The FORT Podcast: Moses Kagan & Rhett Bennett – Co-Founders of ReSeed Partners – Building the Y-Combinator for Real Estate Operators
Moses Kagan is co-founder and partner at Adaptive Realty, a Los Angeles-based real estate development and property management company with $200MM in AUM and more than 1,000 apartments under management. He is also a co-founder of Re-convene, a real estate private equity un-conference, and ReSeed, which provides mentorship and capital to early-career operators.
Rhett leads ReSeed’s strategic direction and daily operations. He most recently served as Co-Managing Partner at Minot Capital, LP, where he led real estate investing. Previously, Rhett was President and Director of Research at Stillwater, a long-short hedge fund, and Chief Investment Officer at Arlington Family Offices. Rhett received a Bachelor of Arts from Brown University with a double major in Business Economics and History.
On this episode, Chris, Moses and Rhett discuss:
➡️ How ReSeed works
➡️ What ReSeed is looking for in Partners
➡️ How ReSeed empowers Operators to build their own companies
➡️ What success looks like for Operators working with ReSeed
➡️ Thoughts on the state of the Real Estate Market
(00:03:31) – Rhett’s career
(00:04:26) – Moses’ evolution in thinking over the past 5 year
(00:06:40) – Launching ReSeed Partners
(00:19:05) – Defining Subinstitutional
(00:20:58) – Cohort #1
(00:34:18) – The ReSeed Partner Track
(00:39:35) – Is this a renovation strategy or is there any ground-up involved?
(00:40:22) – What does a partnership with y’all look like in the first year?
(00:43:58) – What markets are you open to?
(0048:28) – How would you determine a successful year for an operator?
(00:53:44) – How does the partnership work? What does someone get from y’all and what do they give up?
(01:00:20) – Do partners have the opportunity to exit?
(01:01:45) – Holding assets for the long term
(01:04:40) – Autonomy for the operator
(01:07:18) – Is there anything that is off-limits?
(01:08:41) – Moses’ playbook
(01:11:16) – How are you capitalizing this?
(01:17:15) – How many people can be in one market before it’s saturated?
(01:17:57) – Other members of ReSeed
(01:19:04) – Guaranteeing loans
(01:22:11) – What are the couple of things people spend the majority of their time on?
(01:25:39) – Is there a minimum size deal?
(01:27:06) – What can this business look like 10 years from now?
(01:29:06) – Thoughts on the current market
In an illuminating episode of the Chris Powers Show, listeners had the privilege of delving deep into the intricate world of real estate and investment with two industry stalwarts, Moses Kagan and Rhett Bennett. Moses Kagan, with his extensive network and real estate expertise, has carved a niche for himself in the sector. Rhett Bennett, on the other hand, brings to the table two decades of rich experience in diverse investing roles, coupled with his acumen in real estate mandates.
The discourse commenced with a candid exploration of the real estate landscape. Both Kagan and Bennett highlighted the multifaceted nature of this industry, emphasizing its complexities, opportunities, and inherent challenges. An emphasis was laid on the value of networking in the real estate domain, with Kagan attributing numerous opportunities to his vast network.
Tax implications, a topic often sidelined, took center stage during the conversation. The duo shed light on the nuances of tax considerations, especially in relation to real estate investments. The IRR-driven models prevalent in the real estate sector were discussed in-depth. Kagan and Bennett articulated how these models, while essential, can sometimes encourage behaviors that might not be tax-efficient for certain investors, underscoring the need for a more holistic approach.
Equity emerged as a central theme in the dialogue. The importance of equity, particularly in the context of real estate and its interplay with other investments, was explored. The guests provided invaluable insights, drawing from their vast experiences, on the intricacies of equity and its pivotal role in investment strategies.
However, it wasn’t just technicalities that were the highlight of this episode. The discussion also meandered into the realm of personal experiences. Both guests shared their journeys, from their initial days in the industry to the seasoned professionals they are today. These personal anecdotes not only added a personal touch to the episode but also offered listeners a unique perspective on the real-world challenges and triumphs in the real estate sector.
In conclusion, this episode stands as a testament to the rich knowledge and expertise Moses Kagan and Rhett Bennett bring to the table. For anyone keen on understanding the real estate industry, investment strategies, or simply seeking insights from seasoned professionals, this episode is a veritable treasure trove of information. It not only offers technical knowledge but also provides a unique perspective on the evolving landscape of real estate and investment, making it a must-listen for both novices and veterans in the field.
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