251: Non-Traditional Lending Generates Big Profits

In the world of Real Estate finance, property owners can end up in arrears on their existing payments. In these cases their debt may be sold off to other lenders. In other cases, borrowers may not be able to obtain conventional financing for various reasons. In either of these cases, borrowers may wind up utilizing specialty lenders who help them solve their problems. Carson Rasmussen, Principal at Fairview Partners, lends money to borrowers who don’t have access to traditional banks. He buys non-performing loans from traditional lenders at a heavy discount and also originates his own loans to borrowers in special needs situations. Carson makes very conservative first lien loans to his borrowers and has generated returns as high as 20% to his investors.