Masters of Scale: Ryan Williams founded Cadre, a tech-driven real estate investment platform, to democratize access to real estate investments.
Masters of Scale - Building a dynamic network of mentors, with Cadre's Ryan Williams | Masters of Scale
Ryan Williams, inspired by the 2008 financial crisis, founded Cadre in 2014 to democratize access to real estate investments. He saw the potential to help communities affected by foreclosures and provide investment opportunities to a broader audience. Cadre allows investors to buy fractional ownership in real estate, similar to buying stocks, making it accessible to those who can't afford large investments. Williams leveraged his experience at Blackstone and Goldman Sachs to create a platform that offers transparency and liquidity in real estate investments. Despite challenges, including media attention due to early investor Jared Kushner, Cadre secured significant partnerships with institutions like Goldman Sachs. Williams eventually sold Cadre to YieldStreet to diversify product offerings and distribution, aligning with his mission to broaden access to alternative investments. He plans to continue innovating at the intersection of financial services and technology.
Key Points:
- Cadre democratizes real estate investment by allowing fractional ownership, similar to stock investments.
- Ryan Williams was inspired by the 2008 financial crisis to help communities and provide broader investment access.
- Cadre secured a $250 million commitment from Goldman Sachs, highlighting its credibility and success.
- Williams sold Cadre to YieldStreet to diversify offerings and maintain mission alignment.
- Ryan plans to continue innovating in financial services and technology, focusing on mission-driven projects.
Details:
1. 🏡 From Crisis to Opportunity: Early Real Estate Ventures
- Ryan Williams identified an opportunity in the 2008 housing crash to invest in foreclosed homes.
- Raised capital from classmates to purchase homes, focusing on communities affected by subprime lending.
- Achieved a 300% return on investment by selling a home back to a previous owner.
- The venture provided affordable housing options and revitalized communities.
- This experience fueled Ryan's passion for real estate and investment.
2. 🚀 Cadre's Genesis: Democratizing Real Estate Investment
2.1. Entrepreneurial Journey of Ryan
2.2. Cadre's Founding and Impact
3. 🎓 Harvard Foundations: Crafting a Real Estate Vision
3.1. Introduction to Cadre
3.2. Inspiration and Educational Background
4. 🔍 Real Estate Insights: Learning, Experimenting, and Growing
4.1. Experiential Learning in Real Estate
4.2. Strategic Growth and Community Impact
5. 💡 Bold Move: Transitioning from Blackstone to Entrepreneurship
- The speaker decided to leave Blackstone after realizing the scale of operations was much larger than personal endeavors, with Blackstone buying thousands of homes weekly, compared to a few quarterly by the speaker.
- Despite financial success at Blackstone, the speaker prioritized having a positive community impact over maximizing financial gains.
- The decision to pursue entrepreneurship was driven by the desire to build a business with a mission of promoting self-determination among the underserved, rather than just seeking financial security.
- The speaker emphasized the importance of not regretting not pursuing personal business ideas, and the belief that someone else without the same community-oriented goals might fill the gap.
- The transition involved assessing the community needs and aligning the business mission to address those needs effectively.
- The speaker faced challenges in shifting from a corporate environment to entrepreneurship, which required a mindset change and adaptation to a new pace and scale of operations.
6. 🛠 Building Cadre: From Vision to Product
6.1. Initial Steps and MVP Development
6.2. Partnerships and Proof of Concept
6.3. Challenges and Innovations
7. 📊 Scaling Cadre: Strategic Partnerships and Growth
- Cadre employed a counterintuitive strategy by initially targeting the top of the customer pyramid, focusing on sophisticated, discerning partners like Goldman Sachs to build trust and credibility.
- The approach involved securing partnerships with large institutions such as Goldman Sachs, JP Morgan, and the Ford Foundation, which acted as social proof for smaller investors.
- Cadre successfully secured a $250 million commitment from Goldman Sachs, which included 10,000 sub-advisors and clients who owned fractional stakes in real estate portfolios.
- The strategy required longer sales cycles but aimed at establishing a trusted, credible infrastructure that would pay dividends over time.
- Cadre's model allowed clients to access real estate at smaller, fractional sizes with liquidity, a unique proposition that appealed to institutional investors.
- The initial focus on high-impact enterprise clients enabled Cadre to subsequently reach independent advisors and individuals more easily.
- Building a concentrated base of significant partners differentiated Cadre in a crowded market and contributed to revenue growth through larger forward contracts.
8. 🌐 Navigating Media and Political Challenges
- During the first Trump term, the company's media attention surged due to Jared Kushner's investment and White House role, leading to conflict of interest concerns.
- The incubation period (2013-2014) was influenced by a different global context, shaping partnerships and operations.
- The founder maintained a relationship with Jared Kushner and Josh based on integrity and transparency despite disagreements.
- Strategic decisions included Jared stepping back from the business when assuming a DC role.
- The company benefited from diverse political support, including from the Soros family and Mark Cuban.
- The founder initially underestimated media complexities, later recognizing the importance of proactive media management and addressing narratives.
9. 💼 Leadership and Mentorship: Overcoming Adversity
- The importance of discerning who to listen to for specific advice was highlighted by mentor Vinod Khosla; this is a skill that develops over time through trial and error.
- Building a cadre of advisors tailored for specific challenges is crucial. Advisors like Vinod were instrumental in team management during media scrutiny, while others like Michael Ovitz and Josh Kushner offered support in scaling the business and maintaining focus.
- Effective leadership involves proactive communication with stakeholders. The approach included transparency and accessibility, such as dedicating six hours for one-on-one discussions with team members to address concerns or excitement.
- A symbiotic relationship is essential when building a network of advisors. It involves not just seeking help but also providing value, such as sharing industry insights and trends.
- Consistency and accountability in interactions with advisors were emphasized. Regular communication, such as weekly updates, reinforces trust and collaboration.
- Over time, delivering on commitments and maintaining strong communication can lead to a broadened network, facilitated through referrals and connections.
10. 🏁 Successful Exit: The Sale of Cadre
10.1. Decision-Making Process
10.2. Execution of the Sale and Strategic Partnership
11. 🔮 Looking Ahead: Future Entrepreneurial Ventures
- The entrepreneur's next venture will focus strategically on fintech, merging financial services with technology to capitalize on emerging market trends.
- Due diligence is emphasized through active engagement with clients, customers, and investors, ensuring a robust foundational strategy.
- Lessons from previous ventures will be leveraged to make informed decisions, ensuring iterative improvement and innovation in new business endeavors.
- A strong emphasis is placed on forming partnerships with individuals who share similar values and incentives, highlighting a strategy of value-driven collaboration.
- Preference for the 'zero to one' phase indicates a focus on creating innovative startup environments from scratch, reflecting an entrepreneurial spirit and expertise.
- Ryan's previous success and strong network serve as a solid foundation for future ventures, providing a strategic advantage in launching new initiatives.
