Variable Interest Entities

12 Months Ended

Dec. 31, 2021

Variable Interest Entities [Abstract]

VARIABLE INTEREST ENTITIES

NOTE 3 – VARIABLE INTEREST ENTITIES

The Company consolidates the accounts of Gvest Finance LLC, Gvest Homes I LLC, Gvest Anderson Homes LLC, Gvest Capital View Homes LLC, Gvest Hidden Oaks Homes LLC, Gvest Springlake Homes LLC, Gvest Carolinas 4 Homes LLC, Brainerd Place LLC, and Bull Creek LLC and will continue to do so until they are no longer considered VIEs. During the year ended December 31, 2021, Gvest Finance LLC formed five wholly owned subsidiaries, Gvest Anderson Homes LLC, Gvest Capital View Homes LLC, Gvest Hidden Oaks Homes LLC, Gvest Springlake Homes LLC, and Gvest Carolinas 4 Homes LLC and the Company formed two entities, Brainerd Place LLC and Bull Creek LLC, all of which are considered VIEs.

Included in the consolidated results of operations for the year ended December 31, 2021 and 2020 were net loss of $460,609 and net income of $451,876, respectively, after deducting an additional management fee equal to cash flow after debt service per the management agreement of $579,703 and $0, respectively.

The consolidated balance sheets as of December 31, 2021 and 2020 included the following amounts related to the consolidated VIEs.

	2021			2020
Assets				(As Revised**)
Investment Property		14,144,268			5,067,535
Accumulated Depreciation and Amortization		(597,650	)		(288,739	)
Net Investment Property		13,546,618			4,778,796
Cash and Cash Equivalents		98,900			9,234
Accounts Receivable, net		60,506			3,506
Other Assets		158,920			14,652
Total Assets	$	13,864,944		$	4,806,188
Liabilities and Deficit
Accounts Payable	$	169,298		$	4,969
Notes Payable		6,793,319			1,994,640
Line of Credit, $151,749 and $0 debt discount		6,200,607			3,214,916
Other Liabilities*		1,679,233			9,439
Tenant Security Deposits		-			1,499
Total Liabilities		14,842,457			5,225,463
Non-Controlling interest		(977,513	)		(419,275	)
Total Non-controlling interest in variable interest entity equity		(977,513	)		(419,275	)

*

Included in other liabilities is an intercompany balance of $1,515,715 and $0 as of December 31, 2021 and 2020, respectively. The intercompany balances have been eliminated on the consolidated balance sheet.

**

The balances as of and the results of operations for the year ended December 31, 2020 have been revised to reflect the correction of an error in the recording of the December sale of homes to Gvest Finance LLC and Gvest Homes I LLC. The Company recorded the sale of all 364 park owned homes within the ARC, Countryside, Crestview, and Maple communities, but only 305 park owned homes were sold. See Note 2 for more information.