The Washington times. [volume] (Washington [D.C.]) 1902-1939, 1925-02-09
D. c. INVESTORS.
FAVOR FIRST
MORTGAGES
Realtors and Brokers Find
Growing Demand for This
Class of investment
BY RICHARD HATTON.

"A COMPREHENSIVE survey Oh The
District of Columbia investment
market indicates that the first
mortgage upon real estate CON
tinues to hold a prominent place
of favor with local investors
Financial institutions, realtors,
builders and investment brokers
are finding continuing public
response to their offerings along
this line.
The popularity of the first mort
gage as safe form of investment
is no new thing. In fact the
mortgage seems to be the oIde 1
form Of investment known to man
and it has come down through the
| ages as desirable way In which
the individual may invest his SUR
plus with more than a reasonable
expectation of profitable return,
and, what is more important. with
the risk Of loss reduced to the
minimum. 81
Early Records.
The first records of the. real
estate mortgage in the business
life of the world came from 4the
dim pages of history. 1t is stated
upon scientific authority that the
mortgage is the oldest form OF
Investment known to- man. Early
mortgages have been found carved
in stone or imprinted upon tablets
of clay, and, while modern bust
ness methods have surrounded the
mortgage with many legal restric.
tons and safeguards designed to
protect the investor, the under
tHyf ~ k.s.N . sSsA
seems to have remained the same
throughout the ages. Early Egyp-
fian investors looked with favor
upon the real estate mortgage and
the Greeks and Romans were not
behind them in estimating this
form of financial Investment. In
modern business and in present.
day city building the mortgage is
playing g. part of the utmost inn
portance.
1t Is well.known axiom that a
first mortgage arranged through q
responsible and reliable business
house, or between reliable contract
ing parties, offers quite as safe
security as do stocks and bonds.
In fact, there is hardly any form
OF investment yielding the same
return which equals the first mort
gage upon real estate wherein the
investor becomes a preferred credi-
tor with his interest practically
insured against loss through the
custom of not making a first
mortgage for more than SO per
cent of the value OF the property.
In case of default, the investor is,
thus amply protected.
At the present time, with real
estate values in the District of
Columbia continuing on the up
grade, a course they have followed
for over half a century. through
good times and bad in other sections
of the country, with practically no
downward turn, investment in first
mortgages in Washington and the
surrounding territory seems to hold
high place in the investment
market.
Increased Value.
The value in the first mortgage
to the local investor, outside OF the
fact that he is preferred creditor
whose interest must be paid, lies
somewhat in the fact that he is not
in the position of a stockholder or
a partner in a business with the
consequent liabilities and chances,
but is more secure by reason OF
his status, and his own business
efforts in increasing prosperity and
growth in the District of Columbia
work to increase the value and Sc
curity of his investment. His Sc
curity, according to present pre-
dictions, predicated upon the past
growth of the city of Washington,
the constantly increasing real estate
values and the confident knowledge
that the city will continue to ex-
pand through the years to come,
appears to be as guilt-edged as
anything that can be found. The
investor in a mortgage Or mortgage
bonds holds a first lien upon the
property and, provided the titles
are clear and the mortgage is not
made too near the value OF the
security, a condition which does not
obtain in the District OF Columbia
first mortgage offerings, 1t is hard
to find a more attractive invest
ment.
1t is not anticipated that there
will be any falling off in the pres
ent demand for the first mortgage
upon. District of Columbia property
as a form of investment. The de-
mand for this form of investment
has always been good in the District
because of the quality of the in
vestment, the conservative rate and
the practical insurance that prop
erty values here would increase
from year to year. The generally
expressed sentiment in the invest
ment field today is that, the offer
ings now being made along the
line of first mortgages are well
worthy the consideration of the
investing public.