#35 Moses Kagan: Building Generational Wealth with Generational Assets - "Indefinite Holds" in Real Estate
1Description
Moses Kagan has a unique take on real estate development and investing – and he’s influenced my thinking substantially over the past couple of years.
He is a highly successful syndicator, investor and developer with over $200 million in assets under management. He runs Adaptive Realty, having renovated over 100 multi-family buildings in Los Angeles, managing them in-house while specializing in the "indefinite hold” strategy for long-term wealth building.
He is the Co-Founder of ReSeed, a platform offering long-term GP and LP capital, along with mentorship for emerging real estate operators nationwide. He also hosts Reconvene, a highly regarded annual “unconference” for real estate operators and passive investors to connect and share knowledge. I attended last year, and it was awesome!
And lastly, he is a Twitter personality and avid blogger, sharing valuable insights on real estate and business. I highly recommend you follow him.
This is an excellent conversation about practical investment and real estate development philosophy, and I hope this conversation has as big of an impact on you as meeting Moses has on me!
TAKEAWAYS
Holding real estate indefinitely often leads to better investment outcomes than IRR-driven flipping.
Traditional real estate models incentivize risky short-term decisions, while sustainable strategies benefit both investors and communities.
Investors should focus on post-tax returns rather than pre-tax IRR, as tax considerations play a crucial role in long-term profitability.
Wealthy families and patient capital partners are more aligned with indefinite hold strategies than institutional investors.
Unlevered yield on cost and all-in price per square foot are key financial indicators for long-term real estate success.
Building direct relationships and trust at scale is essential for securing capital, especially for indefinite hold investments.
CHAPTERS
00:00 Introduction to Real Estate Development Philosophy
06:06 Understanding IRR and Its Implications
11:55 The Importance of Long-Term Thinking in Real Estate
17:59 Finding the Right Investors for Long-Term Strategies
25:50 Investing with Wealthy Families and Professional Money Managers
40:20 Understanding Capitalization and Investor Liquidity
46:11 Building Trust and Relationships in Real Estate Investment
55:41 Building Trust at Scale in Real Estate
58:01 The Democratization of Capital Raising
01:04:29 New Urbanism and Walkable Neighborhoods
01:06:00 Challenges of Ground-Up Development
01:09:03 Zoning and Building Code Challenges
01:11:57 The Impact of Bureaucracy on Development
01:14:07 Introducing ReSeed: Supporting Emerging Operators
01:17:08 The Importance of Community in Real Estate
CONNECT WITH MOSES
X:https://x.com/moseskagan?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
LinkedIn: https://www.linkedin.com/in/moses-kagan-2638ab2/
Adaptive Realty: https://www.adaptiverealty.com/
ReSeed: https://reseedpartners.com/
Moses Newsletter: https://kagansblog.com/blog/
MENTIONED RESOURCES
The Fort Podcast Interview on ReSeed: https://www.thefortpod.com/videos/moses-kagan-rhett-bennett-co-founders-of-reseed-partners-the-y-combinator-for-re-operators/
CONNECT WITH AUSTIN TUNNELL
Newsletter:https://playbook.buildingculture.com/
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https://www.linkedin.com/in/austin-tunnell-2a41894a/
https://twitter.com/AustinTunnell
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SPONSORS
Thank you so much to the sponsors of The Building Culture Podcast!
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