Direct Investment (FEPI) 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	13-May-15
Document and Entity Information
Entity Registrant Name	FIRST EQUITY PROPERTIES INC
Entity Trading Symbol	FEPI
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Entity Central Index Key	726516
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding		1,057,628
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONSOLIDATED_BALANCE_SHEETS_un

CONSOLIDATED BALANCE SHEETS (unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Assets {1}
Notes receivable and accrued interest - related parties	$2,152,090	$2,172,752
Cash and cash equivalents	1,207	1,776
Total assets	2,153,297	2,174,528
Liabilities and Shareholders' Equity
Notes payable and accrued interest - related parties	837,149	877,850
Accounts payable - other	18,848	3,177
Accounts payable - related parties	426,554	417,555
Total liabilities	1,282,551	1,298,582
Shareholders' equity
Common stock, $0.01 par value; 40,000,000 shares authorized; 1,057,628 issued and outstanding	10,576	10,576
Preferred stock, $0.01 par value; 4,960,000 shares authorized; none issued or outstanding	0
Paid in capital	1,376,682	1,376,682
Retained earnings (deficit)	-516,512	-511,312
Total shareholders' equity	870,746	875,946
Total liabilities and shareholders' equity	$2,153,297	$2,174,528

CONSOLIDATED_BALANCE_SHEETS_PA

CONSOLIDATED BALANCE SHEETS PARENTHETICALS (USD $)	Mar. 31, 2015	Dec. 31, 2014
Parentheticals
Common Stock, par value	$0.01	$0.01
Common Stock, shares authorized	40,000,000	40,000,000
Common Stock, shares issued	1,057,628	1,057,628
Common Stock, shares outstanding	1,057,628	1,057,628
Preferred Stock, par value	$0.01	$0.01
Preferred Stock, shares authorized	4,960,000	4,960,000

CONSOLIDATED_STATEMENT_OF_OPER

CONSOLIDATED STATEMENT OF OPERATIONS (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenue
Interest income - from related parties	$52,090	$57,162
Total income	52,090	57,162
General and administrative - related parties	15,000	15,000
General and administrative	4,896	2,083
Legal and professional fees	15,602	9,132
Total operating expenses	35,498	26,215
Income (loss) before interest expense and taxes	16,592	30,947
Interest expense - related parties	-21,792	-33,784
Income (loss) before income taxes	-5,200	-2,837
Income tax expense		0
Net income (loss) applicable to common shareholders	($5,200)	($2,837)
Earnings (loss) per share	($0.01)
Weighted average shares outstanding	1,057,628	1,057,628

CONSOLIDATED_STATEMENT_OF_CHAN

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (unaudited) (USD $)	Common Stock Shares	Common Stock Amount	Paid in Capital	Retained Earnings (Deficit)	Total Equity
				USD ($)	USD ($)
Balances at Jan. 01, 2015	1,057,628	10,576	1,376,682	-511,312	875,946
Net income (loss)				($5,200)	($5,200)
Balances at Mar. 31, 2015	1,057,628	10,576	1,376,682	-516,512	870,746

CONSOLIDATED_STATEMENT_OF_CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash Flows from Operating Activities
Net Income (Loss)	($5,200)	($2,837)
(Increase) decrease in
Interest receivable - related parties	1,562	-57,162
Increase (decrease) in
Accounts payable - other	15,671	-3,015
Accounts payable - related parties	8,999	15,623
Interest payable - related parties	-936	-179,512
Federal income tax payable		0
Net cash provided by (used for) operating activities	20,096	-226,903
Cash Flows from Investing Activities
Notes receivable - related parties	19,100	500,000
Net cash provided by (used for) investing activities	19,100	500,000
Cash Flows from Financing Activities
Notes payable - related parties	-39,765	-119,000
Net cash provided by (used for) financing activities	-39,765	-119,000
Net increase (decrease) in cash and cash equivalents	-569	154,097
Cash and cash equivalents at the beginning of period	1,776	346
Cash and cash equivalents at the end of period	1,207	154,443
Supplemental disclosures of cash flow information:
Cash paid for interest expense to related parties	22,730	157,674
Cash received for interest on notes receivable	$53,653	$240,754

ORGANIZATION_AND_BASIS_OF_PRES

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2015
ORGANIZATION AND BASIS OF PRESENTATION
ORGANIZATION AND BASIS OF PRESENTATION	NOTE 1.      ORGANIZATION AND BASIS OF PRESENTATION
	Organization and business
	First Equity Properties, Inc. is a Nevada based corporation organized in December 19, 1996 and the Company is headquartered in Dallas, TX. The Company’s principal line of business and source of revenue is currently investments and interest on notes receivable.  The Company is currently in the business of real estate investing.  FEPI is a publicly traded company however, no trading marked presently exists for the shares of common stock and its value is therefore not determinable.
	Basis of presentation
	The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading.  In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included.  Certain 2011 balances have been reclassified to conform to the 2012 presentation.
	The year-end Balance Sheet at December 31, 2014, was derived from the audited financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements.  For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
	Cost capitalization
	Costs related to planning and developing a project are capitalized and classified as Real Estate development costs in the Consolidated Balance Sheets. We capitalized certain operating expenses until development is substantially complete, but no later than one year from the cessation of major development activity.
	Newly issued accounting pronouncements
	We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted.  We do not believe that any such guidance will have a material effect on our financial position or results of operation

FEDERAL_INCOME_TAXES

FEDERAL INCOME TAXES	3 Months Ended
	Mar. 31, 2015
FEDERAL INCOME TAXES
FEDERAL INCOME TAXES	NOTE 2.  FEDERAL INCOME TAXES
	The Company accounts for income taxes in accordance with Accounting Standards Codification, (“ASC”) No. 740, “Accounting for Income Taxes”. ASC 740 requires an asset and liability approach to financial accounting for income taxes. In the event differences between the financial reporting basis and the tax basis of the Company’s assets and liabilities result in deferred tax assets, ASC 740 requires an evaluation of the probability of being able to realize the future benefits indicated.
	Recognition of the benefits of deferred tax assets will require the Company to generate future taxable income. There is no assurance that the Company will generate earnings in future years.

NOTES_RECEIVABLE_AND_ACCRUED_I

NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES	3 Months Ended
	Mar. 31, 2015
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES	NOTE 3.  NOTES RECEIVABLE AND ACCRUED INTEREST – RELATED PARTIES
	Receivables from related parties primarily consist of two notes of $1,600,000 and $500,000 which are payable in quarterly installments of interest only. The notes accrue interest at 10% per annum.  The maturity date of these notes has been extended to December 31, 2015.  A payment was received in March 2015 for $72,752.12 which paid the remaining interest balance due in 2014 and some principal on these notes.
		2015		2014
	Notes receivable – related parties
	Unsecured, due on demand, interest rate of 10%, due monthly	$	2,100,000	$	2,119,099
	Accrued interest – related parties		52,090		53,653
	Total notes and accounts receivable – related parties	$	2,152,090	$	2,172,752

NOTES_PAYABLE_AND_ACCRUED_INTE

NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES	3 Months Ended
	Mar. 31, 2015
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES	NOTE 4.  NOTES PAYABLE AND ACCRUED INTEREST – RELATED PARTIES
		2015		2014
	Uncollateralized notes payable – related parties
	due on demand, interest rate of 10%, payable quarterly	$	816,376	$	856,140
	Accrued interest and intercompany – related parties		20,773		21,710
	Total notes payable – related parties	$	837,149	$	877,850
		Principal and interest payments due by period
		Total		2015		2016		2017		2018		2019		therafter
	Long term debt	$	837,149	$	837,149	$	-	$	-	$	-	$	-	$	-
		$	837,149	$	837,149	$	-	$	-	$	-	$	-	$	-

RELATED_PARTIES_TRANSACTIONS

RELATED PARTIES TRANSACTIONS	3 Months Ended
	Mar. 31, 2015
RELATED PARTIES TRANSACTIONS
RELATED PARTIES TRANSACTIONS	NOTE 5.  RELATED PARTIES TRANSACTIONS
	Transactions involving related parties cannot be presumed to be carried out on an arm’s length basis due to the absence of free market forces that naturally exist in business dealings between two or more unrelated entities.  Related party transactions may not always be favorable to our business and may include terns, conditions and agreements that are not necessarily beneficial to or in best interest of our company.
	The Company has an administrative agreement with Pillar Income Asset Management, Inc., an affiliated entity, for accounting and administrative services.  The total expense of the three months ended March 31, 2015 was $15,000 which is included in General and Administrative expenses of the Consolidated Statements of Operations.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 6.  SUBSEQUENT EVENTS
	The Company has evaluated subsequent events for the period ended March 31, 2015 and has determined there have been none.

ACCOUNTING_POLICIES_POLICIES

ACCOUNTING POLICIES (POLICIES)	3 Months Ended
	Mar. 31, 2015
Accounting Policies
Organization and Business	Organization and business
	First Equity Properties, Inc. is a Nevada based corporation organized in December 19, 1996 and the Company is headquartered in Dallas, TX. The Company’s principal line of business and source of revenue is currently investments and interest on notes receivable.  The Company is currently in the business of real estate investing.  FEPI is a publicly traded company however, no trading marked presently exists for the shares of common stock and its value is therefore not determinable.
Basis of presentation	Basis of presentation
	The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading.  In the opinion of management, all adjustments (consisting of normal recurring matters) considered necessary for a fair presentation have been included.  Certain 2011 balances have been reclassified to conform to the 2012 presentation.
	The year-end Balance Sheet at December 31, 2014, was derived from the audited financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements.  For further information, refer to the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
Cost capitalization	Cost capitalization
	Costs related to planning and developing a project are capitalized and classified as Real Estate development costs in the Consolidated Balance Sheets. We capitalized certain operating expenses until development is substantially complete, but no later than one year from the cessation of major development activity.
Newly issued accounting pronouncements	Newly issued accounting pronouncements
	We have considered all other newly issued accounting guidance that is applicable to our operations and the preparation of our statements, including that which we have not yet adopted.  We do not believe that any such guidance will have a material effect on our financial position or results of operation

NOTES_RECIEVABLE_AND_ACCRUED_I

NOTES RECIEVABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables)	3 Months Ended
	Mar. 31, 2015
NOTES RECIEVABLE AND ACCRUED INTEREST - RELATED PARTIES
NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES	.  A payment was received in March 2015 for $72,752.12 which paid the remaining interest balance due in 2014 and some principal on these notes.
		2015		2014
	Notes receivable – related parties
	Unsecured, due on demand, interest rate of 10%, due monthly	$	2,100,000	$	2,119,099
	Accrued interest – related parties		52,090		53,653
	Total notes and accounts receivable – related parties	$	2,152,090	$	2,172,752

NOTES_PAYABLE_AND_ACCRUED_INTE1

NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (Tables)	3 Months Ended
	Mar. 31, 2015
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES {2}
NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES		2015		2014
	Uncollateralized notes payable – related parties
	due on demand, interest rate of 10%, payable quarterly	$	816,376	$	856,140
	Accrued interest and intercompany – related parties		20,773		21,710
	Total notes payable – related parties	$	837,149	$	877,850
		Principal and interest payments due by period
		Total		2015		2016		2017		2018		2019		therafter
	Long term debt	$	837,149	$	837,149	$	-	$	-	$	-	$	-	$	-
		$	837,149	$	837,149	$	-	$	-	$	-	$	-	$	-

NOTES_RECEIVABLE_AND_ACCRUED_I1

NOTES RECEIVABLE AND ACCRUED INTEREST - RELATED PARTIES (DETAILS) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Notes receivable - related parties {1}
Unsecured, due on demand, interest rate of 10%, due monthly	$2,100,000	$2,119,099
Accrued interest - related parties	52,090	53,653
Total notes and accounts receivable - related parties	$2,152,090	$2,172,752

RECEIVABLES_RELATED_PARTIES_DE

RECEIVABLES RELATED PARTIES (DETAILS) (USD $)	Mar. 31, 2015
Receivables related parties
Receivable related parties primary note 1 mature on 31/12/2015	$1,600,000
Receivable related parties primary note 2 31/12/2015	500,000
Notes accrued interest per annum at	10.00%
Payment received	$72,752.12

NOTES_PAYABLE_AND_ACCRUED_INTE2

NOTES PAYABLE AND ACCRUED INTEREST - RELATED PARTIES (DETAILS) (USD $)	Mar. 31, 2015	Mar. 31, 2014
NOTES PAYABLE
Uncollateralized notes payable - related parties due on demand, interest rate of 10%, payable quarterly	$816,376	$856,140
Accrued interest and intercompany - related parties	20,773	21,710
Total notes payable - related parties	$837,149	$877,850

LONG_TERM_DEBT_PAYMENTS_DUE_BY

LONG TERM DEBT PAYMENTS DUE BY PERIOD (DETAILS) (USD $)	Mar. 31, 2015	Mar. 31, 2014
Long term debt Payments due by period
Long term debt Payments due in 2015	$837,149	$837,149
Long term debt Payments due in 2016	0	0
Long term debt Payments due in 2017	0	0
Long term debt Payments due in 2018	0	0
Long term debt Payments due in 2019	0	0
Long term debt Payments due Thereafter	0	0
Long term debt Payments due Total	$837,149	$837,149

RELATED_PARTIES_DETAILS

RELATED PARTIES (DETAILS) (USD $)	3 Months Ended
	Mar. 31, 2015
Related Parties
Total expense	$15,000