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FPCM
Questions


What is a First Position Commercial Mortgage?

A First Position Commercial Mortgage is a private third-party loan that is secured by commercial real estate. Private lenders select a commercial mortgage from the inventory to serve as collateral for their private loan. They are recorded on title and acquire a first lien position on the mortgage, and receive monthly interest payments at a fixed annual yield, with a return of principal at the end of the one year term.


Why are they called Secured Bridge Loans?

The phrase “Secured Bridge Loan” is a simple way to describe this lending opportunity. You receive the collateral pledged as security for the loan you are making. As a private lender, you select a particular commercial mortgage from the inventory to serve as collateral for your loan. A Secured Bridge Loan is not a mortgage investment pool and it is not a direct investment in real estate. It may also be referred to as a First Trust Deed Loan, Senior Interest Position Mortgage, Senior Position Note, and First Position Commercial Mortgage Note.


What is a Secured Bridge Loan?

The commercial mortgage firm used by Campbell Financial Corp executes only first mortgage transactions with commercial borrowers thus ensuring it holds the first lien on the property. When that first position lien is then assigned to a lender (you), it means you have a first position, and thus priority over any other liens or claims on a property if the property owner defaults.


With interest rates so low, why do borrowers come to a commercial lending firm instead of a bank?

Unfortunately, banks are not lending the way they used to. In today’s lending environment, real estate developers and commercial borrowers are seeking out alternative financing that they can receive in 2 to 3 weeks, which our commercial lending firm provides. It offers short-term bridge loans to commercial property owners based on the value of their property. The borrowers qualify for the mortgages because they are secured by the high value commercial assets.


What types of property are used as collateral in these transactions?

Generally, these mortgages are secured with commercial real estate, such as multi-unit apartments, office buildings, retail centers or mixed-use developments; though sometimes non-owner occupied, single-family homes that are held as investment properties and owned by a corporation or limited liability company may be accepted as collateral.


What are some of the terms of the mortgage given to the borrower?

The policies of this commercial lending firm dictate a maximum loan term of two years and up to only 65 percent of the value of the real estate. That means the properties that secure the mortgages are worth considerably more than the loans themselves at closing.


What type of due diligence is performed on these properties?

The commercial lending firm performs a title search to make sure it has an insured first lien position and thoroughly evaluates each property by conducting a comprehensive appraisal to confirm market value.


Are the properties insured?

Yes, the firm obtains insurance coverage on the encumbered property. This mitigates the risk of loss to the property’s value due to damage, destruction, natural disasters (earthquake, flood, tornado, hurricane, mudslide), and the like.


What is a lender’s collateral?

With loan-to-value ratios of 65% or less, the property’s equity is your collateral.


What is the paperwork required to get started?

When you lend on a Secured Bridge Loan, you enter into a Promissory Note and Loan Agreement that set the terms under which the commercial lending firm repays you. Blank template documents can be emailed upon request if you would like to review (or have an attorney review) the documents before making a decision.


How am I better protected from downside risk?

Your loan is secured by a hard asset collateral – the property itself. Additionally, the commercial lending firm participates by lending confidently alongside lenders and holds a second lien position on all commercial mortgages.


How do you establish that the property has no additional liens?

The commercial lending firm pays off any existing lienholders when it enters into a transaction with a borrower so there are no additional liens on the property. Additionally, it obtains a title policy for each property.


How do I verify that I hold a first lien position in the mortgage?

Upon request, the commercial lending firm will provide you with a copy of the title policy which indicates there are no other liens or claims above you.


Will my name appear on the land records of the property?

Yes. The commercial lending firm executes and delivers the first lien position documents in your name and files the documentation on the land records in the relevant jurisdiction.


Does the borrower make payments to me?

No. The commercial lending firm is contractually obligated to make your monthly interest payments and return the principal at the end of the term, regardless of the status of the underlying loan.


What happens if the borrower does not make payments or defaults?

Secured Bridge Loans are private transactions that are separate and distinct from the pledged collateral. As such, the commercial lending firm’s obligations to you are neither contingent upon nor subject to the performance or repayment status of the underlying commercial mortgage. If a commercial borrower does not make its payments to the commercial lending firm, or defaults, the firm remains obligated and shall continue to pay your monthly interest payments and return your principal at the end of the term according to the terms of your Promissory Note and Loan Agreement.


How am I taxed on interest from a Secured Bridge Loan?

You should consult a tax advisor or accountant for tax-related questions specific to your situation; however, the IRS typically taxes payments on first lien position interest holdings as ordinary income. You will receive a Form 1099.


How do I get started?

If you’d like to be a lender, call Campbell Financial Corp at 719-687-6220 or contact us by filling out our website form.


Want to talk to someone now?

You can either fill out this form on the right, or call us directly at (719) 687-6220
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Keith Donley
Keith Donley
18:25 03 Jun 14
James and I had recently met and had a great conversation. I found his knowledge was vast and comprehensive not to mention his experience in many areas of the financial world. Even though I learned much and gained a new perspective, we both came to the conclusion that it would be better, for my circumstance, that I not use his services at this time. He thought it best for me to continue diversifying into a broader range of vehicles with emphasis on stabilization in the short term. I will touch base with him in the future after my situation smooths out and go from there. I would recommend his services to those seeking a path of safety and security.read more
Ray Barry
Ray Barry
14:21 26 Mar 14
My wife and I met James about 5 years ago at a presentation he gave concerning preserving existing capital in retirement. I was on guard, as usual, but after spending individual time with him I quickly learned of his integrity and sincere caring for prospective investors, and people in general. He spent numerous hours explaining our options, without knowing if we would decide to use any of what he had to offer; he was very patient. James is a professional, competent, and trustworthy friend to this day.read more
Ray Greenway
Ray Greenway
01:35 06 Mar 14
We have known and worked with James for over ten years. He is one of the most conscientious financial planners I have ever met. James is truly interested in helping people with retirement planning. Anyone who works with James can be assured they are working with someone who's integrity is without question and who's primary goal is to help hes clients.read more
Linda Allred
Linda Allred
16:07 25 Feb 14
In the short time that I have known and worked with James, I have found him to be a very conscientious and knowledgeable advisor. He is well informed and honest about his approach. He readily admits what he can and cannot do which is a rare quality these days in the world of financial planning.read more
Jim Thompson
Jim Thompson
22:59 23 Feb 14
I have known James for 9 years now, and his advice has been invaluable! Because of following his wise counsel beforehand, we didn’t lose any money in the great financial crash of 2008. In many other ways James has made money for us, while totally protecting our assets. He always goes the extra mile to listen carefully and then taylor a plan that meets the client’s goals and desires completely. I can’t recommend James highly enough! Jim Thompson/ Flagstaff, AZ read more
Beverly Jopek
Beverly Jopek
20:18 23 Feb 14
I had a retirement account with a large company in Colorado Springs and the company moved several departments out of the U.S. I left the account with them and it was eventually moved to one of the big investment companies. When it was time for me to start taking yearly withdrawals from the account I did not have any success with their representatives. That's then James came into my circle of friends. With his guidance I finally received my investment and with the vast knowledge of James I was able to reinvest this money so there was not a penalty by the IRS. James has not only been my advisor but a true trusted friend and would recommend him to any of my friendsread more
Evelyn Adams
Evelyn Adams
16:14 22 Feb 14
We have had very good advice and tools given to us by James Campbell. He has always been very honest with us in presenting the pros and cons of any financial instrument. James has kept us up to date on plans that he knows are of interest to us and our financial goals.read more
Next Reviews
Campbell
5.0
powered by Facebook
Geoff Meiser
Geoff Meiser
2016-08-10T19:53:51+0000
Thank you James for your time and your knowledge. I will be recommending Campbell Financial Corp not only to my friends, but my business associates as well. Dont take my word for it, give them a call.read more
Nathan Yencha
Nathan Yencha
2016-05-23T19:05:17+0000

Now, through Campbell Financial Corp you can purchase fixed income products with safety that is unparalleled in the industry. Many people choose to move their IRAs to self-directed IRAs in order to take advantage of these very reliable products. These are appropriate for your “Must Be Secured” money, the money you CANNOT afford to lose; the money you need for income for the rest of your life. Some of our products are also appropriate for when you'd like to earn higher interest than you would in a savings account or CD, but don't need to access the money within 12 months.

A First Position Commercial Mortgage Note (also known as Secured Bridge Loans) offers 12-month terms with interest rates of 5% to 7% annualized, with other products offering up to 10% annualized interest. If you're looking for retirement income or a high yield safer financial vehicle, this is one of the best options available.

Until recently Structured Settlement Income Streams were only available to institutional investors but now they can be purchased through Campbell Financial Corp. Structured Settlements are one of the best low-risk investments available today and can offer retirement security.

 

Campbell Financial is located at: 350 W. Henrietta Ave Woodland Park, CO 80863

Now, through Campbell Financial Corp you can purchase fixed income products with safety that is unparalleled in the industry. Many people choose to move their IRAs to self-directed IRAs in order to take advantage of these very reliable products. These are appropriate for your “Must Be Secured” money, the money you CANNOT afford to lose; the money you need for income for the rest of your life. Some of our products are also appropriate for when you'd like to earn higher interest than you would in a savings account or CD, but don't need to access the money within 12 months.

A First Position Commercial Mortgage Note (also known as Secured Bridge Loans) offers 12-month terms with interest rates of 5% to 7% annualized, with other products offering up to 10% annualized interest. If you're looking for retirement income or a high yield safer financial vehicle, this is one of the best options available.

Until recently Structured Settlement Income Streams were only available to institutional investors but now they can be purchased through Campbell Financial Corp. Structured Settlements are one of the best low-risk investments available today and can offer retirement security.

Keith Donley
Keith Donley
18:25 03 Jun 14
James and I had recently met and had a great conversation. I found his knowledge was vast and comprehensive not to mention his experience in many areas of the financial world. Even though I learned much and gained a new perspective, we both came to the conclusion that it would be better, for my circumstance, that I not use his services at this time. He thought it best for me to continue diversifying into a broader range of vehicles with emphasis on stabilization in the short term. I will touch base with him in the future after my situation smooths out and go from there. I would recommend his services to those seeking a path of safety and security.read more
Ray Barry
Ray Barry
14:21 26 Mar 14
My wife and I met James about 5 years ago at a presentation he gave concerning preserving existing capital in retirement. I was on guard, as usual, but after spending individual time with him I quickly learned of his integrity and sincere caring for prospective investors, and people in general. He spent numerous hours explaining our options, without knowing if we would decide to use any of what he had to offer; he was very patient. James is a professional, competent, and trustworthy friend to this day.read more
Ray Greenway
Ray Greenway
01:35 06 Mar 14
We have known and worked with James for over ten years. He is one of the most conscientious financial planners I have ever met. James is truly interested in helping people with retirement planning. Anyone who works with James can be assured they are working with someone who's integrity is without question and who's primary goal is to help hes clients.read more
Linda Allred
Linda Allred
16:07 25 Feb 14
In the short time that I have known and worked with James, I have found him to be a very conscientious and knowledgeable advisor. He is well informed and honest about his approach. He readily admits what he can and cannot do which is a rare quality these days in the world of financial planning.read more
Jim Thompson
Jim Thompson
22:59 23 Feb 14
I have known James for 9 years now, and his advice has been invaluable! Because of following his wise counsel beforehand, we didn’t lose any money in the great financial crash of 2008. In many other ways James has made money for us, while totally protecting our assets. He always goes the extra mile to listen carefully and then taylor a plan that meets the client’s goals and desires completely. I can’t recommend James highly enough! Jim Thompson/ Flagstaff, AZ read more
Beverly Jopek
Beverly Jopek
20:18 23 Feb 14
I had a retirement account with a large company in Colorado Springs and the company moved several departments out of the U.S. I left the account with them and it was eventually moved to one of the big investment companies. When it was time for me to start taking yearly withdrawals from the account I did not have any success with their representatives. That's then James came into my circle of friends. With his guidance I finally received my investment and with the vast knowledge of James I was able to reinvest this money so there was not a penalty by the IRS. James has not only been my advisor but a true trusted friend and would recommend him to any of my friendsread more
Evelyn Adams
Evelyn Adams
16:14 22 Feb 14
We have had very good advice and tools given to us by James Campbell. He has always been very honest with us in presenting the pros and cons of any financial instrument. James has kept us up to date on plans that he knows are of interest to us and our financial goals.read more
Next Reviews
Campbell
5.0
powered by Facebook
Geoff Meiser
Geoff Meiser
2016-08-10T19:53:51+0000
Thank you James for your time and your knowledge. I will be recommending Campbell Financial Corp not only to my friends, but my business associates as well. Dont take my word for it, give them a call.read more
Nathan Yencha
Nathan Yencha
2016-05-23T19:05:17+0000

Campbell Financial is located at:
350 W. Henrietta Ave
Woodland Park, CO 80863

Mailing address:
PO Box 5167
Woodland Park, CO 80866

Call us at (719) 687-6220 or email us at Information@CampbellFin.com.