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Why Choose First Position Commercial Mortgage Notes?

Barry Kornfeld

Barry M. Kornfeld has worked as a financial advisor for decades. As principal at First Financial Tax Group in Boca Raton, Florida, Barry Kornfeld leverages his experience to serve clients seeking secure income strategies. One area of Kornfeld's expertise lies in first position commercial mortgage notes, or FPCMs.

Those who are looking to take an alternate approach to retirement income might consider adding FPCMs to their portfolios. Obtained through high-grade commercial real estate-backed loans, these notes typically attract individuals for the following reasons:
Reliable - FPCMs offer more reliability than other forms of income due to their unique setup. On the property title itself, note holders appear as senior lien holders, which signifies that their loan is specifically protected through their real estate asset.
Temporary - Unlike other loans, FPCMs only last for 12 months. This short-term solution minimizes financial risks while awarding starting annual interest of 6 percent, which is paid out each month throughout the duration of the note. These conditions make FPCMs an effective and reliable temporary source of income.
Flexible - As long as they have the minimum of $25,000 to contribute, individuals can purchase their FPCMs with funds from a wide variety of account types, including 401(k) or IRA accounts.

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