The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of June 30, 2019 and December 31, 2018:



						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon⁽¹⁾		Life (Years)⁽²⁾
June 30, 2019
Loans held-for-investment
Senior secured loans⁽³⁾	$	599,770,362	$	599,770,362	47	100.0	%	6.5	%	3.8
	599,770,362		599,770,362		47	100.0	%	6.5	%	3.8



						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon⁽¹⁾		Life (Years)⁽²⁾
December 31, 2018
Loans held-for-investment
Senior secured loans⁽³⁾	$	555,172,891	$	555,172,891	44	100.0	%	6.4	%	4.1
	555,172,891		555,172,891		44	100.0	%	6.4	%	4.1


(1)	Average weighted by unpaid principal balance of loan. Weighted average coupon assumes applicable one-month LIBOR rate as of June 30, 2019 and December 31, 2018.

(2) The weighted average life of each loan is based on the expected repayment of principal assuming all extension options are exercised by the borrower.


(3)	As of June 30, 2019, $591,350,135 of the outstanding senior secured loans were held in VIEs and $8,420,227 of the outstanding senior secured are held outside VIEs. As of December 31, 2018, $550,555,503 of the outstanding senior secured loans were held in VIEs and $4,617,388 of the outstanding senior secured loans were held outside VIEs.

Activity: For the six months ended June 30, 2019, the loan portfolio activity was as follows:



	Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2018	$	555,172,891
Purchases	117,536,027
Proceeds from principal repayments	(72,938,556		)
Balance at June 30, 2019	$	599,770,362

Loan Risk Ratings: As further described in Note 2, the Company evaluates the commercial mortgage loan portfolio on a quarterly basis and assigns a risk rating based on a variety of factors. The following tables present the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of June 30, 2019 and December 31, 2018:



	June 30, 2019				December 31, 2018
Risk Rating	Number of Loans	Unpaid Principal Balance		Net Carrying Value	Number of Loans	Unpaid Principal Balance	Net Carrying Value
1	—	$	—	—	—	—	—
2	10	100,585,761		100,585,761	5	51,589,000	51,589,000
3	33	435,463,192		435,463,192	34	455,323,082	455,323,082
4	4	63,721,409		63,721,409	5	48,260,809	48,260,809
5	—	—		—	—	—	—
	47	$	599,770,362	599,770,362	44	555,172,891	555,172,891

As of June 30, 2019, the average risk rating of the commercial mortgage loan portfolio was 2.9 (Moderate Risk), weighted by investment carrying value, with 89.4% of commercial loans held-for-investment rated 3 (Moderate Risk) or better by the Company's Manager.

As of December 31, 2018 , the average risk rating of the commercial mortgage loan portfolio was 2.9 (Moderate Risk), weighted by investment carrying value, with 91.3% of commercial loans held-for-invested rated 3 (Moderate Risk) or better by the Company's Manager.

Concentration of Credit Risk: The following tables present the geographic and property types of collateral underlying the Company's commercial mortgage loans as a percentage of the loans' carrying value as of June 30, 2019 and December 31, 2018:

Loans Held-for-Investment



	June 30, 2019		December 31, 2018
Geography
Southwest	35.5	%	30.2	%
South	21.0		22.6
Midwest	17.1		20.2
Mid-Atlantic	12.3		10.3
West	7.7		10.8
Various	6.4		5.9
Total	100.0	%	100.0	%



	June 30, 2019		December 31, 2018
Collateral Property Type
Multi-Family	88.4	%	87.2	%
Office	5.6		7.6
Retail	4.2		1.2
Self-Storage	1.1		1.0
Mixed-Use	0.7		3.0
Total	100.0	%	100.0	%

We did not have any impaired loans, nonaccrual loans, or loans in maturity default as of June 30, 2019 or December 31, 2018.