Mortgage Loans Receivable

3 Months Ended

Sep. 30, 2011

Mortgage Loans Receivable

Mortgage Loans Receivable

NOTE 6 – Mortgage Loans Receivable

On April 25, 2011 Kent International provided a $321,290 first mortgage loan to an unaffiliated private real estate developer for the purchase of a foreclosed residential property in Southlake, Texas.  The real estate note was for a maximum term of twenty-six (26) months and was structured as an interest only, participating mortgage.  The stated interest rate was ten percent (10%) for the first fourteen (14) months and twelve percent (12%) for the final twelve (12) months of the term.  Kent International was also entitled to 20% of any profits realized from the sale of the property.

One August 19, 2011 the mortgage was repaid in full and the lien released.  Kent International also received an additional $3,608 representing its 20% share of the profits from the sale of the property.