NOTES AND INTEREST RECEIVABLE

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

NOTES AND INTEREST RECEIVABLE

NOTE 3. NOTES AND INTEREST RECEIVABLE

A portion of our assets are invested in mortgage notes receivable, principally secured by real estate. We may originate mortgage loans in conjunction with providing purchase money financing of property sales. Notes receivable are generally collateralized by real estate or interests in real estate and personal guarantees of the borrower and, unless noted otherwise, are so secured. Management intends to service and hold for investment the mortgage notes in our portfolio. A majority of the notes receivable provide for principal to be paid at maturity (dollars in thousands).

Borrower	Maturity Date	Interest Rate			Amount			Security
Performing loans:
H198, LLC (Las Vegas Land)	01/20		12.00	%		5,907		Secured
Unified Housing Foundation, Inc. (Echo Station) (1)	12/32		12.00	%		1,481		Secured
Unified Housing Foundation, Inc. (Lakeshore Villas) (1)	12/32		12.00	%		2,000		Secured
Unified Housing Foundation, Inc. (Lakeshore Villas) (1)	12/32		12.00	%		6,368		Secured
Unified Housing Foundation, Inc. (Limestone Canyon) (1)	12/32		12.00	%		4,640		Secured
Unified Housing Foundation, Inc. (Limestone Canyon) (1)	12/32		12.00	%		2,653		Secured
Unified Housing Foundation, Inc. (Limestone Ranch) (1)	12/32		12.00	%		6,000		Secured
Unified Housing Foundation, Inc. (Limestone Ranch) (1)	12/32		12.00	%		1,953		Secured
Unified Housing Foundation, Inc. (Parkside Crossing) (1)	12/32		12.00	%		1,936		Secured
Unified Housing Foundation, Inc. (Sendero Ridge) (1)	12/32		12.00	%		4,812		Secured
Unified Housing Foundation, Inc. (Sendero Ridge) (1)	12/32		12.00	%		4,491		Secured
Unified Housing Foundation, Inc. (Timbers of Terrell) (1)	12/32		12.00	%		1,323		Secured
Unified Housing Foundation, Inc. (Tivoli) (1)	12/32		12.00	%		7,966		Secured
Unified Housing Foundation, Inc. (1)	06/17		12.00	%		1,261		Unsecured
Unified Housing Foundation, Inc. (1)	12/17		12.00	%		1,207		Unsecured
Unified Housing Foundation, Inc. (1)	12/18		12.00	%		3,994		Unsecured
Unified Housing Foundation, Inc. (1)	12/18		12.00	%		6,407		Unsecured
Other related party notes (1)	Various		Various			1,420		Various unsecured interests
Other non-related party notes	Various		Various			496		Various secured interests
Other non-related party notes	Various		Various			503		Various unsecured interests
Accrued interest						4,558
Total Performing					$	71,376
Allowance for estimated losses						(1,825	)
Total					$	69,551

⁽¹⁾ Related party notes

As of December 31, 2015, the obligors on $62.4 million or 89.7% of the mortgage notes receivable portfolio were due from related entities. The Company recognized $6.5 million of interest income from these related party notes receivables.

As of December 31, 2015, none of the mortgage notes receivable portfolio were non-performing.

The Company has various notes receivable from Unified Housing foundation, Inc. (“UHF”). UHF is determined to be a related party due to our significant investment in the performance of the collateral secured under the notes receivable. Payments are due from surplus cash flow from operations, sale or refinancing of the underlying properties. These notes are cross collateralized to the extent that any surplus cash available from any of the properties underlying these notes will be used to repay outstanding interest and principal for the remaining notes. Furthermore, any surplus cash available from any of the properties UHF owns, besides the properties underlying these notes, can be used to repay outstanding interest and principal for these notes. The allowance on the notes was a purchase allowance that was netted against the notes when acquired.