Navigating the Transition from Real Estate Broker to Successful Operator

Transitioning from a real estate broker to a successful operator requires strategic planning, market knowledge, and a deep understanding of the real estate industry.

Will and Evan Matheson, founders of Matheson Capital, successfully made this transition by leveraging their brokerage experience to build a thriving multi-family real estate operation.

This article explores the steps and strategies that facilitated their journey.

Starting Out and Early Lessons

Will and Evan began their real estate career at Marcus & Millichap, where they primarily focused on brokering retail properties on behalf of their clients.

One day, one of their clients was in need of a one million hard money loan, and Will and Evan took the initiative and raised the funds and placed the loan themselves. 

Through their experiences, they learned valuable lessons about managing projects and capital.

Key Lessons:

• The Importance of starting with small properties.
• Initial focus on equity raising.
• Avoid long-term commitments and over-allocating capital.

Transitioning from Broker to Operator

The Matheson brothers transitioned from brokers to operators by capitalizing on their market knowledge and leveraging opportunities to add value.

Their first foray into multi-family real estate began with a duplex in Los Angeles, quickly scaling to larger properties.

“Our first bit of entrepreneurialism was providing a hard money loan for a million dollars.”

Adding Value and Building a Portfolio

A critical strategy in their growth was a focus on value-add properties, which allowed them to rapidly increase the value of properties and deliver returns to investors. 

By focusing on markets they were familiar with, they offered significant insights and raised capital..

Their portfolio grew from a two-unit duplex to multi-family properties with over 100 units.

Building a Portfolio:

• Focusing on value-add opportunities to increase property values.
• Concentrating on familiar markets to offer insights to investors.
• Strategic scaling from small to large properties.

Market Focus and Investment Strategy

Investing in familiar markets played a crucial role in their success. 

By focusing on the Southeast and leveraging their local knowledge and networks, the Mathesons secured investor confidence and identified profitable opportunities.

Since 2018, they have completed 16 multifamily acquisitions, achieving a weighted average LP IRR of 40%.

They maintained a conservative financial strategy, focusing on assets with clear value-add potential.

Market Strategy:

• Importance of investing in familiar markets.
• Utilizing local knowledge and networks for successful investments.
• Challenges in finding true value-add assets.

Securing Investor Trust and Future Outlook

Building and maintaining investor trust is essential. The Mathesons prioritize transparency and consistent performance, ensuring they deliver on their promises and keep their investors informed.

Looking ahead, they plan to continue focusing on multi-family properties, particularly in growing markets like the Southeast, and remain optimistic about long-term opportunities.

Conclusion

Will and Evan Matheson's journey from real estate brokers to successful operators highlights the importance of strategic planning, leveraging market expertise, and building strong partnerships.

Aspiring real estate professionals can learn from their experience by focusing on familiar markets, gradually scaling their operations, and maintaining transparency with investors.

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