Newbrook refuses to invest unless the cap rate exceeds the borrowing cost from day one. This serves as a critical self-discipline, preventing speculation on future appreciation and guaranteeing that the asset generates a positive cash-on-cash return immediately, thereby de-risking the investment from the start.

A core, non-obvious value ReSeed provides its Limited Partners is radical standardization. By forcing all operators to use the same underwriting models and reporting formats, they solve a major analytical challenge for family offices, enabling true "apples-to-apples" deal comparisons across markets.

ReSeed targets older, smaller properties in desirable, supply-constrained areas that large institutions overlook. By adding some capital and letting the neighborhood's inherent demand drive growth, they achieve strong returns without heavy lifting or large-scale development risk.

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.

Real estate owners were skeptical of new tech. Instead of focusing on operational cost savings, Metropolis's go-to-market strategy centered on proving they could capture more revenue by eliminating leakage (e.g., when gates are up), which directly increased the underlying value of the real estate asset.

Founders can become fixated on achieving a good burn multiple, which is a theoretical measure of fundability. However, they sometimes forget the practical reality: a great burn multiple is useless if the company runs out of cash. Cash in the bank is a material construct, not a theoretical one.

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.

Investors in restaurants typically receive 70-80% of profits until their initial investment is returned. Afterward, this flips, and they retain a smaller percentage (e.g., 20%) in perpetuity. This structure prioritizes cash flow distribution over a distant, uncertain exit.

ReSeed's partnership model isn't a traditional equity stake. They take a 10% top-line revenue share from the operator's business in exchange for seed capital and, more importantly, the exclusive right (but not obligation) to fund up to 100% of the equity for future deals.