Whole Loan Mortgage

Where Do These Investments Come From?
Firstbanc originates, underwrites and closes private 1st trust loans to qualified real estate owners, investors and developers in the Metropolitan Washington DC market. These loans can be used for acquisition or refinance and can be secured by raw or improved land, income producing properties or single family residences. We do not lend on owner occupied residential real estate. Every loan is scrutinized to quantify the overall risk of the transaction and the feasibility of the strategy for retirement of the debt. See Underwriting & Due Diligence.

Why Are Whole Loans A Good Investment?
Walt Whitman once said ”invest in land, because they aren’t making any more of it.” That means the laws of supply and demand work to your advantage. With Whole Loans, you’re investing in a promissory note secured by real property. Your security is the equity in that real estate. Firstbanc requires that the borrower have at least a 30% equity margin after the subject debt. This loan-to-value ratio gives our investors peace of mind. Our base rate of return is 10%. Other returns are available depending on factors such as the nature of a particular property and the qualifications of the loan applicant. That is if you are willing to invest outside our stated guidelines, but still with our professional underwriting, evaluation and servicing higher returns are available.

What Secures Your Investment ?
Your investment is secured by a deed of trust, Whole Loan or mortgage recorded against the title of the borrower’s property. Unlike deposits in a bank or savings and loan, which are generally insured by a federal agency (such as FDIC) and may usually be withdrawn with limited notice, the promissory note: (1) involves some risk to principal (a typical feature of all investments); (2) establishes a specific and predetermined period of time for the repayment of your investment; and (3) does not benefit from insurance issued by a federal agency.

What Is The Liquidity Of Whole Loan Investments?
Whole loans are liquid investments however not as liquid as stocks or bonds. Should you need to liquidate your investment simply contact us and we will attempt to transfer your loan to another investor. Usually this process only takes a week or two to complete a transfer. If you believe you will need greater liquidity then whole loan investing may not be for you. At any time an investor is able to sell or otherwise transfer the note to someone else such as a family member or any third party. If you are interested in such a transfer simply contact our servicing department and we will provide you with the proper form necessary to make the transfer it correctly.

Are Mortgage Investments A Good Way To Diversify My Investment Portfolio?
Whole Loans are a great way to diversify your investment portfolio. Many investment advisors recommend a mix of investments to increase overall investment returns, while lowering risk. Stocks and mutual funds can offer a high return, but also have high risk. Conversely, fixed investments like bonds and CD’s have lower returns but much lower risk. In actually, bonds today may offer a very poor return and a high risk of diminishing value. An alternative is Whole Loan investment, which generally have higher returns than many other fixed rate investments, and less risk than stocks, since all loans are secured by real property. These use Whole Loan Investments to further diversify your portfolio, to increase your overall return and further reduce risk.