Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1919-05-25
HOME BUILDERS
STARTED BY ITS
PRESENT HEADS
Loan Money Only on Build
ings 1t Erects or Orders
for the Owners and
Takes Mortgages.
BY c. G. SINNER.

Builders was incorporated its pres
ent managers and founders erected
buildings both for homes and for
business. These buildings can b.
seen any time as evidence of thi:
fact.
Private money was employed be.
fore Home Builders was incorpc,
rated to finance the cost of construc.
ton for those owners who needed
to borrow. Private parties who had
loaned their money for this purpose
accepted the MORTGAGE on the new
property to be built as their securi-
ty, End received the interest thereon
. until the mortgage matured, while
we received the builders profit.
AS the years went by this business
steadily increased. Aud as the de-
mand for new building IS increased
the demand for more money in.
creased also. Money in larger
amounts than that available from
private individuals was needed to
finance new homes and other build
incs. 1t therefore became necessary
to incorporate Home Builders.
Home Builders was incorporated
to further aid The development of a
business that was already going for
several wears and had proved a sue
cess. The ma gnitude of the bust
ness demanded a corporation.
Not an Experiment.
Home Builders was not incorpo-
rated to raise money to try out
some theory or an experiment first
figured out on paper. 1t is not an
uncommon thing that money raised
to finance theory results in large
percentage of failures. Whereas
money raised to finance going and
growing business, that has. been a
success for many years. issnot like
financing a theory or experiment.
This fact makes clear the reason
why Home Builders was able to pay
dividends out of profits earned the
first year and every year thereafter,
besides laying up a substantial sur
plus and reserve fund. as shown by
our financial statement.
Incorporation made it possible for
investors, large and small, to place
their money on gilt-edge real estate
mortgage security in Home Build
ers. More than 5000 persons repre-
senting twenty-five states have taken
advantage of this opportunity to be-
corue shareholders in Home build
ers. Inc. and they have been receiv-
ing 6 per cent per arnum dividends,
payable semi-annuaily, January l
and July I.
The man with small sum to in
vest finds this plan ideal. He has,
say, $780, $500. $3.50 to put out at
interest. Not enough(to make a loan
on real estate; anyone wishing to
borrow needs more than such an in
weston has to loan. What shall he
do with his money? Home Builders,
Inc, guarantees him E per cent on
his shares, secured by mortgages
that are absolutely protected-and
how?
Home Builders, Inc, loans only
on buildings it erects to order for
the owners and on which it takes
mortgage to protect its loan. 1t
makes the contractors profits on
the building and takes the regular
rate of interest from the borrower.
1t knows the building is we'll CON
structed and will not deterioriate in
value because it has pat it up: has
superintended its construction and
bought the materials, with the fact
in view all the time that the building
and the land on which it stands are
its security for the loan that put up
the. structure.
So the small investor has gilt
edged security-is helping to make
the city grow, and is getting per
cent for his money. And, he does
all this if he has ST or $4,000 invest
ed in shares. The shares are tax
free in Nebraska, and are exempt
from normal federal income tax.
Another advantage to the investor
in Home Builders is the fact that
his shares are convertible into cash
any time after one year by resale
through the American Security COM
parry. fiscal agents. upon 80 days no
tice to obtain his money.
Since its organization, Home
Builders, Inc. has built up sur
plus of $7275365 and reserve
fund of $l8.437.2S. Some of the rea-
sons for this big surplus and reserve.
are:
1t enters into contracts to con-
struct buildings. large or small. and
derives profit from such contracts.
1t has built up large organiza-
ton in its construction department
OF expert builders. who are supplied
with modern labor-saving machinery,
insuring economy and good work.
II has a purchasing department
which knows how to buy materials
to the best advantage-protecting
the interests of the owner. and in
surfing the builders profit. which
goes to home builders.
Helps to Finance.
1t helps to finance some OF the
buildings it constructs, taking mort
gage security upon the properties
and deriving interest income there
on.
It makes its loans only upon new
buildings constructed by it for the
owner. so it knows their true value
and that its security is absolutely
good
Home Builders has nearly a mil
lion dollars in such mortgages, on
property which is increasing in
value, and on these mortgages par
tial payments are made periodically
to lessen the debt and enhance the
value of the security.
The company does not speculate.
It builds to order only. 1t has no
bonded debt.
AS share are issued and payments
are made on mortgages, money is
available for new building purposes.