DALLAS—As in all aspects of business, there are risks in buying loans, but in interviews that took place during the fourth annual RealShare Distressed Assets Conference, it became clear that for those with strong constitutions, there’s money and growth to be made. The RealShare Conference Series is produced by ALM’s Real Estate Media Group, which also publishes Real Estate Forum and GlobeSt.com.

In an interview with GlobeSt.com, Bob Kline, principal and CEO of RW Kline Cos., said the growth is there, and he sees the market expanding easily for another two to two and a half years, for paper backed by assets of all stripes and located all over.

In fact, his shop alone did $356 million in the first quarter alone and is eyeing a $2-billion year. “And what we can’t sell, the lenders and servicers will convert to REO,” he states.

But the market isn’t without its sand traps and in the interview as well as on the panel discussion, speakers told novices to beware, simply because: “This isn’t like owning real estate.”

Also various states are actually eyeing restrictive laws. Nevada, for one actually passed legislation that peels away the contractual rights of the lender if a loan forecloses. In the panel discussion, Patrick McGeehan of McKenna, Long and Aldridge, indicated his belief that the law is actually unconstitutional.

For his money, Kline as a buyer would gravitate to CMBS loans. Typically non-recourse, they morph into full recourse if the seller files for bankruptcy.

“At the end of the day,” he stated, “ this is all about securing residual income.”