Equity Method Investments

12 Months Ended

Dec. 31, 2012

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

Note 5 – Equity Method Investments

The Company accounted for the acquisitions of our unconsolidated interests in properties through managing member LLCs in accordance with the provisions of the Consolidation Topic 810 of the FASB ASC. Following is a summary of the Company’s ownership interest by property as of December 31, 2012, for investments we report under the equity method of accounting.

Property	Joint Venture Interest			Managing Member LLC Interest			Indirect Equity Interest in Property
Augusta		50.00	%		50.00	%		25.00	%
Hillsboro		37.57	%		33.27	%		12.50	%

The carrying amount of the Company’s investments in unconsolidated joint ventures was $2,398,903 and $5,387,147 as of December 31, 2012 and December 31, 2011, respectively. Summary financial information for Hillsboro and Augusta Balance Sheets as of December 31, 2012 and 2011 and Operating Statements for the years ended December 31, 2012, 2011 and 2010, is as follows:

	December 31, 2012		December 31, 2011
Balance Sheet:
Real estate, net of depreciation	$	53,693,437	$	54,788,607
Other assets		1,397,388		1,632,794
Total assets	$	55,090,825	$	56,421,401
Mortgage payable	$	41,016,809	$	41,154,000
Other liabilities		816,716		803,085
Total liabilities	$	41,833,525	$	41,957,085
Stockholders’ equity		13,257,300		14,464,316
Total liabilities and stockholders’ equity	$	55,090,825	$	56,421,401

	For the Years Ended December 31,
	2012			2011			2010
Operating Statements:
Rental revenues	$	6,306,885		$	6,042,067		$	1,738,573
Operating expenses		(2,304,025	)		(2,092,807	)		(599,783	)
Income before debt service, acquisition costs, and depreciation and amortization		4,002,860			3,949,260			1,138,790
Mortgage interest		(1,710,435	)		(1,706,606	)		(497,992	)
Acquisition costs		-			-			(836,818	)
Depreciation and amortization		(1,616,355	)		(2,068,039	)		(1,126,198	)
Net income (loss)		676,070			174,615			(1,322,218	)
Net (income) loss attributable to JV partners		(585,922	)		(159,256	)		1,066,447
		90,148			15,359			(255,771	)
Amortization of deferred financing costs paid on behalf of joint ventures		(3,354	)		(3,353	)		(945	)
Equity in earnings (loss) of unconsolidated joint ventures	$	86,794		$	12,006		$	(256,716	)