Counterintuitively, the best multifamily markets aren't high-population-growth cities like Austin. These attract too much new supply, capping rent growth. The optimal strategy is to find markets with barriers to entry and minimal new construction, as this creates a durable runway for rental increases.

ReSeed finds significant opportunities in the sub-institutional market driven by operational incompetence, not just market cycles. Assets are often mispriced due to unsophisticated owners, brokers who don't understand the property's potential, or busted sales processes like listing on residential MLS.

Initially, ReSeed expected to mentor operators with limited experience. However, by demonstrating its ability to reliably fund deals, the firm attracted highly experienced professionals from private equity and top MBA programs who were previously too risk-averse to join an unproven platform.

The ideal time to invest in an up-and-coming neighborhood isn't at the very beginning. Wait for tangible signals that the trend is real, such as new coffee shops or when ~25% of homes are renovated. This strategy confirms momentum while still capturing significant upside before the area fully turns.

ReSeed's model is a heavy lift upfront but creates a powerful, decentralized deal sourcing machine. By backing numerous scrappy, local experts, they have boots on the ground in many markets, unearthing opportunities that a single, centralized acquisitions team could never find.

To de-risk value-add projects, ReSeed funds acquisitions entirely with equity. This avoids the pressure and risk of debt service during unpredictable renovation and lease-up periods. They only introduce leverage once the asset is stabilized, which has a surprisingly minimal negative impact on the overall IRR.

The strategy involves acquiring multiple small, local businesses (e.g., laundromats) and applying principles like operational efficiency and economies of scale, mirroring the playbook of large private equity firms but at an accessible level for individual entrepreneurs.

Though administratively burdensome, ReSeed intentionally includes a syndicate for small checks in its deals. This isn't for capital needs, but as a strategic marketing tool. It allows potential high-net-worth investors and family offices to experience the platform with a small "trial" investment before committing larger sums.

Institutional investors treat homes not as places to live but as financial products for generating cash flow and appreciation. By buying up entire neighborhoods, they have effectively created a new institutional asset class, turning communities into rental portfolios and pricing out individual buyers.