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Loans Held for Investment (Tables) | 12 Months Ended
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Dec. 31, 2024
Receivables [Abstract] |
Schedule of Company's Portfolio | The table below provides a summary of the Company’s loan portfolio. Carrying value represents the amortized cost of loan, net of applicable allowance for credit losses.
| December 31, 2024 |  | December 31, 2023
| Fixed Rate |  | Floating Rate (1)(2) |  | Total |  | Fixed Rate |  | Floating Rate (1)(2) |  | Total
Number of loans | 1 |  | 2 |  | 3 |  | 4 |  | 2 |  | 6
Principal balance | $ | 2,843,280 |  |  | $ | 43,059,173 |  |  | $ | 45,902,453 |  |  | $ | 44,377,373 |  |  | $ | 43,059,173 |  |  | $ | 87,436,546 |
Carrying value | $ | 2,573,280 |  |  | $ | 27,814,616 |  |  | $ | 30,387,896 |  |  | $ | 44,528,468 |  |  | $ | 33,814,996 |  |  | $ | 78,343,464 |
Fair value | $ | 2,573,280 |  |  | $ | 28,068,902 |  |  | $ | 30,642,182 |  |  | $ | 44,313,689 |  |  | $ | 34,214,046 |  |  | $ | 78,527,735 |
Weighted-average coupon rate(3) | —% |  | 19.5% |  | 19.5% |  | 13.8% |  | 20.3% |  | 15.8%
Weighted-average remaining term (years) (3) (4) | 0.00 |  | 0.10 |  | 0.10 |  | 0.76 |  | 1.10 |  | 0.87
_______________ (1)As of December 31, 2024 and 2023, these loans pay a coupon rate of Secured Overnight Financing Rate (“SOFR”) or forward-looking term rate based on SOFR (“Term SOFR”), as applicable, plus a fixed spread. Coupon rates shown were determined using average SOFR and Term SOFR of 4.5% and 4.3%, respectively, as of December 31, 2024, and 5.3% and 5.4%, respectively, as of December 31, 2023. (2)As of both December 31, 2024 and 2023, two loans were subject to a SOFR or Term SOFR floor, as applicable. (3)Excludes non-performing loans as of December 31, 2024 and 2023. (4)Represents current effective maturity as of December 31, 2024 and 2023, exclusive of any extension options available.
Schedule of Accounts, Notes, Loans and Financing Receivable | The following tables present the activities of the Company’s loan portfolio:
| Loans Held for Investment, Net |  | Loans Held for Investment through Participation Interests, Net |  | Total |
Balance, January 1, 2024 | $ | 60,458,534 |  |  | $ | 17,884,930 |  |  | $ | 78,343,464 |  |
Origination, funding and purchase of loans | 843,996 |  |  | 215,907 |  |  | 1,059,903 |  |
Principal repayments received | (42,941,496) |  |  | — |  |  | (42,941,496) |  |
Net amortization of premiums on loans | (126,278) |  |  | — |  |  | (126,278) |  |
Accrual, payment and accretion of investment-related fees and other, net | 51,579 |  |  | — |  |  | 51,579 |  |
Reversal of (provision for) credit losses | 289,560 |  |  | (6,288,836) |  |  | (5,999,276) |  |
Balance, December 31, 2024 | $ | 18,575,895 |  |  | $ | 11,812,001 |  |  | $ | 30,387,896 |  |
| Loans Held for Investment, Net |  | Loans Held for Investment through Participation Interests, Net |  | Total |
Balance, January 1, 2023 | $ | 79,082,650 |  |  | $ | 42,330,376 |  |  | $ | 121,413,026 |  |
Cumulative effect of adoption of credit loss accounting standard effective January 1, 2023 (Note 2) | (593,040) |  |  | — |  |  | (593,040) |  |
Origination and purchase of loans | 4,183,830 |  |  | 1,194,248 |  |  | 5,378,078 |  |
Principal repayments received | (21,655,810) |  |  | (20,346,058) |  |  | (42,001,868) |  |
Net amortization of premiums on loans | (915,998) |  |  | (81,411) |  |  | (997,409) |  |
Accrual, payment and accretion of investment-related fees and other, net | 232,871 |  |  | 85,047 |  |  | 317,918 |  |
Reversal of (provision for) credit losses | 124,031 |  |  | (5,297,272) |  |  | (5,173,241) |  |
Balance, December 31, 2023 | $ | 60,458,534 |  |  | $ | 17,884,930 |  |  | $ | 78,343,464 |  |
The tables below detail the types of loans in the Company’s loan portfolio, as well as the property type and geographic location of the properties securing these loans. Carrying value represents the amortized cost of loan, net of applicable allowance for credit losses.
|  | December 31, 2024 |  | December 31, 2023 |
Loan Structure |  | Principal Balance |  | Carrying Value |  | % of Total |  | Principal Balance |  | Carrying Value |  | % of Total |
Preferred equity investments |  | $ | 45,902,453 |  |  | $ | 30,387,896 |  |  | 100.0 | % |  | $ | 63,186,546 |  |  | $ | 53,973,564 |  |  | 68.9 | % |
First mortgages |  | — |  |  | — |  |  | — | % |  | 21,250,000 |  |  | 21,462,168 |  |  | 27.4 | % |
Mezzanine loans |  | — |  |  | — |  |  | — | % |  | 3,000,000 |  |  | 2,907,732 |  |  | 3.7 | % |
Total |  | $ | 45,902,453 |  |  | $ | 30,387,896 |  |  | 100.0 | % |  | $ | 87,436,546 |  |  | $ | 78,343,464 |  |  | 100.0 | % |
|  | December 31, 2024 |  | December 31, 2023
Property Type |  | Principal Balance |  | Carrying Value |  | % of Total |  | Principal Balance |  | Carrying Value |  | % of Total |
Mixed use |  | $ | 18,567,296 |  |  | $ | 18,575,895 |  |  | 61.1 | % |  | $ | 18,567,296 |  |  | $ | 18,557,439 |  |  | 23.7 | % |
Office |  | 24,491,877 |  |  | 9,238,721 |  |  | 30.4 | % |  | 24,491,877 |  |  | 15,257,557 |  |  | 19.5 | % |
Multifamily |  | 2,843,280 |  |  | 2,573,280 |  |  | 8.5 | % |  | 20,127,373 |  |  | 20,158,568 |  |  | 25.7 | % |
Infrastructure |  | — |  |  | — |  |  | — | % |  | 21,250,000 |  |  | 21,462,168 |  |  | 27.4 | % |
Student housing |  | — |  |  | — |  |  | — | % |  | 3,000,000 |  |  | 2,907,732 |  |  | 3.7 | % |
Total |  | $ | 45,902,453 |  |  | $ | 30,387,896 |  |  | 100.0 | % |  | $ | 87,436,546 |  |  | $ | 78,343,464 |  |  | 100.0 | % |
|  | December 31, 2024 |  | December 31, 2023
Geographic Location |  | Principal Balance |  | Carrying Value |  | % of Total |  | Principal Balance |  | Carrying Value |  | % of Total
United States |  |  |  |  |  |  |  |  |  |  |  |
California |  | $ | 18,567,296 |  |  | $ | 18,575,895 |  |  | 61.1 | % |  | $ | 21,567,296 |  |  | $ | 21,465,171 |  |  | 27.4 | %
New York |  | 27,335,157 |  |  | 11,812,001 |  |  | 38.9 | % |  | 27,119,250 |  |  | 17,884,930 |  |  | 22.8 | %
Utah |  | — |  |  | — |  |  | — | % |  | 21,250,000 |  |  | 21,462,168 |  |  | 27.4 | %
Georgia |  | — |  |  | — |  |  | — | % |  | 17,500,000 |  |  | 17,531,195 |  |  | 22.4 | %
Total |  | $ | 45,902,453 |  |  | $ | 30,387,896 |  |  | 100.0 | % |  | $ | 87,436,546 |  |  | $ | 78,343,464 |  |  | 100.0 | %
Schedule of Allowances of Loan Losses | The following table presents the activity in allowance for credit losses:
|  | Year Ended December 31, 2024
|  | Allowance on Non-Performing Loans |  | Allowance on Performing Loans |  | Total
|  |  | Funded |  | Unfunded |
Allowance for credit losses, beginning of period |  | $ | 9,234,321 |  |  | $ | 469,010 |  |  | $ | 8,801 |  |  | $ | 9,712,132 |
Provision for (reversal of provision for) credit losses |  | 6,288,835 |  |  | (289,559) |  |  | (2,202) |  |  | 5,997,074 |
Charge-offs |  | — |  |  | — |  |  | — |  |  | — |
Recoveries |  | — |  |  | — |  |  | — |  |  | — |
Allowance for credit losses, end of period |  | $ | 15,523,156 |  |  | $ | 179,451 |  |  | $ | 6,599 |  |  | $ | 15,709,206 |
|  | Year Ended December 31, 2023
|  | Allowance on Non-Performing Loans |  | Allowance on Performing Loans |  | Total
|  |  | Funded |  | Unfunded |
Allowance for credit losses, beginning of period |  | $ | 3,937,050 |  |  | $ | — |  |  | $ | — |  |  | $ | 3,937,050 |
Cumulative effect of adoption of ASU 2016-13 effective January 1, 2023 (Note 2) |  | — |  |  | 593,040 |  |  | 68,382 |  |  | 661,422 |
Provision for (reversal of provision for) credit losses |  | 5,297,271 |  |  | (124,030) |  |  | (59,581) |  |  | 5,113,660 |
Charge-offs |  | — |  |  | — |  |  | — |  |  | — |
Recoveries |  | — |  |  | — |  |  | — |  |  | — |
Allowance for credit losses, end of period |  | $ | 9,234,321 |  |  | $ | 469,010 |  |  | $ | 8,801 |  |  | $ | 9,712,132 |
Schedule of Financing Receivable Credit Quality Indicators | Based on a 5-point scale, the Company’s performing loans are rated “1” through “5”, from less risk to greater risk as follows:
Risk Rating |  | Description
1 |  | Very low risk
2 |  | Low risk
3 |  | Moderate/average risk
4 |  | Higher risk
5 |  | Highest risk
The following tables present the amortized cost of the Company's loan portfolio by year of origination and loan risk rating:
|  | December 31, 2024
Loan Risk Rating |  | Number of Loans |  | Amortized Cost |  | % of Total |  | Amortized Cost by Year Originated
|  |  |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | Prior
1 |  | — |  |  | $ | — |  |  | — | % |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
3 |  | — |  |  | — |  |  | — | % |  | — |  |  |  |  | — |  |  | — |  |  | — |  |  | — |
4 |  | 1 |  |  | 18,755,345 |  |  | 40.7 | % |  | — |  |  | — |  |  | 18,755,345 |  |  | — |  |  | — |  |  | — |
5 |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-performing |  | 2 |  |  | 27,335,157 |  |  | 59.3 | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27,335,157 |
|  | 3 |  |  | 46,090,502 |  |  | 100.0 | % |  | $ | — |  |  | $ | — |  |  | $ | 18,755,345 |  |  | $ | — |  |  | $ | — |  |  | $ | 27,335,157 |
Allowance for credit losses |  | (15,702,606) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total, net of allowance for credit losses |  | $ | 30,387,896 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, 2023
Loan Risk Rating |  | Number of Loans |  | Amortized Cost |  | % of Total |  | Amortized Cost by Year Originated
|  |  |  | 2023 |  | 2022 |  | 2021 |  | 2020 |  | 2019 |  | Prior
1 |  | — |  |  | $ | — |  |  | — | % |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |
3 |  | 3 |  |  | 42,130,731 |  |  | 47.9 | % |  | — |  |  |  |  | 39,195,427 |  |  | — |  |  | — |  |  | 2,935,304 |
4 |  | 1 |  |  | 18,796,818 |  |  | 21.3 | % |  | — |  |  | 18,796,818 |  |  | — |  |  | — |  |  | — |  |  | — |
5 |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-performing |  | 2 |  |  | 27,119,246 |  |  | 30.8 | % |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  | 27,119,246 |
|  | 6 |  |  | 88,046,795 |  |  | 100.0 | % |  | $ | — |  |  | $ | 18,796,818 |  |  | $ | 39,195,427 |  |  | $ | — |  |  | $ | — |  |  | $ | 30,054,550 |
Allowance for credit losses |  | (9,703,331) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total, net of allowance for credit losses |  | $ | 78,343,464 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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