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FPCM Loans - Providing First Lien Position on Commercial Properties

Barry Kornfeld


Barry M. Kornfeld is a longtime financial advisor who works with clients pre- and post-retirement as head of First Financial Tax Group. Barry Kornfeld specializes in first position commercial mortgage (FPCM) notes, which are backed by a first position lien on collateral property and as such are safer than alternative products.

Offering 6 percent annually, FPCMs combine stability and performance, as the lender obtains an optimal loan-to-value ratio. The first position lien provides priority in claims over the property, with the originating commercial lending firm taking the second lien on the same piece of real estate. This is an important safeguard in the unlikely event of a default.

An FPCM is safe and secure, as the originating firm has previously verified the value of the property through a professionally undertaken fair market appraisal. As the second position lien holder, the firm manages the entire loan process by taking in monthly interest payments from the borrower and distributing them to the lender. The contract includes built-in penalties for late payments that help ensure timely distribution of funds.

Kornfeld and his team are particularly effective in helping clients structure FPCM holdings inside of trust, joint, single and IRA accounts, who often utilize the concept of laddering inside the portfolios.

Barry M. Kornfeld is a longtime financial advisor who works with clients pre- and post-retirement as head of First Financial Tax Group. Barry Kornfeld specializes in first position commercial mortgage (FPCM) notes, which are backed by a first position lien on collateral property and as such are safer than alternative products.

Offering 6 percent annually, FPCMs combine stability and performance, as the lender obtains an optimal loan-to-value ratio. The first position lien provides priority in claims over the property, with the originating commercial lending firm taking the second lien on the same piece of real estate. This is an important safeguard in the unlikely event of a default.
An FPCM is safe and secure, as the originating firm has previously verified the value of the property through a professionally undertaken fair market appraisal. As the second position lien holder, the firm manages the entire loan process by taking in monthly interest payments from the borrower and distributing them to the lender. The contract includes built-in penalties for late payments that help ensure timely distribution of funds.
Kornfeld and his team are particularly effective in helping clients structure FPCM holdings inside of trust, joint, single and IRA accounts, who often utilize the concept of laddering inside the portfolios.

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