Loans (Tables)

9 Months Ended

Sep. 30, 2016

Secured loan transactions are summarized in the following table for the nine months ended September 30, 2016 and 2015, respectively ($ in thousands).

	2016			2015
Principal, January 1	$	62,740		$	71,017
Loans funded or acquired		61,745			24,363
Principal payments received		(38,255	)		(27,345	)
Loans sold to affiliates		(2,500	)		(4,937	)
Foreclosures		(345	)		(16,312	)
Other - loans charged off against allowance		—			(65	)
Principal, September 30	$	83,385		$	46,721

Secured Loans Characteristics

Secured loans had the characteristics presented in the following table as of September 30, 2016 and December 31, 2015 ($ in thousands).

	September 30,			December 31,
	2016			2015
Number of secured loans		57			53
Secured loans – principal	$	83,385		$	62,740
Secured loans – lowest interest rate (fixed)		5.0	%		5.0	%
Secured loans – highest interest rate (fixed)		11.0	%		11.0	%

Average secured loan – principal	$	1,463		$	1,184
Average principal as percent of total principal		1.8	%		1.9	%
Average principal as percent of partners’ capital		0.9	%		0.6	%
Average principal as percent of total assets		0.8	%		0.6	%

Largest secured loan – principal	$	14,000		$	14,000
Largest principal as percent of total principal		16.8	%		22.3	%
Largest principal as percent of partners’ capital		8.1	%		7.5	%
Largest principal as percent of total assets		7.3	%		6.7	%

Smallest secured loan – principal	$	49		$	95
Smallest principal as percent of total principal		0.1	%		0.2	%
Smallest principal as percent of partners’ capital		0.1	%		0.1	%
Smallest principal as percent of total assets		0.1	%		0.1	%

Number of counties where security is located (all California)	19				20
Largest percentage of principal in one county		26.9	%		23.7	%

Number of secured loans in foreclosure status		—			1
Secured loans in foreclosure – principal	$	—		$	345

Number of secured loans with an interest reserve		—			—
Interest reserves	$	—		$	—

Secured Loans by Lien Position in the Collateral

At funding, secured loans had the following lien positions and are presented in the following table as of September 30, 2016 and December 31, 2015 ($ in thousands).

	September 30, 2016								December 31, 2015
	Loans		Principal			Percent			Loans		Principal			Percent
First trust deeds		36	$	62,173			74	%		32	$	44,078			70	%
Second trust deeds		19		17,996			22			21		18,662			30
Third trust deeds		2		3,216			4			—		—			—
Total secured loans		57	$	83,385			100	%		53		62,740			100	%
Liens due other lenders at loan closing				30,884								30,920

Total debt			$	114,269							$	93,660

Appraised property value at loan closing			$	230,821							$	178,188

Percent of total debt to appraised values (LTV) at loan closing⁽¹⁾				51.7	%							54.5	%

(1)

Based on appraised values and liens due other lenders at loan closing. The weighted-average loan-to-value (LTV) computation above does not take into account subsequent increases or decreases in property values following the loan closing, nor does it include decreases or increases of the amount owing on senior liens to other lenders.

Secured Loans by Property Type of the Collateral

Secured loans summarized by property type are presented in the following table as of September 30, 2016 and December 31, 2015 ($ in thousands).

	September 30, 2016						December 31, 2015
	Loans	Principal		Percent			Loans	Principal		Percent
Single family⁽²⁾	35	$	29,479		35	%	33	$	27,673		45	%
Multi-family	2		893	1			1		584	1
Commercial	19		52,563	63			18		34,033	53
Land	1		450	1			1		450	1
Total secured loans	57	$	83,385		100	%	53	$	62,740		100	%

(2)

Single family properties include owner-occupied and non-owner occupied 1-4 unit residential buildings, condominium units, townhouses, and condominium complexes. The single family property type as of September 30, 2016 consists of 17 loans with principal of approximately $12,221,000 that are owner occupied and 18 loans with principal of approximately $17,258,000 that are non-owner occupied. At December 31, 2015, single family property consisted of 15 loans with principal of approximately $14,157,000 that were owner occupied and 18 loans with principal of approximately $13,516,000 that were non-owner occupied.

Secured Loans Distributed within California

The distribution of secured loans outstanding by the California county in which the primary collateral is located is presented in the following table as of September 30, 2016 and December 31, 2015 ($ in thousands).

	September 30, 2016					December 31, 2015
	Unpaid Principal Balance		Percent			Unpaid Principal Balance		Percent
San Francisco Bay Area⁽³⁾
Contra Costa	$	16,724		20.1	%	$	14,327		22.8	%
San Mateo		11,099		13.3			8,008		12.8
Santa Clara		8,289		9.9			4,924		7.9
San Francisco		7,204		8.6			7,656		12.2
Alameda		3,704		4.4			920		1.5
Solano		1,875		2.3			2,575		4.1
Napa		963		1.2			976		1.6
Marin		849		1.0			674		1.1
		50,707		60.8			40,060		64.0
Other Northern California
Monterey		3,513		4.2			1,366		3.2
El Dorado		2,044		2.5			2,045		3.2
Santa Cruz		871		1.0			928		1.5
Sacramento		419		0.5			421		0.6
Calaveras		152		0.2			156		0.2
San Benito		94		0.1			95		0.1
Mariposa		49		0.1			—		—
		7,142		8.6			5,011		7.8
Total Northern California		57,849		69.4			45,071		71.8

Los Angeles & Coastal
Los Angeles		22,466		26.9			14,873		23.7
San Diego		2,300		2.8			375		0.6
Orange		666		0.8			669		1.1
Ventura		—		—			344		0.5
		25,432		30.5			16,261		25.9
Other Southern California
Kern		104		0.1			108		0.2
San Bernardino		—		—			1,300		2.1
		104		0.1			1,408		2.3
Total Southern California		25,536		30.6			17,669		28.2
Total Secured Loans Balance	$	83,385		100.0	%	$	62,740		100.0	%

(3)	Includes the Silicon Valley

Secured Loans Scheduled Maturities

Secured loans are scheduled to mature as presented in the following table ($ in thousands).

Scheduled maturities, as of September 30, 2016	Loans		Principal		Percent
2016⁽⁴⁾		2	$	283		1	%
2017		21		25,815		31
2018		9		18,693		22
2019		13		33,147		39
2020		6		3,192		4
2021		3		1,148		1
Thereafter		1		871		1
Total future maturities		55		83,149		99
Matured as of September 30, 2016		2		236		1
Total secured loan balance		57	$	83,385		100	%

(4)	Loans maturing in 2016 from October 1 to December 31.

Schedule of Financing Receivables, Non Accrual Status

Secured loans in non-accrual status are summarized in the following table as of September 30, 2016 and December 31, 2015 ($ in thousands).

	September 30,		December 31,
	2016		2015
Number of loans		1		2
Principal	$	230	$	577
Advances		2		32
Accrued interest		2		14
Loan balance	$	234	$	623
Foregone interest	$	—	$	—

By Days Past Due [Member]

Past Due Financing Receivables

Secured loans summarized by payment delinquency are presented in the following table as of September 30, 2016 and December 31, 2015 ($ in thousands).

	September 30, 2016				December 31, 2015
	Loans		Amount		Loans		Amount
Past Due
30-89 days		1	$	187		—	$	—
90-179 days		—		—		1		345
180 or more days		—		—		—		—
Total past due		1	$	187		1		345
Current		56		83,198		52		62,395
Total secured loan balance		57	$	83,385		53	$	62,740

Past Due [Member]

Past Due Financing Receivables

Secured loans past maturity are summarized in the following table as of September 30, 2016 and December 31, 2015 ($ in thousands).

	September 30,			December 31,
	2016			2015
Number of loans⁽⁵⁾		2			1
Principal	$	236		$	4,000
Advances		47			—
Accrued interest		48			85
Total secured loan balance past maturity	$	331		$	4,085
Percent of total secured loan balance		1	%		6	%

(5)

At September 30, 2016 there were two loans past maturity. Both loans were in the process of negotiating an extension agreement, and neither loan was designated impaired. At December 31, 2015, there was one loan past maturity, for which RMI 8 received all sums due per the note terms in September, 2016.

Impaired Loans [Member]

Impaired Financing Receivables

Impaired loans had the balances shown and the associated allowance for loan losses presented in the following table as of September 30, 2016 and December 31, 2015 ($ in thousands).

	September 30,		December 31,
	2016		2015
Principal	$	383	$	732
Recorded investment⁽⁶⁾	$	392	$	784
Impaired loans without allowance	$	392	$	784
Impaired loans with allowance	$	—	$	—
Allowance for loan losses, impaired loans	$	—	$	—

Number of Loans		2		3

(6)	Recorded investment is the sum of principal, advances, and interest accrued for financial reporting purposes.

Average Balances And Interest Income [Member]

Impaired Financing Receivables

Impaired loans had the average balances and interest income recognized and received in cash as presented in the following table as of, and for, the nine months ended September 30, 2016 and the year ended December 31, 2015 ($ in thousands).

	September 30,		December 31,
	2016		2015
Average recorded investment	$	588	$	10,992
Interest income recognized	$	28	$	43
Interest income received in cash	$	28	$	29