Explaining First Position Commercial Mortgage Notes (FPCMs)

First Financial Tax Group pic

First Financial Tax Group
Image: fftaxgroup.us

 

 

Barry M. Kornfeld is a financial advisor and principal of First Financial Tax Group, which is based in Boca Raton, Florida. Barry Kornfeld offers an objective approach to clients, helping them develop alternative income plans to meet their financial goals. He focuses on first position commercial mortgage notes (FPCMs), which are typically a less risky endeavors than traditional bonds and stocks.

FPCMs are short-term loans, which means they offer increased flexibility for clients. They also pay a dependable monthly income that does not fluctuate based on the state of the market. This makes them one of the more dependable options for those facing or in retirement.

These higher return vehicles are secured by commercial real estate. All that lenders need to do is work with Kornfeld and his team to use a commercial mortgage to serve as the collateral for their 1-year loan. The client is secured by having the first lien position for the mortgage on that high grade commercial real estate asset. In addition, the client will be recorded on the title on this commercial real estate.

The first lien position is important because it means that the lender has priority over all other liens on the property, thereby giving the client a great deal of security. Lenders are able to use both qualified and non-qualified funds for the loans, including trusts, IRAs and 401(k)s, or can lend under their own names.

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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.