Quarterly report pursuant to Section 13 or 15(d)

NOTE PAYABLE - UNDIVIDED INTEREST IN REAL ESTATE

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NOTE PAYABLE - UNDIVIDED INTEREST IN REAL ESTATE
3 Months Ended
Mar. 31, 2018
Debt Disclosure [Abstract]  
NOTE PAYABLE - UNDIVIDED INTEREST IN REAL ESTATE

NOTE 9– NOTE PAYABLE - UNDIVIDED INTEREST IN REAL ESTATE

 

On May 9, 2017, the Company and LLC1 purchased certain real property from an unaffiliated party. The Company and LLC1 have agreed that the Company purchased and owns 49% of the building and LLC1 purchased and owns 51% of the building. The contracted purchase price for the building was $2,420,000 and the total amount paid at closing was $2,501,783 including, fees, insurance, interest and real estate taxes. The Company is a co-borrower on a $2,057,000 Small Business Administration Note (the “SBA Note”). The SBA Note carries a 25-year term, with an initial interest rate of 6% per annum, adjustable to the Prime interest rate plus 2%, and is secured by a first position Deed of Trust and business assets located at the property. The Company initially recorded a liability of $1,007,930 for its portion of the SBA Note, with the offset being to Investment in undivided interest in real estate on the balance sheet presented herein. As of March 31, 2018, the current and long-term portion of the SBA Note is $18,793 and $977,494, respectively. Future principal payments for the Company’s portion are:

 

  Twelve months ending March 31,   Amount
  2019     $ 18,793  
  2020       19,795  
  2021       21,173  
  2022       23,865  
  2023       25,195  
  Thereafter       887,466  
  Total     $ 996,287