New real estate investors tend to be too risky when coming into the investing scene. But any successful multifamily investor advises against this, especially those that have built years of experience of closing large deals.

In this #TechandTacticsTuesday episode, Matheson Capital co-founder, Will Matheson, explains to us how to get started on the right track in real estate investing, and how he learned to add value to another operator. Discover his important piece of advice for those who are new to investing, and why this matters a lot.

Key Points From This Episode:  

• Why did he and his brother immediately jump into multifamily investing?
• How did he successfully partner with another firm?
• How did he reach out to these partners?
• Why is he focused on the Carolinas?
• Why did he start with heavy value-add projects?
• How did he use his experience as a broker to start his investing career?
• What are some bad investing habits that investors need to avoid?
• What does he mean by ‘fundamentals being in place?’
• How does he get prepared for a downturn?
• What is his best source for meeting new investors today?
• What are his best pieces of advice for passive investors?
• How does he give back to the community?

Tweetables: 

“I believe in this market, I believe in this property. I think I can get in touch with these guys. And we made it happen.”

“It's easiest to go into a market where you can get your investors comfortable, and people are most comfortable with what they know.”

“Our thesis or investment thesis is, ‘I'm not going to ask an investor to marry me for the next 10 years on a 10 year hold.’”

“We said, let us build our track record, let us earn your trust because there's always someone with more experience than you.”

“We didn't want to offer coupon clippers for the next decade, we wanted to say, let's get you in and out. Let's prove that we know what we're doing. And let's move on to the next one.”

“So being a broker definitely gave a lot of insight into property valuations.”

“When you're just starting out, I always tell people, ‘Do not commit to a long term timeframe, on a project. And when you're starting out, you're probably starting with smaller properties.’” 

“We started out focused on very small properties because of equity raising. It's easier to raise equity when you have less of it to raise.”

“You don't want to tie up a deal for too long with the debt. You don't want to over invest your own capital. You're not in this business to buy one property, you're in this business to buy 10-12, whatever that number may be.”

“You don't want to over allocate your resources. You have to understand that no one cares more about this project than you do.” 

Link Mentioned in Today’s Episode:

Matheson Capital

 Will Matheson on LinkedIn

About Will Matheson

Will Matheson is the co-founder of Matheson Capital, a private equity firm focused on value-add multifamily assets in the southeast region. Prior to this, he was into investment sales at  Marcus & Millichap, closing more than 50 sales transactions totaling over $140 million, and also served as President of Lowcountry Veterans Home.

He earned a BA in Business Administration with concentration in Finance, Strategy & Management Consulting from Emory University - Goizueta Business School, and a graduate degree in Real Estate Development from Columbia University.