Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2020

Fair Value Of Marketable Securities [Table Text Block]

The following tables present fair value measurements of marketable securities, by major class, as of March 31, 2020, according to the fair value hierarchy:



	March 31, 2020
	Fair Value Measurements
	Level 1		Level 2		Level 3		Total
Marketable Securities:
Preferred stock	$	1,028,189	$	—	$	—	$	1,028,189
Bonds	—		2,462,205		—		2,462,205
Total	$	1,028,189	$	2,462,205	$	—	$	3,490,394

Marketable Securities

The following table presents the activities of the marketable securities for the periods presented.



	Three Months Ended March 31,
	2020			2019
Beginning balance	$	—		$	—
Purchases	3,354,442			—
Proceeds from sale	(48,073		)	—
Net unrealized gains on marketable securities	192,919			—
Reclassification of realized gains ⁽²⁾	(8,894		)	—
Ending balance	$	3,490,394		$	—

Fair Value Measurements, Nonrecurring

The following table presents the carrying value, which represents the principal amount outstanding, adjusted for the accretion of purchase discounts on loans and exit fees, and the amortization of purchase premiums on loans and origination fees, and estimated fair value of the Company’s financial instruments that are not carried at fair value on the consolidated balance sheets:



		March 31, 2020							December 31, 2019
	Level	Principal Amount		Carrying Value			Fair Value		Principal Amount		Carrying Value		Fair Value
Loans:
Loans held for investment, net	3	$	398,694,704	$	400,076,940		$	395,581,145	$	374,267,430	$	375,462,222	$	375,956,154
Loans held for investment acquired through participation, net	3	3,992,734		4,037,567			4,028,233		3,120,887		3,150,546		3,204,261
Allowance for loan losses		—		(1,144,994		)	—		—		—		—
Total loans		$	402,687,438	$	402,969,513		$	399,609,378	$	377,388,317	$	378,612,768	$	379,160,415
Liabilities:
Obligations under participation agreements	3	$	67,624,467	$	67,670,405		$	59,524,887	$	102,564,795	$	103,186,327	$	103,188,783
Mortgage loan payable	3	44,481,855		44,687,123			44,813,764		44,614,480		44,753,633		44,947,378
Repurchase agreement payable	3	92,546,529		91,352,312			92,546,529		81,134,436		79,608,437		81,134,436
Revolving credit facility payable	3	35,000,000		34,930,844			35,000,000		—		—		—
Total liabilities		$	239,652,851	$	238,640,684		$	231,885,180	$	228,313,711	$	227,548,397	$	229,270,597

Fair Value Measurement Inputs and Valuation Techniques

The following table summarizes the valuation techniques and significant unobservable inputs used by the Company to value the Level 3 loans as of March 31, 2020 and December 31, 2019. The tables are not intended to be all-inclusive, but instead identify the significant unobservable inputs relevant to the determination of fair values.



	Fair Value at March 31, 2020		Primary Valuation Technique	Unobservable Inputs	March 31, 2020
Asset Category	Fair Value at March 31, 2020		Primary Valuation Technique	Unobservable Inputs	Minimum		Maximum		Weighted Average
Assets:
Loans held for investment, net	$	395,581,145	Discounted cash flow	Discount rate	4.45	%	19.25	%	11.03	%
Loans held for investment acquired through participation, net	4,028,233		Discounted cash flow	Discount rate	13.15	%	13.15	%	13.15	%
Total Level 3 Assets	$	399,609,378
Liabilities:
Obligations under Participation Agreements	$	59,524,887	Discounted cash flow	Discount rate	9.86	%	19.25	%	13.23	%
Mortgage loan payable	44,813,764		Discounted cash flow	Discount rate	6.08	%	6.08	%	6.08	%
Repurchase agreement payable	92,546,529		Discounted cash flow	Discount rate	3.34	%	4.77	%	4.00	%
Revolving credit facility payable	35,000,000		Discounted cash flow	Discount rate	6.00	%	6.00	%	6.00	%
Total Level 3 Liabilities	$	231,885,180



	Fair Value at December 31, 2019		Primary Valuation Technique	Unobservable Inputs	December 31, 2019
Asset Category	Fair Value at December 31, 2019		Primary Valuation Technique	Unobservable Inputs	Minimum		Maximum		Weighted Average
Assets:
Loans held for investment, net	$	375,956,154	Discounted cash flow	Discount rate	4.71	%	14.95	%	9.77	%
Loans held for investment acquired through participation, net	3,204,261		Discounted cash flow	Discount rate	11.90	%	11.90	%	11.90	%
Total Level 3 Assets	$	379,160,415
Liabilities:
Obligations under Participation Agreements	$	103,188,783	Discounted cash flow	Discount rate	9.00	%	14.95	%	11.99	%
Mortgage loan	44,947,378		Discounted cash flow	Discount rate	6.08	%	6.08	%	6.08	%
Repurchase agreement payable	81,134,436		Discounted cash flow	Discount rate	4.11	%	4.75	%	4.33	%
Total Level 3 Liabilities	$	229,270,597