INVESTMENT IN UNDIVIDED INTEREST IN REAL ESTATE
|6 Months Ended|
Jun. 30, 2019
|Real Estate [Abstract]|
|INVESTMENT IN UNDIVIDED INTEREST IN REAL ESTATE||
NOTE 10– INVESTMENT IN 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 paid for their building interest by delivering cash at closing of $209,971 and being a co-borrower on a note in the amount of $2,057,000, of which the Company has agreed with LLC1 to pay $1,007,930.
The allocated portion of the results in an equity method investment in a privately-held, related party, company are included in the Company’s condensed consolidated statements of operations. For the three and six months ended June 30, 2019, a gain of $5,856 and $4,816, respectively, and a net gain of $3,046 and $741, for the three and six months ended June 30, 2018, respectively, is included in “Other income (expense), net”. As of June 30, 2019, and December 31, 2018, the carrying value of the Company’s investment in undivided interest in real estate was $1,231,779 and $1,226,963, respectively.
The unaudited condensed balance sheets as of June 30, 2019, and December 31, 2018, and the statement of operations for the six months ended June 30, 2019, and 2018, for the real property is as follows:
The entire disclosure for certain real estate investment financial statements, real estate investment trust operating support agreements, real estate owned, retail land sales, time share transactions, as well as other real estate related disclosures.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef