INVESTMENT IN REAL ESTATE

3 Months Ended

Sep. 30, 2017

NOTE 3 – INVESTMENT IN REAL ESTATE

Investment in real estate consisted of the following:

As of	September 30, 2017		June 30, 2017
Land	$	25,033,000	$	25,033,000
Buildings, improvements and equipment		67,076,000		66,804,000
Accumulated depreciation		(37,428,000)		(36,853,000)
Investment in real estate, net	$	54,681,000	$	54,984,000

In July 2015, the Company purchased residential house in Los Angeles, California as a strategic asset for $1,975,000 in cash. In August 2016, the Company obtained a mortgage note payable on the house in the amount of $1,000,000. The note has an adjustable interest rate of 3.7% as of September 30, 2017 and requires interest only payments for the first twenty three months with a balloon payment at maturity in August 2018.