COMMERCIAL LOANS |
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Mar. 31, 2025 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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| COMMERCIAL LOANS | 4. COMMERCIAL LOANS
The Company purchased from MBC a pool of mortgage loans, originated and funded by MBC, each of which is secured by first priority liens on real property, free and clear of all liens and other security interests (see Note 3). To the extent any of the mortgages are satisfied in full, such mortgages will be replaced with one or more mortgages with similar aggregate principal amount. At March 31, 2025, the pool of mortgage loans was comprised of 14 loans with an aggregate outstanding principal balance of $7,819,250. At December 31, 2024, the pool of mortgage loans is comprised of 16 loans with an aggregate outstanding principal balance of $8,774,250.
The loans typically have a maximum initial term of 12 months, bear interest at a fixed rate of 10% to 12% per year, and provide for receipt of interest only during the term of the loan and a balloon payment at the end of the term.
Credit risk profile as of March 31, 2025 and December 31, 2024:
At March 31, 2025, loans receivable from one borrower represented 19.6% of total loans receivable, with three individuals personally guaranteeing the loan. In addition, loans receivable from one other borrower represented 19.2% of total loans receivable, with two individuals personally guaranteeing the loan. Furthermore, loans receivable from another borrower represented 13.5% of total loans receivable. One individual personally guarantees the loan and is the sole owner of the borrower.
At December 31, 2024, loans receivable from one borrower represented 17.4% of total loans receivable, with three individuals personally guaranteeing the loan. In addition, loans receivable from one other borrower represented 17.1% of total loans receivable, with two individuals personally guaranteeing the loan. Furthermore, loans receivable from another borrower represented 13.2% of total loans receivable. One individual personally guarantees the loan and is the sole owner of the borrower. Lastly, loans receivable from another borrower represented 12.0% of total loans receivable. One individual personally guarantees the loans and is the sole owner of the borrower.
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