NOTES AND INTEREST RECEIVABLE

12 Months Ended

Dec. 31, 2019

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).

Borrower	Maturity Date		Interest Rate			Amount			Security
Performing loans:
Prospectus Endeavors 4, LLC		01/23		12.00	%		5,907		Secured
Prospectus Endeavors 6, LLC		10/22		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		11/20		5.00	%		2,868		Secured
Spyglass Apartments of Ennis, LP		11/20		5.00	%		5,288		Secured
Bellwether Ridge		05/20		5.00	%		3,765		Secured
Parc at Windmill Farms		05/20		5.00	%		7,602		Secured
Autumn Breeze		10/21		5.00	%		1,302		Secured
Plum Tree		10/21		5.00	%		413		Secured
Ingleside		12/21		5.00	%		1,531		Secured
RNC		09/24		5.00	%		8,802		Secured
Revolving Line of Credit Steeple Crest		10/20		5.00	%		6,665		Secured
RAI PFBL 2018 Purch Fee Note Weatherford		12/21		12.00	%		525		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. (1)		12/21		12.00	%		10,401		Unsecured
Unified Housing Foundation, Inc. (1)		06/20		12.00	%		5,314		Unsecured
Unified Housing Foundation, Inc. (1)		03/22		12.00	%		4,782		Unsecured
Unified Housing Foundation, Inc. (Lakeshore Villas) (1)		07/21		12.00	%		838		Secured
Unified Housing Foundation, Inc. (Limestone Ranch) (1)		07/21		12.00	%		773		Secured
Unified Housing Foundation, Inc. (Marquis at Vista Ridge) (1)		07/21		12.00	%		839		Secured
Unified Housing Foundation, Inc. (Timbers at the Park) (1)		07/21		12.00	%		432		Secured
Unified Housing Foundation, Inc. (Trails at White Rock) (1)		07/21		12.00	%		913		Secured
Unified Housing Foundation, Inc. (Bella Vista) (1)		08/21		12.00	%		212		Secured
Unified Housing Foundation, Inc. (1)		10/21		12.00	%		6,831		Unsecured
Other related party notes		Various		Various			3,553		Various secured interests
Other non-related party notes		Various		Various			10,276		Various secured interests
Accrued interest							8,629
Total Performing						$	122,811
Allowance for estimated losses							(1,825	)
Total						$	120,986

⁽¹⁾ Related party notes

As of December 31, 2019, the obligors on $54.0 million of the mortgage notes receivable portfolio were due from related entities. The Company recognized $6.9 million of interest income from these related party notes receivables. In addition, during the quarter ended June 30, 2019, TCI purchased notes receivables with a face value of $29.0 million (out of which $1.0 million represented accrued interest receivables) from related parties.

As of December 31, 2019, 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.