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COMMERCIAL MORTGAGE LOAN HELD-FOR-INVESTMENT (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Commercial Mortgage Loans
The following tables summarize certain characteristics of the Company's investments in commercial mortgage loans as of December 31, 2024 and December 31, 2023:

Weighted Average
Loan TypeUnpaid Principal Balance
Carrying Value(1)
Loan CountFloating Rate Loan %
Coupon(2)
Term (Years)(3)
December 31, 2024
Loans held-for-investment
Senior secured loans(4)
$1,065,563,646 $1,060,123,298 65 100.0 %8.1 %2.1
     Allowance for credit lossesN/A$(11,320,220)
$1,065,563,646 $1,048,803,078 65 100.0 %8.1 %2.1

Weighted Average
Loan TypeUnpaid Principal BalanceCarrying ValueLoan CountFloating Rate Loan %
Coupon(1)
Term (Years)(2)
December 31, 2023
Loans held-for-investment
Senior secured loans(4)
$1,397,385,160 $1,389,940,203 88 100.0 %8.9 %2.9
N/A$(6,059,006)
$1,397,385,160 $1,383,881,197 88 100.0 %8.9 %2.9

(1)    Carrying Value includes $3,466,214 and $7,000,863 in unaccreted purchase discounts as of December 31, 2024 and December 31, 2023, respectively.
(2)    Weighted average coupon assumes applicable 30-day term SOFR of 4.51% and 5.33% as of December 31, 2024 and December 31, 2023, respectively, inclusive of weighted average interest rate floor of 0.63% and 0.38%, respectively. As of December 31, 2024 and December 31, 2023, 100.0% of the investments by total investment exposure earned a floating rate indexed to 30-day term SOFR.
(3)    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.
(4)    As of December 31, 2024, $1,049,886,009 of the outstanding senior secured loans were held in VIEs and $(1,082,931) of the outstanding senior secured loans were held outside of VIEs. As of December 31, 2023, $1,375,277,312 of the outstanding senior secured loans were held in VIEs and $8,603,886 of the outstanding senior secured loans were held outside of VIEs.

Activity: For the years ended December 31, 2024 and December 31, 2023, the loan portfolio activity was as follows:
Commercial Mortgage Loans Held-for-Investment
Balance at December 31, 2022$1,071,889,518 
Purchases and advances594,201,680 
Principal payments(277,481,511)
Accretion of purchase discount1,070,701 
Amortization of purchase premium(19,253)
Accretion of deferred loan fees292,073 
Cumulative-effect adjustment upon adoption of ASU 2013-16(3,549,501)
Provision for credit losses(2,522,510)
Balance at December 31, 2023$1,383,881,197 
Purchases and advances58,423,744 
Principal repayments(391,025,468)
Origination and other loan fees(1,487,623)
Accretion of purchase discount3,534,649 
Accretion of deferred loan fees737,793 
Provision for credit losses(5,261,214)
Balance at December 31, 2024$1,048,803,078 
Schedule 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, 2024 and December 31, 2023:
December 31, 2024
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal2024202320222021
1— $— $— $— $— $— 
23 57,840,000 27,048,495 — 30,416,761 — 
340 616,637,103 31,019,735 17,973,555 266,895,843 294,277,177 
416 292,826,616 — — 140,183,307 147,641,857 
56 98,259,927 — — 74,158,849 19,187,499 
65 $1,065,563,646 $58,068,230 $17,973,555 $511,654,760 $461,106,533 

December 31, 2023
Amortized Cost by Year of Origination
Risk RatingNumber of LoansOutstanding Principal2023202220212019
1— $— $— $— $— $— 
23 37,720,000 — 37,276,159 — — 
367 1,019,844,272 17,887,019 449,921,414 542,010,684 — 
416 294,150,124 — 134,664,646 156,450,510 — 
52 45,670,764 — — 8,889,177 36,781,588 
88 $1,397,385,160 $17,887,019 $621,862,219 $707,350,371 $36,781,588 
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, 2024 and December 31, 2023:
Loans Held-for-Investment
December 31, 2024December 31, 2023
Geography
South36.6 %43.5 %
Southwest32.9 29.4 
Mid-Atlantic16.1 15.0 
Midwest7.7 7.9 
West6.7 4.2 
Total100.0 %100.0 %

December 31, 2024December 31, 2023
Collateral Property Type
Multifamily92.3 %94.0 %
Healthcare7.1 5.5 
Self-Storage0.6 0.5 
Total100.0 %100.0 %
Schedule of Allowance for Loan Losses
The following table presents the changes for the years ended December 31, 2024 and December 31, 2023 in the provision for credit losses on loans held-for-investment.

Year ended
December 31, 2024December 31, 2023
Allowance for credit losses at beginning of period$6,059,006 $4,258,668 
Cumulative-effect adjustment upon adoption of ASU 2016-13— 3,549,501 
Provision for credit losses5,261,214 2,522,510 
Charge offs— (4,271,673)
Allowance for credit losses at end of period $11,320,220 $6,059,006 


The following table presents the changes for the years ended December 31, 2024 and December 31, 2023 in the provision for credit losses on the unfunded commitments of the Company's loans held-for-investment:

Year ended
December 31, 2024December 31, 2023
Allowance for credit losses at beginning of period$43,647 $— 
Cumulative-effect adjustment upon adoption of ASU 2016-13— 41,939 
Provision for credit losses13,907 1,708 
Allowance for credit losses at end of period$57,554 $43,647 

The following tables presents the allowance for credit losses for loans held for investment:
December 31, 2024
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$7,544,969 $3,775,251 $11,320,220 
Unfunded loan commitments57,554 — 57,554 
Total allowance for credit losses$7,602,523 $3,775,251 $11,377,774 
Total unpaid principal balance$967,303,719 $98,259,927 $1,065,563,646 

December 31, 2023
General ReserveSpecific ReserveTotal Reserve
Allowance for credit losses:
Loans held for investment$6,059,006 $— $6,059,006 
Unfunded loan commitments43,647 — 43,647 
Total allowance for credit losses$6,102,653 $— $6,102,653 
Total unpaid principal balance$1,397,385,160 $— $1,397,385,160