What Is a First Position Commercial Mortgage?

Barry Kornfeld pic

Barry Kornfeld
Image: fftaxgroup.us

Barry M. Kornfeld is a financial advisor and co-owner of First Financial Tax Group in Boca Raton, Florida. In this position, Barry Kornfeld focuses on assisting clients in building retirement funds through first position commercial mortgages (FPCMs), which differ from other retirement strategies in several ways.

A FPCM is a secured 12-month loan that presents clients with a retirement alternative considered to be safer than many other options. This is because the mortgages that back this retirement strategy are commercial in nature, leading to greater market stability and a higher yield on returns. The properties involved in an FPCM can be one of a wide variety of real estate options, including mixed-use properties, office buildings, or other high quality commercial real estate assets.

An FPCM pays out monthly interest to its holder, at a fixed rate of 6 percent per annum. Over the course of one year, clients with FPCM notes earn income on a monthly basis and receive a full return of principal once the FCPM loan term has reached it’s maturity.


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