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USE OF SPECIAL PURPOSE ENTITIES AND VARIABLE INTEREST ENTITIES (Tables)
 9 Months Ended
Sep. 30, 2025
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Condensed Consolidated Balance Sheets
The carrying values of the Company's total assets and liabilities related to the 2021-FL1 CLO and LMF 2023-1 Financing at September 30, 2025 and December 31, 2024, included the following VIE assets and liabilities:



ASSETSSeptember 30, 2025December 31, 2024
Cash, cash equivalents and restricted cash$824,398 $2,391,042 
Other assets1,315,309 — 
Accrued interest receivable4,393,005 5,861,355 
Investment related receivable10,615,094 — 
Loans held for investment, net of allowance for credit losses819,117,267 1,049,886,009 
Real estate owned, held-for-investment, net49,258,301 — 
Real estate owned, held-for-sale$8,871,841 $— 
Total Assets$894,395,215 $1,058,138,406 
LIABILITIES
Accrued interest payable$1,923,935 $2,611,416 
Collateralized loan obligations and secured financings(1)
669,775,299 828,390,189 
Other liabilities886,586 — 
Total Liabilities$672,585,820 $831,001,605 
Equity221,809,395 227,136,801 
Total liabilities and equity$894,395,215 $1,058,138,406 
(1)     The stated maturity of the collateral loan obligations per the terms of the underlying collateralized loan obligation agreement is June 14, 2039 for the 2021-FL1 CLO and the stated maturity of the secured financing per the terms of the underlying indenture is July 20, 2032.
Schedule of Loan and Borrowing Characteristics
The following tables present certain loan and borrowing characteristics of the 2021-F1 CLO and LMF 2023-1 Financing as of September 30, 2025 and December 31, 2024:

As of September 30, 2025
Collateralized Loan Obligations/FinancingsCount
Principal Value(1)
Carrying Value(2)
Wtd. Avg. Coupon(3)
Collateral (loan investments)49$836,144,479 $819,117,267 
7.77%
Collateral (REO assets)2$62,580,330 $58,130,142 N/A
Financing provided2$671,323,586 $669,775,299 
6.45%

As of December 31, 2024
Collateralized Loan Obligations/FinancingsCountPrincipal Value
Carrying Value(1)
Wtd. Avg. Coupon(2)
Collateral (loan investments)65$1,065,563,646 $1,049,886,009 
8.08%
Financing provided2$830,698,696 $828,390,189 
6.66%

(1)     The principal value for Collateral (REO assets) is the initial loan exposure
(2)     The carrying value of the collateral is net of unaccreted purchase discounts of $1,928,239 and $3,466,214 and allowance for credit loss of $14,015,792 and $11,320,220 as of September 30, 2025 and December 31, 2024, respectively. The carrying value for LMF 2023-1 Financing is net of debt issuance costs of $1,548,287 and 2,308,507 for September 30, 2025 and December 31, 2024, respectively.
(3)    Weighted average coupon for loan investments assumes applicable 30-day term SOFR of 4.22% and 4.51% as of September 30, 2025 and December 31, 2024, respectively, inclusive of weighted average interest rate floors of 1.37% and 0.63%, and spreads of 3.55% and 3.53%, respectively. Weighted average coupon for the financings assumes applicable 30-day term SOFR of 4.15% and 4.40% as of September 30, 2025 and December 31, 2024, respectively and spreads of 2.30% and 2.26% for September 30, 2025 and December 31, 2024, respectively.
Schedule of Condensed Consolidated Statements of Operations
The statement of operations related to the 2021-FL1 CLO and LMF 2023-1 Financing for the three and nine months ended September 30, 2025 and September 30, 2024 include the following income and expense items:

Statements of OperationsThree Months Ended September 30, 2025Three Months Ended September 30, 2024
Interest income$16,696,312 $28,149,522 
Interest expense(12,174,275)(19,238,862)
     Net interest income$4,522,037 $8,910,660 
Less:
Release of (provision for) credit losses32,826 (322,319)
Income from real estate owned operations1,567,335 — 
Expenses from real estate owned operations(1,411,495)— 
Depreciation and amortization from real estate owned(344,785)— 
General and administrative fees(200,614)(206,347)
     Net income$4,165,304 $8,381,994 
Statements of OperationsNine Months Ended September 30, 2025Nine Months Ended September 30, 2024
Interest income$56,057,639 $88,462,443 
Interest expense(38,457,523)(60,929,273)
Net interest income$17,600,116 $27,533,170 
Less:
Provision for credit losses(5,806,153)(3,456,487)
Income from real estate owned operations1,567,335 
Expenses from real estate owned operations(1,411,495)
Depreciation and amortization from real estate owned(483,562)— 
General and administrative fees(611,675)(719,195)
Net income$10,854,566 $23,357,488