IOR 10-K & 10-Q changes, risk factors and insider trading

The following discusses those risk factors that thatwe believe could affecthave a material effect on our business, operations and financial condition. If any of these risks, as well well as other risks and uncertainties that we have not yet identified or that we currently believe are not material, actuallybecome realized, occur, we could be materially adversely affected and the value of our securities could decline.affected. In addition, the following risk factors may contain “forward looking statements” and should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations, and the financial statements and related notes in this Annual Report on Form 10-K. An investment in our securities involves various risks. All investors should carefully consider the following risk factors, applicable to us and our assets in conjunction with the other information in this report before investing in our securities.

The collection of our receivables are dependent upon the ability of the assets held by others that secure the notes or fund receivable payments to produce sufficient cash flow to service these notes and receivables. Changes in general or local economic conditions in the southwestern United States and, in particular, the Dallas, Texas area can have an adverse effect on the payment of these notes or other receivables.

We may incur indebtedness that bears interest at variable rates. Accordingly, ifIf interest rates increase, so willmay our interest costs, which would adversely affect our cash flow and our ability to pay principal and interest on our debt and our ability to make distributions to our stockholders.debt. Further, rising interest rates could limit our ability to refinance any existing debt when it matures.

Substantially all of our assets are receivables from related partiesparties.

The following discussion is based on our Consolidated Financial Statements Consolidated Statement of Operations, for the three and six months ended MarchJune 31,30, 2026 and 2025 and is not meant to to be an all-inclusive discussion of the changes in our net income applicable to common shares. Instead, we have focused on significant fluctuations fluctuations within our operations that we feel are relevant to obtain an overall understanding of the change in income applicable to common shareholders.

Comparison of the three months ended MarchJune 31,30, 2026 to the three months ended MarchJune 31,30, 2025:

The decrease increase in net income is primarily due to ana increasedecrease in interest income from related party receivables.receivables due to a decline in interest rates.

Our principalmain liquidity needsneed areis to fund normal recurring expenses. Our principal sources of cash are and will continue to be the collection of mortgage notes receivables, and the collections of receivables and interests from related companies.

We anticipate that our cash and cash equivalents as of MarchJune 31,30, 2026, along with cash that will be generated in the next twelve months from our related party receivables, will be sufficient to meet all of our current cash requirements.