Quarterly report pursuant to Section 13 or 15(d)

INVESTMENTS

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INVESTMENTS
9 Months Ended
Sep. 30, 2016
Schedule of Investments [Abstract]  
Investment Holdings [Text Block]
NOTE 4. INVESTMENTS
 
Investment in Rich Uncles REIT I
 
On June 28, 2016, the Company invested $2,000,000 for 200,000 shares in Rich Uncles Real Estate Investment Trust I (“Rich Uncles REIT I”), an affiliate of the Sponsor. As of September 30, 2016, the Company’s investment which represents approximately 2.4% ownership interest in Rich Uncles REIT I. The Company has the ability to exercise significant influence over the operations, financial policies and decision making of Rich Uncles REIT I, as the Sponsor and the board members are the same for both Rich Uncles REIT I and the Company. In addition, as there is no public market to sell shares for Rich Uncles REIT I, this investment is considered to not have a readily determinable fair value. Accordingly, the Company has accounted for its investment in Rich Uncles REIT I under the equity method of accounting. As of September 30, 2016, the Company did not identify any indicators of impairment related to its investment in Rich Uncles REIT I.
 
As of September 30, 2016, the book value of the Company’s investment in Rich Uncles REIT I was $1,995,700. During the three and nine months ended September 30, 2016, the Company recognized $4,300 of loss with respect to this investment.