NOTE PAYABLE

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

NOTE PAYABLE

Note 6 – NOTE PAYABLE

Grand Woods has a note payable (“the Note”) that was used for the purchase and development of property. The Note has a 4% interest rate and matures November 23, 2026. The Note has scheduled payments of principal and interest in the amount of $16,034 per month, with a balloon payment of any unpaid principal balance due on November 23, 2026. The balance of the Note at September 30, 2024, and December 31, 2023, is $1,194,878 and $1,300,872, respectively, of which $146,667 is classified as current at September 30, 2024. Interest paid on the Note, in the nine months ended September 30, 2024 and 2023 totaled $38,314 and $42,386, respectively. The Note is secured by the underlying property and a $1,200,000 guaranty issued by the Company. Covenants of the Note include a pay down requirement that states that sales of parcels will require a pay down on the loan of 90% of the net proceeds received from the purchaser less capital gains tax obligation. The remaining 10% shall be held in an operating reserve account for operating expenses and the use in payment of taxes. No distributions to partners, except for taxes, are permitted throughout the term of the loan. The intent of the Grand Woods investment manager and members is that proceeds from the sale of all, or part of, the property will be used to reduce or eliminate the Note. The Company does not anticipate the need to perform on the guaranty of the Note.

Below is a schedule of future principal payments on the outstanding Note at September 30, 2024:

Years Ending December 31,	Principal Payments
2024	$	36,142
2025	148,155
2026	1,010,581
Total	$	1,194,878