NOTES AND INTEREST RECEIVABLE

12 Months Ended

Dec. 31, 2017

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, 2017, the obligors on $45.1 million or 64.3% of the mortgage notes receivable portfolio were due from related entities. The Company recognized $3.7 million of interest income from these related party notes receivables.

As of December 31, 2017, 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.

	Maturity		Interest
Borrower	Date		Rate			Amount		Security
Performing loans:
H198, LLC (Las Vegas Land)		01/20		12.00	%	$	5,907	Secured
H198, LLC (McKinney Ranch Land)		09/18		6.00	%		4,290	Secured
Oulan-Chikh Family Trust		03/21		8.00	%		174	Secured
Spyglass Apartments of Ennis		11/19		5.00	%		4,522	Secured
Bellwether Ridge		05/20		5.00	%		2,954	Secured
Parc at Windmill Farms		05/20		5.00	%		2,505	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 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. (Timbers of Terrell) (1)		12/32		12.00	%		1,323	Secured
Unified Housing Foundation, Inc. (Tivoli) (1)		12/32		12.00	%		6,138	Secured
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)		06/20		12.00	%		5,760	Unsecured
Other related party notes (1)		Various		Various			465	Various unsecured interests
Other non-related party notes		Various		Various			796	Various secured interests
Other non-related party notes		Various		Various			983	Various unsecured interests
Accrued interest							6,146
Total Performing						$	70,166

(1) Related Party notes