Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'REDWOOD MORTGAGE INVESTORS VIII |
Document Type | '10-Q |
Current Fiscal Year End Date | '--12-31 |
Entity Common Stock, Shares Outstanding | 0 |
Amendment Flag | 'false |
Entity Central Index Key | '0000889123 |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Filer Category | 'Smaller Reporting Company |
Entity Well-known Seasoned Issuer | 'No |
Document Period End Date | 30-Sep-13 |
Document Fiscal Year Focus | '2013 |
Document Fiscal Period Focus | 'Q3 |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash and cash equivalents | $14,539,000 | $18,943,000 |
Secured by deeds of trust | ' | ' |
Principal balances (in Dollars) | 49,307,000 | 60,870,000 |
Advances | 766,000 | 5,035,000 |
Accrued interest | 228,000 | 182,000 |
Unsecured | 148,000 | 108,000 |
Allowance for loan losses | -9,917,000 | -19,815,000 |
Net loans | 40,532,000 | 46,380,000 |
Real estate owned | ' | ' |
Held for sale, net | 18,481,000 | 0 |
Held as investment, net | 169,146,000 | 181,333,000 |
Receivable from affiliate | 9,000 | ' |
Other assets, including receivables from guarantors of secured loans of $3,951 at September 30, 2013 | 5,633,000 | 1,119,000 |
Total assets | 248,340,000 | 247,775,000 |
Liabilities | ' | ' |
Mortgages payable | 51,411,000 | 47,293,000 |
Accounts payable and accrued liabilities | 1,780,000 | 3,162,000 |
Payable to affiliate | 300,000 | 565,000 |
Total liabilities | 53,491,000 | 51,020,000 |
Capital | ' | ' |
Limited partners’ capital, subject to redemption, net | 194,614,000 | 196,081,000 |
General partners’ capital (deficit), net | -1,023,000 | -1,025,000 |
Total partners’ capital | 193,591,000 | 195,056,000 |
Non-controlling interest | 1,258,000 | 1,699,000 |
Total capital | 194,849,000 | 196,755,000 |
Total liabilities and capital | $248,340,000 | $247,775,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Interest income | ' | ' | ' | ' |
Loans | $580,000 | $348,000 | $1,488,000 | $1,094,000 |
Imputed interest on formation loan | 99,000 | 114,000 | 289,000 | 207,000 |
Other interest income | ' | ' | ' | 1,000 |
Total interest income | 679,000 | 462,000 | 1,777,000 | 1,302,000 |
Interest expense | ' | ' | ' | ' |
Bank loan, secured | ' | 107,000 | ' | 562,000 |
Mortgages payable | 593,000 | 528,000 | 1,674,000 | 1,847,000 |
Amortization of discount on formation loan | 99,000 | 114,000 | 289,000 | 207,000 |
Other interest expense | ' | 1,000 | ' | 1,000 |
Total interest expense | 692,000 | 750,000 | 1,963,000 | 2,617,000 |
Net interest income/(expense) | -13,000 | -288,000 | -186,000 | -1,315,000 |
Late fees | 3,000 | 1,000 | 8,000 | 14,000 |
Other | 457,000 | 131,000 | 693,000 | 721,000 |
Total revenues/(expense), net | 447,000 | -156,000 | 515,000 | -580,000 |
Provision for loan losses/(recoveries), net | ' | ' | -142,000 | 139,000 |
Operating expenses | ' | ' | ' | ' |
Mortgage servicing fees | 146,000 | 182,000 | 463,000 | 540,000 |
Asset management fees | 190,000 | 195,000 | 574,000 | 645,000 |
Costs from Redwood Mortgage Corp. | 386,000 | 318,000 | 1,160,000 | 996,000 |
Professional services | 155,000 | 444,000 | 712,000 | 1,507,000 |
REO | ' | ' | ' | ' |
Rental operations, net | -1,051,000 | -627,000 | -2,914,000 | -1,450,000 |
Holding costs | 17,000 | 141,000 | 108,000 | 861,000 |
Loss/(gain) on disposal | ' | 19,000 | ' | -35,000 |
Impairment loss | ' | 380,000 | 291,000 | 466,000 |
Other | 10,000 | 21,000 | 39,000 | 131,000 |
Total operating expenses | -147,000 | 1,073,000 | 433,000 | 3,661,000 |
Net income (loss) | 594,000 | -1,229,000 | 224,000 | -4,380,000 |
Net income (loss) | ' | ' | ' | ' |
General partners (1%) | 6,000 | -12,000 | 2,000 | -44,000 |
Limited partners (99%) | 588,000 | -1,217,000 | 222,000 | -4,336,000 |
$594,000 | ($1,229,000) | $224,000 | ($4,380,000) | |
Where Income Is Reinvested [Member] | ' | ' | ' | ' |
Net income (loss) per $1,000 invested by limited partners for entire period | ' | ' | ' | ' |
Net income (loss) per $1,000 invested by limited partners for entire period (in Dollars per share) | $3 | ($5) | $1 | ($19) |
Where Partner Receives Income In Monthly Distributions [Member] | ' | ' | ' | ' |
Net income (loss) per $1,000 invested by limited partners for entire period | ' | ' | ' | ' |
Net income (loss) per $1,000 invested by limited partners for entire period (in Dollars per share) | $3 | ($5) | $1 | ($19) |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Partners' Capital (Unaudited) (USD $) | Capital Account Limited Partners [Member] | Unallocated Syndication Costs Limited Partners [Member] | Formation Loan, Gross [Member] | Total Limited Partners' Capital [Member] | Capital/(Deficit) Account General Partners [Member] | Unallocated Syndication Costs General Partners [Member] | Total General Partners' Capital/(Deficit) [Member] | Total |
Balance at Dec. 31, 2012 | $204,026,000 | ($318,000) | ($7,627,000) | $196,081,000 | ($1,022,000) | ($3,000) | ($1,025,000) | $195,056,000 |
Net income (loss) | 222,000 | ' | ' | 222,000 | 2,000 | ' | 2,000 | 224,000 |
Allocation of syndication costs | -262,000 | 262,000 | ' | ' | -2,000 | 2,000 | ' | ' |
Withdrawals | -1,689,000 | ' | ' | -1,689,000 | ' | ' | ' | ' |
Balance at Sep. 30, 2013 | $202,297,000 | ($56,000) | ($7,627,000) | $194,614,000 | ($1,022,000) | ($1,000) | ($1,023,000) | $193,591,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities | ' | ' |
Net income (loss) | $224,000 | ($4,380,000) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' |
Amortization of borrowings-related origination fees | 64,000 | 283,000 |
Imputed interest on formation loan | -289,000 | -207,000 |
Amortization of discount on formation loan | 289,000 | 207,000 |
Provision for loan losses | -142,000 | 139,000 |
REO – depreciation | 1,711,000 | 1,661,000 |
REO – loss/(gain) on disposal | ' | -35,000 |
REO – impairment loss | 397,000 | 466,000 |
Change in operating assets and liabilities | ' | ' |
Accrued interest | -51,000 | 858,000 |
Advances on loans | 1,954,000 | -463,000 |
Allowance for loan losses-recoveries, net of receivables | 1,177,000 | 21,000 |
Receivable from affiliates | -137,000 | ' |
Other assets | -1,067,000 | -1,019,000 |
Accounts payable and accrued liabilities | -1,397,000 | -2,533,000 |
Payable to affiliate | -265,000 | -217,000 |
Net cash provided by (used in) operating activities | 2,625,000 | -5,149,000 |
Cash flows from investing activities | ' | ' |
Secured loans funded or acquired | -16,638,000 | -10,706,000 |
Secured loans assigned to affiliates | 2,107,000 | ' |
Unsecured loans | -40,000 | ' |
Payments for development of REO | -2,963,000 | ' |
Proceeds from disposition of REO | 1,398,000 | 25,182,000 |
Net cash provided by (used in) investing activities | -9,017,000 | 20,243,000 |
Cash flows from financing activities | ' | ' |
Payments on bank loan | ' | -16,789,000 |
Mortgages taken | 5,000,000 | 5,160,000 |
Payments on mortgages | -882,000 | -1,267,000 |
Partners’ withdrawals | -1,689,000 | -1,857,000 |
Increase/(decrease) in non-controlling interest | -441,000 | -1,418,000 |
Net cash provided by (used in) financing activities | 1,988,000 | -16,171,000 |
Net increase (decrease) in cash and cash equivalents | -4,404,000 | -1,077,000 |
Cash and cash equivalents, January 1 | 18,943,000 | 4,200,000 |
Cash and cash equivalents, September 30 | 14,539,000 | 3,123,000 |
Supplemental disclosures of cash flow information | ' | ' |
Real estate acquired through foreclosure/settlement on loans, net of liabilities assumed | 6,979,000 | 1,524,000 |
Cash paid for interest | 1,674,000 | 2,409,000 |
Rental Operations [Member] | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' |
REO – depreciation | 1,852,000 | 1,731,000 |
Non-Rental Operations [Member] | ' | ' |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities | ' | ' |
REO – depreciation | 16,000 | ' |
Unsecured Loan [Member] | ' | ' |
Cash flows from investing activities | ' | ' |
Principal collected on secured loans | $7,119,000 | $7,926,000 |
Note_1_Organizational_and_Gene
Note 1 - Organizational and General | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1 – ORGANIZATIONAL AND GENERAL | |
In the opinion of the general partners, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal, recurring adjustments, necessary to present fairly the consolidated financial information included therein. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the partnership’s Form 10-K for the fiscal year ended December 31, 2012 filed with the Securities and Exchange Commission (SEC). The results of operations for the nine month period ended September 30, 2013 are not necessarily indicative of the operating results to be expected for the full year. | |
Redwood Mortgage Investors VIII, a California Limited Partnership, (“RMI VIII” or the “partnership”) was organized in 1993. The partnership was organized to engage in business as a mortgage lender for the primary purpose of making loans secured by deeds of trust on California real estate. | |
The general partners of the partnership are Redwood Mortgage Corp. (“RMC”) and its wholly-owned subsidiary, Gymno LLC (“Gymno”), a California limited liability company, and Michael R. Burwell (“Burwell”), an individual. The general partners are solely responsible for partnership business, subject to the voting rights of the limited partners on specified matters. Any one of the general partners acting alone has the power and authority to act for and bind the partnership. Loans are being arranged and serviced by RMC. | |
The rights, duties and powers of the general and limited partners of the partnership are governed by the limited partnership agreement and Sections 15900 et seq. of the California Corporations Code. | |
The partnership completed its sixth offering stage in 2008. No additional offerings are contemplated at this time. Sales commissions owed to securities broker/dealers in conjunction with the offerings, are not paid directly out of the offering proceeds by the partnership. These commissions are paid by RMC as consideration for the exclusive right to originate loans for RMI VIII. To fund the payment of these commissions, during the offering periods, the partnership lent amounts to RMC to pay all sales commissions and amounts payable in connection with unsolicited orders to invest (formation loan). | |
On the mortgage loans originated for RMI VIII, RMC may collect loan brokerage commissions (points) limited to an amount not to exceed four percent per year of the total partnership assets. The loan brokerage commissions are paid by the borrowers and thus, are not an expense of the partnership. The proceeds from loan brokerage commissions and other fees earned are the source of funds for the repayment of the formation loans by RMC. | |
A majority of the outstanding limited partnership interests may, without the permission of the general partners, vote to: (i) terminate the partnership, (ii) amend the limited partnership agreement, (iii) approve or disapprove the sale of all or substantially all of the assets of the partnership and (iv) remove or replace one or all of the general partners. | |
The approval of all the limited partners is required to elect a new general partner to continue the partnership business where there is no remaining general partner after a general partner ceases to be a general partner other than by removal. | |
Profits and losses are allocated among the limited partners according to their respective capital accounts after one percent of profits and losses is allocated to the general partners, and are subject to subsequent adjustment as a result of quarterly and year-end accounting and reporting. | |
The description of the limited partnership agreement contained in these financial statements provides only general information. Limited partners should refer to the limited partnership agreement for a more complete description of the provisions. | |
Income taxes – federal and state – are the obligation of the partners, if and when taxes apply, other than for the minimum annual California franchise tax paid by the partnership. | |
Formation loan | |
RMC financed the payment of sales commissions to broker-dealers by borrowing funds (“the formation loan”) from RMI VIII. The formation loan is non-interest bearing and is being repaid equally over an approximate ten-year period commencing the year after the close of a partnership offering. Interest has been imputed at the market rate of interest in effect in the years the offerings closed. | |
The formation loan is deducted from limited partners’ capital in the consolidated balance sheets. As payments are received from RMC, the formation loan’s balance outstanding and the deduction from capital are reduced. If the general partners are removed and RMC is no longer receiving payments for services rendered, the formation loan is forgiven. | |
Commission and fees paid by borrowers to the general partners | |
Brokerage commissions, loan originations – the partnership agreement provides for RMC to collect a loan brokerage commission for fees in connection with the review, selection, evaluation, negotiation and extension of loans, that is expected to range from approximately 2% to 5% of the principal amount of each loan made during the year. Total loan brokerage commissions are limited to an amount not to exceed four percent of the total partnership assets per year. The loan brokerage commissions are paid by the borrowers and are not an expense of the partnership. | |
Other fees – the partnership agreement provides for RMC or Gymno to receive fees for processing, notary, document preparation, credit investigation, reconveyance, and other mortgage related fees. The amounts received are customary for comparable services in the geographical area where the property securing the loan is located, payable solely by the borrower and not by the partnership. | |
Syndication costs | |
The partnership bears its own syndication costs, other than certain sales commissions, including legal and accounting expenses, printing costs, selling expenses and filing fees. Syndication costs are charged monthly against partners’ capital and are allocated to individual partners consistent with the partnership agreement. | |
Withdrawals | |
In March 2009, in response to economic conditions, the dysfunction of the credit markets, the distress in the real estate markets, and the expected cash needs of the partnership, the partnership suspended capital liquidations, and is not accepting new liquidation requests until further notice. | |
Term of the partnership | |
The partnership is scheduled to terminate in 2032, unless sooner terminated as provided in the partnership agreement. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of presentation | |
The partnership’s consolidated financial statements include the accounts of the partnership, its wholly-owned subsidiaries, and its 72.5%-owned subsidiary. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Reclassifications | |
Certain reclassifications, not affecting previously reported net income or total partner capital, have been made to the previously issued consolidated financial statements to conform to the current year presentation. | |
Management estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates relate principally to the determination of the allowance for loan losses, including the valuation of impaired loans, (which itself requires determining the fair value of the collateral), and the valuation of real estate held for sale and held as investment, at acquisition and subsequently. Actual results could differ significantly from these estimates. | |
The fair value of the collateral is reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the net realizable value (fair value of the collateral less the cost to sell), net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest. This computation is done for each loan (whether performing or designated impaired), and while loans secured by collateral of similar property type are grouped, there is enough distinction and variation in the collateral that a loan-by-loan, collateral-by-collateral analysis is appropriate. | |
The fair value of the collateral at sale is the price that would be received (i.e. the exit price) in an orderly transaction in the principal or most advantageous market under current market conditions and is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. | |
Appraisals of commercial real property generally present three approaches to estimating value: 1) market comparables or sales approach; 2) cost to replace and 3) capitalized cash flows or investment approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g. as-is, when-completed, or for land when-entitled); and determining the unit of value (e.g. as a series of individual unit sales or as a bulk disposition). In some prior years, as has been previously noted, the appraisal process was further complicated by the low real estate transaction volumes of which a very high percentage were considered to be distressed sales, as well as other poor market conditions. | |
Management has the requisite familiarity with the markets the partnership lends in generally and of the collateral properties specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value, and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types (such as land held for development and for units in a condominium conversion). Multiple inputs from different sources often collectively provide the best evidence of fair value. In these cases expected cash flows would be considered alongside other relevant information. Management’s analysis of these secondary sources, as well as the analysis of comparable sales, assists management in preparing its estimates regarding valuations, such as collateral fair value. However, such estimates are inherently imprecise and actual results could differ significantly from such estimates. | |
Cash and cash equivalents | |
The partnership considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. Periodically, partnership cash balances in banks exceed federally insured limits. | |
Loans and interest income | |
Loans generally are stated at the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the partnership’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums, and attorney fees. Advances generally are stated at the unpaid principal balance and accrue interest until repaid by the borrower. | |
The partnership may fund a specific loan origination net of an interest reserve to insure timely interest payments at the inception (one to two years) of the loan. As monthly interest payments become due, the partnership funds the payments into the affiliated trust account. | |
If based upon current information and events, it is probable the partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement, then a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. If a valuation allowance had been established on an impaired loan, any subsequent payments on impaired loans are applied to late fees and then to reduce first the accrued interest, then advances, and then unpaid principal. | |
From time to time, the partnership negotiates and enters into loan modifications with borrowers whose loans are delinquent. If the loan modification results in a significant reduction in the cash flow compared to the original note, the modification is deemed a troubled debt restructuring and a loss is recognized. In the normal course of the partnership’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the matured loan was previously designated as impaired. | |
Interest is accrued daily based on the unpaid principal balance of the loans. An impaired loan continues to accrue as long as the loan is in the process of collection and is considered to be well-secured. Loans are placed on non-accrual status at the earlier of management’s determination that the primary source of repayment will come from the foreclosure and subsequent sale of the collateral securing the loan (which usually occurs when a notice of sale is filed) or when the loan is no longer considered well-secured. When a loan is placed on non-accrual status, the accrual of interest is discontinued; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent interest and principal payments become current in accordance with the terms of the loan agreement. | |
Allowance for loan losses | |
Loans and the related accrued interest and advances are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Delinquencies are determined based upon contractual terms. For impaired loans, a provision is made for loan losses to adjust the allowance for loan losses to an amount considered by management to be adequate, with due consideration to collateral values, such that the net carrying amount (unpaid principal balance, plus advances, plus accrued interest less the specific allowance) is reduced to the present value of future cash flows discounted at the loan’s effective interest rate, or, if a loan is collateral dependent, to the estimated net realizable value of the related collateral net of any senior loans and other claims. | |
Loans determined not to be individually impaired are grouped by the property type of the underlying collateral, and for each loan and for the total by property type, the amount of protective equity or amount of exposure to loss (i.e., the dollar amount of the deficiency of the fair value of the underlying collateral to the loan balance) is computed. | |
Based on its knowledge of the borrowers and their historical (and expected) performance, and the exposure to loss as indicated in the analysis, management estimates an appropriate reserve by property type for probable credit losses in the portfolio. Because the partnership is an asset-based lender, except as to owner-occupied residences, and because specific regions, neighborhoods and even properties within the same neighborhoods, vary significantly as to real estate values and transaction activity, general market trends, which may be indicative of a change in the risk of a loss, are secondary to the condition of the property, the property type and the neighborhood/region in which the property is located, and do not enter substantially into the determination of the amount of the non-specific (i.e. general) reserves. | |
The partnership charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. | |
Real estate owned (REO) held for sale | |
REO, held for sale includes real estate acquired in full or partial settlement of loan obligations generally through foreclosure that is being marketed for sale. REO, held for sale is recorded at acquisition at the lower of the amount owning per the note, plus any senior indebtedness, or at the property’s net realizable value. Any excess of the recorded investment in the loan over the net realizable value is charged against the allowance for loan losses. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, REO, held for sale is analyzed periodically for changes in net realizable values and any subsequent write down is charged to operating expenses. Any recovery in the net realizable value subsequent to such a write down is recorded – not to exceed the net realizable value at acquisition – as an offset to operating expenses. Gains or losses on sale of the property are recorded as an operating expense. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. | |
Real estate owned (REO), held as investment, net | |
REO, held as investment, net includes real estate acquired in full or partial settlement of loan obligations generally through foreclosure that is not being marketed for sale and is either being operated, such as rental properties; is being managed through the development process, including obtaining appropriate and necessary entitlements, permits and construction; or are idle properties awaiting more favorable market conditions. REO, held as investment, net, is recorded at acquisition at the lower of the amount owning per the note, plus any senior indebtedness, or at the property’s estimated net realizable value. After acquisition, costs incurred relating to the development and improvement of the property are capitalized, whereas costs relating to operating or holding the property are expensed. Subsequent to acquisition, management periodically compares the carrying value of real estate to expected undiscounted future cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds future undiscounted cash flows, the assets are reduced to estimated net realizable value. | |
Rental income | |
Residential rental lease lengths generally range from month to month up to one year, and commercial rental lease lengths generally range from five to ten years, with rental income recognized when earned in accordance with the lease agreement. | |
Depreciation | |
Real estate owned held as investment that is being operated is depreciated on a straight-line basis over the estimated useful life of the property once the asset is placed in service. | |
Net income per $1,000 invested | |
Amounts reflected in the statements of income as net income per $1,000 invested by limited partners for the entire period are amounts allocated to limited partners who held their investment throughout the period and have either elected to leave their profits to compound or elected to receive periodic distributions of their net income. Individual income is allocated each month based on the limited partners’ pro rata share of partners’ capital. Because the net income percentage varies from month to month, amounts per $1,000 will vary for those individuals who made or withdrew investments during the period, or selected other options. |
Note_3_General_Partners_and_Ot
Note 3 - General Partners and Other Related Parties | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Related Party Transactions Disclosure [Text Block] | ' | ||||||||||||||||
NOTE 3 – GENERAL PARTNERS AND OTHER RELATED PARTIES | |||||||||||||||||
The general partners are entitled to one percent of the profits and losses, which amounted to approximately $6,000 and $(12,000) for the three months and $2,000 and $(44,000) for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The following commissions and/or fees are paid by the borrowers to the general partners and their affiliates and are not an expense of the partnership. | |||||||||||||||||
Brokerage commissions, loan originations | |||||||||||||||||
Loan brokerage commissions paid by the borrowers were $89,000 and $0 for the three months and $315,000 and $107,000 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Other fees | |||||||||||||||||
Other fees totaled $5,876 and $150 for the three months and $16,052 and $1,505 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
The following commissions and fees are paid by the partnership to RMC. | |||||||||||||||||
Mortgage servicing fees | |||||||||||||||||
RMC may earn mortgage servicing fees from RMI VIII of up to 1.5% annually of the unpaid principal of the loan portfolio or such lesser amount as is reasonable and customary in the geographic area where the property securing the mortgage is located. Historically, RMC charged one percent annually, and at times waived additional amounts to improve the partnership’s earnings. Such fee waivers were not made for the purpose of providing the partnership with sufficient funds to satisfy withdrawal requests, nor were such waivers made in order to meet any required level of distributions, as the partnership has no such required level of distributions. RMC does not use any specific criteria in determining the amount of fees, if any, to be waived. The decision to waive fees and the amount, if any, to be waived, is made by RMC in its sole discretion. | |||||||||||||||||
Mortgage servicing fees paid to RMC by the partnership are presented in the following table for the three and nine months ended September 30, ($ in thousands). | |||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Chargeable by RMC | $ | 219 | $ | 272 | $ | 695 | $ | 810 | |||||||||
Waived by RMC | (73 | ) | (90 | ) | (232 | ) | (270 | ) | |||||||||
Charged | $ | 146 | $ | 182 | $ | 463 | $ | 540 | |||||||||
Asset management fees | |||||||||||||||||
The general partners receive monthly fees for managing the partnership’s loan portfolio and operations of up to .03125% of the “net asset value” (.375% annually). At times, the general partners have charged less than the maximum allowable rate to enhance the partnership’s earnings. Such fee waivers were not made with the purpose of providing the partnership with sufficient funds to satisfy withdrawal requests, nor to meet any required level of distributions, as the partnership has no such required level of distributions. RMC does not use any specific criteria in determining the exact amount of fees, if any, to be waived. The decision to waive fees and the amount, if any, to be waived, is made by RMC in its sole discretion. | |||||||||||||||||
Asset management fees for the three months ended September 30, 2013 and 2012 were $190,000 and $195,000, respectively, and for the nine months ended September 30, 2013 and 2012, were $574,000 and $645,000, respectively. No asset management fees were waived during any period reported. | |||||||||||||||||
Costs from Redwood Mortgage Corp. | |||||||||||||||||
RMC is reimbursed by the partnership for operating expenses incurred on behalf of the partnership, including without limitation, accounting and audit fees, legal fees and expenses, postage and preparation of reports to limited partners, and out-of-pocket general and administration expenses. The decision to request reimbursement of any qualifying charges is made by RMC in its sole discretion. Operating expenses of $386,000 and $318,000, for the three months and $1,160,000 and $996,000, for the nine months ended September 30, 2013 and 2012, respectively, were reimbursed to RMC. To the extent some operating expenses incurred on behalf of RMI VIII were not charged by RMC, the financial position and results of operations for the partnership would be different. | |||||||||||||||||
Formation loan | |||||||||||||||||
Formation loan transactions are presented in the following table at September 30, 2013 ($ in thousands). | |||||||||||||||||
Formation loan made | $ | 22,567 | |||||||||||||||
Unamortized discount on formation loan | (1,934 | ) | |||||||||||||||
Formation loan made, net | 20,633 | ||||||||||||||||
Repayments to date | (14,297 | ) | |||||||||||||||
Early withdrawal penalties applied | (643 | ) | |||||||||||||||
Formation loan, net | 5,693 | ||||||||||||||||
Unamortized discount on formation loan | 1,934 | ||||||||||||||||
Balance, September 30, 2013 | $ | 7,627 | |||||||||||||||
An estimated amount of imputed interest is recorded for the formation loan. During the three months ended September 30, 2013 and 2012, $99,000 and $114,000, respectively, was recorded related to imputed interest and for the nine months ended September 30, 2013 and 2012, $289,000 and $207,000, respectively, was recorded. | |||||||||||||||||
RMC acts as the broker in originating mortgage loans for RMI VIII. The corresponding brokerage commissions paid by borrowers from mortgage loans made by these funds are the primary source of cash used to repay the formation loans. RMI VIII was prohibited by its lending banks from originating new loans under the terms of an Amended and Restated Loan Agreement dated October 2010, and a preceding forbearance agreement that was in effect in the fourth quarter of 2009, until the bank loan was repaid in full, which loan was paid in full in September 2012. The amended loan and forbearance agreements were the result of a technical (i.e. not a payment default) covenant default under the original loan. As a result, RMC was deprived of the opportunity to receive brokerage commissions on loans by RMI VIII for the period from the fourth quarter of 2009 continuing through September 30, 2012, a period of almost three years. During that period, despite receiving no loan brokerage commissions, RMC continued to make the annual formation loan payments of approximately $1.8 million per year (or $5.4 million for the three years) from its own cash reserves that existed as of the date of the forbearance agreement. RMC believes it would have had a reasonable argument that the annual formation loan payments should be suspended until such time as lending by RMI VIII was permitted to resume and brokerage commissions could be earned, but RMC elected not to make such a proposal and, instead, continued to make annual formation loan payments due to concerns that the lending banks would view nonpayment of the formation loan as another technical loan default that might have led to a “distressed sale” liquidation of RMI VIII’s assets, resulting in substantial loss of limited partners’ capital. | |||||||||||||||||
As the bank loan was fully repaid as of September 2012, RMC has temporarily suspended annual formation loan payments, beginning with the payment due December 31, 2012, for the three-year period then beginning, which is a period commensurate with the period during which lending by RMI VIII was prohibited and RMC was deprived of loan brokerage commissions. |
Note_4_Loans
Note 4 - Loans | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||
Financing Receivables [Text Block] | ' | ||||||||||||||||||||||||
NOTE 4 – LOANS | |||||||||||||||||||||||||
The partnership generally funds loans with a fixed interest rate and a five-year term. As of September 30, 2013, approximately 45% of the partnership’s loans (representing 48% of the aggregate principal balance of the partnership’s loan portfolio) have a five year term or less from loan inception. The remaining loans have terms longer than five years. | |||||||||||||||||||||||||
As of September 30, 2013, approximately 33% of the loans outstanding (representing 60% of the aggregate principal balance of the partnership’s loan portfolio) provide for monthly payments of interest only, with the principal due in full at maturity. The remaining loans require monthly payments of principal and interest, typically calculated on a 30 year amortization, with the remaining principal balance due at maturity. | |||||||||||||||||||||||||
The partnership may make construction loans that are not fully disbursed at loan inception. Construction loans are determined by the managers to be those loans made to borrowers for the construction of entirely new structures or dwellings, whether residential, commercial or multi-family properties. The partnership will approve and fund the construction loan up to a maximum loan balance. Disbursements will be made periodically as phases of the construction are completed or at such other times as the loan documents may require. Undisbursed construction funds will be held in escrow pending disbursement. Upon project completion, construction loans are reclassified as permanent loans. Funding of construction loans is limited to 10% of the loan portfolio. As of September 30, 2013, the partnership had no construction loans outstanding. | |||||||||||||||||||||||||
The partnership may also make rehabilitation loans. A rehabilitation loan will be approved up to a maximum principal balance and, at loan inception, will be either fully or partially disbursed. A rehabilitation loan escrow account is fully funded and advanced periodically as phases of the rehabilitation are completed or at such other times as the loan documents may require. The rehabilitation loan proceeds are generally used to acquire and remodel single family homes for future sale or rental. As of September 30, 2013, the partnership had no rehabilitation loans outstanding. | |||||||||||||||||||||||||
Loans unpaid principal balance (principal) | |||||||||||||||||||||||||
Secured loan transactions are summarized in the following table for the nine months ended September 30, ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal, January 1 | $ | 60,870 | $ | 73,386 | |||||||||||||||||||||
Loans funded or acquired | 16,638 | 10,606 | |||||||||||||||||||||||
Principal collected | (7,119 | ) | (7,899 | ) | |||||||||||||||||||||
Loans assigned to affiliates | (2,107 | ) | — | ||||||||||||||||||||||
Foreclosures | (18,975 | ) | (3,728 | ) | |||||||||||||||||||||
Principal, September 30 | $ | 49,307 | $ | 72,365 | |||||||||||||||||||||
During the nine months ended September 30, 2013 and 2012, the partnership renewed two loans, respectively, with a remaining aggregate principal of approximately $350,000 and $383,000, at September 30, 2013 and 2012, respectively, not included in the activity shown on the table above. | |||||||||||||||||||||||||
Loan characteristics | |||||||||||||||||||||||||
Secured loans had the characteristics presented in the following table ($ in thousands). | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of secured loans | 33 | 39 | |||||||||||||||||||||||
Secured loans – principal | $ | 49,307 | $ | 60,870 | |||||||||||||||||||||
Secured loans – lowest interest rate (fixed) | 3 | % | 3 | % | |||||||||||||||||||||
Secured loans – highest interest rate (fixed) | 12 | % | 12 | % | |||||||||||||||||||||
Average secured loan – principal | $ | 1,494 | $ | 1,561 | |||||||||||||||||||||
Average principal as percent of total principal | 3.03 | % | 2.56 | % | |||||||||||||||||||||
Average principal as percent of partners’ capital | 0.77 | % | 0.8 | % | |||||||||||||||||||||
Average principal as percent of total assets | 0.6 | % | 0.63 | % | |||||||||||||||||||||
Largest secured loan – principal | $ | 16,312 | $ | 16,697 | |||||||||||||||||||||
Largest principal as percent of total principal | 33.08 | % | 27.43 | % | |||||||||||||||||||||
Largest principal as percent of partners’ capital | 8.43 | % | 8.56 | % | |||||||||||||||||||||
Largest principal as percent of total assets | 6.57 | % | 6.74 | % | |||||||||||||||||||||
Smallest secured loan – principal | $ | 86 | $ | 87 | |||||||||||||||||||||
Smallest principal as percent of total principal | 0.18 | % | 0.14 | % | |||||||||||||||||||||
Smallest principal as percent of partners’ capital | 0.04 | % | 0.04 | % | |||||||||||||||||||||
Smallest principal as percent of total assets | 0.03 | % | 0.04 | % | |||||||||||||||||||||
Number of counties where security is located (all California) | 17 | 19 | |||||||||||||||||||||||
Largest percentage of principal in one county | 42.21 | % | 46.18 | % | |||||||||||||||||||||
Number of secured loans in foreclosure status | 5 | 6 | |||||||||||||||||||||||
Secured loans in foreclosure – principal | $ | 17,245 | $ | 1,910 | |||||||||||||||||||||
Number of secured loans with an interest reserve | — | — | |||||||||||||||||||||||
Interest reserves | $ | — | $ | — | |||||||||||||||||||||
As of September 30, 2013, the partnership’s largest loan, in the unpaid principal balance of $16,312,000 (representing 33.08% of outstanding secured loans and 6.57% of partnership assets) has an interest rate of 5.00% and is secured by 75 units in a condominium complex with 128 total units, located in Contra Costa County, California. This loan matured April 1, 2012. A court appointed receiver is managing the 75 units. A foreclosure sale date is still to be determined based upon the progress of the receiver. | |||||||||||||||||||||||||
Larger loans sometimes increase above 10% of the secured loan portfolio or partnership assets as these amounts decrease due to limited partner withdrawals and loan payoffs and due to restructuring of existing loans. | |||||||||||||||||||||||||
Distribution of loans within California | |||||||||||||||||||||||||
Secured loans are distributed within California as summarized in the following table ($ in thousands). | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
San Francisco | 8 | $ | 20,815 | 42 | % | 6 | $ | 28,115 | 46 | % | |||||||||||||||
San Francisco Bay Area(1) | 9 | 22,048 | 45 | 16 | 25,688 | 42 | |||||||||||||||||||
Northern California(1) | 6 | 3,064 | 6 | 6 | 3,110 | 5 | |||||||||||||||||||
Southern California | 10 | 3,380 | 7 | 11 | 3,957 | 7 | |||||||||||||||||||
Total secured loans | 33 | $ | 49,307 | 100 | % | 39 | $ | 60,870 | 100 | % | |||||||||||||||
-1 | Excludes line(s) above | ||||||||||||||||||||||||
Lien position | |||||||||||||||||||||||||
At funding secured loans had the following lien positions and are presented in the following table ($ in thousands). | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
First trust deeds | 15 | $ | 34,107 | 69 | % | 17 | $ | 33,785 | 56 | % | |||||||||||||||
Second trust deeds | 17 | 14,909 | 30 | 21 | 26,789 | 44 | |||||||||||||||||||
Third trust deeds | 1 | 291 | 1 | 1 | 296 | — | |||||||||||||||||||
Total secured loans | 33 | 49,307 | 100 | % | 39 | 60,870 | 100 | % | |||||||||||||||||
Liens due other lenders at loan closing | 52,849 | 80,875 | |||||||||||||||||||||||
Total debt | $ | 102,156 | $ | 141,745 | |||||||||||||||||||||
Appraised property value at loan closing | $ | 150,883 | $ | 199,392 | |||||||||||||||||||||
Percent of total debt to appraised values (LTV) at loan closing(2) | 67.71 | % | 71.1 | % | |||||||||||||||||||||
-2 | Based on appraised values and liens due other lenders at loan closing. The loan to value computation does not take into account subsequent increases or decreases in security property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders by payments or interest accruals, if any. Property values likely have changed, particularly over the last four years, and the portfolio’s current loan to value ratio likely is higher than this historical ratio. | ||||||||||||||||||||||||
Property type | |||||||||||||||||||||||||
Secured loans summarized by property type are presented in the following table ($ in thousands). | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
Single family | 26 | $ | 32,526 | 66 | % | 31 | $ | 46,295 | 76 | % | |||||||||||||||
Multi-family | — | — | — | 2 | 2,557 | 4 | |||||||||||||||||||
Commercial | 6 | 16,247 | 33 | 5 | 11,479 | 19 | |||||||||||||||||||
Land | 1 | 534 | 1 | 1 | 539 | 1 | |||||||||||||||||||
Total secured loans | 33 | $ | 49,307 | 100 | % | 39 | $ | 60,870 | 100 | % | |||||||||||||||
Single family properties include owner-occupied and non-owner occupied single family homes (1-4 unit residential buildings), condominium units, townhouses, and condominium complexes. From time to time, loan originations in one sector or property type become more active due to prevailing market conditions. The current concentration of the partnership’s loan portfolio in condominium properties may pose additional or increased risks. Recovery of the condominium sector of the real estate market is generally expected to lag behind that of single-family residences. In addition, availability of financing for condominium properties has been, and will likely continue to be, constricted and more difficult to obtain than other property types. As of September 30, 2013 and December 31, 2012, $18,798,000 and $36,855,000, respectively, of the partnership’s loans were secured by condominium properties. | |||||||||||||||||||||||||
Condominiums may create unique risks for the partnership that are not present for loans made on other types of properties. In the case of condominiums, a board of managers generally has discretion to make decisions affecting the condominium building, including regarding assessments to be paid by the unit owners, insurance to be maintained on the building, and the maintenance of that building, which may have an impact on the partnership loans that are secured by such condominium property. | |||||||||||||||||||||||||
The partnership may have less flexibility in foreclosing on the collateral for a loan secured by condominiums upon a default by the borrower. Among other things, the partnership must consider the governing documents of the homeowners association and the state and local laws applicable to condominium units, which may require an owner to obtain a public report prior to the sale of the units. | |||||||||||||||||||||||||
Scheduled maturities | |||||||||||||||||||||||||
Secured loans are scheduled to mature as presented in the following table ($ in thousands). | |||||||||||||||||||||||||
Scheduled maturities at September 30, 2013 | Loans | Principal | Percent | ||||||||||||||||||||||
2013 | 1 | $ | 96 | 0 | % | ||||||||||||||||||||
2014 | 6 | 11,914 | 24 | ||||||||||||||||||||||
2015 | 8 | 12,839 | 26 | ||||||||||||||||||||||
2016 | 3 | 4,012 | 8 | ||||||||||||||||||||||
2017 | 4 | 1,394 | 3 | ||||||||||||||||||||||
Thereafter | 1 | 237 | 1 | ||||||||||||||||||||||
Total future maturities | 23 | 30,492 | 62 | ||||||||||||||||||||||
Matured at September 30, 2013 | 10 | 18,815 | 38 | ||||||||||||||||||||||
Total secured loans | 33 | $ | 49,307 | 100 | % | ||||||||||||||||||||
It is the partnership’s experience loans may be repaid or refinanced before, at or after the contractual maturity date. For matured loans, the partnership may continue to accept payments while pursuing collection of amounts owed from borrowers. Therefore, the above tabulation for scheduled maturities is not a forecast of future cash receipts. | |||||||||||||||||||||||||
The partnership reports maturity data based upon the most recent contractual agreement with the borrower. The table above includes two loans with a remaining aggregate principal of $350,000 which were renewed in 2013. | |||||||||||||||||||||||||
Matured loans | |||||||||||||||||||||||||
Secured loans past maturity are summarized in the following table ($ in thousands). | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of loans(3)(4) | 10 | 14 | |||||||||||||||||||||||
Principal | $ | 18,815 | $ | 36,486 | |||||||||||||||||||||
Advances | 743 | 5,014 | |||||||||||||||||||||||
Accrued interest | 63 | 61 | |||||||||||||||||||||||
Loan balance | $ | 19,621 | $ | 41,561 | |||||||||||||||||||||
Percent of principal | 38 | % | 60 | % | |||||||||||||||||||||
-3 | The secured loans past maturity include 9 and 12 loans as of September 30, 2013 and December 31, 2012, also included in the secured loans in non-accrual status. | ||||||||||||||||||||||||
-4 | The secured loans past maturity include 9 and 10 loans as of September 30, 2013 and December 31, 2012, respectively, also included in the secured loans delinquency. | ||||||||||||||||||||||||
Delinquency | |||||||||||||||||||||||||
Secured loans summarized by payment delinquency are presented in the following table ($ in thousands). | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Past due | |||||||||||||||||||||||||
30-89 days | $ | 16,743 | $ | 783 | |||||||||||||||||||||
90-179 days | 474 | 2,062 | |||||||||||||||||||||||
180 or more days | 1,170 | 19,033 | |||||||||||||||||||||||
Total past due | 18,387 | 21,878 | |||||||||||||||||||||||
Current | 30,920 | 38,992 | |||||||||||||||||||||||
Total secured loans | $ | 49,307 | $ | 60,870 | |||||||||||||||||||||
At September 30, 2013, the partnership had four workout agreements in effect with an aggregate principal of $3,365,000. All of the borrowers had made all required payments under the workout agreements and the loans were included in the above table as current. All of the loans with a workout agreement in effect were designated impaired. | |||||||||||||||||||||||||
At December 31, 2012, the partnership had six workout agreements in effect with an aggregate principal of $20,081,000. Of the six borrowers, four, with an aggregate principal of $2,967,000 had made all required payments under the workout agreements and the loans were included in the above table as current. All of the loans with a workout agreement in effect were designated impaired. | |||||||||||||||||||||||||
Interest income accrued on loans contractually past due 90 days or more as to principal or interest payments during the nine months ended September 30, 2013 and 2012 was $27,000 and 22,000, respectively. Accrued interest on loans contractually past due 90 days or more as to principal or interest payments at September 30, 2013 and December 31, 2012 was $63,000 and $14,000, respectively. | |||||||||||||||||||||||||
Loans in non-accrual status | |||||||||||||||||||||||||
Secured loans in non-accrual status are summarized in the following table ($ in thousands). | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Secured loans in non-accrual status | |||||||||||||||||||||||||
Number of loans | 11 | 18 | |||||||||||||||||||||||
Principal | $ | 18,794 | $ | 43,352 | |||||||||||||||||||||
Advances | 596 | 5,028 | |||||||||||||||||||||||
Accrued interest | 63 | 11 | |||||||||||||||||||||||
Loan balance | $ | 19,453 | $ | 48,391 | |||||||||||||||||||||
Foregone interest | $ | 560 | $ | 3,255 | |||||||||||||||||||||
At September 30, 2013, there was one loan with a loan balance of $659,000 and at December 31, 2012, there was one loan with a loan balance of $99,000, in each case, was contractually 90 or more days past due as to principal or interest and not in non-accrual status. | |||||||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||||||
Impaired loans had the balances shown and the associated specific reserve for loan losses presented in the following table ($ in thousands). | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal | $ | 24,447 | $ | 45,964 | |||||||||||||||||||||
Recorded investment(5) | $ | 25,291 | $ | 51,054 | |||||||||||||||||||||
Impaired loans without a specific reserve | $ | 6,850 | $ | 9,611 | |||||||||||||||||||||
Impaired loans with a specific reserve | $ | 18,441 | $ | 41,443 | |||||||||||||||||||||
Specific reserves for loan losses, impaired loans | $ | 9,772 | $ | 19,560 | |||||||||||||||||||||
-5 | Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. | ||||||||||||||||||||||||
Impaired loans had the average balances and interest income recognized and received in cash as presented in the following table ($ in thousands). | |||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Average recorded investment | $ | 38,173 | $ | 66,898 | |||||||||||||||||||||
Interest income recognized | $ | 182 | $ | 195 | |||||||||||||||||||||
Interest income received in cash | $ | 186 | $ | 612 | |||||||||||||||||||||
Modifications and troubled debt restructurings | |||||||||||||||||||||||||
During the nine months ended September 30, 2013 the partnership had not modified any loans. Of the six modified loans with an aggregate principal of $22,702,000 as of December 31, 2012, during the nine months ended September 30, 2013, one loan paid in full all amounts owning and another loan was foreclosed upon, leaving four loans with an aggregate principal of $3,703,000 in effect at September 30, 2013. | |||||||||||||||||||||||||
During the nine months ended September 30, 2013 the partnership entered into a forbearance agreement which qualified as a troubled debt restructuring under GAAP resulting in no losses being recorded. | |||||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||
Activity in the allowance for loan losses is presented in the following table for the nine months ended September 30 ($ in thousands). | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Balance, January 1 | $ | 19,815 | $ | 22,035 | |||||||||||||||||||||
Provision for loan losses | (142 | ) | 139 | ||||||||||||||||||||||
Charge-offs, net | |||||||||||||||||||||||||
Charge-offs | (14,344 | ) | (2,414 | ) | |||||||||||||||||||||
Recoveries | 4,588 | 21 | |||||||||||||||||||||||
Charge-offs, net | (9,756 | ) | (2,393 | ) | |||||||||||||||||||||
Balance, September 30 | $ | 9,917 | $ | 19,781 | |||||||||||||||||||||
Specific reserves | $ | 9,772 | $ | 19,260 | |||||||||||||||||||||
General reserves | 145 | 521 | |||||||||||||||||||||||
Balance, September 30 | $ | 9,917 | $ | 19,781 | |||||||||||||||||||||
Ratio of charge-offs, net during the period to average secured loans outstanding during the period | 14.47 | % | 3.38 | % | |||||||||||||||||||||
Allowance for loan losses applicable to secured loans (by property type) and the percentage of principal (by property type) are presented in the following table ($ in thousands). | |||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||
Secured loans by property type | |||||||||||||||||||||||||
Single family | $ | 9,772 | 66 | % | $ | 19,255 | 76 | % | |||||||||||||||||
Multi-family | — | — | 60 | 4 | |||||||||||||||||||||
Commercial | 135 | 33 | 490 | 19 | |||||||||||||||||||||
Land | 10 | 1 | 10 | 1 | |||||||||||||||||||||
Total for secured loans | $ | 9,917 | 100 | % | $ | 19,815 | 100 | % | |||||||||||||||||
Unsecured loans | $ | — | 100 | % | $ | — | 100 | % | |||||||||||||||||
Total allowance for loan losses | $ | 9,917 | 100 | % | $ | 19,815 | 100 | % | |||||||||||||||||
Note_5_Real_Estate_Owned_REO
Note 5 - Real Estate Owned (REO) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||||||||||||||||||
Real Estate Disclosure [Text Block] | ' | ||||||||||||||||||||||||||||||||
NOTE 5 – REAL ESTATE OWNED (REO) | |||||||||||||||||||||||||||||||||
REO held for sale | |||||||||||||||||||||||||||||||||
REO held for sale at September 30, 2013 and December 31, 2012, was $18,481,000 and $0, respectively. The properties at September 30, 2013 consisted of the following. | |||||||||||||||||||||||||||||||||
- | Acquired through foreclosure 4 units in a multi-family building located in San Francisco County. Three of the units have sold in the fourth quarter for approximately their carrying value, and the remaining unit is under contract for sale at a price approximating carrying value. | ||||||||||||||||||||||||||||||||
- | Designated from REO held as investment an 8 unit multi-family rental property located in San Francisco County. This property is under contract for sale and is anticipated to close before December 31, 2013. | ||||||||||||||||||||||||||||||||
- | Designated from REO held as investment a commercial rental property located in San Francisco County. The general partners expect this property to sell in the first half of 2014. | ||||||||||||||||||||||||||||||||
The net rental income for the two designated properties, and any other REO held for sale rental results, has been reclassified from REO – Rental Operations, to Revenues – Other for all periods presented in the financial statements and the Results of Operations in Item 2 of this report. The net rental income for REO held for sale properties for the three months ended September 30, 2013 and 2012 was $156,000 and $129,000, respectively, and for the nine months ended September 30, 2013 and 2012, $392,000 and $716,000, respectively. Interest expense on the mortgages securing the rental properties was $142,000 and $149,000 for the three months ended September 30, 2013 and 2012, respectively, and $436,000 and $505,000 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||
REO held as investment | |||||||||||||||||||||||||||||||||
For REO, held as investment, the activity in net book value (NBV) including changes in the impairment reserves are summarized in the following table for the nine months ended September 30 ($ in thousands). | |||||||||||||||||||||||||||||||||
NBV | Accumulated Depreciation | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Balance, January 1 | $ | 181,333 | $ | 161,402 | $ | 5,926 | $ | 3,594 | |||||||||||||||||||||||||
Acquisitions | 3,099 | 1,649 | — | — | |||||||||||||||||||||||||||||
Dispositions | (1,398 | ) | 7 | — | (7 | ) | |||||||||||||||||||||||||||
Improvements/betterments | 2,961 | 1,712 | — | — | |||||||||||||||||||||||||||||
Designated from REO held for sale | — | 17,896 | — | — | |||||||||||||||||||||||||||||
Designated to REO held for sale | (14,584 | ) | — | (411 | ) | — | |||||||||||||||||||||||||||
Changes in net realizable values | (397 | ) | — | — | — | ||||||||||||||||||||||||||||
Depreciation | (1,868 | ) | (1,731 | ) | 1,868 | 1,731 | |||||||||||||||||||||||||||
Balance, September 30 | $ | 169,146 | $ | 180,935 | $ | 7,383 | $ | 5,318 | |||||||||||||||||||||||||
During 2013, the partnership’s REO held as investment transactions are summarized below. | |||||||||||||||||||||||||||||||||
- | Acquired through foreclosure a commercial office property located in Contra Costa County. The recorded investment was approximately $1,500,000. The partnership placed its interest in the title to the property in a single asset entity named San Pablo Dam Road Property Company, LLC. Upon completion of rehabilitation work, the property will be rented. | ||||||||||||||||||||||||||||||||
- | Acquired through foreclosure a multi-family complex located in Solano County. The recorded investment was approximately $1,000,000. The partnership placed its interest in the title to the property in a single asset entity named Willow Street Property Company, LLC. Upon completion of rehabilitation work, the property will be rented. | ||||||||||||||||||||||||||||||||
- | Sold a tenant-in-common unit located in San Francisco County. The unit sold for approximately its carrying value after taking into account a previously recorded valuation reserve. | ||||||||||||||||||||||||||||||||
- | Acquired through foreclosure a 6 unit apartment building located in Solano County. The recorded investment was approximately $399,000. The partnership placed its interest in the title to the property in a single asset entity named San 515 Louisiana Property Company, LLC. Upon completion of rehabilitation, the property will be rented. | ||||||||||||||||||||||||||||||||
- | Designated two properties as REO held for sale. | ||||||||||||||||||||||||||||||||
See the tables below for further details regarding the REO properties. | |||||||||||||||||||||||||||||||||
REO, held as investment, summarized by property type is presented in the following table ($ in thousands). | |||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Properties | NBV | Properties | NBV | ||||||||||||||||||||||||||||||
Property type | |||||||||||||||||||||||||||||||||
Rental | 20 | 142,791 | 19 | 154,566 | |||||||||||||||||||||||||||||
Development | 3 | 19,828 | 3 | 20,223 | |||||||||||||||||||||||||||||
Other, principally land | 3 | 6,527 | 3 | 6,544 | |||||||||||||||||||||||||||||
Total REO, held as investment, net | 26 | $ | 169,146 | 25 | $ | 181,333 | |||||||||||||||||||||||||||
Rental properties include single-family residences (1-4 units), multi-family buildings, wholly-owned condominium complexes, fractured condominium complexes and commercial property. | |||||||||||||||||||||||||||||||||
Development properties consist of the following three properties at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||
- | A property under construction consisting of two condominium units, with a carrying value of $5,479,000 and cost to complete of approximately $538,000. | ||||||||||||||||||||||||||||||||
- | A property consisting of six remaining (of 13 original) tenants-in-common units, with a carrying value of approximately $5,166,000 and cost to complete of approximately $274,000. In April 2013 one of the units was sold at its carrying value. | ||||||||||||||||||||||||||||||||
- | A property located in Los Angeles County, presently zoned and entitled as commercial, being developed and re-entitled to residential. | ||||||||||||||||||||||||||||||||
Other, property consists of the following three properties at September 30, 2013 and December 31, 2012: | |||||||||||||||||||||||||||||||||
- | Approximately 12 acres located in Stanislaus County zoned commercial. | ||||||||||||||||||||||||||||||||
- | Approximately 13 acres located in Marin County, presently zoned residential. | ||||||||||||||||||||||||||||||||
- | A partially completed home subdivision located in Fresno County. The property has rental operations of five single-family residences. | ||||||||||||||||||||||||||||||||
REO, held as investment, summarized by geographic area is presented in the following table, ($ in thousands). | |||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Rental | Non-Rental | Rental | Non-Rental | ||||||||||||||||||||||||||||||
No. | NBV | No. | NBV | No. | NBV | No. | NBV | ||||||||||||||||||||||||||
San Francisco | 3 | $ | 3,932 | 2 | $ | 10,644 | 5 | $ | 17,962 | 2 | $ | 11,398 | |||||||||||||||||||||
San Francisco Bay Area(1) | 10 | 25,624 | 1 | 1,210 | 7 | 22,553 | 1 | 1,210 | |||||||||||||||||||||||||
Northern California(1) | 5 | 45,411 | 2 | 5,318 | 5 | 45,480 | 2 | 5,335 | |||||||||||||||||||||||||
Southern California | 2 | 67,824 | 1 | 9,183 | 2 | 68,571 | 1 | 8,824 | |||||||||||||||||||||||||
Total REO Held as investment | 20 | $ | 142,791 | 6 | $ | 26,355 | 19 | $ | 154,566 | 6 | $ | 26,767 | |||||||||||||||||||||
(1) Excluding line(s) above. | |||||||||||||||||||||||||||||||||
Rental properties summarized by property type is presented in the following table ($ in thousands). | |||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Property type | Units | Properties | NBV | Units | Properties | NBV | |||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||
Single family | |||||||||||||||||||||||||||||||||
1-4 Units | 1 | 1 | $ | 1,500 | 1 | 1 | $ | 1,592 | |||||||||||||||||||||||||
Condominiums(2) | 212 | 3 | 63,926 | 220 | 4 | 68,447 | |||||||||||||||||||||||||||
Fractured Condominiums(3) | 440 | 10 | 72,059 | 440 | 10 | 72,292 | |||||||||||||||||||||||||||
Multi-family | 17 | 2 | 927 | 8 | 1 | 376 | |||||||||||||||||||||||||||
Commercial | 14 | 4 | 4,379 | 3 | 3 | 11,859 | |||||||||||||||||||||||||||
Total rental properties | 684 | 20 | $ | 142,791 | 672 | 19 | $ | 154,566 | |||||||||||||||||||||||||
(2) Includes units in condominium complexes wholly-owned by the partnership. | |||||||||||||||||||||||||||||||||
(3) Includes units in condominium complexes where some units had been sold prior to the partnership’s acquisition. | |||||||||||||||||||||||||||||||||
The earnings/(loss) from rental operations of the real estate owned, held as investment is presented in the following table for the three and nine months ended September 30 ($ in thousands). | |||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Rental income | $ | 2,950 | $ | 2,680 | $ | 8,357 | $ | 7,685 | |||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||
Administration and payroll | 351 | 355 | 1,055 | 1,083 | |||||||||||||||||||||||||||||
Homeowner association fees | 208 | 231 | 614 | 609 | |||||||||||||||||||||||||||||
Receiver fees | — | 52 | 60 | 202 | |||||||||||||||||||||||||||||
Utilities and maintenance | 342 | 329 | 887 | 944 | |||||||||||||||||||||||||||||
Advertising and promotions | 40 | 41 | 98 | 99 | |||||||||||||||||||||||||||||
Property taxes | 340 | 431 | 849 | 1,409 | |||||||||||||||||||||||||||||
Other | 51 | 54 | 169 | 228 | |||||||||||||||||||||||||||||
Total operating expenses | 1,332 | 1,493 | 3,732 | 4,574 | |||||||||||||||||||||||||||||
Net operating income | 1,618 | 1,187 | 4,625 | 3,111 | |||||||||||||||||||||||||||||
Depreciation | 567 | 560 | 1,711 | 1,661 | |||||||||||||||||||||||||||||
Rental operations, net | $ | 1,051 | $ | 627 | $ | 2,914 | $ | 1,450 | |||||||||||||||||||||||||
Interest expense on the mortgages securing the rental properties was $451,000 and $378,000 for the three months ended September 30, 2013 and 2012, respectively, and $1,238,000 and $1,338,000 for the nine months ended September 30, 2013 and 2012, respectively. |
Note_6_Mortgages_Payable
Note 6 - Mortgages Payable | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Debt Disclosure [Text Block] | ' | ||||||||
NOTE 6 – MORTGAGES PAYABLE | |||||||||
Mortgages payable transactions are summarized in the following table for the nine months ended September 30, ($ in thousands). | |||||||||
2013 | 2012 | ||||||||
Principal, January 1 | $ | 47,293 | $ | 43,681 | |||||
New mortgages taken | 5,000 | 5,160 | |||||||
Principal repaid | (882 | ) | (1,267 | ) | |||||
Principal, September 30 | $ | 51,411 | $ | 47,574 | |||||
Mortgages payable are summarized in the following table (mortgage balance $ in thousands). | |||||||||
September 30, | December 31, | ||||||||
Lender – summary of terms | 2013 | 2012 | |||||||
NorthMarq Capital – Secured by a condominium complex, located in Los Angeles County, matures July 1, 2015, interest rate (2.91%) varies monthly (LIBOR plus 2.73%), monthly payment(1)(2) $119,987 | $ | 18,281 | $ | 18,607 | |||||
East West Bank – Secured by a fractured condominium project located in Sacramento County, matures June 1, 2017, interest rate varies monthly (greater of Prime plus 1% or 5.50%), monthly payment(2) $78,283 | 13,439 | 13,578 | |||||||
Business Partners – Secured by a commercial property located in San Francisco County, matures May 1, 2015, interest rate varies monthly (greater of 5-year Treasuries plus 2.33% or 6.53%), monthly payment(1)(2) $78,802 | 6,818 | 7,100 | |||||||
Chase Bank – Secured by a condominium complex located in Contra Costa County, matures September 1, 2042, interest rate variable (fixed until September 1, 2017 at 3.52%), monthly payment $23,228 | 5,061 | 5,136 | |||||||
CapitalSource – Secured by a condominium complex, located in Los Angeles County, matures July 1, 2023, interest rate variable (fixed until June 1, 2016 at 3.95%), monthly payment $26,254 | 4,981 | — | |||||||
First National Bank of Northern California – Secured by eight condominium units located in San Francisco County, matures November 1, 2016, interest rate varies monthly (greater of Prime plus 2.35% or 5.70%), monthly payment(2) $12,856 | 2,156 | 2,179 | |||||||
Wells Fargo Bank – Secured by a condominium unit located in San Francisco County, matures October 1, 2032, interest rate (2.88%) varies annually (LIBOR plus 2.75%), monthly payment $2,014 | 355 | 365 | |||||||
Wells Fargo Bank – Secured by a condominium unit located in San Francisco County, matures September 15, 2032, interest rate (4.48%) varies annually (bank rate plus 3.10%), monthly payment $2,174 | 320 | 328 | |||||||
Total mortgages payable | $ | 51,411 | $ | 47,293 | |||||
(1) Monthly payments include amounts for various impounds such as property taxes, insurance, and repairs. | |||||||||
(2) Monthly payments based upon a 30 year amortization, with a balloon payment due at maturity. | |||||||||
Future minimum payments of principal at September 30, 2013 are presented in the following table ($ in thousands). | |||||||||
2013 | $ | 332 | |||||||
2014 | 1,367 | ||||||||
2015 | 24,527 | ||||||||
2016 | 2,583 | ||||||||
2017 | 13,009 | ||||||||
Thereafter | 9,593 | ||||||||
Total | $ | 51,411 | |||||||
In June 2013, the partnership obtained a mortgage loan of $5,000,000 from CapitalSource Bank, secured by a fractured condominium complex in Los Angeles County. |
Note_7_Fair_Value
Note 7 - Fair Value | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
NOTE 7 – FAIR VALUE | |||||||||||||||||
The company does not record its loans nor REO at fair value on a recurring basis. Loans designated impaired (i.e. that are collateral dependent) are measured at fair value on a non-recurring basis. REO held for sale is recorded at the lower of cost or market and are measured at fair value on a non-recurring basis. For REO held as investment the recorded value, net of valuation reserves, is compared quarterly to the sum of the undiscounted cash flows and are measured at fair value on a non-recurring basis. At September 30, 2013 and December 31, 2012 the fair value of the loans and REO without a specific reserve was determined to be equivalent to their book value. | |||||||||||||||||
Non-recurring basis | |||||||||||||||||
Assets and liabilities measured at fair value on a non-recurring basis are presented in the following table as of September 30, 2013 and December 31, 2012 ($ in thousands). | |||||||||||||||||
Fair Value Measurement at Report Date Using | |||||||||||||||||
30-Sep-13 | Quoted Prices | Significant | Significant | Total | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Impaired loans with specific reserve, net | $ | - | $ | 8,669 | $ | - | $ | 8,669 | |||||||||
REO held for sale (1) | $ | - | $ | 8,630 | $ | - | $ | 8,630 | |||||||||
REO held as investment(2) | $ | - | $ | 5,166 | $ | - | $ | 5,166 | |||||||||
31-Dec-12 | |||||||||||||||||
Impaired loans with specific reserve, net | $ | - | $ | 21,883 | $ | - | $ | 21,883 | |||||||||
REO held as investment(2) | $ | - | $ | - | $ | 15,259 | $ | 15,259 | |||||||||
-1 | Includes REO under a contract for sale. | ||||||||||||||||
-2 | Includes REO with an adjustment to its valuation reserve within the year noted. | ||||||||||||||||
Note_8_Commitments_and_Conting
Note 8 - Commitments and Contingencies, Other Than Loan and REO Commitments | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
NOTE 8 – COMMITMENTS AND CONTINGENCIES, OTHER THAN LOAN AND REO COMMITMENTS | |
Legal proceedings | |
In the normal course of business, the partnership may become involved in various legal proceedings such as assignment of rents, bankruptcy proceedings, appointment of receivers, unlawful detainers, judicial foreclosure, etc., to enforce the provisions of the deeds of trust, collect the debt owed under the promissory notes, or to protect, or recoup its investment from the real property secured by the deeds of trust and to resolve disputes between borrowers, lenders, lien holders and mechanics. None of these actions typically would be of any material importance. As of the date hereof, the partnership is not involved in any legal proceedings other than those that would be considered part of the normal course of business. | |
Commitments | |
There were no commitments other than those disclosed in Notes 4 and 5. |
Note_9_Subsequent_Events
Note 9 - Subsequent Events | 9 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
NOTE 9 – SUBSEQUENT EVENTS | |
None |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of presentation | |
The partnership’s consolidated financial statements include the accounts of the partnership, its wholly-owned subsidiaries, and its 72.5%-owned subsidiary. All significant intercompany transactions and balances have been eliminated in consolidation. | |
Reclassification, Policy [Policy Text Block] | ' |
Reclassifications | |
Certain reclassifications, not affecting previously reported net income or total partner capital, have been made to the previously issued consolidated financial statements to conform to the current year presentation. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Management estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions about the reported amounts of assets and liabilities, and disclosures of contingent assets and liabilities, at the dates of the financial statements and the reported amounts of revenues and expenses during the reported periods. Such estimates relate principally to the determination of the allowance for loan losses, including the valuation of impaired loans, (which itself requires determining the fair value of the collateral), and the valuation of real estate held for sale and held as investment, at acquisition and subsequently. Actual results could differ significantly from these estimates. | |
The fair value of the collateral is reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the net realizable value (fair value of the collateral less the cost to sell), net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest. This computation is done for each loan (whether performing or designated impaired), and while loans secured by collateral of similar property type are grouped, there is enough distinction and variation in the collateral that a loan-by-loan, collateral-by-collateral analysis is appropriate. | |
The fair value of the collateral at sale is the price that would be received (i.e. the exit price) in an orderly transaction in the principal or most advantageous market under current market conditions and is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. | |
Appraisals of commercial real property generally present three approaches to estimating value: 1) market comparables or sales approach; 2) cost to replace and 3) capitalized cash flows or investment approach. These approaches may or may not result in a common, single value. The market-comparables approach may yield several different values depending on certain basic assumptions, such as, determining highest and best use (which may or may not be the current use); determining the condition (e.g. as-is, when-completed, or for land when-entitled); and determining the unit of value (e.g. as a series of individual unit sales or as a bulk disposition). In some prior years, as has been previously noted, the appraisal process was further complicated by the low real estate transaction volumes of which a very high percentage were considered to be distressed sales, as well as other poor market conditions. | |
Management has the requisite familiarity with the markets the partnership lends in generally and of the collateral properties specifically to analyze sales-comparables and assess their suitability/applicability. Management is acquainted with market participants – investors, developers, brokers, lenders – that are useful, relevant secondary sources of data and information regarding valuation and valuation variability. These secondary sources may have familiarity with and perspectives on pending transactions, successful strategies to optimize value, and the history and details of specific properties – on and off the market – that enhance the process and analysis that is particularly and principally germane to establishing value in distressed markets and/or property types (such as land held for development and for units in a condominium conversion). Multiple inputs from different sources often collectively provide the best evidence of fair value. In these cases expected cash flows would be considered alongside other relevant information. Management’s analysis of these secondary sources, as well as the analysis of comparable sales, assists management in preparing its estimates regarding valuations, such as collateral fair value. However, such estimates are inherently imprecise and actual results could differ significantly from such estimates. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and cash equivalents | |
The partnership considers all highly liquid financial instruments with maturities of three months or less at the time of purchase to be cash equivalents. Periodically, partnership cash balances in banks exceed federally insured limits. | |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | ' |
Loans and interest income | |
Loans generally are stated at the unpaid principal balance (principal). Management has discretion to pay amounts (advances) to third parties on behalf of borrowers to protect the partnership’s interest in the loan. Advances include, but are not limited to, the payment of interest and principal on a senior lien to prevent foreclosure by the senior lien holder, property taxes, insurance premiums, and attorney fees. Advances generally are stated at the unpaid principal balance and accrue interest until repaid by the borrower. | |
The partnership may fund a specific loan origination net of an interest reserve to insure timely interest payments at the inception (one to two years) of the loan. As monthly interest payments become due, the partnership funds the payments into the affiliated trust account. | |
If based upon current information and events, it is probable the partnership will be unable to collect all amounts due according to the contractual terms of the loan agreement, then a loan may be designated as impaired. Impaired loans are included in management’s periodic analysis of recoverability. If a valuation allowance had been established on an impaired loan, any subsequent payments on impaired loans are applied to late fees and then to reduce first the accrued interest, then advances, and then unpaid principal. | |
From time to time, the partnership negotiates and enters into loan modifications with borrowers whose loans are delinquent. If the loan modification results in a significant reduction in the cash flow compared to the original note, the modification is deemed a troubled debt restructuring and a loss is recognized. In the normal course of the partnership’s operations, loans that mature may be renewed at then current market rates and terms for new loans. Such renewals are not designated as impaired, unless the matured loan was previously designated as impaired. | |
Interest is accrued daily based on the unpaid principal balance of the loans. An impaired loan continues to accrue as long as the loan is in the process of collection and is considered to be well-secured. Loans are placed on non-accrual status at the earlier of management’s determination that the primary source of repayment will come from the foreclosure and subsequent sale of the collateral securing the loan (which usually occurs when a notice of sale is filed) or when the loan is no longer considered well-secured. When a loan is placed on non-accrual status, the accrual of interest is discontinued; however, previously recorded interest is not reversed. A loan may return to accrual status when all delinquent interest and principal payments become current in accordance with the terms of the loan agreement. | |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | ' |
Allowance for loan losses | |
Loans and the related accrued interest and advances are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Delinquencies are determined based upon contractual terms. For impaired loans, a provision is made for loan losses to adjust the allowance for loan losses to an amount considered by management to be adequate, with due consideration to collateral values, such that the net carrying amount (unpaid principal balance, plus advances, plus accrued interest less the specific allowance) is reduced to the present value of future cash flows discounted at the loan’s effective interest rate, or, if a loan is collateral dependent, to the estimated net realizable value of the related collateral net of any senior loans and other claims. | |
Loans determined not to be individually impaired are grouped by the property type of the underlying collateral, and for each loan and for the total by property type, the amount of protective equity or amount of exposure to loss (i.e., the dollar amount of the deficiency of the fair value of the underlying collateral to the loan balance) is computed. | |
Based on its knowledge of the borrowers and their historical (and expected) performance, and the exposure to loss as indicated in the analysis, management estimates an appropriate reserve by property type for probable credit losses in the portfolio. Because the partnership is an asset-based lender, except as to owner-occupied residences, and because specific regions, neighborhoods and even properties within the same neighborhoods, vary significantly as to real estate values and transaction activity, general market trends, which may be indicative of a change in the risk of a loss, are secondary to the condition of the property, the property type and the neighborhood/region in which the property is located, and do not enter substantially into the determination of the amount of the non-specific (i.e. general) reserves. | |
The partnership charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. | |
Real Estate Held for Development and Sale, Policy [Policy Text Block] | ' |
Real estate owned (REO) held for sale | |
REO, held for sale includes real estate acquired in full or partial settlement of loan obligations generally through foreclosure that is being marketed for sale. REO, held for sale is recorded at acquisition at the lower of the amount owning per the note, plus any senior indebtedness, or at the property’s net realizable value. Any excess of the recorded investment in the loan over the net realizable value is charged against the allowance for loan losses. After acquisition, costs incurred relating to the development and improvement of property are capitalized to the extent they do not cause the recorded value to exceed the net realizable value, whereas costs relating to holding and disposition of the property are expensed as incurred. After acquisition, REO, held for sale is analyzed periodically for changes in net realizable values and any subsequent write down is charged to operating expenses. Any recovery in the net realizable value subsequent to such a write down is recorded – not to exceed the net realizable value at acquisition – as an offset to operating expenses. Gains or losses on sale of the property are recorded as an operating expense. Recognition of gains on the sale of real estate is dependent upon the transaction meeting certain criteria related to the nature of the property and the terms of the sale including potential seller financing. | |
Real Estate, Policy [Policy Text Block] | ' |
Real estate owned (REO), held as investment, net | |
REO, held as investment, net includes real estate acquired in full or partial settlement of loan obligations generally through foreclosure that is not being marketed for sale and is either being operated, such as rental properties; is being managed through the development process, including obtaining appropriate and necessary entitlements, permits and construction; or are idle properties awaiting more favorable market conditions. REO, held as investment, net, is recorded at acquisition at the lower of the amount owning per the note, plus any senior indebtedness, or at the property’s estimated net realizable value. After acquisition, costs incurred relating to the development and improvement of the property are capitalized, whereas costs relating to operating or holding the property are expensed. Subsequent to acquisition, management periodically compares the carrying value of real estate to expected undiscounted future cash flows for the purpose of assessing the recoverability of the recorded amounts. If the carrying value exceeds future undiscounted cash flows, the assets are reduced to estimated net realizable value. | |
Rental Income [Policy Text Block] | ' |
Rental income | |
Residential rental lease lengths generally range from month to month up to one year, and commercial rental lease lengths generally range from five to ten years, with rental income recognized when earned in accordance with the lease agreement. | |
Depreciation, Depletion, and Amortization [Policy Text Block] | ' |
Depreciation | |
Real estate owned held as investment that is being operated is depreciated on a straight-line basis over the estimated useful life of the property once the asset is placed in service. | |
Net Income per $1,000 Invested [Policy Text Block] | ' |
Net income per $1,000 invested | |
Amounts reflected in the statements of income as net income per $1,000 invested by limited partners for the entire period are amounts allocated to limited partners who held their investment throughout the period and have either elected to leave their profits to compound or elected to receive periodic distributions of their net income. Individual income is allocated each month based on the limited partners’ pro rata share of partners’ capital. Because the net income percentage varies from month to month, amounts per $1,000 will vary for those individuals who made or withdrew investments during the period, or selected other options. |
Note_3_General_Partners_and_Ot1
Note 3 - General Partners and Other Related Parties (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Related Party Transactions [Abstract] | ' | ||||||||||||||||
Mortgage Servicing Fee Activities [Table Text Block] | ' | ||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Chargeable by RMC | $ | 219 | $ | 272 | $ | 695 | $ | 810 | |||||||||
Waived by RMC | (73 | ) | (90 | ) | (232 | ) | (270 | ) | |||||||||
Charged | $ | 146 | $ | 182 | $ | 463 | $ | 540 | |||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ||||||||||||||||
Formation loan made | $ | 22,567 | |||||||||||||||
Unamortized discount on formation loan | (1,934 | ) | |||||||||||||||
Formation loan made, net | 20,633 | ||||||||||||||||
Repayments to date | (14,297 | ) | |||||||||||||||
Early withdrawal penalties applied | (643 | ) | |||||||||||||||
Formation loan, net | 5,693 | ||||||||||||||||
Unamortized discount on formation loan | 1,934 | ||||||||||||||||
Balance, September 30, 2013 | $ | 7,627 |
Note_4_Loans_Tables
Note 4 - Loans (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Secured Loan Principal Transactions [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal, January 1 | $ | 60,870 | $ | 73,386 | |||||||||||||||||||||
Loans funded or acquired | 16,638 | 10,606 | |||||||||||||||||||||||
Principal collected | (7,119 | ) | (7,899 | ) | |||||||||||||||||||||
Loans assigned to affiliates | (2,107 | ) | — | ||||||||||||||||||||||
Foreclosures | (18,975 | ) | (3,728 | ) | |||||||||||||||||||||
Principal, September 30 | $ | 49,307 | $ | 72,365 | |||||||||||||||||||||
Secured Loans Characteristics [Table Text Block] | ' | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of secured loans | 33 | 39 | |||||||||||||||||||||||
Secured loans – principal | $ | 49,307 | $ | 60,870 | |||||||||||||||||||||
Secured loans – lowest interest rate (fixed) | 3 | % | 3 | % | |||||||||||||||||||||
Secured loans – highest interest rate (fixed) | 12 | % | 12 | % | |||||||||||||||||||||
Average secured loan – principal | $ | 1,494 | $ | 1,561 | |||||||||||||||||||||
Average principal as percent of total principal | 3.03 | % | 2.56 | % | |||||||||||||||||||||
Average principal as percent of partners’ capital | 0.77 | % | 0.8 | % | |||||||||||||||||||||
Average principal as percent of total assets | 0.6 | % | 0.63 | % | |||||||||||||||||||||
Largest secured loan – principal | $ | 16,312 | $ | 16,697 | |||||||||||||||||||||
Largest principal as percent of total principal | 33.08 | % | 27.43 | % | |||||||||||||||||||||
Largest principal as percent of partners’ capital | 8.43 | % | 8.56 | % | |||||||||||||||||||||
Largest principal as percent of total assets | 6.57 | % | 6.74 | % | |||||||||||||||||||||
Smallest secured loan – principal | $ | 86 | $ | 87 | |||||||||||||||||||||
Smallest principal as percent of total principal | 0.18 | % | 0.14 | % | |||||||||||||||||||||
Smallest principal as percent of partners’ capital | 0.04 | % | 0.04 | % | |||||||||||||||||||||
Smallest principal as percent of total assets | 0.03 | % | 0.04 | % | |||||||||||||||||||||
Number of counties where security is located (all California) | 17 | 19 | |||||||||||||||||||||||
Largest percentage of principal in one county | 42.21 | % | 46.18 | % | |||||||||||||||||||||
Number of secured loans in foreclosure status | 5 | 6 | |||||||||||||||||||||||
Secured loans in foreclosure – principal | $ | 17,245 | $ | 1,910 | |||||||||||||||||||||
Number of secured loans with an interest reserve | — | — | |||||||||||||||||||||||
Interest reserves | $ | — | $ | — | |||||||||||||||||||||
Secured Loans Distributed within California [Table Text Block] | ' | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
San Francisco | 8 | $ | 20,815 | 42 | % | 6 | $ | 28,115 | 46 | % | |||||||||||||||
San Francisco Bay Area(1) | 9 | 22,048 | 45 | 16 | 25,688 | 42 | |||||||||||||||||||
Northern California(1) | 6 | 3,064 | 6 | 6 | 3,110 | 5 | |||||||||||||||||||
Southern California | 10 | 3,380 | 7 | 11 | 3,957 | 7 | |||||||||||||||||||
Total secured loans | 33 | $ | 49,307 | 100 | % | 39 | $ | 60,870 | 100 | % | |||||||||||||||
Secured Loans by Lien Position in the Collateral [Table Text Block] | ' | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
First trust deeds | 15 | $ | 34,107 | 69 | % | 17 | $ | 33,785 | 56 | % | |||||||||||||||
Second trust deeds | 17 | 14,909 | 30 | 21 | 26,789 | 44 | |||||||||||||||||||
Third trust deeds | 1 | 291 | 1 | 1 | 296 | — | |||||||||||||||||||
Total secured loans | 33 | 49,307 | 100 | % | 39 | 60,870 | 100 | % | |||||||||||||||||
Liens due other lenders at loan closing | 52,849 | 80,875 | |||||||||||||||||||||||
Total debt | $ | 102,156 | $ | 141,745 | |||||||||||||||||||||
Appraised property value at loan closing | $ | 150,883 | $ | 199,392 | |||||||||||||||||||||
Percent of total debt to appraised values (LTV) at loan closing(2) | 67.71 | % | 71.1 | % | |||||||||||||||||||||
Secured Loans by Property Type of the Collateral [Table Text Block] | ' | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Loans | Principal | Percent | Loans | Principal | Percent | ||||||||||||||||||||
Single family | 26 | $ | 32,526 | 66 | % | 31 | $ | 46,295 | 76 | % | |||||||||||||||
Multi-family | — | — | — | 2 | 2,557 | 4 | |||||||||||||||||||
Commercial | 6 | 16,247 | 33 | 5 | 11,479 | 19 | |||||||||||||||||||
Land | 1 | 534 | 1 | 1 | 539 | 1 | |||||||||||||||||||
Total secured loans | 33 | $ | 49,307 | 100 | % | 39 | $ | 60,870 | 100 | % | |||||||||||||||
Secured Loans Scheduled Maturities [Table Text Block] | ' | ||||||||||||||||||||||||
Scheduled maturities at September 30, 2013 | Loans | Principal | Percent | ||||||||||||||||||||||
2013 | 1 | $ | 96 | 0 | % | ||||||||||||||||||||
2014 | 6 | 11,914 | 24 | ||||||||||||||||||||||
2015 | 8 | 12,839 | 26 | ||||||||||||||||||||||
2016 | 3 | 4,012 | 8 | ||||||||||||||||||||||
2017 | 4 | 1,394 | 3 | ||||||||||||||||||||||
Thereafter | 1 | 237 | 1 | ||||||||||||||||||||||
Total future maturities | 23 | 30,492 | 62 | ||||||||||||||||||||||
Matured at September 30, 2013 | 10 | 18,815 | 38 | ||||||||||||||||||||||
Total secured loans | 33 | $ | 49,307 | 100 | % | ||||||||||||||||||||
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | ' | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Secured loans in non-accrual status | |||||||||||||||||||||||||
Number of loans | 11 | 18 | |||||||||||||||||||||||
Principal | $ | 18,794 | $ | 43,352 | |||||||||||||||||||||
Advances | 596 | 5,028 | |||||||||||||||||||||||
Accrued interest | 63 | 11 | |||||||||||||||||||||||
Loan balance | $ | 19,453 | $ | 48,391 | |||||||||||||||||||||
Foregone interest | $ | 560 | $ | 3,255 | |||||||||||||||||||||
Past Due [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Number of loans(3)(4) | 10 | 14 | |||||||||||||||||||||||
Principal | $ | 18,815 | $ | 36,486 | |||||||||||||||||||||
Advances | 743 | 5,014 | |||||||||||||||||||||||
Accrued interest | 63 | 61 | |||||||||||||||||||||||
Loan balance | $ | 19,621 | $ | 41,561 | |||||||||||||||||||||
Percent of principal | 38 | % | 60 | % | |||||||||||||||||||||
By Days Past Due [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Past Due Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Past due | |||||||||||||||||||||||||
30-89 days | $ | 16,743 | $ | 783 | |||||||||||||||||||||
90-179 days | 474 | 2,062 | |||||||||||||||||||||||
180 or more days | 1,170 | 19,033 | |||||||||||||||||||||||
Total past due | 18,387 | 21,878 | |||||||||||||||||||||||
Current | 30,920 | 38,992 | |||||||||||||||||||||||
Total secured loans | $ | 49,307 | $ | 60,870 | |||||||||||||||||||||
Impaired Loans [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Principal | $ | 24,447 | $ | 45,964 | |||||||||||||||||||||
Recorded investment(5) | $ | 25,291 | $ | 51,054 | |||||||||||||||||||||
Impaired loans without a specific reserve | $ | 6,850 | $ | 9,611 | |||||||||||||||||||||
Impaired loans with a specific reserve | $ | 18,441 | $ | 41,443 | |||||||||||||||||||||
Specific reserves for loan losses, impaired loans | $ | 9,772 | $ | 19,560 | |||||||||||||||||||||
Average Balances and Interest Income [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Impaired Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
September 30, | December 31, | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Average recorded investment | $ | 38,173 | $ | 66,898 | |||||||||||||||||||||
Interest income recognized | $ | 182 | $ | 195 | |||||||||||||||||||||
Interest income received in cash | $ | 186 | $ | 612 | |||||||||||||||||||||
Loan Loss Activity [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Balance, January 1 | $ | 19,815 | $ | 22,035 | |||||||||||||||||||||
Provision for loan losses | (142 | ) | 139 | ||||||||||||||||||||||
Charge-offs, net | |||||||||||||||||||||||||
Charge-offs | (14,344 | ) | (2,414 | ) | |||||||||||||||||||||
Recoveries | 4,588 | 21 | |||||||||||||||||||||||
Charge-offs, net | (9,756 | ) | (2,393 | ) | |||||||||||||||||||||
Balance, September 30 | $ | 9,917 | $ | 19,781 | |||||||||||||||||||||
Specific reserves | $ | 9,772 | $ | 19,260 | |||||||||||||||||||||
General reserves | 145 | 521 | |||||||||||||||||||||||
Balance, September 30 | $ | 9,917 | $ | 19,781 | |||||||||||||||||||||
Ratio of charge-offs, net during the period to average secured loans outstanding during the period | 14.47 | % | 3.38 | % | |||||||||||||||||||||
By Property Typle [Member] | ' | ||||||||||||||||||||||||
Note 4 - Loans (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Allowance for Credit Losses on Financing Receivables [Table Text Block] | ' | ||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||
Amount | Percent | Amount | Percent | ||||||||||||||||||||||
Allowance for loan losses | |||||||||||||||||||||||||
Secured loans by property type | |||||||||||||||||||||||||
Single family | $ | 9,772 | 66 | % | $ | 19,255 | 76 | % | |||||||||||||||||
Multi-family | — | — | 60 | 4 | |||||||||||||||||||||
Commercial | 135 | 33 | 490 | 19 | |||||||||||||||||||||
Land | 10 | 1 | 10 | 1 | |||||||||||||||||||||
Total for secured loans | $ | 9,917 | 100 | % | $ | 19,815 | 100 | % | |||||||||||||||||
Unsecured loans | $ | — | 100 | % | $ | — | 100 | % | |||||||||||||||||
Total allowance for loan losses | $ | 9,917 | 100 | % | $ | 19,815 | 100 | % |
Note_5_Real_Estate_Owned_REO_T
Note 5 - Real Estate Owned (REO) (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ' | ||||||||||||||||||||||||||||||||
REO, Held as Investment, the Activity and Changes in the Impairment Reserves | ' | ||||||||||||||||||||||||||||||||
NBV | Accumulated Depreciation | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Balance, January 1 | $ | 181,333 | $ | 161,402 | $ | 5,926 | $ | 3,594 | |||||||||||||||||||||||||
Acquisitions | 3,099 | 1,649 | — | — | |||||||||||||||||||||||||||||
Dispositions | (1,398 | ) | 7 | — | (7 | ) | |||||||||||||||||||||||||||
Improvements/betterments | 2,961 | 1,712 | — | — | |||||||||||||||||||||||||||||
Designated from REO held for sale | — | 17,896 | — | — | |||||||||||||||||||||||||||||
Designated to REO held for sale | (14,584 | ) | — | (411 | ) | — | |||||||||||||||||||||||||||
Changes in net realizable values | (397 | ) | — | — | — | ||||||||||||||||||||||||||||
Depreciation | (1,868 | ) | (1,731 | ) | 1,868 | 1,731 | |||||||||||||||||||||||||||
Balance, September 30 | $ | 169,146 | $ | 180,935 | $ | 7,383 | $ | 5,318 | |||||||||||||||||||||||||
REO, Held as Investment - by Property Type | ' | ||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Properties | NBV | Properties | NBV | ||||||||||||||||||||||||||||||
Property type | |||||||||||||||||||||||||||||||||
Rental | 20 | 142,791 | 19 | 154,566 | |||||||||||||||||||||||||||||
Development | 3 | 19,828 | 3 | 20,223 | |||||||||||||||||||||||||||||
Other, principally land | 3 | 6,527 | 3 | 6,544 | |||||||||||||||||||||||||||||
Total REO, held as investment, net | 26 | $ | 169,146 | 25 | $ | 181,333 | |||||||||||||||||||||||||||
REO Held as Investment By Geographic Area [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Rental | Non-Rental | Rental | Non-Rental | ||||||||||||||||||||||||||||||
No. | NBV | No. | NBV | No. | NBV | No. | NBV | ||||||||||||||||||||||||||
San Francisco | 3 | $ | 3,932 | 2 | $ | 10,644 | 5 | $ | 17,962 | 2 | $ | 11,398 | |||||||||||||||||||||
San Francisco Bay Area(1) | 10 | 25,624 | 1 | 1,210 | 7 | 22,553 | 1 | 1,210 | |||||||||||||||||||||||||
Northern California(1) | 5 | 45,411 | 2 | 5,318 | 5 | 45,480 | 2 | 5,335 | |||||||||||||||||||||||||
Southern California | 2 | 67,824 | 1 | 9,183 | 2 | 68,571 | 1 | 8,824 | |||||||||||||||||||||||||
Total REO Held as investment | 20 | $ | 142,791 | 6 | $ | 26,355 | 19 | $ | 154,566 | 6 | $ | 26,767 | |||||||||||||||||||||
Schedule of Real Estate Properties [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
30-Sep-13 | 31-Dec-12 | ||||||||||||||||||||||||||||||||
Property type | Units | Properties | NBV | Units | Properties | NBV | |||||||||||||||||||||||||||
Residential | |||||||||||||||||||||||||||||||||
Single family | |||||||||||||||||||||||||||||||||
1-4 Units | 1 | 1 | $ | 1,500 | 1 | 1 | $ | 1,592 | |||||||||||||||||||||||||
Condominiums(2) | 212 | 3 | 63,926 | 220 | 4 | 68,447 | |||||||||||||||||||||||||||
Fractured Condominiums(3) | 440 | 10 | 72,059 | 440 | 10 | 72,292 | |||||||||||||||||||||||||||
Multi-family | 17 | 2 | 927 | 8 | 1 | 376 | |||||||||||||||||||||||||||
Commercial | 14 | 4 | 4,379 | 3 | 3 | 11,859 | |||||||||||||||||||||||||||
Total rental properties | 684 | 20 | $ | 142,791 | 672 | 19 | $ | 154,566 | |||||||||||||||||||||||||
Earnings/(Loss) from Rental Operations of the Real Estate Owned, Held as Investment [Table Text Block] | ' | ||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Rental income | $ | 2,950 | $ | 2,680 | $ | 8,357 | $ | 7,685 | |||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||||||
Administration and payroll | 351 | 355 | 1,055 | 1,083 | |||||||||||||||||||||||||||||
Homeowner association fees | 208 | 231 | 614 | 609 | |||||||||||||||||||||||||||||
Receiver fees | — | 52 | 60 | 202 | |||||||||||||||||||||||||||||
Utilities and maintenance | 342 | 329 | 887 | 944 | |||||||||||||||||||||||||||||
Advertising and promotions | 40 | 41 | 98 | 99 | |||||||||||||||||||||||||||||
Property taxes | 340 | 431 | 849 | 1,409 | |||||||||||||||||||||||||||||
Other | 51 | 54 | 169 | 228 | |||||||||||||||||||||||||||||
Total operating expenses | 1,332 | 1,493 | 3,732 | 4,574 | |||||||||||||||||||||||||||||
Net operating income | 1,618 | 1,187 | 4,625 | 3,111 | |||||||||||||||||||||||||||||
Depreciation | 567 | 560 | 1,711 | 1,661 | |||||||||||||||||||||||||||||
Rental operations, net | $ | 1,051 | $ | 627 | $ | 2,914 | $ | 1,450 |
Note_6_Mortgages_Payable_Table
Note 6 - Mortgages Payable (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Schedule of Participating Mortgage Loans [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Principal, January 1 | $ | 47,293 | $ | 43,681 | |||||
New mortgages taken | 5,000 | 5,160 | |||||||
Principal repaid | (882 | ) | (1,267 | ) | |||||
Principal, September 30 | $ | 51,411 | $ | 47,574 | |||||
Schedule of Debt [Table Text Block] | ' | ||||||||
September 30, | December 31, | ||||||||
Lender – summary of terms | 2013 | 2012 | |||||||
NorthMarq Capital – Secured by a condominium complex, located in Los Angeles County, matures July 1, 2015, interest rate (2.91%) varies monthly (LIBOR plus 2.73%), monthly payment(1)(2) $119,987 | $ | 18,281 | $ | 18,607 | |||||
East West Bank – Secured by a fractured condominium project located in Sacramento County, matures June 1, 2017, interest rate varies monthly (greater of Prime plus 1% or 5.50%), monthly payment(2) $78,283 | 13,439 | 13,578 | |||||||
Business Partners – Secured by a commercial property located in San Francisco County, matures May 1, 2015, interest rate varies monthly (greater of 5-year Treasuries plus 2.33% or 6.53%), monthly payment(1)(2) $78,802 | 6,818 | 7,100 | |||||||
Chase Bank – Secured by a condominium complex located in Contra Costa County, matures September 1, 2042, interest rate variable (fixed until September 1, 2017 at 3.52%), monthly payment $23,228 | 5,061 | 5,136 | |||||||
CapitalSource – Secured by a condominium complex, located in Los Angeles County, matures July 1, 2023, interest rate variable (fixed until June 1, 2016 at 3.95%), monthly payment $26,254 | 4,981 | — | |||||||
First National Bank of Northern California – Secured by eight condominium units located in San Francisco County, matures November 1, 2016, interest rate varies monthly (greater of Prime plus 2.35% or 5.70%), monthly payment(2) $12,856 | 2,156 | 2,179 | |||||||
Wells Fargo Bank – Secured by a condominium unit located in San Francisco County, matures October 1, 2032, interest rate (2.88%) varies annually (LIBOR plus 2.75%), monthly payment $2,014 | 355 | 365 | |||||||
Wells Fargo Bank – Secured by a condominium unit located in San Francisco County, matures September 15, 2032, interest rate (4.48%) varies annually (bank rate plus 3.10%), monthly payment $2,174 | 320 | 328 | |||||||
Total mortgages payable | $ | 51,411 | $ | 47,293 | |||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||||||
2013 | $ | 332 | |||||||
2014 | 1,367 | ||||||||
2015 | 24,527 | ||||||||
2016 | 2,583 | ||||||||
2017 | 13,009 | ||||||||
Thereafter | 9,593 | ||||||||
Total | $ | 51,411 |
Note_7_Fair_Value_Tables
Note 7 - Fair Value (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements, Nonrecurring [Table Text Block] | ' | ||||||||||||||||
Fair Value Measurement at Report Date Using | |||||||||||||||||
30-Sep-13 | Quoted Prices | Significant | Significant | Total | |||||||||||||
in Active | Other | Unobservable | |||||||||||||||
Markets for | Observable | Inputs | |||||||||||||||
Identical Assets | Inputs | (Level 3) | |||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Impaired loans with specific reserve, net | $ | - | $ | 8,669 | $ | - | $ | 8,669 | |||||||||
REO held for sale (1) | $ | - | $ | 8,630 | $ | - | $ | 8,630 | |||||||||
REO held as investment(2) | $ | - | $ | 5,166 | $ | - | $ | 5,166 | |||||||||
31-Dec-12 | |||||||||||||||||
Impaired loans with specific reserve, net | $ | - | $ | 21,883 | $ | - | $ | 21,883 | |||||||||
REO held as investment(2) | $ | - | $ | - | $ | 15,259 | $ | 15,259 |
Note_1_Organizational_and_Gene1
Note 1 - Organizational and General (Details) | Sep. 30, 2013 |
Disclosure Text Block [Abstract] | ' |
Loan Brokerage Commission Percent Minimum | 2.00% |
Loan Brokerage Commission Percent Maximum | 5.00% |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' |
Noncontrolling Interest, Ownership Percentage by Parent | 72.50% |
Estimating Real Property Value, Number of Approaches | 3 |
Cash and Cash Equivalents, Maximum Initial Maturity | '3 months |
Per Amount of Net Income Invested by Limited Partners (in Dollars) | $1,000 |
Minimum [Member] | ' |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' |
Interest Reserve Minimum Length | '1 year |
Commerical Lease Term | '5 years |
Maximum [Member] | ' |
Note 2 - Summary of Significant Accounting Policies (Details) [Line Items] | ' |
Interest Reserve Maximum Length | '2 years |
Residential Lease Term | '1 year |
Commerical Lease Term | '10 years |
Note_3_General_Partners_and_Ot2
Note 3 - General Partners and Other Related Parties (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' |
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest | ' | ' | 1.00% | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $594,000 | ($1,229,000) | $224,000 | ($4,380,000) |
Proceeds from Commissions Received | 89,000 | 0 | 315,000 | 107,000 |
Fees and Commissions, Other | 5,876 | 150 | 16,052 | 1,505 |
Servicing Fees, Percentage | 1.00% | ' | 1.00% | ' |
Asset Management Fees | 190,000 | 195,000 | 574,000 | 645,000 |
Operating Expenses | -147,000 | 1,073,000 | 433,000 | 3,661,000 |
Annual Formation Loan Payments | ' | ' | 1,800,000 | ' |
One Percent of Total Profits and Losses [Member] | General Partner [Member] | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 6,000 | -12,000 | 2,000 | -44,000 |
Monthly [Member] | Maximum [Member] | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Rate | ' | ' | 0.03% | ' |
Annually [Member] | Maximum [Member] | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Rate | ' | ' | 0.38% | ' |
Imputed interest [Member] | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' |
Interest Expense, Related Party | 99,000 | 114,000 | 289,000 | 207,000 |
Reimbursed to RMC [Member] | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' |
Operating Expenses | 386,000 | 318,000 | 1,160,000 | 996,000 |
Three Years [Member] | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' |
Annual Formation Loan Payments | ' | ' | $5,400,000 | ' |
Maximum [Member] | ' | ' | ' | ' |
Note 3 - General Partners and Other Related Parties (Details) [Line Items] | ' | ' | ' | ' |
Servicing Fees, Percentage | 1.50% | ' | 1.50% | ' |
Note_3_General_Partners_and_Ot3
Note 3 - General Partners and Other Related Parties (Details) - Mortgage Servicing Fee Activities (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Mortgage Servicing Fee Activities [Abstract] | ' | ' | ' | ' |
Chargeable by RMC | $219 | $272 | $695 | $810 |
Waived by RMC | -73 | -90 | -232 | -270 |
Charged | $146 | $182 | $463 | $540 |
Note_3_General_Partners_and_Ot4
Note 3 - General Partners and Other Related Parties (Details) - Formation Loan - Transactions (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Formation Loan - Transactions [Abstract] | ' |
Formation loan made | $22,567 |
Unamortized discount on formation loan | -1,934 |
Formation loan made, net | 20,633 |
Repayments to date | -14,297 |
Early withdrawal penalties applied | -643 |
Formation loan, net | 5,693 |
Unamortized discount on formation loan | 1,934 |
Balance, September 30, 2013 | $7,627 |
Note_4_Loans_Details
Note 4 - Loans (Details) (USD $) | 9 Months Ended | 12 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | |
Construction Loan [Member] | Largest Loan [Member] | Larger Loans [Member] | Secured by Condominium Properties [Member] | Secured by Condominium Properties [Member] | Maturity Date Extended [Member] | Workout Agreements [Member] | Workout Agreements [Member] | Workout Agreements [Member] | Past Due 90 Days or More [Member] | Past Due 90 Days or More [Member] | Generally [Member] | Condominium Units in Contra Costa County, California [Member] | Condominium Complex [Member] | Term of 5 Years or Less [Member] | Interest Only [Member] | Nonaccrual Status [Member] | Nonaccrual Status [Member] | Nonaccrual Status [Member] | Nonaccrual Status [Member] | Secured Loans [Member] | Secured Loans [Member] | Modified [Member] | Modified [Member] | Secured Debt [Member] | Secured Debt [Member] | Maximum [Member] | Minimum [Member] | |||
Made All Required Payments [Member] | Past Maturity [Member] | Past Maturity [Member] | Past Maturity [Member] | Past Maturity [Member] | ||||||||||||||||||||||||||
Note 4 - Loans (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable, Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '5 years |
Loans Receivable, Percent of Total | 100.00% | 100.00% | 10.00% | 33.08% | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45.00% | 33.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable, Percent of Aggregate Principal | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 48.00% | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable, Amortization Term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal balances (in Dollars) | $49,307,000 | $60,870,000 | ' | $16,312,000 | ' | $18,798,000 | $36,855,000 | $350,000 | $2,967,000 | $3,365,000 | $20,081,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $659,000 | $99,000 | ' | ' | $3,703,000 | $22,702,000 | $350,000 | $383,000 | ' | ' |
Loans Receivable, Percent of Assets | ' | ' | ' | 6.57% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable, Interest Rate, Stated | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75 | 128 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Residential Buildings, Number of Units | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | 1 |
Number of Sectors | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage Loans on Real Estate, Number of Loans | 33 | 39 | ' | ' | ' | ' | ' | 2 | ' | 4 | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1 | 1 | ' | ' | 4 | 6 | ' | ' | ' | ' |
Number of secured loans | 33 | 39 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9 | 12 | ' | ' | 9 | 10 | ' | ' | ' | ' | ' | ' |
Number of Borrowers | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | 6 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable, Interest Accrual, Number of Days | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable, Interest Accrued During Period (in Dollars) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27,000 | 22,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Receivable (in Dollars) | $228,000 | $182,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $63,000 | $14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loans Receivable, Number of Days Past Due | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_4_Loans_Details_Secured_L
Note 4 - Loans (Details) - Secured Loan Transactions (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Note 4 - Loans (Details) - Secured Loan Transactions [Line Items] | ' | ' |
Loans funded or acquired | $40 | ' |
Principal | 49,307 | ' |
Secured Loans [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loan Transactions [Line Items] | ' | ' |
Principal | 60,870 | 73,386 |
Loans funded or acquired | 16,638 | 10,606 |
Principal collected | -7,119 | -7,899 |
Loans assigned to affiliates | -2,107 | ' |
Foreclosures | -18,975 | -3,728 |
Principal | $49,307 | $72,365 |
Note_4_Loans_Details_Secured_L1
Note 4 - Loans (Details) - Secured Loans Characteristics (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Secured Loans Characteristics [Abstract] | ' | ' |
Number of secured loans | 33 | 39 |
Secured loans b principal (in Dollars) | $49,307 | $60,870 |
Secured loans b lowest interest rate (fixed) | 3.00% | 3.00% |
Secured loans b highest interest rate (fixed) | 12.00% | 12.00% |
Average secured loan b principal (in Dollars) | 1,494 | 1,561 |
Average principal as percent of total principal | 3.03% | 2.56% |
Average principal as percent of partnersb capital | 0.77% | 0.80% |
Average principal as percent of total assets | 0.60% | 0.63% |
Largest secured loan b principal (in Dollars) | 16,312 | 16,697 |
Largest principal as percent of total principal | 33.08% | 27.43% |
Largest principal as percent of partnersb capital | 8.43% | 8.56% |
Largest principal as percent of total assets | 6.57% | 6.74% |
Smallest secured loan b principal (in Dollars) | 86 | 87 |
Smallest principal as percent of total principal | 0.18% | 0.14% |
Smallest principal as percent of partnersb capital | 0.04% | 0.04% |
Smallest principal as percent of total assets | 0.03% | 0.04% |
Number of counties where security is located (all California) | 17 | 19 |
Largest percentage of principal in one county | 42.21% | 46.18% |
Number of secured loans in foreclosure status | 5 | 6 |
Secured loans in foreclosure b principal (in Dollars) | $17,245 | $1,910 |
Note_4_Loans_Details_Secured_L2
Note 4 - Loans (Details) - Secured Loans Distributed within California (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | |||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Loans | 33 | 39 | ||
Secured loans b principal (in Dollars) | $49,307,000 | $60,870,000 | ||
Percent | 100.00% | 100.00% | ||
San Francisco [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Loans | 8 | 6 | ||
Secured loans b principal (in Dollars) | 20,815,000 | 28,115,000 | ||
Percent | 42.00% | 46.00% | ||
San Francisco Bay Area [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Loans | 9 | [1] | 16 | [1] |
Secured loans b principal (in Dollars) | 22,048,000 | [1] | 25,688,000 | [1] |
Percent | 45.00% | [1] | 42.00% | [1] |
Northern California [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Loans | 6 | [1] | 6 | [1] |
Secured loans b principal (in Dollars) | 3,064,000 | [1] | 3,110,000 | [1] |
Percent | 6.00% | [1] | 5.00% | [1] |
Southern California [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans Distributed within California [Line Items] | ' | ' | ||
Loans | 10 | 11 | ||
Secured loans b principal (in Dollars) | $3,380,000 | $3,957,000 | ||
Percent | 7.00% | 7.00% | ||
[1] | Excludes line(s) above |
Note_4_Loans_Details_Secured_L3
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral (USD $) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2012 | |||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ||
Loans | 33 | 39 | ||
Secured loans b principal (in Dollars) | $49,307,000 | $60,870,000 | ||
Percent | 100.00% | 100.00% | ||
Liens due other lenders at loan closing (in Dollars) | 52,849,000 | 80,875,000 | ||
Total debt (in Dollars) | 102,156,000 | 141,745,000 | ||
Appraised property value at loan closing (in Dollars) | 150,883,000 | 199,392,000 | ||
Percent of total debt to appraised values (LTV) at loan closing(2) | 67.71% | [1] | 71.10% | [1] |
First Trust Deeds [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ||
Loans | 15 | 17 | ||
Secured loans b principal (in Dollars) | 34,107,000 | 33,785,000 | ||
Percent | 69.00% | 56.00% | ||
Second Trust Deeds [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ||
Loans | 17 | 21 | ||
Secured loans b principal (in Dollars) | 14,909,000 | 26,789,000 | ||
Percent | 30.00% | 44.00% | ||
Third Trust Deeds [Member] | ' | ' | ||
Note 4 - Loans (Details) - Secured Loans by Lien Position in the Collateral [Line Items] | ' | ' | ||
Loans | 1 | 1 | ||
Secured loans b principal (in Dollars) | $291,000 | $296,000 | ||
Percent | 1.00% | ' | ||
[1] | Based on appraised values and liens due other lenders at loan closing. The loan to value computation does not take into account subsequent increases or decreases in security property values following the loan closing nor does it include decreases or increases of the amount owing on senior liens to other lenders by payments or interest accruals, if any. Property values likely have changed, particularly over the last four years, and the portfolio's current loan to value ratio likely is higher than this historical ratio. |
Note_4_Loans_Details_Secured_L4
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral [Line Items] | ' | ' |
Loans | 33 | 39 |
Secured loans b principal (in Dollars) | $49,307,000 | $60,870,000 |
Percent | 100.00% | 100.00% |
Single Family [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral [Line Items] | ' | ' |
Loans | 26 | 31 |
Secured loans b principal (in Dollars) | 32,526,000 | 46,295,000 |
Percent | 66.00% | 76.00% |
Multi-family [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral [Line Items] | ' | ' |
Loans | ' | 2 |
Secured loans b principal (in Dollars) | ' | 2,557,000 |
Percent | ' | 4.00% |
Commercial [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral [Line Items] | ' | ' |
Loans | 6 | 5 |
Secured loans b principal (in Dollars) | 16,247,000 | 11,479,000 |
Percent | 33.00% | 19.00% |
Land [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans by Property Type of the Collateral [Line Items] | ' | ' |
Loans | 1 | 1 |
Secured loans b principal (in Dollars) | $534,000 | $539,000 |
Percent | 1.00% | 1.00% |
Note_4_Loans_Details_Secured_L5
Note 4 - Loans (Details) - Secured Loans Scheduled Maturities (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Secured Loans Scheduled Maturities [Abstract] | ' | ' | ||
2013 | 1 | ' | ||
2013 (in Dollars) | $96 | ' | ||
2013 | 0.00% | ' | ||
2014 | 6 | ' | ||
2014 (in Dollars) | 11,914 | ' | ||
2014 | 24.00% | ' | ||
2015 | 8 | ' | ||
2015 (in Dollars) | 12,839 | ' | ||
2015 | 26.00% | ' | ||
2016 | 3 | ' | ||
2016 (in Dollars) | 4,012 | ' | ||
2016 | 8.00% | ' | ||
2017 | 4 | ' | ||
2017 (in Dollars) | 1,394 | ' | ||
2017 | 3.00% | ' | ||
Thereafter | 1 | ' | ||
Thereafter (in Dollars) | 237 | ' | ||
Thereafter | 1.00% | ' | ||
Total future maturities | 23 | ' | ||
Total future maturities (in Dollars) | 30,492 | ' | ||
Total future maturities | 62.00% | ' | ||
Matured at September 30, 2013 | 10 | [1],[2] | 14 | [1],[2] |
Matured at September 30, 2013 (in Dollars) | 18,815 | ' | ||
Matured at September 30, 2013 | 38.00% | ' | ||
Total secured loans | 33 | 39 | ||
Total secured loans (in Dollars) | $49,307 | ' | ||
Total secured loans | 100.00% | ' | ||
[1] | The secured loans past maturity include 9 and 12 loans as of September 30, 2013 and December 31, 2012, also included in the secured loans in non-accrual status. | |||
[2] | The secured loans past maturity include 9 and 10 loans as of September 30, 2013 and December 31, 2012, respectively, also included in the secured loans delinquency. |
Note_4_Loans_Details_Secured_L6
Note 4 - Loans (Details) - Secured Loans Past Maturity (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Number of loans(3)(4) | 10 | [1],[2] | 14 | [1],[2] |
Principal | $49,307,000 | $60,870,000 | ||
Advances | 766,000 | 5,035,000 | ||
Accrued interest | 228,000 | 182,000 | ||
Loan balance | 40,532,000 | 46,380,000 | ||
Percent of principal | 100.00% | 100.00% | ||
Past Maturity [Member] | ' | ' | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ||
Principal | 18,815,000 | 36,486,000 | ||
Advances | 743,000 | 5,014,000 | ||
Accrued interest | 63,000 | 61,000 | ||
Loan balance | $19,621,000 | $41,561,000 | ||
Percent of principal | 38.00% | 60.00% | ||
[1] | The secured loans past maturity include 9 and 12 loans as of September 30, 2013 and December 31, 2012, also included in the secured loans in non-accrual status. | |||
[2] | The secured loans past maturity include 9 and 10 loans as of September 30, 2013 and December 31, 2012, respectively, also included in the secured loans delinquency. |
Note_4_Loans_Details_Secured_L7
Note 4 - Loans (Details) - Secured Loans Summarized by Payment Delinquency (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Secured loans b principal | $49,307,000 | $60,870,000 |
Past Due 30-89 Days [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Secured loans b principal | 16,743,000 | 783,000 |
Past Due 90-179 Days [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Secured loans b principal | 474,000 | 2,062,000 |
Past Due 180 Days or More [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Secured loans b principal | 1,170,000 | 19,033,000 |
Past Due [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Secured loans b principal | 18,387,000 | 21,878,000 |
Current [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Secured loans b principal | $30,920,000 | $38,992,000 |
Note_4_Loans_Details_Secured_L8
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2012 | |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Number of loans | 33 | 39 |
Loan balance | $49,307,000 | $60,870,000 |
Nonaccrual Status [Member] | Principal [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Loan balance | 18,794,000 | 43,352,000 |
Nonaccrual Status [Member] | Advances [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Loan balance | 596,000 | 5,028,000 |
Nonaccrual Status [Member] | Accrued Interest [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Loan balance | 63,000 | 11,000 |
Nonaccrual Status [Member] | ' | ' |
Note 4 - Loans (Details) - Secured Loans in Nonaccrual Status [Line Items] | ' | ' |
Number of loans | 11 | 18 |
Loan balance | 19,453,000 | 48,391,000 |
Foregone interest | $560,000 | $3,255,000 |
Note_4_Loans_Details_Secured_L9
Note 4 - Loans (Details) - Secured Loans Designated as Impaired Loans (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
In Thousands, unless otherwise specified | ||||
Secured Loans Designated as Impaired Loans [Abstract] | ' | ' | ||
Principal | $24,447 | $45,964 | ||
Recorded investment(5) | 25,291 | [1] | 51,054 | [1] |
Impaired loans without a specific reserve | 6,850 | 9,611 | ||
Impaired loans with a specific reserve | 18,441 | 41,443 | ||
Specific reserves for loan losses, impaired loans | $9,772 | $19,560 | ||
[1] | Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. |
Note_4_Loans_Details_Impaired_
Note 4 - Loans (Details) - Impaired Loans - Average Balances and Interest Income (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 |
Impaired Loans - Average Balances and Interest Income [Abstract] | ' | ' |
Average recorded investment | $38,173 | $66,898 |
Interest income recognized | 182 | 195 |
Interest income received in cash | $186 | $612 |
Note_4_Loans_Details_Allowance
Note 4 - Loans (Details) - Allowance for Loan Losses Activity (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Balance | $19,815 | $22,035 |
Provision for loan losses | -142 | 139 |
Charge-offs, net | ' | ' |
Charge-offs | -14,344 | -2,414 |
Recoveries | 4,588 | 21 |
Charge-offs, net | -9,756 | -2,393 |
Ratio of charge-offs, net during the period to average secured loans outstanding during the period | 14.47% | 3.38% |
Balance | 9,917 | 19,781 |
Specific [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Reserves | 9,772 | 19,260 |
General [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Reserves | $145 | $521 |
Note_4_Loans_Details_Allowance1
Note 4 - Loans (Details) - Allowance for Loan Losses by Property Type (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Amount (in Dollars) | $9,917 | $19,815 |
Percent | 100.00% | 100.00% |
Single Family [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Amount (in Dollars) | 9,772 | 19,255 |
Percent | 66.00% | 76.00% |
Multi-family [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Amount (in Dollars) | ' | 60 |
Percent | ' | 4.00% |
Commercial [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Amount (in Dollars) | 135 | 490 |
Percent | 33.00% | 19.00% |
Land [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Amount (in Dollars) | 10 | 10 |
Percent | 1.00% | 1.00% |
Secured Loans [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Amount (in Dollars) | $9,917 | $19,815 |
Percent | 100.00% | 100.00% |
Unsecured Loan [Member] | ' | ' |
Financing Receivable, Allowance for Credit Losses [Line Items] | ' | ' |
Percent | 100.00% | 100.00% |
Note_5_Real_Estate_Owned_REO_D
Note 5 - Real Estate Owned (REO) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Real Estate Held-for-sale | $18,481,000 | ' | $18,481,000 | ' | $0 | ' |
Operating Leases, Income Statement, Lease Revenue | 2,950,000 | 2,680,000 | 8,357,000 | 7,685,000 | ' | ' |
Interest Expense, Other Long-term Debt | 593,000 | 528,000 | 1,674,000 | 1,847,000 | ' | ' |
Held as investment, net | 169,146,000 | 180,935,000 | 169,146,000 | 180,935,000 | 181,333,000 | 161,402,000 |
Remaining [Member] | Tenants-in-common Units [Member] | San Francisco [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | 6 | ' | 6 | ' | 6 | ' |
Multi-Family Building [Member] | San Francisco County [Member] | Acquired Through Foreclosure [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | 4 | ' | 4 | ' | ' | ' |
Multi-Family Building [Member] | San Francisco County [Member] | Sold [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | 3 | ' | 3 | ' | ' | ' |
Multi-Family Rental Property [Member] | Stanislaus County [Member] | Under Contract For Sale [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | 8 | ' | 8 | ' | ' | ' |
Rental Property [Member] | San Francisco [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Real Estate Properties | 3 | ' | 3 | ' | 5 | ' |
Held as investment, net | 3,932,000 | ' | 3,932,000 | ' | 17,962,000 | ' |
Rental Property [Member] | REO Held for Sale [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Interest Expense, Other Long-term Debt | 142,000 | 149,000 | 436,000 | 505,000 | ' | ' |
Rental Property [Member] | REO Held as Investment [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Interest Expense, Other Long-term Debt | 451,000 | 378,000 | 1,238,000 | 1,338,000 | ' | ' |
Rental Property [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | 684 | ' | 684 | ' | 672 | ' |
Number of Real Estate Properties | 20 | ' | 20 | ' | 19 | ' |
Held as investment, net | 142,791,000 | ' | 142,791,000 | ' | 154,566,000 | ' |
Commercial Office - Contra Costa County [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Real Estate Acquired Through Foreclosure | 1,500,000 | ' | 1,500,000 | ' | ' | ' |
Multi-Family Complex - Solano Count [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Real Estate Acquired Through Foreclosure | 1,000,000 | ' | 1,000,000 | ' | ' | ' |
Apartment Building [Member] | Solano County [Member] | Acquired Through Foreclosure [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | 6 | ' | 6 | ' | ' | ' |
Apartment Building [Member] | Solano County [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Real Estate Acquired Through Foreclosure | 399,000 | ' | 399,000 | ' | ' | ' |
In Construction [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Real Estate Properties | 2 | ' | 2 | ' | 2 | ' |
Held as investment, net | 5,479,000 | ' | 5,479,000 | ' | 5,479,000 | ' |
Real Estate Investment Property, Remaining Construction Costs | 538,000 | ' | 538,000 | ' | 538,000 | ' |
Tenants-in-common Units [Member] | San Francisco [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Units in Real Estate Property | 13 | ' | 13 | ' | 13 | ' |
Held as investment, net | 5,166,000 | ' | 5,166,000 | ' | 5,166,000 | ' |
Real Estate Investment Property, Remaining Construction Costs | 274,000 | ' | 274,000 | ' | 274,000 | ' |
Residential Single Family [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Number of Real Estate Properties | 5 | ' | 5 | ' | 5 | ' |
Stanislaus County [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Area of Real Estate Property (in Acres) | 12 | ' | 12 | ' | 12 | ' |
Marin County [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Area of Real Estate Property (in Acres) | 13 | ' | 13 | ' | 13 | ' |
REO Held for Sale [Member] | ' | ' | ' | ' | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Operating Leases, Income Statement, Lease Revenue | $156,000 | $129,000 | $392,000 | $716,000 | ' | ' |
Note_5_Real_Estate_Owned_REO_D1
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, the Activity and Changes in the Impairment Reserves (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, the Activity and Changes in the Impairment Reserves [Line Items] | ' | ' |
Real Estate Held As Investment | $181,333,000 | $161,402,000 |
Real Estate Held As Investment | 5,926,000 | 3,594,000 |
Acquisitions | 3,099,000 | 1,649,000 |
Balance | -1,398,000 | 7,000 |
Balance | ' | -7,000 |
Changes in net realizable values | -397,000 | ' |
Depreciation | -1,868,000 | -1,731,000 |
Depreciation | 1,868,000 | 1,731,000 |
Improvements/betterments | 2,961,000 | 1,712,000 |
Designated from REO held for sale | ' | 17,896,000 |
Real Estate Held As Investment | 169,146,000 | 180,935,000 |
Real Estate Held As Investment | 7,383,000 | 5,318,000 |
Designated to REO Held For Sale [Member] | ' | ' |
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, the Activity and Changes in the Impairment Reserves [Line Items] | ' | ' |
Balance | -14,584,000 | ' |
Balance | ($411,000) | ' |
Note_5_Real_Estate_Owned_REO_D2
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment - by Property Type (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 |
Property type | ' | ' | ' | ' |
NBV (in Dollars) | $169,146,000 | $181,333,000 | $180,935,000 | $161,402,000 |
Rental Property [Member] | ' | ' | ' | ' |
Property type | ' | ' | ' | ' |
Properties | 20 | 19 | ' | ' |
NBV (in Dollars) | 142,791,000 | 154,566,000 | ' | ' |
Development [Member] | ' | ' | ' | ' |
Property type | ' | ' | ' | ' |
Properties | 3 | 3 | ' | ' |
NBV (in Dollars) | 19,828,000 | 20,223,000 | ' | ' |
Long-Term Hold [Member] | ' | ' | ' | ' |
Property type | ' | ' | ' | ' |
Properties | 3 | 3 | ' | ' |
NBV (in Dollars) | 6,527,000 | 6,544,000 | ' | ' |
REO Held as Investment [Member] | ' | ' | ' | ' |
Property type | ' | ' | ' | ' |
Properties | 26 | 25 | ' | ' |
NBV (in Dollars) | $169,146,000 | $181,333,000 | ' | ' |
Note_5_Real_Estate_Owned_REO_D3
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Property Net Book Value (in Dollars) | $169,146,000 | $181,333,000 | $180,935,000 | $161,402,000 | ||
Rental Property [Member] | San Francisco [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 3 | 5 | ' | ' | ||
Property Net Book Value (in Dollars) | 3,932,000 | 17,962,000 | ' | ' | ||
Rental Property [Member] | San Francisco Bay Area [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 10 | [1] | 7 | [1] | ' | ' |
Property Net Book Value (in Dollars) | 25,624,000 | [1] | 22,553,000 | [1] | ' | ' |
Rental Property [Member] | Northern California [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 5 | [1] | 5 | [1] | ' | ' |
Property Net Book Value (in Dollars) | 45,411,000 | [1] | 45,480,000 | [1] | ' | ' |
Rental Property [Member] | Southern California [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 2 | 2 | ' | ' | ||
Property Net Book Value (in Dollars) | 67,824,000 | 68,571,000 | ' | ' | ||
Rental Property [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 20 | 19 | ' | ' | ||
Property Net Book Value (in Dollars) | 142,791,000 | 154,566,000 | ' | ' | ||
Non-Rentals [Member] | San Francisco [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 2 | 2 | ' | ' | ||
Property Net Book Value (in Dollars) | 10,644,000 | 11,398,000 | ' | ' | ||
Non-Rentals [Member] | San Francisco Bay Area [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 1 | [1] | 1 | [1] | ' | ' |
Property Net Book Value (in Dollars) | 1,210,000 | [1] | 1,210,000 | [1] | ' | ' |
Non-Rentals [Member] | Northern California [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 2 | [1] | 2 | [1] | ' | ' |
Property Net Book Value (in Dollars) | 5,318,000 | [1] | 5,335,000 | [1] | ' | ' |
Non-Rentals [Member] | Southern California [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 1 | 1 | ' | ' | ||
Property Net Book Value (in Dollars) | 9,183,000 | 8,824,000 | ' | ' | ||
Non-Rentals [Member] | ' | ' | ' | ' | ||
Note 5 - Real Estate Owned (REO) (Details) - REO, Held as Investment, by Geographic Area [Line Items] | ' | ' | ' | ' | ||
Number of Properties | 6 | 6 | ' | ' | ||
Property Net Book Value (in Dollars) | $26,355,000 | $26,767,000 | ' | ' | ||
[1] | Excluding line(s) above. |
Note_5_Real_Estate_Owned_REO_D4
Note 5 - Real Estate Owned (REO) (Details) - Rental properties (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2011 | ||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ||
NBV (in Dollars) | $169,146,000 | $181,333,000 | $180,935,000 | $161,402,000 | ||
Residential 1-4 Units [Member] | ' | ' | ' | ' | ||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ||
Units | 1 | 1 | ' | ' | ||
Properties | 1 | 1 | ' | ' | ||
NBV (in Dollars) | 1,500,000 | 1,592,000 | ' | ' | ||
Residential Condominiums [Member] | ' | ' | ' | ' | ||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ||
Units | 212 | [1] | 220 | [1] | ' | ' |
Properties | 3 | [1] | 4 | [1] | ' | ' |
NBV (in Dollars) | 63,926,000 | [1] | 68,447,000 | [1] | ' | ' |
Residential Fractured Condominiums [Member] | ' | ' | ' | ' | ||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ||
Units | 440 | [2] | 440 | [2] | ' | ' |
Properties | 10 | [2] | 10 | [2] | ' | ' |
NBV (in Dollars) | 72,059,000 | [2] | 72,292,000 | [2] | ' | ' |
Residential Apartments [Member] | ' | ' | ' | ' | ||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ||
Units | 17 | 8 | ' | ' | ||
Properties | 2 | 1 | ' | ' | ||
NBV (in Dollars) | 927,000 | 376,000 | ' | ' | ||
Commercial [Member] | ' | ' | ' | ' | ||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ||
Units | 14 | 3 | ' | ' | ||
Properties | 4 | 3 | ' | ' | ||
NBV (in Dollars) | 4,379,000 | 11,859,000 | ' | ' | ||
Rental Property [Member] | ' | ' | ' | ' | ||
Real Estate Properties [Line Items] | ' | ' | ' | ' | ||
Units | 684 | 672 | ' | ' | ||
Properties | 20 | 19 | ' | ' | ||
NBV (in Dollars) | $142,791,000 | $154,566,000 | ' | ' | ||
[1] | Includes units in condominium complexes wholly-owned by the partnership. | |||||
[2] | Includes units in condominium complexes where some units had been sold prior to the partnership's acquisition. |
Note_5_Real_Estate_Owned_REO_D5
Note 5 - Real Estate Owned (REO) (Details) - Earnings/(Loss) from Rental Operations of the Real Estate Owned, Held as Investment (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 5 - Real Estate Owned (REO) (Details) - Earnings/(Loss) from Rental Operations of the Real Estate Owned, Held as Investment [Line Items] | ' | ' | ' | ' |
Rental income | $2,950,000 | $2,680,000 | $8,357,000 | $7,685,000 |
Operating expenses | ' | ' | ' | ' |
Administration and payroll | 351,000 | 355,000 | 1,055,000 | 1,083,000 |
Homeowner association fees | 208,000 | 231,000 | 614,000 | 609,000 |
Receiver fees | ' | 52,000 | 60,000 | 202,000 |
Utilities and maintenance | 342,000 | 329,000 | 887,000 | 944,000 |
Advertising and promotions | 40,000 | 41,000 | 98,000 | 99,000 |
Property taxes | 340,000 | 431,000 | 849,000 | 1,409,000 |
Other | 10,000 | 21,000 | 39,000 | 131,000 |
Total operating expenses | -147,000 | 1,073,000 | 433,000 | 3,661,000 |
Net operating income | 1,618,000 | 1,187,000 | 4,625,000 | 3,111,000 |
Depreciation | 567,000 | 560,000 | 1,711,000 | 1,661,000 |
Rental operations, net | 1,051,000 | 627,000 | 2,914,000 | 1,450,000 |
REO Held as Investment [Member] | ' | ' | ' | ' |
Operating expenses | ' | ' | ' | ' |
Other | 51,000 | 54,000 | 169,000 | 228,000 |
Total operating expenses | $1,332,000 | $1,493,000 | $3,732,000 | $4,574,000 |
Note_6_Mortgages_Payable_Detai
Note 6 - Mortgages Payable (Details) (USD $) | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
Debt Disclosure [Abstract] | ' | ' | ' |
Amortization Period | ' | '30 years | ' |
Proceeds from Sale and Collection of Mortgage Notes Receivable (in Dollars) | $5,000,000 | $5,000,000 | $5,160,000 |
Note_6_Mortgages_Payable_Detai1
Note 6 - Mortgages Payable (Details) - Mortgages Payable (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Mortgages Payable [Abstract] | ' | ' |
Principal | $47,293 | $43,681 |
New mortgages taken | 5,000 | 5,160 |
Principal repaid | -882 | -1,267 |
Principal | $51,411 | $47,574 |
Note_6_Mortgages_Payable_Detai2
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Mortgages payable | $51,411 | $47,293 |
NorthMarq Capital [Member] | ' | ' |
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Mortgages payable | 18,281 | 18,607 |
East West Bank [Member] | ' | ' |
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Mortgages payable | 13,439 | 13,578 |
Business Partners [Member] | ' | ' |
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Mortgages payable | 6,818 | 7,100 |
Chase [Member] | ' | ' |
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Mortgages payable | 5,061 | 5,136 |
Capital Source [Member] | ' | ' |
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Mortgages payable | 4,981 | ' |
First National Bank of Northern California [Member] | ' | ' |
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Mortgages payable | 2,156 | 2,179 |
Wells Fargo Bank [Member] | ' | ' |
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Mortgages payable | 355 | 365 |
Wells Fargo Bank (Wachovia Mortgage) [Member] | ' | ' |
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender [Line Items] | ' | ' |
Mortgages payable | $320 | $328 |
Note_6_Mortgages_Payable_Detai3
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (Parentheticals) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Dec. 31, 2012 | ||
NorthMarq Capital [Member] | ' | ' | ||
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgages payable, effective interest rate | 2.91% | 2.91% | ||
Mortgages payable, variable spread | 2.73% | 2.73% | ||
Mortgages payable, monthly payment (in Dollars) | $119,987 | [1],[2] | $119,987 | [1],[2] |
East West Bank [Member] | ' | ' | ||
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgages payable, variable spread | 1.00% | 1.00% | ||
Mortgages payable, monthly payment (in Dollars) | 78,283 | [2] | 78,283 | [2] |
Mortgages payable, minimum interest rate | 5.50% | 5.50% | ||
Business Partners [Member] | ' | ' | ||
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgages payable, variable spread | 2.33% | 2.33% | ||
Mortgages payable, monthly payment (in Dollars) | 78,802 | [1],[2] | 78,802 | [1],[2] |
Mortgages payable, minimum interest rate | 6.53% | 6.53% | ||
Chase [Member] | ' | ' | ||
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgages payable, effective interest rate | 3.52% | 3.52% | ||
Mortgages payable, monthly payment (in Dollars) | 23,228 | 23,228 | ||
Capital Source [Member] | ' | ' | ||
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgages payable, effective interest rate | 3.95% | 3.95% | ||
Mortgages payable, monthly payment (in Dollars) | 26,254 | 26,254 | ||
First National Bank of Northern California [Member] | ' | ' | ||
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgages payable, variable spread | 2.35% | 2.35% | ||
Mortgages payable, monthly payment (in Dollars) | 12,856 | [2] | 12,856 | [2] |
Mortgages payable, minimum interest rate | 5.70% | 5.70% | ||
Wells Fargo Bank [Member] | ' | ' | ||
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgages payable, effective interest rate | 2.88% | 2.88% | ||
Mortgages payable, variable spread | 2.75% | 2.75% | ||
Mortgages payable, monthly payment (in Dollars) | 2,014 | 2,014 | ||
Wells Fargo Bank (Wachovia Mortgage) [Member] | ' | ' | ||
Note 6 - Mortgages Payable (Details) - Mortgages Payable by Lender (Parentheticals) [Line Items] | ' | ' | ||
Mortgages payable, effective interest rate | 4.48% | 4.48% | ||
Mortgages payable, variable spread | 3.10% | 3.10% | ||
Mortgages payable, monthly payment (in Dollars) | $2,174 | $2,174 | ||
[1] | Monthly payments include amounts for various impounds such as property taxes, insurance, and repairs. | |||
[2] | Monthly payments based upon a 30 year amortization, with a balloon payment due at maturity. |
Note_6_Mortgages_Payable_Detai4
Note 6 - Mortgages Payable (Details) - Future Minimum Payments of Principal on Mortgages (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Future Minimum Payments of Principal on Mortgages [Abstract] | ' |
2013 | $332 |
2014 | 1,367 |
2015 | 24,527 |
2016 | 2,583 |
2017 | 13,009 |
Thereafter | 9,593 |
Total | $51,411 |
Note_7_Fair_Value_Details_Asse
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with specific reserve, net | $18,441,000 | $41,443,000 | ||
REO held for sale (1) | 18,481,000 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
REO held for sale (1) | ' | [1] | ' | |
REO held as investment | ' | [2] | ' | [2] |
Fair Value, Inputs, Level 2 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with specific reserve, net | 8,669,000 | 21,883,000 | ||
REO held for sale (1) | 8,630,000 | [1] | ' | |
REO held as investment | 5,166,000 | [2] | ' | [2] |
Fair Value, Inputs, Level 3 [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
REO held for sale (1) | ' | [1] | ' | |
REO held as investment | ' | [2] | 15,259,000 | [2] |
Estimate of Fair Value Measurement [Member] | ' | ' | ||
Note 7 - Fair Value (Details) - Assets and Liabilities Measured at Fair Value on a Non-recurring Basis [Line Items] | ' | ' | ||
Impaired loans with specific reserve, net | 8,669,000 | 21,883,000 | ||
REO held for sale (1) | 8,630,000 | ' | ||
REO held as investment | $5,166,000 | [1] | $15,259,000 | [1] |
[1] | Includes REO under a contract for sale. | |||
[2] | Includes REO with an adjustment to its valuation reserve within the year noted. |