Real estate capital raising and syndication
Building a Real Estate Fund After the NFL: David of Reed Partners
Drafted to the NFL - Now Building a Real Estate Fund
Real estate sponsors, emerging fund managers and operators who want to see how a firm scales through local talent and shared back office support.
What stood out
- Borrow models that already work. Reed Partners took ideas from Y Combinator on finding up and coming entrepreneurs. It also drew on Vista Equities and the Sequoia Scout program. David presents these as templates for building a firm.
- Real estate stays hyper local. David says AI and big tech may help, but they will not replace the local touch and local relationships. He says those relationships lead to deal sourcing opportunities.
- Centralize the shared back office. The firm pulls from Vista Equities by centralizing much of the back office work. The aim is to scale GP businesses while local talent focuses on its own market.
- Keep an antenna up for helpers. David chooses to believe many people want to be helpful. He still says not to over trust people who have not earned it. He warns that blinders worn too tight can mean missed opportunities.
- Small gains and teamwork compound. David points to getting 1% better every day. He also asks what he can do to make teammates, peers, family and community better, not only himself.
What you will hear
David runs Reed Partners, a real estate firm and fund that buys assets across the country. One of his partners, Moses, is based in Los Angeles. The model borrows from Y Combinator's way of sourcing up and coming entrepreneurs, from Vista Equities' habit of centralizing back office work, and from the Sequoia Scout program's search for hyper local talent.
David also covers his sports background. He went to Stanford, was drafted by the Eagles and spent about two years in the NFL, with time at the Titans, the Panthers and NFL Europe. He describes a costly mistake, leaving a master's program before finishing it, and says to stay open to good people. He closes by saying Reed wants capital partners and local operators.
Facts and figures
- Reed Partners draws on Y Combinator, Vista Equities and the Sequoia Scout program for its model.
- David was drafted by the Eagles and spent about two years in the NFL, with time at the Titans, the Panthers and NFL Europe in Cologne, Germany.
- In 2004, David finished two of three quarters of a Stanford social media master's track before leaving to pursue the NFL.
Sources
From Richard C. Wilson's Centimillionaire Strategies YouTube channel: Drafted to the NFL - Now Building a Real Estate Fund. Quotes come from the video captions, lightly edited for readability. Figures are the speakers' own estimates and experience.
General education only. Not legal, tax or investment advice.
Talk to a securities attorney to explore options around fund structuring, capital partner agreements and investor eligibility rules. Do not use AI to write your own legal agreements.
Said on the call
"Real estate is still hyper local. And as much as AI and big tech is going to, I think, help make that better, it's not going to replace that local touch and that local relationship."
"If your blinders are on too tight, you're going to miss some pretty interesting opportunities by people that do stand to help you, and you can help them."
"If you get like 1% better every day, that again compounds over time."
Related questions
- What happens to investors when a syndication deal goes bad?When a syndication goes bad, distributions usually stop first.
- What is the difference between a syndication and a real estate fund?A syndication raises money for one specific property or deal.
- What do 1031 exchange investors look for in a syndication?1031 exchange investors look for a deal they can understand quickly, a structure that fits their exchange deadlines, and a sponsor who clearly knows how exchanges work.
Questions about this video
What is Reed Partners?
Reed Partners is a real estate firm and fund that David runs with partners, including Moses in Los Angeles. It buys assets all over the country and works with hyper local talent.
What is the financial mistake David describes?
At Stanford in 2004, David left a master's program with a social media track after finishing two of three quarters because he was drafted. He says some peers from that track went on to Facebook and have since retired.
What is Reed looking for?
David says Reed is looking for capital partners and for operators in local markets. He is also there to spread the word about the firm and the fund.
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