Private Lending Sector Growing

There continues to be a lot of opportunity in the private lending space, according to Matt Burk, CEO of Fairway America, and that underwriting standards are loosening, which he thinks will not be beneficial to some private lenders in the long run.  The pendulum has swung hard from money being hard to come by to lots of people being in the business and they are accepting less return for more risk, with underwriting standards deteriorating.  Burk sees this trend continuing through the next year.  

With so many private lenders, it's working against them, says Burk, because so many are jumping back into the space so aggressively.  The credit facilities are also coming back, providing more access to capital than there has been for quite some time, a trend which he sees continuing as well for the next year.  

Matt BurkCEO, Fairway AmericaSource: linkedin.com

Matt Burk

CEO, Fairway America

Source: linkedin.com

Burk believes alternative investments will continue to grow rapidly and sees an increase of private money coming into all types of deals, not just private lending.  He also thinks that a lot of people don't know what they're doing and don't how to look at them and assess risk very well, so there will be some "lambs slaughtered" as people make money.  It's going to be a "bull market in the small balance real estate space and private lending space" for the next few years, Burk says.  

Burk sees opportunity right now in small balance real estate funds.  These funds, that for years could not advertise or solicit and as such, a vast majority of credit investors don't know they exist, will come significantly to the forefront in the next few years.  Overall, he believes the investors will be winners if they are smart enough to pick the good from the bad.  

Fairway America is an advisory and consulting practice helping small balance real estate people, including private lenders, note buyers and distressed debt acquisition people, in setting up their own proprietary fund.  In doing so, they help them architect, structure, create and launch the fund, which Fairway America administers.

Matt Burk, CEO of Fairway America spoke with Alternative Investing News, providing online alternative investing video news content.  Alternative Investing News is a featured network of Sequence Media Group.  This video was brought to you by Vantage Self-Directed Retirement Plans. 

J.P. Dahdah

After graduating from The University of Arizona where he earned dual degrees in Finance and Marketing, Mr. J.P. Dahdah began his professional career in 1997 as a financial advisor with American Express Financial Advisors. In 1999, he founded Dahdah Global Wealth Management, LLC, a comprehensive wealth management company which specialized in working with business owners. In June 2004, Mr. Dahdah founded his second company, Entrust Arizona, LLC. Entrust Arizona provided self-directed retirement plan administration and custodial services to individuals and small business owners who desired to include non-traditional assets, such as real estate, as part of their tax-deferred and tax-free portfolios. Mr. Dahdah earned the Certified IRA Services Professional (CISP) designation by The Institute of Certified Bankers in 2007, and in 2009, he began hosting a weekly “Wealth Wednesdays” radio show on KFNN 1510AM. In that same year, the Arizona Small Business Association (ASBA) presented Entrust Arizona with “Arizona’s Companies to Watch” Award, an honor celebrating second-stage entrepreneurs. Experiencing an annualized revenue growth of 28%, Entrust Arizona’s client base grew to over 6,500 clients and $600M in retirement assets in less than seven years. A testament to the Company’s size, strength, and growth, Entrust Arizona re-branded and changed its business name to Vantage Retirement Plans, LLC, on January 3rd, 2012. Mr. Dahdah has been happily married since 2008 to his wife Erin and is the proud father of his daughter, Liliana Sofia and son, Juan Pablo II.