INVESTMENT IN REAL ESTATE

6 Months Ended

Dec. 31, 2017

NOTE 3 – INVESTMENT IN REAL ESTATE

Investment in real estate consisted of the following:

As of	December 31, 2017		June 30, 2017
Land	$	25,033,000	$	25,033,000
Buildings, improvements and equipment		67,382,000		66,804,000
Accumulated depreciation		(38,013,000)		(36,853,000)
Investment in real estate, net	$	54,402,000	$	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 5.25% as of December 31, 2017 and requires interest only payments for the first twenty-three months with a balloon payment at maturity in August 2018.