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                                                                EXHIBIT 23.1

                          CONSENT OF INDEPENDENT AUDITORS


We consent to the reference to our firm under the caption "Experts" and in
the headnotes to "Summary Historical Financial Data" and "Selected Historical
Financial Data" in the Registration Statement (Form S-4) and related
Prospectus of American Real Estate Finance Corporation (the Company) for the
registration of shares of its common stock and to the use of our report dated
March 27, 2002 with respect to the balance sheet of the Company dated March
27, 2002 included therein, to the incorporation by reference therein, and of
our reports dated January 4, 2002 with respect to the financial statements of
American Strategic Income Portfolio Inc. and American Select Portfolio Inc.
included in their respective Annual Reports (Forms N-30D) for the year ended
November 30, 2001, and our reports dated June 29, 2001 with respect to the
financial statements of American Strategic Income Portfolio Income Inc. II
and American Strategic Income Portfolio Inc. III included in their respective
Annual Reports (Forms N-30D) for the year ended May 31, 2001, filed with the
Securities and Exchange Commission.

/s/ Ernst & Young LLP

Minneapolis, Minnesota
March 28, 2002