Commitments and Contingencies, Other Than Loan Commitments

3 Months Ended

Mar. 31, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies, Other Than Loan Commitments

NOTE 5 – COMMITMENTS AND CONTINGENCIES, OTHER THAN LOAN COMMITMENTS

Commitments

The company had two contractual obligations as of March 31, 2018:

• To reimburse RMC for O&O expenses (as of March 31, 2018, $3,210,028 was to be reimbursed to RMC) contingent upon future sales of units; and,

• Redemptions of members' capital scheduled of $393,124, to be paid between 2018 and 2021.

Scheduled redemptions as of March 31, 2018 are presented in the following table.

2018	$	365,958
2019		12,000
2020		12,000
2021		3,166
Total	$	393,124

Legal proceedings

In the normal course of its business, the company may become involved in legal proceedings (such as assignment of rents, bankruptcy proceedings, appointment of receivers, unlawful detainers, judicial foreclosure, etc.) to collect the debt owed under the promissory notes, to enforce the provisions of the deeds of trust, to protect its interest in the real property subject to the deeds of trust and to resolve disputes with borrowers, lenders, lien holders and mechanics. None of these actions, in and of themselves, typically would be of any material financial impact to the net income or balance sheet of the company. As of the date hereof, the company is not involved in any legal proceedings other than those that would be considered part of the normal course of business.