Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Feb. 28, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | CK0000889123 | |
Entity Registrant Name | REDWOOD MORTGAGE INVESTORS VIII | |
Entity Central Index Key | 889,123 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | No | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 147,329,043 | |
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash, in banks | $ 1,723 | $ 45,323 |
Loans, Secured by deeds of trust | ||
Principal | 129,955 | 94,851 |
Advances | 484 | 63 |
Accrued interest | 1,209 | 641 |
Loan balance, secured | 131,648 | 95,555 |
Unsecured | 24 | 46 |
Allowance for loan losses | 0 | 0 |
Loans, net | 131,672 | 95,601 |
Real estate owned (REO) | 7,014 | 19,782 |
Other assets, net | 124 | 444 |
Total assets | 140,533 | 161,150 |
Liabilities | ||
Accounts payable and other liabilities | 158 | 387 |
Payable to affiliate | 4 | |
Total liabilities | 162 | 387 |
Partners’ capital | ||
Limited partners’ capital, subject to liquidation, net | 146,791 | 167,879 |
General partners’ capital (deficit) | (786) | (832) |
Total partners’ capital, net | 146,005 | 167,047 |
Receivable from manager (formation loan) | (5,634) | (6,284) |
Partners’ capital subject to liquidation, net of formation loan | 140,371 | 160,763 |
Total liabilities and partners’ capital | $ 140,533 | $ 161,150 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans | ||
Interest income | $ 9,403 | $ 7,126 |
Late fees | 41 | 48 |
Revenue, loans | 9,444 | 7,174 |
Provision for (recovery of) loan losses | (19) | (50) |
Loans, net | 9,463 | 7,224 |
REO | ||
Rental operations, net | (576) | 1,702 |
Interest on mortgages | (1,581) | |
Rental operations, net of mortgage interest | (576) | 121 |
Realized gains/(losses) on sales | 1,411 | 2,592 |
Impairment (loss)/gain | (200) | |
Holding costs, net of other income | (44) | 536 |
REO, net | 591 | 3,249 |
Total revenues, net | 10,054 | 10,473 |
Operations Expense | ||
Mortgage servicing fees | 1,724 | 1,191 |
Asset management fees | 603 | 678 |
Costs from Redwood Mortgage Corp. | 2,033 | 1,963 |
Professional services | 1,052 | 1,344 |
Other | 19 | (10) |
Total operations expense | 5,431 | 5,166 |
Net income | 4,623 | 5,307 |
Limited partners (99%) | 4,577 | 5,254 |
General partners (1%) | $ 46 | $ 53 |
Consolidated Statements of Inc4
Consolidated Statements of Income (Parenthetical) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Limited partners | 99.00% | 99.00% |
General partners | 1.00% | 1.00% |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Capital Subject to Liquidation Net [Member]Limited Partner [Member] | Partners Capital (Deficit) [Member]General Partner [Member] | Capital Units [Member] |
Beginning balance at Dec. 31, 2015 | $ 187,495 | $ (885) | $ 186,610 | |
Net income | $ 5,307 | 5,254 | 53 | 5,307 |
Distributions | (2,637) | (2,637) | ||
Liquidations | (22,233) | (22,233) | ||
Ending balance at Dec. 31, 2016 | 160,763 | 167,879 | (832) | 167,047 |
Net income | 4,623 | 4,577 | 46 | 4,623 |
Distributions | (2,865) | (2,865) | ||
Liquidations | (22,800) | (22,800) | ||
Ending balance at Dec. 31, 2017 | $ 140,371 | $ 146,791 | $ (786) | $ 146,005 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash from Operations | ||
Interest received | $ 8,834 | $ 6,825 |
Other loan income | 41 | 48 |
Operations expense | (5,360) | (4,785) |
Rental operations, net | (777) | 1,855 |
Holding costs | (44) | 536 |
Mortgage interest and borrowing related fees | (1,248) | |
Other assets | 3,411 | |
Total cash provided (used) by operations | 2,694 | 6,642 |
Cash from Investing Activities | ||
Principal collected on loans - secured | 17,514 | 41,425 |
Unsecured loan payments received | 22 | 23 |
Loans originated | (51,618) | (81,100) |
Loans sold to affiliates | 7,219 | |
Loans acquired from affiliates | (1,000) | |
Advances on loans | (420) | (51) |
Total - Loans | (35,502) | (32,484) |
Sales | 14,476 | 68,485 |
Development and acquisition | (253) | (1,339) |
Total - REO | 14,223 | 67,146 |
Total cash provided (used) by investing activities | (21,279) | 34,662 |
Debt activities | ||
Principal payments | (28,434) | |
Cash provided (used) by debt activities | (28,434) | |
Distributions to partners | ||
Cash – partner liquidations | (22,800) | (22,233) |
Formation loan payment, net of early withdrawal fees | 650 | 650 |
Cash – partner distributions | (2,865) | (2,637) |
Cash Distributions to partners, net | (25,015) | (24,220) |
Total cash provided (used) by financing activities | (25,015) | (52,654) |
Net increase/(decrease) in cash | (43,600) | (11,350) |
Cash and cash equivalents, beginning of period | 45,323 | 56,673 |
Cash and cash equivalents, end of period | 1,723 | 45,323 |
Net income | 4,623 | 5,307 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||
Amortization of borrowings-related origination fees | 399 | |
REO – loss/(gain) on disposal | (1,211) | (2,592) |
Change in operation assets and liabilities | ||
Accrued interest | (568) | (301) |
Other assets | 56 | 3,836 |
Accounts payable and other liabilities | (210) | 6 |
Payable to affiliate | 4 | (13) |
Total cash provided (used) by operations | $ 2,694 | 6,642 |
Supplemental disclosures of cash flow information Non-cash investing activities | ||
Real estate acquired through foreclosure/settlement on loans, net of liabilities assumed | 416 | |
Cash paid for interest | $ 1,647 |
Organization and General
Organization and General | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and General | NOTE 1 – ORGANIZATION AND GENERAL Redwood Mortgage Investors VIII, a California Limited Partnership (RMI VIII or the partnership), was formed in 1993 to engage in business as a mortgage lender and investor by making and holding-for-investment mortgage loans secured by California real estate, primarily by first and second deeds of trust. The ongoing sources of funds for loans are the proceeds (net of withdrawals from partner capital accounts subject to limitations) from • loan payoffs; • borrowers’ monthly principal and interest payments; • earnings retained (i.e. not distributed) in partners’ capital accounts; • REO sales; and • to a lesser degree and, if obtained, a line of credit. The partnership is externally managed by Redwood Mortgage Corp., a general partner (or RMC or the manager). The manager is solely responsible for managing the business and affairs of the partnership, subject to the voting rights of the partners on specified matters. The manager acting alone has the power and authority to act for and bind the partnership. RMC provides the personnel and services necessary to conduct our business as we have no employees of our own. The mortgage loans the partnership funds and/or invests in are arranged and generally are serviced by RMC. The general partner is required to contribute to capital one tenth of one percent (0.1%) of the aggregate capital accounts of the members. Limited partners representing a majority of the outstanding units may, without the consent of the general partners, vote to: • dissolve the partnership; • amend the partnership agreement subject to certain limitations; • approve or disapprove the sale of all or substantially all of the assets of the partnership; and • remove or replace one or all of the general partners. A majority in interest of partnership units is required to elect a new general partner to continue the partnership business after a general partner ceases to be a general partner due to its withdrawal. Profits and losses are allocated among the limited partners according to their respective capital accounts after one percent (1%) of profits and losses are allocated to the general partners. The monthly results are subject to subsequent adjustment as a result of quarterly and year-end accounting and reporting. Investors should not expect the partnership to provide tax benefits of the type commonly associated with limited liability partnership tax shelter investments. Federal and state income taxes are the obligation of the partners, other than the annual California franchise tax and any California LLC cash receipts taxes paid by the partnership’s subsidiaries. Distribution policy At the time of their subscription for units, partners elect to have distributed to them their monthly, quarterly or annual allocation of profits, or to have profits allocated to their capital accounts be retained by the partnership to compound. Subject to certain limitations, those electing compounding may subsequently change their election. A partner’s election to receive cash distributions is irrevocable. Liquidity, capital withdrawals and early withdrawals Because there are substantial restrictions on transferability of units, there is no established public trading and/or secondary market for the units, and none is expected to develop. To provide liquidity to limited partners, the partnership agreement provides that limited partners, after the minimum five-year period, may withdraw all or a portion of their capital accounts in 20 quarterly installments or longer, as determined by the general partners in light of partnership cash flow, beginning the last day of the calendar quarter following the quarter in which the notice of withdrawal is given. A limited partner may liquidate all or a part of the limited partner’s capital account in four quarterly installments beginning on the last day of the calendar quarter following the quarter in which the notice of withdrawal is given, subject to a 10% early withdrawal penalty applicable to any sums withdrawn prior to the time when such sums could have been withdrawn without penalty. There is also a limited right of liquidation for an investor’s heirs upon an investor’s death. The partnership has not established a cash reserve from which to fund withdrawals and, accordingly, the partnership’s capacity to return a limited partner’s capital is subject to the availability of partnership cash. No more than 20% of the total limited partners’ capital account balances at the beginning of any year may be liquidated during any calendar year. Investment objectives and lending guidelines The Partnership’s primary investment objectives are to • yield a high rate of return from mortgage lending, after the payment of certain fees and expenses to the general partners and their affiliates; and • preserve and protect the partnership’s capital. The partnership generally funds loans • having monthly payments of interest only or of principal and interest at fixed rates, calculated on a 30-year amortization basis; and • having maturities of 5 years or less. The partnership’s loans generally have shorter maturity than typical mortgages. In the event that a loan is performing, and collection is deemed probable at maturity, we may elect to extend the loans maturity. In the event a borrower is unable to repay in full the principal owing on the loan maturity, we may elect to modify the loan payment terms and place the designated loan as impaired, or may foreclose and take back the property for sale. Generally, interest rates on the partnership’s mortgage loans are not affected by market movements in interest rates. If, as expected, we continue to make and invest in fixed rate loans primarily, and interest rates were to rise, a possible result would be lower prepayments of the partnership’s loans. This increase in the duration of the time loans are on the books may reduce overall liquidity, which itself may reduce the partnership’s investment into new loans at higher interest rates. Conversely, if interest rates were to decline, we could see a significant increase in borrower prepayments. If we then invest in new loans at lower rates of interest, a lower yield to partners may possibly result. The cash flow and the income generated by the real property securing the loan factor into the credit decisions, as does the general creditworthiness, experience and reputation of the borrower. However, for loans secured by real property, other than owner-occupied personal residences, such considerations are subordinate to a determination that the value of the real property is sufficient, in and of itself, as a source of repayment. The amount of the loan combined with the outstanding debt and claims secured by a senior deed of trust on the real property generally will not exceed a specified percentage of the appraised value of the property (the loan-to-value ratio, or LTV) as determined by an independent written appraisal at the time the loan is made. The LTV generally will not exceed 80% for residential properties (including multi-family), 75% for commercial properties, and 50% for land. The excess of the value of the collateral securing the loan over our debt and any senior debt owing on the property is the “protective equity.” We believe our LTV policy gives us more potential protective equity than competing lenders who fund loans with a higher LTV. However, we may be viewed as an “asset” lender based on our emphasis on LTV in our underwriting process. Being an “asset” lender may increase the likelihood of payment defaults by borrowers. Accordingly, the partnership may have a higher level of payment delinquency and loans designated as impaired for financial reporting purposes than that of lenders, such as banks and other financial institutions subject to federal and state banking regulations, which are typically viewed as “credit” lenders. Term of the partnership The partnership will continue until 2032, unless sooner terminated as provided in the partnership agreement. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The partnership’s consolidated financial statements include the accounts of the partnership, its wholly-owned subsidiaries (consisting of single member limited liability companies owning a single real property asset). All significant intercompany transactions and balances have been eliminated in consolidation. Management estimates The preparation of financial statements in conformity with GAAP 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, when applicable, 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. Fair value estimates GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are • independent; • knowledgeable; • able to transact; and • willing to transact. Fair values of assets and liabilities are determined based on the fair value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used. • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the partnership has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly in active markets and quoted prices for identical assets or liabilities that are not active, and inputs other than quoted prices that are observable or inputs derived from or corroborated by market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the partnership’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the partnership’s own data. The fair value of the collateral 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: • market comparables or sales approach; • cost to replace; and • 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). Management has the requisite familiarity with the markets it lends in generally and of the properties lent on 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. 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. At December 31, 2017, certain 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 (one to two years) to insure timely interest payments at the inception of the loan. As monthly interest payments become due, the partnership funds the payments into the affiliated trust account. In the event of an early loan payoff, any unapplied interest reserves would be first applied to any accrued but unpaid interest and then as a reduction of principal. 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. Impaired loans continue to recognize interest income as long as the loan is in the process of collection and is considered to be well-secured. Impaired loans are placed on non-accrual status if 180 days delinquent or 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 (i.e. the loan balance) are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the fair value of the collateral, net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. This computation is done for each loan (whether impaired or performing), 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. For loans designated impaired, a provision is made for loan losses to adjust the allowance for loan losses to an amount such that the net carrying amount (unpaid principal less the specific allowance) is reduced to the lower of the loan balance or the estimated fair value of the related collateral, net of any senior loans and net of any costs to sell in arriving at net realizable value. 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 company charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. At foreclosure, any excess of the recorded investment in the loan (accounting basis) over the net realizable value is charged against the allowance for loan losses. Real estate owned (REO) Real estate owned (REO) is property acquired in full or partial settlement of loan obligations generally through foreclosure, and is recorded at acquisition at the lower of the amount owed on the loan (legal basis), plus any senior indebtedness, or at the property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves. 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 is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expense. Any recovery in the fair value subsequent to such a write down is recorded, not to exceed the value recorded at acquisition. 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. Rental income/ depreciation Rental income is recognized when earned in accordance with the lease agreement. For commercial leases, the costs associated with originating the lease are amortized over the lease term. Residential lease terms generally range from month-to-month to one-year, and the expenses of originating the lease are expensed as incurred. Real estate owned that is designated held for sale is not depreciated. Real estate that was designated held for investment, and rented was depreciated on a straight-line basis over the estimated useful life of the property. Recently issued accounting pronouncements - Accounting and Financial Reporting for Revenue Recognition On May 28, 2014, FASB issued a final standard on revenue from contracts with customers. The standard issued as ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The standard is effective January 2018, and will be adopted using the modified retrospective approach. The goals of the revenue recognition project are to clarify and converge the revenue recognition principles under U.S. GAAP and to develop guidance that would streamline and enhance revenue recognition requirements. A core principle of the standard is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Revenue is recognized when a performance obligation is satisfied by transferring goods or services to a customer. The FASB intentionally used the wording “be entitled” rather than “receive” or “collect” to distinguish collectability risk from other uncertainties that may exist under a contract. RMC management’s evaluation is that the revenue standard will not have an impact on the partnership’s current revenue recognition policies. The scope of guidance is not applicable to financial instruments including loans and therefore will not have an impact on interest income or late fees. The partnership also does not expect that there will be changes to revenue recognition from the sale of REOs, however, there may be an impact to the gain on sale of real estate when the sale is financed by the partnership. - Accounting and Financial Reporting for Expected Credit Losses The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) that significantly changes how entities will account for credit losses for most financial assets that are not measured at fair value through net income. The new standard will supersede currently in effect guidance and applies to all entities. Entities will be required to use a current expected credit loss (CECL) model to estimate credit impairment. This estimate will be forward-looking, meaning management will be required to use forecasts about future economic conditions to determine the expected credit loss over the remaining life of an instrument. This will be a significant change from the current incurred credit loss model and generally may result in allowances being recognized in earlier periods than under the current credit loss model. RMI VIII invests in real estate secured loans made with the expectation of zero credit losses as a result of substantial protective equity provided by the underlying collateral. For a loss to be recognized under the CECL or incurred loss model, if the lending/loan-to-value guidelines are followed effectively, an intervening, subsequent-to-loan-funding, event must negatively impact the value of the underlying collateral of the loan in an amount greater than the amount of protective equity provided by the collateral. Such an event would be either (or both) of: • an uninsured event(s) specifically impacting the collateral or • a non-temporary decline in values in the applicable real estate market. In both of these instances the treatment would be the same in the incurred loss and CECL models of approximately the same amount. Other than in these events, the probable of occurrence criteria of the incurred loss model is not triggered and a loss is not recognized. Further, if the zero-expected-loss lending guideline is preserved and the protective equity provided by the collateral is not expected to be impaired over the life of the loans, then a loss is not required to be recognized under the CECL model. This convergence between the CECL and incurred loss models as to loss recognition – as an event driven occurrence – in low LTV, real estate secured programs caused RMC to conclude that the CECL model will not materially impact the reported results of operations or financial position as compared to that which would be reported in the incurred loss model. The manager expects to adopt the ASU for interim and annual reporting in 2020. |
General Partners and Other Rela
General Partners and Other Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
General Partners and Other Related Parties | NOTE 3 –GENERAL PARTNERS AND OTHER RELATED PARTIES The general partners, RMC and Michael R. Burwell (Burwell), are entitled to one percent (1%) of the profits and losses, which amounted to approximately $46,000 and $53,000 for 2017 and 2016, respectively. Beginning in 2010, and continuing until January 1, 2020, RMC assigned its right to two-thirds of one percent (0.66%) of profits and losses to Burwell in exchange for Burwell assuming one hundred percent (100%) of the general partners’ equity deficit. • Mortgage servicing fees RMC earns mortgage servicing fees of up to 1.5% annually of the unpaid principal balance of the loan portfolio. The mortgage servicing fees are accrued monthly on all loans. Remittance to RMC is made monthly unless the loan has been assigned a specific loss reserve, at which point remittance is deferred until the specific loss reserve is no longer required, or the property has been acquired by the partnership. Mortgage servicing fees paid to RMC were approximately $1,724,000 and $1,191,000 for 2017 and 2016, respectively. No mortgage servicing fees were waived during any period reported. • Asset The general partners receive monthly fees for managing the partnership’s loan portfolio and operations of up to 1/32 of 1% of the “net asset value” (3/8 of 1% annually). No asset management fees were waived in any period presented. Asset management fees paid to the general partners were approximately $603,000 and $678,000, for 2017 and 2016 respectively. • 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. Other costs are allocated pro-rata based on the percentage of total capital of all mortgage funds managed by RMC. Payroll and consulting fees are broken out first based on activity, and then allocated to the company on a pro-rata basis based on percentage of capital to the total capital of all mortgage funds. The decision to request reimbursement of any qualifying charges is made by RMC at its sole discretion. For 2017 and 2016, operating expenses totaling approximately $2,033,000 and $1,963,000, respectively, were reimbursed to RMC. Commissions and fees are paid by the borrowers to RMC • Brokerage commissions, loan originations For fees in connection with the review, selection, evaluation, negotiation and extension of loans, the general partners may collect loan brokerage commissions (points) limited to an amount not to exceed 4% of the total partnership assets per year. 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 loan by RMC. • Other fees RMC receives 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. In the ordinary course of business, performing loans may be assigned, in-part or in-full, between the affiliated mortgage funds at par. Formation loan/Commissions paid to broker-dealers Commissions for sales of limited partnership units paid to broker-dealers (B/D sales commissions) were paid by RMC and were not paid directly by the partnership out of offering proceeds. Instead, the partnership advanced to RMC amounts sufficient to pay the B/D sales commissions and premiums paid to partners in connection with unsolicited orders up to 7% of offering proceeds. The receivable arising from the advances is unsecured, and non-interest bearing and is referred to as the “formation loan.” The primary source of the repayments made by RMC on the formation loan is expected to be loan brokerage commissions. As of December 31, 2017, the partnership had made such advances of $22,567,000, of which $5,634,000 remain outstanding on the formation loan. If the general partners are removed and RMC is no longer receiving payments for services rendered, the formation loan is forgiven, per the terms of the partnership agreement. The formation loan activity is summarized in the following table ($ in thousands). 2017 Balance, January 1 $ 6,284 Early withdrawal penalties (343 ) Repayments (307 ) Balance, December 31 $ 5,634 The future minimum payments on the formation loan as of December 31, 2017 are presented in the following table ($ in thousands). 2018 $ 650 2019 650 2020 650 2021 650 2022 650 Thereafter 2,384 Total $ 5,634 The formation loan is forgiven if the general partners are removed and RMC is no longer receiving payments for services rendered, per the partnership agreement. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans | NOTE 4 – LOANS Loans generally are funded at a fixed interest rate with a loan term of up to five years. As of December 31, 2017, 60 of the partnership’s 72 loans (representing 97% of the aggregate principal of the partnership’s loan portfolio) have a term of five years or less from loan inception. The remaining loans have terms longer than five years. Substantially all loans are written without a prepayment penalty clause. As of December 31, 2017, 31 of the loans outstanding (representing 66% 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. Loans unpaid principal balance (principal) Secured loan transactions are summarized in the following table ($ in thousands). 2017 2016 Principal, beginning of period $ 94,851 $ 62,740 Loans funded 51,618 81,100 Loans acquired from affiliates 1,000 — Principal payments received (17,514 ) (41,425 ) Loans sold to affiliates — (7,219 ) Foreclosures — (345 ) Principal, end of period $ 129,955 $ 94,851 During 2017 and 2016, the partnership renewed eleven and four loans, respectively, at then current market terms, with an aggregate principal of approximately $19,204,000 and $5,055,000, which were not included in the activity shown on the table above. Loan characteristics Secured loans had the characteristics presented in the following table ($ in thousands). December 31, December 31, 2017 2016 Number of secured loans 72 75 Secured loans – principal $ 129,955 $ 94,851 Secured loans – lowest interest rate (fixed) 5.0 % 5.0 % Secured loans – highest interest rate (fixed) 10.5 % 10.5 % Average secured loan – principal $ 1,805 $ 1,265 Average principal as percent of total principal 1.4 % 1.3 % Average principal as percent of partners’ capital, net of formation loan 1.3 % 0.8 % Average principal as percent of total assets 1.3 % 0.8 % Largest secured loan – principal $ 14,000 $ 14,000 Largest principal as percent of total principal 10.8 % 14.8 % Largest principal as percent of partners’ capital, net of formation loan 10.0 % 8.7 % Largest principal as percent of total assets 10.0 % 8.7 % Smallest secured loan – principal $ 44 $ 48 Smallest principal as percent of total principal 0.1 % 0.1 % Smallest principal as percent of partners’ capital, net of formation loan 0.1 % 0.1 % Smallest principal as percent of total assets 0.1 % 0.1 % Number of counties where security is located (all California) 20 24 Largest percentage of principal in one county 20.8 % 23.1 % Number of secured loans with a filed notice of default 2 1 Secured loans in foreclosure – principal $ 7,607 $ 405 Number of secured loans with an interest reserve — — Interest reserves $ — $ — As of December 31, 2017, the partnership’s largest loan, in the unpaid principal balance of $14,000,000 (representing 10.8% of outstanding secured loans and 10.0% of partnership total assets) has an interest rate of 7.25% and is secured by a commercial property located in Contra Costa County. As of December 31, 2017, the partnership had no construction loans outstanding and had no rehabilitation loans outstanding. In compliance with California laws and regulations, all borrower receipts are deposited into a bank trust account maintained by RMC, and subsequently disbursed to the partnership after an appropriate holding period. At December 31, 2017 the trust account held a balance relating to the partnership’s loan portfolio of $191,808, consisting of both interest and principal payments from borrowers, all of which was disbursed to the partnership on or before January 12, 2018. Lien position At funding secured loans had the following lien positions and are presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 Loans Principal Percent Loans Principal Percent First trust deeds 48 $ 104,244 80 % 48 $ 73,712 78 % Second trust deeds 23 22,711 17 26 18,139 19 Third trust deeds 1 3,000 3 1 3,000 3 Total secured loans 72 $ 129,955 100 % 75 $ 94,851 100 % Liens due other lenders at loan closing 52,444 35,054 Total debt $ 182,399 $ 129,905 Appraised property value at loan closing $ 346,738 $ 245,329 Percent of total debt to appraised values (LTV) at loan closing (1) 55.6 % 54.0 % (1) Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing, nor does it include decreases or increases of the amount owing on senior liens to other lenders. Property type Secured loans summarized by property type are presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 Loans Principal Percent Loans Principal Percent Single family (2) 41 $ 48,117 37 % 48 $ 31,773 34 % Multi-family 4 4,589 4 3 1,723 2 Commercial 26 76,799 58 22 59,380 61 Land 1 450 1 2 1,975 3 Total secured loans 72 $ 129,955 100 % 75 $ 94,851 100 % (2) Single family property type as of December 31, 2017 consists of 18 loans with principal of approximately $12,681,000 that are owner occupied and 23 loans with principal of approximately $35,436,000 that are non-owner occupied. At December 31, 2016, single family property consisted of 21 loans with principal of approximately $11,177,000 that were owner occupied and 27 loans with principal approximately of $20,596,000 that were non-owner occupied. Single family properties include owner-occupied and non-owner occupied single family homes (1-4 unit residential buildings), condominium units, townhouses, and condominium complexes. As of December 31, 2017, and 2016, three and four, respectively, of the partnership’s loans with a principal balance of approximately $2,782,000, and $3,131000, respectively, were secured by condominium properties. Distribution by California Counties The distribution of secured loans outstanding by the California county in which the primary collateral is located is presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 Unpaid Principal Balance Percent Unpaid Principal Balance Percent San Francisco Bay Area (3) San Francisco $ 26,206 20.2 % $ 7,204 7.6 % Contra Costa 16,856 13.1 16,863 17.7 San Mateo 15,506 11.9 11,267 11.9 Alameda 11,730 9.0 6,626 7.0 Santa Clara 6,873 5.3 9,938 10.5 Solano 2,875 2.2 1,875 2.0 Marin 1,597 1.2 849 0.9 Napa 569 0.4 956 1.0 82,212 63.3 55,578 58.6 Other Northern California Sacramento 3,300 2.4 2,118 2.2 El Dorado 2,044 1.6 2,044 2.2 Santa Cruz 769 0.6 852 0.9 Amador 754 0.6 770 0.8 Monterey 656 0.5 4,007 4.2 Lake 296 0.2 298 0.3 Mariposa 44 0.1 48 0.1 Calaveras — — 151 0.2 San Benito — — 94 0.1 7,863 6.0 10,382 11.0 Total Northern California 90,075 69.3 65,960 69.6 Los Angeles & Coastal Los Angeles 26,971 20.8 21,876 23.0 Orange 6,653 5.1 3,765 4.0 San Diego 164 0.1 2,464 2.6 Ventura — — 271 0.3 33,788 26.0 28,376 29.9 Other Southern California San Bernardino 5,900 4.5 124 0.1 Riverside 192 0.2 289 0.3 Kern — — 102 0.1 6,092 4.7 515 0.5 Total Southern California 39,880 30.7 28,891 30.4 Total Secured Loans Balance $ 129,955 100.0 % $ 94,851 100.0 % (3) Includes Silicon Valley Scheduled maturities Secured loans are scheduled to mature as presented in the following table ($ in thousands). Scheduled maturities, as of December 31, 2017 Loans Principal Percent 2018 25 $ 54,227 42 % 2019 27 65,023 49 2020 10 7,035 5 2021 7 1,968 2 2022 2 933 1 Thereafter 1 769 1 Matured as of December 31, 2017 — — — Total secured loan balance 72 $ 129,955 100 % 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. Matured loans At December 31, 2017, and 2016, there were no loans past maturity. Delinquency Secured loans summarized by payment delinquency for are presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 Loans Amount Loans Amount Past Due 30-89 days 2 $ 3,700 1 $ 164 90-179 days — — 1 405 180 or more days 2 7,607 — — Total past due 4 $ 11,307 2 569 Current 68 118,648 73 94,282 Total secured loan balance 72 $ 129,955 75 $ 94,851 Interest income of approximately $167,000 and $16,000 was accrued on loans contractually past due 90 days or more as to principal and/or interest payments during 2017 and 2016, respectively. Loans in non-accrual status Secured loans in nonaccrual status are summarized in the following table ($ in thousands). December 31, December 31, 2017 2016 Number of loans 3 1 Principal $ 7,834 $ 230 Advances 429 2 Accrued interest 322 2 Total recorded investment $ 8,585 $ 234 Foregone interest $ 64 $ — At December 31, 2017, no loans were contractually 90 or more days past due as to principal or interest and not in non-accrual status. At December 31, 2016, there was one loan with a loan balance of approximately $405,000 that was contractually 90 or more days past due as to principal or interest and not in non-accrual status. Loans designated impaired Impaired loans and the associated allowance for loan losses is presented in the following table ($ in thousands). December 31, December 31, 2017 2016 Principal $ 7,834 $ 634 Recorded investment (4) 8,585 656 Impaired loans without allowance 8,585 656 Impaired loans with allowance — — Allowance for loan losses, impaired loans — — Number of Loans 3 2 (4) 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 as of and for the years ended December 31, 2017 and 2016 ($ in thousands). December 31, December 31, 2017 2016 Average recorded investment $ 4,410 $ 720 Interest income recognized 607 27 Interest income received in cash 344 27 Allowance for loan losses At December 31, 2017, and December 31, 2016, the partnership had no allowance for loan losses as all loans had protective equity such that at December 31, 2017, and December 31, 2016, collection was deemed probable for amounts owing. Modifications, workout agreements and troubled debt restructurings At December 31, 2017, the partnership had no modifications, workout agreements, or troubled debt restructurings in effect. At December 31, 2016, the partnership had one workout agreement which qualified as troubled debt restructuring. This loan was paid in full in January 2017. |
Real Estate Owned (REO)
Real Estate Owned (REO) | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
Real Estate Owned (REO) | NOTE 5 – REAL ESTATE OWNED (REO) REO transactions and activity are presented in the following table ($ in thousands). 2017 2016 Balance, beginning of period $ 19,782 $ 82,949 Acquisitions — 2,265 Dispositions (13,066 ) (65,893 ) Improvements/betterments 253 461 Change in net book value 45 — Depreciation — — Balance, end of period $ 7,014 $ 19,782 The following transactions closed during 2017. • Sold 36 of 42 units remaining at the beginning of the period, in a condominium complex in Los Angeles County with a gain of approximately $595,000 • Sold 5 of 8 units remaining at the beginning of the period, in a condominium complex in San Francisco County with a gain of approximately $643,000. • Sold 3 commercial units and a parking lot in Ventura County for a gain of approximately $71,000 after taking into account a portion of a previously recorded valuation reserve. The following transactions closed during 2016. • Sold 28 of 70 units remaining at the beginning of the period, in a condominium complex in Los Angeles County with a gain of approximately $206,000. • Sold 4 of 4 units remaining at the beginning of the period, in a condominium complex in Alameda County with a gain of approximately $857,000. • Sold 5 of the 13 units remaining at the beginning of the period, in a condominium complex in San Francisco County with a gain of approximately $704,000. • Sold 29 of 29 units remaining at the beginning of the period, in a condominium complex in Contra Costa County with a loss of approximately $36,000. The units were sold with a seller-carryback of approximately 77% of the sale price, at then market rates (first deed of trust, 5% note rate, interest only monthly, eighteen months maturing March 1, 2018). • Sold a commercial property in Amador County, financed by a seller carryback. No gain was recognized at the time of sale. The property was sold with a seller-carryback of approximately 70% of the sale price at then market rates (first deed of trust, 5% note rate, interest only monthly, five years maturing December 1, 2021, guaranteed by principal). • Sold 126 of 126 units remaining at the beginning of the period, in a condominium complex in Los Angeles County with a gain of approximately $862,000. • Acquired a commercial/retail property and a parking lot located in Ventura County. • Acquired remaining 36% interest in commercial land from affiliated funds. The property, located in Stanislaus County, was purchased at its estimated net realizable value of approximately $878,000. REO summarized by property classification is presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 NBV NBV Property classification Rental $ 3,606 $ 16,174 Non-Rental 3,408 3,608 Total REO, net $ 7,014 $ 19,782 Rental properties consist of the following at December 31, 2017. • In Los Angeles County, 6 residential units in a condominium complex • In San Francisco County, 3 residential units in a condominium complex • In Contra Costa County, a commercial office property By September 30, 2017, all rental units had been made vacant in preparation for sale. Non-Rental properties consist of the following three properties at December 31, 2017. • In Fresno County, a partially completed home subdivision • In Marin County, approximately 13 acres zoned for residential development • In Stanislaus County, approximately 14 acres zoned commercial . The earnings from rental operations is presented in the following table for 2017 and 2016 ($ in thousands). 2017 2016 Rental income $ 315 $ 4,831 Operating expenses, rentals Administration and payroll 91 675 Homeowner association fees 115 384 Professional services 25 113 Utilities and maintenance 472 1,001 Advertising and promotions 1 35 Property taxes 110 748 Other 74 155 Total operating expenses, rentals 888 3,111 Net operating income (573 ) 1,720 Depreciation — — Receiver fees 3 18 Rental operations, net (576 ) 1,702 Interest on mortgages — 1,581 Rental operation, net of mortgage interest $ (576 ) $ 121 Rental operations were substantially wound down as of December 31, 2017 Mortgages payable The partnership had no mortgages payable at December 31, 2017, and December 31, 2016. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 6 – FAIR VALUE The partnership does not record loans, REO, nor mortgages payable at fair value on a recurring basis. The recorded amount of the performing loans (i.e., the loan balance) is deemed to approximate the fair value, as is the loan balance of loans designated impaired for which a specific reserve has not been recorded (i.e., the loan is well collateralized, such that the collection of the amount owed is assured, including foregone interest, if any). Certain assets and liabilities are measured at fair value on a non-recurring basis, and these are listed below. • Loans designated impaired with a specific reserve. • REO acquired through foreclosure during the year. • REO for which a valuation reserve has been recorded. Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2017 are presented in the following table ($ in thousands). Fair Value Measurement at Report Date Using Quoted Prices Significant In Active Other Significant Markets For Observable Unobservable Total Identical Assets Inputs Inputs As Of Item (Level 1) (Level 2) (Level 3) December 31, 2017 Impaired loans with specific allowance, net for which an adjustment was recorded in the year $ — $ — $ — $ — REO acquired through foreclosure during the year $ — $ — $ — $ — REO for which a valuation reserve has been recorded in the year $ — $ 1,778 $ — $ 1,778 Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2016 are presented in the following table ($ in thousands). Fair Value Measurement at Report Date Using Quoted Prices Significant In Active Other Significant Markets For Observable Unobservable Total Identical Assets Inputs Inputs As Of Item (Level 1) (Level 2) (Level 3) 12/31/2016 Impaired loans with specific allowance, net for which an adjustment was recorded in the year $ — $ — $ — $ — REO acquired through foreclosure during the year (1) $ — $ 416 $ — $ 416 REO for which a valuation reserve has been recorded in the year $ — $ 4,445 $ — $ 4,445 (1) The dollar amount presented is net of the fair value of the property at acquisition of the REO and the principal and interest owing on the first mortgage assumed of approximately $926,000. The mortgage was paid off in June 2016. The following methods and assumptions are used when estimating fair value. • Secured loans, performing (i.e. not designated as impaired) (Level 2) - Each loan is reviewed quarterly for its delinquency, LTV adjusted for the most recent valuation of the underlying collateral, remaining term to maturity, borrower’s payment history and other factors. Also considered is the limited resale market for the loans. Most companies or individuals making similar loans as the company intend to hold the loans until maturity as the average contractual term of the loans (and the historical experience of the time the loan is outstanding due to pre-payments) is shorter than conventional mortgages. As there are no prepayment penalties to be collected, loan buyers may be hesitant to risk paying above par. Due to these factors, sales of the loans are infrequent, because an active market does not exist. The recorded amount of the performing loans (i.e. the loan balance) is deemed to approximate the fair value, although the intrinsic value of the loans would reflect a premium due to the interest to be received. • Secured loans, designated impaired (Level 2) - Secured loans designated impaired are deemed collateral dependent, and the fair value of the loan is the lesser of the fair value of the collateral or the enforceable amount owing under the note. The fair value of the collateral 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 (Level 2 inputs). The following methods and assumptions are used to determine the fair value of the collateral securing a loan. Single family – Management’s preferred method for determining the fair market value of its single-family residential assets is the sale comparison method. Management primarily obtains sale comps via its subscription to the RealQuest service, but also uses free online services such as Zillow.com and other available resources to supplement this data. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, number of bedrooms and bathrooms, square footage, sale date, condition and year built. If applicable sale comps are not available or deemed unreliable, management will seek additional information in the form of brokers’ opinions of value or appraisals. Multi-family residential – Management’s preferred method for determining the aggregate retail value of its multifamily units is the sale comparison method. Sale comps are reviewed for similarity to the subject property, examining features such as proximity to subject, rental income, number of units, composition of units by the number of bedrooms and bathrooms, square footage, condition, amenities and year built. Management’s secondary method for valuing its multifamily assets as income-producing rental operations is the direct capitalization method. In order to determine market cap rates for properties of the same class and location as the subject, management refers to published data from reliable third-party sources such as the CBRE Cap Rate Survey. Management applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing project. When adequate sale comps are not available or reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value and/or management will seek additional information in the form of brokers’ opinion of value or appraisals. Commercial buildings – Where commercial rental income information is available, management’s preferred method for determining the fair value of its commercial real estate assets is the direct capitalization method. In order to determine market cap rates for properties of the same class and location as the subject, management refers to reputable third-party sources such as the CBRE Cap Rate Survey. Management then applies the appropriate cap rate to the subject’s most recent available annual net operating income to determine the property’s value as an income-producing commercial rental project. When adequate sale comps are not available or reliable net operating income information is not available or the project is under development or is under-performing to market, management will seek additional information and analysis to determine the cost to improve and the intrinsic fair value and/or management will seek additional information in the form of brokers’ opinion of value or appraisals. Management supplements the direct capitalization method with additional information in the form of a sale comparison analysis (where adequate sale comps are available), brokers’ opinion of value, or appraisal. Commercial land – Commercial land has many variations/uses, thus requiring management to employ a variety of methods depending upon the unique characteristics of the subject land. Management may rely on information in the form of a sale comparison analysis (where adequate sale comps are available), brokers’ opinion of value, or appraisal. • Unsecured loans (Level 3). Unsecured loans are valued at their principal less any discount or loss reserves established by management after taking into account the borrower’s creditworthiness and ability to repay the loan. • Mortgages payable (Level 2). When the partnership had mortgages payable in 2016, the interest rates were deemed to be at market rates for the type and location of the securing property, the length of the mortgage, and the other terms and conditions are deemed to be customary. |
Commitments and Contingencies,
Commitments and Contingencies, Other Than Loan Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies, Other Than Loan Commitments | NOTE 7 – COMMITMENTS AND CONTINGENCIES, OTHER THAN LOAN COMMITMENTS Commitments The partnership’s only commitment is to fund scheduled capital account withdrawal requests at December 31, 2017 as presented in the following table ($ in thousands). 2018 $ 24,247 2019 14,994 2020 8,156 2021 4,779 2022 1,890 Thereafter 68 Total $ 54,134 Legal proceedings In the normal course of its business, the partnership may become involved in legal proceedings (such as assignment of rents, bankruptcy proceedings, appointment of receivers, unlawful detainers, judicial foreclosure, etc.) to collect the debt owed under the promissory notes, to enforce the provisions of the deeds of trust, to protect its interest in the real property subject to the deeds of trust and to resolve disputes with borrowers, lenders, lien holders and mechanics. None of these actions, in and of themselves, typically would be of any material financial impact to the net income or balance sheet of the partnership. 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. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8 – SUBSEQUENT EVENTS None. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of presentation The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The partnership’s consolidated financial statements include the accounts of the partnership, its wholly-owned subsidiaries (consisting of single member limited liability companies owning a single real property asset). All significant intercompany transactions and balances have been eliminated in consolidation. |
Management Estimates | Management estimates The preparation of financial statements in conformity with GAAP 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, when applicable, 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. |
Fair Value Estimates | Fair value estimates GAAP defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are • independent; • knowledgeable; • able to transact; and • willing to transact. Fair values of assets and liabilities are determined based on the fair value hierarchy established in GAAP. The hierarchy is comprised of three levels of inputs to be used. • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the partnership has the ability to access at the measurement date. An active market is a market in which transactions occur with sufficient frequency and volume to provide pricing information on an ongoing basis. • Level 2 inputs are inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly in active markets and quoted prices for identical assets or liabilities that are not active, and inputs other than quoted prices that are observable or inputs derived from or corroborated by market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs reflect the partnership’s own assumptions about the assumptions market participants would use in pricing the asset or liability (including assumptions about risk). Unobservable inputs are developed based on the best information available in the circumstances and may include the partnership’s own data. The fair value of the collateral 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: • market comparables or sales approach; • cost to replace; and • 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). Management has the requisite familiarity with the markets it lends in generally and of the properties lent on 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. |
Cash and Cash Equivalents | 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. At December 31, 2017, certain partnership cash balances in banks exceed federally insured limits. |
Loans and Interest Income | 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 (one to two years) to insure timely interest payments at the inception of the loan. As monthly interest payments become due, the partnership funds the payments into the affiliated trust account. In the event of an early loan payoff, any unapplied interest reserves would be first applied to any accrued but unpaid interest and then as a reduction of principal. 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. Impaired loans continue to recognize interest income as long as the loan is in the process of collection and is considered to be well-secured. Impaired loans are placed on non-accrual status if 180 days delinquent or 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 | Allowance for loan losses Loans and the related accrued interest and advances (i.e. the loan balance) are analyzed on a periodic basis for ultimate recoverability. Delinquencies are identified and followed as part of the loan system. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the arithmetic difference between the fair value of the collateral, net of any senior liens, and the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. This computation is done for each loan (whether impaired or performing), 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. For loans designated impaired, a provision is made for loan losses to adjust the allowance for loan losses to an amount such that the net carrying amount (unpaid principal less the specific allowance) is reduced to the lower of the loan balance or the estimated fair value of the related collateral, net of any senior loans and net of any costs to sell in arriving at net realizable value. 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 company charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. At foreclosure, any excess of the recorded investment in the loan (accounting basis) over the net realizable value is charged against the allowance for loan losses. |
Real Estate Owned (REO) | Real estate owned (REO) Real estate owned (REO) is property acquired in full or partial settlement of loan obligations generally through foreclosure, and is recorded at acquisition at the lower of the amount owed on the loan (legal basis), plus any senior indebtedness, or at the property’s net realizable value, which is the fair value less estimated costs to sell, as applicable. The fair value estimates are derived from information available in the real estate markets including similar property, and often require the experience and judgment of third parties such as commercial real estate appraisers and brokers. The estimates figure materially in calculating the value of the property at acquisition, the level of charge to the allowance for loan losses and any subsequent valuation reserves. 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 is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expense. Any recovery in the fair value subsequent to such a write down is recorded, not to exceed the value recorded at acquisition. 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. |
Rental Income/Depreciation | Rental income/ depreciation Rental income is recognized when earned in accordance with the lease agreement. For commercial leases, the costs associated with originating the lease are amortized over the lease term. Residential lease terms generally range from month-to-month to one-year, and the expenses of originating the lease are expensed as incurred. Real estate owned that is designated held for sale is not depreciated. Real estate that was designated held for investment, and rented was depreciated on a straight-line basis over the estimated useful life of the property. |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements - Accounting and Financial Reporting for Revenue Recognition On May 28, 2014, FASB issued a final standard on revenue from contracts with customers. The standard issued as ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The standard is effective January 2018, and will be adopted using the modified retrospective approach. The goals of the revenue recognition project are to clarify and converge the revenue recognition principles under U.S. GAAP and to develop guidance that would streamline and enhance revenue recognition requirements. A core principle of the standard is to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which an entity expects to be entitled in exchange for those goods or services. Revenue is recognized when a performance obligation is satisfied by transferring goods or services to a customer. The FASB intentionally used the wording “be entitled” rather than “receive” or “collect” to distinguish collectability risk from other uncertainties that may exist under a contract. RMC management’s evaluation is that the revenue standard will not have an impact on the partnership’s current revenue recognition policies. The scope of guidance is not applicable to financial instruments including loans and therefore will not have an impact on interest income or late fees. The partnership also does not expect that there will be changes to revenue recognition from the sale of REOs, however, there may be an impact to the gain on sale of real estate when the sale is financed by the partnership. - Accounting and Financial Reporting for Expected Credit Losses The Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) that significantly changes how entities will account for credit losses for most financial assets that are not measured at fair value through net income. The new standard will supersede currently in effect guidance and applies to all entities. Entities will be required to use a current expected credit loss (CECL) model to estimate credit impairment. This estimate will be forward-looking, meaning management will be required to use forecasts about future economic conditions to determine the expected credit loss over the remaining life of an instrument. This will be a significant change from the current incurred credit loss model and generally may result in allowances being recognized in earlier periods than under the current credit loss model. RMI VIII invests in real estate secured loans made with the expectation of zero credit losses as a result of substantial protective equity provided by the underlying collateral. For a loss to be recognized under the CECL or incurred loss model, if the lending/loan-to-value guidelines are followed effectively, an intervening, subsequent-to-loan-funding, event must negatively impact the value of the underlying collateral of the loan in an amount greater than the amount of protective equity provided by the collateral. Such an event would be either (or both) of: • an uninsured event(s) specifically impacting the collateral or • a non-temporary decline in values in the applicable real estate market. In both of these instances the treatment would be the same in the incurred loss and CECL models of approximately the same amount. Other than in these events, the probable of occurrence criteria of the incurred loss model is not triggered and a loss is not recognized. Further, if the zero-expected-loss lending guideline is preserved and the protective equity provided by the collateral is not expected to be impaired over the life of the loans, then a loss is not required to be recognized under the CECL model. This convergence between the CECL and incurred loss models as to loss recognition – as an event driven occurrence – in low LTV, real estate secured programs caused RMC to conclude that the CECL model will not materially impact the reported results of operations or financial position as compared to that which would be reported in the incurred loss model. The manager expects to adopt the ASU for interim and annual reporting in 2020. |
General Partners and Other Re16
General Partners and Other Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Formation Loan Activity | The formation loan activity is summarized in the following table ($ in thousands). 2017 Balance, January 1 $ 6,284 Early withdrawal penalties (343 ) Repayments (307 ) Balance, December 31 $ 5,634 |
Formation Loan, Future Minimum Payments | The future minimum payments on the formation loan as of December 31, 2017 are presented in the following table ($ in thousands). 2018 $ 650 2019 650 2020 650 2021 650 2022 650 Thereafter 2,384 Total $ 5,634 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Secured Loan Principal Transactions | Secured loan transactions are summarized in the following table ($ in thousands). 2017 2016 Principal, beginning of period $ 94,851 $ 62,740 Loans funded 51,618 81,100 Loans acquired from affiliates 1,000 — Principal payments received (17,514 ) (41,425 ) Loans sold to affiliates — (7,219 ) Foreclosures — (345 ) Principal, end of period $ 129,955 $ 94,851 |
Secured Loans Characteristics | Secured loans had the characteristics presented in the following table ($ in thousands). December 31, December 31, 2017 2016 Number of secured loans 72 75 Secured loans – principal $ 129,955 $ 94,851 Secured loans – lowest interest rate (fixed) 5.0 % 5.0 % Secured loans – highest interest rate (fixed) 10.5 % 10.5 % Average secured loan – principal $ 1,805 $ 1,265 Average principal as percent of total principal 1.4 % 1.3 % Average principal as percent of partners’ capital, net of formation loan 1.3 % 0.8 % Average principal as percent of total assets 1.3 % 0.8 % Largest secured loan – principal $ 14,000 $ 14,000 Largest principal as percent of total principal 10.8 % 14.8 % Largest principal as percent of partners’ capital, net of formation loan 10.0 % 8.7 % Largest principal as percent of total assets 10.0 % 8.7 % Smallest secured loan – principal $ 44 $ 48 Smallest principal as percent of total principal 0.1 % 0.1 % Smallest principal as percent of partners’ capital, net of formation loan 0.1 % 0.1 % Smallest principal as percent of total assets 0.1 % 0.1 % Number of counties where security is located (all California) 20 24 Largest percentage of principal in one county 20.8 % 23.1 % Number of secured loans with a filed notice of default 2 1 Secured loans in foreclosure – principal $ 7,607 $ 405 Number of secured loans with an interest reserve — — Interest reserves $ — $ — |
Secured Loans by Lien Position in the Collateral | At funding secured loans had the following lien positions and are presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 Loans Principal Percent Loans Principal Percent First trust deeds 48 $ 104,244 80 % 48 $ 73,712 78 % Second trust deeds 23 22,711 17 26 18,139 19 Third trust deeds 1 3,000 3 1 3,000 3 Total secured loans 72 $ 129,955 100 % 75 $ 94,851 100 % Liens due other lenders at loan closing 52,444 35,054 Total debt $ 182,399 $ 129,905 Appraised property value at loan closing $ 346,738 $ 245,329 Percent of total debt to appraised values (LTV) at loan closing (1) 55.6 % 54.0 % (1) Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing, nor does it include decreases or increases of the amount owing on senior liens to other lenders. |
Secured Loans by Property Type of the Collateral | Secured loans summarized by property type are presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 Loans Principal Percent Loans Principal Percent Single family (2) 41 $ 48,117 37 % 48 $ 31,773 34 % Multi-family 4 4,589 4 3 1,723 2 Commercial 26 76,799 58 22 59,380 61 Land 1 450 1 2 1,975 3 Total secured loans 72 $ 129,955 100 % 75 $ 94,851 100 % (1) Single family property type as of December 31, 2017 consists of 18 loans with principal of approximately $12,681,000 that are owner occupied and 23 loans with principal of approximately $35,436,000 that are non-owner occupied. At December 31, 2016, single family property consisted of 21 loans with principal of approximately $11,177,000 that were owner occupied and 27 loans with principal approximately of $20,596,000 that were non-owner occupied. |
Secured Loans Distributed within California | The distribution of secured loans outstanding by the California county in which the primary collateral is located is presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 Unpaid Principal Balance Percent Unpaid Principal Balance Percent San Francisco Bay Area (3) San Francisco $ 26,206 20.2 % $ 7,204 7.6 % Contra Costa 16,856 13.1 16,863 17.7 San Mateo 15,506 11.9 11,267 11.9 Alameda 11,730 9.0 6,626 7.0 Santa Clara 6,873 5.3 9,938 10.5 Solano 2,875 2.2 1,875 2.0 Marin 1,597 1.2 849 0.9 Napa 569 0.4 956 1.0 82,212 63.3 55,578 58.6 Other Northern California Sacramento 3,300 2.4 2,118 2.2 El Dorado 2,044 1.6 2,044 2.2 Santa Cruz 769 0.6 852 0.9 Amador 754 0.6 770 0.8 Monterey 656 0.5 4,007 4.2 Lake 296 0.2 298 0.3 Mariposa 44 0.1 48 0.1 Calaveras — — 151 0.2 San Benito — — 94 0.1 7,863 6.0 10,382 11.0 Total Northern California 90,075 69.3 65,960 69.6 Los Angeles & Coastal Los Angeles 26,971 20.8 21,876 23.0 Orange 6,653 5.1 3,765 4.0 San Diego 164 0.1 2,464 2.6 Ventura — — 271 0.3 33,788 26.0 28,376 29.9 Other Southern California San Bernardino 5,900 4.5 124 0.1 Riverside 192 0.2 289 0.3 Kern — — 102 0.1 6,092 4.7 515 0.5 Total Southern California 39,880 30.7 28,891 30.4 Total Secured Loans Balance $ 129,955 100.0 % $ 94,851 100.0 % (1) Includes Silicon Valley |
Secured Loans Scheduled Maturities | Secured loans are scheduled to mature as presented in the following table ($ in thousands). Scheduled maturities, as of December 31, 2017 Loans Principal Percent 2018 25 $ 54,227 42 % 2019 27 65,023 49 2020 10 7,035 5 2021 7 1,968 2 2022 2 933 1 Thereafter 1 769 1 Matured as of December 31, 2017 — — — Total secured loan balance 72 $ 129,955 100 % |
Secured Loans in Non-Accrual Status | Secured loans in nonaccrual status are summarized in the following table ($ in thousands). December 31, December 31, 2017 2016 Number of loans 3 1 Principal $ 7,834 $ 230 Advances 429 2 Accrued interest 322 2 Total recorded investment $ 8,585 $ 234 Foregone interest $ 64 $ — |
By Days Past Due [Member] | |
Past Due Financing Receivables | Secured loans summarized by payment delinquency for are presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 Loans Amount Loans Amount Past Due 30-89 days 2 $ 3,700 1 $ 164 90-179 days — — 1 405 180 or more days 2 7,607 — — Total past due 4 $ 11,307 2 569 Current 68 118,648 73 94,282 Total secured loan balance 72 $ 129,955 75 $ 94,851 |
Impaired Loans [Member] | |
Impaired Financing Receivables | Impaired loans and the associated allowance for loan losses is presented in the following table ($ in thousands). December 31, December 31, 2017 2016 Principal $ 7,834 $ 634 Recorded investment (4) 8,585 656 Impaired loans without allowance 8,585 656 Impaired loans with allowance — — Allowance for loan losses, impaired loans — — Number of Loans 3 2 (4) Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. |
Average Balances And Interest Income [Member] | |
Impaired Financing Receivables | Impaired loans had the average balances and interest income recognized and received in cash as presented in the following table as of and for the years ended December 31, 2017 and 2016 ($ in thousands). December 31, December 31, 2017 2016 Average recorded investment $ 4,410 $ 720 Interest income recognized 607 27 Interest income received in cash 344 27 |
Real Estate Owned (REO) (Tables
Real Estate Owned (REO) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Real Estate [Abstract] | |
REO Held for Sale | REO transactions and activity are presented in the following table ($ in thousands). 2017 2016 Balance, beginning of period $ 19,782 $ 82,949 Acquisitions — 2,265 Dispositions (13,066 ) (65,893 ) Improvements/betterments 253 461 Change in net book value 45 — Depreciation — — Balance, end of period $ 7,014 $ 19,782 |
REO Held for Sale by Property Type | REO summarized by property classification is presented in the following table ($ in thousands). December 31, 2017 December 31, 2016 NBV NBV Property classification Rental $ 3,606 $ 16,174 Non-Rental 3,408 3,608 Total REO, net $ 7,014 $ 19,782 |
Earnings/(Loss) from Rental Operations of the Real Estate Owned, Held as Investment | The earnings from rental operations is presented in the following table for 2017 and 2016 ($ in thousands). 2017 2016 Rental income $ 315 $ 4,831 Operating expenses, rentals Administration and payroll 91 675 Homeowner association fees 115 384 Professional services 25 113 Utilities and maintenance 472 1,001 Advertising and promotions 1 35 Property taxes 110 748 Other 74 155 Total operating expenses, rentals 888 3,111 Net operating income (573 ) 1,720 Depreciation — — Receiver fees 3 18 Rental operations, net (576 ) 1,702 Interest on mortgages — 1,581 Rental operation, net of mortgage interest $ (576 ) $ 121 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements, Nonrecurring | Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2017 are presented in the following table ($ in thousands). Fair Value Measurement at Report Date Using Quoted Prices Significant In Active Other Significant Markets For Observable Unobservable Total Identical Assets Inputs Inputs As Of Item (Level 1) (Level 2) (Level 3) December 31, 2017 Impaired loans with specific allowance, net for which an adjustment was recorded in the year $ — $ — $ — $ — REO acquired through foreclosure during the year $ — $ — $ — $ — REO for which a valuation reserve has been recorded in the year $ — $ 1,778 $ — $ 1,778 Assets and liabilities measured at fair value on a non-recurring basis as of December 31, 2016 are presented in the following table ($ in thousands). Fair Value Measurement at Report Date Using Quoted Prices Significant In Active Other Significant Markets For Observable Unobservable Total Identical Assets Inputs Inputs As Of Item (Level 1) (Level 2) (Level 3) 12/31/2016 Impaired loans with specific allowance, net for which an adjustment was recorded in the year $ — $ — $ — $ — REO acquired through foreclosure during the year (1) $ — $ 416 $ — $ 416 REO for which a valuation reserve has been recorded in the year $ — $ 4,445 $ — $ 4,445 (1) The dollar amount presented is net of the fair value of the property at acquisition of the REO and the principal and interest owing on the first mortgage assumed of approximately $926,000. The mortgage was paid off in June 2016. |
Commitments and Contingencies20
Commitments and Contingencies, Other Than Loan Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Scheduled Capital Account Withdrawal Requests | The partnership’s only commitment is to fund scheduled capital account withdrawal requests at December 31, 2017 as presented in the following table ($ in thousands). 2018 $ 24,247 2019 14,994 2020 8,156 2021 4,779 2022 1,890 Thereafter 68 Total $ 54,134 |
Organization and General - Addi
Organization and General - Additional Information (Details) - Installment | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Organizational and General Details [Line Items] | ||
Ownership interest held by the general partner | 1.00% | 1.00% |
Minimum Amount of Time Before Leaving Partnership Without Penalty | 5 years | |
Early Withdrawal Penalty Percentage | 10.00% | |
Maximum Percentage of Total Limited Partners Capital Available for Liquidation During One Year | 20.00% | |
Loans Receivable, Amortization Term | 30 years | |
Commercial [Member] | ||
Organizational and General Details [Line Items] | ||
Loan-to-value ratio percentage | 75.00% | |
Land Loan [Member] | ||
Organizational and General Details [Line Items] | ||
Loan-to-value ratio percentage | 50.00% | |
Minimum [Member] | ||
Organizational and General Details [Line Items] | ||
Formation Loan Repayment Period | 5 years | |
Maximum [Member] | Multi-family [Member] | ||
Organizational and General Details [Line Items] | ||
Loan-to-value ratio percentage | 80.00% | |
Limited Partner [Member] | ||
Organizational and General Details [Line Items] | ||
Number of Quarterly Installments for Withdrawal From Partnership | 4 | |
Limited Partner [Member] | After Five Year Period [Member] | ||
Organizational and General Details [Line Items] | ||
Number of Quarterly Installments for Withdrawal From Partnership | 20 | |
RMC [Member] | ||
Organizational and General Details [Line Items] | ||
Ownership interest held by the general partner | 0.10% |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2017Approach | |
Summary of Significant Accounting Policies Details [Line Items] | |
Estimating real property value, number of approaches | 3 |
Cash and cash equivalents, maximum initial maturity | 3 months |
Interest reserve minimum length | 1 year |
Interest reserve maximum length | 2 years |
Threshold period past due for impaired loans placed on non-accrual status | 180 days |
Maximum [Member] | |
Summary of Significant Accounting Policies Details [Line Items] | |
Residential lease term | 1 year |
General Partners and Other Re23
General Partners and Other Related Parties - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
General Partners And Other Related Parties Details [Line Items] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 4,623,000 | $ 5,307,000 |
Chargeable by RMC | 1,724,000 | 1,191,000 |
Asset management fees | $ 603,000 | 678,000 |
Management fee, description | The general partners receive monthly fees for managing the partnership’s loan portfolio and operations of up to 1/32 of 1% of the “net asset value” (3/8 of 1% annually). | |
Asset management fees waived | $ 0 | 0 |
Operating Expenses | $ 2,033,000 | 1,963,000 |
Loan Brokerage Commissions, Maximum Percent of Assets | 4.00% | |
Formation Loan [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Formation loan, advances | $ 22,567,000 | |
Receivable from affiliate (formation loan) | 5,634,000 | |
RMC [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Mortgage Servicing Fees Waived | 0 | 0 |
Operating Expenses | $ 2,033,000 | 1,963,000 |
Maximum [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Annual mortgage servicing fees, percentage | 1.50% | |
Percentage of offering proceeds | 7.00% | |
RMC and Burwell [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Profit (Loss) Percentage | 1.00% | |
Burwell [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Profit (Loss) Percentage | 0.66% | |
Equity Deficit Assumed by a General Partner | 100.00% | |
One Percent of Profits and Losses [Member] | General Partner [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ 46,000 | $ 53,000 |
General Partners and Other Re24
General Partners and Other Related Parties - Formation Loan Activity (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Formation Loan - Transactions [Abstract] | |
Balance, January 1 | $ 6,284 |
Early withdrawal penalties | (343) |
Repayments | (307) |
Balance, December 31 | $ 5,634 |
General Partners and Other Re25
General Partners and Other Related Parties - Formation Loan, Future Minimum Payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Formation Loan Future Minimum Payments [Abstract] | |
2,018 | $ 650 |
2,019 | 650 |
2,020 | 650 |
2,021 | 650 |
2,022 | 650 |
Thereafter | 2,384 |
Total | $ 5,634 |
Loans - Additional Information
Loans - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)LoanInterestMortgageLoan | Dec. 31, 2016USD ($)LoanMortgageLoan | Dec. 31, 2015USD ($) | |
Loans Details [Line Items] | |||
Loans Receivable, Term | 5 years | ||
Loans Receivable Number of Loans | Loan | 72 | 75 | |
Loans Receivable, Number of Interest Only Loans | Interest | 31 | ||
Loans Receivable, Amortization Term | 30 years | ||
Mortgage Loans on Real Estate, Number of Loans Renewed | MortgageLoan | 11 | 4 | |
Loans - principal renewed (in Dollars) | $ 19,204,000 | $ 5,055,000 | |
Loans Receivable Largest Loan (in Dollars) | $ 14,000,000 | $ 14,000,000 | |
Loans Receivable, Percent | 100.00% | 100.00% | |
Balance relating to loan portfolio held in bank trust account | $ 191,808 | ||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 72 | 75 | |
Principal | $ 129,955,000 | $ 94,851,000 | $ 62,740,000 |
Revenue, loans | 9,463,000 | 7,224,000 | |
Allowance for loan losses | $ 0 | $ 0 | |
Past Due 90 Days Or More [Member] | |||
Loans Details [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 0 | 1 | |
Loans Receivable, Interest Accrual, Period | 90 days | 90 days | |
Revenue, loans | $ 167,000 | $ 16,000 | |
Mortgage Loan balance | $ 405,000 | ||
Past Maturity [Member] | |||
Loans Details [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans matured | MortgageLoan | 0 | 0 | |
Modifications of Secured Loan [Member] | |||
Loans Details [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 0 | ||
Workout Agreements [Member] | |||
Loans Details [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 0 | ||
Troubled Debt Restructuring [Member] | |||
Loans Details [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 0 | 1 | |
Repayment date of loan | 2017-01 | ||
Condominium Properties [Member] | |||
Loans Details [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 3 | 4 | |
Principal | $ 2,782,000 | $ 3,131,000 | |
Minimum [Member] | |||
Loans Details [Line Items] | |||
Loans Receivable, Remaining Term | 5 years | ||
Maximum [Member] | |||
Loans Details [Line Items] | |||
Balance relating to loan portfolio held in bank trust account, disbursement date to partnership | Jan. 12, 2018 | ||
Five Year Term or Less [Member] | |||
Loans Details [Line Items] | |||
Loans Receivable Number of Loans | Loan | 60 | ||
Loans Receivable, Percent of Aggregate Principal | 97.00% | ||
Interest Only [Member] | |||
Loans Details [Line Items] | |||
Loans Receivable, Percent of Aggregate Principal | 66.00% | ||
Largest Loan [Member] | |||
Loans Details [Line Items] | |||
Loans Receivable, Percent | 10.80% | ||
Loans Receivable, Percent of Assets | 10.00% | ||
Loans Receivable, Yield of Loan Acquired | 7.25% | ||
Construction Loans [Member] | |||
Loans Details [Line Items] | |||
Loans outstanding | $ 0 | ||
Rehabilitation Loans [Member] | |||
Loans Details [Line Items] | |||
Loans outstanding | $ 0 |
Loans - Secured Loan Principal
Loans - Secured Loan Principal Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Receivables [Abstract] | ||
Principal, beginning of period | $ 94,851 | $ 62,740 |
Loans funded | 51,618 | 81,100 |
Loans acquired from affiliates | 1,000 | |
Principal payments received | (17,514) | (41,425) |
Loans sold to affiliates | (7,219) | |
Foreclosures | (345) | |
Principal, end of period | $ 129,955 | $ 94,851 |
Loans - Secured Loans Character
Loans - Secured Loans Characteristics (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)LoanMortgageLoanCounty | Dec. 31, 2016USD ($)LoanMortgageLoanCounty | Dec. 31, 2015USD ($) | |
Secured Loan Transactions [Line Items] | |||
Number of secured loans | Loan | 72 | 75 | |
Secured loans - principal (in Dollars) | $ 129,955,000 | $ 94,851,000 | $ 62,740,000 |
Average secured loan - principal (in Dollars) | $ 1,805,000 | $ 1,265,000 | |
Average principal as percent of total principal | 1.40% | 1.30% | |
Average principal as percent of partners’ capital, net of formation loan | 1.30% | 0.80% | |
Average principal as percent of total assets | 1.30% | 0.80% | |
Largest secured loan - principal (in Dollars) | $ 14,000,000 | $ 14,000,000 | |
Largest principal as percent of total principal | 10.80% | 14.80% | |
Largest principal as percent of partners’ capital, net of formation loan | 10.00% | 8.70% | |
Largest principal as percent of total assets | 10.00% | 8.70% | |
Smallest secured loan - principal (in Dollars) | $ 44,000 | $ 48,000 | |
Smallest principal as percent of total principal | 0.10% | 0.10% | |
Smallest principal as percent of partners’ capital, net of formation loan | 0.10% | 0.10% | |
Smallest principal as percent of total assets | 0.10% | 0.10% | |
Number of counties where security is located (all California) | County | 20 | 24 | |
Largest percentage of principal in one county | 20.80% | 23.10% | |
Number of secured loans with a filed notice of default | MortgageLoan | 72 | 75 | |
Secured loans in foreclosure - principal (in Dollars) | $ 7,607,000 | $ 405,000 | |
Minimum [Member] | |||
Secured Loan Transactions [Line Items] | |||
Secured loans - interest rate (fixed) | 5.00% | 5.00% | |
Maximum [Member] | |||
Secured Loan Transactions [Line Items] | |||
Secured loans - interest rate (fixed) | 10.50% | 10.50% | |
Filed Notice of Default [Member] | |||
Secured Loan Transactions [Line Items] | |||
Number of secured loans with a filed notice of default | MortgageLoan | 2 | 1 |
Loans - Secured Loans by Lien P
Loans - Secured Loans by Lien Position in the Collateral (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)MortgageLoan | Dec. 31, 2016USD ($)MortgageLoan | Dec. 31, 2015USD ($) | ||
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Loans - principal (in Dollars) | $ 129,955 | $ 94,851 | $ 62,740 | |
Liens due other lenders at loan closing (in Dollars) | 52,444 | 35,054 | ||
Total debt (in Dollars) | 182,399 | 129,905 | ||
Appraised property value at loan closing (in Dollars) | $ 346,738 | $ 245,329 | ||
Percent of total debt to appraised values (LTV) at loan closing | [1] | 55.60% | 54.00% | |
Loans - percent | 100.00% | 100.00% | ||
Loans | MortgageLoan | 72 | 75 | ||
First Trust Deeds [Member] | ||||
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Loans - principal (in Dollars) | $ 104,244 | $ 73,712 | ||
Loans - percent | 80.00% | 78.00% | ||
Loans | MortgageLoan | 48 | 48 | ||
Second Trust Deeds [Member] | ||||
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Loans - principal (in Dollars) | $ 22,711 | $ 18,139 | ||
Loans - percent | 17.00% | 19.00% | ||
Loans | MortgageLoan | 23 | 26 | ||
Third Trust Deeds [Member] | ||||
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Loans - principal (in Dollars) | $ 3,000 | $ 3,000 | ||
Loans - percent | 3.00% | 3.00% | ||
Loans | MortgageLoan | 1 | 1 | ||
[1] | Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing, nor does it include decreases or increases of the amount owing on senior liens to other lenders. |
Loans - Secured Loans by Proper
Loans - Secured Loans by Property Type (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017USD ($)MortgageLoan | Dec. 31, 2016USD ($)MortgageLoan | Dec. 31, 2015USD ($) | ||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of loans | MortgageLoan | 72 | 75 | ||
Loans - principal (in Dollars) | $ | $ 129,955 | $ 94,851 | $ 62,740 | |
Loans - percent | 100.00% | 100.00% | ||
Single Family [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of loans | MortgageLoan | [1] | 41 | 48 | |
Loans - principal (in Dollars) | $ | [1] | $ 48,117 | $ 31,773 | |
Loans - percent | [1] | 37.00% | 34.00% | |
Multi-family [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of loans | MortgageLoan | 4 | 3 | ||
Loans - principal (in Dollars) | $ | $ 4,589 | $ 1,723 | ||
Loans - percent | 4.00% | 2.00% | ||
Commercial [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of loans | MortgageLoan | 26 | 22 | ||
Loans - principal (in Dollars) | $ | $ 76,799 | $ 59,380 | ||
Loans - percent | 58.00% | 61.00% | ||
Land [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of loans | MortgageLoan | 1 | 2 | ||
Loans - principal (in Dollars) | $ | $ 450 | $ 1,975 | ||
Loans - percent | 1.00% | 3.00% | ||
[1] | Single family property type as of December 31, 2017 consists of 18 loans with principal of approximately $12,681,000 that are owner occupied and 23 loans with principal of approximately $35,436,000 that are non-owner occupied. At December 31, 2016, single family property consisted of 21 loans with principal of approximately $11,177,000 that were owner occupied and 27 loans with principal approximately of $20,596,000 that were non-owner occupied. |
Loans - Secured Loans by Prop31
Loans - Secured Loans by Property Type (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)MortgageLoan | Dec. 31, 2016USD ($)MortgageLoan | Dec. 31, 2015USD ($) | |
Loans Details [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 72 | 75 | |
Loans - principal (in Dollars) | $ | $ 129,955,000 | $ 94,851,000 | $ 62,740,000 |
Single Family Property-Owner Occupied [Member] | |||
Loans Details [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 18 | 21 | |
Loans - principal (in Dollars) | $ | $ 12,681,000 | $ 11,177,000 | |
Single Family Property-NonOwner Occupied [Member] | |||
Loans Details [Line Items] | |||
Mortgage Loans on Real Estate, Number of Loans | MortgageLoan | 23 | 27 | |
Loans - principal (in Dollars) | $ | $ 35,436,000 | $ 20,596,000 |
Loans - Secured Loans Distribut
Loans - Secured Loans Distributed within California (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 129,955 | $ 94,851 | $ 62,740 | |
Loans - percent | 100.00% | 100.00% | ||
San Francisco [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 26,206 | $ 7,204 | ||
Loans - percent | 20.20% | 7.60% | ||
Contra Costa [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 16,856 | $ 16,863 | ||
Loans - percent | 13.10% | 17.70% | ||
San Mateo [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 15,506 | $ 11,267 | ||
Loans - percent | 11.90% | 11.90% | ||
Alameda [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 11,730 | $ 6,626 | ||
Loans - percent | 9.00% | 7.00% | ||
Santa Clara [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 6,873 | $ 9,938 | ||
Loans - percent | 5.30% | 10.50% | ||
Solano [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 2,875 | $ 1,875 | ||
Loans - percent | 2.20% | 2.00% | ||
Marin [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 1,597 | $ 849 | ||
Loans - percent | 1.20% | 0.90% | ||
Napa [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 569 | $ 956 | ||
Loans - percent | 0.40% | 1.00% | ||
San Francisco Bay Area [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | [1] | $ 82,212 | $ 55,578 | |
Loans - percent | [1] | 63.30% | 58.60% | |
Sacramento [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 3,300 | $ 2,118 | ||
Loans - percent | 2.40% | 2.20% | ||
El Dorado [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 2,044 | $ 2,044 | ||
Loans - percent | 1.60% | 2.20% | ||
Santa Cruz [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 769 | $ 852 | ||
Loans - percent | 0.60% | 0.90% | ||
Amador [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 754 | $ 770 | ||
Loans - percent | 0.60% | 0.80% | ||
Monterey [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 656 | $ 4,007 | ||
Loans - percent | 0.50% | 4.20% | ||
Lake [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 296 | $ 298 | ||
Loans - percent | 0.20% | 0.30% | ||
Mariposa [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 44 | $ 48 | ||
Loans - percent | 0.10% | 0.10% | ||
Calaveras [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 151 | |||
Loans - percent | 0.20% | |||
San Benito [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 94 | |||
Loans - percent | 0.10% | |||
Other Northern California [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 7,863 | $ 10,382 | ||
Loans - percent | 6.00% | 11.00% | ||
Northern California [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 90,075 | $ 65,960 | ||
Loans - percent | 69.30% | 69.60% | ||
Los Angeles [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 26,971 | $ 21,876 | ||
Loans - percent | 20.80% | 23.00% | ||
Orange [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 6,653 | $ 3,765 | ||
Loans - percent | 5.10% | 4.00% | ||
San Diego [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 164 | $ 2,464 | ||
Loans - percent | 0.10% | 2.60% | ||
Ventura [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 271 | |||
Loans - percent | 0.30% | |||
Los Angeles And Coastal [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 33,788 | $ 28,376 | ||
Loans - percent | 26.00% | 29.90% | ||
San Bernardino [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 5,900 | $ 124 | ||
Loans - percent | 4.50% | 0.10% | ||
Riverside [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 192 | $ 289 | ||
Loans - percent | 0.20% | 0.30% | ||
Kern [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 102 | |||
Loans - percent | 0.10% | |||
Other Southern California [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 6,092 | $ 515 | ||
Loans - percent | 4.70% | 0.50% | ||
Southern California [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Loans - principal (in Dollars) | $ 39,880 | $ 28,891 | ||
Loans - percent | 30.70% | 30.40% | ||
[1] | Includes Silicon Valley |
Loans - Secured Loans Scheduled
Loans - Secured Loans Scheduled Maturities (Details) $ in Thousands | Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | Dec. 31, 2015USD ($) |
Receivables [Abstract] | |||
2018, Loan | Loan | 25 | ||
2019, Loan | Loan | 27 | ||
2020, Loan | Loan | 10 | ||
2021, Loan | Loan | 7 | ||
2022, Loan | Loan | 2 | ||
Thereafter, Loan | Loan | 1 | ||
Total secured loan balance, Loan | Loan | 72 | 75 | |
2018, Principal | $ | $ 54,227 | ||
2019, Principal | $ | 65,023 | ||
2020, Principal | $ | 7,035 | ||
2021, Principal | $ | 1,968 | ||
2022, Principal | $ | 933 | ||
Thereafter, Principal | $ | 769 | ||
Total secured loan balance, Principal | $ | $ 129,955 | $ 94,851 | $ 62,740 |
2018, Percent | 42.00% | ||
2019, Percent | 49.00% | ||
2020, Percent | 5.00% | ||
2021, Percent | 2.00% | ||
2022, Percent | 1.00% | ||
Thereafter, Percent | 1.00% | ||
Total secured loan balance, Percent | 100.00% |
Loans - Secured Loans Summarize
Loans - Secured Loans Summarized by Payment Delinquency (Details) $ in Thousands | Dec. 31, 2017USD ($)MortgageLoan | Dec. 31, 2016USD ($)MortgageLoan | Dec. 31, 2015USD ($) |
Past Due | |||
Delinquent loans, number | MortgageLoan | 72 | 75 | |
Loans, amount | $ | $ 129,955 | $ 94,851 | $ 62,740 |
Past Due 30-89 Days [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 2 | 1 | |
Loans, amount | $ | $ 3,700 | $ 164 | |
Past Due 90-179 Days [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 1 | ||
Loans, amount | $ | $ 405 | ||
Past Due 180 Days or More [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 2 | ||
Loans, amount | $ | $ 7,607 | ||
Past Due [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 4 | 2 | |
Loans, amount | $ | $ 11,307 | $ 569 | |
Current [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 68 | 73 | |
Loans, amount | $ | $ 118,648 | $ 94,282 |
Loans - Secured Loans in Non-Ac
Loans - Secured Loans in Non-Accrual Status (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)MortgageLoan | Dec. 31, 2016USD ($)MortgageLoan | Dec. 31, 2015USD ($) | |
Loans Details Secured Loans In Non-accrual Status [Line Items] | |||
Number of loans | MortgageLoan | 72 | 75 | |
Loans - principal (in Dollars) | $ 129,955 | $ 94,851 | $ 62,740 |
Accrued interest | $ 1,209 | $ 641 | |
Non-accrual Status [Member] | |||
Loans Details Secured Loans In Non-accrual Status [Line Items] | |||
Number of loans | MortgageLoan | 3 | 1 | |
Loans - principal (in Dollars) | $ 8,585 | $ 234 | |
Accrued interest | 322 | 2 | |
Foregone interest | 64 | ||
Principal [Member] | Non-accrual Status [Member] | |||
Loans Details Secured Loans In Non-accrual Status [Line Items] | |||
Loans - principal (in Dollars) | 7,834 | 230 | |
Advances [Member] | Non-accrual Status [Member] | |||
Loans Details Secured Loans In Non-accrual Status [Line Items] | |||
Loans - principal (in Dollars) | $ 429 | $ 2 |
Loans - Secured Loans Designate
Loans - Secured Loans Designated as Impaired Loans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Loan | Dec. 31, 2016USD ($)Loan | ||
Secured Loans Designated as Impaired Loans [Abstract] | |||
Principal | $ 7,834 | $ 634 | |
Recorded investment | [1] | 8,585 | 656 |
Impaired loans without allowance | $ 8,585 | $ 656 | |
Number of Loans | Loan | 3 | 2 | |
[1] | Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. |
Loans - Impaired Loans - Averag
Loans - Impaired Loans - Average Balances and Interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Impaired Loans - Average Balances and Interest Income [Abstract] | ||
Average recorded investment | $ 4,410 | $ 720 |
Interest income recognized | 607 | 27 |
Interest income received in cash | $ 344 | $ 27 |
Real Estate Owned (REO) - REO,
Real Estate Owned (REO) - REO, Held for Sale (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reo Held For Sale [Abstract] | ||
Balance, beginning of period | $ 19,782 | $ 82,949 |
Acquisitions | 2,265 | |
Dispositions | (13,066) | (65,893) |
Improvements/betterments | 253 | 461 |
Change in net book value | 45 | |
Balance, end of period | $ 7,014 | $ 19,782 |
Real Estate Owned (REO) - Addit
Real Estate Owned (REO) - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2017USD ($)aProperty | Dec. 31, 2016USD ($)Property | |
Real Estate Owned REO Details [Line Items] | ||
Property purchased at estimated net realizable value | $ | $ 2,265,000 | |
Mortgages payable | $ | $ 0 | $ 0 |
Non Rental Held For Sale [Member] | Residential Single Family [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Real Estate Properties | 3 | |
Los Angeles [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 42 | 70 |
Gains (Losses) on Sales of Other Real Estate (in Dollars) | $ | $ 595,000 | $ 206,000 |
Los Angeles [Member] | Condominium Complex [Member] | Property 2 [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 126 | |
Gains (Losses) on Sales of Other Real Estate (in Dollars) | $ | $ 862,000 | |
Los Angeles [Member] | Sold [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 36 | 28 |
Los Angeles [Member] | Sold [Member] | Condominium Complex [Member] | Property 2 [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 126 | |
Los Angeles [Member] | Rental Property Held For Sale [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 6 | |
San Francisco County [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 8 | 13 |
Gains (Losses) on Sales of Other Real Estate (in Dollars) | $ | $ 643,000 | $ 704,000 |
San Francisco County [Member] | Sold [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 5 | 5 |
San Francisco County [Member] | Rental Property Held For Sale [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 3 | |
Ventura [Member] | Parking Lot [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Gains (Losses) on Sales of Other Real Estate (in Dollars) | $ | $ 71,000 | |
Ventura [Member] | Sold [Member] | Parking Lot [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 3 | |
Ventura [Member] | Acquired [Member] | Parking Lot [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Real Estate Properties | 1 | |
Ventura [Member] | Acquired [Member] | Commercial/Retail Property [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Real Estate Properties | 1 | |
Alameda County [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 4 | |
Gains (Losses) on Sales of Other Real Estate (in Dollars) | $ | $ 857,000 | |
Alameda County [Member] | Sold [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 4 | |
Contra Costa [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 29 | |
Gains (Losses) on Sales of Other Real Estate (in Dollars) | $ | $ 36,000 | |
Contra Costa [Member] | Condominium Complex [Member] | First Deed of Trust [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Interest rate percentage on note | 5.00% | |
Note, frequency of periodic payment | monthly | |
Note, maturity term | 18 months | |
Note, maturity date | Mar. 1, 2018 | |
Contra Costa [Member] | Sold [Member] | Condominium Complex [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 29 | |
Percentage of Real Estate Sale Price Based On Market Rates | 77.00% | |
Contra Costa [Member] | Rental Property Held For Sale [Member] | Commercial Property [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Real Estate Properties | 1 | |
Amador [Member] | Commercial Property [Member] | First Deed of Trust [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Interest rate percentage on note | 5.00% | |
Note, frequency of periodic payment | monthly | |
Note, maturity term | 5 years | |
Note, maturity date | Dec. 1, 2021 | |
Amador [Member] | Sold [Member] | Commercial Property [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Gains (Losses) on Sales of Other Real Estate (in Dollars) | $ | $ 0 | |
Percentage of Real Estate Sale Price Based On Market Rates | 70.00% | |
Number of Real Estate Properties | 1 | |
Stanislaus County [Member] | Affiliated Funds [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Acquired remaining percentage of interest in commercial land | 36.00% | |
Property purchased at estimated net realizable value | $ | $ 878,000 | |
Stanislaus County [Member] | Non Rental Held For Sale [Member] | Residential Single Family [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Area of Real Estate Property (in Acres) | a | 14 | |
Fresno County California [Member] | Non Rental Held For Sale [Member] | Residential Single Family [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Number of Units in Real Estate Property | 1 | |
Marin County [Member] | Non Rental Held For Sale [Member] | Residential Single Family [Member] | ||
Real Estate Owned REO Details [Line Items] | ||
Area of Real Estate Property (in Acres) | a | 13 |
Real Estate Owned (REO) - REO40
Real Estate Owned (REO) - REO, Held for Sale, by Property Type (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Real Estate Acquired Through Foreclosure Or Similar Procedures [Line Items] | |||
REO, held for sale, net book value | $ 7,014 | $ 19,782 | $ 82,949 |
Rental Properties Held as Investment [Member] | |||
Real Estate Acquired Through Foreclosure Or Similar Procedures [Line Items] | |||
REO, held for sale, net book value | 3,606 | 16,174 | |
Non-Rental Held as Investment [Member] | |||
Real Estate Acquired Through Foreclosure Or Similar Procedures [Line Items] | |||
REO, held for sale, net book value | 3,408 | 3,608 | |
REO Held as Investment [Member] | |||
Real Estate Acquired Through Foreclosure Or Similar Procedures [Line Items] | |||
REO, held for sale, net book value | $ 7,014 | $ 19,782 |
Real Estate Owned (REO) - Earni
Real Estate Owned (REO) - Earnings/(Loss) from Rental Operations of the Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Professional services | $ 1,052 | $ 1,344 |
Total operations expense | 5,431 | 5,166 |
Interest on mortgages | 1,581 | |
Rental operations, net of mortgage interest | (576) | 121 |
REO Held for Sale [Member] | ||
Rental income | 315 | 4,831 |
Administration and payroll | 91 | 675 |
Homeowner association fees | 115 | 384 |
Professional services | 25 | 113 |
Utilities and maintenance | 472 | 1,001 |
Advertising and promotions | 1 | 35 |
Property taxes | 110 | 748 |
Other | 74 | 155 |
Total operations expense | 888 | 3,111 |
Net operating income | (573) | 1,720 |
Receiver fees | 3 | 18 |
Rental operations, net | (576) | 1,702 |
Interest on mortgages | 1,581 | |
Rental operations, net of mortgage interest | $ (576) | $ 121 |
Fair Value - Assets and Liabili
Fair Value - Assets and Liabilities Measured at Fair Value on a Non-recurring basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans with specific allowance, net for which an adjustment was recorded in the year | $ 0 | $ 0 |
REO acquired through foreclosure during the year | 0 | 0 |
REO for which a valuation reserve has been recorded in the year | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans with specific allowance, net for which an adjustment was recorded in the year | 0 | 0 |
REO acquired through foreclosure during the year | 0 | 416 |
REO for which a valuation reserve has been recorded in the year | 1,778 | 4,445 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans with specific allowance, net for which an adjustment was recorded in the year | 0 | 0 |
REO acquired through foreclosure during the year | 0 | 0 |
REO for which a valuation reserve has been recorded in the year | 0 | 0 |
Estimate of Fair Value Measurement [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans with specific allowance, net for which an adjustment was recorded in the year | 0 | 0 |
REO acquired through foreclosure during the year | 0 | 416 |
REO for which a valuation reserve has been recorded in the year | $ 1,778 | $ 4,445 |
Fair Value - Assets and Liabi43
Fair Value - Assets and Liabilities Measured at Fair Value on a Non-recurring basis (Parenthetical) (Details) - Fair Value, Measurements, Nonrecurring [Member] - First Mortgage [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Principal and interest payable on mortgage | $ 926,000 | |
Repayment date of mortgage | 2016-06 |
Commitment and Contingencies, O
Commitment and Contingencies, Other Than Loan Commitments - Scheduled Capital Account Withdrawal Requests (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Partners Capital Account Withdrawals [Abstract] | |
2,018 | $ 24,247 |
2,019 | 14,994 |
2,020 | 8,156 |
2,021 | 4,779 |
2,022 | 1,890 |
Thereafter | 68 |
Total | $ 54,134 |