REAL ESTATE LOANS, NET

6 Months Ended

Jun. 30, 2023

Investment in real estate loans, net is as follows (in thousands):


	June 30, 2023		December 31, 2022
Real estate loan	$	1,000	$	1,250
Allowance for credit losses	(1,000)		(1,250)

	$	—	$	—

On June 29, 2018, we sold two hotels for an aggregate selling price of $24.9 million. We provided seller financing totaling $3.6 million on the sale of these properties under two, 3.5-year second mortgage notes with a blended interest rate of 7.38% that were further collateralized by a personal guarantee from the principal of the borrower. During the year ended December 31, 2020, we recorded an allowance for credit losses in an amount equal to the outstanding principal balance of the loans due to a borrower default caused by the negative effects of the COVID-19 pandemic. On June 1, 2021, we amended the terms and extended the maturity dates of each loan to December 31, 2022. Under the modified loan terms, interest accrues monthly at a rate of 9.00% per annum, including 5.00% payable in cash and 4.00% paid-in-kind. On September 15, 2022, we received a $0.6 million payment to repay one of the two loans in full. We also extended the maturity date of the remaining loan to December 31, 2023. During the year ended December 31, 2022, the remaining loan and underlying collateral were transferred to the control of the estate of the principal borrower. The outstanding principal balance of the remaining seller-financing loan continues to be fully reserved pending repayment by the borrower's estate. In April 2023, we received a scheduled principal payment of $0.3 million on the loan from the borrower's estate.

The seller-financing loan, net is included in Prepaid expenses and other in our Condensed Consolidated Balance Sheets at June 30, 2023 and December 31, 2022.