Investor FAQs
What differentiates ReSeed’s Strategy?
ReSeed’s platform is a purpose-built solution for long-term, taxable investors, unlocking the unique benefits of owning real estate for decades:
We focus exclusively on sub-institutional real estate assets. Asset-level returns in this market are much more attractive than those of large, heavily-brokered transactions.
We are building a large platform of operators dedicated to sourcing transactions in their local markets. Access to this proprietary deal flow enables our investors to build diversified portfolios of high quality, sub-institutional real estate at scale.
Our Partner Track program trains operators the ReSeed way, ensuring they are aligned on return objectives, underwriting standards, capex strategy, and long-term asset management.
We believe it is inappropriate for long-term investors to prioritize IRR above all other return metrics. Rather than optimizing for IRR, we focus on generating a high, stabilized, unlevered yield on cost and multiple on invested capital.
We are committed to long duration holds. Our underwriting is not reliant on exit timing or cap rates. Our investment strategy minimizes transaction costs and maximizes the tax benefits of real estate.
Why do you focus on the sub-institutional market?
Sub-institutional real estate is highly fragmented with less sophisticated players (inexperienced brokers, mom-and-pop owners). The nature of the market presents opportunities to capture additional upside from asset mis-pricings, poorly conducted sales processes, and operating inefficiencies resulting in significant loss-to-lease.
We are also drawn to sub-institutional assets because we are more likely to find or develop these assets in urban, infill locations. Infill properties are highly attractive due to strong supply barriers and long-term demand fundamentals. Smaller properties make great infill assets and are efficient to operate with attractive margins.
Lastly, investing in a portfolio of smaller assets opens the potential for aggregation strategies, providing additional value for our investors.
What is ReSeed’s advantage in the sub-institutional market?
The ReSeed model creates an inherent advantage in the sub-institutional space by combining the scale of a large institution with the hyper-local knowledge of an operating partner. We select operating partners based on their differentiated understanding of their local markets. Because we have a right of first refusal with each operating partner, we get to see every deal, rather than the sporadic offerings shown to typical institutional investors. This allows us to select investments based on the quality of the asset and return opportunity, not just the quality of the operating partner.
What is ReSeed’s investment decision making process?
ReSeed independently underwrites every asset. We travel to tour each asset, assess comparable properties, and sign off on every value-add plan. Each investment must meet our underwriting hurdles, asset quality standards, and acceptable risk profiles. We then work with operating partners to design the optimal capital structure.
How do you vet potential operating partners?
ReSeed vets operating partners through an intensive, multi-step process.
Each operating partner must first submit an online application. ReSeed reviews each application and invites the most promising candidates to a first-round virtual interview. From here, we engage in several conversations with the operating partner to better understand their experience, capabilities, and ambition. We assess their ability to articulate a differentiated strategy and test their understanding of deal economics and strategy execution through a case study.
ReSeed built a comprehensive scorecard to assess each skill and trait we believe critical to success as a ReSeed operating partner. We leverage the scorecard to ensure candidate decisions are based on a complete set of data points and observations. Candidates that emerge on top are invited to the final stage – the market visit.
At this point, we tour each candidate’s market with them, walking assets and probing the depth of their local knowledge. We complete a final scorecard at the end of each visit and make final candidate decisions. All decisions are contingent on the successful completion of background checks (criminal, financial, etc.) and reference checks (both provided and “off the sheet”).
As we expect our relationship with ReSeed operating partners to span decades, the final selection process is a team effort requiring unanimous approval for each operating partner we bring onboard.
Interested in investing with ReSeed?
ReSeed periodically raises capital from accredited and qualified investors.
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