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Loans Held For Investment, Net (Tables)
 9 Months Ended
Sep. 30, 2022
Loans Held For Investment Net Abstract  
Schedule of loans held for investment
       As of September 30, 2022   Weighted
Average
   Outstanding Principal (1)   Original Issue Discount   Carrying Value (1)   Remaining Life (Years) (2)
Senior Term Loans  $334,502,935   $(3,427,388)  $331,075,547   2.1
Current expected credit loss reserve   
-
    
-
    (1,497,933)   
Total loans held at carrying value, net  $334,502,935   $(3,427,388)  $329,577,614    

 

       As of December 31, 2021   Weighted
Average
   Outstanding Principal (1)   Original Issue Discount   Carrying Value (1)   Remaining Life (Years) (2)
Senior Term Loans  $200,632,056   $(3,647,490)  $196,984,566   2.2
Current expected credit loss reserve   
-
    
-
    (134,542)   
Total loans held at carrying value, net  $200,632,056   $(3,647,490)  $196,850,024    

 
Schedule of changes in loans held at carrying value
   Principal (1)   Original
Issue
Discount		   Current
Expected
Credit Loss
Reserve		   Carrying
Value (1)		 
Balance at December 31, 2021   $200,632,056   $(3,647,490)  $(134,542)  $196,850,024 
Issuance of and funding of loans    143,624,312    (2,180,593)   
-
    141,443,719 
Principal repayment of loans    (6,892,654)   
-
    
-
    (6,892,654)
Accretion of original issue discount    
-
    2,139,972    
-
    2,139,972 
Proceeds from sale of loans    (6,957,500)   260,723    
-
    (6,696,777)
PIK Interest    4,096,721    
-
    
-
    4,096,721 
Current expected credit loss reserve    
-
    
-
    (1,363,391)   (1,363,391)
Balance at September 30, 2022   $334,502,935   $(3,427,388)  $(1,497,933)  $329,577,614 

 

   Principal (1)   Original Issue Discount   Current Expected Credit Loss Reserve   Carrying Value (1) 
Balance at March 30, 2021 (inception)  $
-
   $
-
   $
   -
   $
-
 
Loans contributed   32,589,907    (613,391)   
-
    31,976,516 
New fundings   105,952,844    (1,778,500)   
-
    104,174,344 
Principal repayment of loans   (9,582,613)   
-
    
-
    (9,582,613)
Accretion of original issue discount   
-
    276,838    
-
    276,838 
Sale of loans   
-
    
-
    
-
    
-
 
PIK Interest   278,079    
-
    
-
    278,079 
Balance at September 30, 2021  $129,238,217   $(2,115,053)  $
-
   $127,123,164 

 
Schedule of loans held at carrying value based on information
Loan  Location  Outstanding
Principal(1)		   Original Issue
Premium/
(Discount)		   Carrying
Value(1)		   Contractual
Interest
Rate(4)		  Maturity
Date(2)		  Payment
Terms(3)		  Initial
Funding
Date
1  Various(6)   30,000,000    (287,746)   29,712,254   10.07%(7)  5/30/2023  I/O  7/2/2020
2  Michigan   36,646,551    (182,125)   36,464,426   P + 6.65%(5)(11)
Cash, 3.25% PIK		  12/31/2024  P&I  3/5/2021
3  Various(6)   20,673,831    (444,457)   20,229,374  

13.91% Cash, 2.59% PIK(10)

  11/29/2024  P&I  3/25/2021
4  Arizona   11,909,539    
-
    11,909,539   19.01%(8)  12/31/2023  P&I  4/19/2021
5  Massachusetts   1,500,000    
-
    1,500,000   P + 12.25%(5)  4/30/2023  P&I  4/19/2021
6  Pennsylvania   13,263,665    
-
    13,263,665   P + 10.75%(5)
Cash, 4% PIK(9)		  5/31/2025  P&I  5/28/2021
7  Michigan   4,443,750    (5,558)   4,438,192   P + 9.00%(5)  2/20/2024  P&I  8/20/2021
8  Various(6)   23,168,151    (242,929)   22,925,222   13% Cash, 2.5% PIK  6/30/2025  P&I  8/24/2021
9  West Virginia   9,554,960    (121,586)   9,433,374   P + 9.25%(5)
Cash, 2% PIK		  9/1/2024  P&I  9/1/2021
10  Pennsylvania   15,536,102    
-
    15,536,102   P + 10.75%(5)
Cash, 3% PIK		  6/30/2024  P&I  9/3/2021
11  Michigan   313,607    
-
    313,607   11.00%  9/30/2024  P&I  9/20/2021
12  Maryland   32,479,495    (714,967)   31,764,528   P + 8.75%(5)
Cash, 2% PIK		  9/30/2024  I/O  9/30/2021
13  Various(6)   20,000,000    (210,110)   19,789,890   13.00%  10/31/2024  P&I  11/8/2021
14  Michigan   10,600,000    (22,487)   10,577,513   P + 7.00%(5)  11/22/2022  I/O  11/22/2021
15  Various(6)   5,000,000    
-
    5,000,000   15% Cash, 2.5% PIK  12/27/2026  P&I  12/27/2021
16  Michigan   3,739,861    (56,096)   3,683,765   10.50% Cash,
5% PIK		  12/29/2023  I/O  12/29/2021
17  Various(6)   7,500,000    (56,267)   7,443,733   P + 9.25%(5)  12/31/2024  I/O  12/30/2021
18  Florida   15,000,000    (293,989)   14,706,011   11.00%  1/31/2025  P&I  1/18/2022
19  Ohio   30,602,729    (472,079)   30,130,650   P + 8.25%(5)
Cash, 3% PIK		  2/28/2025  P&I  2/3/2022
20  Florida   20,327,703    (84,518)   20,243,185   11.00% Cash, 3% PIK  8/29/2025  P&I  3/11/2022
21  Missouri   17,204,978    (148,084)   17,056,894   11.00% Cash, 3% PIK  5/30/2025  P&I  5/9/2022
22  Illinois   5,038,013    (84,390)   4,953,623   P + 8.50%
Cash, 3%(5) PIK		  6/30/2026  P&I  7/1/2022
                               
Current expected credit loss reserve   
-
    
-
    (1,497,933)            
Total loans held at carrying value  $334,502,935   $(3,427,388)  $329,577,614             

 
Schedule of risk rating
Rating   Definition
1   Very low risk
2   Low risk
3   Moderate/average risk
4   High risk/potential for loss: a loan that has a risk of realizing a principal loss
5   Impaired/loss likely: a loan that has a high risk of realizing principal loss, has incurred principal loss or an impairment has been recorded

 
Schedule of carrying value of loans held for investment
   As of September 30, 2022   As of December 31, 2021 
Risk Rating  2022   2021   2020   2019   Total   2021   2020   2019   Total 
1  $
-
   $20,542,981   $29,712,254   $
-
   $50,255,235   $135,076,307   $32,242,114   $590,384   $167,908,805 
2   93,424,139    79,819,303    
-
    
-
    173,243,442    29,075,761    
-
    
-
    29,075,761 
3   30,130,650    77,446,220    
-
    
-
    107,576,870    
-
    
-
    
-
    
-
 
4   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
5   
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
    
-
 
Total  $123,554,789   $177,808,504   $29,712,254   $
    -
   $331,075,547   $164,152,068   $32,242,114   $590,384   $196,984,566 

  
Schedule of real estate collateral coverage
As of September 30, 2022 Real Estate Collateral Coverage
   < 1.0x   1.0x - 1.25x  1.25x - 1.5x  1.50x - 1.75x  1.75x - 2.0x  > 2.0x  Total 
Fixed-rate  $5,000,000   $
-
  $20,243,185  $17,056,894  $
-
  $91,130,749  $133,430,828 
Floating-rate   8,943,733    97,660,654   -   31,920,426   13,263,665   45,856,241   197,644,719 
   $13,943,733   $97,660,654  $20,243,185  $48,977,320  $13,263,665  $136,986,990  $331,075,547 

 

As of December 31, 2021 Real Estate Collateral Coverage
   < 1.0  1.0 - 1.25  1.25 - 1.5  1.50 - 1.75  1.75 - 2.0  > 2.0  Total 
Fixed-rate  $7,017,793  $
-
  $35,836,099  $3,086,298  $
-
  $45,373,778  $91,313,968 
Floating-rate   8,925,068   18,022,518   
-
   30,029,953   32,377,087   16,315,972   105,670,598 
   $15,942,861  $18,022,518  $35,836,099  $33,116,251  $32,377,087  $61,689,750  $196,984,566 

 
Schedule of Activity related to the CECL Reserve for outstanding balances
   Outstanding(1)   Unfunded(2)   Total 
Balance at December 31, 2021  $134,542   $13,407   $147,949 
Provision for current expected credit losses   1,363,391    40,501    1,403,892 
Write-off charged   
-
    
-
    
-
 
Recoveries   
-
    
-
    
-
 
Balance at September 30, 2022  $1,497,933   $53,908   $1,551,841 

  
Schedule of Provision for current expected credit losses
   Outstanding   Unfunded 
Balance at December 31, 2021  $134,542   $13,407 
Provision for current expected credit losses   48,296    3,047 
Balance at March 31, 2022   182,838    16,454 
Provision for current expected credit losses   1,020,586    25,079 
Balance at June 30, 2022   1,203,424    41,533 
Provision for current expected credit losses   294,509    12,375 
Balance at September 30, 2022  $1,497,933   $53,908