In this episode, Patrick McKenzie (patio11) is joined by Moses Kagan, co-founder of Adaptive Realty, ReSeed, and Reconvene. Their deep dive into real estate investing and property management covers the different classes of apartment buildings, the challenges of property management, and the complexities of financing structures in the industry. They examine how the internet has transformed capital raising, the significance of cap rates, the effects of supply and demand on property values, and a comparison of the real estate markets in different major cities.  The episode is in many ways a follow up to Patrick’s conversation with Jim McKenzie and offers a window into the opaque world of real estate investment. – Full transcript available here: https://www.complexsystemspodcast.com/episodes/real-estate-moses-kagan/ – Sponsor: Check Check is the leading payroll infrastructure provider and pioneer of embedded payroll. Check makes it easy for any SaaS platform to build a payroll business, and already powers 60+ popular platforms. Head to checkhq.com/complex and tell them patio11 sent you. – Links: Moses Kagan's blog: https://kagansblog.com/Reconvene Conference: https://www.reconvene.com/ Seth Godin’s book Permission Marketing: https://www.amazon.com/Permission-Marketing-Strangers-Friends-Customers/dp/0684856360 Bits About Money: https://www.bitsaboutmoney.com/Jim McKenzie on Complex Systems: https://open.spotify.com/episode/6ocJirzGTStuf0K9ITM21X – Timestamps:(00:00) Intro (00:25) Understanding the stigma of the maligned landlord (04:07) Landlord spectrum: from mom-and-pops to institutional players (05:29) Inside Adaptive Realty (06:13) Owner vs. property manager (07:34) Challenges and complexities of property management (15:00) Capital stacks and loans(18:17) Sponsor: Check (26:25) The role of banks and underwriting in real estate (40:28) Federal subsidies and small scale landlords (44:26) Understanding commercial real estate classes (46:20) Challenges of Class C assets (47:13) Explaining cap rates (52:20) Raising equity for real estate deals (54:16) The syndication process (56:30) The role of brokers and execution risk (01:00:52) Legal structures and documentation (01:10:52) The power of networking and reputation (01:23:14) The impact of supply and demand on rents (01:28:03) Wrap