Kurt Carlton discusses the inefficiencies of the MLS for a good real estate investment strategy. It's currently hard to find good deals, an MLS doesn't show the scale of vacant housing in the U.S., and some sellers often prefer off-market options that avoid inspections and repairs. We also talk broader market dynamics as today’s challenges stem not from distressed sellers, as in 2008, but from an aging housing stock and a severe shortage of new construction. Local real estate investors are best positioned to help restore inventory by rehabilitating vacant homes, offering a scalable solution to a long-term housing crisis.
We discuss...
- Kurt Carlson has nearly 20 years of experience in real estate, specializing in distressed and value-add residential properties.
- Unlike the MLS, Kurt's real estate platform targets off-market and undervalued properties not suited for traditional homebuyers.
- The MLS is inefficient for distressed properties, as typical buyers are discouraged by repairs and inspections.
- Investors view property issues as opportunities to create value through design, rehab, and operational efficiency.
- Many realtors prefer listing distressed homes on Kurt’s marketplace rather than handling inspections and contractor coordination.
- Local investors can rehab properties more efficiently and cost-effectively than distant or uninformed sellers.
- There are roughly 15 million vacant homes in the U.S., presenting massive hidden inventory potential.
- Despite high housing demand, new construction is at historic lows—fewer homes are being built now than in 1992.
- Builders face high regulatory costs, land expenses, tariffs, labor shortages, and unpredictable demand cycles.
- Government programs often inflate demand rather than addressing supply constraints in affordable housing.
- Local real estate investors are critical to solving the housing crisis by repurposing vacant homes into livable inventory.
- Supply-demand imbalance persists because builders can’t profitably create affordable housing in high-demand areas.
- There is plenty of capital in the market, but the housing market is not clearing due to mismatches in pricing and affordability.
- Out of all homes sold in the U.S., one in five is purchased by a real estate investor, the majority of whom buy fewer than 10 homes per year.
- The perception that Wall Street is dominating the housing market is misleading; most activity is by small business operators.
- There is strong demand for single-family rentals (SFR), especially for families who don’t want to live in apartments.
- Revitalizing a few homes in neglected neighborhoods can start a chain reaction that attracts more investment and increases values.
Today's Panelists:
- Kirk Chisholm | Innovative Wealth
- Barbara Friedberg | Barbara Friedberg Personal Finance
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For more information, visit the show notes at https://moneytreepodcast.com/real-estate-investment-strategy-kurt-carlton-716