NOTES AND INTEREST RECEIVABLE

12 Months Ended

Dec. 31, 2018

Receivables [Abstract]

NOTES AND INTEREST RECEIVABLE

 NOTE 5.      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).

	Maturity		Interest
Borrower	Date		Rate			Amount			Security
Performing loans:
H198, LLC (Las Vegas Land)		01/20		12.00	%		5,907		Secured
H198, LLC (Legacy at Pleasant Grove Land)		10/19		12.00	%		496		Secured
Oulan-Chikh Family Trust		03/21		8.00	%		174		Secured
H198, LLC (McKinney Ranch Land)		09/20		6.00	%		4,554		Secured
Forest Pines		09/19		5.00	%		2,223		Secured
Spyglass Apartments of Ennis, LP		11/19		5.00	%		5,083		Secured
Bellwether Ridge		05/20		5.00	%		3,429		Secured
Parc at Windmill Farms		05/20		5.00	%		6,066		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	%		6,369		Secured
Unified Housing Foundation, Inc. (Limestone Ranch) (1)		12/32		12.00	%		1,953		Secured
Unified Housing Foundation, Inc. (Limestone Ranch) (1)		12/32		12.00	%		2,000		Secured
Unified Housing Foundation, Inc. (Limestone Ranch) (1)		12/32		12.00	%		4,000		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	%		6,140		Secured
Unified Housing Foundation, Inc. (1)		12/19		12.00	%		10,401		Unsecured
Unified Housing Foundation, Inc. (1)		06/20		12.00	%		11,075		Unsecured
Other related party notes		Various		Various			2,290		Various secured interests
Other non-related party notes		Various		Various			1,631		Various secured interests
Accrued interest							6,771
Total Performing						$	85,366
Allowance for estimated losses							(1,825	)
Total						$	83,541

⁽¹⁾  Related party notes

⁽²⁾  An allowance was taken for estimated losses at full value of note.

As of December 31, 2018, the obligors on $49.0 million or 57.4% of the mortgage notes receivable portfolio were due from related entities. The Company recognized $5.7 million of interest income from these related party notes receivables.

As of December 31, 2018, 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.