With a booming economy and fewer foreclosed homes hitting the market, one might think it would be difficult for a firm touting it can find ‘deep discount, off-market investment properties,’ for real estate investors to continue to flourish — but that’s been part of New Western Acquisitions’ business plan.

The Irving-based real estate investment resources firm has organically grown more than $110 million in 2016, which is a year-over-year growth rate of 46 percent. That makes it the No. 2 fastest-growing middle market firm on the Dallas Business Journal’s Middle Market 50 list.

The driving force behind New Western’s rapid growth is the growing number of real estate investors — both national and international investors — wanting to bank on the U.S. housing market rely on the firm’s data and information to make their deals, said Kurt Carlton, the firm’s CTO and founder.

“We serve the real estate investment community and acquisition services are really popular and continuing to grow and stabilize,” Carlton, who spent last week meeting with European real estate investors, told the DBJ.

“This industry isn’t just for semi-professionals anymore, but real companies,” the 36-year-old executive said. “A lot of smart people believe this market will be around for a long time.”

With big real estate investment trusts investing hundreds of millions of dollars on acquiring single-family homes, fixing them up and reselling them, Carlton said, who said he doesn’t believe there will be another housing bubble like in the Great Recession.

And New Western, which he founded in 2008, can’t seem to grow fast enough. In the last year, New Western Acquisitions climbed the DBJ Middle Market list rankings from No. 6 to No. 2 — a major feat given the heated competition from other successful North Texas companies.

“That was the opportunity of a lifetime,” he told me. “I knew America would be on sale, so to speak, and there would be a lot of buyers and real estate investors looking to buy.”

Even with the economic recovery, Carlton said he’s not worried about New Western finding its supply of would-be deals.

“There’s always opportunities,” he said. “About 80 percent of what we used to purchase was foreclosures, but there’s always new opportunities with someone inheriting a property in disrepair that either works 60 to 70 hours a week or is in another state that may just want to sell it to a real estate investor.”

Many of those sellers find New Western Acquisitions — and cash buyers for properties in disrepair — easily online, which has also helped boost business, he added.

New Western has plenty of competition, but the firm’s 200 experienced professionals helping identify opportunities for real estate investors has led to the firm’s success, Carlton said

The North Texas company, which has six offices in the region, has plans to expand beyond to every major city in the United States from Phoenix to Seattle to Portland to Charlotte, North Carolina. Carlton also plans to fill up the rest of California, Florida and Texas — which were the first three states New Western initially launched.

“Our growth is revenue has just been organic in both bad and good markets,” Carlton said. “On the investment side, prices go up and people want to buy and as they go down, people are looking for opportunities to buy again.

“Smart savvy investors want to buy when the market is down with a long-term perspective,” he added. “This is a marathon, not a short race.”

In addition, Ridgemont Commercial Construction and Texas AirSystems LLC were named to the Dallas Business Journal’s Middle Market 50.

See the full list at the Dallas Business Journal – June 16, 2017

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