New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1913-01-26
TO AUCTION INCOMES
New Plan Provides That Build
ing Returns Be Certified.
JOSEPH P. DAYS IDEA
Well Known Auctioneer to
Teach Doubters the Possibll-
tiles of Live Realty.

tonCer and broker. announced yesterday
that he has perfected plans for selling
income producing property under an alb
solutely new plan which he believes will
bring thousands of new investors into
the New York market.
The plan consists of two major feat
ures-one the selling of property certified
as TO income, the other vast educa-
tional advertising campaign TO educate
new investors to the fact that income
producing real estate in the live sections
Of New York offers one of the best and
safest income investments in the world.
The first practical trial OF the new plan
will be an investors income auction sales
day at l. m. on March is, 1915. in the In
change Salesroom. Nos. "A and 10 Nesey
street. 10 be advertised very shortly. AT
that sale Mr.. Day will offer properties
under such conditions and with such
complete facts and proofs that ii will be
a safe place for widows and orphans 10
invest their inhevitances. The entire aim,
according TO Mr. Day, VII! be 10 attract
those who have never before invested in
real estate and TO surround them with
every possible safeguard. Mr.. Day then
intends 10 hold one such certified sale
every month. or at least as often as he
can get together a satisfactory list N
gilt edged, income making bargains that
he can certify TO amateurs.
After careful canvass Of thousands OF
people who invest in other forms OF IN
come securities, Mr.. Day became con-
WINGED that there were thousands of peo-
i N..,.- 80 -s,, mi h,
cause they do not understand its income
possibilities and because they think they
lack the knowledge necessary 10 buy
with due safety of capital and positive
assurance of income Many Of these
seemed 10 have a certain general conf
dence in real estate, az shown 10y their
willingness 10 buy real estate bonds or
invest in certified mortgages. They were
glad TO buy these real estate securities at
prices that would net them from a. 10 >
per cent but would not take title that
would clear anything up to : or per
cent or even more. Apparently they were
attracted by belief in the stability of the
other forms and did not realize that
actual purchase Of property could be
made 10 give just as great STABILITY and
could be entered into by amateur buyers
with just as much safety 10 principal and
equally safe assurance OF steady incomes.
In Mr. Days opinion real estate is like
any other commodity--Can be valued just
as accurately as anything else and need
contain no mysterious or intangible ele-
ments which cannot be judged safely by
ordinary common sense methods. The
essence of his new plan is 10 strip in
come property Of all guesswork and offer
IL with such abundance of facts and
proofs OF value income and stability that
any one possessed of ordinary common
sense can feel secure in investing.
In the case OF each property offered the
owner must make AFFIDAVIT as to net in
come and make full statement under
oath of all taxes, interest on mortgages,
repairs, maintenance, service. heat, light.
water, power. etc. There will also be a
sworn certificate from the owner that
rent rolls or leases are not padded and
do not hold any hidden rebates. free rent
or other gifts to tenants. In many cases
the sworn statement as 10 net income will
Include figures of average income, average
carrying charges, etc.
The Realty Notice Corpora ton will GER
tfy assessed value and that all back
taxes have been paid and that the parcel
IS free from liens. This company VIII
also give notice Of any city action under
way that would constitute lien against
the parcel.
According to Mr.. Day. only gilt edged
properties in live neighborhoods which
make a satisfactory income statement
will he admitted And" he said. be
fore admit parcel am going to have
a mighty satisfactory statement from the
owner as TO why he wants TO exchange 8
sure, conservative income producer for
cash. Also. as far as we can We are
going to detect any elements In the in
.scome statement which do not represent
the normal condition OF the property. Fol
property TO be admitted TO the sale ouI
experts must show that the actual value
of the property is such that II provides
solid margin for capital which seeks
merely conservative income return. Ir
other words. II must be safe 10 capitalize
net rent at a low percentage and still
have capital protected by actual value
We want purchase money to so in OF
tho same basis that bond money would
be invested For this same reason
We shall exclude all properties tina
have any factors which in our judgment
point to decreasing rather than stable ol
increasing land value. Our aim. however
is not TO encourage the Spectator; We
want to serve the investor. If his pur
chase does rise in value he can REGARD
this fact as & by-product.
II have specifically designed this new
system as TO certifying income for In
vcstors who have definite sum 10 In
vest and want to get certain net income
from II. II is designed for the man wh'
has 81. go upward and wants 10 make 4
pay 5. or per cent at least on his
money. or as large a sum as he car
without endsngering his principal. W.
arc going to make this as easy as buying
stocks and bonds. To do this we have go
ito make absolutely clear the relation Of
net income to equity beyond mortgage
The owners sworn statement will Civ
the investor all the facts he needs. and =
simple calculation In percentage vii
show him how much he can pay for the
equity and still net the desired percentage