POWERS #278 - Moses Kagan & Rhett Bennett - Co-Founders of ReSeed Partners - Building the Y-Combinator for Real Estate Operators
Demand Was Immediate And Broad
- Launch interest exploded: 1,500 signups in 24 hours showed strong demand for operator-backed accelerators.
- The response validates a large talent pool of potential operators across backgrounds.
Hire Candidates Who Did Deals While Employed
- Prioritize participants who already took transactions or built deals while employed.
- Treat those prior deals as proof of commitment and the strongest signal in early cohorts.
Understand The Economics Up Front
- Expect ReSeed to fund operating salaries and co-GP equity in exchange for a 10% revenue royalty from the GP.
- They also take ROFR on LP capital while keeping LP asset management fees as their primary business model.
https://www.thefortpod.com/survey
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
Chapters
(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
Additional Resources
➡️ Learn more about BetterPitch
➡️ Fort Capital: www.FortCapitalLP.com
➡️ Follow Fort Capital on LinkedIn: www.linkedin.com/company/fort-capital/
➡️ Follow Chris on Twitter: www.twitter.com/FortWorthChris
➡️ Follow Chris on LinkedIn: www.linkedin.com/in/chrispowersjr/
➡️ Sign Up for our Newsletter: https://newsletter.thefortpod.com/
➡️ Subscribe to The FORT on YouTube
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