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v3.25.2

Loans Held for Investment (Tables) | 6 Months Ended
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Jun. 30, 2025
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.
| June 30, 2025 |  | December 31, 2024
| Fixed Rate |  | Floating Rate (1)(2) |  | Total |  | Fixed Rate |  | Floating Rate (1)(2) |  | Total
Number of loans | 1 |  | 2 |  | 3 |  | 1 |  | 2 |  | 3
Principal balance | $ | 2,958,384 |  |  | $ | 44,716,617 |  |  | $ | 47,675,001 |  |  | $ | 2,843,280 |  |  | $ | 43,059,173 |  |  | $ | 45,902,453 |
Carrying value | $ | 2,623,384 |  |  | $ | 27,930,975 |  |  | $ | 30,554,359 |  |  | $ | 2,573,280 |  |  | $ | 27,814,616 |  |  | $ | 30,387,896 |
Fair value | $ | 2,623,384 |  |  | $ | 27,927,727 |  |  | $ | 30,551,111 |  |  | $ | 2,573,280 |  |  | $ | 28,068,902 |  |  | $ | 30,642,182 |
Weighted-average coupon rate(3) | —% |  | 19.32% |  | 19.32% |  | —% |  | 19.53% |  | 19.53%
Weighted-average remaining term (years) (3) (4) | 0.00 |  | 0.00 |  | 0.00 |  | 0.00 |  | 0.10 |  | 0.10
_______________ (1)As of June 30, 2025 and December 31, 2024, 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 4.32% and 4.32%, respectively, as of June 30, 2025, and 4.53% and 4.33%, respectively, as of December 31, 2024. (2)As of both June 30, 2025 and December 31, 2024, two loans were subject to a SOFR or Term SOFR floor, as applicable. (3)Excludes non-performing loans for which recovery of interest income was not probable. (4)Excludes loans that are in maturity default and represents current effective maturity as of June 30, 2025 and December 31, 2024, 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, 2025 | $ | 18,575,895 |  |  | $ | 11,812,001 |  |  | $ | 30,387,896 |  |
Origination, funding and purchase of loans | 1,657,444 |  |  | 115,104 |  |  | 1,772,548 |  |
Principal repayments received | — |  |  | — |  |  | — |  |
Net amortization of premiums on loans | (8,605) |  |  | — |  |  | (8,605) |  |
Accrual, payment and accretion of investment-related fees and other, net | 22,803 |  |  | — |  |  | 22,803 |  |
Reversal of (provision for) credit losses | 179,450 |  |  | (1,799,733) |  |  | (1,620,283) |  |
Balance, June 30, 2025 | $ | 20,426,987 |  |  | $ | 10,127,372 |  |  | $ | 30,554,359 |  |
| 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 |  |  | 45,851 |  |  | 889,847 |  |
Principal repayments received | (39,941,496) |  |  | — |  |  | (39,941,496) |  |
Net amortization of premiums on loans | (129,883) |  |  | — |  |  | (129,883) |  |
Accrual, payment and accretion of investment-related fees and other, net | 20,488 |  |  | — |  |  | 20,488 |  |
Reversal of (provision for) credit losses | 86,302 |  |  | (1,132,990) |  |  | (1,046,688) |  |
Balance, June 30, 2024 | $ | 21,337,941 |  |  | $ | 16,797,791 |  |  | $ | 38,135,732 |  |
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.
|  | June 30, 2025 |  | December 31, 2024 |
Loan Structure |  | Principal Balance |  | Carrying Value |  | % of Total |  | Principal Balance |  | Carrying Value |  | % of Total |
Preferred equity investments |  | $ | 47,675,001 |  |  | $ | 30,554,359 |  |  | 100.0 | % |  | $ | 45,902,453 |  |  | $ | 30,387,896 |  |  | 100.0 | % |
Total |  | $ | 47,675,001 |  |  | $ | 30,554,359 |  |  | 100.0 | % |  | $ | 45,902,453 |  |  | $ | 30,387,896 |  |  | 100.0 | % |
|  | June 30, 2025 |  | December 31, 2024
Property Type |  | Principal Balance |  | Carrying Value |  | % of Total |  | Principal Balance |  | Carrying Value |  | % of Total |
Mixed use |  | $ | 20,224,740 |  |  | $ | 20,426,987 |  |  | 66.8 | % |  | $ | 18,567,296 |  |  | $ | 18,575,895 |  |  | 61.1 | % |
Office |  | 24,491,877 |  |  | 7,503,988 |  |  | 24.6 | % |  | 24,491,877 |  |  | 9,238,721 |  |  | 30.4 | % |
Multifamily |  | 2,958,384 |  |  | 2,623,384 |  |  | 8.6 | % |  | 2,843,280 |  |  | 2,573,280 |  |  | 8.5 | % |
Total |  | $ | 47,675,001 |  |  | $ | 30,554,359 |  |  | 100.0 | % |  | $ | 45,902,453 |  |  | $ | 30,387,896 |  |  | 100.0 | % |
|  | June 30, 2025 |  | December 31, 2024
Geographic Location |  | Principal Balance |  | Carrying Value |  | % of Total |  | Principal Balance |  | Carrying Value |  | % of Total
United States |  |  |  |  |  |  |  |  |  |  |  |
California |  | $ | 20,224,740 |  |  | $ | 20,426,987 |  |  | 66.9 | % |  | $ | 18,567,296 |  |  | $ | 18,575,895 |  |  | 61.1 | %
New York |  | 27,450,261 |  |  | 10,127,372 |  |  | 33.1 | % |  | 27,335,157 |  |  | 11,812,001 |  |  | 38.9 | %
Total |  | $ | 47,675,001 |  |  | $ | 30,554,359 |  |  | 100.0 | % |  | $ | 45,902,453 |  |  | $ | 30,387,896 |  |  | 100.0 | %
Schedule of Allowances of Loan Losses | The following table presents the activity in allowance for credit losses:
|  | Six Months Ended June 30, 2025
|  | Allowance on Non-Performing Loans |  | Allowance on Performing Loans |  | Total
|  |  | Funded |  | Unfunded |
Allowance for credit losses, beginning of period |  | $ | 15,523,156 |  |  | $ | 179,450 |  |  | $ | 6,599 |  |  | $ | 15,709,205 |
Provision for (reversal of provision for) credit losses |  | 1,799,733 |  |  | (179,450) |  |  | (6,599) |  |  | 1,613,684 |
Charge-offs |  | — |  |  | — |  |  | — |  |  | — |
Recoveries |  | — |  |  | — |  |  | — |  |  | — |
Allowance for credit losses, end of period |  | $ | 17,322,889 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,322,889 |
|  | Six Months Ended June 30, 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 |  | 1,132,988 |  |  | (86,300) |  |  | 3,939 |  |  | 1,050,627 |
Charge-offs |  | — |  |  | — |  |  | — |  |  | — |
Recoveries |  | — |  |  | — |  |  | — |  |  | — |
Allowance for credit losses, end of period |  | $ | 10,367,309 |  |  | $ | 382,710 |  |  | $ | 12,740 |  |  | $ | 10,762,759 |
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:
|  | June 30, 2025
Loan Risk Rating |  | Number of Loans |  | Amortized Cost |  | % of Total |  | Amortized Cost by Year Originated
|  |  |  | 2025 |  | 2024 |  | 2023 |  | 2022 |  | 2021 |  | Prior
1 |  | — |  |  | $ | — |  |  | — | % |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
2 |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
3 |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
4 |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
5 |  | — |  |  | — |  |  | — | % |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-performing |  | 3 |  |  | 47,877,248 |  |  | 100.0 | % |  | — |  |  | — |  |  | — |  |  | 20,426,987 |  |  | — |  |  | 27,450,261 |
|  | 3 |  |  | 47,877,248 |  |  | 100.0 | % |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 20,426,987 |  |  | $ | — |  |  | $ | 27,450,261 |
Allowance for credit losses |  | (17,322,889) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total, net of allowance for credit losses |  | $ | 30,554,359 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | 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 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

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- Definition Tabular disclosure of financing receivables by credit quality indicator. The credit quality indicator is a statistic about the credit quality of financing receivables. Examples include, but not limited to, consumer credit risk scores, credit-rating-agency ratings, an entity's internal credit risk grades, loan-to-value ratios, collateral, collection experience and other internal metrics. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-5 + Details
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- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 + Details
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