Some Distinctive Facts about First Position Commercial Mortgages

First Financial Tax Group  pic

First Financial Tax Group

Financial advisor Barry M. Kornfeld is co-founder of First Financial Tax Group (FFTG), a tax and income planning firm based in Florida. Barry Kornfeld’s group offers clients a safer fixed income alternative through First Position Commercial Mortgage notes (FPCMs), a real estate collateralized bridge loan.

FPCMs have first lien status on the commercial property securing the loan, thus the lender has a greater measure using the hard asset value backing the loan. Also, the specialty mortgage company that Kornfeld’s firm partners with, is considered the industry leader, and they take a second position, in every transaction, that is subordinate to all FPCMs. In other words, they have their own skin in the game, but they cannot get their funds (skin) out, until all of the FPCM funds have been returned, with interest.

In fact, the firm the originates the FPCMs will, in fact, contractually obligate itself to make payments to all FPCMs lenders, even if the underlying property borrowers defaults, and doesn’t pay them. They will do this because the high-value real estate supports the loans, and because it protects their second interest. What this means to FPCM clients is a more secure, and safer experience, from start to finish.


Advantages of First Position Commercial Mortgage Notes

Barry Kornfeld pic

Barry Kornfeld

Barry Kornfeld offers fixed income alternatives to clients seeking safer means of generating additional income. As a financial advisor, Barry Kornfeld focuses on First Position Commercial Mortgage Notes, or FPCMs. These notes are a type of commercial mortgage loan that is secured by tangible assets, and generally has a advantageous annual percentage yield.

Clients approach financial advisors who handle FPCMs to lend their money to firms that specialize in the short-term notes. These firms, together with third-party companies, identify commercial property owners qualified for these bridge loans. FPCMs are different from other fixed income alternatives in several key ways. Here are some of their advantages:

1. High yield over a short term – The lender’s money is locked in for only one year at a time, but he or she will still enjoy at least a 6% annual, fixed percentage yield, that is paid out monthly.

2. Security – FPCM firms structure the security of notes by ensuring that lenders have first-lien position and using the property’s equity as collateral. The value of the property is always more than the value of the loan.

3. Monthly interest payments – FPCM notes offer lenders monthly interest payments, regardless of the underlying commercial property owner’s borrower’s ability to meet payment obligations. The FPCM’s originator is contractually obligated to pay both interest and principal.

Former Federal Reserve Chairman Alan Greenspan

Alan Greenspan

Alan Greenspan


Independent financial advisor Barry M. Kornfeld has spent over 25 years successfully helping retirees with tax, growth and income, as well as estate planning. Committed to continuing his professional education, Barry Kornfeld has attended lectures by some of the country’s leading financial experts, including former Chairman of the Federal Reserve, Alan Greenspan.

In 1987, Congress confirmed Alan Greenspan as Chairman of the Board of Governors of the Federal Reserve. The first person to be appointed to five consecutive terms in this role, Greenspan served from 1987 to 2006, a tenure that spanned four different presidential administrations. Many respected him for his knowledge of monetary policy and how it affected the economy, and he had a reputation for being an inflation hawk, primarily concerned with how interest rates affect fiscal policy. When the Dow Jones suffered an unprecedented loss of 508 points in 1987, his decisive actions earned credit for stabilizing the markets.

Shriners Hospitals for Children Provides Pediatric Orthopedic Care

Shriners Hospitals for Children pic

Shriners Hospitals for Children

Barry Kornfeld is a financial advisor who assists his clients through focusing on First Position Commercial Mortgage Notes (FPCMs). Apart from his professional responsibilities, Barry Kornfeld also participates in charity work. One institution he supports is Shriners Hospitals for Children.

Donors offer financial support to Shriners Hospitals for Children to help the medical institution fund both patient treatment and research. The hospital concentrates on providing quality care in several specialty areas, one example being Orthopaedics. Such care has been the foundation of Shriners’ mission since it was established in 1922. Through the support of the community, the nonprofit hospital is able to provide orthopaedic care for children afflicted with various conditions such as hand disorders, scoliosis, and osteogenesis imperfecta.

Shriners Hospitals for Children also provides orthotics and prosthetics (O&P) patient care in several facilities. Its O&P departments work closely with occupational and physical therapists to provide the best possible care for its young patients.