February 20, 2025

#35 Moses Kagan: Building Generational Wealth with Generational Assets - "Indefinite Holds" in Real Estate

1 hour 19 minutes

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/

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SPONSORS

Thank you so much to the sponsors of The Building Culture Podcast!

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By Austin Tunnell

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