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NOTES AND INTEREST RECEIVABLE
 12 Months Ended
Dec. 31, 2016
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).

 

As of December 31, 2016, the obligors on $67.7 million or 85% of the mortgage notes receivable portfolio were due from related entities. The Company recognized $14.2 million of interest income from these related party notes receivables.

 

As of December 31, 2016, 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.

 

Borrower   Maturity
Date		     Interest
Rate		     Amount       Security  
Performing loans:                                
     H198, LLC (Las Vegas Land)     01 /20     12.00 %   $ 5,907       Secured  
     Oulan-Chikh Family Trust     03 /21     8.00 %     174       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)     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  
     Unified Housing Foundation, Inc. (1)     06 /19     12.00 %     5,400       Unsecured  
     Other related party notes (1)     Various     Various       1,404       Various unsecured interests  
     Other non-related party notes     Various     Various       796       Various secured interests  
     Other non-related party notes     Various     Various       4,742       Various unsecured interests  
     Accrued interest                     5,479          
Total Performing                   $ 81,133          
                                 
      Allowance for estimated losses                     (1,825 )        
Total                   $ 79,308          

  

(1) Related Party notes