In the transformative realm of real estate investing, few narratives are as compelling as Ed Mathews’. From a Silicon Valley startup connoisseur to a distinguished real estate investor, Ed’s journey offers a wealth of insights. In this episode of the Raising Private Money podcast, Ed Mathews shares his experiences and strategies for succeeding in multifamily property investing, along with key takeaways for both active real estate enthusiasts and passive investors.
Building a Foundation: Early Influences and Initial Hesitation
Ed Mathews’ relocation from Boston to Connecticut in 2008 was a pivotal event, driven by familial priorities. While the move brought him closer to his extended family, it also set the stage for his real estate venture. However, despite favorable market conditions from 2008 to 2011, Ed found himself paralyzed by fear and what-ifs. It wasn’t until he met Amy Rio, a determined real estate broker, that he took the plunge. Amy’s insistence led to the purchase of a 4-unit property for $99,000—a decision that Ed marks as a turning point in his real estate career.
Overcoming Fear and Embracing Courage
Ed candidly discusses how the fear of financial commitment often holds people back from potential opportunities. He references Tony Robbins’ philosophy, highlighting how decisions are often driven by either the pursuit of pleasure or the avoidance of pain. For Ed, the need to escape the conventional 40-year career path provided the necessary push. His mantra, drawn from a coach named Crystal and a friend, Chris Moore, centers on getting comfortable with discomfort—a critical element for growth and success in any endeavor.
Building Trust with Lenders and Investors
Trust forms the backbone of Ed Mathews’ strategy for raising private money, an area where he has excelled, having raised $5 million for multifamily properties. Ed stresses understanding the lenders’ needs and goals, focusing on offering opportunities that align with their investment objectives. By fostering personal relationships and maintaining transparency, he has turned potential collaborations into lasting partnerships, successfully raising a million dollars in private money along the way.
Transitioning from Tech to Full-Time Real Estate
Before becoming a full-time real estate investor in 2018, Ed had a rich career in Silicon Valley, amassing over 24 years of experience. The realization that his real estate income outpaced his tech salary catalyzed his full transition. Founding Clark Street Capital marked a new chapter, enabling him to focus on helping business owners and executives transition away from traditional careers through lucrative real estate investments. His background in startups and crowdfunding also positioned him to leverage unique strategies for raising capital.
Strategic Fit and Abundant Mindset
One of Ed’s guiding principles is prioritizing quality investments over sheer volume. He ensures that each deal fits his clients’ models, thus fostering trust and long-term satisfaction. Ed’s abundant mindset—a belief that ample opportunities exist for everyone—differentiates him in a competitive field. He is open to sharing insights and making connections, reflecting a community-driven approach that benefits all parties involved.
Innovative Funding Models and New Projects
Clark Street Capital’s latest venture, a debt fund, epitomizes Ed’s innovative approach. By offering loans at a 12% interest rate with upfront points, he creates a reliable cash flow stream while maintaining trust with flippers, rehabbers, and small multifamily investors. This strategy is reminiscent of selling tools during a gold rush—providing essential resources to those actively engaged in the field.
Additionally, Clark Street Capital is spearheading a 100-unit affordable housing project in Central Connecticut. Amid a significant housing shortage, this development represents a critical response to the state’s need for 30,000 affordable units by 2030. Currently in the entitlement stage, the project is set to move into fundraising soon, offering substantial investment opportunities.
Staying Connected and Engaged
For anyone keen on exploring investment possibilities with Ed Mathews, an array of contact options is available. Ed encourages reaching out via email at ed@clarkst.com or visiting Clark Street Capital’s website. Beyond traditional channels, he maintains a robust presence on social media platforms such as Facebook, Instagram, LinkedIn, TikTok, and YouTube, fostering accessibility and engagement.
Closing Thoughts from Jay Conner
Jay Conner, renowned as the Private Money Authority, wraps up the episode with a call to action. He invites listeners to follow the podcast on Spotify and iTunes for continuous learning. Additionally, Jay offers a free guide at www.JayConner.com/MoneyGuide, providing valuable insights into private money and real estate investing. By subscribing to their YouTube channel, listeners can further engage with the rich content and gain knowledge from industry experts.
In conclusion, Ed Mathews’ journey from Silicon Valley to real estate success is a testament to the power of overcoming fear, building trust, and embracing an abundant mindset. His story serves as an inspiration for both active investors and those considering passive investment opportunities, underscoring the transformative potential of strategic real estate endeavors.
10 Discussion Questions from this Episode:
- Ed’s Relocation Decision:
- How did Ed Mathews’ decision to move from Boston back to Connecticut in 2008 shape his approach to real estate investing?
- Initial Hesitation and Breakthrough:
- What factors contributed to Ed’s initial hesitation to invest in real estate, and how did his encounter with Amy Rio change his perspective?
- Tony Robbins’ Influence:
- In what ways does Tony Robbins’ philosophy on motivation (driven by pleasure or the need to alleviate pain) resonate with Ed’s approach to real estate investing?
- Comfort with Discomfort:
- How does Ed Mathews’ willingness to embrace discomfort contribute to his growth as a real estate investor, and what lessons can other investors take from this mindset?
- Building Trust with Private Lenders:
- What specific strategies does Ed use to build trust with private lenders, and how crucial is this trust in raising significant amounts of money for investments?
- Transition from Silicon Valley to Real Estate:
- What were some of the main challenges and opportunities Ed faced when transitioning from a tech career in Silicon Valley to full-time real estate investing?
- Overcoming Fear in Investment Decisions:
- How does Ed Mathews view fear in the context of large investments, and what advice does he offer for those struggling with similar fears?
- 506(b) Offerings and Investor Inclusivity:
- How does Ed’s use of 506(b) offerings allow him to include non-accredited investors in his projects, and what are the potential benefits and risks of this approach?
- Affordable Housing Project in Connecticut:
- What are the key goals and challenges of the 100-unit affordable housing project that Ed is developing in Central Connecticut, and how does it aim to address the affordable housing shortage in the area?
- Clark Street Capital’s Strategy:
- What unique strategies does Clark Street Capital employ to help investors transition away from traditional jobs, and how does the debt fund complement these strategies?
Fun facts that were revealed in the episode:
- Ed Mathews’ first successful investment was a 4-unit property bought for just $99,000, which he credits as a pivotal decision in his real estate career.
- Ed transitioned from a 24-year career in Silicon Valley startups to full-time real estate investing, driven by the influence of “Rich Dad, Poor Dad” and a desire for financial independence.
- Clark Street Capital, founded by Ed, recently launched a debt fund to support other investors’ projects, generating reliable cash flow and fostering trusted relationships in the investment community.
Timestamps:
00:01 Passion for real estate led to entrepreneurship.
05:25 Entrepreneur resigns to focus on real estate.
07:20 Fear signifies understanding the gravity of responsibility.
12:45 Pain and pleasure drive action and opportunity.
15:42 “Build relationships through service and understanding needs.”
17:45 Connecting others to beneficial projects and guidance.
23:16 Helping executives invest in real estate passively.
24:57 Launched debt fund to finance investors’ projects.
28:04 Contact: ed@clarkst.com or visit https://www.clarkst.com
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