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Chris Larsen explains why his firm buys distressed loans instead of originating them. They target loans with some delinquency where borrowers are reachable and own the property they live in, not performing loans that are already on track.
Chris Larsen explains why his firm buys distressed loans instead of originating them. They target loans with some delinquency where borrowers are reachable and own the property they live in, not performing loans that are already on track.
We do not originate a single loan. Okay. And that's by design. And that is our preference. Right. We buy distressed assets at their core. So performing versus non performing. For the listeners, the question is there's different degrees. Performing means Sterling, meaning they made all their payments, meaning they're perfect borrowers. They're great, great, great. We don't buy those. What we prefer is somewhere in the middle where maybe they have a rolling balance, maybe they are not performing at all. But we've been in touch with them and their owner occupying the building or the home. So there's boxes that we check. But the exact payments being 100% on time is not a priority for us.
