The Washington herald., 1921-11-06
BUILDING HOUSES
and FINANCING IS
GREAT PROBLEM
Can Cooperate in Inter-
est of Realty Profess
sion and Public.
SUGGESTS METHODS
Investing Field Would Grow
TenfoId If Bonds Were
Available.
SUGGESTS METHODS
by W. r. DOUD.

from the world war Practically
every method of business has
changed to a greater or less de-
gree The manner OF living has
seemed to take on . new form,
and the world in general seems to
have suddenly developed into q diff
fcrent people. Old methods of
financing have given way to new
Ones.-N- T. E J.
The people first of all were
taught to buy bonds instead OF va
cant lots. or homes, with their saw
ings, while In former years only
the rich were approached by the
bond statesmen. Today the list has
been increased by thousands. Bond
and stock investments have been
sso divided as to make IL possible
Tor the salaried men and women
70 withdraw their>savfngs from the
ocal banks and trust companies
and invest in these securities A
great many Of these offerings
Promise high rates of interest, but
post OF them lack the quality of a
ound investment. Practically none
these offerings is or can be
uaranteed against a decline in
alue at any time, depending of
Prise upon the general rise and
VI the investment market
THE buyer very frequently does
OF take into consideration the fact
hat IL he expects absolutely safe
Security. he must have that Sc
pcurity based on real estate. An
analysis of the amount invested
and by whom, and of where the
money so invested is being used,
would furnish realtors one of the
reasons why new buildings cannot
be financed. and why mortgage
loans on sales made cannot be
fioated.
The amount of money that is an
nually withdrawn from the local
financial institutions. and sent to
the larger cities of the country,
and to foreign countries alone.
\ would go far toward financing the
new homes that are so greatly
needed at the present time.
The realtor is at this time more
han at any time in the last TWEEN
y-five years interested in one great
uestiOn. How shall We finance
ur sales and the building Of new
pmes?" This is without doubt
be big question in practically
(ery realtors office, great or small
In talking with a prominent real
on the subject recently, 1 found
m criticizing the banks, the trust
npanies and the building and loan
Pociations, claiming a lack OF in
est on their part as to the gen.
u interests of the city. He
Secially complained that they did
seem to care what happened to
realtor. or his business. Now
Ere never was a more mistaken
Ia. These institutions and espe-
billy the trust companies and
Hiding and loan companies do
RE, for they depend in a great
easure on the mortgage loans We
Ter them. to secure the interest
biCh produces the annual diVi-
nd. That is fully as important to
banker as our commissions are to
But before making a mortga ge
an, they must have the money in
Rsired loan, and not only that
ey must go still farther. They
ust keep a certain reserve to meet
ply Withdrawals.
( we then depend on these insti-
lions to float us, are we not
bsely related to them? So closely
fact that We are working to our
|Hn best interest every time We in
uce one of our clients who may
lot desire to purchase real estate,
10 invest the money we hand him
when we close his deal. in one of
these institutions.
There is another method of imme
date financing that will pay you to
| Investigate. 1t is somewhat similar
10 the first. Trust companies are
how making mortgage loans in
which they require the mortgagor
TO execute two separate sets of in
terest coupons, one for the rate
they must have for carrying the
overhead and creating a fair profit,
and the other for a rate which fur
nishes an investor a good return.
Coupons may be collected when
due each six months, by depositing
in any bank or trust company, ana
when the mortgage is due, the
amount invested is returned to the
investor. and at no time is there any
record made showing who made the
investment. There could not be a
loss to your client, as the trust
company stands back Of the inves-
tor, and It is doubly secured by a
first mortgage, certainly a safe
place for your friends who are or
who are not your clients to place
their money.
The field of investors can be en-
Iarged to a great extent by offering
these bonds on the instaIlment
plan. There are hundreds Of teach
ers. nurses, clerks and other wage
carriers, who have saved and laid
aside small sums. on which they
Aealize but little. They. 1 am sure
would thank you for showing them
| the way to make their savings &C
,cumulate more rapidly. and at the
Eame time have the satisfaction of
showing that they are taking no
finances of loss. This can be done
y having them purchase a bond.
br example of $1,000, on which they
ay $500 or $500. and agree with
Itfe company that they will make
future monthly payments in such
amounts as seem desirable.
The company will enter into a
contract with them that they shall
receive the regular interest on that
part Of the bond that is fully paid.
and will also give them the regular
Yrate paid on deposits on these saw