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Private credit is one of the most exciting and fast-growing areas in the investment world today, and in this episode of the Next Level Income Show, I had the pleasure of exploring it in depth with my good friend Ellis Hammond, Vice President at Aspen Funds. Ellis and I go way back—over six years—and I’ve always admired his ability to make complex financial strategies simple and actionable. That’s exactly what he did in our conversation about private credit and how investors can take advantage of this unique moment in the market.
So what exactly is private credit? At its core, it’s non-bank lending—think of it as filling the gap left by traditional banks that are pulling back due to stricter regulations and a backlog of maturing loans. With over $1.5 trillion in commercial real estate mortgages maturing in the next couple of years, banks are tightening their lending criteria. This has opened the door for firms like Aspen Funds to step in and provide creative, real estate-backed financing solutions with favorable terms for both investors and borrowers.
Ellis walked us through how Aspen approaches private credit with a macroeconomic lens, identifying long-term trends and building flexible strategies around them. Rather than pigeonholing themselves into one asset class, they invest across multifamily, retail, medical office, and even industrial development. Their private credit strategy primarily targets deals where they can lend at low loan-to-value (LTV) ratios—sometimes as low as 55%—providing a strong equity cushion and reducing downside risk. These are not distressed deals. In fact, they are often brand-new acquisitions that just need smarter capital to make the numbers work.
One of the most powerful insights Ellis shared was about the capital stack. Many investors diversify horizontally across asset classes, but neglect vertical diversification within the capital stack itself. That means you could be spread out across various asset types but still be taking the same kind of risk—common equity. Private credit allows you to invest lower in the capital stack, such as in senior debt, mezzanine debt, or preferred equity. These positions typically offer consistent cash flow and downside protection, and as Ellis put it, “Bank-like risk with equity-like returns.”
What I love about this strategy is how it fits into the broader real estate cycle. As I’ve said before, when interest rates rise, it pays to be the bank. And right now, the environment is ripe for private lenders to earn 10–12% returns while being in a senior or preferred position with substantial equity buffers. That’s why I’ve been talking about this shift for over 160 episodes now, and I’m thrilled to finally bring Ellis on to unpack it fully.
We also touched on why this moment is so unique. Between Basel III regulations and the sheer volume of debt coming due, traditional lenders simply can’t move fast enough. Private capital has stepped in to meet that demand. Ellis and the team at Aspen Funds are leading the way, offering accredited investors institutional-grade opportunities with solid returns and real security.
If you’ve been thinking about how to diversify your portfolio or reduce your investment risk without sacrificing returns, this episode is a must-listen. Ellis brings clarity, experience, and actionable advice that can truly take your investing to the next level. I’m also excited to announce a partnership between Next Level Income and Aspen Funds to bring more of these opportunities directly to you. Just visit nextlevelincome.com or reach out to me personally to learn more.
Until next time, invest smart and stay aligned with the trends.
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Meet our guest:
👉 Website: https://www.aspenfunds.us
👉Email: ellis@aspenfunds.us
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Christopher Larsen is the founder and Managing Partner of Next-Level Income. Since “retiring” after 18 years in the medical device industry he dedicates his time to helping others become financially independent through education and investment opportunities. Chris has been investing in and managing real estate for over 20 years.
While completing his degree in Biomechanical Engineering and M.B.A. in Finance at Virginia Tech, he bought his first single-family rental at age 21. Chris expanded into development, private-lending, buying distressed debt as well as commercial office, and ultimately syndicating multifamily properties. He began syndicating deals in 2016 and has been actively involved in over $500M of real estate acquisitions.
In addition to real estate, Chris has invested in equities, oil & gas, and small business lending, as well as being active in Venture South, one of the nation’s Top 10 Angel Investing groups. Chris lives with his wife and two boys (and Viszla, Lucy!) in Asheville, NC where he loves spending time with them in the outdoors and enjoying the food and culture that the region has to offer.
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