MORTGAGE SECURED NOTES PAYABLE |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||
| Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
| MORTGAGE SECURED NOTES PAYABLE | NOTE 3 – MORTGAGE SECURED NOTES PAYABLE
As stated in Note 2 the Company funds the majority of the mortgage loans that it makes by issuing MSNs, which are secured by those same mortgages. As of June 30, 2026, and December 31, 2025, the Company had outstanding loans securing MSNs totaling $264,456,052 and $285,416,050, respectively, and issued MSNs secured by those loans in the amount of $313,136,786 and $319,683,008, respectively. The MSNs have been funded in multiple ways, including private placements, loan participations, and Rule 144A offerings exempt from registration, and through SEC registered offerings.
The MSNs are typically five-year interest-only notes with the principal balance due at maturity, but terms can vary. Interest rates on the senior MSNs have ranged from 4.25% to 9.94% and mature at various dates from July 2026 to June 2037. The MSNs are non-recourse to KDM and are payable to the extent that the Company receives payment from the borrower of the borrower’s mortgage loans. Payments made to KDM by borrowers are distributed by KDM to MSN noteholders in accordance with the terms of their MSN Notes. KDM has custodial responsibility for the MSNs pursuant to the Trust Indenture for the Notes. There are no limitations in KDM’s liability as a servicer of its MSNs.
The following table presents the future scheduled principal payments on the Company’s MSNs:
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