The Washington times., 1909-04-17
DISTRICT REALTY
ALWAYS REGARDED
AS FINE SECURITY
Investors Are Eager to Make
Laws on Washington
Property.
CITY NOT AFFECTED
BY BUSINESS PANICS
Local Values Are Sure to In
crease as the Years
Go By.
Bv I. A. FLEMING.

Washington real estate is admittedly
an excellent security for loans, previd
ed the accommodations are made with
knowledge of local conditions and on
a. conservative basis.
To quote the language of a Washing
ton millionaire and f1nancier:
I have been lending money on Wash
ington real estate for thirty years and
I have never lost dollar II the bust
ness. The lender must see to it that
interest and taxes are promptly paid
and, in the case of buildings. the in
surance as we'll"
It doesn't matter in what district
the loans are made. There are sections
of the city that have come 10 be looked
upon as favorite residential districts,
there are others that are known as re-
tail centers. and certain divisions of
the city that have been favored by thes
administration IN the matter Of boule-
wards, lights, etc, and in making loans
these matters are taken into conSid-
GRAFTON.
Washington Is Unique
Washington enjoys a unique dIstiac-
ton. In the panic Of 1907 this was the
only city in the United States Of equal
size where clearing house certificates
were not resorted tO-where cash was
paid over the counter on all checks,
properly drawn, on presentation. 1t was
the only city where the banking frater-
nifty did not become overiy-nervous and
call loans TO the sacrifice OF realty and
other assets.
This is another reason why invest
ments in washington mortgages are
considered desirable, why investors in
other cities want them, why real estate
men expand their operations. assured
that they viii be given a fair show by
the financial interests and not compelled
70 take any old price IN times Of tenn
pOrary furry, in order TO meet the calls
of nervous bank officials
Uncle Sam pays out something over
32, 600 employees Of the various depart
ments are buying homes, making sub
stantiaI payments and finding ready
money for the necessary deferred pay
ments.
The Average of Loans.
The average loans on the run Of
Washington prope--y varies from 50 10
6S per cent Naturally location has
much to do with the percentage Of &C
comodation-the location and the char
acter Of the building or buildings on the
property or that are 20 be constructed
The lender must observe number
of other essential things = II would not
be wise to build a residence costing
$1,000 in certain sections of the city-a
so per cent loan on such a structure
would be equally bad judgment. The
principle is not TO build too good a
building for the location. and Il is
easy 10 see the application whether
applied to a home costing 100000 or 70
one costing more OF less. Nor does Ii
need the selection OF location 10 indi-
cate 10 the reader where the construc-
ton Of such a structure would be almost
as bad policy as the building of house
a lender is concerned
Percentage Conservative.
It is also natural that a lender would
be more geneross in the treatment Of
a client for loan on new house than
one that had seen much service. The
average of the loans is 80 per cent of
value-this being a safe conservative
proposition, and on this basis there IS
very little collateral in any location in
Washington that is not good collateral
for loans.
In the fashiona bic circles the basis is
materially higher. Where property has
a certain assured future as high as two
thirds valuation Is generally advanced
on mortgages.
Again washington is a cosmooolttap
city-it has all classes Of people. and
therefore a demand for ali classes OF
homes from the hovel to the palace. in
all kinds Of locations from the most
undesirable to the choicest. Therefore
the field of real estate mortgages Is
broad. attractive and inviting Under
such circumstances Washington is sure
to hold pre-eminence as a market for
real estate investments and real estate
mortgage loans.