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COMMERCIAL MORTGAGE LOANS HELD-FOR-INVESTMENT (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Summary of Commercial Mortgage Loans
The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of December 31, 2022 and December 31, 2021:

Weighted Average
Loan TypeUnpaid Principal BalanceCarrying ValueLoan CountFloating Rate Loan %
Coupon(1)
Term (Years)(2)
December 31, 2022
Loans held-for-investment
Senior secured loans(3)
$1,076,865,099 $1,076,148,186 71 100.0 %7.6 %3.5
     Allowance for loan lossesN/A$(4,258,668)
$1,076,865,099 $1,071,889,518 71 100.0 %7.6 %3.5
Weighted Average
Loan TypeUnpaid Principal BalanceCarrying ValueLoan CountFloating Rate Loan %
Coupon(1)
Term (Years)(2)
December 31, 2021
Loans held-for-investment
Senior secured loans(3)
$1,001,869,994 $1,001,825,294 66 100.0 %3.9 %3.7
$1,001,869,994 $1,001,825,294 66 71100.0 %3.9 %3.7

(1)    Weighted average coupon assumes applicable one-month LIBOR of 4.18% and 0.10% as of December 31, 2022 and December 31, 2021, respectively and 30-day Term SOFR of 4.19% as of December 31, 2022 inclusive of weighted average interest rate floors of 0.27% and 0.49%, respectively. As of December 31, 2022, 77.4% of the investments by total exposure earned a floating rate indexed to one-month LIBOR and 22.6% of the investments by total investment exposure earned a floating rate indexed to 30-day Term SOFR. As of December 31, 2021, 100% of the investments by total investment exposure earned a floating rate indexed to one-month LIBOR.
(2)    Weighted average 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 December 31, 2022, $996,511,403 of the outstanding senior secured loans were held in VIEs and $75,378,115 of the outstanding senior secured loans were held outside of VIEs. As of December 31, 2021, $974,025,294 of the outstanding senior secured loans were held in VIEs and $27,800,000 of the outstanding senior secured loans were held outside of VIEs.

Activity: For the years ended December 31, 2022 and December 31, 2021, the loan portfolio activity was as follows:

Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2020$547,345,334 
Purchases and advances983,694,326 
Principal payments(528,802,705)
Accretion of purchase discount46,088 
Amortization of purchase premium$(457,749)
Balance at December 31, 2021$1,001,825,294 
Purchases and advances345,158,577 
Principal repayments(270,926,723)
Accretion of purchase discount125,098 
Amortization of purchase premium(61,144)
Accretion of deferred loan fees27,084 
Provision for loan losses$(4,258,668)
Balance at December 31, 2022$1,071,889,518 
Summary of Loan Risk Ratings 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 December 31, 2022 and December 31, 2021:
December 31, 2022
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal20222021201920182017
1— $— — — — — — 
211 153,933,750 85,198,084 67,999,500 — — — 
355 852,474,681 101,654,140 672,421,907 42,077,193 16,672,623 19,668,071 
43 47,448,000 15,000,000 32,448,000 — — — 
52 23,008,668 — 12,750,000 — 6,000,000 — 
71 $1,076,865,099 201,852,224 785,619,407 42,077,193 22,672,623 19,668,071 
December 31, 2021
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal20212020201920182017
1— $— — — — — — 
240 634,438,386 596,052,235 4,920,000 33,466,151 — — 
323 342,350,405 201,402,134 6,870,561 70,566,216 43,777,862 19,688,932 
43 25,081,203 — 8,037,399 5,295,605 11,748,199 — 
5— — — — — — — 
66 1,001,869,994 797,454,369 19,827,960 109,327,972 55,526,061 19,688,932 
Schedule of Geographic Concentrations 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 December 31, 2022 and December 31, 2021:
Loans Held-for-Investment
December 31, 2022December 31, 2021
Geography
South46.6 %46.2 %
Southwest26.7 27.5 
Mid-Atlantic12.4 7.9 
Midwest8.0 4.5 
West6.3 13.9 
Total100.0 %100.0 %

December 31, 2022December 31, 2021
Collateral Property Type
Multifamily89.6 %92.0 %
Healthcare6.4 — 
Self-Storage1.8 5.2 
Retail1.6 1.7 
Office0.6 1.1 
Total100.0 %100.0 %
Schedule of Allowance for Loan Losses The following table presents the changes for the years ended December 31, 2022 and December 31, 2021 in the provision for credit losses on loans held-for-investment.
Year ended
December 31, 2022December 31, 2021
Allowance for loan losses at beginning of period$— $— 
Provision for loan losses4,258,668 — 
Allowance for loan losses at end of period 4,258,668 $—