Note 6 – Related Party Transactions

Management Agreement

Prior to the Internalization, the Company was subject to the Management Agreement, the material terms of which are summarized in the section titled “Business — Our Advisor and our Management Agreement,” contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 filed with the SEC on March 9, 2020.

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Management Fees and Accrued Management Fees

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For the three months ended September 30, 2020 no management fees were incurred and expensed by the Company. For the  nine months ended September 30, 2020, and prior to the Internalization, management fees of $4,024 were incurred and expensed by the Company in accordance with the terms of the Management Agreement. For the three and nine months ended September 30, 2019, management fees of $1,621 and $4,539, respectively, were incurred and expensed by the Company. As a result of the Internalization, there were no accrued management fees due to the Former Advisor as of September 30, 2020. Accrued management fees due to the Advisor were $1,727 as of December 31, 2019. No incentive management fee was incurred by the Company during the three and nine months ended September 30, 2020 or 2019.

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Related Party Balances

A rollforward of the due from related parties and due to related party balance, net, as of September 30, 2020 is as follows:

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