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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. (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%   6,369    Secured 
Unified Housing Foundation, Inc. (Lakeshore Villas) (1)   12/32   12.00%   2,732    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. (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. (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. (Trails at White Rock) (1)   12/32   12.00%   3,815    Secured 
Unified Housing Foundation, Inc. (1)   12/19   12.00%   10,401    Unsecured 
Unified Housing Foundation, Inc. (1)   06/20   12.00%   11,074    Unsecured 
Unified Housing Foundation, Inc. (1)   12/32   12.00%   1,349    Unsecured 
Realty Advisors Management, Inc. (1)   12/24   2.28%   20,390    Unsecured 
One Realco Corporation (1,2)   01/20   3.00%   7,000    Unsecured 
Other related party notes   Various   Various    2,890    Various secured interests 
Other non-related party notes   Various   Various    1,031    Various secured interests 
Other non-related party notes   Various   Various    2,670    Various unsecured interests 
Accrued interest            11,165      
Total Performing           $140,327      
Allowance for estimated losses            (14,269)     
Total           $126,058      

 

(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 approximately $97.5 million or 75.5% of the mortgage notes receivable portfolio were due from related parties. The Company recognized $10.3 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.