event a foreclosure becomes necessary, KDM may acquire properties as a deed in lieu of foreclosure. KDM may create special purpose entities to take title to such properties, liquidate them to satisfy any debts due under an MSN, or keep such properties and repay the MSN from its own funds. In addition to KDM Stafford, the Company recently created KDM Nagog Park LLC and KDM Cupples REO, LLC in order to acquire two properties via foreclosure and deed in lieu of foreclosure, respectively. The Company launched a debt fund called KDM Capital Partners LP (“the Fund”) in June of 2024. The general partner of the Fund is KDM Capital Management LLC. The Company has invested $ 2,000,000

DEFERRED REVENUE, NET

DEFERRED REVENUE, NET	6 Months Ended
	Jun. 30, 2024
Revenue Recognition and Deferred Revenue [Abstract]
DEFERRED REVENUE, NET	NOTE 10 – DEFERRED REVENUE, NET Loan origination fees are deferred and recognized as revenue over the life of the respective loan. The associated loan origination costs are also deferred and recognized as expense over the life of the loan. The deferred portion of the loan origination fees is netted against the deferred portion of the loan origination costs and reported as a net deferred revenue liability on the Company’s unaudited consolidated statements of financial condition. The following is a summary of the loan origination fees and costs deferred and amortized for the six months ended June 30, 2024: Schedule of loan originating fees and costs deferred and amortized Deferred Origination Deferred Deferred Deferred Revenue at December 31, 2023 $ 4,980,490 $ (3,254,687 ) $ 1,725,803 New loan deferrals 429,817 (252,292 ) 177,525 - Amortization of deferrals (820,154 ) 517,174 (302,980 ) Deferred Revenue at June 30, 2024 $ 4,590,153 $ (2,989,805 ) $ 1,600,348

EMPLOYEE AND DIRECTOR STOCK OPT

EMPLOYEE AND DIRECTOR STOCK OPTIONS	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
EMPLOYEE AND DIRECTOR STOCK OPTIONS	NOTE 11 – EMPLOYEE AND DIRECTOR STOCK OPTIONS On June 28, 2019, the Company’s Board of Directors adopted the 2019 Stock Option Plan (the “Incentive Plan”). The Incentive Plan provides for the grant of both incentive and non-statutory stock options to key employees, directors or other persons having a service relationship with the Company. Effective December 8, 2022, the Incentive Plan was amended to increase the number of authorized option shares to 3,000,000 0.001 During the quarter ended June 30, 2023, the Company issued options to purchase 15,000 3.00 1.22992 Schedule of estimated fair value of stock options weighted-average assumptions 2023 Risk-free interest rate: 3.62% Expected term: 5.75 Expected dividend yield: 0% Expected volatility: 52.17% For the six months ended June 30, 2024, and June 30, 2023, the Company recorded $ 26,778 29,474 1,905,000 Stock option activity for the six months ended June 30, 2024, is summarized as follows: Schedule of stock option activity 2019 Stock Option Plan: Shares Weighted Weighted Options outstanding at January 1, 2024 1,095,000 $ 1.47 7.64 Granted - - - Exercised Expired or forfeited - - - Options outstanding at June 30, 2024 1,095,000 $ 1.47 7.32 Options exercisable at June 30, 2024 960,000 $ 1.12 7.3 Options expected to vest at June 30, 2024 135,000 $ 3.00 9.0

PREFERRED EQUITY

PREFERRED EQUITY	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
PREFERRED EQUITY	NOTE 12 – PREFERRED EQUITY On September 27, 2019, the Company issued 200,000 0.001 4,750,000 250,000 25 100,000 480,000 160,000 2,375,000 11,856,480 3,896,000 On August 12, 2022, the Company repurchased and retired 480,000 25.25 12,120,480 640,000 On June 29, 2021, the Company issued 19,000 1,000 18,302,500 697,500 The Series B preferred stock is non-convertible and pays cumulative dividends, if and when declared by the Company’s Board of Directors, at a rate of 6.50% pari passu The Company is required to use commercially reasonable efforts to maintain a nationally recognized statistical ratings organization, or NRSRO, rating for so long as any shares of Series B preferred stock remain outstanding. If the Company fails to maintain an NRSRO rating for the Series B preferred stock of at least BBB (or the equivalent thereof), the dividend rate applicable to the Series B preferred stock will be increased by 25 basis points, and in the event the Company fails to maintain an NRSRO rating of at least BBB- (or the equivalent thereof), the dividend rate applicable to the Series B preferred stock will be increased by an additional 25 basis points. The Company’s current corporate rating is BBB. The Series B preferred stock is redeemable at the Company’s option, in whole or in part, on or after June 29, 2026, at a redemption price per share equal to $1,000 per share, plus accrued and unpaid dividends, if any. Subject to applicable law, the Company is required to redeem the Series B preferred stock, in each case at a redemption price equal to $ 1,000 · 10% of the originally-issued shares of Series B preferred stock on June 29, 2027; · 10% of the originally-issued shares of Series B preferred stock on June 29, 2028; · 10% of the originally-issued shares of Series B preferred stock on June 29, 2029; · 20% of the originally-issued shares of Series B preferred stock on June 29, 2030; and · 50% of the originally-issued shares of Series B preferred stock on June 29, 2031. The Company’s obligations to redeem the Series B preferred stock are secured by a security interest on servicing fees, as specified in each mortgage secured note issued by the Company, which is the difference between the interest payable pursuant to the mortgage secured note and the interest receivable pursuant to the related commercial real estate mortgage loan. The requisite holders of Series B preferred stock will be entitled to exercise rights and remedies pursuant to such security interest in the event that the Company does not pay the relevant mandatory redemption price (inclusive of any accrued and unpaid dividends) within thirty (30) days of the applicable redemption date, except with respect to the final redemption date, which is not subject to a thirty (30)-day grace period.

FAIR VALUE

FAIR VALUE	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE	NOTE 13 – FAIR VALUE FASB ASC 820, Fair Value Measurements and Disclosures ASC 820 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 ASC 820 requires the use of observable market data, when available, in making fair value measurements. When inputs used to measure fair value fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level input that is significant to the fair value measurements. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. Valuation Process Mortgages Owned and Mortgage Secured Notes Payable: Mortgage loans for which the Company has the intention and ability to hold for the foreseeable future, or until maturity or payoff, are reported at their outstanding principal balances, net of any unearned income, premiums or discounts. If a decline in fair value below the carrying balance is other-than-temporary, an unrealized impairment loss is recorded, and the loan is recorded at the lower fair value at each reporting period. On March 5, 2024, through a full credit bid in the foreclosure auction, KDM, via its subsidiary KDM Nagog Park LLC, took ownership of the office property securing KDM2021-N015. In April 2024, via a deed in lieu of foreclosure, a wholly owned subsidiary of KDM named KDM Cupples REO LLC took title to the office property securing KDM2021-N022. Both loans went into default in late 2023 due to the departure of major tenants. As of June 30, 2024, it was determined that the value of these two mortgages were impaired and recorded on the Statement of Operations in the amount of $ 12,660,000 15,000,000 Due to the fact that the Company issues notes secured directly by underlying loans, our assets and liabilities in this category have similar 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, which is being recognized through net income at each reporting period 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, it has a limited basis to predict prepayment rates and default rates, but have engaged a third party, MIAC Analytics, to assist us in our valuation of this asset. The amount is included on the unaudited consolidated statements of financial condition as “Mortgage Servicing Rights, at Fair Value.” Securities J. W. Korth owns 225,000 1 56,280 28,720 KDM also holds a small amount of its own MSNs in an account in which it will hold MSNs it may buy from time to time to provide liquidity to clients of J.W. Korth. These bonds are carried at the published statement values. Fair Value Disclosure The following tables display the Company’s assets and liabilities measured at fair value on a recurring basis: Schedule of fair value, assets and liabilities measured on recurring basis June 30, 2024 Total Level I Level II Level III Financial Assets Mortgages Owned $ 456,742,692 $ - $ 456,742,692 $ - Mortgage Servicing 8,108,634 - - 8,108,634 Portfolio Loans 5,147,805 - 5,147,805 - Non-MSN Securities 56,280 - - 56,280 Total Financial Assets $ 470,055,411 $ - $ 461,890,497 $ 8,164,914 Financial Liabilities Mortgage Secured Notes Payable $ 467,548,877 $ - $ 467,548,877 $ - Warehouse Line of Credit 9,542,997 - 9,542,997 - Total Financial Liabilities $ 477,091,874 $ - $ 477,091,874 $ - December 31, 2023 Financial Assets Mortgages Owned $ 484,484,408 $ - $ 484,484,408 $ - Mortgage Servicing 9,245,877 - - 9,245,877 Portfolio Loans 7,674,198 - 7,674,198 - Non-MSN Securities 85,000 - - 85,000 Total Financial Assets $ 501,489,483 $ - $ 492,158,606 $ 9,330,877 Financial Liabilities Mortgage Secured Notes Payable $ 485,154,510 $ - $ 485,154,510 $ - Securities Sold Short 2,565,082 2,565,082 Warehouse Line of Credit 11,264,436 - 11,264,436 - Total Financial Liabilities $ 498,984,028 $ - $ 498,984,028 $ - Fair Value Measurements Changes in Fair Value Measurements for the six months ended June 30, 2024 The following table presents a reconciliation of changes in Level 3 assets and liabilities reported in the unaudited consolidated statement of financial condition for June 30, 2024: Schedule of statements of financial condition Changes in assets: Period ended June 30, 2024 Mortgage Servicing Value Non-MSN Securities Total Value Beginning balance at January 1, 2024 $ 9,245,877 $ 85,000 $ 9,330,877 Sales - - - Unrealized Gain from newly issued mortgages 400,256 - 400,256 Fair Value adjustment (1,537,499 ) (28,720 ) (1,566,219 ) Ending balance at June 30, 2024 $ 8,108,634 $ 56,280 $ 8,164,914 The Company’s policy for recording transfers between levels of the fair value hierarchy is to recognize such transfers as of the financial statement date. For the six months ended June 30, 2024, 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 June 30, 2024: Schedule of quantitative information Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 8,108,634 Net Present Value Prepayment Discount 10.55 % Non-MSN Securities $ 56,280 Net Present Value Discount rate 15.00 %

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 14 – INCOME TAXES The income tax benefit was $ 482,857 24.9% 1,941,286 21% The income tax benefit was $ 171,913 23% 740,873 21%

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 15 – PROPERTY AND EQUIPMENT Property and Equipment are summarized as follows: Schedule of property, plant and equipment June 30, 2024 Land & Building $ 32,900,000 Equipment 324,381 Furniture and fixtures 193,230 33,417,611 Accumulated depreciation (1,082,645 ) Net Property Equipment $ 32,334,966 December 31, 2023 Land & Building $ 17,900,000 Equipment 300,472 Furniture and fixtures 184,591 18,385,063 Accumulated depreciation (710,104 ) Net Property Equipment $ 17,674,959 Depreciation expenses for the periods ending June 30, 2024, and June 30, 2023, were $ 571,042 332,159

WAREHOUSE LINE OF CREDIT

WAREHOUSE LINE OF CREDIT	6 Months Ended
	Jun. 30, 2024
Warehouse Line Of Credit
WAREHOUSE LINE OF CREDIT	NOTE 16 – WAREHOUSE LINE OF CREDIT On March 31, 2022, The Company entered into a Master Repurchase Agreement and Securities Contract (the “ Agreement Signature Line The Agreement provides that from time to time the Company may receive proceeds under the Line to originate first priority lien mortgages on real property. Signature will purchase the first lien commercial real estate mortgage loans (the “ Loans The Line has a back-up security interest grant secured by collateral specified in the Agreement in the event the Agreement is recharacterized as a secured loan. The Agreement contains financial covenants of the Company, including limitations on the Company’s incurrence of certain debt and requirements that the Company maintain certain financial ratios and minimum net worth. The Line is floating rate and both the haircut percentage and SOFR-linked interest rate spread vary according to property type and time on the line. The Line offers up to 75% leverage on investment grade loans and is designed for 30 to 90 day hold periods but can accommodate up to a 12-month holding period, with decreasing leverage as time passes. In connection with entering into the Line, the Company incurred loan fees of approximately $ 1,589,783 On March 20, 2023, Signature Bank announced that much of its assets, including our warehouse line, would now operate under the New York Community Bancorp’s Flagstar Bank, N.A. The Agreement was terminated on February 22, 2024. Fees and expenses associated with this transaction that were originally amortized over the 3-year term of the facility were realized upon cancellation and are captured in the Interest Expense caption on the Company’s consolidated statement of operations. On October 13, 2023, KDM MFB LLC, a Delaware limited liability company (the “KDM MFB”), a newly formed and wholly owned subsidiary of Korth Direct Mortgage Inc. (the “Company”) entered into a $100,000,000 Master Repurchase and Securities Contract credit facility with Churchill MRA Funding I LLC (the “Agreement”). The Company vis a vis KDM MFB, will use the credit facility provided by the Agreement (the “MFB Line”) to finance the Company’s expansion of its lending operations in multi-family and multifamily bridge financing. See Form 8-k filed October 19, 2023 for more information. As of December 31, 2023, the Company had a balance of $ 600,000 57,729 As of June 30, 2024, the Company had a balance of $ 9,260,720 359,107

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2024
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 17 – SUBSEQUENT EVENTS The Company has evaluated all events or transactions for potential recognition or disclosure in the unaudited consolidated financial statements through August 14, 2024, which is the date that the unaudited consolidated financial statements were available to be issued. During this period, the following events requiring disclosure. - The Company paid off its contingent liability of $ 164,644 - The Company closed an additional $ 12,500,000 - The Fund received additional $ 11,700,000

SUMMARY OF SIGNIFICANT ACCOUN_2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
PRINCIPLES OF CONSOLIDATION	PRINCIPLES OF CONSOLIDATION The accompanying unaudited consolidated financial statements include the accounts of the Company and the accounts of the Company’s wholly owned subsidiaries J.W. Korth, KDM MFB LLC, KDM Funding I LLC, KDM Nagog Park LLC, KDM Cupples REO LLC, KDM Capital Management LLC, KDM Capital Partners LP, and KDM Stafford LLC, in which KDM owns a controlling interest.
BASIS OF ACCOUNTING	BASIS OF ACCOUNTING The accompanying unaudited consolidated financial statements have been prepared on the accrual basis of accounting in accordance with Generally Accepted Accounting Principles (“GAAP”). The accompanying unaudited consolidated financial statements have also been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).
USE OF ESTIMATES	USE OF ESTIMATES The preparation of unaudited consolidated 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 unaudited consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
CASH, CASH EQUIVALENTS AND RESTRICTED CASH	CASH, CASH EQUIVALENTS AND RESTRICTED CASH For purposes of the statements of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. The following table provides a reconciliation of cash, cash equivalents, and restricted cash to amounts shown in the unaudited consolidated statements of cash flows as of June 30, 2024, and 2023: Schedule of cash and cash equivalents 2024 2023 Cash and Cash Equivalents $ 3,521,162 $ 8,273,944 Restricted Cash 14,509,587 19,770,822 $ 18,030,749 $ 28,044,766 The Company maintains cash and restricted cash balances at financial institutions in excess of federally insured limits. The Company has not experienced any losses related to these balances. The Federal Deposit Insurance Corporation insures eligible accounts up to $ 250,000
MORTGAGE VALUATION	MORTGAGE VALUATION Mortgages that are current are carried at the principal value owed by the borrower as of the date of the unaudited consolidated financial statements, according to the amortization schedule for the loans, which management believes to be the best estimate of fair value. Mortgages owned as of the date of these unaudited consolidated financial statements are current. The net present value of the servicing revenue is recorded as mortgage servicing rights at fair value on the Unaudited Consolidated Statements of Financial Condition and the change in the fair value is recognized on the Unaudited Consolidated Statements of Operations as an unrealized gain on mortgages.
MORTGAGE SECURED NOTES	MORTGAGE SECURED NOTES The Company primarily funds the mortgage loans (”CM Loans”) that it makes by issuing MSNs in series, each of which MSN series is secured by the mortgage or mortgages funded from proceeds of the MSN series. Our MSNs have been funded in multiple ways, including private placements, SEC registered offerings, loan participations, and Rule 144A offerings. As of June 30, 2024, the Company has issued MSNs secured by these loans in the amount of $ 597,471,250 140,728,558
PORTFOLIO LOANS	PORTFOLIO LOANS The Company recognizes loans made with its own capital, or pieces of those not securitized or sold via participation, under the caption “Portfolio Loans” on the unaudited consolidated statements of financial condition. This number also includes the cash we have invested in loans on our warehouse line as “haircut capital.” As of June 30, 2024, the Company had issued Portfolio Loans in the amount of $ 49,589,472 5,147,805
LOANS HELD FOR SALE	LOANS HELD FOR SALE The Company purchases small balance commercial loans classified as held for sale which are carried at the lower of amortized cost basis or market value, where gains and losses are recognized upon sale as realized loss on loans held for sale on the Statements of Operations which is $ 141,647
PARTICIPATIONS	PARTICIPATIONS From time to time the Company sells all or part of its mortgage loans as loan participations to banks or other lending institutions that prefer to hold their mortgage investments in that manner. As of June 30, 2024, the Company had issued loan participations in the amount of $ 52,930,000
GOODWILL	GOODWILL Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Section 350 requires an annual assessment of the recoverability of goodwill using a two-step process. The first step of the impairment test involves a comparison of the fair value of the reporting unit to its carrying value. If the carrying value is higher than the fair value or there is an indication that impairment may exist, a second step must be performed to compute the amount of the impairment. Management conducted its annual assessment of goodwill impairment and determined that there were no indicators of goodwill impairment and therefore did not record an impairment loss for the period ended June 30, 2024.
REVENUE RECOGNITION	REVENUE RECOGNITION The Company’s primary sources of revenue are origination fees, servicing fees, underwriting income, and leasing revenue. Origination Fees Loan origination fees represent revenue earned from originating mortgage loans; net of any credits given to the borrower. Loan origination fees generally represent flat, per-loan fee amounts and are deferred and recognized as revenue over the life of the loan. The associated loan origination costs are also deferred and recognized as expense over the life of the loan. The deferred portion of the loan origination fees is netted against the deferred portion of the loan origination costs, which include mortgage broker expenses, and reported as a net deferred revenue liability on the Company’s unaudited consolidated statements of financial condition. 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 interest received from our CM Loans 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. Underwriting Income Underwriting income represents revenue earned by J.W. Korth for underwriting and distribution of the Company’s securities. Revenues from underwriting income are recognized on the settlement date of the trades. Leasing Revenue Leasing revenue represents revenues generated through KDM Stafford, KDM Nagog Park, and KDM Cupples REO for rental income earned from operating leases at rental properties majority-owned and controlled by KDM. Leasing revenue generated from operating leases are recognized over the lease term on a straight-line basis. We recorded rental revenue of $ 1,451,188
LEASES	LEASES In February 2016, the FASB issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases (Topic 842).” The standard requires organizations to recognize right-of-use (“ROU”) assets and lease liabilities on the unaudited consolidated statements of financial condition and disclose key information about leases that were historically classified as operating leases under previous GAAP. As part of the adoption of this standard, the Company recognizes lease liabilities with a corresponding ROU leased asset of approximately the same amount based on the present value of the remaining lease payments pursuant to current leasing standards for existing operating leases.
STOCK-BASED COMPENSATION	STOCK-BASED COMPENSATION The Company estimates the fair value of share-based payments on the date of grant using a Black-Scholes option pricing model. Compensation cost is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize forfeitures as they occur. The Black-Scholes option pricing model requires assumptions for the expected volatility of the share price of our common stock, the expected dividend yield, and a risk-free interest rate over the expected term of the stock-based award. The assumptions used in calculating the fair value of stock-based awards represent our best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if factors change and we use different assumptions, our stock-based compensation expense could be materially different in the future.
Unrealized Gain on Mortgages	Unrealized Gain on Mortgages The net present value of the servicing income is recognized at the time the mortgage is initiated. The changes to the net present value which is determined by the determination of the fair value of the assets are recognized through an adjustment to the unrealized gain/loss in each reporting period This value uses several inputs that are highly subjective including: discount rate, prepayment rate, the current interest rate environment, and default rate assumptions. We use a third-party to calculate this value.
DUE TO CLEARINGHOUSE BROKERS	DUE TO CLEARINGHOUSE BROKERS J.W. Korth operates as an SEC and FINRA registered securities broker dealer. The securities transactions are traded through broker clearinghouses and, upon settlement, funds are transferred in and out of the Company’s bank accounts. Unsettled transactions create short-term payables and receivables due to and from the broker clearinghouses. As of June 30, 2024, the Company had a net amount due to the clearinghouse brokers of $ 0
DEPRECIATION	DEPRECIATION Depreciation is provided on a straight-line basis using estimated useful lives of three thirty-nine
INCOME TAXES	INCOME TAXES Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the unaudited consolidated financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance on deferred tax assets is established when management considers it is more likely than not that some portion or all of the deferred tax assets will not be realized. Tax benefits from an uncertain tax position are only recognized if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the unaudited consolidated financial statements from such position are measured by the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. Interest and penalties related to unrecognized tax benefits are recorded as incurred as a component of income tax expense.
DEBT ISSUANCE COSTS	DEBT ISSUANCE COSTS Debt issuance costs are amortized over the term of the respective obligation, using the straight-line method. Amortization expense of debt issuance costs is recorded in interest expense in the unaudited consolidated statements of operations.

SUMMARY OF SIGNIFICANT ACCOUN_3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Schedule of cash and cash equivalents	Schedule of cash and cash equivalents 2024 2023 Cash and Cash Equivalents $ 3,521,162 $ 8,273,944 Restricted Cash 14,509,587 19,770,822 $ 18,030,749 $ 28,044,766

CONTINGENT LIABILITY (Tables)

CONTINGENT LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of unpaid contingent liability outstanding	Schedule of unpaid contingent liability outstanding Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners $ 320,500 Contingent liability payment (160,250 ) Accrued quarterly dividends recorded as interest expense through June 30, 2024 4,394 Contingent Liability, net $ 164,644

MORTGAGE SECURED NOTES PAYABLE

MORTGAGE SECURED NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of future maturities	Schedule of future maturities Years ending Future Last 6 months of 2024 $ 96,949,637 2025 83,936,469 2026 104,671,015 2027 74,484,870 2028 74,927,323 Thereafter 32,579,565 Total $ 467,548,879

ACQUISITION OF RENTAL PROPERTY

ACQUISITION OF RENTAL PROPERTY (Tables)	6 Months Ended
	Jun. 30, 2024
Acquisition Of Rental Property
Schedule of fair value of net assets acquired	Schedule of fair value of net assets acquired Fair value of Net Assets Acquired: Building and land $ 15,000,000 Acquired operating leases 1,045,062 Mortgage liability assumed (15,000,000 ) Gain on Settlement Agreement $ 1,045,062

COMMITMENTS (Tables)

COMMITMENTS (Tables)	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Schedule of future minimum rental payments for operating leases	Schedule of future minimum rental payments for operating leases Future Lease 2024 $ 132,452 2025 271,470 2026 30,504 Total Lease Payments 434,426 Less: Imputed Interest (15,372 ) Present Value of Lease Liabilities $ 419,054

DEFERRED REVENUE, NET (Tables)

DEFERRED REVENUE, NET (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue Recognition and Deferred Revenue [Abstract]
Schedule of loan originating fees and costs deferred and amortized	Schedule of loan originating fees and costs deferred and amortized Deferred Origination Deferred Deferred Deferred Revenue at December 31, 2023 $ 4,980,490 $ (3,254,687 ) $ 1,725,803 New loan deferrals 429,817 (252,292 ) 177,525 - Amortization of deferrals (820,154 ) 517,174 (302,980 ) Deferred Revenue at June 30, 2024 $ 4,590,153 $ (2,989,805 ) $ 1,600,348

EMPLOYEE AND DIRECTOR STOCK O_2

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Schedule of estimated fair value of stock options weighted-average assumptions	Schedule of estimated fair value of stock options weighted-average assumptions 2023 Risk-free interest rate: 3.62% Expected term: 5.75 Expected dividend yield: 0% Expected volatility: 52.17%
Schedule of stock option activity	Schedule of stock option activity 2019 Stock Option Plan: Shares Weighted Weighted Options outstanding at January 1, 2024 1,095,000 $ 1.47 7.64 Granted - - - Exercised Expired or forfeited - - - Options outstanding at June 30, 2024 1,095,000 $ 1.47 7.32 Options exercisable at June 30, 2024 960,000 $ 1.12 7.3 Options expected to vest at June 30, 2024 135,000 $ 3.00 9.0

FAIR VALUE (Tables)

FAIR VALUE (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of fair value, assets and liabilities measured on recurring basis	Schedule of fair value, assets and liabilities measured on recurring basis June 30, 2024 Total Level I Level II Level III Financial Assets Mortgages Owned $ 456,742,692 $ - $ 456,742,692 $ - Mortgage Servicing 8,108,634 - - 8,108,634 Portfolio Loans 5,147,805 - 5,147,805 - Non-MSN Securities 56,280 - - 56,280 Total Financial Assets $ 470,055,411 $ - $ 461,890,497 $ 8,164,914 Financial Liabilities Mortgage Secured Notes Payable $ 467,548,877 $ - $ 467,548,877 $ - Warehouse Line of Credit 9,542,997 - 9,542,997 - Total Financial Liabilities $ 477,091,874 $ - $ 477,091,874 $ - December 31, 2023 Financial Assets Mortgages Owned $ 484,484,408 $ - $ 484,484,408 $ - Mortgage Servicing 9,245,877 - - 9,245,877 Portfolio Loans 7,674,198 - 7,674,198 - Non-MSN Securities 85,000 - - 85,000 Total Financial Assets $ 501,489,483 $ - $ 492,158,606 $ 9,330,877 Financial Liabilities Mortgage Secured Notes Payable $ 485,154,510 $ - $ 485,154,510 $ - Securities Sold Short 2,565,082 2,565,082 Warehouse Line of Credit 11,264,436 - 11,264,436 - Total Financial Liabilities $ 498,984,028 $ - $ 498,984,028 $ -
Schedule of statements of financial condition	Schedule of statements of financial condition Changes in assets: Period ended June 30, 2024 Mortgage Servicing Value Non-MSN Securities Total Value Beginning balance at January 1, 2024 $ 9,245,877 $ 85,000 $ 9,330,877 Sales - - - Unrealized Gain from newly issued mortgages 400,256 - 400,256 Fair Value adjustment (1,537,499 ) (28,720 ) (1,566,219 ) Ending balance at June 30, 2024 $ 8,108,634 $ 56,280 $ 8,164,914
Schedule of quantitative information	Schedule of quantitative information Investment type Fair Value Valuation technique Unobservable inputs Values Mortgage servicing $ 8,108,634 Net Present Value Prepayment Discount 10.55 % Non-MSN Securities $ 56,280 Net Present Value Discount rate 15.00 %

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2024
Property, Plant and Equipment [Abstract]
Schedule of property, plant and equipment	Schedule of property, plant and equipment June 30, 2024 Land & Building $ 32,900,000 Equipment 324,381 Furniture and fixtures 193,230 33,417,611 Accumulated depreciation (1,082,645 ) Net Property Equipment $ 32,334,966 December 31, 2023 Land & Building $ 17,900,000 Equipment 300,472 Furniture and fixtures 184,591 18,385,063 Accumulated depreciation (710,104 ) Net Property Equipment $ 17,674,959

SUMMARY OF SIGNIFICANT ACCOUN_4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Accounting Policies [Abstract]
Cash and Cash Equivalents	$ 3,521,162	$ 4,844,873	$ 8,273,944
Restricted Cash	14,509,587	$ 16,856,935	19,770,822
Cash, Cash Equivlents and Restricted Cash	$ 18,030,749		$ 28,044,766

SUMMARY OF SIGNIFICANT ACCOUN_5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	6 Months Ended
	Jun. 30, 2024 USD ($)
Property, Plant and Equipment [Line Items]
FDIC Insured Amount	$ 250,000
Mortgage secured notes funded	597,471,250
Mortgage secured notes redeemed	140,728,558
Portfolio loans issued	49,589,472
Portfolio loan currently holds	5,147,805
Loans held for sale	141,647
Loan participations	52,930,000
Rental revenue	1,451,188
Due to clearinghouse brokers	$ 0
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	three
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	thirty-nine

CONTINGENT LIABILITY (Details)

CONTINGENT LIABILITY (Details) - USD ($)		6 Months Ended
	Aug. 14, 2024	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Contingent liability to redeem J.W. Korth Preferred Capital Interest Partners		$ 320,500
Contingent liability payment	$ 164,644	(160,250)
Accrued quarterly dividends recorded as interest expense through June 30, 2024		4,394
Contingent Liability, net		$ 164,644

CONTINGENT LIABILITY (Details N

CONTINGENT LIABILITY (Details Narrative) - Michigan Limited Partnership [Member]	6 Months Ended
	Jun. 30, 2024
Restructuring Cost and Reserve [Line Items]
Dividend rate	6%
Dividends payable, date to be paid	Jul. 31, 2020
Series A Preferred Stock [Member]
Restructuring Cost and Reserve [Line Items]
Dividend rate	25%

MORTGAGE SECURED NOTES PAYABL_2

MORTGAGE SECURED NOTES PAYABLE (Details)	Jun. 30, 2024 USD ($)
Debt Disclosure [Abstract]
Last 6 months of 2024	$ 96,949,637
2025	83,936,469
2026	104,671,015
2027	74,484,870
2028	74,927,323
Thereafter	32,579,565
Total	$ 467,548,879

MORTGAGE SECURED NOTES PAYABL_3

MORTGAGE SECURED NOTES PAYABLE (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Funded loans	$ 456,742,692	$ 484,484,408
Secured loans	$ 467,548,877	$ 485,154,510
Minimum [Member]
Debt Instrument [Line Items]
Interest Percentage	4.25%
Maximum [Member]
Debt Instrument [Line Items]
Interest Percentage	9.25%

RESTRICTED CASH (Details Narrat

RESTRICTED CASH (Details Narrative) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Cash	$ 4,200,000	$ 4,550,000
Restricted Investment balance	1,158,247	0
Restricted cash collected from borrowers in savings account	250,000	250,000
J.W. Korth [Member] | Cash Payment 1 [Member]
Restricted cash	4,930,441	6,299,514
J.W. Korth [Member] | Cash Payment 2 [Member]
Restricted cash	2,876,380	3,556,615
Series B Preferred Stock [Member]
Escrow deposit	308,750	308,750
In Trust For 1 [Member]
Account balance	997,240	151,376
In Trust For 2 [Member]
Account balance	$ 931,128	$ 638,032

ACQUISITION OF RENTAL PROPERT_2

ACQUISITION OF RENTAL PROPERTY (Details) - Lieu Of Foreclosure Agreement [Member]	1 Months Ended
	Mar. 31, 2024 USD ($)
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Building and land	$ 15,000,000
Acquired operating leases	1,045,062
Mortgage liability assumed	(15,000,000)
Gain on Settlement Agreement	$ 1,045,062

ACQUISITION OF RENTAL PROPERT_3

ACQUISITION OF RENTAL PROPERTY (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Mar. 31, 2024	Jun. 30, 2024	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Net income attributable to non-controlling interest		$ (24,729)	$ (17,875)
Lieu Of Foreclosure Agreement [Member]
Restructuring Cost and Reserve [Line Items]
Recognized a gain on fair value	$ 1,045,062
KDM Stafford LLC [Member]
Restructuring Cost and Reserve [Line Items]
Net income attributable to non-controlling interest		$ 24,729

COMMITMENTS (Details)

COMMITMENTS (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
2024	$ 132,452
2025	271,470
2026	30,504
Total Lease Payments	434,426
Less: Imputed Interest	(15,372)
Present Value of Lease Liabilities	$ 419,054	$ 540,266

COMMITMENTS (Details Narrative)

COMMITMENTS (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Rent expense	$ 148,185	$ 131,128
Weighted-average discount rate	4.24%
Weighted-average remaining life	1 year 8 months 12 days
Present value of lease liabilities	$ 419,054		$ 540,266

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative)	Jun. 30, 2024 USD ($)
Related Party Transactions [Abstract]
Investments	$ 2,000,000

DEFERRED REVENUE, NET (Details)

DEFERRED REVENUE, NET (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Deferred origination fees	$ 4,590,153	$ 4,980,490
Deferred origination costs	(2,989,805)	(3,254,687)
Deferred revenue, net	1,600,348	$ 1,725,803
New Loan Deferrals [Member]
Deferred origination fees	429,817
Deferred origination costs	(252,292)
Deferred revenue, net	177,525
Amortization Of Deferrals [Member]
Deferred origination fees	(820,154)
Deferred origination costs	517,174
Deferred revenue, net	$ (302,980)

EMPLOYEE AND DIRECTOR STOCK O_3

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]
Risk-free interest rate:	3.62%
Expected term:	5 years 9 months
Expected dividend yield:	0%
Expected volatility:	52.17%

EMPLOYEE AND DIRECTOR STOCK O_4

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details 1)	6 Months Ended
	Jun. 30, 2024 $ / shares shares
Share-Based Payment Arrangement [Abstract]
Options outstanding number, beginning balance | shares	1,095,000
Weighted average exercise price, beginning balance | $ / shares	$ 1.47
Weighted remaining contractual life (years), beginning	7 years 7 months 20 days
Options granted number | shares
Weighted average exercise price granted | $ / shares
Options expired or forfeited number | shares
Weighted average exercise price expired or forfeited | $ / shares
Options outstanding number, ending balance | shares	1,095,000
Options, outstanding, weighted average exercise price, ending balance | $ / shares	$ 1.47
Weighted remaining contractual life (years), ending	7 years 3 months 25 days
Options exercisable number | shares	960,000
Options exercisable weighted average exercise price | $ / shares	$ 1.12
Option exercisable, weighted remaining contractual life (years)	7 years 3 months 18 days
Options expected to vest number | shares	135,000
Weighted average exercise price expected to vest | $ / shares	$ 3
Options expected to vest, weighted remaining contractual life (years)	9 years

EMPLOYEE AND DIRECTOR STOCK O_5

EMPLOYEE AND DIRECTOR STOCK OPTIONS (Details Narrative) - USD ($)		3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 28, 2019	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares to purchase		15,000
Common stock, par value (in dollars per share)		$ 0.001	$ 0.001		$ 0.001
Share price (in dollars per share)		$ 3	$ 3
Weighted-average grant date fair values					$ 1.22992
Stock based compensation			$ 26,778	$ 29,474
Common stock available to be issued		1,905,000	1,905,000
Director [Member] | N 2019 Stock Option Plan [Member]
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]
Number of shares to purchase	3,000,000
Common stock, par value (in dollars per share)	$ 0.001

PREFERRED EQUITY (Details Narra

PREFERRED EQUITY (Details Narrative) - USD ($)				1 Months Ended			3 Months Ended	6 Months Ended
	Aug. 12, 2022	Jun. 29, 2021	Sep. 27, 2019	Mar. 23, 2023	Jun. 28, 2022	Sep. 15, 2021	Jun. 30, 2024	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Class of Stock [Line Items]
Share price							$ 3	$ 3
Series A preferred stock (in shares)							15,000
Interest expense								$ 709,778	$ 793,307
Series A Cumulative Perpetual Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Issue of shares			200,000
Share price			$ 0.001
Proceeds from issuance of shares			$ 4,750,000
Interest expense	$ 640,000
Series A Cumulative Perpetual Convertible Preferred Stock [Member] | Subsidiaries [Member]
Class of Stock [Line Items]
Prepaid Expenses			250,000
Amount of conversion			$ 25
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Shares sold				160,000	480,000	100,000
Proceeds from convertible debt				$ 3,896,000	$ 11,856,480	$ 2,375,000
Series A preferred stock (in shares)	480,000
Preferred stock, par value	$ 25.25						$ 0.001	$ 0.001		$ 0.001
Series A preferred stock value	$ 12,120,480
Series B Cumulative Perpetual Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Issue of shares		19,000
Proceeds from issuance of shares		$ 18,302,500
Stock issuance cost		$ 697,500
Preferred Stock, Redemption Price Per Share							1,000	1,000
Series B Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, par value		$ 1,000					$ 0.001	$ 0.001		$ 0.001
Percentage of dividend payable if and when declared							6.50%	6.50%

FAIR VALUE (Details)

FAIR VALUE (Details) - Fair Value, Recurring [Member] - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Owned	$ 456,742,692	$ 484,484,408
Mortgage Servicing	8,108,634	9,245,877
Portfolio Loans	5,147,805	7,674,198
Non- MSN Securities	56,280	85,000
Total Financial Assets	470,055,411	501,489,483
Mortgage Secured Notes Payable	467,548,877	485,154,510
Securities Sold Short		2,565,082
Warehouse Line of Credit	9,542,997	11,264,436
Total Financial Liabilities	477,091,874	498,984,028
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Owned
Mortgage Servicing
Portfolio Loans
Non- MSN Securities
Total Financial Assets
Mortgage Secured Notes Payable
Warehouse Line of Credit
Total Financial Liabilities
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Owned	456,742,692	484,484,408
Mortgage Servicing
Portfolio Loans	5,147,805	7,674,198
Non- MSN Securities
Total Financial Assets	461,890,497	492,158,606
Mortgage Secured Notes Payable	467,548,877	485,154,510
Securities Sold Short		2,565,082
Warehouse Line of Credit	9,542,997	11,264,436
Total Financial Liabilities	477,091,874	498,984,028
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Owned
Mortgage Servicing	8,108,634	9,245,877
Portfolio Loans
Non- MSN Securities	56,280	85,000
Total Financial Assets	8,164,914	9,330,877
Mortgage Secured Notes Payable
Warehouse Line of Credit
Total Financial Liabilities

FAIR VALUE (Details 1)

FAIR VALUE (Details 1)	6 Months Ended
	Jun. 30, 2024 USD ($)
Debt Instrument [Line Items]
Beginning balance at beginning	$ 9,330,877
Sales
Unrealized Gain from newly issued mortgages	400,256
Fair Value adjustment	(1,566,219)
Ending balance at ending	8,164,914
Mortgages [Member]
Debt Instrument [Line Items]
Beginning balance at beginning	9,245,877
Sales
Unrealized Gain from newly issued mortgages	400,256
Fair Value adjustment	(1,537,499)
Ending balance at ending	8,108,634
Non Msn Securities [Member]
Debt Instrument [Line Items]
Beginning balance at beginning	85,000
Sales
Unrealized Gain from newly issued mortgages
Fair Value adjustment	(28,720)
Ending balance at ending	$ 56,280

FAIR VALUE (Details 2)

FAIR VALUE (Details 2) - Fair Value, Recurring [Member]	6 Months Ended
	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 8,108,634	$ 9,245,877
Mortgage Servicing [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 8,108,634
Valuation technique	Net Present Value
Unobservable inputs	Prepayment Discount
Values	10.55
Non Msn Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 56,280
Valuation technique	Net Present Value
Unobservable inputs	Discount rate
Values	15

FAIR VALUE (Details Narrative)

FAIR VALUE (Details Narrative)	6 Months Ended
	Jun. 30, 2024 USD ($) $ / shares shares
Debt Instrument [Line Items]
Impairment of foreclosed properties	$ 12,660,000
Foreclosed properties	$ 15,000,000
Securities [Member] | J.W. Korth [Member]
Debt Instrument [Line Items]
Default bonds shares | shares	225,000
Default bonds par value | $ / shares	$ 1
Default bonds amount	$ 56,280
Proceeds from securities	$ 28,720

INCOME TAXES (Details Narrative

INCOME TAXES (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Income Tax Disclosure [Abstract]
Income tax benefit	$ 482,857	$ 171,913
Effective tax rate	24.90%	23%
Income (loss) before income taxes	$ 1,941,286	$ 740,873
Federal statutory rate	21%	21%

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Total	$ 33,417,611	$ 18,385,063
Accumulated depreciation	(1,082,645)	(710,104)
Net property equipment	32,334,966	17,674,959
Land and Building [Member]
Property, Plant and Equipment [Line Items]
Total	32,900,000	17,900,000
Equipment [Member]
Property, Plant and Equipment [Line Items]
Total	324,381	300,472
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Total	$ 193,230	$ 184,591

PROPERTY AND EQUIPMENT (Detai_2

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Property, Plant and Equipment [Abstract]
Depreciation Expense	$ 571,042	$ 332,159

WAREHOUSE LINE OF CREDIT (Detai

WAREHOUSE LINE OF CREDIT (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Loans fees	$ 1,589,783
Line of credit balance	9,260,720
Loan fees	359,107
MFB Line [Member]
Warehouse costs		$ 600,000
Interest expense	$ 57,729

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)		6 Months Ended
	Aug. 14, 2024	Jun. 30, 2024
Subsequent Events [Abstract]
Contingent liability	$ 164,644	$ (160,250)
Closing of additional debt	12,500,000
Commitments received	$ 11,700,000