v2.4.0.6
Document And Entity Information
3 Months Ended
Mar. 31, 2014
May 15, 2014
Document Information [Line Items]    
Entity Registrant Name UNITED MORTGAGE TRUST  
Entity Central Index Key 0000101390  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Trading Symbol UDMG  
Entity Common Stock, Shares Outstanding   6,433,908
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2014  
Document Fiscal Period Focus Q1  
Document Fiscal Year Focus 2014  
v2.4.0.6
CONSOLIDATED BALANCE SHEETS (USD $)
Mar. 31, 2014
Dec. 31, 2013
Assets    
Cash and cash equivalents $ 488,501 $ 1,108,300
Mortgage Investments:    
Investment in trust receivable 622,342 653,736
Investment in residential mortgages 111,249 65,335
Interim mortgages, related party 16,098,574 16,282,339
Allowance for loan losses (129,878) (128,053)
Total mortgage investments 16,702,287 16,873,357
Lines of credit receivable, related parties 86,151,485 86,151,485
Lines of credit receivable 9,755,248 8,961,704
Accrued interest receivable 1,946,016 1,882,012
Accrued interest receivable, related parties 13,598,606 10,968,042
Reserves - accrued interest receivable (4,050,978) (3,693,244)
Recourse obligations, related parties 20,248,348 20,094,279
Real estate owned, net 4,845,798 5,287,857
Deficiency notes 4,976,199 4,976,199
Deficiency notes, related parties 29,175,409 29,295,567
Allowance for loan losses - deficiency notes (1,921,306) (1,736,306)
Other assets 571,467 1,959,363
Total assets 182,487,080 182,128,615
Liabilities and Shareholders' Equity    
Dividends payable 311,000 311,000
Lines of credit payable 7,998,441 7,682,920
Accounts payable and accrued liabilities 559,271 820,321
Accounts payable and accrued liabilities, related parties 2,888,420 1,939,695
Participation payable, related parties 70,835,104 70,835,104
Notes payable 6,380,656 6,190,656
Total liabilities 88,972,892 87,779,696
Commitments and contingencies      
Shareholders' equity    
Shares of beneficial interest; $.01 par value; 100,000,000 share authorized; 8,364,250 and 8,360,463 share issued in 2014 and 2013, respectively; and 6,435,945 and 6,436,767 outstanding in 2014 and 2013, respectively 83,643 83,605
Additional paid-in capital 147,804,188 147,748,315
Cumulative distributions in excess of earnings (17,233,937) (16,411,341)
Shareholders Equity Attributable To Parent Before Deducting Treasury Stock Value 130,653,894 131,420,579
Less treasury stock of 1,928,305 and 1,923,695 shares in 2014 and 2013, respectively, at cost (37,139,706) (37,071,660)
Total shareholders' equity 93,514,188 94,348,919
Total liabilities and shareholders' equity $ 182,487,080 $ 182,128,615
v2.4.0.6
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)
Mar. 31, 2014
Dec. 31, 2013
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 8,364,250 8,360,463
Common stock, shares outstanding 6,435,945 6,436,767
Treasury stock, shares 1,928,305 1,923,695
v2.4.0.6
CONSOLIDATED STATEMENTS OF INCOME (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Interest Income:    
Interest on loans - related parties $ 854,384 $ 1,110,550
Interest on loans 353,796 227,745
Total interest income 1,208,180 1,338,295
Interest Expense:    
Long term debt - related parties 41,960 28,284
Long term debt 255,268 166,767
Total interest expense 297,228 195,051
Net interest income 910,952 1,143,244
Provision for loan losses 475,842 520,083
Net interest income after provision for loan losses 435,110 623,161
Noninterest Expense:    
Trust administration fee - related parties 250,000 250,000
Loan servicing fee - related parties 146 1,703
General and administrative - related parties 21,876 19,032
General and administrative 52,958 269,854
Total noninterest expense 324,980 540,589
Net income $ 110,130 $ 82,572
Net income per share of beneficial interest (in dollars per share) $ 0.02 $ 0.01
Weighted average shares outstanding (in shares) 6,436,065 6,438,493
Distributions per weighted average shares outstanding (in dollars per share) $ 0.14 $ 0.14
v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Operating Activities    
Net income $ 110,130 $ 82,572
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Provision for loan losses 475,842 520,083
Depreciation and amortization 4,125 7,950
Changes in assets and liabilities:    
Accrued interest receivable, net (15,046) 88,596
Accrued interest receivable, related parties (706,165) (520,762)
Other assets 1,383,771 42,454
Accounts payable and accrued liabilities (261,050) (171,197)
Accounts payable and accrued liabilities, related parties 33,500 (213,983)
Net cash provided by (used in) operating activities 1,025,107 (164,287)
Investing Activities    
Principal receipts on trust receivables 31,394 31,121
Principal receipts on residential mortgages 1,835 1,883,422
Principal receipts on interim mortgages and deficiency notes 1,825 0
Principal receipts on interim mortgages and deficiency notes, related parties 152,011 359,062
Investments in recourse obligations, related parties (2,157) (269)
Principal receipts from recourse obligation, related parties 0 53,483
Principal investments in lines of credit receivable, related parties, net 0 (5,000)
Principal receipts from investments in lines of credit receivable, net (1,493,941) (2,230,956)
Investments in real estate owned 0 (11,225)
Proceeds from sale of real estate owned 103,467 261,350
Net cash (used in) provided by investing activities (1,205,566) 340,988
Financing Activities    
Proceeds from issuance of shares of beneficial interest 55,911 57,813
Net borrowings on lines of credit payable 315,521 316,828
Proceeds from notes payable 190,000 1,420,000
Principal payments on notes payable 0 (275,065)
Purchase of treasury stock (68,046) (88,500)
Dividends (932,726) (933,123)
Net cash (used in) provided by financing activities (439,340) 497,953
Net (decrease) increase in cash and cash equivalents (619,799) 674,654
Cash and cash equivalents at beginning of period 1,108,300 236,213
Cash and cash equivalents at end of period 488,501 910,867
Supplemental Disclosure of Cash Flow Information    
Cash paid during the period for interest 216,013 149,808
Supplemental Disclosure of Noncash Activity:    
Transfers of loans to foreclosed properties or recourse obligations 0 308,132
Increase (decrease) trust receivables 0 (111,176)
Increase (decrease) residential mortgages 47,749 (47,749)
(Increase) decrease participation receivable, related parties 0 (26,440)
Increase (decrease) participation payable, related parties 0 26,440
(Increase) decrease participation accrued interest receivable , related parties (1,615,623) (2,578,681)
Increase (decrease) participation accrued interest payable, related parties 1,615,623 2,578,681
(Increase) decrease in accrued interest receivable, related parties 0 83,732
(Increase) decrease interim mortgages and deficiency notes, related parties 317,754 (1,235,315)
(Increase) decrease interim mortgages and deficiency notes, related parties 0 (47,988)
(Increase) decrease recourse notes, related parties (151,912) 0
Increase (decrease) in real estate owned $ (213,592) $ 1,050,363
v2.4.0.6
Nature of Business
3 Months Ended
Mar. 31, 2014
Accounting Policies [Abstract]  
Nature of Operations [Text Block]
1. Nature of Business
 
United Mortgage Trust (the “Company”) is a Maryland real estate investment trust that qualifies as a real estate investment trust (a “REIT”) under federal income tax laws. The Company’s principal investment objectives are to invest proceeds from our dividend reinvestment plan, financing proceeds, proceeds from the repayment of our loans, capital transaction proceeds and retained earnings in the following types of investments: (i) lines of credit and secured loans for the acquisition and development of single-family home lots, referred to as “Land Development Loans;” (ii) lines of credit and loans secured by developed single-family lots, referred to as “Finished Lot Loans;” (iii) lines of credit and loans secured by completed model homes, referred to as “Model Home Loans;” (iv) loans provided to entities that have recently filed for bankruptcy protection under Chapter 11 of the U.S. bankruptcy code, secured by a priority lien over pre-bankruptcy secured creditors, referred to as “Debtor in Possession Loans;” (v) lines of credit and loans, with terms of 18 months or less, secured by single family lots and homes constructed thereon, referred to as “Construction Loans;” (vi) to provide credit enhancements to real estate developers, homebuilders, land bankers and other real estate investors who acquire real property, subdivide real property into single-family residential lots, acquire finished lots and/or build homes on such lots referred to as “Credit Enhancements;” (vii) discounted cash flows secured by assessments levied on real property; and (viii) senior or subordinate securities backed by finished lot loans and/or development loans referred to as “Securitizations.” We collectively refer to the above listed loans as “Mortgage Investments.” Additionally, our portfolio includes obligations of affiliates of our Advisor, which we refer to as “recourse loans” and “deficiency notes.”
 
The Company has no employees. The Company pays a monthly trust administration fee to UMTH General Services, L.P. (“UMTHGS” or “Advisor”), a subsidiary of UMT Holdings, L.P. (“UMTH”), a Delaware real estate finance company and affiliate, for the services relating to its daily operations. The Company’s offices are located in Grapevine, Texas.
v2.4.0.6
Basis of Presentation
3 Months Ended
Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
2.
Basis of Presentation
 
The Company follows the accounting for subsidiaries as set forth in the Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 810 Consolidations. The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, in which the Company has a controlling financial interest: UMT Home Finance, L.P. (“UMT HF”), UMT Home Finance II, L.P. (“UMT HF II”), UMT Home Finance III, L.P. (“UMT HF III”), UMT United Residential Home Finance, L.P. (“UMT URHF”), UMT LT Trust, UMT Properties, LP and UMT 15th Street, LP. All significant intercompany accounts and transactions have been eliminated. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X adopted by the Securities and Exchange Commission. Accordingly, the financial statements do not include all of the information and footnotes required by GAAP for complete financial statements and should be read in conjunction with our consolidated financial statements, and notes thereto, for the year ended December 31, 2013, included in our Annual Report on Form 10-K filed with the SEC on March 31, 2014. Operating results for the three months ended March 31, 2014, are not necessarily indicative of the results that may be expected for the year ended December 31, 2014. Certain prior period amounts have been reclassified to conform to current period presentation.
v2.4.0.6
Deficiency Notes - Related Party and Non Related Party
3 Months Ended
Mar. 31, 2014
Deficiency Notes [Abstract]  
Deficiency Notes [Text Block]
3.
Deficiency Notes – Related Party and Non Related Party
 
The Company has made loans in the normal course of business to related parties and non-related parties, the proceeds from which have been used to originate underlying loans that are pledged to the Company as security for such obligations.  When principal and interest on an underlying loan is due in full, at maturity or otherwise, the corresponding obligation owed by the originating company to the Company is also due in full.  If the borrower or the Company foreclosed on property securing an underlying loan, or if the Company foreclosed on property securing a purchased loan, and the proceeds from the sale were insufficient to pay the loan in full, the originating company had the option of (1) repaying the outstanding balance owed to the Company associated with the underlying loan or purchased loan, as the case may be, or (2) delivering to the Company an unsecured deficiency note in the amount of the deficiency.
 
As of March 31 2014, the Company had two deficiency notes with non-related parties in the total amount of approximately $4,976,000. One note in the amount of approximately $1,725,000 bears interest at a rate of 14% per annum. The second note is in the amount of approximately $3,251,000 with a loss reserve of approximately $1,921,000. The Company does not accrue interest on this note as the underlying collateral value approximates the note balance, net of reserves.
  
As of December 31, 2013, the Company had two deficiency notes with non-related parties in the aggregate amount of approximately $4,976,000. One note in the amount of approximately $1,725,000 bears interest at a rate of 14% per annum. The second note is in the amount of approximately $3,251,000 with a reserve of approximately $1,736,000. The Company does not accrue interest on this note as the underlying collateral value approximates the note balance, net of reserves.
 
As of December 31, 2007, UMTHLC issued to the Company a variable amount promissory note in the amount of $5,100,000 to evidence its deficiency obligations to the Company.  The initial principal amount of the note was approximately $1,848,000. The principal balance as of March 31, 2014 and December 31, 2013 was approximately $29,175,000 and $29,296,000, respectively. The principal balance will fluctuate from time to time based on the underlying loan activity and the amount of deficiencies realized by the related party.  The note bears interest at 6% and requires quarterly principal and interest payments based on a ten-year (10) amortization for the outstanding principal balance. The Company is negotiating an extension of this loan with UMTHLC with similar terms. The note is secured by a limited guaranty by UMTHGS, the Advisor, equal to a monthly amount not to exceed 33% of the advisory fee received by UMTHGS under the terms of its Advisory Agreement with the Company.
 
On a quarterly basis, the Company conducts a review of the underlying borrowers and third party guarantors in order to assess their ability to perform their obligations under the terms of the Deficiency Notes based on updated five year forecasts of future cash flows of the underlying borrowers and guarantors. Such ability to perform is principally dependent upon the borrower’s and obligor’s ability to realize cash flows from distributions derived from the pledged collateral sufficient to meet their respective current operational needs, as well as to provide liquidity to fund the debt service requirements under the Company’s notes. Such review includes, but is not limited to the following related to the guarantor: analyzing current financial statements and operating results, analyzing projected future operating results and validating the assumptions used to generate such projections, forecasting future cash flows and assessing the adequacy of these cash flows to service the Company’s notes, conducting discussions with and obtaining representations from the guarantors’ management with respect to their current and projected operating results. Based on such reviews, the Company has concluded that the guarantor has the ability to perform under their repayment obligations and that the Deficiency Note balance is fully realizable over their terms. Accordingly, the Company has not recorded any reserves on these loans.
v2.4.0.6
Related Party Transactions
3 Months Ended
Mar. 31, 2014
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
4.
Related Party Transactions
 
1) UMTH is a Delaware limited partnership which is in the real estate finance business. UMTH holds a 99.9% limited partnership interest in UMTHLC, which originated interim loans that were assigned to the Company, UMTH Land Development, L.P., (“UMTH LD”), a Texas limited partnership which holds a 50% profit interest in United Development Funding, L.P., (“UDF”) a Nevada limited partnership that is affiliated with the Company’s Advisor, UMTHGS and acts as UDF's asset manager, and Prospect Service Corp. (“PSC”), which services the Company’s residential mortgages and contracts for deed and manages the Company’s real estate owned (“REO”). In addition, UMTH has a limited guarantee of the obligations of Capital Reserve Group (“CRG”), Ready America Funding Corp (“RAFC”), and South Central Mortgage, Incorporated (“SCMI”), a Texas corporation that sold mortgage investments to the Company, under the Secured Notes (see the discussion under “Recourse Obligations” below).  United Development Funding III, L.P., a Delaware limited partnership, (“UDF III”) which is managed by UMTH Land Development, L.P., has previously provided a limited guarantee of the line of credit extended by the Company to UDF and has purchased an economic participation in a revolving credit facility the Company provided to UDF.
  
2) UMTHLC is a Delaware limited partnership, and subsidiary of UMTH.  The Company has loaned money to UMTHLC to make loans to its borrowers. The loans are collaterally assigned to the Company as security for the promissory note between UMTHLC and the Company. On March 26, 2009, the Company executed a secured line of credit promissory note with UMTHLC in the amount of $8,000,000. The note bears interest at 12.50% per annum, matured on September 26, 2012 and is secured by first lien mortgage interests in single family residential properties. The Company is negotiating a further extension of this loan with UMTHLC on similar terms. The outstanding balance on this line of credit at March 31, 2014 and December 31, 2013 was approximately $7,577,000 for both periods, respectively.
 
See Note 3 above for discussion of additional related party transactions with UMTHLC.
 
3) CRG is a Texas corporation that is 50% owned by Todd Etter and William Lowe, partners of UMTH, which owns the Advisor.  CRG was in the business of financing home purchases and renovations by real estate investors. The Company loaned money to CRG to make loans to other borrowers. During 2006 the Company took direct assignment of the remaining loans from CRG with full recourse.
 
4) RAFC is a Texas corporation that is 50% owned by SCMI, which is owned by Todd Etter. RAFC is in the business of financing interim loans for the purchase of land and the construction of modular and manufactured single-family homes placed on the land by real estate investors. The Company continues to directly fund obligations under one existing RAFC loan, which was collaterally assigned to the Company, but does not fund new originations and the Company is in the process of foreclosing on the collateral in California. The unpaid principal balance of the loans at March 31, 2014 and December 31, 2013 was approximately $16,099,000 and $16,282,000, respectively.
 
5) Wonder Funding, LP (“Wonder”) is a Delaware limited partnership that is owned by RMC. RMC is beneficially owned by Craig Pettit, a partner of UMTH and the sole proprietor of two companies that own 50% of RAFC. Wonder is in the business of financing interim loans for the purchase of land and the construction of single family homes and the purchase and renovation of single family homes. The Company has ceased funding any new originations. As of March 31, 2014 and December 31, 2013, respectively, all remaining obligations owed by Wonder to the Company are included in the recourse obligations discussed below.
 
6) Recourse Obligations. The Company has made recourse loans to (a) CRG, which is a Texas corporation that is 50%  owned by Todd Etter (a UMTH partner) and William Lowe (a former UMTH partner), which owns the Advisor, (b) RAFC, which is owned by SCMI and two companies owned by Craig Pettit, Eastern Intercorp, Inc. and RMC, and (c) SCMI, which is owned by Todd Etter, (these companies are referred to as the "originating companies").  In addition to the originating companies discussed above, the Company made loans with recourse to Wonder.  Each of these entities used the proceeds from such loans to originate loans, that are referred to as "underlying loans," that are pledged to the Company as security for such originating company's obligations to the Company.  When principal and interest on an underlying loan are due in full, at maturity or otherwise, the corresponding obligation owed by the originating company to the Company is also due in full.
 
In addition, some of the originating companies have sold loans to the Company, referred to as the "purchased loans," and entered into recourse agreements under which the originating company agreed to repay certain losses the Company incurred with respect to purchased loans.
 
If the originating company forecloses on property securing an underlying loan, or the Company forecloses on property securing a purchased loan, and the proceeds from the sale are insufficient to pay the loan in full, the originating company has the option of (1) repaying the outstanding balance owed to the Company associated with the underlying loan or purchased loan, as the case may be, or (2) delivering an unsecured deficiency note in the amount of the deficiency to the Company.
 
On March 30, 2006, but effective December 31, 2005, the Company and each originating company agreed to consolidate (1) all outstanding amounts owed by such originating company to the Company under the loans made by the Company to the originating company and under the deficiency notes described above and (2) the estimated maximum future liability to the Company under the recourse arrangements described above, into secured promissory notes (“Recourse Obligations”).  Each originating company issued to the Company a secured variable amount promissory note dated December 31, 2005 (the “Secured Notes”) in the principal amounts shown below, which amounts represent all principal and accrued interest owed as of such date. The initial principal amounts are subject to increase up to the maximum amounts shown below if the Company incurs losses upon the foreclosure of loans covered by recourse arrangements with the originating company.   The Secured Notes (including related guaranties discussed below) are secured by an assignment of the distributions on the Class C units and Class D units of limited partnership interest of UMT Holdings held by each originating company.
  
Name
 
Initial
principal
amount
 
Balance at
March 31,
2014
 
Promissory
Note
principal
amount (2)
 
 
Units/
indemnification
pledged as
security
 
C Units
distributed
during
2014
 
Units/
indemnification
remaining
 
Estimated
Collateral
Value (3)
 
CRG
 
$
2,725,442
 
$
4,504,544
 
$
4,300,000
 
 
4,984 Class C and 2,710 Class D
 
 
-
 
2,399 Class C and 2,710 Class D
 
$
4,786,000
 
RAFC
 
$
3,243,369
 
$
10,324,266
 
$
7,100,000
 
 
11,228 Class C & 6,659 Class D
 
 
-
 
8,694 Class C & 6,659 Class D
 
$
10,465,000
 
SCMI
 
$
3,295,422
 
$
3,448,002
 
$
3,488,643
 
 
4,545 Class C and 3,000 Class D
 
 
-
 
985 Class C and 3,000 Class D
 
$
3,872,481
 
RAFC / Wonder(1)
 
$
1,348,464
 
$
1,971,536
 
$
1,400,000
 
 
1,657 Class C
 
 
-
 
1,482 Class C
 
$
1,482,000
 
Wonder
Indemnification (1)
 
 
n/a
 
 
n/a
 
 
n/a
 
 
$1,134,000
 
 
-
 
n/a
 
$
822,000
 
Totals
 
$
10,612,697
 
$
20,248,348
 
$
16,288,643
 
 
 
 
 
 
 
 
 
$
21,427,000
 
 
(1)
Wonder is collateralized by an indemnification agreement from RMC in the original amount of $1,134,000, of which $822,000 remains, and the pledge of 3,870 C Units. 2,213 of the pledged C Units also cross-collateralize the RAFC obligation.
(2)
The CRG, RAFC and Wonder balances at March 31, 2014 exceeded the stated principal amount per their variable Secured Notes by approximately $205,000, $3,224,000 and $572,000, respectively.  Per the terms of the Secured Notes, the unpaid principal balance may be greater or less than the initial principal amount of the note and is not considered an event of default.  The rapid rate of liquidation of the remaining portfolio of properties caused a more rapid increase in the Unpaid Principal Balance (“UPB”) than we originally anticipated and outpaced the minimum principal reductions scheduled for the loans.
(3)
Estimated collateral value reflects the pledge of D units of limited partnership interest of UMTH held by WLL, Ltd., RAFC and KLA, Ltd. UMTH D units represent equity interests in UMT Holdings, LP. Pledge of the UMTH D units entitles the beneficiary to a pro-rata share of UMTH partnership D unit cash distributions
 
Through September 2007, the Secured Notes incurred interest at a rate of 10% per annum. The CRG, RAFC, and RAFC/Wonder Secured Notes amortize over 15 years. The SCMI Secured Note amortizes over approximately 22 years, which was the initial amortization of the deficiency notes from SCMI that were consolidated. The Secured Notes required the originating company to make monthly payments equal to the greater of (1) principal and interest amortized over 180 months and 264 months, respectively, or (2) the amount of any distributions paid to the originating company with respect to the pledged Class C units. Effective October 2007, the recourse loans were modified to accommodate the anticipated increases in principal balances throughout the remaining liquidation periods of the underlying assets, modify the amortization schedules for the period of July 2007 through June 2009, and reduce the interest rate from 10% to 6%. The above modifications have been extended through December 31, 2014. Management has accounted for these as loan modifications in the normal course of business, and not as a troubled debt restructuring, as the underlying collateral value exceeds the outstanding loan amounts, the modifications did not include an extension of the debt’s original contractual maturity or expected duration, the borrowers and guarantors have obtained third party financing at current market rates, the modified rate represents a premium over current market rates and the risk characteristics of the third party debt obtained is similar to the modified debt. The Company expects to receive full repayment under the loans.
  
On a quarterly basis, the Company conducts a review of the collateral pledged by the underlying borrowers and third party guarantors in order to assess their ability to perform their obligations under the terms of the Recourse Obligations. The collateral pledged consists of class C and D ownership units of UMT Holdings, L.P. These units represent capital shares in UMT Holdings, L.P. and are eligible for, and receive, quarterly distributions from UMT Holdings, L.P. Such ability to perform is principally dependent upon the forecasted cash distributions associated with the pledged collateral and the ability of the distributions to meet the debt service requirements under the Secured Notes. The review includes analyzing projected future distribution sources and amounts, validating the assumptions used to generate such projections, assessing the ability to execute on the business plan, conducting discussions with and obtaining representations from the guarantors’ management with respect to their current and projected distribution amounts. The value of the pledged collateral is estimated using a discounted cash flow model that is reviewed and updated each quarter. Based on such reviews, the Company has concluded that the guarantors have the ability to perform under their repayment obligations and that the Recourse Obligations are fully realizable. Accordingly, the Company has not recorded any reserves on these loans.
 
The Secured Notes have also been guaranteed by the following entities under the arrangements described below, all of which are dated effective December 31, 2005:
 
- UMT Holdings. This guaranty is limited to a maximum of $3,203,549 of all amounts due under the Secured Notes.
 
- WLL, Ltd., a related party of CRG. This guaranty is of all amounts due under Secured Note from CRG, is non-recourse and is secured by an assignment of 2,492 Class C Units and 1,355 Class D units of limited partnership interest of UMT Holdings held by WLL, Ltd.
 
- RMC. This guaranty is non-recourse, is limited to 50% of all amounts due under the Secured Note from RAFC and is secured by an assignment of 3,870 Class C units of limited partnership interest of UMT Holdings.
 
- Wonder.  Wonder Funding obligations are evidenced by a note from RAFC (RAFC/Wonder Note) and are secured by a pledge of a certain Indemnification Agreement given by UMTH to RAFC and assigned to UMT in the amount of $1,134,000, which amount is included in the UMTH limited guarantee referenced above.
 
- SCMI. This guaranty is limited to a maximum of $2,213,000 due under the Secured Note from RAFC and is secured by an assignment of 2,213 Class C units of limited partnership interest of UMT Holdings.
 
- KLA, Ltd. KLA has given the following limited guaranties: (1) Guaranty of obligations of SCMI under the First Amended and Restated Secured Variable Amount Promissory Note to the Company dated as of October 1, 2007 with a then current principal balance of $3,472,073 and is secured by an assignment of 3,000 of Guarantor’s Class D units of partnership interest in UMT Holdings, L.P. (2) Guaranty of obligations of CRG under the First Amended and Restated Secured Variable Amount Promissory Note dated as of October 1, 2007 with a then current principal balance of $4,053,799 and is secured by a pledge of 1,355 of Guarantor’s Class D units of partnership interest in UMTH.
 
In addition, WLL, Ltd. has obligations to UMT Holdings under an indemnification agreement between UMT Holdings, WLL, Ltd. and William Lowe, under which UMT Holdings is indemnified for certain losses on loans and advances made to William Lowe by UMT Holdings. That indemnification agreement allows UMT Holdings to offset any amounts subject to indemnification against distributions made to WLL, Ltd. with respect to the Class C and Class D units of limited partnership interest held by WLL, Ltd. Because WLL, Ltd. has pledged these Class C and Class D units to the Company to secure its guaranty of Capital Reserve Corp.'s obligations under its Secured Note, UMT Holdings and the Company entered into an Intercreditor and Subordination Agreement under which UMT Holdings has agreed to subordinate its rights to offset amounts owed to it by WLL, Ltd. to the Company’s lien on such units.
 
These loans were reviewed by management and no loss reserves on principal amounts are deemed necessary at March 31, 2014.
  
7) On June 20, 2006, the Company entered into a Second Amended and Restated Secured Line of Credit Promissory Note as modified by an amendment effective September 1, 2006 - (the "Amendment") with UDF, a Delaware limited partnership that is affiliated with the Company's Advisor, UMTHGS.  The Amendment increased an existing revolving line of credit facility ("Loan") to $45,000,000. The purpose of the Loan is to finance UDF's loans and investments in real estate development projects. On July 29, 2009, our trustees approved an amendment to increase the revolving line of credit facility to an amount not to exceed $60,000,000. Effective December 31, 2010, the loan was extended for a period of one year and the loan amount was increased from $60,000,000 to $75,000,000. Effective December 31, 2012, the loan was extended for a second time for a period of one year and the loan amount was increased from $75,000,000 to $82,000,000. Effective October 1, 2013 the loan was extended for a period of one yearand matures on December 31, 2014.
 
The Loan is secured by the pledge of all of UDF's land development loans and equity investments pursuant to the First Amended and Restated Security Agreement dated as of September 30, 2004, executed by UDF in favor of UMT (the “Security Agreement”).  Those UDF loans may be first lien loans or subordinate loans.
 
The Loan interest rate is the lower of 15% or the highest rate allowed by law, further adjusted with the addition of a credit enhancement to a minimum of 14%.Effective October 1, 2013, the loan was extended to December 31, 2014 and the base interest rate was decreased to a rate of 9.25%.
 
UDF may use the Loan proceeds to finance indebtedness associated with the acquisition of any assets to seek income that qualifies under the Real Estate Investment Trust provisions of the Internal Revenue Code to the extent such indebtedness, including indebtedness financed by funds advanced under the Loan and indebtedness financed by funds advanced from any other source, including Senior Debt, is no more than 85% of 80% (68%) of the appraised value of all subordinate loans and equity interests for land development and/or land acquisition owned by UDF and 75% for first lien secured loans for land development and/or acquisitions owned by UDF.
 
On September 19, 2008, UMT entered into an Economic Interest Participation Agreement with UDF III pursuant to which UDF III purchased (i) an economic interest in the $45,000,000 revolving credit facility (“Loan”) from UMT to UDF I and (ii) a purchase option to acquire a full ownership participation interest in the Loan (the “Option”). On July 29, 2009, our trustees approved an amendment to increase the revolving line of credit facility to an amount not to exceed $60,000,000. Effective December 31, 2010, the loan was extended for a period of one year and the loan amount was increased from $60,000,000 to $75,000,000. Effective December 31, 2012, the loan was extended for a second time for a period of one year and the loan amount was increased from $75,000,000 to $82,000,000. Effective October 1, 2013, the loan was extended to December 31, 2014.
 
Pursuant to the Economic Interest Agreement, each time UDF requests an advance of principal under the UMT Loan, UDF III will fund the required amount to UMT and UDF III’s economic interest in the UMT Loan increases proportionately.  Because these advances are funded by UDF III and UMT recognizes an offsetting participation payable amount to UDF III, the Company does not earn any net interest income on the advances made under the Economic Interest Participation Agreement. UDF III’s economic interest in the UMT Loan gives UDF III the right to receive payment from UMT of principal and accrued interest relating to amounts funded by UDF III to UMT which are applied towards UMT’s funding obligations to UDF under the UMT Loan.  UDF III may abate its funding obligations under the Economic Participation Agreement at any time for a period of up to twelve months by giving UMT notice of the abatement.
 
The Option gives UDF III the right to convert its economic interest into a full ownership participation interest in the UMT Loan at any time by giving written notice to UMT and paying an exercise price of $100.  The participation interest includes all rights incidental to ownership of the UMT Loan and the Security Agreement, including participation in the management and control of the UMT Loan.  UMT will continue to manage and control the UMT Loan while UDF III owns an economic interest in the UMT Loan.  If UDF III exercises its Option and acquires a participation interest in the UMT Loan, UMT will serve as the loan administrator but both UDF III and UMT will participate in the control and management of the UMT Loan. UDF III had funded approximately $70,835,000 to UDF under the Economic Interest Participation Agreement at both March 31, 2014 and December 31, 2013. UMT had funded approximately $7,739,000 to UDF under this agreement at both March 31, 2014 and December 31, 2013.
  
On June 21, 2010, UDF entered into a new promissory note agreement with a private investor, the proceeds from which were used to pay off in full an existing credit facility that UDF had with Textron Financial Corporation. Pursuant with this transaction, the Company entered into a second amendment to our subordination and intercreditor agreement which subordinates the UMT loan to the new loan from the private investor, reducing the amount subject to subordination from $30,000,000 to $15,000,000
 
On July 22, 2013, the Company entered into a guaranty agreement (the “URHF Guaranty”) pursuant to which UDF IV guaranteed all amounts due associated with the $15,000,000 revolving credit facility in which the Company agrees to pay UDF IV a monthly credit enhancement fee equal to 1/12th of 1% of the outstanding principal balance on the above term line of credit facility at the end of each month.
 
The following table summarizes the related party lines of credit receivable as of March 31, 2014 and December 31, 2013:
 
 
 
2014
 
2013
 
UDF I
 
$
7,739,000
 
$
7,739,000
 
UDF III Economic Interest Participation Agreement
 
 
70,835,000
 
 
70,835,000
 
UMTH LC
 
 
7,577,000
 
 
7,577,000
 
Balance, end of period
 
$
86,151,000
 
$
86,151,000
 
 
8) Loans made to related parties of the Advisor. Below is a table of the aggregate principal amount of mortgages funded during the quarters ended March 31, 2014 and 2013, respectively, to the companies affiliated with the Advisor, and named in the table and the aggregate amount of draws made by UMTHLC under the line of credit, during the three quarters indicated:
 
Related Party Company
 
2014
 
2013
 
RAFC
 
 
-
 
 
-
 
UMTHLC
 
 
-
 
$
15,000
 
UDF
 
 
-
 
 
-
 
 
9) As of August 1, 2006, (now subject to an Advisory Agreement effective January 1, 2009) the Company entered into an Advisory Agreement with UMTHGS. Under the terms of the agreement, UMTHGS is paid a monthly trust administration fee. The fee is calculated monthly depending on the Company’s annual distribution rate, ranging from 1/12th of 1% up to 1/12th of 2% of the amount of average invested assets per month. During the three months ended March 31, 2014 and March 31, 2013, the expenses for the Company’s Advisor were approximately $250,000 for both periods, respectively, and actual payments were approximately, $250,000, and $319,000, respectively. The Advisor and its related parties are also entitled to reimbursement of costs of goods, materials and services obtained from non-related third parties for the Company’s benefit, except for note servicing and for travel and expenses incurred in connection with efforts to acquire investments for the Company or to dispose of any of its investments. The Company paid the Advisor approximately $34,000 and $19,000, during the three months ending March 31, 2014 and March 31, 2013, and expensed approximately $19,000 in both the three months ending March 31, 2014 and March 31, 2013, associated with providing shareholder relations activities.
 
The agreement also provides for a subordinated incentive fee equal to 25% of the amount by which the Company’s net income for a year exceeds a 10% per annum non-compounded cumulative return on its adjusted contributions. No incentive fee was paid during 2014 or 2013. In addition, for each year in which it receives a subordinated incentive fee, the Advisor will receive a 5-year option to purchase 10,000 Shares at a price of $20.00 per share (not to exceed 50,000 shares). As of March 31, 2014, the Advisor has not received options to purchase shares under this arrangement.
 
The Advisory Agreement provides for the Advisor to pay all of the Company’s expenses and for the Company to reimburse the Advisor for any third-party expenses that should have been paid by the Company but which were instead paid by the Advisor.  However, the Advisor remains obligated to pay: (1) the employment expenses of its employees, (2) its rent, utilities and other office expenses and (3) the cost of other items that are part of the Advisor's overhead that is directly related to the performance of services for which it otherwise receives fees from the Company.
 
The Advisory Agreement also provides for the Company to pay to the Advisor, or a related party of the Advisor, a debt placement fee.  The Company may engage the Advisor, or an Affiliate of the Advisor, to negotiate lines of credit on behalf of the Company.  UMT shall pay a negotiated fee, not to exceed 1% of the amount of the line of credit secured, upon successful placement of the line of credit. The Company paid no debt placement fees during the three months ended March 31, 2014 and March 31, 2013, respectively, and expensed approximately $20,000 and $8,000, during the three months ending March 31, 2014 and March 31, 2013, respectively. These fees are amortized monthly, as an adjustment to interest expense, over the term of the credit facility agreements described in Note 6.
 
10) The Company pays loan servicing fees to PSC, a subsidiary of UMTH, under the terms of a Mortgage Servicing Agreement. The Company paid no loan servicing fees in the three month period ended March 31, 2014 and paid loan servicing fees of approximately $2,000 in the three month period ending March 31, 2013.
 
11) The Company pays “guarantee” credit enhancement fees to UDF III, as specified under the terms of the UDF Guarantee agreement. In the three months ending March 31, 2014 and March 31, 2013 the credit enhancement expenses were approximately $22,000 and $20,000, and the Company paid approximately $18,000, and $21,000 in the three months ending March 31, 2014 and March 31, 2013, respectively.
 
12) Affiliates of the Company, UDF LOF, UDF IV and UDF X, are reimbursed for their degree of invested “participatory” interest in the Company’s construction loans, the degree of invested interest is not to exceed $2,000,000. The Company made payments of such participation interest, as a net amount against the construction loan interest, in the three months ended March 31, 2014 and March 31, 2013 of approximately $1,058,000 and $342,000, respectively.
 
13) The Company pays UMTH LD administrative and origination fees for the construction loans in which UDF affiliates take an invested interest in. The fees are withheld from construction draws funded to the borrower and are in turn paid directly to UMTH LD. In the three months ended March 31, 2014 and March 31, 2013, payments were made for the above administrative and origination fees of approximately $92,000, and $91,000, respectively.
 
The table below summarizes the approximate payments associated with related parties for the three months ended March 31, 2014 and 2013:
 
Related Party Payments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For Three Months Ended
 
Payee
 
Purpose
 
March 31, 2014
 
 
 
March 31, 2013
 
UMTHGS
 
Trust administration fees
 
$
250,000
 
88
%
 
$
319,000
 
94
%
UMTHGS
 
General & administrative - shareholder relations
 
 
34,000
 
12
%
 
 
19,000
 
6
%
 
 
 
 
$
284,000
 
100
%
 
$
338,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSC
 
Loan servicing fee
 
$
-
 
-
 
 
$
2,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UDF III
 
Credit enhancement fees
 
$
18,000
 
100
%
 
$
21,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UDF IV
 
Participation Interest Paid
 
$
1,058,000
 
100
%
 
$
342,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UMTH LD
 
Admin and origination fees paid
 
$
92,000
 
100
%
 
$
91,000
 
100
%
  
The table below summarizes the approximate expenses associated with related parties for the three months ended March 31, 2014 and 2013:
 
Related Party Expenses:
 
 
 
 
 
 
 
 
 
For Three Months Ended
 
Payee
 
Purpose
 
March 31, 2014
 
 
March, 31, 2013
 
UMTHGS
 
Trust administration fees
 
$
250,000
 
93
%
 
$
250,000
 
93
%
UMTHGS
 
General & administrative - shareholder relations
 
 
19,000
 
7
%
 
 
19,000
 
7
%
 
 
 
 
$
269,000
 
100
%
 
$
269,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSC
 
Loan servicing fee
 
$
-
 
-
 
 
$
2,000
 
100
%
PSC
 
General & administrative – Misc
 
$
3,000
 
100
%
 
 
-
 
-
 
 
 
 
 
$
3,000
 
100
%
 
$
2,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UMTH
 
Debt placement fees
 
$
20,000
 
100
%
 
$
8,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UDF III
 
Credit enhancement fees
 
$
22,000
 
100
%
 
$
20,000
 
100
%
v2.4.0.6
Fair Value of Financial Instruments
3 Months Ended
Mar. 31, 2014
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
5.
Fair Value of Financial Instruments
 
In accordance with the reporting requirements of ASC 825, Disclosures About Fair Value of Financial Instruments, the Company calculates the fair value of its assets and liabilities that qualify as financial instruments under this statement and includes additional information in notes to the Company’s consolidated financial statements when the fair value is different than the carrying value of those financial instruments. The estimated fair value of accrued interest receivable, accrued interest receivable related parties and accounts payable and accrued liabilities (including related parties) approximate the carrying value due to the relatively short maturity of these instruments. The carrying value of investments in residential mortgages, interim mortgages (including related parties), lines of credit (including related parties), recourse obligations from related parties, notes payable, deficiency notes (including related parties) and the Company’s line of credit payable also approximate fair value since these instruments bear market rates of interest. None of these instruments are held for trading purposes.
v2.4.0.6
Lines of Credit Payable
3 Months Ended
Mar. 31, 2014
Debt Disclosure [Abstract]  
Long-term Debt [Text Block]
6.
Lines of Credit Payable
 
In August 2009, the Company entered into a term line of credit facility with a bank for $5,000,000. The line of credit bears interest at prime plus one percent, with a floor of 5.50% and requires monthly interest payments. Principal and all unpaid interest was due at maturity, August 29, 2012. Effective September 2012, the line was renewed under the same terms and matures on September 5, 2015. All other terms remain the same. The line is collateralized by a first lien security interest in the underlying real estate financed by the line of credit. The outstanding balance on this line of credit was approximately $5,000,000 and $4,376,000 at March 31, 2014 and December 31, 2013, respectively.
 
On May 27, 2011, the Company entered into a revolving line of credit facility with a bank for $4,300,000. The loan bears interest at prime plus one percent, with a floor of 5.0%, and requires monthly interest payments. Principal and all unpaid interest will be due at maturity which is May 27, 2014. The loan is collateralized by a first lien security interest in the underlying real estate financed by the loan. The outstanding balance on this loan at March 31, 2014 and December 31, 2013 was approximately $994,000, and $1,593,000, respectively.
 
On October 26, 2011, the Company entered into a term line of credit facility with a bank for $5,000,000. The loan bears interest at prime plus one percent, with a floor of 5.0%, and requires monthly interest payments. Principal and all unpaid interest will be due at maturity which is October 26, 2014. The loan is collateralized by a first lien security interest in the underlying real estate financed by the loan. The outstanding balance on this loan at March 31, 2014 and December 31, 2013, was approximately $837,000, and $546,000,respectively.
  
On July 22, 2013, the Company entered into a revolving line of credit facility with a bank for $15,000,000. The loan bears interest at prime plus one percent, with a floor of 4.75%, and requires monthly interest payments. Principal and all unpaid interest will be due at maturity which is July 22, 2016. The loan is collateralized by a first lien security interest in the underlying real estate financed by the loan. The outstanding balance on this loan at March 31, 2014 and December 31, 2013 was approximately $1,167,000.
 
The Company was in compliance with all of its debt covenants as of March 31, 2014 and December 31, 2013.
v2.4.0.6
Notes Payable
3 Months Ended
Mar. 31, 2014
Debt Disclosure [Abstract]  
Debt Disclosure [Text Block]
7.
Notes Payable
 
On April 21, 2010, the Company entered into a term loan credit facility with a bank for $1,600,000. The loan bears interest at prime plus one percent, with a floor of 7.0%, and requires monthly interest payments. Principal and all unpaid interest were due at maturity which was October 21, 2012. The term loan credit facility was extended effective December 21, 2012 with an amended maturity date of December 19, 2013, and an interest rate reduction from 7.0% to 5.5%. Effective February 19, 2013, the maturity date was extended to December 18, 2014. The loan is collateralized by a first lien security interest in the underlying real estate financed by the loan. The outstanding balance on this loan at both March 31, 2014 and December 31, 2013, was approximately $567,000.
 
On January 27, 2011, the Company initiated a private offering of Secured Subordinated Notes (“Notes,” to accredited investors “Note Holders”). The Notes are being offered through a wholly-owned subsidiary, UMT Home Finance II, L.P. (“HF II”). HF II is a Delaware limited partnership that was formed on November 29, 2010 as a Special Purpose Entity, for the purpose of originating and holding loans made to fund the acquisition of finished lots and the construction of single-family homes on the subject lots (“Loans”). HF II will issue up to $5 million in 7.5% Notes. The Notes will be secured by an undivided security interest on the pool of loans owned by HF II. The offering of the Notes is not registered under the Securities Act, in reliance upon the exemption from registration for non-public offerings provided by Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended. As of March 31, 2014 and December 2013, approximately $4,275,000 was outstanding and approximately $100,000, $200,000, $265,000, $200,000, $187,500, $100,000, $2,347,500, $50,000, $175,000,$500,000, $100,000 and $50,000 matures on March 2016, April 2016, February 2017, March 2017, October 2017, November 2017, February 2018, March 2018,  April 2018, May 2018, July 2018, and September 2018, respectively.
 
As of March 31, 2014, the Company had fourteen Notes Payable to various non-related parties totaling approximately $1,537,000. As of December 31, 2013, the Company had ten notes payable to various non-related parties totaling approximately $1,347,000. These Notes bear interest at the rate of 7.5% per annum and require interest only payments on a monthly basis. These Notes are secured by an undivided security interest in the pool of construction loans funded for the construction of single-family homes by UMT Home Finance, L.P. a wholly-owned and consolidated subsidiary of United Mortgage Trust and mature on April 2018, June 2018, July 2018, August 2018, and January 2019.
v2.4.0.6
Private Equity Offering
3 Months Ended
Mar. 31, 2014
Private Equity Offering [Abstract]  
Private Equity Offering [Text Block]
8.
Private Equity Offering
 
On February 24, 2014, the Company initiated a private offering of equity units (“Equity Units”) to accredited investors (“Equity Unit Holders”). The Equity Units to accredited investors (“Equity Unit Holders”) are being offered by UMT United Residential Home Finance, L.P. (“URHF”). URHF is a Delaware limited partnership formed for the purpose of investing in loans made to fund the acquisition of land and development of single family lots, loans for the acquisition of finished lots, loans secured by model homes and loans for the construction of new homes (“Loans”). URHF will issue up to $15.5 million in 5.5% Preferred Limited Partner Equity Units to Equity Unit Holders who will become Limited Partners in URHF. The offering of the Equity Units is not registered under the Securities Act, in reliance upon the exemption from registration for non-public offerings provided by Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended. As of March 31, 2014 no Equity Units had been issued or sold. Through May 15, 2014 $500,000 of Equity Units has been sold.
v2.4.0.6
Share Redemption Program
3 Months Ended
Mar. 31, 2014
Stockholders Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
9.
Share Redemption Program
 
There is currently no established public trading market for our shares. As an alternative means of providing limited liquidity for our shareholders, we maintain a Share Redemption Plan, (“SRP”).  Our trustees have the discretion to modify or terminate the SRP upon 30 days’ notice. Under the terms of our plan as modified and effective on May 1, 2009 (see below for a further description of the plan), shareholders who have held their shares for at least one year are eligible to request that we repurchase their shares. In any consecutive 12-month period we may not repurchase more than 5% of the outstanding shares at the beginning of the 12-month period. The repurchase price is based on the “Net Asset Value” (NAV) as of the end of the month prior to the month in which the redemption is made. The NAV will be established by our Board of Trustees no less frequently than each calendar quarter. For reference, at March 31, 2014 and December 31, 2013, the NAV was $14.53 and $14.66 per share, respectively. The Company will waive the one-year holding period ordinarily required for eligibility for redemption and will redeem shares for hardship requests. A “hardship” redemption is (i) upon the request of the estate, heir or beneficiary of a deceased shareholder made within two years of the death of the shareholder; (ii) upon the disability of a shareholder or such shareholder’s need for long-term care, providing that the condition causing such disability or need for long term care was not pre-existing at the time the shareholder purchased the shares and that the request is made within 270 days after the onset of disability or the need for long term care; and (iii) in the discretion of the Board of Trustees, due to other involuntary exigent circumstances of the shareholder, such as bankruptcy, provided that the request is made within 270 days after of the event giving rise to such exigent circumstances. Previously, there was no hardship exemption. Shares will be redeemed quarterly in the order that they are presented. Any shares not redeemed in any quarter will be carried forward to the subsequent quarter unless the redemption request is withdrawn by the shareholder. Previously, shares were redeemed monthly. Repurchases are subject to cash availability and Trustee discretion. Previously, the SRP provided that repurchases were subject to the availability of cash from the Company’s Dividend Reinvestment Plan (“DRP”) or the Company’s credit line. We have also purchased a limited number of shares outside of our SRP from shareholders with special hardship considerations.
 
Share repurchases have been at prices between $14.76 and $20 per share. Shares repurchased at the lower price were 1) shares held by shareholders for less than 12 months or 2) shares purchased outside of our SRP. Our stated NAV at March 31, 2014 and December 31, 2013, was $14.53 and $14.66 per share, respectively.
 
The Company complies with Distinguishing Liabilities from Equity topic of FASB Accounting Standards Codification, which requires, among other things, that financial instruments that represent a mandatory obligation of the Company to repurchase shares be classified as liabilities and reported at settlement value. We believe that shares tendered for redemption by the shareholder under the Company’s share redemption program do not represent a mandatory obligation until such redemptions are approved at the discretion of our board of trustees. At such time, we will reclassify such obligations from equity to an accrued liability based upon their respective settlement values. As of March 31, 2014, the Company had no approved redemption requests included in our liabilities.
 
The following table sets forth information relating to shares of beneficial interest repurchased into treasury during the period covered by this report.
 
Month
 
Total number of
shares repurchased
 
Average Purchase
Price
 
Total number of
shares purchased
as part of a
publicly
announced plan
 
Total number of
shares purchased
outside of plan
 
January
 
 
1,795
 
$
14.76
 
 
1,795
 
 
-
 
February
 
 
2,188
 
$
14.76
 
 
2,188
 
 
-
 
March
 
 
627
 
$
14.76
 
 
627
 
 
-
 
Totals
 
 
4,610
 
$
14.76
 
 
4,610
 
 
-
 
v2.4.0.6
Related Party Transactions (Tables)
3 Months Ended
Mar. 31, 2014
Related Party Transactions [Abstract]  
Schedule Of Recourse Obligations, Related Party [Table Text Block]
 The Secured Notes (including related guaranties discussed below) are secured by an assignment of the distributions on the Class C units and Class D units of limited partnership interest of UMT Holdings held by each originating company.
  
Name
 
Initial
principal
amount
 
Balance at
March 31,
2014
 
Promissory
Note
principal
amount (2)
 
 
Units/
indemnification
pledged as
security
 
C Units
distributed
during
2014
 
Units/
indemnification
remaining
 
Estimated
Collateral
Value (3)
 
CRG
 
$
2,725,442
 
$
4,504,544
 
$
4,300,000
 
 
4,984 Class C and 2,710 Class D
 
 
-
 
2,399 Class C and 2,710 Class D
 
$
4,786,000
 
RAFC
 
$
3,243,369
 
$
10,324,266
 
$
7,100,000
 
 
11,228 Class C & 6,659 Class D
 
 
-
 
8,694 Class C & 6,659 Class D
 
$
10,465,000
 
SCMI
 
$
3,295,422
 
$
3,448,002
 
$
3,488,643
 
 
4,545 Class C and 3,000 Class D
 
 
-
 
985 Class C and 3,000 Class D
 
$
3,872,481
 
RAFC / Wonder(1)
 
$
1,348,464
 
$
1,971,536
 
$
1,400,000
 
 
1,657 Class C
 
 
-
 
1,482 Class C
 
$
1,482,000
 
Wonder
Indemnification (1)
 
 
n/a
 
 
n/a
 
 
n/a
 
 
$1,134,000
 
 
-
 
n/a
 
$
822,000
 
Totals
 
$
10,612,697
 
$
20,248,348
 
$
16,288,643
 
 
 
 
 
 
 
 
 
$
21,427,000
 
 
(1)
Wonder is collateralized by an indemnification agreement from RMC in the original amount of $1,134,000, of which $822,000 remains, and the pledge of 3,870 C Units. 2,213 of the pledged C Units also cross-collateralize the RAFC obligation.
(2)
The CRG, RAFC and Wonder balances at March 31, 2014 exceeded the stated principal amount per their variable Secured Notes by approximately $205,000, $3,224,000 and $572,000, respectively.  Per the terms of the Secured Notes, the unpaid principal balance may be greater or less than the initial principal amount of the note and is not considered an event of default.  The rapid rate of liquidation of the remaining portfolio of properties caused a more rapid increase in the Unpaid Principal Balance (“UPB”) than we originally anticipated and outpaced the minimum principal reductions scheduled for the loans.
(3)
Estimated collateral value reflects the pledge of D units of limited partnership interest of UMTH held by WLL, Ltd., RAFC and KLA, Ltd. UMTH D units represent equity interests in UMT Holdings, LP. Pledge of the UMTH D units entitles the beneficiary to a pro-rata share of UMTH partnership D unit cash distributions
Schedule Of Affiliate Lines Of Credit Receivable [Table Text Block]
The following table summarizes the related party lines of credit receivable as of March 31, 2014 and December 31, 2013:
 
 
 
2014
 
2013
 
UDF I
 
$
7,739,000
 
$
7,739,000
 
UDF III Economic Interest Participation Agreement
 
 
70,835,000
 
 
70,835,000
 
UMTH LC
 
 
7,577,000
 
 
7,577,000
 
Balance, end of period
 
$
86,151,000
 
$
86,151,000
 
Schedule Of Loan Made To Affiliate [Table Text Block]
Below is a table of the aggregate principal amount of mortgages funded during the quarters ended March 31, 2014 and 2013, respectively, to the companies affiliated with the Advisor, and named in the table and the aggregate amount of draws made by UMTHLC under the line of credit, during the three quarters indicated:
 
Related Party Company
 
2014
 
2013
 
RAFC
 
 
-
 
 
-
 
UMTHLC
 
 
-
 
$
15,000
 
UDF
 
 
-
 
 
-
 
Schedule of Related Party Transactions [Table Text Block]
The table below summarizes the approximate payments associated with related parties for the three months ended March 31, 2014 and 2013:
 
Related Party Payments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For Three Months Ended
 
Payee
 
Purpose
 
March 31, 2014
 
 
 
March 31, 2013
 
UMTHGS
 
Trust administration fees
 
$
250,000
 
88
%
 
$
319,000
 
94
%
UMTHGS
 
General & administrative - shareholder relations
 
 
34,000
 
12
%
 
 
19,000
 
6
%
 
 
 
 
$
284,000
 
100
%
 
$
338,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSC
 
Loan servicing fee
 
$
-
 
-
 
 
$
2,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UDF III
 
Credit enhancement fees
 
$
18,000
 
100
%
 
$
21,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UDF IV
 
Participation Interest Paid
 
$
1,058,000
 
100
%
 
$
342,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UMTH LD
 
Admin and origination fees paid
 
$
92,000
 
100
%
 
$
91,000
 
100
%
Schedule Of General and Administrative Expense Related Party [Table Text Block]
The table below summarizes the approximate expenses associated with related parties for the three months ended March 31, 2014 and 2013:
 
Related Party Expenses:
 
 
 
 
 
 
 
 
 
For Three Months Ended
 
Payee
 
Purpose
 
March 31, 2014
 
 
March, 31, 2013
 
UMTHGS
 
Trust administration fees
 
$
250,000
 
93
%
 
$
250,000
 
93
%
UMTHGS
 
General & administrative - shareholder relations
 
 
19,000
 
7
%
 
 
19,000
 
7
%
 
 
 
 
$
269,000
 
100
%
 
$
269,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PSC
 
Loan servicing fee
 
$
-
 
-
 
 
$
2,000
 
100
%
PSC
 
General & administrative – Misc
 
$
3,000
 
100
%
 
 
-
 
-
 
 
 
 
 
$
3,000
 
100
%
 
$
2,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UMTH
 
Debt placement fees
 
$
20,000
 
100
%
 
$
8,000
 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
UDF III
 
Credit enhancement fees
 
$
22,000
 
100
%
 
$
20,000
 
100
%
v2.4.0.6
Share Redemption Program (Tables)
3 Months Ended
Mar. 31, 2014
Stockholders Equity Note [Abstract]  
Schedule Of Share Redemption Program [Table Text Block]
The following table sets forth information relating to shares of beneficial interest repurchased into treasury during the period covered by this report.
 
Month
 
Total number of
shares repurchased
 
Average Purchase
Price
 
Total number of
shares purchased
as part of a
publicly
announced plan
 
Total number of
shares purchased
outside of plan
 
January
 
 
1,795
 
$
14.76
 
 
1,795
 
 
-
 
February
 
 
2,188
 
$
14.76
 
 
2,188
 
 
-
 
March
 
 
627
 
$
14.76
 
 
627
 
 
-
 
Totals
 
 
4,610
 
$
14.76
 
 
4,610
 
 
-
 
v2.4.0.6
Deficiency Notes - Related Party and Non Related Party (Details Textual) (USD $)
3 Months Ended 1 Months Ended
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
Note One [Member]
Dec. 31, 2013
Note One [Member]
Mar. 31, 2014
Note Two [Member]
Dec. 31, 2013
Note Two [Member]
Dec. 31, 2007
UMTHLC [Member]
Mar. 31, 2014
UMTHGS [Member]
Notes Receivable Net $ 4,976,199 $ 4,976,199 $ 1,725,000 $ 1,725,000 $ 3,251,000 $ 3,251,000    
Notes Receivable Stated Interest Rate     14.00% 14.00%        
Variable Interest Promissory Note Face Amount             5,100,000  
Variable Interest Promissory Note Initial Principal Amount 29,175,000 29,296,000         1,848,000  
Percentage Of Advisory Fee Receivable By Guarantor Of Variable Interest Promissory Note               33.00%
Variable Interest Promissory Note Interest Rate During Period 6.00%              
Allowance for loan losses - deficiency notes $ 1,921,306 $ 1,736,306     $ 1,921,000 $ 1,736,000    
v2.4.0.6
Related Party Transactions (Details) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Mar. 31, 2014
CRG [Member]
Mar. 31, 2014
CRG [Member]
C Units [Member]
Mar. 31, 2014
CRG [Member]
Class C [Member]
Mar. 31, 2014
CRG [Member]
Class D [Member]
Oct. 01, 2007
CRG [Member]
Class D [Member]
Mar. 31, 2014
RAFC [Member]
Mar. 31, 2014
RAFC [Member]
C Units [Member]
Mar. 31, 2014
RAFC [Member]
Class C [Member]
Mar. 31, 2014
RAFC [Member]
Class D [Member]
Mar. 31, 2014
SCMI [Member]
Mar. 31, 2014
SCMI [Member]
C Units [Member]
Mar. 31, 2014
SCMI [Member]
Class C [Member]
Mar. 31, 2014
SCMI [Member]
Class D [Member]
Mar. 31, 2014
RAFC Wonder [Member]
Mar. 31, 2014
RAFC Wonder [Member]
C Units [Member]
Mar. 31, 2014
RAFC Wonder [Member]
Class C [Member]
Mar. 31, 2014
Wonder Indemnification [Member]
Mar. 31, 2014
Wonder Indemnification [Member]
C Units [Member]
Initial principal amount $ 10,612,697   $ 2,725,442         $ 3,243,369       $ 3,295,422       $ 1,348,464 [1]     $ 0 [1]  
Balance 20,248,348 20,094,279 4,504,544         10,324,266       3,448,002       1,971,536 [1]     0 [1]  
Promissory Note principal amount 16,288,643 [2]   4,300,000 [2]         7,100,000 [2]       3,488,643 [2]       1,400,000 [1],[2]     0 [1],[2]  
Units/ indemnification pledged as security (in shares)         4,984 2,710 1,355     11,228 6,659     4,545 3,000     1,657 [1] 1,134,000 [1]  
C Units distributed       0         0       0       0 [1]     0 [1]
Units/indemnification remaining (in shares)         2,399 2,710       8,694 6,659     985 3,000     1,482 [1]    
Estimated Collateral Value $ 21,427,000 [3]   $ 4,786,000 [3]         $ 10,465,000 [3]       $ 3,872,481 [3]       $ 1,482,000 [1],[3]     $ 822,000 [1],[3]  
[1] Wonder is collateralized by an indemnification agreement from RMC in the original amount of $1,134,000, of which $822,000 remains, and the pledge of 3,870 C Units. 2,213 of the pledged C Units also cross-collateralize the RAFC obligation.
[2] The CRG, RAFC and Wonder balances at March 31, 2014 exceeded the stated principal amount per their variable Secured Notes by approximately $205,000, $3,224,000 and $572,000, respectively. Per the terms of the Secured Notes, the unpaid principal balance may be greater or less than the initial principal amount of the note and is not considered an event of default. The rapid rate of liquidation of the remaining portfolio of properties caused a more rapid increase in the Unpaid Principal Balance (“UPB”) than we originally anticipated and outpaced the minimum principal reductions scheduled for the loans.
[3] Estimated collateral value reflects the pledge of D units of limited partnership interest of UMTH held by WLL, Ltd., RAFC and KLA, Ltd. UMTH D units represent equity interests in UMT Holdings, LP. Pledge of the UMTH D units entitles the beneficiary to a pro-rata share of UMTH partnership D unit cash distributions
v2.4.0.6
Related Party Transactions (Details 1) (USD $)
Mar. 31, 2014
Dec. 31, 2013
Lines of credit receivable, related parties $ 86,151,485 $ 86,151,485
UDF I [Member]
   
Lines of credit receivable, related parties 7,739,000 7,739,000
UDF III Economic Interest Participation Agreement
   
Lines of credit receivable, related parties 70,835,000 70,835,000
UMTHLC [Member]
   
Lines of credit receivable, related parties $ 7,577,000 $ 7,577,000
v2.4.0.6
Related Party Transactions (Details 2) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
RAFC [Member]
   
Payments to Fund Long-term Loans to Related Parties $ 0 $ 0
UMTHLC [Member]
   
Payments to Fund Long-term Loans to Related Parties 0 15,000
UDF [Member]
   
Payments to Fund Long-term Loans to Related Parties $ 0 $ 0
v2.4.0.6
Related Party Transactions (Details 3) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
Related Party Transaction, Amounts of Transaction $ 284,000 $ 338,000
Related Party Transaction Payment Percentage 100.00% 100.00%
UMTHGS [Member] | Trust Administration Fees [Member]
   
Related Party Transaction, Amounts of Transaction 250,000 319,000
Related Party Transaction Payment Percentage 88.00% 94.00%
UMTHGS [Member] | General and Administrative Shareholder Relations [Member]
   
Related Party Transaction, Amounts of Transaction 34,000 19,000
Related Party Transaction Payment Percentage 12.00% 6.00%
PSC [Member] | Loan Servicing Fee [Member]
   
Related Party Transaction, Amounts of Transaction 0 2,000
Related Party Transaction Payment Percentage 0.00% 100.00%
UDF III [Member] | Credit Enhancement Fees [Member]
   
Related Party Transaction, Amounts of Transaction 18,000 21,000
Related Party Transaction Payment Percentage 100.00% 100.00%
UDF IV [Member] | Participation Interest Paid [Member]
   
Related Party Transaction, Amounts of Transaction 1,058,000 342,000
Related Party Transaction Payment Percentage 100.00% 100.00%
UMTH LD [Member] | Administrative and Origination Fees Paid [Member]
   
Related Party Transaction, Amounts of Transaction $ 92,000 $ 91,000
Related Party Transaction Payment Percentage 100.00% 100.00%
v2.4.0.6
Related Party Transactions (Details 4) (USD $)
3 Months Ended
Mar. 31, 2014
Mar. 31, 2013
General and Administrative Expense Related Party $ 269,000 $ 269,000
General and Administrative Expense Percentage Related Party 100.00% 100.00%
UMTHGS [Member] | Trust Administration Fees [Member]
   
General and Administrative Expense Related Party 250,000 250,000
General and Administrative Expense Percentage Related Party 93.00% 93.00%
UMTHGS [Member] | General and Administrative Shareholder Relations [Member]
   
General and Administrative Expense Related Party 19,000 19,000
General and Administrative Expense Percentage Related Party 7.00% 7.00%
PSC [Member]
   
General and Administrative Expense Related Party 3,000 2,000
General and Administrative Expense Percentage Related Party 100.00% 100.00%
PSC [Member] | General And Administrative Misc [Member]
   
General and Administrative Expense Related Party 3,000 0
General and Administrative Expense Percentage Related Party 100.00% 0.00%
PSC [Member] | Loan Servicing Fee [Member]
   
General and Administrative Expense Related Party 0 2,000
General and Administrative Expense Percentage Related Party 0.00% 100.00%
UMTH [Member] | Debt Placement Fees [Member]
   
General and Administrative Expense Related Party 20,000 8,000
General and Administrative Expense Percentage Related Party 100.00% 100.00%
UDF III [Member] | Credit Enhancement Fees [Member]
   
General and Administrative Expense Related Party $ 22,000 $ 20,000
General and Administrative Expense Percentage Related Party 100.00% 100.00%
v2.4.0.6
Related Party Transactions (Details Textual) (USD $)
1 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 1 Months Ended 3 Months Ended 1 Months Ended 24 Months Ended 24 Months Ended
Oct. 31, 2013
Sep. 30, 2007
Mar. 31, 2014
Mar. 31, 2013
Dec. 31, 2013
Jun. 21, 2010
Sep. 19, 2008
Jul. 22, 2013
URHF Guaranty [Member]
Jul. 29, 2009
Economic Interest Participation Agreement [Member]
Sep. 19, 2008
Economic Interest Participation Agreement [Member]
Mar. 31, 2014
UDF III [Member]
Mar. 31, 2013
UDF III [Member]
Mar. 31, 2014
UDF III [Member]
Economic Interest Participation Agreement [Member]
Dec. 31, 2013
UDF III [Member]
Economic Interest Participation Agreement [Member]
Mar. 31, 2014
UMTH [Member]
Dec. 31, 2005
UMTH [Member]
Mar. 31, 2014
UMTH LD [Member]
Administrative and Origination Fees Paid [Member]
Mar. 31, 2013
UMTH LD [Member]
Administrative and Origination Fees Paid [Member]
Mar. 31, 2014
UMTHLC [Member]
Mar. 31, 2012
UMTHLC [Member]
Dec. 31, 2013
UMTHLC [Member]
Dec. 31, 2012
UMTHLC [Member]
Dec. 31, 2011
UMTHLC [Member]
Dec. 31, 2010
UMTHLC [Member]
Mar. 26, 2009
UMTHLC [Member]
Sep. 30, 2007
CRG [Member]
Mar. 31, 2014
CRG [Member]
Oct. 01, 2007
CRG [Member]
Mar. 31, 2014
CRG [Member]
Class C [Member]
Mar. 31, 2014
CRG [Member]
Class D [Member]
Oct. 01, 2007
CRG [Member]
Class D [Member]
Sep. 30, 2007
RAFC [Member]
Mar. 31, 2014
RAFC [Member]
Dec. 31, 2013
RAFC [Member]
Mar. 31, 2014
RAFC [Member]
Class C [Member]
Mar. 31, 2014
RAFC [Member]
Class D [Member]
Dec. 31, 2005
RMC [Member]
Dec. 31, 2005
RMC [Member]
Class C [Member]
Sep. 30, 2007
Wonder [Member]
Mar. 31, 2014
Wonder [Member]
Dec. 31, 2005
Wonder [Member]
Mar. 31, 2014
Wonder [Member]
Class C [Member]
Sep. 30, 2007
SCMI [Member]
Mar. 31, 2014
SCMI [Member]
Class C [Member]
Mar. 31, 2014
SCMI [Member]
Class D [Member]
Dec. 31, 2005
WLL [Member]
Class C [Member]
Dec. 31, 2005
WLL [Member]
Class D [Member]
Dec. 31, 2005
SCMC [Member]
Dec. 31, 2005
SCMC [Member]
Class C [Member]
Oct. 01, 2007
KLA Ltd [Member]
Oct. 01, 2007
KLA Ltd [Member]
Class D [Member]
Jun. 30, 2009
Minimum [Member]
Aug. 01, 2006
Minimum [Member]
Jun. 30, 2009
Maximum [Member]
Aug. 01, 2006
Maximum [Member]
Limited Liability Company (LLC) or Limited Partnership (LP), Managing Member or General Partner, Ownership Interest                                     99.90%               50.00%           50.00%             50.00%                              
Percentage Of Profit Interest In Holding Company                             50.00%                                                                                
Line Of Credit Facility Receivable Maximum Financing Capacity                                         $ 82,000,000 $ 75,000,000 $ 75,000,000 $ 60,000,000 $ 8,000,000                                                            
Line Of Credit Facility Receivable Interest Rate During Period                                       12.50%                                                                      
Line Of Credit Receivable Included In Related Party Loan Receivable                                     7,577,000   7,577,000                       16,099,000 16,282,000                                          
Promissory Note , Units Pledged As Securities (in shares)                                                         4,984 2,710 1,355       11,228 6,659   3,870       3,870   4,545 3,000 2,492 1,355   2,213   3,000        
Increase In Stated Principal Amount Of Variable Secured Promissory Notes                                                     205,000           3,224,000             572,000                              
Secured Notes Payment Terms   The Secured Notes required the originating company to make monthly payments equal to the greater of (1) principal and interest amortized over 180 months and 264 months, respectively, or (2) the amount of any distributions paid to the originating company with respect to the pledged Class C and EIA units.                                                                                                          
Amortization Period Of Secured Notes                                                   15 years           15 years             15 years       22 years                        
Secured Notes Receivable Limited Guaranty Value                                                       4,053,799                       822,000               2,213,000   3,472,073          
Indemnification Agreement Value Included In Limited Guarantee                               3,203,549                                               1,134,000 1,134,000                            
Line Of Credit Facility Receivable Increased Value             45,000,000                                                                                                
Interest Rate Terms Description     The Loan interest rate is the lower of 15% or the highest rate allowed by law                                                                                                        
Minimum Percentage Of Credit Enhancement Fees     14.00%                                                                                                        
Percentage Of Loan Qualification For Refinancing     85.00%                                                                                                        
Percentage Refinanced On Qualified Loans     80.00%                                                                                                        
Percentage Of Loan Refinanced     68.00%                                                                                                        
Percentage Refinanced For First Lien Secured Loan     75.00%                                                                                                        
Transferred Revolving Credit Facility     100           60,000,000 45,000,000                                                                                          
Amount Funded Under Security Agreement     7,739,000   7,576,966               70,835,000 70,835,000                                                                                  
Subordinated Loan Before Amendment           30,000,000                                                                                                  
Annual Distribution Rate Administration Fee, Percentage                                                                                                         1.00%   2.00%
Advisory Expenses Incurred     250,000 250,000                                                                                                      
Advisory Expenses Paid     250,000 319,000                                                                                                      
Payment Of Shareholder Relation Activities, Advisory Reimbursement Expense     34,000 19,000                                                                                                      
Percentage Of Incentive Fee Based On Net Income     25.00%                                                                                                        
Minimum Percentage Of Net Income Applicable For Incentive Fee Calculation   10.00% 10.00%                                                                                                        
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued (in shares)     10,000                                                                                                        
Share-Based Goods and Nonemployee Services Transaction, Securities Issued, Issue Price (in dollars per share)     $ 20.00                                                                                                        
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance (in shares)     50,000                                                                                                        
Negotiated Fees, Percentage     1.00%                                                                                                        
Debt Placement Fees Expenses     20,000 8,000                                                                                                      
Loan Servicing Fees       2,000                                                                                                      
Guaranty Facility Credit Enhancement Fee     18,000 21,000             22,000 20,000                                                                                      
Maximum Degree Of Invested Interest In Construction Loan     2,000,000                                                                                                        
Payment For Loan Participation Interest In Construction Loan     1,058,000 342,000                                                                                                      
Related Party Transaction, Amounts of Transaction     284,000 338,000                         92,000 91,000                                                                          
Subordinated Loan After Amendment           15,000,000                                                                                                  
Maximum Limited Guaranty Percentage                                                                         50.00%                                    
Amortization Modify Interest Rate Percentage                                                                                                       6.00%   10.00%  
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term     5 years                                                                                                        
Base Interest Rate Reduced Percentage 9.25%                                                                                                            
Revolving Credit Facility Amount Due               $ 9.25                                                                                              
v2.4.0.6
Lines of Credit Payable (Details Textual) (USD $)
1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Aug. 31, 2009
Mar. 31, 2014
Dec. 31, 2013
Jan. 27, 2011
Mar. 31, 2014
Term Loan [Member]
Dec. 31, 2013
Term Loan [Member]
May 27, 2011
Term Loan One [Member]
Mar. 31, 2014
Term Loan One [Member]
Dec. 31, 2013
Term Loan One [Member]
Oct. 26, 2011
Term Loan Two [Member]
Mar. 31, 2014
Term Loan Two [Member]
Dec. 31, 2013
Term Loan Two [Member]
Jul. 22, 2013
Term Loan Three [Member]
Mar. 31, 2014
Term Loan Three [Member]
Dec. 31, 2013
Term Loan Three [Member]
Line of Credit Facility, Maximum Borrowing Capacity $ 5,000,000     $ 5,000,000     $ 4,300,000     $ 5,000,000     $ 15,000,000    
Line of Credit Facility, Interest Rate Description The line of credit bears interest at prime plus one percent, with a floor of 5.50% and requires monthly interest payments.           The loan bears interest at prime plus one percent, with a floor of 5.0%, and requires monthly interest payments.     The loan bears interest at prime plus one percent, with a floor of 5.0%, and requires monthly interest payments.     The loan bears interest at prime plus one percent, with a floor of 4.75%, and requires monthly interest payments.    
Line Of Credit Facility Floor Interest Rate 5.50%           5.00%     5.00%     4.75%    
Line Of Credit Facility, Amount Outstanding   $ 7,998,441 $ 7,682,920   $ 5,000,000 $ 4,376,000   $ 994,000 $ 1,593,000   $ 837,000 $ 546,000   $ 1,167,000 $ 1,167,000
v2.4.0.6
Notes Payable (Details Textual) (USD $)
1 Months Ended 3 Months Ended 1 Months Ended 3 Months Ended
Jan. 27, 2011
Apr. 27, 2010
Aug. 31, 2009
Mar. 31, 2014
Dec. 31, 2013
Apr. 21, 2010
Notes Payable [Member]
Mar. 31, 2014
Notes Payable [Member]
Apr. 27, 2010
Notes Payable [Member]
Mar. 31, 2014
Notes Payable One [Member]
Mar. 31, 2014
Notes Payable Two [Member]
Mar. 31, 2014
Notes Payable Three [Member]
Mar. 31, 2014
Notes Payable Four [Member]
Mar. 31, 2014
Notes Payable Five [Member]
Mar. 31, 2014
Notes Payable Six [Member]
Mar. 31, 2014
Notes Payable Seven [Member]
Mar. 31, 2014
Notes Payable Eight [Member]
Mar. 31, 2014
Notes Payable Nine [Member]
Mar. 31, 2014
Notes Payable Ten [Member]
Mar. 31, 2014
Notes Payable Eleven [Member]
Mar. 31, 2014
Notes Payable Twelve [Member]
Mar. 31, 2014
Residential Mortgage One [Member]
Mar. 31, 2014
Residential Mortgage Two [Member]
Mar. 31, 2014
Residential Mortgage Three [Member]
Mar. 31, 2014
Residential Mortgage Four [Member]
Mar. 31, 2014
Residential Mortgage Five [Member]
Mortgage Loans on Real Estate, Carrying Amount of Mortgages       $ 0                                          
Line of Credit Facility, Maximum Borrowing Capacity 5,000,000   5,000,000         1,600,000                                  
Line of Credit Facility, Interest Rate During Period 7.50% 7.00%   7.50%                                          
Debt Instrument, Maturity Date                 Mar. 31, 2016 Apr. 30, 2016 Feb. 28, 2017 Mar. 31, 2017 Oct. 31, 2017 Nov. 30, 2017 Feb. 28, 2018 Mar. 31, 2018 Apr. 30, 2018 May 31, 2018 Jul. 31, 2018 Sep. 30, 2018          
Lines of credit payable       7,998,441 7,682,920   567,000 567,000                                  
Line of Credit Facility, Interest Rate Description     The line of credit bears interest at prime plus one percent, with a floor of 5.50% and requires monthly interest payments.     The loan bears interest at prime plus one percent, with a floor of 7.0%, and requires monthly interest payments.                                      
Debt Instrument Carrying Amount       $ 4,275,000 $ 4,275,000   $ 1,537,000   $ 100,000 $ 200,000 $ 265,000 $ 200,000 $ 187,500 $ 100,000 $ 2,347,500 $ 50,000 $ 175,000 $ 500,000 $ 100,000 $ 50,000          
Mortgage Loans on Real Estate, Final Maturity Date                                         Apr. 30, 2018 Jun. 30, 2018 Jul. 31, 2018 Aug. 31, 2018 Jan. 31, 2019
v2.4.0.6
Private Equity Offering (Details Textual) (USD $)
1 Months Ended
Feb. 24, 2014
May 15, 2014
Private Equity Offering [Line Items]    
Limited Partners Capital Account Preferred Units Issued Amount $ 15,500,000  
Limited Partners Capital Account Preferred Units Rate 5.50%  
Limited Partners Capital Account Equity Units Issued Amount   $ 500,000
v2.4.0.6
Share Redemption Program (Details) (USD $)
1 Months Ended 3 Months Ended
Mar. 31, 2014
Feb. 28, 2014
Jan. 31, 2014
Mar. 31, 2014
Total number of shares repurchased (in shares) 627 2,188 1,795 4,610
Average Purchase Price (in dollars per share) $ 14.76 $ 14.76 $ 14.76 $ 14.76
Publiciy Announced Share Redemption Plan [Member]
       
Total number of shares repurchased (in shares) 627 2,188 1,795 4,610
Outside Of Share Redemption Plan [Member]
       
Average Purchase Price (in dollars per share) $ 0 $ 0 $ 0 $ 0
v2.4.0.6
Share Redemption Program (Details Textual) (USD $)
1 Months Ended 3 Months Ended
Mar. 31, 2014
Feb. 28, 2014
Jan. 31, 2014
Mar. 31, 2014
Dec. 31, 2013
Maximum Percentage Of Shares Redeemable       5.00%  
Net Asset Value Per Share $ 14.53     $ 14.53 $ 14.66
Treasury Stock Acquired, Average Cost Per Share (in dollars per share) $ 14.76 $ 14.76 $ 14.76 $ 14.76  
Minimum [Member]
         
Treasury Stock Acquired, Average Cost Per Share (in dollars per share)       $ 14.76  
Maximum [Member]
         
Treasury Stock Acquired, Average Cost Per Share (in dollars per share)       $ 20