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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).

 

      Borrower   Maturity Date     Interest Rate     Amount     Security  
Performing loans:                            
H198, LLC (Las Vegas Land)     01 /20     12.00 %   $ 5,907     Secured
Leman Development, Ltd (2)     N/A     0.00 %     1,500     Unsecured
Oulan-Chikh Family Trust     03 /21     8.00 %     174     Secured
Unified Housing Foundation, Inc. (Cliffs of El Dorado) (1)     12 /32     12.00 %     —     Secured
Unified Housing Foundation, Inc. (Echo Station) (1)     12 /32     12.00 %     1,481     Secured
Unified Housing Foundation, Inc. (Inwood on the Park) (1)     12 /32     12.00 %     3,639     Secured
Unified Housing Foundation, Inc. (Kensington Park) (1)     12 /32     12.00 %     3,933     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 %     9,101     Secured
Unified Housing Foundation, Inc. (Limestone Canyon) (1)     12 /32     12.00 %     —     Secured
Unified Housing Foundation, Inc. (Limestone Canyon) (1)     12 /32     12.00 %     —     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 %     6,000     Secured
Unified Housing Foundation, Inc. (Parkside Crossing) (1)     12 /32     12.00 %     —     Secured
Unified Housing Foundation, Inc. (Reserve at White Rock Phase I) (1)     12 /32     12.00 %     2,485     Secured
Unified Housing Foundation, Inc. (Reserve at White Rock Phase II) (1)     12 /32     12.00 %     2,555     Secured
Unified Housing Foundation, Inc. (Sendero Ridge) (1)     12 /32     12.00 %     —     Secured
Unified Housing Foundation, Inc. (Sendero Ridge) (1)     12 /32     12.00 %     —     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 %     7,965     Secured
Unified Housing Foundation, Inc. (Trails at White Rock) (1)     12 /32     12.00 %     3,815     Secured
Unified Housing Foundation, Inc. (1)     12 /17     12.00 %     —     Unsecured
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
Unified Housing Foundation, Inc. (1)     12 /16     12.00 %     —     Unsecured
Unified Housing Foundation, Inc. (1)     06 /19     12.00 %     —     Unsecured
Other related party notes     Various     Various       1,349     Various secured interests
Other related party notes     Various     Various       465     Various unsecured interests
Other non-related party notes     Various     Various       3,466     Various secured interests
Other non-related party notes     Various     Various       15,252     Various unsecured interests
Accrued interest                     7,249      
Total Performing                   $ 97,775      
                             
Non- Performing                        
One Realco Corporation (1,2)     01/17       3.00%        7,000       Unsecured
Realty Advisors Management, Inc. (1)     12/16       2.28%        20,387       Unsecured  
Accrued Interest               2,703         
Total Non-Performing                $ 30,090       Unsecured  
                             
Allowance for estimated losses                     (15,770 )    
Total                   $ 112,095      

 

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

 

As of December 31, 2017, the obligors on $118.4 million or 88.2% of the mortgage notes receivable portfolio were due from related parties. The Company recognized $12.4 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.