
						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon(1)		Remaining Term (Years)(2)
March 31, 2021
Loans held-for-investment
Senior secured loans(3)	$	484,165,249	$	484,165,249	34	100.0	%	5.1	%	2.9
	484,165,249		484,165,249		34	100.0	%	5.1	%	2.9


						Weighted Average
Loan Type	Unpaid Principal Balance		Carrying Value		Loan Count	Floating Rate Loan %		Coupon(1)		Remaining Term (Years)(2)
December 31, 2020
Loans held-for-investment
Senior secured loans(3)	$	547,345,334	$	547,345,334	40	100.0	%	5.1	%	3.1
	547,345,334		547,345,334		40	100.0	%	5.1	%	3.1

(1) Weighted average coupon assumes applicable one-month LIBOR of 0.11% and 0.14% as of March 31, 2021 and December 31, 2020, respectively, inclusive of weighted average floors of 1.54% and 1.64%, respectively.

(2) Weighted average remaining term assumes all extension options are exercised by the borrower, provided, however, that our loans may be repaid prior to such date.

(3) As of March 31, 2021, $468,945,755 of the outstanding senior secured loans were held in VIEs and $15,219,494 of the outstanding senior secured loans were held outside VIEs. As of December 31, 2020, $531,363,401 of the outstanding senior secured loans were held in VIEs and $15,981,933 of the outstanding senior secured loans were held outside VIEs.

Activity: For the three months ended March 31, 2021, the loan portfolio activity was as follows:


	Commercial Mortgage Loans Held-for-Investment



Balance at December 31, 2020	$	547,345,334
Purchases and fundings	34,888,000
Proceeds from principal payments	(98,068,085)
Balance at March 31, 2021	$	484,165,249

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 table presents the principal balance and net book value of the loan portfolio based on the Company's internal risk ratings as of March 31, 2021 and December 31, 2020:


	March 31, 2021				December 31, 2020
Risk Rating	Number of Loans	Unpaid Principal Balance		Net Carrying Value	Number of Loans	Unpaid Principal Balance	Net Carrying Value
1	—	$	—	—	—	—	—
2	10	149,871,667		149,871,667	14	168,401,366	168,401,366
3	21	293,534,594		293,534,594	20	309,726,343	309,726,343
4	3	40,758,988		40,758,988	6	69,217,625	69,217,625
5	—	—		—	—	—	—
	34	$	484,165,249	484,165,249	40	547,345,334	547,345,334

As of March 31, 2021, the average risk rating of the commercial mortgage loan portfolio was 2.7 (Moderate Risk), weighted by investment carrying value, with 91.6% of commercial loans held-for-investment rated 3 (Moderate Risk) or better by the Company's Manager.

As of December 31, 2020, the average risk rating of the commercial mortgage loan portfolio was 3.1 (Moderate Risk), weighted by investment carrying value, with 84.4% of commercial loans held-for-invested rated 3 (Moderate Risk) or better by the Company's Manager.

The decrease in average risk rating is primarily the result of commercial mortgage loans that paid off with a risk rating of "4" of $16.7 million, the purchase of $34.9 million of commercial mortgage loans with a risk rating of "2" and the migration of $31.1 million of commercial mortgage loans from a risk rating of "4" to a risk rating of "3" during the first quarter of 2021.

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 March 31, 2021 and December 31, 2020:


	March 31, 2021		December 31, 2020
Geography
Southwest	39.0	%	38.7	%
South	30.4		36.5
Midwest	19.0		16.8
Mid-Atlantic	7.0		6.2
West	4.6		1.8
Total	100.0	%	100.0	%


	March 31, 2021		December 31, 2020
Collateral Property Type
Multifamily	88.2	%	89.5	%
Retail	7.2		6.4
Office	3.7		3.3
Self-Storage	0.9		0.8
Total	100.0	%	100.0	%

We did not have any impaired loans, nonaccrual loans, or loans in maturity default as of March 31, 2021 or December 31, 2020.