The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-10-27
THE REAL ESTATE MARKET
Lively DEMAND LAST WEEK
FOR GUARANTEED MORTGAGES.

FOR GUARANTEED MORTGAGES.
the title Companies Did . Good Business
In Tax Exempt 8 and . III Per Cent.
M0rtgages-Mor Buyers Also for Cheap
lNreehoIds where Owners Had 10 Sell.
One Of the immediate effects on the real
estate market OF last weeks run on the
banks was an increased demand for mort
gage investments. Many depositors who
closed their bank accounts put the money
at once n guaranteed mortgages. Officers
of the principal title insurance companies
reported a brisk business In this line OF
securities.
For a long time prior to last week these
companies have had few purchasers for
mortgages. Meanwhile they have invested
a good part Of their capital in realty loans
at the high rates prevailing for a year past.
with the result that there In on hand just now
an unusually large stock Of mortgages for
sale at attractive terms.
The companies guarantee the payment
Of both the interest and the principal
and the mortgages so guaranteed yield
the purchaser ) PER cent. and So per cent.
The former rate il furnished by mortgages
on improved Manhattan realty, while
the latter is the return on selected Brooklyn
mortgages. These returns are possible
because the companies themselves nave
placed the mortgages mt S1s per cent. and
8 per cent. which nave been the common
rates in Manhattan and Brooklyn respect
lively for upward Of a year.
As the value Of guaranteed mortgages
is supported not only by the property
which secures them but also by the credit
e -
can he no question as to their worth ~
Investments. In case foreclosure Pro-
ceedings become necessary the exr ense is
II course borne by the companies. Finally.
the mortgages are exempt from taxation.
There is consequently every rea son TO
believe That the investment demand for
such securities which developed last week
will continue to grow and that the current
forecasts OF an easy mortgage loan market
10y next February will be realized.
Another effect of last weeks financial
disturbance on the realty market was an
immediate increase in the number Of private
sales: 1t is evident that under present
conditions many realty owners are forced
10 sell. On the other hand. nothing has
occurred TO impair confidence in the ron
tinued earning capacity OF improved real
estate. According to brokers. there ia
less difficulty than might be expected in
finding buyers at private contract for
property offered ut valuation that would
he considered reasonable in the auction
| room.
Those who bought yesterday and the day
before were for the most part either in
vestors or well known operators Of financial
standing who have not been in the market
a. buyers for some time. The possibility
Thar - financial situation might arise which
wop Compel u number Of owners 10 part
WI Nv al reduced prices has of course
b's.i seen by experienced investors
and ~, ors, N there il said To he plenty
Of mon athe hands Of people of this sort.
Most O, the holdings disposed Of yesterday
were improved realty in built up sections.
No doubt the current selling represents
a good deal Of liquidation. But the fact
that the liquidation IL possible without
recourse on a notably increased scale TO
the auction room is a most reassurinE sign.
Private sales.
MANHATTAN STREET Bernard Smyth A.
Sons have sold for the John &. Orr Company
the plot +lNijO. ON the south side OF Man
haitian street. ai5 fee, west of Broadway.
%aysr i Tie sheffield FSrms-sIawsop-
combined plot. olxi5o. a large plant for ia
own use.
EIGHTlETH STREET. John ,. Kayanagh
East Eightieth street. a three story and
basement dwelling, on lot is.ixio2.2 ..
wATEh STREET. Douglas Robinson.
client No, iS7 Water street. a six story
brick business, building. on lot 20x5i ,3X
irregular 10 Emily 4. hent. who owns
IN" adjoining building; No. $50, at the
sou,ithst corner OF fie'cher street and
nov d pio. 'oAC";
NNlth RE -. IL. Ludlow " 20. have
sold for a client No. ~ Water street. a five
S,oTS Mirehouse' on iot Nsxs", norm OF
Vnn Snp,
FltIf-flkSI, Osgood Pell &
Co. have sold for Commodore H.. e. Benr-
1ist MS pr!vate stanle AT NO. lh3 est
rm.y.irs. a,rgf'; nuJoinins me northwest
soIner Oh oIN,n avenue. u Two story Dick
humar TTv t"HHrl"fr,oN M IeEu,ar' Inc
rHro,o a. ""P v" eHe q
,rNoy ,Cu%1-E L.. coh -
Lr.soN Eva ,ohen mas sold NO,
c,y v" Nv 9'''s ""'' oh t'
THRU ENIE-wiui. pioh, borr h.s
sold for c. Citizen No. 1925 Third avenue
81 feet south OF Seventy first street. n four
story tenement and store. on lot i~8.SGiO0. TO