Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Feb. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | FY | |
No Trading Symbol Flag | true | |
Title of 12(g) Security | Limited Partnership Interests | |
Entity Registrant Name | REDWOOD MORTGAGE INVESTORS VIII | |
Entity Central Index Key | 0000889123 | |
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 | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 98,514,526 | |
Entity Public Float | $ 0 | |
Entity Interactive Data Current | Yes | |
Entity File Number | 000-27816 | |
Entity Incorporation, State or Country Code | CA | |
Entity Tax Identification Number | 94-3158788 | |
Entity Address, Address Line One | 177 Bovet Road | |
Entity Address, Address Line Two | Suite 520 | |
Entity Address, City or Town | San Mateo | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94402 | |
City Area Code | 650 | |
Local Phone Number | 365-5341 | |
Document Transition Report | false | |
Document Annual Report | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash, in banks | $ 4,142 | $ 13,607 |
Principal | 86,203 | 97,438 |
Advances | 167 | 52 |
Accrued interest | 711 | 701 |
Prepaid interest | (121) | (341) |
Loan balances secured by deeds of trust | 86,960 | 97,850 |
Allowance for loan losses | (50) | 0 |
Loan balances secured by deeds of trust, net | 86,910 | 97,850 |
Real estate owned (REO), net | 3,252 | 4,153 |
Other assets, net | 50 | 113 |
Total assets | 94,354 | 115,723 |
LIABILITIES AND PARTNERS' CAPITAL | ||
Accounts payable and accrued liabilities | 565 | 388 |
Commitments and Contingencies (Note 7) | ||
Partners’ capital | ||
Limited partners’ capital | 98,770 | 121,012 |
General partners’ deficit | (689) | (734) |
Total partners’ capital | 98,081 | 120,278 |
Receivable from manager (formation loan) | (4,292) | (4,943) |
Partners’ capital, net of formation loan | 93,789 | 115,335 |
Total liabilities and partners’ capital | $ 94,354 | $ 115,723 |
Consolidated Statements of Inco
Consolidated Statements of Income (Parenthetical) - Redwood Mortgage Investors VIII [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Limited partners | 99.00% | 99.00% |
General partners | 1.00% | 1.00% |
Consolidated Statements of In_2
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues | ||
Interest income | $ 7,853 | $ 9,298 |
Late fees | 34 | 80 |
Gain on sale, loans | 38 | 17 |
Revenue, loans | 7,925 | 9,395 |
Recovery of loan losses, net | (1,563) | (13) |
Operations expense | ||
Mortgage servicing fees | 1,388 | 1,624 |
Asset management fees | 505 | 516 |
Costs from Redwood Mortgage Corp. | 1,411 | 1,639 |
Professional services | 1,015 | 908 |
REO, net (Note 5) | 670 | (289) |
Other | 18 | (48) |
Total operations expense | 5,007 | 4,350 |
Net income | 4,481 | 5,058 |
Limited partners (99%) | 4,436 | 5,007 |
General partners (1%) | $ 45 | $ 51 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Partners' Capital - USD ($) $ in Thousands | Total | Capital Subject to Withdrawals Net [Member]Limited Partner [Member] | Partners Capital (Deficit) [Member]General Partner [Member] | Capital Units [Member] |
Beginning balance at Dec. 31, 2017 | $ 146,791 | $ (785) | $ 146,006 | |
Net income | $ 5,058 | 5,007 | 51 | 5,058 |
Distributions | (2,496) | (2,496) | ||
Withdrawals | (28,290) | (28,290) | ||
Ending balance at Dec. 31, 2018 | 115,335 | 121,012 | (734) | 120,278 |
Net income | 4,481 | 4,436 | 45 | 4,481 |
Distributions | (2,343) | (2,343) | ||
Withdrawals | (24,335) | (24,335) | ||
Ending balance at Dec. 31, 2019 | $ 93,789 | $ 98,770 | $ (689) | $ 98,081 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash from Operations | ||
Interest income received | $ 7,569 | $ 9,684 |
Other loan revenue received | 35 | 77 |
Operations expense | (4,148) | (4,558) |
Total cash provided by operations | 3,456 | 5,203 |
Cash from Investing Activities | ||
Principal collected - secured | 67,095 | 51,192 |
Loans transferred to affiliates | 5,890 | |
Loans sold to non-affiliate, net | 7,832 | 13,264 |
Principal collected - unsecured | 24 | |
Loans originated | (63,600) | (37,686) |
Recovery of loan losses | 1,613 | |
Prepaid interest | 341 | |
Advances (made) received on loans | 115 | (431) |
Total - Loans | 12,825 | 33,456 |
REO - sales, net | 281 | 3,321 |
Total cash provided by investing activities | 13,106 | 36,777 |
Cash from Financing Activities | ||
Partner withdrawals | (24,335) | (28,291) |
Early withdrawal penalties | 412 | 691 |
Partner distributions | (2,343) | (2,496) |
RMC payments - formation loan | 239 | |
Cash distributions to partners, net | (26,027) | (30,096) |
Total cash used in financing activities | (26,027) | (30,096) |
Net (decrease) increase in cash | (9,465) | 11,884 |
Cash, beginning of period | 13,607 | 1,723 |
Cash, end of period | 4,142 | 13,607 |
Net income | 4,481 | 5,058 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
(Gain) on sale, loans | (38) | (17) |
Recovery of loan losses | (1,613) | |
Provision for loan losses | 50 | |
REO – gain on disposal | (14) | (113) |
REO – impairment (recovery) | 631 | (345) |
Change in operation assets and liabilities | ||
Prepaid interest | (220) | |
Accrued interest | (64) | 387 |
Other assets | 63 | 6 |
Accounts payable and other liabilities | 180 | 227 |
Total cash provided by operations | $ 3,456 | $ 5,203 |
Organization and General
Organization and General | 12 Months Ended |
Dec. 31, 2019 | |
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 partnership is externally managed by Redwood Mortgage Corp. (RMC), a general partner. The general partners are RMC and Michael R. Burwell (Burwell), an individual. The manager is solely responsible for managing the business and affairs of RMI VIII, 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 the business as RMI VIII has no employees of its own. The mortgage loans the partnership funds and/or invests in, are arranged and generally are serviced by RMC. The rights, duties, and powers of the limited partners and general partners of the partnership are governed by the Limited Partnership Agreement (Partnership Agreement). The following is a summary of certain provisions of the Partnership Agreement and is qualified in its entirety by the terms of the agreement itself. Limited partners should refer to the Partnership Agreement for complete disclosure of its provisions. 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 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; • loan sales to unaffiliated third parties and loan transfers by executed assignment to affiliated mortgage funds; • payments from RMC on the outstanding balance of the formation loan; and, • a line of credit. The partnership intends to hold until repayment the loans in which it invests and does not presently intend to invest in mortgage loans primarily for the purpose of reselling such loans in the ordinary course of business; however, the partnership may sell mortgage loans (or fractional interests therein) when the manager determines that it appears to be advantageous for the partnership to do so, based upon then current interest rates, the length of time that the loan has been held by the partnership, the partnership’s credit risk and concentration risk and the overall investment objectives of the partnership. Loans sold to third parties may be sold for par, at a premium or, in the case of non-performing or under performing loans, at a discount. Partnership loans may be sold to third parties or to the manager or its affiliates; however, any loan sold to the manager or an affiliate thereof will be sold for a purchase price equal to the greater of (i) the par value of the loan or (ii) the fair market value of the loan. The manager will not receive commissions or broker fees with respect to loan sales conducted for the partnership; however, selling loans will increase partnership capital available for investing in new loans for which the manager will earn brokerage fees and other forms of compensation. Net income (losses) are allocated among the limited partners according to their respective capital accounts after one percent (1%) of the net income (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 partnership tax shelter investments. Federal and state income taxes are the obligation of the partners, other than the annual California franchise tax and the California LLC cash receipts taxes paid by the partnership’s subsidiaries. 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. Distribution to limited partners At the time of their subscription to the partnership, limited partners elected either to receive monthly, quarterly or annual cash distributions from the partnership, or to compound income in their capital account. If an investor initially elected to receive monthly, quarterly or annual distributions, such election, once made, is irrevocable. If the investor initially elected to compound income in their capital account, in lieu of cash distributions, the investor may, after three (3) years, change the election and receive monthly, quarterly or annual cash distributions. Income allocable to limited partners who elect to compound income in their capital account will be retained by the partnership for making further loans or for other proper partnership purposes and such amounts will be added to such limited partners’ capital accounts. The percentage of limited partners electing distribution of allocated net income, by weighted average to total partners’ capital was 62% and 61% at December 31, 2019 and 2018, respectively. Capital withdrawals and early withdrawals There are substantial restrictions on transferability of units, and there is no established public trading and/or secondary market for the units. 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 a limited right of accelerated liquidation for an investor’s heirs upon an investor’s death. The partnership has not established a cash reserve from which to fund redemptions and, accordingly, the partnership’s capacity to return a limited partner’s capital is subject to the availability of partnership cash. The general partner is under no obligation to sell loans from the portfolio in order to honor redemption requests, and the program can be restricted or suspended at any time. Cash flow is considered to be available only after all current partnership expenses have been paid (including compensation to the general partners and affiliates) and adequate provision has been made for the payment of all periodic cash distributions on a pro rata basis which must be paid to limited partners who elected to receive such distributions upon subscription for units. Per the Partnership Agreement, 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. Notwithstanding this 20%, the general partners have the discretion to further limit the percentage of total limited partners’ capital accounts that may be withdrawn in order to comply with the safe harbor provisions of the regulations under Section 7704 of the Internal Revenue Code of 1986, as amended, to avoid the partnership being taxed as a corporation. If notices of withdrawal in excess of these limitations are received by the general partners, the priority of distributions among limited partners is determined as follows: first to those limited partners withdrawing capital accounts according to the 20 quarter or longer installment liquidation period, then to benefit plan investors withdrawing capital accounts after five years over four quarterly installments, then to executors, heirs, and other administrators withdrawing capital accounts upon the death of a limited partner and finally to all other limited partners withdrawing capital accounts. Except as provided above, withdrawal requests will be considered by the general partners in the order received . 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, 2019 | |
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. Reclassifications Certain reclassifications, not affecting previously reported net income or total partner capital, have been made to the previously issued consolidated financial statements to conform to the current period presentation. 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 owned, at acquisition and subsequently. Actual results could differ significantly from these estimates. Fair value estimates GAAP defines fair value as the 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 (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) 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 real property is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. Appraisals of commercial real property generally present three approaches to estimating value: 1) market comparables or sales approach; 2) cost to replace; and 3) capitalized cash flows or income 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, 2019, substantially all of the partnership’s cash balances in banks exceed the federal depository insurance limit of $250,000. The bank or banks in which funds are deposited are reviewed periodically for their general credit worthiness/investment grade credit rating. Loans and interest income Performing loans are carried at amortized cost, which is generally equal to 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 amounts paid out on the borrower’s behalf and any accrued interest on amounts paid out, until repaid by the borrower. For performing loans, interest is accrued daily on the principal plus advances, if any. Non-performing loans (i.e., loans with a payment in arears) less than 180 days delinquent continue to recognize interest income as long as the loan is in the process of collection and is considered to be well-secured. Non-performing loans are placed on non-accrual status if 180 days delinquent or earlier if management determines 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. Late fees are recognized in the period received. 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. Any interest reserve is amortized over the period that the amount is prepaid. 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. 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. From time to time, the manager negotiates and enters into loan modifications with borrowers whose loans are delinquent. If a loan modification were to result in an economic concession to the borrower (i.e., a significant delay or reduction in cash flows compared to the original note), the modification is deemed a troubled debt restructuring. The partnership originates loans with the intent to hold the loans until maturity. From time to time the partnership may sell certain loans. Loans are classified as held-for-sale once a decision has been made to sell loans and the loans held-for-sale have been identified. In 2019 and 2018 certain performing loans were sold at an immaterial gain (net of expenses). 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. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the dollar amount by which the net realizable value (i.e., fair value less the cost to sell) of the collateral, net of any senior liens, exceeds the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. 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. A provision for loan losses to adjust the allowance for loan losses (principal and/or recorded interest) is made 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 costs to sell in arriving at net realizable value and net of any senior loans. The partnership charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. Any amounts collected after a charge off is deemed a recovery of loan losses. At foreclosure, any excess of the recorded investment in the loan (accounting basis) over the net realizable value of the collateral 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 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. REO is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expense as an adjustment to the valuation allowance. 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. Recently issued accounting pronouncements- Accounting and Financial Reporting for Expected Credit Losses The Financial Account 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 not only historical trends and current conditions, but must also consider 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. The ASU is effective for smaller reporting companies and for interim and annual reporting periods in 2023. RMI VIII invests in real estate secured loans made with the expectation that the possibility of credit losses is remote as a result of substantial protective equity provided by the underlying collateral. The real estate secured programs and low loan-to-value ratios have caused RMC to expect that the adoption of the CECL model from the incurred loss models presently in use as to credit loss recognition will likely not materially impact the reported results of operations or financial position of the partnership. |
General Partners and Other Rela
General Partners and Other Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
General Partners and Other Related Parties | NOTE 3 –GENERAL PARTNERS AND OTHER RELATED PARTIES The Partnership agreement provides for compensation of the manager, as detailed below, and for the general partners. The general partners are entitled to 1% of profits or loss of the partnership. In 2010, and continuing until December 31, 2019, RMC assigned its right to two-thirds of the one percent (0.66%) of RMI VIII’s income or losses to Burwell in exchange for Burwell assuming one hundred percent (100%) of the general partners’ equity deficit. This agreement expired January 1, 2020 and was not extended. Mortgage servicing fees The manager acting as servicing agent with respect to all loans is entitled to receive a 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. Asset The general partners are entitled to 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). Costs from Redwood Mortgage Corp . The manager is entitled to reimbursement 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 partnership 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. 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. - Other fees – During the year ended December 31, 2018, the partnership transferred two performing loans in-full to Redwood Mortgage Investors IX, LLC, an affiliated mortgage fund, at par value, which approximates fair value, of approximately $5,890,000. The partnership received cash for the transfer and has no continuing obligation or involvement with the assigned loans. No loans were transferred during the year ended December 31, 2019. 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 partnership had made such advances of $22,567,000, of which $4,291,000 remain outstanding on the formation loan. RMC will repay the formation loans principally from loan brokerage commissions earned on loans, early withdrawal penalties and other fees paid by the partnership. Since RMC will use the proceeds from loan brokerage commissions on loans to repay the formation loans and, with respect to the initial offering of 150,000 Units, for the continued payment of the continuing servicing fees, if all or any one of the initial general partners is removed as a general partner by the vote thereafter designated, and if such successor or additional general partner(s) begins using any other loan brokerage firm for the placement of loans, RMC will be immediately released from any further obligation under the formation loans (except for a proportionate share of the principal installment due at the end of that year). In addition, if all of the general partners are removed, no successor general partners are elected, the partnership is liquidated and RMC is no longer receiving any payments for services rendered, the debt on the formation loans shall be forgiven RMC will be immediately released from any further obligations under the formation loans. The formation loan activity is summarized in the following table for the years ended December 31 ($ in thousands). 2019 2018 Balance, January 1 $ 4,943 $ 5,634 Early withdrawal penalties (412 ) (691 ) Repayments (239 ) — Balance, December 31 $ 4,292 $ 4,943 Annual payments on the formation loan of $650,000 are scheduled for the years 2020 to 2025, totaling $3.9 million, with the remaining $392,000 to be paid in 2026. Withdrawals of limited partners’ capital The table below sets forth withdrawals of limited partners' capital for the years ended December 31 ($ in thousands). 2019 2018 Limited partner capital withdrawals-without penalty $ 20,162 $ 20,175 Limited partner capital withdrawals-with penalty 4,173 8,115 Total $ 24,335 $ 28,290 Scheduled withdrawals, at December 31 $ 40,159 $ 48,092 Of the scheduled withdrawals of approximately $40,159,000, approximately $1,580,000 are subject to early withdrawal penalties as of December 31, 2019. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | NOTE 4 – LOANS Loans generally are funded at a fixed interest rate with a loan term of up to five years. Loans acquired are generally done so within the first six months of origination, and purchased at the current par value, which approximates fair value. There were no loans acquired by the partnership during the years ended December 31, 2019 and 2018. As of December 31, 2019, 39 of the partnership’s 47 loans (representing 97% of the aggregate principal of the partnership’s loan portfolio) have a term of five years or less from loan inception. The remaining loans have terms longer than five years. Substantially all loans are written without a prepayment penalty clause. As of December 31, 2019, 15 of the loans outstanding (representing 63% of the aggregate principal balance of the partnership’s loan portfolio) provide for monthly payments of interest only, with the principal due in full at maturity. The remaining loans require monthly payments of principal and interest, typically calculated on a 30-year amortization, with the remaining principal balance due at maturity. Secured loans unpaid principal balance (principal) Secured loan transactions are summarized in the following table for the years ended December 31 ($ in thousands). 2019 2018 Principal, beginning of period $ 97,438 $ 130,018 Loans originated 63,600 37,686 Loans transferred to affiliates — (5,890 ) Loans sold to non-affiliate (7,740 ) (13,184 ) Principal collected (67,095 ) (51,192 ) Principal, December 31 $ 86,203 $ 97,438 During the years ended December 31, 2019 and 2018, the partnership renewed nine and eleven loans with aggregate principal of approximately $13,814,000 and $24,141,000, respectively, which are not included in the activity shown in the above table. See Note 3 (General Partners and Other Related Parties) for a description of loan transfers by executed assignments to affiliates. Pursuant to California regulatory requirements borrower payments are deposited into a trust account established by RMC with an independent bank. Funds are disbursed to the partnership as collected which can range from same day for wire transfers and up to two weeks after deposit for checks. Borrower payments held in the trust account that are yet to be disbursed to the partnership are not included in the consolidated financial statements. At December 31, 2019, $21,592 of borrower payments made by check, was on deposit in the trust account, all of which was disbursed to the partnership by January 23, 2020, when they were recorded by the partnership. At December 31, 2018, $141,676 of borrower payments made by check, was on deposit in the trust account, all of which was disbursed to the partnership by January 17, 2019, when they were recorded by the partnership. The partnership originates loans with the intent to hold the loans until maturity. From time to time the partnership may sell certain loans when the manager determines it to be in the best interest of the partnership. In July 2019, three loans with aggregate principal balance of approximately $7,740,000 were sold to an unaffiliated third party, at a price that netted an immaterial gain. Loan characteristics Secured loans had the characteristics presented in the following table ($ in thousands). December 31, December 31, 2019 2018 Number of secured loans 47 56 Secured loans – principal $ 86,203 $ 97,438 Secured loans – lowest interest rate (fixed) 5.0 % 5.0 % Secured loans – highest interest rate (fixed) 10.8 % 10.5 % Average secured loan – principal $ 1,834 $ 1,740 Average principal as percent of total principal 2.1 % 1.8 % Average principal as percent of partners’ capital, net of formation loan 2.0 % 1.5 % Average principal as percent of total assets 1.9 % 1.5 % Largest secured loan – principal $ 10,200 $ 10,900 Largest principal as percent of total principal 11.8 % 11.2 % Largest principal as percent of partners’ capital, net of formation loan 10.9 % 9.5 % Largest principal as percent of total assets 10.8 % 9.4 % Smallest secured loan – principal $ 51 $ 56 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 California counties where security is located 15 18 Largest percentage of principal in one California county 38.2 % 26.7 % Number of secured loans with a filed notice of default 1 — Secured loans in foreclosure – principal $ 2,939 $ — Number of secured loans with prepaid interest 2 1 Prepaid interest $ 121 $ 341 As of December 31, 2019, the partnership’s largest loan, with an unpaid principal balance of $10,200,000 (representing 11.8% of outstanding secured loans and 10.8% of partnership total assets) has an interest rate of 9.50%, is secured by an industrial building located in San Francisco, and has a maturity date of September 1, 2020. As of December 31, 2019, the partnership had no outstanding construction or rehabilitation loans and no commitments to fund construction or rehabilitation loans. The partnership had no loan commitments to lend as of December 31, 2019. Lien position At funding secured loans had the following lien positions and are presented in the following table ($ in thousands). December 31, 2019 December 31, 2018 Loans Principal Percent Loans Principal Percent First trust deeds 31 $ 72,621 84 % 34 $ 80,348 82 % Second trust deeds 16 13,582 16 22 17,090 18 Total principal, secured loans 47 $ 86,203 100 % 56 $ 97,438 100 % Liens due other lenders at loan closing 29,817 37,632 Total debt $ 116,020 $ 135,070 Appraised property value at loan closing $ 226,185 $ 258,134 Percent of total debt to appraised values (LTV) at loan closing (1) 55.1 % 55.0 % (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 of senior liens to other lenders. Property type Secured loans summarized by property type are presented in the following table ($ in thousands). December 31, 2019 December 31, 2018 Loans Principal Percent Loans Principal Percent Single family (2) 32 $ 30,629 36 % 32 $ 35,956 36 % Multi-family 2 7,072 7 3 1,713 2 Commercial 12 48,117 56 20 59,319 61 Land 1 385 1 1 450 1 Total principal, secured loans 47 $ 86,203 100 % 56 $ 97,438 100 % (2) Single family property type as of December 31, 2019 consists of 12 loans with principal of approximately $7,642,000 that are owner occupied and 20 loans with principal of approximately $22,987,000 that are non-owner occupied. At December 31, 2018, single family property consisted of 16 loans with principal of approximately $12,839,000 that were owner occupied and 16 loans with principal approximately of $23,054,000 that were non-owner occupied. Distribution by California Counties The distribution of secured loans outstanding by the California county in which the primary collateral is located is presented in the following table ($ in thousands). December 31, 2019 December 31, 2018 Principal Percent Principal Percent San Francisco Bay Area (3) San Francisco $ 32,908 38.2 % $ 26,026 26.7 % San Mateo 17,221 20.0 23,122 23.7 Alameda 3,349 3.9 4,212 4.2 Santa Clara 6,281 7.3 3,789 3.9 Napa 548 0.6 559 0.6 Marin 513 0.6 849 0.9 Contra Costa 308 0.3 314 0.2 Solano — — 3,560 3.7 61,128 70.9 62,431 63.9 Other Northern California Santa Cruz 1,376 1.6 2,121 2.1 Amador 719 0.8 737 0.8 Monterey 193 0.2 489 0.5 Mariposa 51 0.1 56 0.1 Sacramento — — 3,300 3.4 2,339 2.7 6,703 6.9 Total Northern California 63,467 73.6 69,134 70.8 Los Angeles & Coastal Los Angeles 14,623 17.0 18,236 18.7 Santa Barbara 2,085 2.4 2,099 2.2 Orange 648 0.8 654 0.7 17,356 20.2 20,989 21.6 Other Southern California San Bernardino 5,380 6.2 5,900 6.1 Riverside — — 1,415 1.5 5,380 6.2 7,315 7.6 Total Southern California 22,736 26.4 28,304 29.2 Total principal, secured loans $ 86,203 100.0 % $ 97,438 100.0 % (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, 2019 Loans Principal Percent 2020 20 $ 44,925 52 % 2021 13 15,772 18 2022 4 4,298 5 2023 2 3,813 5 2024 2 1,185 1 Thereafter 2 3,900 5 Total future maturities 43 73,893 86 Matured as of December 31, 2019 4 12,310 14 Total principal, secured loans 47 $ 86,203 100 % 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. Matured loans Secured loans, principal past maturity are summarized in the following table as of December 31, 2019 ($ in thousands). December 31, 2019 Number of loans 4 Principal $ 12,310 Advances 25 Accrued interest (4) 597 Total secured loan balance past maturity $ 12,932 Principal past maturity as percent of total principal 14 % (4) Accrued interest is the amount due on the note. For financial reporting purposes, approximately $298,000 in accrued interest is reflected on the balance sheet, with the remainder being foregone interest. Non-performing loans Secured loans, principal summarized by payment delinquency is presented in the following table ($ in thousands). December 31, 2019 December 31, 2018 Loans Principal Loans Principal Past Due 30-89 days — $ — 1 $ 450 90-179 days 1 5,355 1 3,300 180 or more days 3 6,955 — — Total past due 4 12,310 2 3,750 Current 43 73,893 54 93,688 Total principal, secured loans 47 $ 86,203 56 $ 97,438 No loan payment modifications were made during 2019 and 2018. Payments in arrears for non-performing secured loans (i.e., principal and interest payments past due 30 or more days), principal and accrued interest receivable are presented in the following table as of December 31, 2019 ($ in thousands). Loans Principal Accrued interest receivable Total past due Past Due 30-89 days — $ — $ — $ — 90-179 days 1 5,355 114 5,469 180 or more days 3 6,955 184 7,139 Total past due 4 $ 12,310 $ 298 $ 12,608 Accrued interest income of approximately $298,000 and $88,000 was accrued on loans contractually past due 90 days or more as to principal and/or interest payments during 2019 and 2018, respectively. All non-performing loans were past maturity at December 31, 2019. One loan, with principal of $385,000 was past maturity and continuing to make monthly interest payments. At December 31, 2019 and 2018, the partnership had no workout agreements, or troubled debt restructurings in effect. Secured loans in nonaccrual status are summarized in the following table ($ in thousands). December 31, December 31, 2019 2018 Number of loans 3 — Principal $ 6,955 $ — Advances 25 — Accrued interest 184 — Total recorded investment $ 7,164 $ — Foregone interest $ 298 $ — At December 31, 2019, three loans with aggregate principal balance of approximately $6,955,000 were in non-accrual status, all of which were past maturity. At December 31, 2019, one loan with a principal balance of approximately $5,355,000 and accrued interest of approximately $114,000 was contractually 90 or more days past due as to principal or interest and not in non-accrual status. At December 31, 2018, one loan with a principal balance of approximately $3,300,000 was contractually 90 or more days past due as to principal or interest and not in non-accrual status. Allowance for loan losses/provision for loan losses At December 31, 2019, RMI VIII recorded a $50,000 provision for loan losses, primarily for secured loans in a second lien position, as the manager may – from time to time – agree to concessions to borrowers to facilitate a sale of collateral or refinance transaction. At December 31, 2018, the partnership had no allowance for loan losses. Recovery from agreement with a borrower On September 30, 2019, RMI VIII received $1,612,500 pursuant to the terms of a workout agreement dated October 21, 2011, between RMI VIII and a borrower in default on certain loans secured by various California properties. As part of a workout, RMI VIII received an assignment of a non-voting economic membership interest in the developer’s joint venture, in an amount equal to 25% of all distributions of profit and return of invested capital attributable to the developer’s interest, but excluding management and development fees, payable to the developer from certain joint ventures from which the developer receives a share of the proceeds of the properties. In the third quarter of 2018 one of the two properties held by the joint venture was transferred to an affiliate of the joint venture. The joint venture operating agreement prohibits distributions prior to the sale of the last asset. Accordingly, RMI VIII disclosed a contingent gain based on that transfer beginning in its third quarter 2018 financial statements. The second and last asset held by the joint venture was sold in the second quarter of 2019. After that sale, the Loans designated impaired Loans designated impaired and the associated allowance for loan losses is presented in the following table ($ in thousands). December 31, December 31, 2019 2018 Principal $ 12,310 $ 3,300 Recorded investment (5) 12,931 3,388 Impaired loans without allowance 12,931 3,388 Impaired loans with allowance — — Allowance for loan losses, impaired loans — — Number of Loans 4 1 LTV, at origination (6) 68.0 % 36.1 % (5) Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. (6) During the course of review of appraisals ordered in the fourth quarter of 2019, one loan with principal of approximately $2,939,000 was determined to have an LTV of 87% at December 31, 2019. Impaired loans had the average balances and interest income recognized and received in cash as presented in the following table as of and for the years ended December 31, 2019 and 2018 ($ in thousands). December 31, December 31, 2019 2018 Average recorded investment $ 8,160 $ 5,987 Interest income recognized 298 257 Interest income received in cash 284 210 |
Real Estate Owned (REO)
Real Estate Owned (REO) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Real Estate Owned (REO) | NOTE 5 – REAL ESTATE OWNED (REO) REO transactions and valuation adjustments are summarized in the following table ($ in thousands). REO balance Valuation allowance REO, net 2019 2018 2019 2018 2019 2018 Balance, beginning of period $ 7,700 $ 11,093 $ (3,547 ) $ (4,079 ) $ 4,153 $ 7,014 Additions — 124 — — — 124 Valuation allowance adjustment — — (631 ) 220 (631 ) 220 Dispositions (1,209 ) (3,517 ) 939 312 (270 ) (3,205 ) Balance, end of period $ 6,491 $ 7,700 $ (3,239 ) $ (3,547 ) $ 3,252 $ 4,153 The partnership held REO at December 31 2019 comprised of four properties with a carrying value, net of approximately $3,252,000. REO is recorded at fair value at acquisition, and subsequently adjusted to the lower of the recorded cost or fair value based on appraisals and analysis by RMC: • In San Francisco County, 3 residential units in a condominium complex, which are being marketed as affordable-units to qualifying buyers pursuant to listing approved by the City of San Francisco. • In Fresno County, a partially completed home subdivision, being marketed by a broker. • In Stanislaus County, approximately 14 acres of undeveloped land zoned commercial, being marketed by a broker. • In San Francisco County, a real estate interest comprised of a condominium unit/storage lockers and signage rights on the exterior façade of the building. In the third and fourth quarters of 2019, the valuation allowance on three REO properties was increased by $631,000 consistent with updated appraisals received and RMC’s analysis. One of these properties representing approximately 13 acres zoned for residential development in Marin County, sold in October 2019, the net proceeds for which approximated $270,300. The following sales closed in 2018: • Six units in a condominium complex in Los Angeles County were sold with a gain of approximately $113,000, which resulted in a decrease in REO, net by approximately $1,928,000. • A commercial office property in Contra Cost County was sold at approximately its carrying value. REO, net in operations expense is comprised of the following for the years ended December 31 ($ in thousands). 2019 2018 Holding costs, net of other income $ (53 ) $ (169 ) Gains/(losses) on sales 14 113 Valuation adjustments (631 ) 345 REO, net $ (670 ) $ 289 Rental operations were substantially wound down, and all residential rental units had been made vacant in preparation for sale by year end 2017. As such, there were no rental operations during 2019 and 2018. Any month-to-month occupancy rents received (i.e., excluding storage and sign rents) (approximately $58,000 and $57,000 in 2019 and 2018, respectively) are included in REO, net . |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value | NOTE 6 – FAIR VALUE Secured loans The following methods and assumptions are used when estimating fair value. Secured loans, performing (i.e., not designated as impaired) (Level 3) - 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. Due to the nature of the partnership’s loans and borrowers the fair value of loan balances secured by deeds of trust is deemed to approximate the recorded amount (per the financial statements) as our loans: • are of shorter terms at origination than commercial real estate loans by institutional lenders and conventional single-family home mortgage lenders; • are written without a prepayment penalty causing uncertainty/a lack of predictability as to the expected duration of the loan; and • have limited marketability and are not yet sellable into an established secondary market. Secured loans, designated impaired (Level 3) - The fair value of secured loans designated impaired is the lesser of the fair value of the collateral or the enforceable amount of the note. Secured loans designated impaired are collateral dependent because it is expected that the primary source of repayment will not be from the borrower but rather from the collateral. The fair value of the collateral is determined on a nonrecurring basis 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 3 inputs). When the fair value of the collateral exceeds the enforceable amount of the note, the borrower is likely to redeem the note. Accordingly, third party market participants would generally pay the fair value of the collateral, but no more than the enforceable amount of the note. 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 sales comparables (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 and adjusted 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. 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. When adequate sale comps are not available or reliable rental 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 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, including a determination of its highest and best use. 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 7 – COMMITMENTS AND CONTINGENCIES Commitments The partnership’s only commitment at December 31, 2019 is to fund the scheduled limited partner capital withdrawal requests as presented in the following table ($ in thousands). 2020 $ 16,016 2021 10,426 2022 7,386 2023 4,510 2024 1,690 Thereafter 131 Total $ 40,159 The partnership has contractual obligations to RMC per the Partnership Agreement. See Note 3 (General Partners and Other Related Parties) for a more detailed discussion on the partnership’s contractual obligations to RMC. 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, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8 – SUBSEQUENT EVENTS COVID-19 (Coronavirus) On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus (“COVID-19”) and in March 2020 classified the outbreak as a pandemic. In March 2020, the President of the United States and the Governor of California declared a state of emergency, based on the rapid increase in COVID-19 cases including in California where the real estate collateralizing the partnership’s loans and REO are located. Recently, COVID-19 has caused significant disruptions to the global, national and local economy. The overall impact of COVID-19 on the California economy and the California real estate markets is not known and cannot be predicted at this time. The partnership’s revenue and operating results depend significantly on the strength of the California real estate market, interest rates charged on loans and the ability of borrowers to make principal and interest payments. If the outbreak causes weakness in national, regional and local economies including but not limited to increases in unemployment rates and disruptions to businesses, it may negatively impact the values of California real estate, the ability of borrowers to make principal and interest payments and the volume of loan originations. If these factors persist, it would likely result in declines in California real estate values which would cause the protective equity in the loan to be eroded and any continued decreases in values would also lead to increases in the allowance for loan losses in future periods. Such declines in California real estate values would also lead to increases to the valuation allowance for REO. Taken together, these factors if severe and prolonged would have a short or long term adverse impact, possibly material, on the partnership’s future financial condition, liquidity, and results of operations. On March 26, 2020 the partnership sold one unit in a condominium complex located in San Francisco County for approximately $197,000 and recognized a gain of approximately $68,000. On March 27, 2020, the partnership assigned through executed transfer, one performing loan with principal of approximately $2.3 million to an affiliated mortgage fund at par plus accrued interest which approximates fair value. The partnership evaluated subsequent events that have occurred after December 31, 2019 and determined that there were no other events or transactions occurring during this reporting period that require recognition or disclosure in the consolidated financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
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. |
Reclassifications | Reclassifications Certain reclassifications, not affecting previously reported net income or total partner capital, have been made to the previously issued consolidated financial statements to conform to the current period presentation. |
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 owned, at acquisition and subsequently. Actual results could differ significantly from these estimates. |
Fair Value Estimates | Fair value estimates GAAP defines fair value as the 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 (i) independent, (ii) knowledgeable, (iii) able to transact and (iv) 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 real property is determined by exercise of judgment based on management’s experience informed by appraisals (by licensed appraisers), brokers’ opinion of values, and publicly available information on in-market transactions. Appraisals of commercial real property generally present three approaches to estimating value: 1) market comparables or sales approach; 2) cost to replace; and 3) capitalized cash flows or income 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, 2019, substantially all of the partnership’s cash balances in banks exceed the federal depository insurance limit of $250,000. The bank or banks in which funds are deposited are reviewed periodically for their general credit worthiness/investment grade credit rating. |
Loans and Interest Income | Loans and interest income Performing loans are carried at amortized cost, which is generally equal to 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 amounts paid out on the borrower’s behalf and any accrued interest on amounts paid out, until repaid by the borrower. For performing loans, interest is accrued daily on the principal plus advances, if any. Non-performing loans (i.e., loans with a payment in arears) less than 180 days delinquent continue to recognize interest income as long as the loan is in the process of collection and is considered to be well-secured. Non-performing loans are placed on non-accrual status if 180 days delinquent or earlier if management determines 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. Late fees are recognized in the period received. 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. Any interest reserve is amortized over the period that the amount is prepaid. 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. 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. From time to time, the manager negotiates and enters into loan modifications with borrowers whose loans are delinquent. If a loan modification were to result in an economic concession to the borrower (i.e., a significant delay or reduction in cash flows compared to the original note), the modification is deemed a troubled debt restructuring. The partnership originates loans with the intent to hold the loans until maturity. From time to time the partnership may sell certain loans. Loans are classified as held-for-sale once a decision has been made to sell loans and the loans held-for-sale have been identified. In 2019 and 2018 certain performing loans were sold at an immaterial gain (net of expenses). |
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. Collateral fair values are reviewed quarterly and the protective equity for each loan is computed. As used herein, “protective equity” is the dollar amount by which the net realizable value (i.e., fair value less the cost to sell) of the collateral, net of any senior liens, exceeds the loan balance, where “loan balance” is the sum of the unpaid principal, advances and the recorded interest thereon. 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. A provision for loan losses to adjust the allowance for loan losses (principal and/or recorded interest) is made 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 costs to sell in arriving at net realizable value and net of any senior loans. The partnership charges off uncollectible loans and related receivables directly to the allowance account once it is determined the full amount is not collectible. Any amounts collected after a charge off is deemed a recovery of loan losses. At foreclosure, any excess of the recorded investment in the loan (accounting basis) over the net realizable value of the collateral 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 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. REO is analyzed periodically for changes in fair values and any subsequent write down is charged to operations expense as an adjustment to the valuation allowance. 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. |
Recently Issued Accounting Pronouncements | Recently issued accounting pronouncements- Accounting and Financial Reporting for Expected Credit Losses The Financial Account 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 not only historical trends and current conditions, but must also consider 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. The ASU is effective for smaller reporting companies and for interim and annual reporting periods in 2023. RMI VIII invests in real estate secured loans made with the expectation that the possibility of credit losses is remote as a result of substantial protective equity provided by the underlying collateral. The real estate secured programs and low loan-to-value ratios have caused RMC to expect that the adoption of the CECL model from the incurred loss models presently in use as to credit loss recognition will likely not materially impact the reported results of operations or financial position of the partnership. |
General Partners and Other Re_2
General Partners and Other Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Formation Loan Activity | The formation loan activity is summarized in the following table for the years ended December 31 ($ in thousands). 2019 2018 Balance, January 1 $ 4,943 $ 5,634 Early withdrawal penalties (412 ) (691 ) Repayments (239 ) — Balance, December 31 $ 4,292 $ 4,943 |
Schedule of Withdrawals of Limited Partners' Capital | The table below sets forth withdrawals of limited partners' capital for the years ended December 31 ($ in thousands). 2019 2018 Limited partner capital withdrawals-without penalty $ 20,162 $ 20,175 Limited partner capital withdrawals-with penalty 4,173 8,115 Total $ 24,335 $ 28,290 Scheduled withdrawals, at December 31 $ 40,159 $ 48,092 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Secured Loan Principal Transactions | Secured loan transactions are summarized in the following table for the years ended December 31 ($ in thousands). 2019 2018 Principal, beginning of period $ 97,438 $ 130,018 Loans originated 63,600 37,686 Loans transferred to affiliates — (5,890 ) Loans sold to non-affiliate (7,740 ) (13,184 ) Principal collected (67,095 ) (51,192 ) Principal, December 31 $ 86,203 $ 97,438 |
Secured Loans Characteristics | Secured loans had the characteristics presented in the following table ($ in thousands). December 31, December 31, 2019 2018 Number of secured loans 47 56 Secured loans – principal $ 86,203 $ 97,438 Secured loans – lowest interest rate (fixed) 5.0 % 5.0 % Secured loans – highest interest rate (fixed) 10.8 % 10.5 % Average secured loan – principal $ 1,834 $ 1,740 Average principal as percent of total principal 2.1 % 1.8 % Average principal as percent of partners’ capital, net of formation loan 2.0 % 1.5 % Average principal as percent of total assets 1.9 % 1.5 % Largest secured loan – principal $ 10,200 $ 10,900 Largest principal as percent of total principal 11.8 % 11.2 % Largest principal as percent of partners’ capital, net of formation loan 10.9 % 9.5 % Largest principal as percent of total assets 10.8 % 9.4 % Smallest secured loan – principal $ 51 $ 56 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 California counties where security is located 15 18 Largest percentage of principal in one California county 38.2 % 26.7 % Number of secured loans with a filed notice of default 1 — Secured loans in foreclosure – principal $ 2,939 $ — Number of secured loans with prepaid interest 2 1 Prepaid interest $ 121 $ 341 |
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, 2019 December 31, 2018 Loans Principal Percent Loans Principal Percent First trust deeds 31 $ 72,621 84 % 34 $ 80,348 82 % Second trust deeds 16 13,582 16 22 17,090 18 Total principal, secured loans 47 $ 86,203 100 % 56 $ 97,438 100 % Liens due other lenders at loan closing 29,817 37,632 Total debt $ 116,020 $ 135,070 Appraised property value at loan closing $ 226,185 $ 258,134 Percent of total debt to appraised values (LTV) at loan closing (1) 55.1 % 55.0 % (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 of 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, 2019 December 31, 2018 Loans Principal Percent Loans Principal Percent Single family (2) 32 $ 30,629 36 % 32 $ 35,956 36 % Multi-family 2 7,072 7 3 1,713 2 Commercial 12 48,117 56 20 59,319 61 Land 1 385 1 1 450 1 Total principal, secured loans 47 $ 86,203 100 % 56 $ 97,438 100 % (2) Single family property type as of December 31, 2019 consists of 12 loans with principal of approximately $7,642,000 that are owner occupied and 20 loans with principal of approximately $22,987,000 that are non-owner occupied. At December 31, 2018, single family property consisted of 16 loans with principal of approximately $12,839,000 that were owner occupied and 16 loans with principal approximately of $23,054,000 that were non-owner occupied. |
Secured Loans Distributed within California | The distribution of secured loans outstanding by the California county in which the primary collateral is located is presented in the following table ($ in thousands). December 31, 2019 December 31, 2018 Principal Percent Principal Percent San Francisco Bay Area (3) San Francisco $ 32,908 38.2 % $ 26,026 26.7 % San Mateo 17,221 20.0 23,122 23.7 Alameda 3,349 3.9 4,212 4.2 Santa Clara 6,281 7.3 3,789 3.9 Napa 548 0.6 559 0.6 Marin 513 0.6 849 0.9 Contra Costa 308 0.3 314 0.2 Solano — — 3,560 3.7 61,128 70.9 62,431 63.9 Other Northern California Santa Cruz 1,376 1.6 2,121 2.1 Amador 719 0.8 737 0.8 Monterey 193 0.2 489 0.5 Mariposa 51 0.1 56 0.1 Sacramento — — 3,300 3.4 2,339 2.7 6,703 6.9 Total Northern California 63,467 73.6 69,134 70.8 Los Angeles & Coastal Los Angeles 14,623 17.0 18,236 18.7 Santa Barbara 2,085 2.4 2,099 2.2 Orange 648 0.8 654 0.7 17,356 20.2 20,989 21.6 Other Southern California San Bernardino 5,380 6.2 5,900 6.1 Riverside — — 1,415 1.5 5,380 6.2 7,315 7.6 Total Southern California 22,736 26.4 28,304 29.2 Total principal, secured loans $ 86,203 100.0 % $ 97,438 100.0 % (3) 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, 2019 Loans Principal Percent 2020 20 $ 44,925 52 % 2021 13 15,772 18 2022 4 4,298 5 2023 2 3,813 5 2024 2 1,185 1 Thereafter 2 3,900 5 Total future maturities 43 73,893 86 Matured as of December 31, 2019 4 12,310 14 Total principal, secured loans 47 $ 86,203 100 % |
Secured Loans Past Maturity | Secured loans, principal past maturity are summarized in the following table as of December 31, 2019 ($ in thousands). December 31, 2019 Number of loans 4 Principal $ 12,310 Advances 25 Accrued interest (4) 597 Total secured loan balance past maturity $ 12,932 Principal past maturity as percent of total principal 14 % |
Past Due Financing Receivables | Payments in arrears for non-performing secured loans (i.e., principal and interest payments past due 30 or more days), principal and accrued interest receivable are presented in the following table as of December 31, 2019 ($ in thousands). Loans Principal Accrued interest receivable Total past due Past Due 30-89 days — $ — $ — $ — 90-179 days 1 5,355 114 5,469 180 or more days 3 6,955 184 7,139 Total past due 4 $ 12,310 $ 298 $ 12,608 |
Secured Loans in Non-Accrual Status | Secured loans in nonaccrual status are summarized in the following table ($ in thousands). December 31, December 31, 2019 2018 Number of loans 3 — Principal $ 6,955 $ — Advances 25 — Accrued interest 184 — Total recorded investment $ 7,164 $ — Foregone interest $ 298 $ — |
By Days Past Due [Member] | |
Past Due Financing Receivables | Secured loans, principal summarized by payment delinquency is presented in the following table ($ in thousands). December 31, 2019 December 31, 2018 Loans Principal Loans Principal Past Due 30-89 days — $ — 1 $ 450 90-179 days 1 5,355 1 3,300 180 or more days 3 6,955 — — Total past due 4 12,310 2 3,750 Current 43 73,893 54 93,688 Total principal, secured loans 47 $ 86,203 56 $ 97,438 |
Impaired Loans [Member] | |
Impaired Financing Receivables | Loans designated impaired and the associated allowance for loan losses is presented in the following table ($ in thousands). December 31, December 31, 2019 2018 Principal $ 12,310 $ 3,300 Recorded investment (5) 12,931 3,388 Impaired loans without allowance 12,931 3,388 Impaired loans with allowance — — Allowance for loan losses, impaired loans — — Number of Loans 4 1 LTV, at origination (6) 68.0 % 36.1 % (5) Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. (6) During the course of review of appraisals ordered in the fourth quarter of 2019, one loan with principal of approximately $2,939,000 was determined to have an LTV of 87% at December 31, 2019. |
Average Balances And Interest Income [Member] | |
Impaired Financing Receivables | Impaired loans had the average balances and interest income recognized and received in cash as presented in the following table as of and for the years ended December 31, 2019 and 2018 ($ in thousands). December 31, December 31, 2019 2018 Average recorded investment $ 8,160 $ 5,987 Interest income recognized 298 257 Interest income received in cash 284 210 |
Real Estate Owned (REO) (Tables
Real Estate Owned (REO) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Summary of REO Transactions and Valuation Adjustments | REO transactions and valuation adjustments are summarized in the following table ($ in thousands). REO balance Valuation allowance REO, net 2019 2018 2019 2018 2019 2018 Balance, beginning of period $ 7,700 $ 11,093 $ (3,547 ) $ (4,079 ) $ 4,153 $ 7,014 Additions — 124 — — — 124 Valuation allowance adjustment — — (631 ) 220 (631 ) 220 Dispositions (1,209 ) (3,517 ) 939 312 (270 ) (3,205 ) Balance, end of period $ 6,491 $ 7,700 $ (3,239 ) $ (3,547 ) $ 3,252 $ 4,153 |
Summary of REO, Net | REO, net in operations expense is comprised of the following for the years ended December 31 ($ in thousands). 2019 2018 Holding costs, net of other income $ (53 ) $ (169 ) Gains/(losses) on sales 14 113 Valuation adjustments (631 ) 345 REO, net $ (670 ) $ 289 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Scheduled Capital Account Withdrawal Requests | The partnership’s only commitment at December 31, 2019 is to fund the scheduled limited partner capital withdrawal requests as presented in the following table ($ in thousands). 2020 $ 16,016 2021 10,426 2022 7,386 2023 4,510 2024 1,690 Thereafter 131 Total $ 40,159 |
Organization and General - Addi
Organization and General - Additional Information (Details) - Installment | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Organizational and General Details [Line Items] | ||
Ownership interest held by the general partner | 62.00% | 61.00% |
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% | |
Limited Partner [Member] | ||
Organizational and General Details [Line Items] | ||
Number of Quarterly Installments for Withdrawal From Partnership | 4 | |
Limited Partner [Member] | Internal Revenue Code [Member] | ||
Organizational and General Details [Line Items] | ||
Number of Quarterly Installments for Withdrawal From Partnership | 20 | |
Limited Partner [Member] | After Five Year Period [Member] | ||
Organizational and General Details [Line Items] | ||
Number of Quarterly Installments for Withdrawal From Partnership | 20 | |
Benefit Plan Investors [Member] | After Five Year Period [Member] | Internal Revenue Code [Member] | ||
Organizational and General Details [Line Items] | ||
Number of Quarterly Installments for Withdrawal From Partnership | 4 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2019USD ($)Approach | |
Summary of Significant Accounting Policies Details [Line Items] | |
Estimating real property value, number of approaches | Approach | 3 |
Cash and cash equivalents, maximum initial maturity | 3 months |
Threshold period past due for impaired loans placed on non-accrual status | 180 days |
Interest reserve minimum length | 1 year |
Interest reserve maximum length | 2 years |
Maximum [Member] | |
Summary of Significant Accounting Policies Details [Line Items] | |
Federal depository insurance limit | $ | $ 250,000 |
Threshold period past due for impaired loans to recognize interest income | 180 days |
Residential lease term | 2 years |
Minimum [Member] | |
Summary of Significant Accounting Policies Details [Line Items] | |
Residential lease term | 1 year |
General Partners and Other Re_3
General Partners and Other Related Parties - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Loanshares | Dec. 31, 2018USD ($)Loan | |
General Partners And Other Related Parties Details [Line Items] | ||
Management fee, description | The general partners are entitled to 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). | |
Loan Brokerage Commissions, Maximum Percent of Assets | 4.00% | |
Number of performing loans | Loan | 0 | 2 |
Performing loans mortgaged, par value | $ 5,890,000 | |
Payments For Initial Public Offering | shares | 150,000 | |
2020 | $ 650,000 | |
2021 | 650,000 | |
2022 | 650,000 | |
2023 | 650,000 | |
2024 | 650,000 | |
2025 | 650,000 | |
2026 | 392,000 | |
Total | 3,900,000 | |
Scheduled withdrawals | 40,159,000 | |
Withdrawal penalties | 412,000 | 691,000 |
Limited Partner [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Scheduled withdrawals | 40,159,000 | $ 48,092,000 |
Withdrawal penalties | 1,580,000 | |
Formation Loan [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Formation loan, advances | 22,567,000 | |
Receivable from affiliate (formation loan) | $ 4,291,000 | |
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 [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Percentage of income or loss allocated | 0.66% | |
General partner equity deficit | 100.00% | |
Agreement expiration date | Jan. 1, 2020 | |
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% |
General Partners and Other Re_4
General Partners and Other Related Parties - Formation Loan Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Formation Loan - Transactions [Abstract] | ||
Balance, January 1 | $ 4,943 | $ 5,634 |
Early withdrawal penalties | (412) | (691) |
Repayments | (239) | |
Balance, December 31 | $ 4,292 | $ 4,943 |
General Partners and Other Re_5
General Partners and Other Related Parties - Schedule of Withdrawals of Limited Partners' Capital (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
General Partners And Other Related Parties Details [Line Items] | ||
Scheduled withdrawals, at December 31 | $ 40,159,000 | |
Limited Partner [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Scheduled withdrawals, at December 31 | 40,159,000 | $ 48,092,000 |
Limited Partner [Member] | Capital Withdrawals-without Penalty [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Total, Capital withdrawals | 20,162,000 | 20,175,000 |
Limited Partner [Member] | Capital Withdrawals-subject to Penalty [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Total, Capital withdrawals | 4,173,000 | 8,115,000 |
Limited Partner [Member] | Capital Subject to Withdrawals Net [Member] | ||
General Partners And Other Related Parties Details [Line Items] | ||
Total, Capital withdrawals | $ 24,335,000 | $ 28,290,000 |
Loans - Additional Information
Loans - Additional Information (Details) | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2019USD ($)Loan | Aug. 31, 2018 | Dec. 31, 2019USD ($)LoanInterest | Dec. 31, 2018USD ($)Loan | Sep. 30, 2019USD ($) | Dec. 31, 2017USD ($) | Oct. 21, 2011 | |
Loans Details [Line Items] | |||||||
Loans receivable, term | 5 years | ||||||
Number of loans acquired | Loan | 0 | ||||||
Loans Receivable Number of Loans | Loan | 47 | 56 | |||||
Loans Receivable, Number of Interest Only Loans | Interest | 15 | ||||||
Loans Receivable, Amortization Term | 30 years | ||||||
Mortgage Loans On Real Estate Number Of Loans Renewed | Loan | 9 | 11 | |||||
Mortgage Loans On Real Estate Principal Renewed | $ 13,814,000 | $ 24,141,000 | |||||
Borrower payments deposit in trust account | 21,592 | 141,676 | |||||
Number of loans sold to an unaffiliated third party | Loan | 3 | ||||||
Aggregate principal amount of loans sold to unaffiliated third party | $ 7,740,000 | ||||||
Loans Receivable Largest Loan (in Dollars) | $ 10,200,000 | $ 10,900,000 | |||||
Loans Receivable, Percent | 100.00% | 100.00% | |||||
Loan amount funded | $ 63,600,000 | $ 37,686,000 | |||||
Loan commitments to lend | $ 0 | ||||||
Number of loan designated impaired and non-accrual substantially paid off | Loan | 1 | ||||||
Mortgage Loan balance | $ 385,000 | ||||||
Matured as of December 31, 2019, Loan | Loan | 4 | ||||||
Loan, Accrued interest receivable | $ 711,000 | 701,000 | |||||
Allowance for loan losses | 50,000 | 0 | |||||
Principal | $ 86,203,000 | $ 97,438,000 | $ 130,018,000 | ||||
Percentage of membership interest equal to distributions of profit and return of invested capital | 25.00% | ||||||
Percentage of claim of profit and amount to be distributed to developer | 25.00% | ||||||
Past Due 90 Days Or More [Member] | |||||||
Loans Details [Line Items] | |||||||
Loans Receivable, Interest Accrual, Period | 90 days | 90 days | |||||
Revenue, loans | $ 298,000 | $ 88,000 | |||||
Number of loan designated impaired and non-accrual substantially paid off | Loan | 1 | ||||||
Mortgage Loan balance | $ 5,355,000 | $ 3,300,000 | |||||
Loan, Accrued interest receivable | $ 114,000,000 | ||||||
Workout Agreements [Member] | |||||||
Loans Details [Line Items] | |||||||
Principal | $ 1,612,500 | ||||||
Modifications of Secured Loan [Member] | |||||||
Loans Details [Line Items] | |||||||
Financing receivable, modifications, number of contracts | Loan | 0 | 0 | |||||
Loan Past Maturity [Member] | |||||||
Loans Details [Line Items] | |||||||
Mortgage Loan balance | $ 6,955,000 | ||||||
Matured as of December 31, 2019, Loan | Loan | 3 | ||||||
Minimum [Member] | |||||||
Loans Details [Line Items] | |||||||
Loans Receivable, Remaining Term | 5 years | ||||||
Five Year Term or Less [Member] | |||||||
Loans Details [Line Items] | |||||||
Loans Receivable Number of Loans | Loan | 39 | ||||||
Loans Receivable, Percent of Aggregate Principal | 97.00% | ||||||
Interest Only [Member] | |||||||
Loans Details [Line Items] | |||||||
Loans Receivable, Percent of Aggregate Principal | 63.00% | ||||||
Largest Loan [Member] | |||||||
Loans Details [Line Items] | |||||||
Loans Receivable, Percent | 11.80% | ||||||
Loans Receivable, Percent of Assets | 10.80% | ||||||
Loans Receivable, Yield of Loan Acquired | 9.50% | ||||||
Loans Receivable Maturity Date | Sep. 1, 2020 | ||||||
Construction Loans [Member] | |||||||
Loans Details [Line Items] | |||||||
Loans outstanding | $ 0 | ||||||
Construction Or Rehabilitation Loans [Member] | |||||||
Loans Details [Line Items] | |||||||
Loan amount funded | $ 0 |
Loans - Secured Loan Principal
Loans - Secured Loan Principal Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Principal, beginning of period | $ 97,438 | $ 130,018 |
Loans originated | 63,600 | 37,686 |
Loans transferred to affiliates | (5,890) | |
Loans sold to non-affiliate | (7,740) | (13,184) |
Principal collected | (67,095) | (51,192) |
Principal, Ending of period | $ 86,203 | $ 97,438 |
Loans - Secured Loans Character
Loans - Secured Loans Characteristics (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)LoanCountyMortgageLoan | Dec. 31, 2018USD ($)LoanCountyMortgageLoan | Dec. 31, 2017USD ($) | |
Secured Loan Transactions [Line Items] | |||
Number of secured loans | Loan | 47 | 56 | |
Secured loans - principal (in Dollars) | $ 86,203,000 | $ 97,438,000 | $ 130,018,000 |
Average secured loan - principal (in Dollars) | $ 1,834,000 | $ 1,740,000 | |
Average principal as percent of total principal | 2.10% | 1.80% | |
Average principal as percent of partners’ capital, net of formation loan | 2.00% | 1.50% | |
Average principal as percent of total assets | 1.90% | 1.50% | |
Largest secured loan - principal (in Dollars) | $ 10,200,000 | $ 10,900,000 | |
Largest principal as percent of total principal | 11.80% | 11.20% | |
Largest principal as percent of partners’ capital, net of formation loan | 10.90% | 9.50% | |
Largest principal as percent of total assets | 10.80% | 9.40% | |
Smallest secured loan - principal (in Dollars) | $ 51,000 | $ 56,000 | |
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 California counties where security is located | County | 15 | 18 | |
Largest percentage of principal in one California county | 38.20% | 26.70% | |
Number of secured loans with a filed notice of default | MortgageLoan | 47 | 56 | |
Secured loans in foreclosure - principal (in Dollars) | $ 2,939,000 | ||
Prepaid interest | $ 121,000 | $ 341,000 | |
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) | 10.80% | 10.50% | |
Filed Notice of Default [Member] | |||
Secured Loan Transactions [Line Items] | |||
Number of secured loans with a filed notice of default | MortgageLoan | 1 | ||
Prepaid Interest [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, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) | ||
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Secured loans, principal | $ 86,203 | $ 97,438 | $ 130,018 | |
Liens due other lenders at loan closing (in Dollars) | 29,817 | 37,632 | ||
Total debt (in Dollars) | 116,020 | 135,070 | ||
Appraised property value at loan closing (in Dollars) | $ 226,185 | $ 258,134 | ||
Percent of total debt to appraised values (LTV) at loan closing | [1] | 55.10% | 55.00% | |
Loans - percent | 100.00% | 100.00% | ||
Number of secured loans | MortgageLoan | 47 | 56 | ||
First Trust Deeds [Member] | ||||
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Secured loans, principal | $ 72,621 | $ 80,348 | ||
Loans - percent | 84.00% | 82.00% | ||
Number of secured loans | MortgageLoan | 31 | 34 | ||
Second Trust Deeds [Member] | ||||
Loans Details - Secured Loans by Lien Position in the Collateral [Line Items] | ||||
Secured loans, principal | $ 13,582 | $ 17,090 | ||
Loans - percent | 16.00% | 18.00% | ||
Number of secured loans | MortgageLoan | 16 | 22 | ||
[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 of senior liens to other lenders. |
Loans - Secured Loans by Proper
Loans - Secured Loans by Property Type (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) | ||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of secured loans | MortgageLoan | 47 | 56 | ||
Secured loans, principal | $ | $ 86,203 | $ 97,438 | $ 130,018 | |
Loans - percent | 100.00% | 100.00% | ||
Single Family [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of secured loans | MortgageLoan | [1] | 32 | 32 | |
Secured loans, principal | $ | [1] | $ 30,629 | $ 35,956 | |
Loans - percent | [1] | 36.00% | 36.00% | |
Multi-family [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of secured loans | MortgageLoan | 2 | 3 | ||
Secured loans, principal | $ | $ 7,072 | $ 1,713 | ||
Loans - percent | 7.00% | 2.00% | ||
Commercial [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of secured loans | MortgageLoan | 12 | 20 | ||
Secured loans, principal | $ | $ 48,117 | $ 59,319 | ||
Loans - percent | 56.00% | 61.00% | ||
Land [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Number of secured loans | MortgageLoan | 1 | 1 | ||
Secured loans, principal | $ | $ 385 | $ 450 | ||
Loans - percent | 1.00% | 1.00% | ||
[1] | Single family property type as of December 31, 2019 consists of 12 loans with principal of approximately $7,642,000 that are owner occupied and 20 loans with principal of approximately $22,987,000 that are non-owner occupied. At December 31, 2018, single family property consisted of 16 loans with principal of approximately $12,839,000 that were owner occupied and 16 loans with principal approximately of $23,054,000 that were non-owner occupied. |
Loans - Secured Loans by Prop_2
Loans - Secured Loans by Property Type (Parenthetical) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) | |
Loans Details [Line Items] | |||
Number of secured loans | MortgageLoan | 47 | 56 | |
Secured loans, principal | $ | $ 86,203,000 | $ 97,438,000 | $ 130,018,000 |
Single Family Property-Owner Occupied [Member] | |||
Loans Details [Line Items] | |||
Number of secured loans | MortgageLoan | 12 | 16 | |
Secured loans, principal | $ | $ 7,642,000 | $ 12,839,000 | |
Single Family Property-NonOwner Occupied [Member] | |||
Loans Details [Line Items] | |||
Number of secured loans | MortgageLoan | 20 | 16 | |
Secured loans, principal | $ | $ 22,987,000 | $ 23,054,000 |
Loans - Secured Loans Distribut
Loans - Secured Loans Distributed within California (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 86,203 | $ 97,438 | $ 130,018 | |
Loans - percent | 100.00% | 100.00% | ||
San Francisco [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 32,908 | $ 26,026 | ||
Loans - percent | 38.20% | 26.70% | ||
San Mateo [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 17,221 | $ 23,122 | ||
Loans - percent | 20.00% | 23.70% | ||
Alameda [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 3,349 | $ 4,212 | ||
Loans - percent | 3.90% | 4.20% | ||
Santa Clara [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 6,281 | $ 3,789 | ||
Loans - percent | 7.30% | 3.90% | ||
Solano [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 3,560 | |||
Loans - percent | 3.70% | |||
Marin [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 513 | $ 849 | ||
Loans - percent | 0.60% | 0.90% | ||
Napa [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 548 | $ 559 | ||
Loans - percent | 0.60% | 0.60% | ||
Contra Costa [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 308 | $ 314 | ||
Loans - percent | 0.30% | 0.20% | ||
San Francisco Bay Area [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | [1] | $ 61,128 | $ 62,431 | |
Loans - percent | [1] | 70.90% | 63.90% | |
Sacramento [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 3,300 | |||
Loans - percent | 3.40% | |||
Santa Cruz [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 1,376 | $ 2,121 | ||
Loans - percent | 1.60% | 2.10% | ||
Amador [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 719 | $ 737 | ||
Loans - percent | 0.80% | 0.80% | ||
Monterey [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 193 | $ 489 | ||
Loans - percent | 0.20% | 0.50% | ||
Mariposa [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 51 | $ 56 | ||
Loans - percent | 0.10% | 0.10% | ||
Other Northern California [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 2,339 | $ 6,703 | ||
Loans - percent | 2.70% | 6.90% | ||
Northern California [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 63,467 | $ 69,134 | ||
Loans - percent | 73.60% | 70.80% | ||
Los Angeles [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 14,623 | $ 18,236 | ||
Loans - percent | 17.00% | 18.70% | ||
Santa Barbara [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 2,085 | $ 2,099 | ||
Loans - percent | 2.40% | 2.20% | ||
Orange [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 648 | $ 654 | ||
Loans - percent | 0.80% | 0.70% | ||
Los Angeles And Coastal [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 17,356 | $ 20,989 | ||
Loans - percent | 20.20% | 21.60% | ||
San Bernardino [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 5,380 | $ 5,900 | ||
Loans - percent | 6.20% | 6.10% | ||
Riverside [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 1,415 | |||
Loans - percent | 1.50% | |||
Other Southern California [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 5,380 | $ 7,315 | ||
Loans - percent | 6.20% | 7.60% | ||
Southern California [Member] | ||||
Loans (Details) - Secured Loans by Property Type [Line Items] | ||||
Secured loans, principal | $ 22,736 | $ 28,304 | ||
Loans - percent | 26.40% | 29.20% | ||
[1] | Includes Silicon Valley |
Loans - Secured Loans Scheduled
Loans - Secured Loans Scheduled Maturities (Details) $ in Thousands | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($) |
Receivables [Abstract] | |||
2020, Loan | Loan | 20 | ||
2021, Loan | Loan | 13 | ||
2022, Loan | Loan | 4 | ||
2023, Loan | Loan | 2 | ||
2024, Loan | Loan | 2 | ||
Thereafter, Loan | Loan | 2 | ||
Total future maturities, Loan | Loan | 43 | ||
Matured as of December 31, 2019, Loan | Loan | 4 | ||
Total principal, secured loans, Loan | Loan | 47 | 56 | |
2020, Principal | $ | $ 44,925 | ||
2021, Principal | $ | 15,772 | ||
2022, Principal | $ | 4,298 | ||
2023, Principal | $ | 3,813 | ||
2024, Principal | $ | 1,185 | ||
Thereafter, Principal | $ | 3,900 | ||
Total future maturities, Principal | $ | 73,893 | ||
Matured as of December 31, 2019, Principal | $ | 12,310 | ||
Total principal, secured loans, Principle | $ | $ 86,203 | $ 97,438 | $ 130,018 |
2020, Percent | 52.00% | ||
2021, Percent | 18.00% | ||
2022, Percent | 5.00% | ||
2023, Percent | 5.00% | ||
2024, Percent | 1.00% | ||
Thereafter, Percent | 5.00% | ||
Total future maturities, Percent | 86.00% | ||
Matured as of December 31, 2019, Percent | 14.00% | ||
Total principal, secured loans, Percent | 100.00% |
Loans - Secured Loans Past Matu
Loans - Secured Loans Past Maturity (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) | |
Loans Details Secured Loans In Nonaccrual Status [Line Items] | |||
Number of secured loans | MortgageLoan | 47 | 56 | |
Secured loans, principal | $ 86,203 | $ 97,438 | $ 130,018 |
Accrued interest | $ 711 | $ 701 | |
Matured Loans [Member] | |||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | |||
Number of secured loans | MortgageLoan | 4 | ||
Secured loans, principal | $ 12,932 | ||
Accrued interest | $ 597 | ||
Principal past maturity as percent of total principal | 14.00% | ||
Principal [Member] | Matured Loans [Member] | |||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | |||
Secured loans, principal | $ 12,310 | ||
Advances [Member] | Matured Loans [Member] | |||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | |||
Secured loans, principal | $ 25 |
Loans - Secured Loans Summarize
Loans - Secured Loans Summarized by Payment Delinquency (Details) $ in Thousands | Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) |
Past Due | |||
Delinquent loans, number | MortgageLoan | 47 | 56 | |
Loans, Principal | $ | $ 86,203 | $ 97,438 | $ 130,018 |
Past Due 30-89 Days [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 1 | ||
Loans, Principal | $ | $ 450 | ||
Past Due 90-179 Days [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 1 | 1 | |
Loans, Principal | $ | $ 5,355 | $ 3,300 | |
Past Due 180 Days or More [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 3 | ||
Loans, Principal | $ | $ 6,955 | ||
Past Due [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 4 | 2 | |
Loans, Principal | $ | $ 12,310 | $ 3,750 | |
Current [Member] | |||
Past Due | |||
Delinquent loans, number | MortgageLoan | 43 | 54 | |
Loans, Principal | $ | $ 73,893 | $ 93,688 |
Loans - Payments in Arrears for
Loans - Payments in Arrears for Non-Performing Secured Loans Principal and Accrued Interest Receivable (Details) $ in Thousands | Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Past Due | |||
Loans, Principal | $ 86,203 | $ 97,438 | $ 130,018 |
Loan, Accrued interest receivable | $ 711 | 701 | |
Past Due 30-89 Days [Member] | |||
Past Due | |||
Loans, Principal | 450 | ||
Past Due 90-179 Days [Member] | |||
Past Due | |||
Loans, number | MortgageLoan | 1 | ||
Loans, Principal | $ 5,355 | 3,300 | |
Loan, Accrued interest receivable | 114 | ||
Total past due | $ 5,469 | ||
Past Due 180 Days or More [Member] | |||
Past Due | |||
Loans, number | MortgageLoan | 3 | ||
Loans, Principal | $ 6,955 | ||
Loan, Accrued interest receivable | 184 | ||
Total past due | $ 7,139 | ||
Past Due [Member] | |||
Past Due | |||
Loans, number | MortgageLoan | 4 | ||
Loans, Principal | $ 12,310 | $ 3,750 | |
Loan, Accrued interest receivable | 298 | ||
Total past due | $ 12,608 |
Loans - Secured Loans in Non-Ac
Loans - Secured Loans in Non-Accrual Status (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan | Dec. 31, 2017USD ($) | |
Loans Details Secured Loans In Nonaccrual Status [Line Items] | |||
Number of secured loans | MortgageLoan | 47 | 56 | |
Secured loans, principal | $ 86,203 | $ 97,438 | $ 130,018 |
Accrued interest | $ 711 | $ 701 | |
Non-accrual Status [Member] | |||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | |||
Number of secured loans | MortgageLoan | 3 | ||
Secured loans, principal | $ 7,164 | ||
Accrued interest | 184 | ||
Foregone interest | 298 | ||
Principal [Member] | Non-accrual Status [Member] | |||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | |||
Secured loans, principal | 6,955 | ||
Advances [Member] | Non-accrual Status [Member] | |||
Loans Details Secured Loans In Nonaccrual Status [Line Items] | |||
Secured loans, principal | $ 25 |
Loans - Secured Loans Designate
Loans - Secured Loans Designated as Impaired Loans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | ||
Secured Loans Designated as Impaired Loans [Abstract] | |||
Principal | $ 12,310 | $ 3,300 | |
Recorded investment | [1] | 12,931 | 3,388 |
Impaired loans without allowance | $ 12,931 | $ 3,388 | |
Number of Loans | Loan | 4 | 1 | |
LTV, at origination | [2] | 68.00% | 36.10% |
[1] | Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes. During the course of review of appraisals ordered in the fourth quarter of 2019, one loan with principal of approximately $2,939,000 was determined to have an LTV of 87% at December 31, 2019. | ||
[2] | During the course of review of appraisals ordered in the fourth quarter of 2019, one loan with principal of approximately $2,939,000 was determined to have an LTV of 87% at December 31, 2019. |
Loans - Secured Loans Designa_2
Loans - Secured Loans Designated as Impaired Loans (Parenthetical) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Loans Details [Line Items] | |||
Principal | $ 12,310,000 | $ 3,300,000 | |
LTV, at origination | [1] | 68.00% | 36.10% |
LTV of 87% [Member] | |||
Loans Details [Line Items] | |||
Principal | $ 2,939,000 | ||
LTV, at origination | 87.00% | ||
[1] | During the course of review of appraisals ordered in the fourth quarter of 2019, one loan with principal of approximately $2,939,000 was determined to have an LTV of 87% at December 31, 2019. |
Loans - Impaired Loans - Averag
Loans - Impaired Loans - Average Balances and Interest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Loans - Average Balances and Interest Income [Abstract] | ||
Average recorded investment | $ 8,160 | $ 5,987 |
Interest income recognized | 298 | 257 |
Interest income received in cash | $ 284 | $ 210 |
Summary of REO Transactions and
Summary of REO Transactions and Valuation Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
'Real Estate Owned REO Details [Line Items] | ||
Balance, beginning of period | $ 4,153 | |
Valuation allowance, balance, beginning of period | (3,547) | $ (4,079) |
Valuation allowance adjustment | (631) | 220 |
Valuation allowance, Disposition | 939 | 312 |
Balance, end of period | 3,252 | 4,153 |
Valuation allowance, Balance, end of period | (3,239) | (3,547) |
REO Balance[Member] | ||
'Real Estate Owned REO Details [Line Items] | ||
Balance, beginning of period | 7,700 | 11,093 |
Additions | 124 | |
Dispositions | (1,209) | (3,517) |
Balance, end of period | 6,491 | 7,700 |
REO, Net [Member] | ||
'Real Estate Owned REO Details [Line Items] | ||
Balance, beginning of period | 4,153 | 7,014 |
Additions | 124 | |
Valuation allowance adjustment | (631) | 220 |
Dispositions | (270) | (3,205) |
Balance, end of period | $ 3,252 | $ 4,153 |
Real Estate Owned (REO) - Addit
Real Estate Owned (REO) - Additional Information (Details) | Oct. 11, 2019USD ($) | Dec. 31, 2019USD ($)aProperty | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)aProperty | Dec. 31, 2018USD ($)Property |
'Real Estate Owned REO Details [Line Items] | |||||
Carrying value of real estate properties | $ 3,252,000 | $ 3,252,000 | $ 4,153,000 | ||
Valuation adjustment | (631,000) | 345,000 | |||
REO - sales, net | 281,000 | 3,321,000 | |||
Rental operations, net | 0 | 0 | |||
Occupancy rents received excluding storage and sign rents | 58,000 | $ 58,000 | 57,000 | ||
Marin County [Member] | |||||
'Real Estate Owned REO Details [Line Items] | |||||
Valuation adjustment | $ 631,000 | $ 631,000 | |||
Proceeds from sale of real estate | $ 270,300 | ||||
Los Angeles [Member] | Condominium Complex [Member] | |||||
'Real Estate Owned REO Details [Line Items] | |||||
Gains (Losses) on Sales of Other Real Estate (in Dollars) | 113,000 | ||||
REO - sales, net | $ 1,928,000 | ||||
Partnership Property Held For Sale [Member] | |||||
'Real Estate Owned REO Details [Line Items] | |||||
Number of real estate properties | Property | 4 | 4 | |||
Carrying value of real estate properties | $ 3,252,000 | $ 3,252,000 | |||
Partnership Property Held For Sale [Member] | San Francisco County [Member] | Condominium Complex [Member] | |||||
'Real Estate Owned REO Details [Line Items] | |||||
Number of real estate properties | Property | 3 | 3 | |||
Partnership Property Held For Sale [Member] | Fresno County California [Member] | Home Subdivision [Member] | |||||
'Real Estate Owned REO Details [Line Items] | |||||
Number of Real Estate Properties | Property | 1 | 1 | |||
Partnership Property Held For Sale [Member] | Stanislaus County [Member] | Commercial Property [Member] | |||||
'Real Estate Owned REO Details [Line Items] | |||||
Area of Real Estate Property (in Acres) | a | 14 | 14 | |||
Partnership Property Held For Sale [Member] | Marin County [Member] | Residential Single Family [Member] | |||||
'Real Estate Owned REO Details [Line Items] | |||||
Area of Real Estate Property (in Acres) | a | 13 | 13 | |||
Sold [Member] | Los Angeles [Member] | Condominium Complex [Member] | |||||
'Real Estate Owned REO Details [Line Items] | |||||
Number of Real Estate Properties | Property | 6 |
Real Estate Owned (REO) - Summa
Real Estate Owned (REO) - Summary of REO, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Real Estate [Abstract] | ||
Holding costs, net of other income | $ (53) | $ (169) |
Gains/(losses) on sales | 14 | 113 |
Valuation adjustments | (631) | 345 |
REO, net | $ (670) | $ 289 |
Commitments and Contingencies -
Commitments and Contingencies - Scheduled Capital Account Withdrawal Requests (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Partners Capital Account Withdrawals [Abstract] | |
2020 | $ 16,016 |
2021 | 10,426 |
2022 | 7,386 |
2023 | 4,510 |
2024 | 1,690 |
Thereafter | 131 |
Total | $ 40,159 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Mar. 27, 2020USD ($)Loan | Mar. 26, 2020USD ($)Property | Dec. 31, 2019USD ($)MortgageLoan | Dec. 31, 2018USD ($)MortgageLoan |
Subsequent Event [Line Items] | ||||
REO - sales, net | $ (281,000) | $ (3,321,000) | ||
Number of secured loans | MortgageLoan | 47 | 56 | ||
Mortgage loan principal balance | $ 385,000 | |||
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Number of units in real estate property sold | Property | 1 | |||
REO - sales, net | $ 197,000 | |||
Gain on sale of property | $ 68,000 | |||
Number of secured loans | Loan | 1 | |||
Mortgage loan principal balance | $ 2,300,000 |