WAREHOUSE LINE OF CREDIT	12 Months Ended
Dec. 31, 2023
Warehouse Line Of Credit
WAREHOUSE LINE OF CREDIT	NOTE 15 – WAREHOUSE LINE OF CREDIT On March 31, 2022, The Company entered into a Master Repurchase Agreement and Securities Contract with Signature Bank (now Flagstar Bank) for the provision of an uncommitted warehouse facility up to $100,000,000 (the “Line”). The Agreement provides for approximately a three-year term and may be terminated in accordance therein. The Line is floating rate and both the haircut percentage and SOFR-linked interest rate spread vary according to property type and time on the line. The Line offers up to 75% leverage on investment grade loans and is designed for 30 to 90 day hold periods but can accommodate up to a 12-month holding period, with decreasing leverage as time passes. In connection with entering into the Line, the Company incurred loan fees of approximately $1,589,783 which is netted against the amount drawn on the line and is included in the warehouse line of credit, net in the accompanying audited Consolidated Statements of Financial Condition. Loan fees associated with the Line will be amortized on a straight-line basis over the term of the Line. On March 20, 2023, Signature Bank announced that much of its assets, including our warehouse line would now operate under the New York Community Bancorp’s Flagstar Bank, N.A. As of December 31, 2023, the Company had a balance of $10,164,436 on the warehouse line net of the costs associated with the final Agreement which is shown on the audited Consolidated Statements of Financial Condition as Warehouse line of credit, net. Total amortization expense of capitalized loan fees was $570,857 for the year ended December 31, 2023 and recorded in interest expense. Subsequent to year-end, the Company has terminated the Flagstar line. On October 13, 2023, KDM MFB LLC, a Delaware limited liability company (the “KDM MFB”), a newly formed and wholly owned subsidiary of Korth Direct Mortgage Inc. (the “Company”) entered into a $100,000,000 Master Repurchase and Securities Contract credit facility with Churchill MRA Funding I LLC (the “Agreement”). The Company vis a vis KDM MFB, will use the credit facility provided by the Agreement (the “MFB Line ”) to finance the Company’s expansion of its lending operations in multi-family and multifamily bridge financing. See Form 8-k filed October 19, 2023 for more information. As of December 31, 2023, the Company had a balance of $600,000 on the MFB Line. Total amortization expense of capitalized loan fees was $19,100 for the year ended December 31, 2023 and recorded in interest expense.

WAREHOUSE LINE OF CREDIT

12 Months Ended

Dec. 31, 2023

NOTE 15 – WAREHOUSE LINE OF CREDIT

On March 31, 2022, The Company entered into a Master Repurchase Agreement and Securities Contract with Signature Bank (now Flagstar Bank) for the provision of an uncommitted warehouse facility up to $100,000,000 (the “Line”). The Agreement provides for approximately a three-year term and may be terminated in accordance therein.

The Line is floating rate and both the haircut percentage and SOFR-linked interest rate spread vary according to property type and time on the line. The Line offers up to 75% leverage on investment grade loans and is designed for 30 to 90 day hold periods but can accommodate up to a 12-month holding period, with decreasing leverage as time passes.

In connection with entering into the Line, the Company incurred loan fees of approximately $1,589,783 which is netted against the amount drawn on the line and is included in the warehouse line of credit, net in the accompanying audited Consolidated Statements of Financial Condition. Loan fees associated with the Line will be amortized on a straight-line basis over the term of the Line.

On March 20, 2023, Signature Bank announced that much of its assets, including our warehouse line would now operate under the New York Community Bancorp’s Flagstar Bank, N.A.

As of December 31, 2023, the Company had a balance of $10,164,436 on the warehouse line net of the costs associated with the final Agreement which is shown on the audited Consolidated Statements of Financial Condition as Warehouse line of credit, net. Total amortization expense of capitalized loan fees was $570,857 for the year ended December 31, 2023 and recorded in interest expense. Subsequent to year-end, the Company has terminated the Flagstar line.

On October 13, 2023, KDM MFB LLC, a Delaware limited liability company (the “KDM MFB”), a newly formed and wholly owned subsidiary of Korth Direct Mortgage Inc. (the “Company”) entered into a $100,000,000 Master Repurchase and Securities Contract credit facility with Churchill MRA Funding I LLC (the “Agreement”). The Company vis a vis KDM MFB, will use the credit facility provided by the Agreement (the “MFB Line ”) to finance the Company’s expansion of its lending operations in multi-family and multifamily bridge financing. See Form 8-k filed October 19, 2023 for more information. As of December 31, 2023, the Company had a balance of $600,000 on the MFB Line. Total amortization expense of capitalized loan fees was $19,100 for the year ended December 31, 2023 and recorded in interest expense.