10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(Amendment No. 1)

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from____________to____________

Commission file number: 000-55776

RW HOLDINGS NNN REIT, INC.

(Exact name of registrant as specified in its charter)

Maryland	47-4156046
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
3090 Bristol Street, Suite 550, Costa Mesa, CA	92626
(Address of principal executive offices)	(Zip Code)

(855) 742-4862

(Registrant’s telephone number, including area code:)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ¨	Accelerated filer ¨
Non-accelerated filer ¨	Smaller reporting company x
(Do not check if a smaller reporting company)
	Emerging growth company x

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of August 8, 2018, there were 11,529,291 shares of Class C common stock outstanding and 3,117 shares of Class S common stock outstanding.

EXPLANATORY NOTE

Due to a clerical error, the initial filing of the registrant’s Form 10-Q for the quarterly period ended June 30, 2018 (the “Initial 10-Q Filing”) included an incorrect number of shares of Class C common stock outstanding as of August 8, 2018 on the above cover page. This amended Form 10-Q is being filed solely to correct that error.

No other changes have been made to the Initial 10-Q Filing. This amended Form 10-Q does not reflect events that may have occurred subsequent to the filing of the Initial 10-Q Filing and, except as noted above, does not modify or update in any way disclosures made in the Initial 10-Q Filing.

PART II. OTHER INFORMATION

Item 6. Exhibits

The exhibits listed in the Exhibit Index below are included herewith or incorporated herein by reference.

Exhibit	Description
2.1+	Agreement for Purchase and Sale of 2210-2260 Martin Avenue, Santa Clara, California, dated August 25, 2017, between San Tomas Income Partners LLC and Rich Uncles NNN Operating Partnership, LP (incorporated by reference to Exhibit 2.1 to the Company’s Current Report on Form 8-K (File No. 333-205684) filed with the Securities and Exchange Commission on October 4, 2017)
2.2+	Purchase Agreement, dated December 18, 2017, between Reasons Aviation, LLC and Rich Uncles NNN Operating Partnership, LP (incorporated by reference to Exhibit 2.1 to our Current Report on Form 8-K/A (File No. 000-55776) filed with the Securities and Exchange Commission on January 8, 2018)
3.1+	Articles of Amendment and Restatement of the Articles of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s Pre-Effective Amendment No. 8 to the Registration Statement on Form S-11 (File No. 333-205684) filed with the Securities and Exchange Commission on May 23, 2016)
3.2+	Articles of Amendment to the Articles of Incorporation of RW Holdings NNN REIT, Inc. to increase the authorized number of shares of our stock (incorporated by reference to Exhibit 3.2 to our Quarterly Report on Form 10-Q (File No. 000-55776) filed with the Securities and Exchange Commission on August 15, 2017)
3.3+	Articles of Amendment to the Articles of Incorporation of RW Holdings NNN REIT, Inc. to change the name and designation of our stock (incorporated by reference to Exhibit 3.3 to our Quarterly Report on Form 10-Q (File No. 000-55776) filed with the Securities and Exchange Commission on August 15, 2017)
3.4+	Articles of Amendment to the Articles of Incorporation of RW Holdings NNN REIT, Inc. to change our name to RW Holdings NNN REIT, Inc. (incorporated by reference to Exhibit 3.4 to our Quarterly Report on Form 10-Q (File No. 000-55776) filed with the Securities and Exchange Commission on August 15, 2017)
3.5+	Articles Supplementary of RW Holdings NNN REIT, Inc. reclassifying 100,000,000 unissued shares of Class C common stock as Class S common stock (incorporated by reference to Exhibit 3.5 to our Quarterly Report on Form 10-Q (File No. 000-55776) filed with the Securities and Exchange Commission on August 15, 2017)
3.6+	Certificate of Notice, dated August 11, 2017 (incorporated by reference to Exhibit 3.4 to our Current Report on Form 8-K (File No. 000-55776), filed August 17, 2017)
3.7+	Bylaws of RW Holdings NNN REIT, Inc. (incorporated by reference to Exhibit 3.2 to our Registration Statement on Form S-11 (File No. 333-205684) filed with the Securities and Exchange Commission on July 15, 2015)
10.1+	Amendment No. 1 to Second Amended and Restated Advisory Agreement
31.1+	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2+	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3*	Certification of the Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.4*	Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1+	Certifications of the Principal Executive Officer and Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL INSTANCE DOCUMENT
101.SCH	XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT
101.CAL	XBRL TAXONOMY EXTENSION CALCULATION LINKBASE
101.DEF	XBRL TAXONOMY EXTENSION DEFINITION LINKBASE
101.LAB	XBRL TAXONOMY EXTENSION LABELS LINKBASE
101.PRE	XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE
*	Filed herewith.
+	Previously filed or furnished with, or incorporated by reference in, the Initial 10-Q Filing.

SIGNATURES

Pursuant to the requirements Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Quarterly Report on Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

RW Holdings NNN REIT, Inc.
(Registrant)
By:	/s/ HAROLD HOFER
Name:	Harold Hofer
Title:	Chief Executive Officer (principal executive officer)
By:	/s/ RAYMOND J. PACINI
Name:	Raymond J. Pacini
Title:	Chief Financial Officer (principal financial officer)

Date: August 16, 2018

EX-31.3

EXHIBIT 31.3

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Harold Hofer, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A (Amendment No. 1) of the registrant, RW Holdings NNN REIT, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Date: August 16, 2018	/s/ HAROLD HOFER
	Name:	Harold Hofer
	Title:	Chief Executive Officer
		(Principal Executive Officer)

EX-31.4

EXHIBIT 31.4

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Raymond J. Pacini, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A (Amendment No. 1) of the registrant, RW Holdings NNN REIT, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Date: August 16, 2018	/s/ RAYMOND J. PACINI
	Name:	Raymond J. Pacini
	Title:	Chief Financial Officer
		(Principal Financial Officer)

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Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 08, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	true
Amendment Description	Due to a clerical error, the initial filing of the registrant’s Form 10-Q for the quarterly period ended June 30, 2018 (the “Initial 10-Q Filing”) included an incorrect number of shares of Class C common stock outstanding as of August 8, 2018 on the above cover page. This amended Form 10-Q is being filed solely to correct that error. No other changes have been made to the Initial 10-Q Filing. This amended Form 10-Q does not reflect events that may have occurred subsequent to the filing of the Initial 10-Q Filing and, except as noted above, does not modify or update in any way disclosures made in the Initial 10-Q Filing.
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Entity Registrant Name	RW Holdings NNN REIT, Inc.
Entity Central Index Key	0001645873
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Common Class C [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		11,529,291
Common Class S [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		3,117

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Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Real estate investments:
Land	$ 26,314,917	$ 21,878,768
Buildings and improvements	134,483,836	108,590,813
Tenant origination and absorption costs	12,234,133	8,340,774
Total investments in real estate property	173,032,886	138,810,355
Accumulated depreciation and amortization	(6,601,484)	(3,574,739)
Total investments in real estate property, net	166,431,402	135,235,616
Investments in unconsolidated entities	14,164,340	14,524,022
Real estate investments, net	180,595,742	149,759,638
Cash and cash equivalents	3,947,118	3,238,173
Restricted cash	334,471	944,582
Tenant receivables, net	2,117,495	1,263,095
Above-market lease intangibles, net	632,770	681,293
Due from affiliates (Note 8)	26,448	34,194
Purchase and other deposits	285,360	40,000
Prepaid expenses and other assets	1,137,758	1,104,573
Interest rate swap derivatives	326,710	7,899
Total assets	189,403,872	157,073,447
Liabilities and Stockholders' Equity
Mortgage notes payable, net	85,501,455	60,487,303
Unsecured credit facility, net	0	12,000,000
Accounts payable, accrued and other liabilities	2,543,383	2,411,484
Below-market lease intangibles, net	2,832,577	1,584,229
Due to affiliates (Note 8)	206,717	907,377
Share repurchases payable	889,347	386,839
Interest rate swap derivatives	98,240	0
Total liabilities	92,071,719	77,777,232
Commitments and contingencies (Note 9)
Redeemable common stock	3,550,589	46,349
Preferred stock, $0.001 par value, 50,000,000 shares authorized, no shares issued and outstanding	0	0
Additional paid-in-capital	104,138,416	85,324,921
Cumulative distributions and net losses	(10,368,038)	(6,083,896)
Total stockholders' equity	93,781,564	79,249,866
Total liabilities and stockholders' equity	189,403,872	157,073,447
Common Class C [Member]
Liabilities and Stockholders' Equity
Common Stock, Value, Issued	11,183	8,838
Total stockholders' equity	11,183	8,838
Common Class S [Member]
Liabilities and Stockholders' Equity
Common Stock, Value, Issued	3	3
Total stockholders' equity	$ 3	$ 3

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Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Class C [Member]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares, Issued	11,182,489	8,838,002
Common Stock, Shares, Outstanding	11,182,489	8,838,002
Common Class S [Member]
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	3,098	3,032
Common Stock, Shares, Outstanding	3,098	3,032

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Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Rental income	$ 3,651,032	$ 1,366,901	$ 6,580,425	$ 2,063,595
Tenant reimbursements	732,934	362,141	1,261,519	525,646
Total revenues	4,383,966	1,729,042	7,841,944	2,589,241
Expenses:
Fees to affiliates (Note 8)	477,915	196,856	879,230	308,154
General and administrative	836,996	831,179	1,449,183	2,018,023
Depreciation and amortization	1,712,469	725,419	3,026,745	1,156,278
Interest expense	1,203,260	438,168	2,293,876	570,005
Property expenses	701,244	375,963	1,194,222	555,741
Total expenses	4,931,884	2,567,585	8,843,256	4,608,201
Less: Expenses reimbursed/fees waived by Sponsor or affiliates (Note 8)	(293,939)	(722,118)	(653,453)	(1,437,969)
Net expenses	4,637,945	1,845,467	8,189,803	3,170,232
Other income:
Interest income	4,244	613	7,920	888
Income from investments in unconsolidated entities	38,606	159,399	93,485	167,356
Total other income	42,850	160,012	101,405	168,244
Net (loss) income	$ (211,129)	$ 43,587	$ (246,454)	$ (412,747)
Net (loss) income per share, basic and diluted (Note 2)	$ (0.02)	$ 0.01	$ (0.02)	$ (0.09)
Weighted-average number of common shares outstanding, basic and diluted	10,603,387	5,295,203	10,054,089	4,381,066
Dividends declared per common share	$ 0.176	$ 0.175	$ 0.410	$ 0.350

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Condensed Consolidated Statement of Stockholders' Equity - 6 months ended Jun. 30, 2018 - USD ($)	Total	Common Class C [Member]	Common Class S [Member]	Additional Paid-in Capital [Member]	Cumulative Distributions and Net Losses [Member]
Balance at Dec. 31, 2017	$ 79,249,866	$ 8,838	$ 3	$ 85,324,921	$ (6,083,896)
Balance (in shares) at Dec. 31, 2017		8,838,002	3,032
Issuance of common stock	27,220,462	$ 2,711	$ 0	27,217,751	0
Issuance of common stock (in shares)		2,710,514	66
Common stock awarded for services	81,405	$ 8	$ 0	81,397	0
Common stock awarded for services (in Shares)		8,100	0
Offering costs	(816,297)	$ 0	$ 0	(816,297)	0
Reclassification to redeemable common stock	(4,006,748)	0	0	(4,006,748)	0
Repurchase of common stock	(3,662,982)	$ (374)	0	(3,662,608)	0
Repurchase of common stock (in shares)		(374,127)
Dividends declared	(4,037,688)			0	(4,037,688)
Net loss	(246,454)	0	0	0	(246,454)
Balance at Jun. 30, 2018	$ 93,781,564	$ 11,183	$ 3	$ 104,138,416	$ (10,368,038)
Balance (in shares) at Jun. 30, 2018		11,182,489	3,098

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Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash Flows from Operating Activities:
Net loss	$ (246,454)	$ (412,747)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	3,026,745	1,156,278
Stock compensation expense	81,405	65,000
Deferred rents	(609,000)	(176,513)
Amortization of deferred financing costs	518,391	36,504
Amortization of above-market lease	48,523	35,248
Amortization of below-market leases	(169,135)	(13,758)
Unrealized (gain) loss on interest rate swap valuation	(220,571)	104,633
Income from investments in unconsolidated entities	(93,485)	(167,356)
Distributions from investments in unconsolidated entities	453,167	135,896
Change in operating assets and liabilities:
Tenant receivables	(245,400)	(272,112)
Due from affiliates	7,746	79,219
Prepaid expenses and other assets	(14,042)	(5,576)
Accounts payable, accrued and other liabilities	(509,586)	635,109
Due to affiliates	(710,290)	231,737
Net cash provided by operating activities	1,318,014	1,431,562
Cash Flows from Investing Activities:
Acquisition of real estate investments	(31,103,595)	(49,134,241)
Payment of acquisition fees to affiliate	(930,000)	(1,771,482)
Refundable purchase deposits	(250,000)	(1,500,000)
Additions to real estate investments	(749,095)	(193,191)
Net cash used in investing activities	(33,032,690)	(52,598,914)
Cash Flows from Financing Activities:
Borrowings from unsecured credit facility	9,000,000	33,140,000
Repayments of unsecured credit facility	(21,000,000)	(34,065,618)
Proceeds from mortgage notes payable	37,845,000	19,454,988
Principal payments on mortgage notes payable	(12,442,642)	(86,898)
Refundable loan deposits	(35,360)	(125,100)
Payments of deferred financing costs	(885,740)	(541,691)
Proceeds from issuance of common stock and investor deposits	24,551,789	36,295,673
Payments of offering costs	(829,325)	(1,200,469)
Repurchase of common stock	(3,662,982)	(723,904)
Dividends paid to common stockholders	(727,230)	(252,319)
Net cash provided by financing activities	31,813,510	51,894,662
Net increase in cash, cash equivalents and restricted cash	98,834	727,310
Cash, cash equivalents and restricted cash, beginning of period	4,182,755	3,677,373
Cash, cash equivalents and restricted cash, end of period	4,281,589	4,404,683
Supplemental Disclosure of Cash Flow Information:
Cash paid for interest	1,852,121	350,750
Supplemental Schedule of Noncash Investing and Financing Activities:
Reclassification to redeemable common stock	4,006,748	234,978
Increase in share repurchases payable	502,508	293,209
Purchase deposits applied to acquisition of real estate	0	500,000
Accrued dividends	643,202	0
Dividends paid to common stockholders through common stock issuances pursuant to the distribution reinvestment plan	2,668,673	1,059,184
Payable to seller for acquisition of real estate investment	$ 0	$ 117,803

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BUSINESS AND ORGANIZATION

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Business Description and Basis of Presentation [Text Block]

NOTE 1. BUSINESS AND ORGANIZATION

RW Holdings NNN REIT, Inc. (the “Company”) was incorporated on May 14, 2015 as a Maryland corporation. The Company was originally incorporated under the name Rich Uncles Real Estate Investment Trust, Inc., but changed its name on October 19, 2015 to Rich Uncles NNN REIT, Inc. and again on August 14, 2017 to its present name RW Holdings NNN REIT, Inc. The Company has the authority to issue 450,000,000 shares of stock, consisting of 50,000,000 shares of preferred stock, $0.001 par value per share, 300,000,000 shares of Class C common stock, $0.001 par value per share, and 100,000,000 shares of Class S common stock, $0.001 par value per share. The Company was formed to primarily invest, directly or indirectly through investments in real estate owning entities, in single-tenant income-producing corporate properties located in the United States, which are leased to creditworthy tenants under long-term net leases. The Company’s goal is to generate current income for investors and long-term capital appreciation in the value of its properties.

The Company holds its investments in real property through special purpose wholly-owned limited liability companies, which are wholly-owned subsidiaries of Rich Uncles NNN Operating Partnership, LP, a Delaware limited partnership (the “Operating Partnership) or through the Operating Partnership. The Operating Partnership was formed on January 28, 2016. The Company is the sole general partner of, and owns a 99% partnership interest in, the Operating Partnership. Rich Uncles NNN LP, LLC, a Delaware limited liability company formed on May 13, 2016 (“NNN LP”), owns the remaining 1% partnership interest in the Operating Partnership and is the sole limited partner. NNN LP is wholly-owned by the Company.

The Company is externally managed by its advisor, Rich Uncles NNN REIT Operator, LLC (the “Advisor”), a Delaware limited liability company, pursuant to an advisory agreement, as amended (the “Advisory Agreement”). The Advisor is wholly-owned by the Company’s sponsor, BrixInvest, LLC (f/k/a Rich Uncles, LLC, the “Sponsor”), a Delaware limited liability company whose members include Harold Hofer and Ray Wirta, the Company’s Chief Executive Officer and Chairman, respectively. On each of June 24, 2015 and December 31, 2015, the Company issued 10,000 shares of its Class C common stock to the Sponsor for a purchase price of $10.00 per share.

On July 15, 2015, the Company filed a registration statement on Form S-11 with the U.S. Securities and Exchange Commission (the “SEC”) to register an initial public offering of a maximum of 90,000,000 shares of common stock for sale to the public (the “Primary Offering”). The Company also registered a maximum of 10,000,000 shares of common stock pursuant to the Company’s distribution reinvestment plan (the “Registered DRP Offering” and, together with the Primary Offering, the “Registered Offering”). The SEC declared the Company’s registration statement effective on June 1, 2016 and on July 20, 2016, the Company began offering shares of common stock to the public. Pursuant to its securities offering registered with the SEC, the Company sells shares of its “Class C” common stock directly to investors, with a minimum investment in shares of $500. Commencing in August 2017, the Company began selling shares of its Class C common stock only to U.S. persons as defined under Rule 903 promulgated under the Securities Act of 1933, as amended (the “Securities Act”).

On August 11, 2017, the Company began offering up to 100,000,000 shares of its Class S common stock exclusively to non-U.S. Persons as defined under Rule 903 promulgated under the Securities Act pursuant to an exemption from the registration requirements of the Securities Act and in accordance with Regulation S of the Securities Act (the “Class S Offering” and, together with the Registered Offering, the “Offerings”). The Class S common stock has similar features and rights as the Class C common stock, including with respect to voting and liquidation except that the Class S common stock offered in the Class S offering may be sold through brokers or other persons who may be paid upfront and deferred selling commissions and fees.

On January 18, 2018, the Company’s board of directors approved and established an estimated net asset value (“NAV”) per share of the Company’s common stock of $10.05. Effective January 19, 2018, the purchase price per share of the Company’s common stock in the Offerings increased from $10.00 to $10.05.

Through June 30, 2018, the Company had sold 11,765,689 shares of Class C common stock in the Registered Offering, including 584,624 shares of Class C common stock sold under its Registered DRP Offering, for aggregate gross offering proceeds of $117,771,558, and 3,098 shares of Class S common stock in the Class S Offering, including 99 shares of Class S common stock sold under its dividend reinvestment plan applicable to Class S common stock, for aggregate gross offering proceeds of $30,989.

As of June 30, 2018, the Company had invested in (i) eight retail properties, seven office properties, five industrial properties, and one parcel of land related to a previous acquisition (ii) one tenant-in-common real estate investment in which the Company has an approximate 72.7% interest and (iii) one real estate investment in an affiliated REIT in which it has an approximate 4.3% interest.

The Company continues to offer shares of common stock under its Offerings. In some states, the Company will need to renew the registration statement for the Registered Offering annually or file a new registration statement to continue the Registered Offering. The Company may terminate the Registered Offering at any time.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Principles of Consolidation

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and the rules and regulations of the SEC. Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, which is responsible for their integrity and objectivity. These unaudited condensed consolidated financial statements should be read in conjunction with the December 31, 2017 audited consolidated financial statements included in the Company’s Form 10-K filed with the SEC on April 3, 2018.

The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which are normal and recurring, necessary to fairly state its financial position, results of operations and cash flows. All significant intercompany balances and transactions are eliminated in consolidation. The December 31, 2017 balance sheet included herein was derived from the audited financial statements but does not include all disclosures or notes required by GAAP for complete financial statements.

Use of Estimates

The preparation of the condensed consolidated financial statements and the accompanying notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates.

Fair Value Disclosures

The fair value for certain financial instruments is derived using valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value:

Cash and cash equivalents, restricted cash, tenant receivables, purchase and other deposits, prepaid expenses and other assets, accounts payable, accrued and other liabilities, due to affiliates and share repurchases payable:  These balances approximate their fair values due to the short maturities of these items.

Derivative Instruments:  The Company’s derivative instruments are presented at fair value in the accompanying condensed consolidated balance sheet. The valuation of these instruments is determined using a proprietary model that utilizes observable inputs. As such, the Company classifies these inputs as Level 2 inputs. The proprietary model uses the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps are estimated using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit risks to the contracts, are incorporated in the fair values to account for potential nonperformance risk.

Unsecured Credit Facility:  The fair value of the Company’s Unsecured Credit Facility (as defined in Note 6) approximates its carrying value as the interest rates and other terms are comparable to those available in the market place for a similar credit facility.

Mortgage notes payable:  The fair value of the Company’s mortgage notes payable is estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs.

Restricted Cash

Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing and for on-site and tenant improvements.

Pursuant to lease agreements, the Company has obligations to pay for $560,740 in site and tenant improvements to be incurred by tenants as of June 30, 2018, including a 72.7% share of the tenant improvements for the Santa Clara property. At June 30, 2018 and December 31, 2017, the Company had $334,471 and $944,582, respectively, of restricted cash held to fund the improvements.

Other Comprehensive Income (Loss)

For all periods presented, other comprehensive income (loss) is the same as net income (loss).

Per Share Data

Basic earnings per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock equals basic earnings per share of common stock as there were no potentially dilutive securities outstanding for the three and six months ended June 30, 2018 and 2017.

For the three and six months ended June 30, 2018, the Company has presented net income (loss) per share amounts on the accompanying statements of operations for Class C and S share classes as a combined common share class. Application of the two-class method for allocating income (loss) in accordance with the provisions of Accounting Standards Codification (“ASC”) 260, Earnings per Share, would have resulted in a net loss per share of $(0.02) for Class C shares and $(0.07) for Class S shares for the three months ended June 30, 2018 and a net loss per share of $(0.02) for Class C shares and $(0.11) for Class S shares for the six months ended June 30, 2018. The differences in net income (loss) per share if allocated under this method primarily reflects the lower effective dividends per share for Class S shareholders as a result of the payment of the deferred commission to the Class S distributor of these shares, and also reflects the impact of the timing of the declaration of the dividends relative to the time the shares were outstanding. The Company began offering shares of Class S common stock exclusively to non-U.S. Persons in August 2017.

Since the Company’s board of directors declared distributions for four months (December 2017 through March 2018) during the three months ended March 31, 2018 in order to transition to a process of declaring dividends prior to the beginning of the month, the dividends declared per common share for the six months ended June 30, 2018 reflects seven months of dividends rather than six months of dividends.

Recent Accounting Pronouncements

New Accounting Standards Issued and Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09, as amended, requires an entity to use a five-step model to determine when to recognize revenue from customer contracts in an effort to increase consistency and comparability throughout global capital markets and across industries. ASU 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry specific guidance throughout the Industry Topics of the Codification. This ASU requires an entity to recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also to provide certain additional disclosures. The Company evaluated each of its revenue streams and their related accounting policies under ASU 2014-09. Rental income and tenant reimbursements earned from leasing the Company’s real estate properties are excluded from ASU 2014-09 and will be assessed with the adoption of the lease ASU as discussed below. The Company adopted ASU 2014-09 beginning January 1, 2018. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial position or consolidated results of operations. However, future real estate sales contracts will qualify as sales to noncustomers. The Company will assess and implement any future recognition of gains or losses on sales of properties according to the provisions of ASU 2014-09.

New Accounting Standards Recently Issued and Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The amendments in ASU 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. Under ASU 2016-02, the accounting applied by a lessor is largely unchanged from that applied under Topic 840 leases. The large majority of operating leases shall remain classified as operating leases and lessors should continue to recognize rental income for those leases on a straight-line basis over the lease term. ASU 2016-02 may impact the timing, recognition, presentation and disclosures related to the Company’s tenant reimbursements earned from leasing its real estate properties, although the Company does not expect a significant impact. ASU 2016-02 is effective for the Company beginning January 1, 2019. The Company expects to adopt the practical expedients available for implementation under ASU 2016-02. By adopting the practical expedients, the Company will not be required to reassess (i) whether an expired or existing contract meets the definition of a lease and (ii) the lease classification at the adoption date for expired or existing leases. ASU 2016-02 will also require new disclosures within the notes to its consolidated financial statements. The Company does not expect the adoption of ASU 2016-02 will have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS

6 Months Ended

Jun. 30, 2018

Disclosure Text Block Supplement [Abstract]

Supplemental Balance Sheet Disclosures [Text Block]

NOTE 3. CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS

Tenant Receivables, Net

Tenant receivables consisted of the following:

	June 30, 2018		December 31, 2017
Straight-line rent	$	1,604,822	$	995,822
Tenant rent		14,607		27,460
Tenant reimbursements		498,066		239,813
Total	$	2,117,495	$	1,263,095

Accounts Payable, Accrued and Other Liabilities

Accounts payable, accrued and other liabilities were comprised of the following:

	June 30, 2018		December 31, 2017
Accounts payable	$	71,721	$	244,430
Accrued expenses		1,318,931		571,308
Accrued interest payable		330,774		186,841
Unearned rent		478,383		548,266
Deferred commission payable		1,950		2,250
Investor deposits		5,000		—
Lease incentive obligation		336,624		858,389
Total	$	2,543,383	$	2,411,484

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REAL ESTATE INVESTMENTS

6 Months Ended

Jun. 30, 2018

Real Estate [Abstract]

Real Estate Disclosure [Text Block]

NOTE 4. REAL ESTATE INVESTMENTS

As of June 30, 2018, the Company’s real estate portfolio consisted of 21 properties in 12 states consisting of: (i) eight retail, (ii) seven office, (iii) five industrial properties and (iv) one parcel of land, which previously served as an easement to one of our office properties. The following table provides summary information regarding the Company’s real estate as of June 30, 2018:

Property	Location	Acquisition Date	Property Type	Land, Buildings and Improvements		Tenant Origination and Absorption Costs		Accumulated Depreciation and Amortization			Total Investment in Real Estate Property, Net
Accredo Health	Orlando, FL	6/15/2016	Office	$	9,855,847	$	1,053,637	$	(1,016,759	)	$	9,892,725
Walgreens	Stockbridge, GA	6/21/2016	Retail		4,147,948		705,423		(669,582	)		4,183,789
Dollar General	Litchfield, ME	11/4/2016	Retail		1,281,812		116,302		(65,396	)		1,332,718
Dollar General	Wilton, ME	11/4/2016	Retail		1,543,776		140,653		(83,693	)		1,600,736
Dollar General	Thompsontown, PA	11/4/2016	Retail		1,199,860		106,730		(62,834	)		1,243,756
Dollar General	Mt. Gilead, OH	11/4/2016	Retail		1,174,188		111,847		(60,243	)		1,225,792
Dollar General	Lakeside, OH	11/4/2016	Retail		1,112,872		100,857		(61,828	)		1,151,901
Dollar General	Castalia, OH	11/4/2016	Retail		1,102,086		86,408		(60,073	)		1,128,421
Dana	Cedar Park, TX	12/27/2016	Industrial		8,392,906		1,210,874		(756,306	)		8,847,474
Northrop Grumman	Melbourne, FL	3/7/2017	Office		12,382,991		1,341,199		(1,011,412	)		12,712,778
exp US Services	Maitland, FL	3/27/2017	Office		5,920,121		388,248		(280,472	)		6,027,897
Harley	Bedford, TX	4/13/2017	Retail		13,178,288		—		(390,169	)		12,788,119
Wyndham	Summerlin, NV	6/22/2017	Office		9,447,270		669,232		(302,649	)		9,813,853
Williams Sonoma	Summerlin, NV	6/22/2017	Office		8,079,612		550,486		(278,048	)		8,352,050
Omnicare	Richmond, VA	7/20/2017	Industrial		7,262,746		281,442		(220,364	)		7,323,824
EMCOR	Cincinnati, OH	8/29/2017	Office		5,960,610		463,488		(155,797	)		6,268,301
Husqvarna	Charlotte, NC	11/30/2017	Industrial		11,840,201		1,013,948		(221,143	)		12,633,006
AvAir	Chandler, AZ	12/28/2017	Industrial		27,357,900		—		(375,955	)		26,981,945
3M	DeKalb, IL	3/29/2018	Industrial		14,762,819		2,356,361		(363,226	)		16,755,954
Cummins	Nashville, TN	4/4/2018	Office		14,465,490		1,536,998		(165,535	)		15,836,953
Northrop Grumman Parcel	Melbourne, FL	6/21/2018	Land		329,410		—		—			329,410
				$	160,798,753	$	12,234,133	$	(6,601,484	)	$	166,431,402

Current Year Acquisitions

During the six months ended June 30, 2018, the Company acquired the following properties:

Property	Acquisition Date	Land		Buildings and Improvements		Tenant Origination and Absorption Costs		Above- Market Lease		Below- Market Lease			Total
3M	3/29/2018	$	758,780	$	14,004,039	$	2,356,361	$	—	$	(1,417,483	)	$	15,701,697
Cummins	4/4/2018		3,347,959		11,117,531		1,536,998		—		—			16,002,488
Northrop Grumman Parcel	6/21/2018		329,410		—		—		—		—			329,410
		$	4,436,149	$	25,121,570	$	3,893,359	$	—	$	(1,417,483	)	$	32,033,595

Purchase price	$	32,033,595
Acquisition fees to affiliates		(930,000	)
Cash paid for acquisition of real estate investments	$	31,103,595

The non-cancellable lease terms of the properties acquired during the six months ended June 30, 2018 are as follows:

Property	Lease Expiration
3M	7/31/2022
Cummins	2/28/2023

The purchase price allocations reflected in the condensed consolidated financial statements are based upon current estimates and assumptions that are subject to change which may impact the fair value of the assets and liabilities above (including real estate investments, other assets and accrued liabilities). The Company capitalized $501,697, $502,488 and $33,860 of acquisition fees and costs in conjunction with its acquisition of the 3M, Cummins and Northrop Grumman Parcel properties, respectively. During the three and six months ended June 30, 2018, the Company recognized $906,155 and $929,127, respectively, of total revenue related to these properties.

Operating Leases

As of June 30, 2018, the Company’s portfolio’s asset concentration (greater than 10% of total assets) was as follows:

Property and Location	Net Carrying Value		Percentage of Total Assets
AvAir, Chandler, AZ	$	26,981,945		14.2	%

The Company’s real estate properties are primarily leased to tenants under triple-net leases for which terms and expirations vary. The Company monitors the credit of all tenants to stay abreast of any material changes in credit quality. The Company monitors tenant credit by (1) reviewing the credit ratings of tenants (or their parent companies or lease guarantors) that are rated by national recognized rating agencies; (2) reviewing financial statements and related metrics and information that are publicly available or that are required to be provided pursuant to the lease; (3) monitoring news reports and press releases regarding the tenants (or their parent companies or lease guarantors), and their underlying business and industry; and (4) monitoring the timeliness of rent collections.

As of June 30, 2018, the future minimum contractual rent payments due under the Company’s non-cancelable operating leases, excluding any renewal periods, are as follows:

July through December 2018	$	6,582,221
2019		13,381,683
2020		13,524,743
2021		12,339,938
2022		10,963,883
2023		8,643,467
Thereafter		45,898,687
	$	111,334,622

Revenue Concentration

The Company’s revenue concentration for the three and six months ended June 30, 2018 is as follows:

	Three Months Ended June 30, 2018					Six Months Ended June 30, 2018
Property and Location	Revenue		Percentage of Total Revenue			Revenue		Percentage of Total Revenue
AvAir, Chandler, AZ	$	653,374		14.9	%	$	1,289,146		16.4	%
3M, DeKalb, IL	$	506,229		11.5	%	$	—		—

Intangibles

As of June 30, 2018, the Company’s lease intangibles were as follows:

	Tenant Origination and Absorption Costs			Above-Market Leases			Below-Market Leases
Cost	$	12,234,133		$	783,115		$	(3,071,253	)
Accumulated amortization		(2,023,224	)		(150,345	)		238,676
Net amount	$	10,210,909		$	632,770		$	(2,832,577	)

The amortization of intangible assets over the next five years is expected to be as follows:

	Tenant Origination and Absorption Costs		Above-Market Leases		Below-Market Leases
July through December 2018	$	1,035,535	$	48,523	$	(237,196	)
2019		2,071,069		97,045		(474,391	)
2020		2,071,069		97,045		(474,391	)
2021		1,654,810		78,994		(474,391	)
2022		1,118,740		63,719		(306,829	)
2023		492,976		63,719		(78,369	)
Thereafter		1,766,710		183,725		(787,010	)
	$	10,210,909	$	632,770	$	(2,832,577	)
Weighted-average remaining amortization period		7.2 years		7.6 years		9.9 years

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INVESTMENTS IN UNCONSOLIDATED ENTITIES

6 Months Ended

Jun. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Cost and Equity Method Investments Disclosure [Text Block]

NOTE 5. INVESTMENTS IN UNCONSOLIDATED ENTITIES

The Company’s investments in unconsolidated entities are as follows:

	June 30, 2018		December 31, 2017
Santa Clara Property Tenant-in-Common Interest (“TIC Interest”)	$	10,907,699	$	11,103,547
Rich Uncles Real Estate Investment Trust I (“REIT I”)		3,256,641		3,420,475
	$	14,164,340	$	14,524,022

The Company’s (loss) income from investments in unconsolidated entities is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
REIT I	$	(32,301	)	$	159,399	$	(27,202	)	$	167,356
TIC Interest		70,907			—		120,687			—
	$	38,606		$	159,399	$	93,485		$	167,356

TIC Interest

On September 28, 2017, the Company, through a wholly-owned subsidiary of the Operating Partnership, acquired an approximate 72.7% TIC Interest in the Santa Clara property. The remaining approximate 27.3% of undivided interests in the Santa Clara property are held by Hagg Lane II, LLC (an approximate 23.4% interest) and Hagg Lane III, LLC (an approximate 3.9% interest). The manager of Hagg Lane II, LLC and Hagg Lane III, LLC is a board member of the Sponsor. The Santa Clara property does not qualify as a variable interest entity and consolidation is not required as the Company’s TIC Interest does not control the property. Therefore, the Company accounts for its TIC Interest in the Santa Clara property using the equity method. The Company receives approximately 72.7% of the cash flow distributions and recognizes approximately 72.7% of the results of operations. During the three and six months ended June 30, 2018, the Company received $68,316 and $136,632 in cash distributions, respectively.

The following is summarized financial information for the Santa Clara property:

	June 30, 2018		December 31, 2017
Assets:
Real estate investments, net	$	32,164,572	$	32,587,034
Cash and cash equivalents		273,589		615,436
Other assets		244,756		103,700
Total assets	$	32,682,917	$	33,306,170
Liabilities:
Mortgage notes payable	$	14,114,248	$	14,235,256
Below-market lease, net		3,178,988		3,247,480
Other liabilities		81,687		246,085
Total liabilities		17,374,923		17,728,821
Total equity		15,307,994		15,577,349
Total liabilities and equity	$	32,682,917	$	33,306,170

	Three Months Ended June 30, 2018 (1)		Six Months Ended June 30, 2018 (1)
Total revenues	$	713,218	$	1,322,012
Expenses:
Interest expense		145,960		290,985
Depreciation and amortization		248,136		495,349
Other expenses		223,358		369,694
Total expenses		617,454		1,156,028
Net income	$	95,764	$	165,984

(1) The Company’s TIC Interest in the Santa Clara property commenced on September 28, 2017; therefore, no Santa Clara property operating results are presented for the three and six months ended June 30, 2017.

REIT I

The Company’s investment in REIT I represented an approximate 4.3% and 4.4% ownership interest as of June 30, 2018 and December 31, 2017, respectively. The Company recorded its share of income (losses) of REIT I based on REIT I’s results of operations for the three and six months ended June 30, 2018. During the three and six months ended June 30, 2018, the Company received $68,316 and $136,632 in cash dividends, respectively, related to its investment in REIT I. The following is summarized financial information for REIT I:

	June 30, 2018		December 31, 2017
Assets:
Real estate investments, net	$	127,870,774	$	131,166,670
Cash and cash equivalents and restricted cash		4,606,282		6,027,807
Other assets		3,083,486		2,658,777
Total assets	$	135,560,542	$	139,853,254
Liabilities:
Mortgage notes payable, net	$	61,839,052	$	62,277,387
Below-market lease intangibles, net		3,535,926		3,966,008
Other liabilities		3,644,436		2,937,247
Total liabilities		69,019,414		69,180,642
Redeemable common stock		224,035		586,242
Total shareholders’ equity		66,317,093		70,086,370
Total liabilities and shareholders’ equity	$	135,560,542	$	139,853,254

	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
Total revenues	$	3,365,163		$	3,507,951	$	6,596,381		$	6,234,218
Expenses:
Depreciation and amortization		1,409,093			1,452,354		2,857,337			2,670,428
Interest expense		631,838			761,743		1,116,711			1,222,944
Impairment of real estate investment property (1)		862,190			—		862,190			—
Other expenses		1,206,883			1,104,954		2,386,920			1,757,779
Total expenses		4,110,004			3,319,051		7,223,158			5,651,151
Other income:
Other income		—			748,514		—			748,795
Net (loss) income	$	(744,841	)	$	937,414	$	(626,777	)	$	1,331,862

(1)   During the three months ended June 30, 2018, REIT I recorded an impairment charge of $862,190 related to its investment in a property in Antioch, California due to the expiration of the tenant’s lease term at December 31, 2017 and REIT I’s subsequent difficulties encountered during the second quarter in its efforts to re-lease the property at acceptable rent rates and without incurring substantial potential tenant improvement costs. The impairment charge is less than 1% of REIT I’s total investments in real estate property and the book value of the property after the impairment charge is less than 2.0% of REIT I’s total investments in real estate property as of June 30, 2018.

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DEBT

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 6. DEBT

Mortgage Notes Payable

As of June 30, 2018 and December 31, 2017, the Company’s mortgage notes payable consisted of the following:

	June 30, 2018							December 31, 2017
Collateral	Principal ‎Amount		Deferred ‎Loan Costs, ‎Net			Net ‎Balance		Principal ‎Amount		Deferred ‎Loan ‎Costs, ‎Net			Net ‎Balance		Contractual ‎Interest ‎Rate (1)			Effective Interest Rate (1)			Loan ‎Maturity
Accredo/Walgreen properties	$	7,065,895	$	(107,771	)	$	6,958,124	$	7,133,966	$	(124,763	)	$	7,009,203		3.95	%		3.95	%	7/1/2021
Dana property		4,671,294		(113,139	)		4,558,155		4,709,889		(125,132	)		4,584,757		4.56	%		4.56	%	4/1/2023
Six Dollar General properties		3,916,681		(135,993	)		3,780,688		3,951,846		(153,290	)		3,798,556		4.69	%		4.69	%	4/1/2022
Wyndham property (2)		5,871,600		(104,096	)		5,767,504		5,920,800		(109,936	)		5,810,864		One-month ‎LIBOR+2.05	%		4.34	%	6/5/2027
Williams Sonoma property (2)		4,658,400		(77,067	)		4,581,333		4,699,200		(85,227	)		4,613,973		One-month ‎LIBOR+2.05	%		4.05	%	6/5/2022
Omnicare property		4,386,906		(159,155	)		4,227,751		4,423,574		(169,372	)		4,254,202		4.36	%		4.36	%	5/1/2026
Harley property		6,926,045		(185,658	)		6,740,387		6,983,418		(200,811	)		6,782,607		4.25	%		4.25	%	9/1/2024
Northrop Grumman property		5,877,911		(183,229	)		5,694,682		5,945,655		(217,584	)		5,728,071		4.40	%		4.40	%	3/2/2021
EMCOR property		2,935,147		(77,682	)		2,857,465		2,955,000		(83,743	)		2,871,257		4.35	%		4.35	%	12/1/2024
exp US Services property		3,475,886		(131,916	)		3,343,970		3,505,061		(140,382	)		3,364,679		(4	)		4.25	%	11/17/2024
Husqvarna property		6,380,000		(201,883	)		6,178,117		—		—			—		(5	)		4.60	%	2/20/2028
AvAir property (3)		14,575,000		(349,657	)		14,225,343		12,000,000		(330,866	)		11,669,134		(6	)		4.84	%	3/27/2028
3M property		8,360,000		(139,889	)		8,220,111		—		—			—		One-month ‎LIBOR+2.25	%		5.09	%	3/29/2023
Cummins property		8,530,000		(162,175	)		8,367,825		—		—			—		One-month ‎LIBOR+2.25	%		5.16	%	4/4/2023
	$	87,630,765	$	(2,129,310	)	$	85,501,455	$	62,228,409	$	(1,741,106	)	$	60,487,303

(1)	Contractual interest rate represents the interest rate in effect under the mortgage note payable as of June 30, 2018. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2018 (consisting of the contractual interest rate and the effect of the interest rate swap, if applicable). For further information regarding the Company’s derivative instruments (see Note 7).
(2)	The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%.
(3)	On March 27, 2018, the Company refinanced the mortgage loan payable as of December 31, 2017 with a new loan for $14,575,000 through a nonaffiliated lender.  The loan is secured by the AvAir property and it matures on March 27, 2028.
(4)	The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate is T-Bill index plus 3.25%.
(5)	The initial contractual interest rate is 4.60% for the first five years and the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% for the second five years.
(6)	The initial contractual interest rate for the note payable outstanding as of June 30, 2018 is 4.84% for the first five-years and the greater of 4.60% or five-year TCM plus 2.45% for the second five-years.

The following were the face value, carrying amount and fair value of the Company’s mortgage notes payable (Level 3 measurement): 

	June 30, 2018						December 31, 2017
	Face Value		Carrying Value		Fair Value		Face value		Carrying Value		Fair Value
Mortgage notes payable	$	87,630,765	$	85,501,455	$	86,757,903	$	62,228,409	$	60,487,303	$	62,363,284

Disclosures of the fair values of financial instruments are based on pertinent information available to the Company as of the period end and require a significant amount of judgment. The actual value could be materially different from the Company’s estimate of value.

Unsecured Credit Facility

On February 28, 2018, the Company, together with the Operating Partnership and Rich Uncles NNN LP, LLC (“Borrowers”), entered into a Business Loan Agreement and Promissory Note (the “Unsecured Credit Facility”) with Pacific Mercantile Bank (“Lender”). The Unsecured Credit Facility replaced the $12,000,000 unsecured line of credit with Lender, which expired on January 26, 2018 (the “Former Credit Facility”). The Unsecured Credit Facility is a revolving unsecured line of credit for a maximum principal amount of $9,000,000 and matures on January 26, 2019, unless earlier terminated.  Under the terms of the Unsecured Credit Facility, Borrowers pay a variable rate of interest on outstanding amounts equal to one (1) percentage point over an independent index published in The Wall Street Journal based on the highest rate on corporate loans posted by at least 75% of the largest banks (the “Index”). Based upon the Index as of the date of the Unsecured Credit Facility, the initial interest rate under the Unsecured Credit Facility was 5.50% and is currently 6.0%.

The Unsecured Credit Facility contains customary representations, warranties and covenants, which are substantially similar to those in the Former Credit Facility. The Company’s ability to borrow under the Unsecured Credit Facility will be subject to its ongoing compliance with various affirmative and negative covenants, including with respect to indebtedness, guaranties, mergers and asset sales, liens, dividends, corporate existence and financial reporting obligations.

The Unsecured Credit Facility also contains customary events of default, including, without limitation, nonpayment of principal, interest, fees or other amounts when due, violation of covenants, breaches of representations or warranties and change of ownership. Upon the occurrence of an event of default, Lender may accelerate the repayment of amounts outstanding under the Unsecured Credit Facility and exercise other remedies subject, in certain instances, to the expiration of an applicable cure period.

The Unsecured Credit Facility is secured by guaranties executed by Raymond E. Wirta, Chairman of the Board of the Company, a trust belonging to Mr. Wirta, Harold C. Hofer, President and Chief Executive Officer of the Company, and a trust belonging to Mr. Hofer, each in the amount of $9,000,000. Such guaranties become effective upon certain triggering events, including an event of default under the Unsecured Credit Facility and the failure by Borrowers to pay one or more subsequent advances within 90 days of disbursement.

As of June 30, 2018, the Unsecured Credit Facility had no outstanding borrowings; however, on July 27, 2018, the Company borrowed the full $9,000,000 to fund the acquisition of the 24 Hour Fitness property in Las Vegas, Nevada, as more fully described in Note 10. As of December 31, 2017, the Former Credit Facility had total outstanding borrowings of $12,000,000.

All Debt Agreements

Pursuant to the terms of mortgage notes payable on certain of the Company’s properties and the Unsecured Credit Facility, the Company and/or the Borrowers are subject to certain financial loan covenants. The Company and/or the Borrowers were in compliance with all terms and conditions of the applicable loan agreements as of June 30, 2018.

The following summarizes the future principal repayment of the Company’s mortgage notes payable and Unsecured Credit Facility as of June 30, 2018:

	Mortgage Note Payable		Unsecured Credit Facility (1)		Total
July through December 2018	$	453,113	$	—	$	453,113
2019		1,109,940		—		1,109,940
2020		1,365,278		—		1,365,278
2021		8,055,564		—		8,055,564
2022		14,432,812		—		14,432,812
2023		21,031,341		—		21,031,341
Thereafter		41,182,717		—		41,182,717
Total principal	$	87,630,765	$	—	$	87,630,765

(1) Any outstanding borrowings under the Unsecured Credit Facility will be due by January 26, 2019 unless the facility is extended.

Interest Expense

The following is a reconciliation of the components of interest expense for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018			2017
Mortgage notes payable
Interest expense	$	1,006,398	$	184,179	$	1,829,658		$	265,837
Amortization of deferred financing costs		98,648		24,998		505,535			35,386
Unrealized (gain) loss on interest rate swaps (see Note 7)		6,235		104,633		(220,571	)		104,633
Unsecured credit facility
Interest expense		83,408		103,877		166,397			143,031
Amortization of deferred financing costs		8,571		481		12,857			1,118
Forfeited loan fee		—		20,000		—			20,000
Total interest expense	$	1,203,260	$	438,168	$	2,293,876		$	570,005

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INTEREST RATE SWAP DERIVATIVES

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 7. INTEREST RATE SWAP DERIVATIVES

The primary goal of the Company’s risk management practices related to interest rate risk is to prevent changes in interest rates from adversely impacting the Company’s ability to achieve its investment return objectives. The Company does not enter into derivatives for speculative purposes.

The Company enters into interest rate swaps as a fixed rate payer to mitigate its exposure to rising interest rates on its variable rate mortgage notes payable. The value of interest rate swaps is primarily impacted by interest rates, market expectations about interest rates, and the remaining life of the applicable instrument. In general, increases in interest rates, or anticipated increases in interest rates, will increase the value of the fixed rate payer position and decrease the value of the variable rate payer position. As the remaining life of the interest rate swap decreases, the value of both positions will generally move towards zero.

The Company (or wholly-owned limited liability company subsidiaries) has entered into interest rate swap agreements with amortizing notational amounts relating to four of its mortgage notes payable. The notional amount is an indication of the extent of the Company’s involvement in each instrument at that time, but does not represent exposure to credit, interest rate or market risks.

The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of June 30, 2018 and December 31, 2017.

June 30, 2018

December 31, 2017

Derivative ‎ Instruments

Number ‎of ‎Instru- ‎ ments

Notional ‎ Amount (i)

Reference ‎ Rate (ii)

Weighted ‎Average ‎Fixed ‎ pay rate

Weighted ‎Average ‎Remaining ‎ Term

Number ‎of ‎Instru- ‎ ments

Notional ‎ Amount (i)

Reference ‎ Rate (iii)

Weighted ‎Average ‎Fixed ‎ pay rate

Weighted ‎Average ‎Remaining ‎ Term

Interest Rate Swap Derivatives

4

$

27,420,000

One-month LIBOR + applicable spread/Fixed at 4.05%-5.16%

4.74

%

5.6 years

2

$

10,620,000

One-month LIBOR + applicable spread/Fixed at 4.05%-4.34%

4.21

%

7.2 years

(i)	The notional amount of the Company’s swaps decreases each month to correspond to the outstanding principal balance on the related mortgage. The maximum notional amount is shown above. As of June 30, 2018, the minimum notional amount (outstanding principal balance at the maturity date) was $24,936,800.
(ii)	The reference rate was June 30, 2018.
(iii)	The reference rate was December 31, 2017.

The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the condensed consolidated balance sheets:

		June 30, 2018				December 31, 2017
Derivative Instrument	Balance Sheet Location	Number of ‎Instruments	Fair Value			Number of ‎Instruments	Fair Value
Interest Rate Swaps	Asset - Interest rate swap derivatives, at fair value	2	$	326,710		2	$	7,899
Interest Rate Swaps	Liability - Interest rate swap derivatives, at fair value	2	$	(98,240	)	—	$	—

The change in fair value of a derivative instrument that is not designated as a cash flow hedge for financial accounting purposes is recorded as interest expense in the condensed consolidated statements of operations. None of the Company’s derivatives at June 30, 2018 or December 31, 2017 were designated as hedging instruments; therefore, the net unrealized loss (gain) recognized on interest rate swaps of $6,236 and $104,633 was recorded as an increase in interest expense for the three months ended June 30, 2018 and 2017, respectively, and $(220,570) and $104,633 was recorded as a (decrease) increase in interest expense for the six months ended June 30, 2018 and 2017, respectively (see Note 6).

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RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 8. RELATED PARTY TRANSACTIONS

The Company pays the members of its board of directors who are not executive officers for services rendered by issuing to them shares of Class C common stock. The total amount paid was $43,215 and $35,000 for the three months ended June 30, 2018 and 2017, respectively, and $81,405 and $65,000 for the six months ended June 30, 2018 and 2017, respectively, which the Company paid by issuing 4,300 shares and 3,500 shares of Class C common stock during the three months ended June 30, 2018 and 2017, respectively, and 8,100 shares and 6,500 shares of Class C common stock during the six months ended June 30, 2018 and 2017, respectively, to the directors in accordance with the terms of its director compensation program.

The Company has entered into an agreement (the “Advisory Agreement”) with the Advisor. This agreement entitles the Advisor to specified fees upon the provision of certain services with regard to the investment of funds in real estate investments, the management of those investments, among other services, and the disposition of investments, as well as entitles the Advisor to reimbursement of organization and offering costs incurred by the Advisor or Sponsor on behalf of the Company, such as expenses related to the Offerings, and certain costs incurred by the Advisor or Sponsor in providing services to the Company. In addition, the Advisor is entitled to certain other fees, including an incentive fee upon achieving certain performance goals, as detailed in the Advisory Agreement. The Sponsor also serves as the sponsor and advisor for REIT I and Brix Student Housing REIT, Inc. During the three and six months ended June 30, 2018 and 2017, no other business transactions occurred between the Company and REIT I, or Brix Student Housing REIT, Inc., other than as described below or elsewhere herein, and those relating to the Company’s investment in REIT I.

Summarized below are the related party costs incurred by the Company, including those incurred pursuant to the Advisory Agreement, for the three and six months ended June 30, 2018 and 2017, respectively:

	Three Months Ended			Six Months Ended							Three Months Ended			Six Months Ended
	June 30, 2018						June 30, 2018				June 30, 2017						December 31, 2017
	Incurred			Incurred			Receivable		Payable		Incurred			Incurred			Receivable		Payable
Expensed
Asset management fees (1)	$	477,915		$	879,230		$	—	$	164,685	$	196,856		$	308,154		$	—	$	567,661
Subordinated participation fees		—			—			—		—		—			—			—		315,802
Fees to affiliates		477,915			879,230							196,858			308,154
Property management fees*		19,212			32,151			—		—		622			622			—		7,969
Directors and Officers insurance and other reimbursements**		36,083			52,716			—		657		—			—			—		—
Expense reimbursements from (to) Sponsor (2)		(293,939	)		(653,453	)		26,448		15,800		(672,904	)		(1,360,930	)		34,194		—
Waiver of asset management fees (1)		—			—			—		—		(49,214	)		(77,039	)		—		—
Capitalized:
Acquisition fees		496,358			952,358			—		22,358		882,971			1,483,571			—		—
Financing coordination fees		—			209,550			—		—		—			87,450			—		—
Reimbursable organizational and offering expenses (3)		386,053			816,297			—		3,217		529,991			1,138,121			—		15,945
							$	26,448	$	206,717							$	34,194	$	907,377

*	Property management fees are classified within property operating expenses on the condensed consolidated statements of operations.
**	Directors and officers’ insurance and other reimbursements are classified within general and administrative expenses on the condensed consolidated statements of operations.

(1)	To the extent the Advisor elects, in its sole discretion, to defer all or any portion of its monthly asset management fee, the Advisor will be deemed to have waived, not deferred, that portion up to 0.025% of the total investment value of the Company’s assets. For the three months ended June 30, 2018 and 2017, the Advisor waived zero and $49,214, respectively, of asset management fees, which are not subject to future recoupment by the Advisor and for the six months ended June 30, 2018 and 2017, the Advisor waived zero and $77,039, respectively, of asset management fees, which are not subject to future recoupment by the Advisor. In addition to amounts presented in this table, the Company also incurred asset management fees to the Advisor of $47,984 and $95,966 related to its TIC Interest in the Santa Clara property during the three and six months ended June 30, 2018, respectively, which amounts are reflected as a reduction of income recognized from investments in unconsolidated entities.
(2)	Includes payroll costs related to Company employees that answer questions from prospective stockholders. See “—Investor Relations Payroll Expense Reimbursement from Sponsor” below. The Sponsor has agreed to reimburse the Company for these investor relations payroll costs which the Sponsor considers to be offering expenses in accordance with the Advisory Agreement. The expense reimbursements from the Sponsor for the three and six months ended June 30, 2018 also include zero and $48,422, respectively, of employment related legal fees which the Sponsor also agreed to reimburse the Company. The receivables related to these costs are reflected in “Due from affiliates” in the condensed consolidated balance sheets.
(3)	As of June 30, 2018, the Sponsor had incurred $7,918,815 of organizational and offering costs on behalf of the Company. However, the Company is only obligated to reimburse the Sponsor for such organizational and offering expenses to the extent of 3% of gross offering proceeds.

Organizational and Offering Expenses

The Company is obligated to reimburse the Sponsor or its affiliates for organizational and offering expenses (as defined in the Advisory Agreement) paid by the Sponsor on behalf of the Company. The Company will reimburse the Sponsor for organizational and offering expenses up to 3.0% of gross offering proceeds. The Sponsor and affiliates will be responsible for any organizational and offering expenses to the extent they exceed 3.0% of gross offering proceeds. As of June 30, 2018, the Sponsor has incurred organizational and offering expenses in excess of 3.0% of the gross offering proceeds received by the Company. To the extent the Company has more gross offering proceeds from future stockholders, the Company will be obligated to reimburse the Sponsor. As the amount of future gross offering proceeds is uncertain, the amount the Company is obligated to reimburse to the Sponsor is uncertain. As of June 30, 2018, the Company has reimbursed the Sponsor $3,532,793 in organizational and offering costs. The Company’s maximum liability for organizational and offering costs through June 30, 2018 was $3,536,010, of which $3,217 was payable as of June 30, 2018 and is included in “Due to affiliates” in the condensed consolidated balance sheet.

Investor Relations Payroll Expense Reimbursement from Sponsor

The Company employs investor personnel that answer inquiries from potential investors regarding the Company and/or its Registered Offering. The payroll expense associated with the investor relations personnel is reimbursed by the Sponsor. The Sponsor considers these payroll costs to be offering expenses. The payroll expense reimbursements from the Sponsor for the three months ended June 30, 2018 and 2017 were $242,416 and $672,904, respectively, and for the six months ended June 30, 2018 and 2017 were $553,508 and $1,360,930, respectively.

Acquisition Fees

The Company pays the Advisor a fee in an amount equal to 3.0% of the contract purchase price of the Company’s properties, as defined, as acquisition fees. The total of all acquisition fees and acquisition expenses shall be reasonable and shall not exceed 6.0% of the contract price of the property. However, a majority of the directors (including a majority of the independent directors) not otherwise interested in the transaction may approve fees in excess of these limits if they determine the transaction to be commercially competitive, fair and reasonable to the Company.

Asset Management Fee

The Company pays the Advisor as compensation for the advisory services rendered to the Company, a monthly fee in an amount equal to 0.1% of the total investment value, as defined (the “Asset Management Fee”), as of the end of the preceding month. The Asset Management Fee is payable monthly on the last day of such month, or the first business day following the last day of such month. In connection with renewing the Advisory Agreement for an additional year, on August 2, 2018, the Conflicts Committee, which is comprised of all of the independent directors of the Company, approved, and on August 3, 2018 our board of directors approved, amendments to the Advisory Agreement which provide for (i) paying the Asset Management Fee for assets acquired during a month based on the pro-rated number of days following acquisition and (ii) paying the Asset Management Fee on the last business day of the month. The Asset Management Fee, which must be reasonable in the determination of the Company’s independent directors at least annually, may or may not be taken, in whole or in part as to any year, in the sole discretion of the Advisor. All or any portion of the Asset Management Fee not paid as to any fiscal year is deferred without interest and may be paid in such other fiscal year as the Advisor shall determine.

Additionally, to the extent the Advisor elects, in its sole discretion, to defer all or any portion of its monthly Asset Management Fee, the Advisor will be deemed to have waived, not deferred, that portion of its monthly Asset Management Fee that is up to 0.025% of the total investment value of the Company’s assets. The total amount of Asset Management Fees incurred in the three months ended June 30, 2018 and 2017 was $477,915 and $196,856 respectively, of which zero and $49,214, respectively, was waived. The total amount of Asset Management Fees incurred in the six months ended June 30, 2018 and 2017 was $879,230 and $308,154 respectively, of which zero and $77,039, respectively, was waived. Asset Management Fees payable at June 30, 2018 and December 31, 2017 were $164,685 and $567,661, respectively.

Financing Coordination Fee

Other than with respect to any mortgage or other financing related to a property concurrent with its acquisition, if the Advisor or an affiliate provides a substantial amount of the services (as determined by a majority of the Company’s independent directors) in connection with the post-acquisition financing or refinancing of any debt that the Company obtains relative to a property, then the Company pays to the Advisor or such affiliate a financing coordination fee equal to 1.0% of the amount of such financing.

Property Management Fees

If the Advisor or any of its affiliates provides a substantial amount of the property management services (as determined by a majority of the Company’s independent directors) for the Company’s properties, then the Company pays the Advisor or such affiliate a property management fee equal to 1.5% of gross revenues from the properties managed. The Company also reimburses the Advisor and any of its affiliates for property-level expenses that such person pays or incurs on behalf of the Company, including salaries, bonuses and benefits of persons employed by such person, except for the salaries, bonuses and benefits of persons who also serve as one of the Company’s executive officers or as an executive officer of such person. The Advisor or its affiliate may subcontract the performance of its property management duties to third parties and pay all or a portion of its property management fee to the third parties with whom it contracts for these services. The Company currently provides property management services for five of the 21 real estate properties in its portfolio.

Disposition Fees

For substantial assistance in connection with the sale of properties, the Company pays the Advisor or one of its affiliates 3.0% of the contract sales price, as defined, of each property sold; provided, however, that if, in connection with such disposition, commissions are paid to third parties unaffiliated with the Advisor or its affiliates, the disposition fees paid to the Advisor, the Sponsor, their affiliates and unaffiliated third parties may not exceed the lesser of the competitive real estate commission or 6% of the contract sales price. There were no disposition fees incurred during the three and six months ended June 30, 2018 and 2017.

Subordinated Participation Fees

The Company pays the Advisor or an affiliate a subordinated participation fee calculated as of December 31 of each year and paid (if at all) in the immediately following January. The subordinated participation fee is only due if the Preferred Return, as defined, is achieved and is equal to the sum of (using terms as defined in the Advisory Agreement):

(i) 30% of the product of: (a) the difference of (x) the Preliminary NAV per share minus (y) the Highest Prior NAV per share, multiplied by (b) the number of shares outstanding as of December 31 of the relevant annual period, but only if this results in a positive number, plus

(ii) 30% of the product of: (a) the amount by which aggregate distributions to stockholders during the annual period, excluding return of capital distributions, divided by the weighted average number of shares outstanding for the annual period, exceed the Preferred Return, multiplied by (b) the weighted average number of shares outstanding for the annual period calculated on a monthly-basis.

The Company paid a subordinated participation fee of $315,802 calculated and accrued as of December 31, 2017 in cash during the first quarter of 2018.

Leasing Commission Fees

If a property or properties of the Company becomes unleased and the Advisor or any of its affiliates provides a substantial amount of the services (as determined by a majority of the Company’s independent directors) in connection with the Company’s leasing of a property or properties to unaffiliated third parties, then the Company pays the Advisor or such affiliate leasing commissions equal to 6.0% of the rents due pursuant to such lease for the first ten years of the lease term; provided, however (i) if the term of the lease is less than ten years, such commission percentage will apply to the full term of the lease; and (ii) any rents due under a renewal of a lease of an existing tenant upon expiration of the initial lease agreement (including any extensions provided for thereunder) shall accrue a commission of 3.0% in lieu of the aforementioned 6.0% commission. There were no leasing commission fees incurred during the three and six months ended June 30, 2018 and 2017.

Operating Expenses

Under the Company’s charter, total operating expenses of the Company are limited to the greater of 2% of average invested assets or 25% of net income for the four most recently completed fiscal quarters (the “2%/25% Limitation”). If the Company exceeds the 2%/25% Limitation, the Advisor must reimburse the Company the amount by which the aggregate total operating expenses exceeds the limitation, or the Company must obtain a waiver from the Company’s Conflicts Committee. For purposes of determining the 2%/25% Limitation amount, “average invested assets” means the average monthly book value of the Company’s assets invested directly or indirectly in equity interests and loans secured by real estate during the 12-month period before deducting depreciation, reserves for bad debts or other non-cash reserves. “Total operating expenses” means all expenses paid or incurred by the Company, as determined by GAAP, that are in any way related to the Company’s operation including asset management fees, but excluding (a) the expenses of raising capital such as organization and offering expenses, legal, audit, accounting, underwriting, brokerage, listing, registration and other fees, printing and other such expenses and taxes incurred in connection with the issuance, distribution, transfer, listing and registration of shares of the Company’s common stock; (b) interest payments; (c) taxes; (d) non-cash expenditures such as depreciation, amortization and bad debt reserves; (e) reasonable incentive fees based upon increases in NAV per share; (f) acquisition fees and acquisition expenses (including expenses, relating to potential investments that the Company does not close); and (h) disposition fees on the sale of real property and other expenses connected with the acquisition, disposition and ownership of real estate interests or other property (other than disposition fees on the sale of assets other than real property), including the costs of insurance premiums, legal services, maintenance, repair and improvement of real property. The Company is in compliance with the 2/25% Limitation for operating expenses for the four fiscal quarters ended June 30, 2018.

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 9. COMMITMENTS AND CONTINGENCIES

Economic Dependency

The Company depends on its Sponsor and its Advisor for certain services that are essential to the Company, including the sale of the Company’s shares of common stock, the identification, evaluation, negotiation, origination, acquisition and disposition of investments; management of the daily operations of the Company’s investment portfolio; and other general and administrative responsibilities. In the event that these companies are unable to provide the respective services, the Company will be required to obtain such services from other sources.

Environmental

As an owner of real estate, the Company is subject to various environmental laws of federal, state and local governments. Although there can be no assurance, the Company is not aware of any environmental liability that could have a material adverse effect on its financial condition or results of operations. However, changes in applicable environmental laws and regulations, the uses and conditions of properties in the vicinity of the Company’s properties, the activities of its tenants and other environmental conditions of which the Company is unaware with respect to the property could result in future environmental liabilities.

Tenant Improvements

Pursuant to lease agreements, as of June 30, 2018, the Company has obligations to pay for $560,740 in site and tenant improvements to be incurred by tenants, including a 72.7% share of the tenant improvements for the Santa Clara property. At June 30, 2018, the Company had $334,471 of restricted cash held to fund the improvements.

Redemption of Common Stock

Following the Company’s board of directors’ determination of its NAV and NAV per share on January 18, 2018, the maximum amount that may be repurchased per month is limited to no more than 2% of the Company’s most recently determined aggregate NAV. Repurchases for any calendar quarter will be limited to no more than 5% of its most recently determined aggregate NAV. The foregoing repurchase limitations are based on “net repurchases” during a quarter or month, as applicable. Thus, for any given calendar quarter or month, the maximum amount of repurchases during that quarter or month will be equal to (1) 5% or 2% (as applicable) of the Company’s most recently determined aggregate NAV, plus (2) proceeds from sales of new shares in the Registered Offering and Class S Offering (including purchases pursuant to its Registered DRP Offering) since the beginning of a current calendar quarter or month, less (3) repurchase proceeds paid since the beginning of the current calendar quarter or month.

The Company has the discretion to repurchase fewer shares than have been requested to be repurchased in a particular month or quarter, or to repurchase no shares at all, in the event that it lacks readily available funds to do so due to market conditions beyond the Company’s control, its need to main liquidity for its operations or because the Company determines that investing in real property or other illiquid investments is a better use of its capital than repurchasing its shares. In the event that the Company repurchases some but not all of the shares submitted for repurchase in a given period, shares submitted for repurchase during such period will be repurchased on a pro rata basis. In addition, the Company’s board of directors may amend, suspend or terminate the share repurchase program without stockholder approval upon 30 days’ notice if its directors believe such action is in the Company and its stockholders’ best interests.  The Company’s board of directors may also amend, suspend or terminate the share repurchase program due to changes in law or regulation, or if the board of directors becomes aware of undisclosed material information that the Company believes should be publicly disclosed before shares are repurchased.

Legal Matters

From time-to-time, the Company may become party to legal proceedings that arise in the ordinary course of its business. Other than as discussed below, the Company is not a party to any legal proceeding, nor is the Company aware of any pending or threatened litigation that could have a material adverse effect on the Company’s business, operating results, cash flows or financial condition should such litigation be resolved unfavorably.

The SEC is conducting an investigation related to the advertising and sale of securities by the Company in connection with the Registered Offering. The investigation is a non-public fact-finding inquiry. It is neither an allegation of wrongdoing nor a finding that violations of law have occurred. In connection with the investigation, the Company and certain affiliates have received and responded to subpoenas from the SEC requesting documents and other information related to the Company and the Registered Offering. The SEC’s investigation is ongoing. The Company has cooperated and intends to continue to cooperate with the SEC in this matter. The Company is unable to predict the likely outcome of the investigation or determine its potential impact, if any, on the Company.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 10. SUBSEQUENT EVENTS

The Company evaluates subsequent events up until the date the condensed consolidated financial statements are issued.

Offering Status

Through August 8, 2018, the Company had sold 12,236,937 shares of Class C common stock in the Registered Offering for aggregate gross offering proceeds of $122,507,601, including 634,236 shares of common stock sold under its Registered DRP Offering for aggregate gross offering proceeds of $6,358,113, and 3,117 shares of Class S common stock in the Class S Offering for aggregate gross offering proceeds of $31,170, including 117 shares of Class S common stock sold under its dividend reinvestment plan applicable to Class S common stock for aggregate gross offering proceeds of $1,170.

Distributions

On July 2, 2018, the Company’s board of directors declared distributions based on daily record dates for the period July 1, 2018 through July 31, 2018 at a rate of $.0018911 per share per day on the outstanding shares of the Company’s Class C and Class S common stock, which the Company will pay on August 27, 2018, which is the first business day following the August 25, 2018 payment date.

On July 30, 2018, the Company’s board of directors declared distributions based on daily record dates for the period August 1, 2018 through August 31, 2018 at a rate of $.0018911 per share per day on the outstanding shares of the Company’s Class C and Class S common stock, which the Company will pay on September 25, 2018.

Acquisitions

On July 27, 2018, the Company, through a wholly-owned subsidiary of the Operating Partnership, completed the acquisition of a retail property with approximately 45,000 square feet located in Las Vegas, Nevada which is leased to 24 Hour Fitness USA, Inc. The property houses high-end fitness amenities including a cycling room, pro shop, kids club, basketball court, swimming pool, jacuzzi, sauna, steam room, aerobic studio, locker rooms, cardio equipment and a weightlifting area. The contract purchase price for the property was $12,200,000, which was funded with $3,200,000 in net proceeds from the Registered Offering and $9,000,000 drawn under the Unsecured Credit Facility. The property’s double net lease expires on March 31, 2030 and includes three five-year renewal options to extend the expiration date. The property is expected to generate $10,525,500 in total rental revenue over the course of its remaining lease term. The seller of the property was not affiliated with the Company or its affiliates. Under the terms of the Advisory Agreement, the Company paid the Advisor an acquisition fee of $366,000 in connection with this transaction.

On July 10, 2018, the Company entered into a purchase agreement to acquire a single-story office building with approximately 38,794 square feet located in Dallas, Texas. This property is leased to Texas Health Resources, a nonprofit corporation with 29 hospital locations, more than 100 outpatient facilities, more than 24,000 employees and over 6,000 physicians. The property’s triple-net lease expires on December 31, 2025. The contract purchase price for the property is $7,425,000 which will be funded by a combination of net proceeds from the Registered Offering and debt financing. The seller of the property is not affiliated with the Company or its affiliates. This acquisition is scheduled to close in September 2018 and, if closed, the Company will pay the Advisor an acquisition fee of $222,750.

Advisory Agreement

On August 2, 2018, the Conflicts Committee approved, and on August 3, 2018 our board of directors approved, renewing the Advisory Agreement for an additional year, to August 11, 2019. Concurrently, the independent directors, which comprise the Conflicts Committee, and our board of directors also approved amendments to the Advisory Agreement which provide for (i) paying the Asset Management Fee for assets acquired during a month based on the pro-rated number of days following acquisition and (ii) paying the Asset Management Fee on the last business day of the month.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Basis of Presentation and Principles of Consolidation

The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial statements and the rules and regulations of the SEC. Accordingly, they do not contain all information and footnotes required by GAAP for annual financial statements. Such unaudited condensed consolidated financial statements and accompanying notes are the representations of the Company’s management, which is responsible for their integrity and objectivity. These unaudited condensed consolidated financial statements should be read in conjunction with the December 31, 2017 audited consolidated financial statements included in the Company’s Form 10-K filed with the SEC on April 3, 2018.

The accompanying unaudited condensed consolidated financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which are normal and recurring, necessary to fairly state its financial position, results of operations and cash flows. All significant intercompany balances and transactions are eliminated in consolidation. The December 31, 2017 balance sheet included herein was derived from the audited financial statements but does not include all disclosures or notes required by GAAP for complete financial statements.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the condensed consolidated financial statements and the accompanying notes thereto in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying notes. Actual results may differ from those estimates.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Disclosures

The fair value for certain financial instruments is derived using valuation techniques that involve significant management judgment. The price transparency of financial instruments is a key determinant of the degree of judgment involved in determining the fair value of the Company’s financial instruments. Financial instruments for which actively quoted prices or pricing parameters are available and for which markets contain orderly transactions will generally have a higher degree of price transparency than financial instruments for which markets are inactive or consist of non-orderly trades. The Company evaluates several factors when determining if a market is inactive or when market transactions are not orderly. The following is a summary of the methods and assumptions used by management in estimating the fair value of each class of financial instrument for which it is practicable to estimate the fair value:

Cash and cash equivalents, restricted cash, tenant receivables, purchase and other deposits, prepaid expenses and other assets, accounts payable, accrued and other liabilities, due to affiliates and share repurchases payable:  These balances approximate their fair values due to the short maturities of these items.

Derivative Instruments:  The Company’s derivative instruments are presented at fair value in the accompanying condensed consolidated balance sheet. The valuation of these instruments is determined using a proprietary model that utilizes observable inputs. As such, the Company classifies these inputs as Level 2 inputs. The proprietary model uses the contractual terms of the derivatives, including the period to maturity, as well as observable market-based inputs, including interest rate curves and volatility. The fair values of interest rate swaps are estimated using the market standard methodology of netting the discounted fixed cash payments and the discounted expected variable cash receipts. The variable cash receipts are based on an expectation of interest rates (forward curves) derived from observable market interest rate curves. In addition, credit valuation adjustments, which consider the impact of any credit risks to the contracts, are incorporated in the fair values to account for potential nonperformance risk.

Unsecured Credit Facility:  The fair value of the Company’s Unsecured Credit Facility (as defined in Note 6) approximates its carrying value as the interest rates and other terms are comparable to those available in the market place for a similar credit facility.

Mortgage notes payable:  The fair value of the Company’s mortgage notes payable is estimated using a discounted cash flow analysis based on management’s estimates of current market interest rates for instruments with similar characteristics, including remaining loan term, loan-to-value ratio, type of collateral and other credit enhancements. Additionally, when determining the fair value of liabilities in circumstances in which a quoted price in an active market for an identical liability is not available, the Company measures fair value using (i) a valuation technique that uses the quoted price of the identical liability when traded as an asset or quoted prices for similar liabilities or similar liabilities when traded as assets or (ii) another valuation technique that is consistent with the principles of fair value measurement, such as the income approach or the market approach. The Company classifies these inputs as Level 3 inputs.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted Cash

Restricted cash is comprised of funds which are restricted for use as required by certain lenders in conjunction with an acquisition or debt financing and for on-site and tenant improvements.

Pursuant to lease agreements, the Company has obligations to pay for $560,740 in site and tenant improvements to be incurred by tenants as of June 30, 2018, including a 72.7% share of the tenant improvements for the Santa Clara property. At June 30, 2018 and December 31, 2017, the Company had $334,471 and $944,582, respectively, of restricted cash held to fund the improvements.

Other Comprehensive Income Loss [Policy Text Block]

Other Comprehensive Income (Loss)

For all periods presented, other comprehensive income (loss) is the same as net income (loss).

Earnings Per Share, Policy [Policy Text Block]

Per Share Data

Basic earnings per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share of common stock equals basic earnings per share of common stock as there were no potentially dilutive securities outstanding for the three and six months ended June 30, 2018 and 2017.

For the three and six months ended June 30, 2018, the Company has presented net income (loss) per share amounts on the accompanying statements of operations for Class C and S share classes as a combined common share class. Application of the two-class method for allocating income (loss) in accordance with the provisions of Accounting Standards Codification (“ASC”) 260, Earnings per Share, would have resulted in a net loss per share of $(0.02) for Class C shares and $(0.07) for Class S shares for the three months ended June 30, 2018 and a net loss per share of $(0.02) for Class C shares and $(0.11) for Class S shares for the six months ended June 30, 2018. The differences in net income (loss) per share if allocated under this method primarily reflects the lower effective dividends per share for Class S shareholders as a result of the payment of the deferred commission to the Class S distributor of these shares, and also reflects the impact of the timing of the declaration of the dividends relative to the time the shares were outstanding. The Company began offering shares of Class S common stock exclusively to non-U.S. Persons in August 2017.

Since the Company’s board of directors declared distributions for four months (December 2017 through March 2018) during the three months ended March 31, 2018 in order to transition to a process of declaring dividends prior to the beginning of the month, the dividends declared per common share for the six months ended June 30, 2018 reflects seven months of dividends rather than six months of dividends.

New Accounting Pronouncements, Policy [Policy Text Block]

Recent Accounting Pronouncements

New Accounting Standards Issued and Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). ASU 2014-09, as amended, requires an entity to use a five-step model to determine when to recognize revenue from customer contracts in an effort to increase consistency and comparability throughout global capital markets and across industries. ASU 2014-09 supersedes the revenue requirements in Revenue Recognition (Topic 605) and most industry specific guidance throughout the Industry Topics of the Codification. This ASU requires an entity to recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services and also to provide certain additional disclosures. The Company evaluated each of its revenue streams and their related accounting policies under ASU 2014-09. Rental income and tenant reimbursements earned from leasing the Company’s real estate properties are excluded from ASU 2014-09 and will be assessed with the adoption of the lease ASU as discussed below. The Company adopted ASU 2014-09 beginning January 1, 2018. The adoption of ASU 2014-09 did not have a material impact on the Company’s consolidated financial position or consolidated results of operations. However, future real estate sales contracts will qualify as sales to noncustomers. The Company will assess and implement any future recognition of gains or losses on sales of properties according to the provisions of ASU 2014-09.

New Accounting Standards Recently Issued and Not Yet Adopted

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The amendments in ASU 2016-02 change the existing accounting standards for lease accounting, including requiring lessees to recognize most leases on their balance sheets and making targeted changes to lessor accounting. Under ASU 2016-02, the accounting applied by a lessor is largely unchanged from that applied under Topic 840 leases. The large majority of operating leases shall remain classified as operating leases and lessors should continue to recognize rental income for those leases on a straight-line basis over the lease term. ASU 2016-02 may impact the timing, recognition, presentation and disclosures related to the Company’s tenant reimbursements earned from leasing its real estate properties, although the Company does not expect a significant impact. ASU 2016-02 is effective for the Company beginning January 1, 2019. The Company expects to adopt the practical expedients available for implementation under ASU 2016-02. By adopting the practical expedients, the Company will not be required to reassess (i) whether an expired or existing contract meets the definition of a lease and (ii) the lease classification at the adoption date for expired or existing leases. ASU 2016-02 will also require new disclosures within the notes to its consolidated financial statements. The Company does not expect the adoption of ASU 2016-02 will have a material impact on the Company’s consolidated financial position, results of operations or cash flows.

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CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure Text Block Supplement [Abstract]

Supplemental Detail Disclosures for Consolidate Balance Sheet [Table Text Block]

Tenant Receivables, Net

Tenant receivables consisted of the following:

	June 30, 2018		December 31, 2017
Straight-line rent	$	1,604,822	$	995,822
Tenant rent		14,607		27,460
Tenant reimbursements		498,066		239,813
Total	$	2,117,495	$	1,263,095

Accounts Payable, Accrued and Other Liabilities

Accounts payable, accrued and other liabilities were comprised of the following:

	June 30, 2018		December 31, 2017
Accounts payable	$	71,721	$	244,430
Accrued expenses		1,318,931		571,308
Accrued interest payable		330,774		186,841
Unearned rent		478,383		548,266
Deferred commission payable		1,950		2,250
Investor deposits		5,000		—
Lease incentive obligation		336,624		858,389
Total	$	2,543,383	$	2,411,484

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REAL ESTATE INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2018

Real Estate [Abstract]

Schedule of Real Estate Properties [Table Text Block]

As of June 30, 2018, the Company’s real estate portfolio consisted of 21 properties in 12 states consisting of: (i) eight retail, (ii) seven office, (iii) five industrial properties and (iv) one parcel of land, which previously served as an easement to one of our office properties. The following table provides summary information regarding the Company’s real estate as of June 30, 2018:

Property	Location	Acquisition Date	Property Type	Land, Buildings and Improvements		Tenant Origination and Absorption Costs		Accumulated Depreciation and Amortization			Total Investment in Real Estate Property, Net
Accredo Health	Orlando, FL	6/15/2016	Office	$	9,855,847	$	1,053,637	$	(1,016,759	)	$	9,892,725
Walgreens	Stockbridge, GA	6/21/2016	Retail		4,147,948		705,423		(669,582	)		4,183,789
Dollar General	Litchfield, ME	11/4/2016	Retail		1,281,812		116,302		(65,396	)		1,332,718
Dollar General	Wilton, ME	11/4/2016	Retail		1,543,776		140,653		(83,693	)		1,600,736
Dollar General	Thompsontown, PA	11/4/2016	Retail		1,199,860		106,730		(62,834	)		1,243,756
Dollar General	Mt. Gilead, OH	11/4/2016	Retail		1,174,188		111,847		(60,243	)		1,225,792
Dollar General	Lakeside, OH	11/4/2016	Retail		1,112,872		100,857		(61,828	)		1,151,901
Dollar General	Castalia, OH	11/4/2016	Retail		1,102,086		86,408		(60,073	)		1,128,421
Dana	Cedar Park, TX	12/27/2016	Industrial		8,392,906		1,210,874		(756,306	)		8,847,474
Northrop Grumman	Melbourne, FL	3/7/2017	Office		12,382,991		1,341,199		(1,011,412	)		12,712,778
exp US Services	Maitland, FL	3/27/2017	Office		5,920,121		388,248		(280,472	)		6,027,897
Harley	Bedford, TX	4/13/2017	Retail		13,178,288		—		(390,169	)		12,788,119
Wyndham	Summerlin, NV	6/22/2017	Office		9,447,270		669,232		(302,649	)		9,813,853
Williams Sonoma	Summerlin, NV	6/22/2017	Office		8,079,612		550,486		(278,048	)		8,352,050
Omnicare	Richmond, VA	7/20/2017	Industrial		7,262,746		281,442		(220,364	)		7,323,824
EMCOR	Cincinnati, OH	8/29/2017	Office		5,960,610		463,488		(155,797	)		6,268,301
Husqvarna	Charlotte, NC	11/30/2017	Industrial		11,840,201		1,013,948		(221,143	)		12,633,006
AvAir	Chandler, AZ	12/28/2017	Industrial		27,357,900		—		(375,955	)		26,981,945
3M	DeKalb, IL	3/29/2018	Industrial		14,762,819		2,356,361		(363,226	)		16,755,954
Cummins	Nashville, TN	4/4/2018	Office		14,465,490		1,536,998		(165,535	)		15,836,953
Northrop Grumman Parcel	Melbourne, FL	6/21/2018	Land		329,410		—		—			329,410
				$	160,798,753	$	12,234,133	$	(6,601,484	)	$	166,431,402

Schedule Of Real Estate Property Acquisitions [Table Text Block]

During the six months ended June 30, 2018, the Company acquired the following properties: 

Property	Acquisition Date	Land		Buildings and Improvements		Tenant Origination and Absorption Costs		Above- Market Lease		Below- Market Lease			Total
3M	3/29/2018	$	758,780	$	14,004,039	$	2,356,361	$	—	$	(1,417,483	)	$	15,701,697
Cummins	4/4/2018		3,347,959		11,117,531		1,536,998		—		—			16,002,488
Northrop Grumman Parcel	6/21/2018		329,410		—		—		—		—			329,410
		$	4,436,149	$	25,121,570	$	3,893,359	$	—	$	(1,417,483	)	$	32,033,595

Schedule Of Real Estate Investment Property Purchase Price [Table Text Block]

Purchase price	$	32,033,595
Acquisition fees to affiliates		(930,000	)
Cash paid for acquisition of real estate investments	$	31,103,595

Schedule Of Lease Expiration Date [Table Text Block]

The non-cancellable lease terms of the properties acquired during the six months ended June 30, 2018 are as follows:

Property	Lease Expiration
3M	7/31/2022
Cummins	2/28/2023

Schedule Of Portfolios Asset Concentration [Table Text Block]

As of June 30, 2018, the Company’s portfolio’s asset concentration (greater than 10% of total assets) was as follows:

Property and Location	Net Carrying Value		Percentage of Total Assets
AvAir, Chandler, AZ	$	26,981,945		14.2	%

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

As of June 30, 2018, the future minimum contractual rent payments due under the Company’s non-cancelable operating leases, excluding any renewal periods, are as follows:

July through December 2018	$	6,582,221
2019		13,381,683
2020		13,524,743
2021		12,339,938
2022		10,963,883
2023		8,643,467
Thereafter		45,898,687
	$	111,334,622

Schedule Of Portfolios Revenue Concentration [Table Text Block]

The Company’s revenue concentration for the three and six months ended June 30, 2018 is as follows:

	Three Months Ended June 30, 2018					Six Months Ended June 30, 2018
Property and Location	Revenue		Percentage of Total Revenue			Revenue		Percentage of Total Revenue
AvAir, Chandler, AZ	$	653,374		14.9	%	$	1,289,146		16.4	%
3M, DeKalb, IL	$	506,229		11.5	%	$	—		—

Schedule of Finite-Lived Intangible Assets [Table Text Block]

As of June 30, 2018, the Company’s lease intangibles were as follows:

	Tenant Origination and Absorption Costs			Above-Market Leases			Below-Market Leases
Cost	$	12,234,133		$	783,115		$	(3,071,253	)
Accumulated amortization		(2,023,224	)		(150,345	)		238,676
Net amount	$	10,210,909		$	632,770		$	(2,832,577	)

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

The amortization of intangible assets over the next five years is expected to be as follows:

	Tenant Origination and Absorption Costs		Above-Market Leases		Below-Market Leases
July through December 2018	$	1,035,535	$	48,523	$	(237,196	)
2019		2,071,069		97,045		(474,391	)
2020		2,071,069		97,045		(474,391	)
2021		1,654,810		78,994		(474,391	)
2022		1,118,740		63,719		(306,829	)
2023		492,976		63,719		(78,369	)
Thereafter		1,766,710		183,725		(787,010	)
	$	10,210,909	$	632,770	$	(2,832,577	)
Weighted-average remaining amortization period		7.2 years		7.6 years		9.9 years

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INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)

6 Months Ended

Jun. 30, 2018

Equity Method Investments [Table Text Block]

The Company’s investments in unconsolidated entities are as follows:

	June 30, 2018		December 31, 2017
Santa Clara Property Tenant-in-Common Interest (“TIC Interest”)	$	10,907,699	$	11,103,547
Rich Uncles Real Estate Investment Trust I (“REIT I”)		3,256,641		3,420,475
	$	14,164,340	$	14,524,022

Equity Method Investments, Entities Equity In Earnings [Table Text Block]

The Company’s (loss) income from investments in unconsolidated entities is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
REIT I	$	(32,301	)	$	159,399	$	(27,202	)	$	167,356
TIC Interest		70,907			—		120,687			—
	$	38,606		$	159,399	$	93,485		$	167,356

RuMartin Street Santa Clara [Member]

Equity Method Investments, Summarized Financial Information [Table Text Block]

The following is summarized financial information for the Santa Clara property:

	June 30, 2018		December 31, 2017
Assets:
Real estate investments, net	$	32,164,572	$	32,587,034
Cash and cash equivalents		273,589		615,436
Other assets		244,756		103,700
Total assets	$	32,682,917	$	33,306,170
Liabilities:
Mortgage notes payable	$	14,114,248	$	14,235,256
Below-market lease, net		3,178,988		3,247,480
Other liabilities		81,687		246,085
Total liabilities		17,374,923		17,728,821
Total equity		15,307,994		15,577,349
Total liabilities and equity	$	32,682,917	$	33,306,170

	Three Months Ended June 30, 2018 (1)		Six Months Ended June 30, 2018 (1)
Total revenues	$	713,218	$	1,322,012
Expenses:
Interest expense		145,960		290,985
Depreciation and amortization		248,136		495,349
Other expenses		223,358		369,694
Total expenses		617,454		1,156,028
Net income	$	95,764	$	165,984

(1) The Company’s TIC Interest in the Santa Clara property commenced on September 28, 2017; therefore, no Santa Clara property operating results are presented for the three and six months ended June 30, 2017.

Rich Uncles Real Estate Investment Trust 1 [Member]

Equity Method Investments, Summarized Financial Information [Table Text Block]

The following is summarized financial information for REIT I:

	June 30, 2018		December 31, 2017
Assets:
Real estate investments, net	$	127,870,774	$	131,166,670
Cash and cash equivalents and restricted cash		4,606,282		6,027,807
Other assets		3,083,486		2,658,777
Total assets	$	135,560,542	$	139,853,254
Liabilities:
Mortgage notes payable, net	$	61,839,052	$	62,277,387
Below-market lease intangibles, net		3,535,926		3,966,008
Other liabilities		3,644,436		2,937,247
Total liabilities		69,019,414		69,180,642
Redeemable common stock		224,035		586,242
Total shareholders’ equity		66,317,093		70,086,370
Total liabilities and shareholders’ equity	$	135,560,542	$	139,853,254

	Three Months Ended June 30,					Six Months Ended June 30,
	2018			2017		2018			2017
Total revenues	$	3,365,163		$	3,507,951	$	6,596,381		$	6,234,218
Expenses:
Depreciation and amortization		1,409,093			1,452,354		2,857,337			2,670,428
Interest expense		631,838			761,743		1,116,711			1,222,944
Impairment of real estate investment property (1)		862,190			—		862,190			—
Other expenses		1,206,883			1,104,954		2,386,920			1,757,779
Total expenses		4,110,004			3,319,051		7,223,158			5,651,151
Other income:
Other income		—			748,514		—			748,795
Net (loss) income	$	(744,841	)	$	937,414	$	(626,777	)	$	1,331,862

(1)   During the three months ended June 30, 2018, REIT I recorded an impairment charge of $862,190 related to its investment in a property in Antioch, California due to the expiration of the tenant’s lease term at December 31, 2017 and REIT I’s subsequent difficulties encountered during the second quarter in its efforts to re-lease the property at acceptable rent rates and without incurring substantial potential tenant improvement costs. The impairment charge is less than 1% of REIT I’s total investments in real estate property and the book value of the property after the impairment charge is less than 2.0% of REIT I’s total investments in real estate property as of June 30, 2018.

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DEBT (Tables)

6 Months Ended

Jun. 30, 2018

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

As of June 30, 2018 and December 31, 2017, the Company’s mortgage notes payable consisted of the following:

	June 30, 2018							December 31, 2017
Collateral	Principal ‎Amount		Deferred ‎Loan Costs, ‎Net			Net ‎Balance		Principal ‎Amount		Deferred ‎Loan ‎Costs, ‎Net			Net ‎Balance		Contractual ‎Interest ‎Rate (1)			Effective Interest Rate (1)			Loan ‎Maturity
Accredo/Walgreen properties	$	7,065,895	$	(107,771	)	$	6,958,124	$	7,133,966	$	(124,763	)	$	7,009,203		3.95	%		3.95	%	7/1/2021
Dana property		4,671,294		(113,139	)		4,558,155		4,709,889		(125,132	)		4,584,757		4.56	%		4.56	%	4/1/2023
Six Dollar General properties		3,916,681		(135,993	)		3,780,688		3,951,846		(153,290	)		3,798,556		4.69	%		4.69	%	4/1/2022
Wyndham property (2)		5,871,600		(104,096	)		5,767,504		5,920,800		(109,936	)		5,810,864		One-month ‎LIBOR+2.05	%		4.34	%	6/5/2027
Williams Sonoma property (2)		4,658,400		(77,067	)		4,581,333		4,699,200		(85,227	)		4,613,973		One-month ‎LIBOR+2.05	%		4.05	%	6/5/2022
Omnicare property		4,386,906		(159,155	)		4,227,751		4,423,574		(169,372	)		4,254,202		4.36	%		4.36	%	5/1/2026
Harley property		6,926,045		(185,658	)		6,740,387		6,983,418		(200,811	)		6,782,607		4.25	%		4.25	%	9/1/2024
Northrop Grumman property		5,877,911		(183,229	)		5,694,682		5,945,655		(217,584	)		5,728,071		4.40	%		4.40	%	3/2/2021
EMCOR property		2,935,147		(77,682	)		2,857,465		2,955,000		(83,743	)		2,871,257		4.35	%		4.35	%	12/1/2024
exp US Services property		3,475,886		(131,916	)		3,343,970		3,505,061		(140,382	)		3,364,679		(4	)		4.25	%	11/17/2024
Husqvarna property		6,380,000		(201,883	)		6,178,117		—		—			—		(5	)		4.60	%	2/20/2028
AvAir property (3)		14,575,000		(349,657	)		14,225,343		12,000,000		(330,866	)		11,669,134		(6	)		4.84	%	3/27/2028
3M property		8,360,000		(139,889	)		8,220,111		—		—			—		One-month ‎LIBOR+2.25	%		5.09	%	3/29/2023
Cummins property		8,530,000		(162,175	)		8,367,825		—		—			—		One-month ‎LIBOR+2.25	%		5.16	%	4/4/2023
	$	87,630,765	$	(2,129,310	)	$	85,501,455	$	62,228,409	$	(1,741,106	)	$	60,487,303

(1)	Contractual interest rate represents the interest rate in effect under the mortgage note payable as of June 30, 2018. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2018 (consisting of the contractual interest rate and the effect of the interest rate swap, if applicable). For further information regarding the Company’s derivative instruments (see Note 7).
(2)	The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%.
(3)	On March 27, 2018, the Company refinanced the mortgage loan payable as of December 31, 2017 with a new loan for $14,575,000 through a nonaffiliated lender.  The loan is secured by the AvAir property and it matures on March 27, 2028.
(4)	The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate is T-Bill index plus 3.25%.
(5)	The initial contractual interest rate is 4.60% for the first five years and the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% for the second five years.
(6)	The initial contractual interest rate for the note payable outstanding as of June 30, 2018 is 4.84% for the first five-years and the greater of 4.60% or five-year TCM plus 2.45% for the second five-years.

Mortgage Loan Payable [Table Text Block]

The following were the face value, carrying amount and fair value of the Company’s mortgage notes payable (Level 3 measurement): 

	June 30, 2018						December 31, 2017
	Face Value		Carrying Value		Fair Value		Face value		Carrying Value		Fair Value
Mortgage notes payable	$	87,630,765	$	85,501,455	$	86,757,903	$	62,228,409	$	60,487,303	$	62,363,284

Schedule of Maturities of Long-term Debt [Table Text Block]

The following summarizes the future principal repayment of the Company’s mortgage notes payable and Unsecured Credit Facility as of June 30, 2018:

	Mortgage Note Payable		Unsecured Credit Facility (1)		Total
July through December 2018	$	453,113	$	—	$	453,113
2019		1,109,940		—		1,109,940
2020		1,365,278		—		1,365,278
2021		8,055,564		—		8,055,564
2022		14,432,812		—		14,432,812
2023		21,031,341		—		21,031,341
Thereafter		41,182,717		—		41,182,717
Total principal	$	87,630,765	$	—	$	87,630,765

Schedule Of Interest Expenses Reconciliation [Table Text Block]

The following is a reconciliation of the components of interest expense for the three and six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018			2017
Mortgage notes payable
Interest expense	$	1,006,398	$	184,179	$	1,829,658		$	265,837
Amortization of deferred financing costs		98,648		24,998		505,535			35,386
Unrealized (gain) loss on interest rate swaps (see Note 7)		6,235		104,633		(220,571	)		104,633
Unsecured credit facility
Interest expense		83,408		103,877		166,397			143,031
Amortization of deferred financing costs		8,571		481		12,857			1,118
Forfeited loan fee		—		20,000		—			20,000
Total interest expense	$	1,203,260	$	438,168	$	2,293,876		$	570,005

XML

INTEREST RATE SWAP DERIVATIVES (Tables)

6 Months Ended

Jun. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments [Table Text Block]

The following table summarizes the notional amount and other information related to the Company’s interest rate swaps as of June 30, 2018 and December 31, 2017.

June 30, 2018

December 31, 2017

Derivative ‎ Instruments

Number ‎of ‎Instru- ‎ ments

Notional ‎ Amount (i)

Reference ‎ Rate (ii)

Weighted ‎Average ‎Fixed ‎ pay rate

Weighted ‎Average ‎Remaining ‎ Term

Number ‎of ‎Instru- ‎ ments

Notional ‎ Amount (i)

Reference ‎ Rate (iii)

Weighted ‎Average ‎Fixed ‎ pay rate

Weighted ‎Average ‎Remaining ‎ Term

Interest Rate Swap Derivatives

4

$

27,420,000

One-month LIBOR + applicable spread/Fixed at 4.05%-5.16%

4.74

%

5.6 years

2

$

10,620,000

One-month LIBOR + applicable spread/Fixed at 4.05%-4.34%

4.21

%

7.2 years

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The following table sets forth the fair value of the Company’s derivative instruments (Level 2 measurement), as well as their classification in the condensed consolidated balance sheets:

		June 30, 2018				December 31, 2017
Derivative Instrument	Balance Sheet Location	Number of ‎Instruments	Fair Value			Number of ‎Instruments	Fair Value
Interest Rate Swaps	Asset - Interest rate swap derivatives, at fair value	2	$	326,710		2	$	7,899
Interest Rate Swaps	Liability - Interest rate swap derivatives, at fair value	2	$	(98,240	)	—	$	—

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RELATED PARTY TRANSACTIONS (Tables)

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Schedule of Related Party Transactions [Table Text Block]

Summarized below are the related party costs incurred by the Company, including those incurred pursuant to the Advisory Agreement, for the three and six months ended June 30, 2018 and 2017, respectively:

	Three Months Ended			Six Months Ended							Three Months Ended			Six Months Ended
	June 30, 2018						June 30, 2018				June 30, 2017						December 31, 2017
	Incurred			Incurred			Receivable		Payable		Incurred			Incurred			Receivable		Payable
Expensed
Asset management fees (1)	$	477,915		$	879,230		$	—	$	164,685	$	196,856		$	308,154		$	—	$	567,661
Subordinated participation fees		—			—			—		—		—			—			—		315,802
Fees to affiliates		477,915			879,230							196,858			308,154
Property management fees*		19,212			32,151			—		—		622			622			—		7,969
Directors and Officers insurance and other reimbursements**		36,083			52,716			—		657		—			—			—		—
Expense reimbursements from (to) Sponsor (2)		(293,939	)		(653,453	)		26,448		15,800		(672,904	)		(1,360,930	)		34,194		—
Waiver of asset management fees (1)		—			—			—		—		(49,214	)		(77,039	)		—		—
Capitalized:
Acquisition fees		496,358			952,358			—		22,358		882,971			1,483,571			—		—
Financing coordination fees		—			209,550			—		—		—			87,450			—		—
Reimbursable organizational and offering expenses (3)		386,053			816,297			—		3,217		529,991			1,138,121			—		15,945
							$	26,448	$	206,717							$	34,194	$	907,377

*	Property management fees are classified within property operating expenses on the condensed consolidated statements of operations.
**	Directors and officers’ insurance and other reimbursements are classified within general and administrative expenses on the condensed consolidated statements of operations.

(1)	To the extent the Advisor elects, in its sole discretion, to defer all or any portion of its monthly asset management fee, the Advisor will be deemed to have waived, not deferred, that portion up to 0.025% of the total investment value of the Company’s assets. For the three months ended June 30, 2018 and 2017, the Advisor waived zero and $49,214, respectively, of asset management fees, which are not subject to future recoupment by the Advisor and for the six months ended June 30, 2018 and 2017, the Advisor waived zero and $77,039, respectively, of asset management fees, which are not subject to future recoupment by the Advisor. In addition to amounts presented in this table, the Company also incurred asset management fees to the Advisor of $47,984 and $95,966 related to its TIC Interest in the Santa Clara property during the three and six months ended June 30, 2018, respectively, which amounts are reflected as a reduction of income recognized from investments in unconsolidated entities.
(2)	Includes payroll costs related to Company employees that answer questions from prospective stockholders. See “—Investor Relations Payroll Expense Reimbursement from Sponsor” below. The Sponsor has agreed to reimburse the Company for these investor relations payroll costs which the Sponsor considers to be offering expenses in accordance with the Advisory Agreement. The expense reimbursements from the Sponsor for the three and six months ended June 30, 2018 also include zero and $48,422, respectively, of employment related legal fees which the Sponsor also agreed to reimburse the Company. The receivables related to these costs are reflected in “Due from affiliates” in the condensed consolidated balance sheets.
(3)	As of June 30, 2018, the Sponsor had incurred $7,918,815 of organizational and offering costs on behalf of the Company. However, the Company is only obligated to reimburse the Sponsor for such organizational and offering expenses to the extent of 3% of gross offering proceeds.

XML

BUSINESS AND ORGANIZATION (Details Textual) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended
	Jun. 24, 2015	Jun. 30, 2018	Dec. 31, 2015	Jan. 19, 2018	Jan. 18, 2018	Dec. 31, 2017	Aug. 11, 2017	Jul. 15, 2015
Business And Organisation [Line Items]
Authority To Issue of Common Stock		450,000,000
Preferred Stock, Shares Authorized		50,000,000				50,000,000
Preferred Stock, Par or Stated Value Per Share		$ 0.001				$ 0.001
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest		99.00%
Limited Liability Company or Limited Partnership, Members or Limited Partners, Ownership Interest		1.00%
Stock Issued During Period, Value, New Issues		$ 27,220,462
Minimum [Member]
Business And Organisation [Line Items]
Net Asset Value Per Share				$ 10.00
Maximum [Member]
Business And Organisation [Line Items]
Net Asset Value Per Share				$ 10.05
Tenant-in-common [Member] | Real Estate Investment [Member]
Business And Organisation [Line Items]
Equity Method Investment, Ownership Percentage		72.70%
Affiliated REIT [Member] | Real Estate Investment [Member]
Business And Organisation [Line Items]
Equity Method Investment, Ownership Percentage		4.30%
Common Class S [Member]
Business And Organisation [Line Items]
Common Stock, Shares Authorized		100,000,000				100,000,000	100,000,000	10,000,000
Common Stock, Par or Stated Value Per Share		$ 0.001				$ 0.001
Stock Issued During Period, Shares, New Issues		66
Stock Issued During Period, Value, New Issues		$ 0
Net Asset Value Per Share					$ 10.05
Shares, Outstanding		3,098				3,032
Common Class C [Member]
Business And Organisation [Line Items]
Common Stock, Shares Authorized		300,000,000				300,000,000
Common Stock, Par or Stated Value Per Share		$ 0.001				$ 0.001
Stock Issued During Period, Shares, New Issues		2,710,514
Stock Issued During Period, Value, New Issues		$ 2,711
Shares, Outstanding		11,182,489				8,838,002
Common Class C [Member] | Minimum [Member]
Business And Organisation [Line Items]
Stock Issued During Period, Shares, New Issues		500
Preferred Stock [Member]
Business And Organisation [Line Items]
Preferred Stock, Shares Authorized		50,000,000
Preferred Stock, Par or Stated Value Per Share		$ 0.001
IPO [Member]
Business And Organisation [Line Items]
Common Stock, Value, Subscriptions								$ 90,000,000
DRP Offering [Member] | Common Class S [Member]
Business And Organisation [Line Items]
Stock Issued During Period, Shares, New Issues		99
Stock Issued During Period, Value, New Issues		$ 30,989
DRP Offering [Member] | Common Class C [Member]
Business And Organisation [Line Items]
Stock Issued During Period, Shares, New Issues		11,765,689
Stock Issued During Period, Value, New Issues		$ 117,771,558
DRP Offering [Member] | Distribution Reinvestment Plan [Member] | Common Class C [Member]
Business And Organisation [Line Items]
Stock Issued During Period, Shares, New Issues		584,624
Sponsor [Member]
Business And Organisation [Line Items]
Stock Issued During Period, Shares, New Issues	10,000		10,000
Shares Issued, Price Per Share	$ 10.00		$ 10.00

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Accounting Policies [Line Items]
Restricted Cash and Cash Equivalents	$ 334,471		$ 334,471		$ 944,582
Earnings Per Share, Basic and Diluted	$ (0.02)	$ 0.01	$ (0.02)	$ (0.09)
Lease Agreements [Member]
Accounting Policies [Line Items]
Restricted Cash and Cash Equivalents	$ 334,471		$ 334,471		$ 944,582
Other Commitment	$ 560,740		$ 560,740
Common Class C [Member]
Accounting Policies [Line Items]
Earnings Per Share, Basic and Diluted	$ (0.02)		$ (0.02)
Common Class S [Member]
Accounting Policies [Line Items]
Earnings Per Share, Basic and Diluted	$ (0.07)		$ (0.11)
Santa Clara Property [Member] | Lease Agreements [Member]
Accounting Policies [Line Items]
Equity Method Investment, Ownership Percentage	72.70%		72.70%

XML

CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Tenant receivables:
Straight-line rent	$ 1,604,822	$ 995,822
Tenant rent	14,607	27,460
Tenant reimbursements	498,066	239,813
Total	2,117,495	1,263,095
Accounts payable, accrued and other liabilities:
Accounts payable	71,721	244,430
Accrued expenses	1,318,931	571,308
Accrued interest payable	330,774	186,841
Unearned rent	478,383	548,266
Deferred commission payable	1,950	2,250
Investor deposits	5,000	0
Lease incentive obligation	336,624	858,389
Total	$ 2,543,383	$ 2,411,484

XML

REAL ESTATE INVESTMENTS (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Real Estate [Line Items]
Land, building and improvements	$ 160,798,753
Tenant origination and absorption costs	12,234,133	$ 8,340,774
Accumulated depreciation and amortization	(6,601,484)	(3,574,739)
Total real estate investments, net	$ 166,431,402	$ 135,235,616
Accredo Health [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Orlando, FL
Walgreens [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Stockbridge, GA
Dollar General One [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Litchfield, ME
Dollar General Two [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Wilton, ME
Dollar General Three [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Thompsontown, PA
Dollar General Four [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Mt. Gilead, OH
Dollar General Five [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Lakeside, OH
Dollar General Six [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Castalia, OH
Dana [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Cedar Park, TX
Northrop [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Melbourne, FL
Exp Us Services [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Maitland, FL
Harley [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Bedford, TX
Wyndham [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Summerlin, NV
Wiiliams Sonoma [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Summerlin, NV
Omnicare [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Richmond, VA
EMCOR [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Cincinnati, OH
Husqvarna [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Charlotte, NC
AvAir [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Chandler, AZ
3M [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	DeKalb, IL
Cummins [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Nashville, TN
Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Real Estate, Acquisition, Property Location	Melbourne, FL
Land [Member] | Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Land, building and improvements	$ 329,410
Tenant origination and absorption costs	0
Accumulated depreciation and amortization	0
Total real estate investments, net	329,410
Office Building [Member] | Accredo Health [Member]
Real Estate [Line Items]
Land, building and improvements	9,855,847
Tenant origination and absorption costs	1,053,637
Accumulated depreciation and amortization	(1,016,759)
Total real estate investments, net	9,892,725
Office Building [Member] | Northrop [Member]
Real Estate [Line Items]
Land, building and improvements	12,382,991
Tenant origination and absorption costs	1,341,199
Accumulated depreciation and amortization	(1,011,412)
Total real estate investments, net	12,712,778
Office Building [Member] | Exp Us Services [Member]
Real Estate [Line Items]
Land, building and improvements	5,920,121
Tenant origination and absorption costs	388,248
Accumulated depreciation and amortization	(280,472)
Total real estate investments, net	6,027,897
Office Building [Member] | Wyndham [Member]
Real Estate [Line Items]
Land, building and improvements	9,447,270
Tenant origination and absorption costs	669,232
Accumulated depreciation and amortization	(302,649)
Total real estate investments, net	9,813,853
Office Building [Member] | Wiiliams Sonoma [Member]
Real Estate [Line Items]
Land, building and improvements	8,079,612
Tenant origination and absorption costs	550,486
Accumulated depreciation and amortization	(278,048)
Total real estate investments, net	8,352,050
Office Building [Member] | EMCOR [Member]
Real Estate [Line Items]
Land, building and improvements	5,960,610
Tenant origination and absorption costs	463,488
Accumulated depreciation and amortization	(155,797)
Total real estate investments, net	6,268,301
Office Building [Member] | 3M [Member]
Real Estate [Line Items]
Land, building and improvements	14,762,819
Tenant origination and absorption costs	2,356,361
Accumulated depreciation and amortization	(363,226)
Total real estate investments, net	16,755,954
Office Building [Member] | Cummins [Member]
Real Estate [Line Items]
Land, building and improvements	14,465,490
Tenant origination and absorption costs	1,536,998
Accumulated depreciation and amortization	(165,535)
Total real estate investments, net	15,836,953
Office Building [Member] | Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Tenant origination and absorption costs	0
Retail Site [Member] | Walgreens [Member]
Real Estate [Line Items]
Land, building and improvements	4,147,948
Tenant origination and absorption costs	705,423
Accumulated depreciation and amortization	(669,582)
Total real estate investments, net	4,183,789
Retail Site [Member] | Dollar General One [Member]
Real Estate [Line Items]
Land, building and improvements	1,281,812
Tenant origination and absorption costs	116,302
Accumulated depreciation and amortization	(65,396)
Total real estate investments, net	1,332,718
Retail Site [Member] | Dollar General Two [Member]
Real Estate [Line Items]
Land, building and improvements	1,543,776
Tenant origination and absorption costs	140,653
Accumulated depreciation and amortization	(83,693)
Total real estate investments, net	1,600,736
Retail Site [Member] | Dollar General Three [Member]
Real Estate [Line Items]
Land, building and improvements	1,199,860
Tenant origination and absorption costs	106,730
Accumulated depreciation and amortization	(62,834)
Total real estate investments, net	1,243,756
Retail Site [Member] | Dollar General Four [Member]
Real Estate [Line Items]
Land, building and improvements	1,174,188
Tenant origination and absorption costs	111,847
Accumulated depreciation and amortization	(60,243)
Total real estate investments, net	1,225,792
Retail Site [Member] | Dollar General Five [Member]
Real Estate [Line Items]
Land, building and improvements	1,112,872
Tenant origination and absorption costs	100,857
Accumulated depreciation and amortization	(61,828)
Total real estate investments, net	1,151,901
Retail Site [Member] | Dollar General Six [Member]
Real Estate [Line Items]
Land, building and improvements	1,102,086
Tenant origination and absorption costs	86,408
Accumulated depreciation and amortization	(60,073)
Total real estate investments, net	1,128,421
Retail Site [Member] | Harley [Member]
Real Estate [Line Items]
Land, building and improvements	13,178,288
Tenant origination and absorption costs	0
Accumulated depreciation and amortization	(390,169)
Total real estate investments, net	12,788,119
Industrial [Member] | Dana [Member]
Real Estate [Line Items]
Land, building and improvements	8,392,906
Tenant origination and absorption costs	1,210,874
Accumulated depreciation and amortization	(756,306)
Total real estate investments, net	8,847,474
Industrial [Member] | Omnicare [Member]
Real Estate [Line Items]
Land, building and improvements	7,262,746
Tenant origination and absorption costs	281,442
Accumulated depreciation and amortization	(220,364)
Total real estate investments, net	7,323,824
Industrial [Member] | Husqvarna [Member]
Real Estate [Line Items]
Land, building and improvements	11,840,201
Tenant origination and absorption costs	1,013,948
Accumulated depreciation and amortization	(221,143)
Total real estate investments, net	12,633,006
Industrial [Member] | AvAir [Member]
Real Estate [Line Items]
Land, building and improvements	27,357,900
Tenant origination and absorption costs	0
Accumulated depreciation and amortization	(375,955)
Total real estate investments, net	$ 26,981,945

XML

REAL ESTATE INVESTMENTS (Details 1)	6 Months Ended
	Jun. 30, 2018 USD ($)
Real Estate [Line Items]
Payments to Acquire Real Estate	$ 32,033,595
3M [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	15,701,697
Cummins [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	16,002,488
Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	329,410
Land [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	4,436,149
Land [Member] | 3M [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	758,780
Land [Member] | Cummins [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	3,347,959
Land [Member] | Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	329,410
Buildings and Improvements [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	25,121,570
Buildings and Improvements [Member] | 3M [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	14,004,039
Buildings and Improvements [Member] | Cummins [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	11,117,531
Buildings and Improvements [Member] | Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	0
Tenant Origination and Absorption Costs [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	3,893,359
Tenant Origination and Absorption Costs [Member] | 3M [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	2,356,361
Tenant Origination and Absorption Costs [Member] | Cummins [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	1,536,998
Tenant Origination and Absorption Costs [Member] | Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	0
Above Market Lease [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	0
Above Market Lease [Member] | 3M [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	0
Above Market Lease [Member] | Cummins [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	0
Above Market Lease [Member] | Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	0
Below Market Leases [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	(1,417,483)
Below Market Leases [Member] | 3M [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	(1,417,483)
Below Market Leases [Member] | Cummins [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	0
Below Market Leases [Member] | Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Payments to Acquire Real Estate	$ 0

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REAL ESTATE INVESTMENTS (Details 2)	6 Months Ended
	Jun. 30, 2018 USD ($)
Real Estate Properties [Line Items]
Purchase price	$ 32,033,595
Acquisition fees to affiliates	(930,000)
Cash paid for acquisition of real estate investments	$ 31,103,595

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REAL ESTATE INVESTMENTS (Details 3)	6 Months Ended
	Jun. 30, 2018
3M [Member]
Lease Expiration Date	Jul. 31, 2022
Cummins [Member]
Lease Expiration Date	Feb. 28, 2023

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REAL ESTATE INVESTMENTS (Details 4) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Real Estate Investments, Net	$ 180,595,742		$ 180,595,742		$ 149,759,638
Revenues	4,383,966	$ 1,729,042	7,841,944	$ 2,589,241
AvAir, AZ [Member]
Revenues	$ 653,374		$ 1,289,146
Concentration Risk, Percentage	14.90%		16.40%
AvAir, Chandler, AZ [Member]
Real Estate Investments, Net	$ 26,981,945		$ 26,981,945
Concentration Risk, Percentage			14.20%
3M, DeKalb, IL [Member]
Revenues	$ 506,229		$ 0
Concentration Risk, Percentage	11.50%		0.00%

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REAL ESTATE INVESTMENTS (Details 5)	Jun. 30, 2018 USD ($)
July through December 2018	$ 6,582,221
2019	13,381,683
2020	13,524,743
2021	12,339,938
2022	10,963,883
2023	8,643,467
Thereafter	45,898,687
Operating Leases, Future Minimum Payments Receivable	$ 111,334,622

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REAL ESTATE INVESTMENTS (Details 6)	Jun. 30, 2018 USD ($)
Tenant origination and absorption costs [Member]
Cost	$ 12,234,133
Accumulated amortization	(2,023,224)
Net amount	10,210,909
Above-Market Leases [Member]
Cost	783,115
Accumulated amortization	(150,345)
Net amount	632,770
Below-market lease [Member]
Cost	(3,071,253)
Accumulated amortization	238,676
Net amount	$ (2,832,577)

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REAL ESTATE INVESTMENTS (Details 7)	6 Months Ended
	Jun. 30, 2018 USD ($)
Tenant Origination and Absorption Costs [Member]
Real Estate [Line Items]
July through December 2018	$ 1,035,535
2019	2,071,069
2020	2,071,069
2021	1,654,810
2022	1,118,740
2023	492,976
Thereafter	1,766,710
Total	$ 10,210,909
Weighted-Average Remaining Amortization Period	7 years 2 months 12 days
Above-Market Leases [Member]
Real Estate [Line Items]
July through December 2018	$ 48,523
2019	97,045
2020	97,045
2021	78,994
2022	63,719
2023	63,719
Thereafter	183,725
Total	$ 632,770
Weighted-Average Remaining Amortization Period	7 years 7 months 6 days
Below-market lease [Member]
Real Estate [Line Items]
July through December 2018	$ (237,196)
2019	(474,391)
2020	(474,391)
2021	(474,391)
2022	(306,829)
2023	(78,369)
Thereafter	(787,010)
Total	$ (2,832,577)
Weighted-Average Remaining Amortization Period	9 years 10 months 24 days

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REAL ESTATE INVESTMENTS (Details Textual) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
3M [Member]
Real Estate [Line Items]
Business Combination, Acquisition Related Costs		$ 501,697
Cummins [Member]
Real Estate [Line Items]
Business Combination, Acquisition Related Costs		502,488
Northrop Grumman Parcel [Member]
Real Estate [Line Items]
Business Combination, Acquisition Related Costs		33,860
Accredo and Walgreens acquisitions [Member]
Real Estate [Line Items]
Fair Value of Assets Acquired	$ 906,155	$ 929,127

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INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Equity Method Investments	$ 14,164,340	$ 14,524,022
Rich Uncles Real Estate Investment Trust 1 [Member]
Equity Method Investments	3,256,641	3,420,475
Santa Clara Property Tenant-in-Common Interest [Member]
Equity Method Investments	$ 10,907,699	$ 11,103,547

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INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income (Loss) from Equity Method Investments	$ 38,606	$ 159,399	$ 93,485	$ 167,356
RuMartin Street Santa Clara [Member]
Income (Loss) from Equity Method Investments	70,907	0	120,687	0
Rich Uncles Real Estate Investment Trust 1 [Member]
Income (Loss) from Equity Method Investments	$ (32,301)	$ 159,399	$ (27,202)	$ 167,356

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INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details 2) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Assets:
Cash and cash equivalents and restricted cash		$ 4,281,589	$ 4,404,683	$ 4,281,589	$ 4,404,683	$ 4,182,755	$ 3,677,373
Expenses:
Impairment of real estate investment property		862,190
Santa Clara Property Tenant-in-Common Interest [Member]
Assets:
Real estate investments, net		32,164,572		32,164,572		32,587,034
Cash and cash equivalents		273,589		273,589		615,436
Other assets		244,756		244,756		103,700
Total assets		32,682,917		32,682,917		33,306,170
Liabilities:
Mortgage notes payable		14,114,248		14,114,248		14,235,256
Below-market lease intangibles, net		3,178,988		3,178,988		3,247,480
Other liabilities		81,687		81,687		246,085
Total liabilities		17,374,923		17,374,923		17,728,821
Total shareholders' equity		15,307,994		15,307,994		15,577,349
Total liabilities and shareholders' equity		32,682,917		32,682,917		33,306,170
Total revenue	[1]	713,218		1,322,012
Expenses:
Depreciation and amortization	[1]	248,136		495,349
Interest expense	[1]	145,960		290,985
Other expense	[1]	223,358		369,694
Total expenses	[1]	617,454		1,156,028
Net income	[1]	95,764		165,984
Other income:
Net income	[1]	95,764		165,984
Rich Uncles Real Estate Investment Trust 1 [Member]
Assets:
Real estate investments, net		127,870,774		127,870,774		131,166,670
Cash and cash equivalents and restricted cash		4,606,282		4,606,282		6,027,807
Other assets		3,083,486		3,083,486		2,658,777
Total assets		135,560,542		135,560,542		139,853,254
Liabilities:
Mortgage notes payable		61,839,052		61,839,052		62,277,387
Below-market lease intangibles, net		3,535,926		3,535,926		3,966,008
Other liabilities		3,644,436		3,644,436		2,937,247
Total liabilities		69,019,414		69,019,414		69,180,642
Redeemable common stock		224,035		224,035		586,242
Total shareholders' equity		66,317,093		66,317,093		70,086,370
Total liabilities and shareholders' equity		135,560,542		135,560,542		$ 139,853,254
Total revenue		3,365,163	3,507,951	6,596,381	6,234,218
Expenses:
Depreciation and amortization		1,409,093	1,452,354	2,857,337	2,670,428
Interest expense		631,838	761,743	1,116,711	1,222,944
Impairment of real estate investment property	[2]	862,190	0	862,190	0
Other expense		1,206,883	1,104,954	2,386,920	1,757,779
Total expenses		4,110,004	3,319,051	7,223,158	5,651,151
Net income		(744,841)	937,414	(626,777)	1,331,862
Other income:
Other income		0	748,514	0	748,795
Net income		$ (744,841)	$ 937,414	$ (626,777)	$ 1,331,862

[1] The Company’s TIC Interest in the Santa Clara property commenced on September 28, 2017; therefore, no Santa Clara property operating results are presented for the three and six months ended June 30, 2017.

[2] During the three months ended June 30, 2018, REIT I recorded an impairment charge of $862,190 related to its investment in a property in Antioch, California due to the expiration of the tenant’s lease term at December 31, 2017 and REIT I’s subsequent difficulties encountered during the second quarter in its efforts to re-lease the property at acceptable rent rates and without incurring substantial potential tenant improvement costs. The impairment charge is less than 1% of REIT I’s total investments in real estate property and the book value of the property after the impairment charge is less than 2.0% of REIT I’s total investments in real estate property as of June 30, 2018.

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INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details Textual) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Sep. 28, 2017
Equity Method Investment Summarized Financial Information Impairment Of Real Estate Investment Property		$ 862,190
Impairment Charge less than Percentage Of Investments In real estate property				1.00%
Book Value Of Property After Impairment Charge Is Less Than Investments In Real Estate Property				2.00%
Rich Uncles Real Estate Investment Trust 1 [Member]
Equity Method Investment, Ownership Percentage		4.30%		4.30%		4.40%	72.70%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners							27.30%
Dividends		$ 68,316		$ 136,632
Equity Method Investment Summarized Financial Information Impairment Of Real Estate Investment Property	[1]	$ 862,190	$ 0	$ 862,190	$ 0
Rich Uncles Real Estate Investment Trust 1 [Member] | Hagg Lane II, LLC [Member]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners							23.40%
Rich Uncles Real Estate Investment Trust 1 [Member] | Hagg Lane III, LLC [Member]
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners							3.90%

[1] During the three months ended June 30, 2018, REIT I recorded an impairment charge of $862,190 related to its investment in a property in Antioch, California due to the expiration of the tenant’s lease term at December 31, 2017 and REIT I’s subsequent difficulties encountered during the second quarter in its efforts to re-lease the property at acceptable rent rates and without incurring substantial potential tenant improvement costs. The impairment charge is less than 1% of REIT I’s total investments in real estate property and the book value of the property after the impairment charge is less than 2.0% of REIT I’s total investments in real estate property as of June 30, 2018.

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DEBT (Details) - USD ($)		6 Months Ended
		Jun. 30, 2018	Dec. 31, 2017
Short Term Debt [LineItems]
Principal Amount		$ 87,630,765	$ 62,228,409
Deferred Loan Costs, net		(2,129,310)	(1,741,106)
Net Balance		$ 85,501,455	60,487,303
Debt Instrument, Description of Variable Rate Basis	[1],[2]	One-month LIBOR+2.05 %
Accredo/Walgreen properties [Member]
Short Term Debt [LineItems]
Principal Amount		$ 7,065,895	7,133,966
Deferred Loan Costs, net		(107,771)	(124,763)
Net Balance		$ 6,958,124	7,009,203
Contractual Interest Rate	[1]	3.95%
Effective Interest Rate	[1]	3.95%
Loan Maturity		Jul. 01, 2021
Dana property [Member]
Short Term Debt [LineItems]
Principal Amount		$ 4,671,294	4,709,889
Deferred Loan Costs, net		(113,139)	(125,132)
Net Balance		$ 4,558,155	4,584,757
Contractual Interest Rate	[1]	4.56%
Effective Interest Rate	[1]	4.56%
Loan Maturity		Apr. 01, 2023
MorSix Dollar General properties [Member]
Short Term Debt [LineItems]
Principal Amount		$ 3,916,681	3,951,846
Deferred Loan Costs, net		(135,993)	(153,290)
Net Balance		$ 3,780,688	3,798,556
Contractual Interest Rate	[1]	4.69%
Effective Interest Rate	[1]	4.69%
Loan Maturity		Apr. 01, 2022
Wyndham property [Member]
Short Term Debt [LineItems]
Principal Amount	[2]	$ 5,871,600	5,920,800
Deferred Loan Costs, net	[2]	(104,096)	(109,936)
Net Balance	[2]	$ 5,767,504	5,810,864
Effective Interest Rate	[1],[2]	4.34%
Loan Maturity	[2]	Jun. 05, 2027
Williams Sonoma property [Member]
Short Term Debt [LineItems]
Principal Amount	[2]	$ 4,658,400	4,699,200
Deferred Loan Costs, net	[2]	(77,067)	(85,227)
Net Balance	[2]	$ 4,581,333	4,613,973
Debt Instrument, Description of Variable Rate Basis	[1],[2]	One-month LIBOR+2.05 %
Effective Interest Rate	[1],[2]	4.05%
Loan Maturity	[2]	Jun. 05, 2022
Omnicare property [Member]
Short Term Debt [LineItems]
Principal Amount		$ 4,386,906	4,423,574
Deferred Loan Costs, net		(159,155)	(169,372)
Net Balance		$ 4,227,751	4,254,202
Contractual Interest Rate	[1]	4.36%
Effective Interest Rate	[1]	4.36%
Loan Maturity		May 01, 2026
Harley property [Member]
Short Term Debt [LineItems]
Principal Amount		$ 6,926,045	6,983,418
Deferred Loan Costs, net		(185,658)	(200,811)
Net Balance		$ 6,740,387	6,782,607
Contractual Interest Rate	[1]	4.25%
Effective Interest Rate	[1]	4.25%
Loan Maturity		Sep. 01, 2024
Northrop Grumman property [Member]
Short Term Debt [LineItems]
Principal Amount		$ 5,877,911	5,945,655
Deferred Loan Costs, net		(183,229)	(217,584)
Net Balance		$ 5,694,682	5,728,071
Contractual Interest Rate	[1]	4.40%
Effective Interest Rate	[1]	4.40%
Loan Maturity		Mar. 02, 2021
EMCOR property [Member]
Short Term Debt [LineItems]
Principal Amount		$ 2,935,147	2,955,000
Deferred Loan Costs, net		(77,682)	(83,743)
Net Balance		$ 2,857,465	2,871,257
Contractual Interest Rate	[1]	4.35%
Effective Interest Rate	[1]	4.35%
Loan Maturity		Dec. 01, 2024
Moexp US Services property [Member]
Short Term Debt [LineItems]
Principal Amount		$ 3,475,886	3,505,061
Deferred Loan Costs, net		(131,916)	(140,382)
Net Balance		$ 3,343,970	3,364,679
Contractual Interest Rate	[1],[3]
Effective Interest Rate	[1]	4.25%
Loan Maturity		Nov. 17, 2024
Mortgage Note Payable Eleven [Member]
Short Term Debt [LineItems]
Contractual Interest Rate	[4]
Husqvarna property [Member]
Short Term Debt [LineItems]
Principal Amount		$ 6,380,000	0
Deferred Loan Costs, net		(201,883)	0
Net Balance		$ 6,178,117	0
Effective Interest Rate	[1]	4.60%
Loan Maturity		Feb. 20, 2028
AvAir property [Member]
Short Term Debt [LineItems]
Principal Amount	[5]	$ 14,575,000	12,000,000
Deferred Loan Costs, net	[5]	(349,657)	(330,866)
Net Balance	[5]	$ 14,225,343	11,669,134
Contractual Interest Rate	[5],[6]
Effective Interest Rate	[1],[5]	4.84%
Loan Maturity	[5]	Mar. 27, 2028
3M property [Member]
Short Term Debt [LineItems]
Principal Amount		$ 8,360,000	0
Deferred Loan Costs, net		(139,889)	0
Net Balance		$ 8,220,111	0
Debt Instrument, Description of Variable Rate Basis	[1]	One-month LIBOR+2.25 %
Effective Interest Rate	[1]	5.09%
Loan Maturity		Mar. 29, 2023
Cummins property [Member]
Short Term Debt [LineItems]
Principal Amount		$ 8,530,000	0
Deferred Loan Costs, net		(162,175)	0
Net Balance		$ 8,367,825	$ 0
Debt Instrument, Description of Variable Rate Basis	[1]	One-month LIBOR+2.25 %
Effective Interest Rate	[1]	5.16%
Loan Maturity		Apr. 04, 2023

[1] Contractual interest rate represents the interest rate in effect under the mortgage note payable as of June 30, 2018. Effective interest rate is calculated as the actual interest rate in effect as of June 30, 2018 (consisting of the contractual interest rate and the effect of the interest rate swap, if applicable). For further information regarding the Company’s derivative instruments (see Note 7).

[2] The loans on each of the Williams Sonoma and Wyndham properties (collectively, the “Property”) located in Summerlin, Nevada were originated by Nevada State Bank (“Bank”). The loans are collateralized by a deed of trust and a security agreement with assignment of rents and fixture filing. In addition, the individual loans are subject to a cross collateralization and cross default agreement whereby any default under, or failure to comply with the terms of any one or both of the loans is an event of default under the terms of both loans. The value of the Property must be in an amount sufficient to maintain a loan to value ratio of no more than 60%. If the loan to value ratio is ever more than 60%, the borrower shall, upon the Bank’s written demand, reduce the principal balance of the loans so that the loan to value ratio is no more than 60%.

[3] The initial contractual interest rate is 4.25% and starting November 18, 2022, the interest rate is T-Bill index plus 3.25%.

[4] The initial contractual interest rate is 4.60% for the first five years and the greater of 4.60% or five-year Treasury Constant Maturity (“TCM”) plus 2.45% for the second five years.

[5] On March 27, 2018, the Company refinanced the mortgage loan payable as of December 31, 2017 with a new loan for $14,575,000 through a nonaffiliated lender. The loan is secured by the AvAir property and it matures on March 27, 2028.

[6] The initial contractual interest rate for the note payable outstanding as of June 30, 2018 is 4.84% for the first five-years and the greater of 4.60% or five-year TCM plus 2.45% for the second five-years.

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DEBT (Details 1) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Face Value	$ 87,630,765	$ 62,228,409
Carrying Value	85,501,455	60,487,303
Fair Value	$ 86,757,903	$ 62,363,284

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DEBT (Details 2)	Jun. 30, 2018 USD ($)
Debt Instrument [Line Items]
July through December 2018	$ 453,113
2019	1,109,940
2020	1,365,278
2021	8,055,564
2022	14,432,812
2023	21,031,341
Thereafter	41,182,717
Total principal	87,630,765
Mortgage Notes Payable [Member]
Debt Instrument [Line Items]
July through December 2018	453,113
2019	1,109,940
2020	1,365,278
2021	8,055,564
2022	14,432,812
2023	21,031,341
Thereafter	41,182,717
Total principal	87,630,765
Unsecured Credit Facility [Member]
Debt Instrument [Line Items]
July through December 2018	0	[1]
2019	0	[1]
2020	0	[1]
2021	0	[1]
2022	0	[1]
2023	0	[1]
Thereafter	0	[1]
Total principal	$ 0	[1]

[1] Any outstanding borrowings under the Unsecured Credit Facility will be due by January 26, 2019 unless the facility is extended.

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DEBT (Details 3) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Debt Instrument [Line Items]
Interest expense	$ 1,203,260	$ 438,168	$ 2,293,876	$ 570,005
Unrealized gain on interest rate swaps (see Note 7)	6,236	104,633	220,570	104,633
Secured Debt [Member]
Debt Instrument [Line Items]
Interest expense	1,006,398	184,179	1,829,658	265,837
Amortization of deferred financing costs	98,648	24,998	505,535	35,386
Unrealized gain on interest rate swaps (see Note 7)	6,235	104,633	(220,571)	104,633
Unsecured Debt [Member]
Debt Instrument [Line Items]
Interest expense	83,408	103,877	166,397	143,031
Amortization of deferred financing costs	8,571	481	12,857	1,118
Unrealized gain on interest rate swaps (see Note 7)	$ 0	$ 20,000	$ 0	$ 20,000

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DEBT (Details Textual) - USD ($)	1 Months Ended			6 Months Ended
	Jul. 31, 2018	Jul. 31, 2018	Feb. 28, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Debt Instrument [Line Items]
Unsecured Debt				$ 0		$ 12,000,000
Proceeds from Unsecured Lines of Credit				$ 9,000,000	$ 33,140,000
Subsequent Event [Member]
Debt Instrument [Line Items]
Proceeds from Unsecured Lines of Credit	$ 9,000,000	$ 9,000,000
New Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 12,000,000
New Credit Facility [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 9,000,000
Line of Credit Facility, Interest Rate Description			Under the terms of the Unsecured Credit Facility, Borrowers pay a variable rate of interest on outstanding amounts equal to one (1) percentage point over an independent index published in The Wall Street Journal based on the highest rate on corporate loans posted by at least 75% of the largest banks (the “Index”).
Line of Credit Facility, Interest Rate at Period End			6.00%
Line of Credit Facility, Interest Rate at Period Start			5.50%

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INTEREST RATE SWAP DERIVATIVES (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Derivatives, Fair Value [Line Items]
Derivative Liability, Number of Instruments Held	2	0
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Number of Instruments Held	4	2
Derivative Liability, Notional Amount	$ 27,420,000	$ 10,620,000
Derivative Variable Interest Rate Description	One-month LIBOR + applicable spread/Fixed at 4.05%-5.16%	One-month LIBOR + applicable spread/Fixed at 4.05%-4.34%
Derivative, Average Fixed Interest Rate	4.74%	4.21%
Derivative, Remaining Maturity	5 years 7 months 6 days	7 years 2 months 12 days

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INTEREST RATE SWAP DERIVATIVES (Details 1)	6 Months Ended	12 Months Ended
	Jun. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Derivatives, Fair Value [Line Items]
Derivative Liability, Number of Instruments Held	2	0
Derivative Asset	$ 326,710	$ 7,899
Derivative Liability	$ (98,240)	$ 0
Description of Location of Interest Rate Fair Value Hedge Derivative on Balance Sheet	Asset - Interest rate swap derivatives, at fair value	Liability - Interest rate swap derivatives, at fair value
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Number of Instruments Held	4	2
Derivative Asset	$ 326,710	$ 7,899
Derivative Liability	$ (98,240)	$ 0
Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Liability, Number of Instruments Held	2	2

XML

INTEREST RATE SWAP DERIVATIVES (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Derivatives, Fair Value [Line Items]
Unrealized Gain (Loss) on Derivatives	$ 6,236	$ 104,633	$ 220,570	$ 104,633

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RELATED PARTY TRANSACTIONS (Details) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Due to Affiliates		$ 206,717		$ 206,717		$ 907,377
Due from Related Parties, Current		26,448		26,448		34,194
Asset Management Fees [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties	[1]	477,915	$ 196,856	879,230	$ 308,154
Due from Related Parties	[1]	0		0		0
Due to Affiliates	[1]	164,685		164,685		567,661
Fees to affiliates [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties		477,915	196,858	879,230	308,154
Reimbursable organizational and offering expenses [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties	[2]	386,053	529,991	816,297	1,138,121
Due from Related Parties	[2]	0		0		0
Due to Affiliates	[2]	3,217		3,217		15,945
Expense reimbursements from Sponsor [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties	[3]	(293,939)	(672,904)	(653,453)	(1,360,930)
Due from Related Parties	[3]	26,448		26,448		34,194
Due to Affiliates	[3]	15,800		15,800		0
Waiver of Assets Management Fees [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties	[1]	0	(49,214)	0	(77,039)
Due from Related Parties	[1]	0		0		0
Due to Affiliates	[1]	0		0		0
Capitalized Acquisition Fees [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties		496,358	882,971	952,358	1,483,571
Due from Related Parties		0		0		0
Due to Affiliates		22,358		22,358		0
Subordinated participation fees [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties		0	0	0	0
Due from Related Parties		0		0		0
Due to Affiliates		0		0		315,802
Property management fees [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties	[4]	19,212	622	32,151	622
Due from Related Parties	[4]	0		0		0
Due to Affiliates	[4]	0		0		7,969
Capitalized Financing coordination fees [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties		0	0	209,550	87,450
Due from Related Parties		0		0		0
Due to Affiliates		0		0		0
Director and Officer Insurance Reimbursements [Member]
Related Party Transaction [Line Items]
Expenses incurred To Related Parties	[5]	36,083	$ 0	52,716	$ 0
Due from Related Parties	[5]	0		0		0
Due to Affiliates	[5]	$ 657		$ 657		$ 0

[1] To the extent the Advisor elects, in its sole discretion, to defer all or any portion of its monthly asset management fee, the Advisor will be deemed to have waived, not deferred, that portion up to 0.025% of the total investment value of the Company’s assets. For the three months ended June 30, 2018 and 2017, the Advisor waived zero and $49,214, respectively, of asset management fees, which are not subject to future recoupment by the Advisor and for the six months ended June 30, 2018 and 2017, the Advisor waived zero and $77,039, respectively, of asset management fees, which are not subject to future recoupment by the Advisor. In addition to amounts presented in this table, the Company also incurred asset management fees to the Advisor of $47,984 and $95,966 related to its TIC Interest in the Santa Clara property during the three and six months ended June 30, 2018, respectively, which amounts are reflected as a reduction of income recognized from investments in unconsolidated entities.

[2] As of June 30, 2018, the Sponsor had incurred $7,918,815 of organizational and offering costs on behalf of the Company. However, the Company is only obligated to reimburse the Sponsor for such organizational and offering expenses to the extent of 3% of gross offering proceeds.

[3] Includes payroll costs related to Company employees that answer questions from prospective stockholders. See “—Investor Relations Payroll Expense Reimbursement from Sponsor” below. The Sponsor has agreed to reimburse the Company for these investor relations payroll costs which the Sponsor considers to be offering expenses in accordance with the Advisory Agreement. The expense reimbursements from the Sponsor for the three and six months ended June 30, 2018 also include zero and $48,422, respectively, of employment related legal fees which the Sponsor also agreed to reimburse the Company. The receivables related to these costs are reflected in “Due from affiliates” in the condensed consolidated balance sheets.

[4] Property management fees are classified within property operating expenses on the condensed consolidated statements of operations.

[5] Directors and officers’ insurance and other reimbursements are classified within general and administrative expenses on the condensed consolidated statements of operations.

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RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Related Party Transaction [Line Items]
Due to Related Parties		$ 206,717		$ 206,717		$ 907,377
Property Management Fees Percentage				1.50%
Operating Expenses Reimbursement, Maximum Limit Reimbursements				Under the Company’s charter, total operating expenses of the Company are limited to the greater of 2% of average invested assets or 25% of net income for the four most recently completed fiscal quarters (the “2%/25% Limitation”).
Stock Issued During Period, Value, Issued for Services				$ 81,405
Common Class C [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Value, Issued for Services		$ 43,215	$ 35,000	$ 8	$ 65,000
Stock Issued During Period, Shares, Issued for Services		4,300	3,500	8,100	6,500
Advisor [Member]
Related Party Transaction [Line Items]
Acquisition Fees Description				The Company pays the Advisor a fee in an amount equal to 3.0% of the contract purchase price of the Company’s properties, as defined, as acquisition fees. The total of all acquisition fees and acquisition expenses shall be reasonable and shall not exceed 6.0% of the contract price of the property.
Financing Coordination Fees Percentage				1.00%
Disposition Fees Description				the Company pays the Advisor or one of its affiliates 3.0% of the contract sales price, as defined, of each property sold; provided, however, that if, in connection with such disposition, commissions are paid to third parties unaffiliated with the Advisor or its affiliates, the disposition fees paid to the Advisor, the Sponsor, their affiliates and unaffiliated third parties may not exceed the lesser of the competitive real estate commission or 6% of the contract sales price.
Leasing Commission Fees Description				the Company pays the Advisor or such affiliate leasing commissions equal to 6.0% of the rents due pursuant to such lease for the first ten years of the lease term; provided, however (i) if the term of the lease is less than ten years, such commission percentage will apply to the full term of the lease; and (ii) any rents due under a renewal of a lease of an existing tenant upon expiration of the initial lease agreement (including any extensions provided for thereunder) shall accrue a commission of 3.0% in lieu of the aforementioned 6.0% commission.
Reimbursable Organizational and Offering Expenses [Member]
Related Party Transaction [Line Items]
Due to Related Parties	[1]	$ 3,217		$ 3,217		15,945
Accrual organization and offering cost		3,532,793		$ 3,532,793
Reimbursable Organizational and Offering Expenses [Member] | Sponsor [Member]
Related Party Transaction [Line Items]
Gross Offering Proceeds Percentage				3.00%
Reimbursable Organizational and Offering Expenses [Member] | Due to Affiliates [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party				$ 3,536,010
Waiver Of Assets Management Fees [Member]
Related Party Transaction [Line Items]
Due to Related Parties	[2]	0		$ 0		0
Monthly Asset Management Fees Waive Percentage				0.025%
Related Party Transaction, Other Revenues from Transactions with Related Party					$ 77,039
Related Party Transaction, Expenses from Transactions with Related Party			$ 49,214
Asset Management Fees [Member]
Related Party Transaction [Line Items]
Due to Related Parties	[2]	164,685		$ 164,685		567,661
Related Party Transaction, Other Revenues from Transactions with Related Party				879,230	308,154
Related Party Transaction, Expenses from Transactions with Related Party		477,915	196,856
Subordinated participation fees [Member]
Related Party Transaction [Line Items]
Due to Related Parties		0		0		$ 315,802
Sponsor reimbursement [Member]
Related Party Transaction [Line Items]
Related Party Transaction, Other Revenues from Transactions with Related Party		$ 242,416	$ 672,904	553,508	$ 1,360,930
Sponsor reimbursement [Member] | Sponsor [Member] | Common Class C [Member]
Related Party Transaction [Line Items]
Stock Issued During Period, Value, Issued for Services				$ 81,405

[1] As of June 30, 2018, the Sponsor had incurred $7,918,815 of organizational and offering costs on behalf of the Company. However, the Company is only obligated to reimburse the Sponsor for such organizational and offering expenses to the extent of 3% of gross offering proceeds.

[2] To the extent the Advisor elects, in its sole discretion, to defer all or any portion of its monthly asset management fee, the Advisor will be deemed to have waived, not deferred, that portion up to 0.025% of the total investment value of the Company’s assets. For the three months ended June 30, 2018 and 2017, the Advisor waived zero and $49,214, respectively, of asset management fees, which are not subject to future recoupment by the Advisor and for the six months ended June 30, 2018 and 2017, the Advisor waived zero and $77,039, respectively, of asset management fees, which are not subject to future recoupment by the Advisor. In addition to amounts presented in this table, the Company also incurred asset management fees to the Advisor of $47,984 and $95,966 related to its TIC Interest in the Santa Clara property during the three and six months ended June 30, 2018, respectively, which amounts are reflected as a reduction of income recognized from investments in unconsolidated entities.

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COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
COMMITMENTS AND CONTINGENCIES [Line Items]
Restricted Cash and Cash Equivalents	$ 334,471	$ 944,582
Lease Agreements [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Other Commitment	560,740
Restricted Cash and Cash Equivalents	$ 334,471	$ 944,582
Lease Agreements [Member] | Santa Clara Property [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Equity Method Investment, Ownership Percentage	72.70%

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SUBSEQUENT EVENTS (Details Textual)			1 Months Ended						6 Months Ended
	Aug. 08, 2018 USD ($) shares	Jul. 02, 2018 $ / shares	Aug. 31, 2018	Jul. 31, 2018 USD ($)	Jul. 31, 2018 USD ($)	Jul. 30, 2018 $ / shares	Jul. 27, 2018 USD ($) a	Jul. 10, 2018 USD ($) ft²	Jun. 30, 2018 USD ($) shares	Jun. 30, 2017 USD ($)	Dec. 31, 2017 USD ($)
Subsequent Event [Line Items]
Stock Issued During Period, Value, New Issues									$ 27,220,462
Payments to Acquire Real Estate									31,103,595	$ 49,134,241
Proceeds from Unsecured Lines of Credit									9,000,000	$ 33,140,000
Real Estate Investment Property, at Cost									$ 173,032,886		$ 138,810,355
Common Class C [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues | shares									2,710,514
Stock Issued During Period, Value, New Issues									$ 2,711
Subsequent Event [Member]
Subsequent Event [Line Items]
Payments to Acquire Real Estate							$ 12,200,000
Dividends Payable, Amount Per Share Per Day | $ / shares		$ 18,911				$ 18,911
Dividends Payable, Date to be Paid		Aug. 27, 2018	Aug. 31, 2018			Sep. 25, 2018
Area of Land							45,000	38,794
Operating Leases, Income Statement, Contingent Revenue							$ 10,525,500
Proceeds from Issuance Initial Public Offering					$ 3,200,000
Proceeds from Unsecured Lines of Credit				$ 9,000,000	$ 9,000,000
Acquisition Fees							$ 366,000
Lease Expiration Date								Dec. 31, 2025
Acquisition Fees 1								$ 222,750
Real Estate Investment Property, at Cost								$ 7,425,000
Subsequent Event [Member] | Common Stock [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Dividend Reinvestment Plan | shares	634,236
Stock Issued During Period, Value, Dividend Reinvestment Plan	$ 6,358,113
Subsequent Event [Member] | Common Class C [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues | shares	12,236,937
Stock Issued During Period, Value, New Issues	$ 122,507,601
Subsequent Event [Member] | Class S Common stock [Member]
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues | shares	3,117
Stock Issued During Period, Value, New Issues	$ 31,170
Stock Issued During Period, Shares, Dividend Reinvestment Plan | shares	117
Stock Issued During Period, Value, Dividend Reinvestment Plan	$ 1,170