A client called me recently, frustrated.

They’d just read another headline blaming BlackRock for buying up homes and making housing unaffordable. Their question: “Is this why my kids can’t buy a house?”

It’s a fair concern. Stories about Wall Street gobbling up real estate make for great headlines. But when I pressed my guest, Ian Colville, on this during our latest episode of Money in the Bank with Franck, he didn’t mince words:

“The real culprit isn’t BlackRock. It’s underbuilding. We need 1.5 million new homes a year just to stand still. We haven’t hit that number since 2008.”

The Real Story Behind Housing Prices

Yes, institutional investors like BlackRock and Vanguard own homes. But their footprint is small — single digits of the market, often closer to 2%.

What matters more is the math Ian walked us through:

* 1.2 million new households form every year in the U.S.

* ~300,000 homes are torn down annually

* That means we need 1.5 million new units a year just to keep pace.

We’re nowhere close. And until we fix that, no single buyer — corporate or otherwise — explains the shortage.

Risk, Return, and Reality in Real Estate

Ian’s career started with $30,000 houses. Over time, he built that into a $40M portfolio and eventually launched Carpathian Capital Management, now overseeing more than $400M in residential assets.

But what struck me wasn’t his success — it was his view on failure.

“Our worst-performing deal is on track for a 10% IRR. Compare that to a tech startup, where you might get nothing back.”

That contrast highlights why real estate and private credit — the areas Ian focuses on — occupy a different space than high-risk “alternative investments.” They’re tangible, less volatile, and still capable of delivering double-digit returns.

Due Diligence Isn’t Optional

The most valuable part of this conversation? Ian’s framework for due diligence across private deals:

* Track record & reputation: Who’s running the show?

* Skin in the game: Are they personally liable or invested?

* Organizational depth: Can the team survive setbacks?

* Aligned incentives: How do sponsors get paid?

* Exit strategy: Is there a realistic timeline and pathway?

And one more critical safeguard: third-party administrators.Because after Bernie Madoff, if your manager isn’t using independent controls, you don’t have transparency — or trust.

Why This Matters

Clients want clarity. Advisors want confidence. Investors want results.

This episode reminds us that:

* Housing shortages are structural, not conspiratorial.

* Real estate and private credit can be powerful tools — but only with discipline.

* Due diligence is the difference between sleeping at night and chasing returns blindly.

Listen to the full episode: The BlackRock Myth, Housing Shortages, and Due Diligence in Real Estate Investing (YouTube)

Learn more:

* Carpathian Capital Management

* Development Fund III – tackling shortages in high-demand markets

* Free Due Diligence Webinar – monthly with Ian (1.5 hrs CE credit for CFPs)

What do you think?Have you heard clients or colleagues cite the “BlackRock housing crisis”? Do you believe Wall Street is the villain — or do you agree underbuilding is the real problem?

Let’s talk in the comments.

#BlackRock #HousingCrisis #DueDiligence #PrivateCredit #RealEstateInvesting #MoneyInTheBankWithFranck

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