Laura Krannich

Spent the day yesterday touring investors and potential investors through one of ReSeed's San Francisco deals. Take-aways: 1. I need to get someone else to take pictures 2. We think the deal will stabilize at around an 8.5% unlevered yield on cost (was a pro forma ~6.6% going in; uplift from there a combination of good execution and luck) To learn more about ReSeed, which acquires assets selected, structured, capitalized and operated to generate long-term, tax-advantaged yield, go here: reseedpartners.com

Thanks to @jayparsons for hosting @reseedrhett and me on his pod to talk about ReSeed and what we're seeing in sub-institutional multifamily across the country. (Pls ignore my ridiculous hair in the thumbnail below. Someday I'm going to have a good headshot taken.) youtube.com/watch?v=UwNBiq…

Tomorrow’s episode is with two great friends, Moses Kagan & Rhett Bennett, Co-founders of ReSeed Partners. In this clip, we discuss the current state of the market, particularly as it relates to the sub-institutional multifamily assets they are targeting. They paint a clear picture of how the market has evolved since they launched their company in early 2023 and how they went from virtually zero new deals to a more robust capital deployment period in 2025.

Are you a mid-career real estate operator, acquisitions person, asset manager, etc. considering going out on your own? Strongly recommend you check out ReSeed. We provide start-up capital and mentorship to get your platform off the ground, then patient GP and LP for the deals you find. We have invested in 13 operators and put out $100MM so far, with another $100MM in dry powder (and more to come). We are currently soliciting applications for our 3rd cohort of operators. If you are interested in learning more, please click this link: reseedpartners.com/insights/resee…

@moseskagan Looking forward to getting to know the operators!

*Important update re ReSeed*; hoping you will help spread the word: ReSeed, which partners & I started several years ago to seed emerging real estate operators & provide them w long-term capital for deals, is soliciting applications for our 3rd cohort of operators. Over the past ~2 yrs, we have invested in 13 operating partners & deployed >$100MM of equity. We have another ~$100MM of dry powder, plus ambitions to raise a *lot* more. If you (or, you & a partner) have: - The desire to start or grow your multifamily or industrial GP business - 5-15 yrs in RE investing, debt brokerage, asset or property management - A track record of executing multiple transactions independently or in a primary role - Extensive underwriting experience and strong proficiency at Excel - A fiduciary mindset, & - Ability to source $5-20MM multifamily or industrial deals in 1-3 markets (ideally, where you live &/or to which you can easily drive) …you should register your interest via the link below & we'll send you the application. Applications are due mid-January, but we will be reviewing on a rolling basis between now and then. So, sooner is better than later. Happy to answer questions. Would appreciate likes / comments / re-posts to help spread the word. Here’s the link: reseedpartners.com/insights/resee…

When you spin the roulette wheel in Vegas, you know that your odds of landing on red are just under 50%. It's very easy to understand how much risk you're taking, so you bet accordingly. The most difficult thing about real estate investing (and the most important concept to understand): It takes deep expertise to be able to identify how much risk you're taking on any given purchase. It's so difficult, in fact, that many investors want to assess risk, but lack the experience, training, or access to see the full picture. A simple example: Anybody can understand what it means to buy at a 6% cap rate. "I'm paying $3M for this Taco Bell building, they pay a base rent of $180k a year, so my annual return will be 6%." Yes, buyers looks at some basic risk factors: The condition of the building, how long the tenant's been there, who covers which expenses, which entity is guaranteeing the lease, when the lease expires, etc. They are just glossing over their downside risk and checking some boxes. But their focus is weighted heavily on that 6% cap number. A buyer with very deep expertise (just a very small percentage of the investor pool) has the experience to dive into the downside risk and assess it to a degree that enables them to make a decision. Some factors that buyer looks at: -How much of the value is derived from the fact there is a drive-thru here, and what does the city code say about my ability to continue to operate the site as a drive-thru in the event the tenant leaves one day? -How much rent would I get here if the drive-thru went away? -This location has no requirement to report sales, so am I comfortable proceeding without knowing how well they do here? -Can I tap into my network to find out what the sales are? -Who is backing this franchisee? Is it private equity? If so, how much debt have they taken on? -The rent is $180,000 per year. How much money are other tenants in similar buildings in the area paying? -Can I replace the $180k if they leave, or is the area rent actually $120k? -I know the lease is up in 12 years, but I have to buy based on the assumption they will leave well before then. If they do, what will it cost to re-lease? -Is the drive-thru configured in a way that would work for other tenants, or is the trend in the market going towards longer stacking or double drive-thrus? -Yes, it's a 6% cap, and that is market, but what about price per foot? I am paying $700 a foot. Are other similar buildings selling for $500 a foot, or $900 a foot? -Are there a lot of vacant parcels in the area, therefore allowing a competitor to open up across the street? -I am paying $3M. How much would it cost someone to buy a lot on the same block and build the same building? Is it $2M or $3.5M? -How difficult is it to access this property? Is there a left-turn lane directly in front, or does someone driving in the opposite direction have to drive two blocks and make a U-turn? These are just a few items that randomly come to mind, and there are countless more. One's ability to assess a potential investment is limited by their ability to understand the downside in the deal. The more you focus on one asset class, the more you allow your knowledge to compound within one niche, the more you can handicap the downside, and the better investor you can be. The great differentiator in commercial real estate is the ability to assess downside risk, which enables you to know if you're making an asymmetric bet. Otherwise, you might as well be placing chips at the roulette table. At least there, you know your odds.

We're proud to announce several key promotions and a new addition to the ReSeed team as we continue building the premier sub-institutional real estate investment platform. - Doug McCrary has been named President - Laura Krannich has been promoted to Chief Platform Officer - Lee Thompson joins as Chief Financial Officer - David Bergeron transitions to Senior Advisor Link to press release below.

@antonia_mdprjct Love this

A few years ago, I attended a tennis workshop for doubles with a well-known pro. Now, I'm not particularly fond of playing doubles, but I thought it would be cool experience. Especially because there was a segment on mental toughness, and I don't think there are too many people who consistently perform in front huge audiences at the top of their skill level like pro athletes do. During that session, I asked the pro about how she handled situations when her partner on court wasn't performing well.

@mwmoedinger Love this

A client asked for: - dining space for 8 - stand up desk and hidden printer - guest room - privacy for guest room - storage for chairs and table leaves - hidden HVAC - a completely clear floor area for dance parties! ...all in the same space. Here's how we did it:🧵

Last week, through one of our local operating partners, ReSeed closed on a very well-located affordable multifamily deal in Northern Virginia. This is our 5th acquisition in '24 (all closed all-cash). If you are interested in following along as we build a diversified portfolio of multifamily assets selected, capitalized & operated for long-term hold, join the mailing list at: reseedpartners dot com / investors

@ReSeedPartners It was an awesome week getting everyone together in person. Welcome Cohort Two! Exciting things ahead

Last week, the ReSeed team gathered in Boulder, CO, for our second Launch Week to welcome our new cohort of real estate operators. Cohort Two includes 8 operators across 5 ReSeed partnerships. This new wave of talent brings expanded market exposure and differentiated strategies to our platform. Importantly, we are growing our network at a time when we are seeing an emergence of more interesting opportunities across our markets, and our next acquisition is scheduled to close in November. Stay tuned for more news! If you’re looking to invest with us, make sure to join our investor list (link in the comments) for first access to upcoming deals.

Over the past week, we put the new ReSeed cohort of emerging multifamily operators in rooms with allocators ~controlling >$20b of long term oriented capital. I would have crawled across broken glass for that opportunity 10 yrs ago. If you’re interested in partnering with ReSeed, either as an operator or as an investor, pls check out ReSeed Partners dot com.

Thanks @pslohmann for the thoughtful article.

Excited to share I was recently given the opportunity to interview a ReSeed member! @moseskagan and his team there are doing some really interesting things, and I got into all the details with this member of their first cohort (including a deal breakdown). Full article will go live on my blog and in the newsletter soon. P.S. They're currently accepting applications for the second cohort, and are especially interested in working with property managers...

When we were getting started in ‘08-‘12, legacy operators were conspicuously absent in the buyer pool. They were mostly navigating their legacy portfolios through the aftermath of the GFC, leaving the field to new entrants like us. If you’ve been thinking of going into biz for yourself, the next few years will be a great time to start. (&, if you have a lot of experience in multifamily, strongly recommend taking a close look at applying for the new ReSeed cohort: reseedpartners.com/insights/fall-…)

The @ReSeedPartners Fall 2024 Cohort is open for applications from budding real estate entrepreneurs. Reseed is like YCombinator for real estate. They provide operating partners the resources, capital, and community to become entrepreneurs. @reseedrhett and @moseskagan are fantastic partners to have in your corner. Consider applying if you are an ambitious, mid-career multifamily operating partner looking to launch your own businesses: reseedpartners.com/insights/fall-…

@moseskagan Been an awesome journey. Looking forward to growing the team w this new cohort.

Last year, some co-founders & I launched ReSeed, a sort of "Y combinator for real estate operators" (not affiliated w YC!). Writing to update you on progress & also to try to convince (some of) you to apply for Cohort Two. First, the update. In the past ~year, we: - Launched Cohort One w eight operating partner businesses (selected from among >600 applications) - Raised ~$55MM in discretionary capital & shook hands on >$100MM in deal-by-deal capital from a few large investors (Side note: Has been incredible to work w co-founders who have such broad & deep networks of their own) - Slow '23 on the acquisitions front, due to pricing not having adjusted yet - Productive '24: Closed on three transactions (Jan., May, June) all cash, with another expected to close in July Our goal for the rest of '24 & into '25: - Continue to support Cohort One as they execute the deals they've bought & hunt more, in what is becoming an interesting buying environment in some markets (not LA!), & - Recruit ~four mid-career people interested in building large, independent, long-term-focused multi-family investing businesses to join Cohort Two. If that sounds like you & you're interested in applying, pls click the link below. (Note: As part of the process for selecting Cohort Two, we are reviewing last year's applications again. If you previously applied, no need to apply again, unless something dramatic has changed on your end.) reseedpartners.com/insights/fall-…