Find Out Why a Vertically Integrated Multifamily Investment Company is Crucial to Your Investment Success
When you decide to invest with a multifamily investment company, you may come across the term “vertical integration.” This is an important topic, but one that could perhaps be misleading without the right information.
As with all of our articles, Worcester Investment’s goal is to help you make educated decisions about investing. Accredited investors deserve this information, so they can leverage their hard work and success with potentially high returns on investment.
In this article we will explore what vertical integration means to our investment team. We specialize in Kansas City real estate investment where vertical integration is an important part of our success. We will also explore what to look out for when you hear claims of vertical integration from less-than-satisfactory investment firms.
In short, however, this is our take: a vertically integrated real estate company is thorough and seamless. This means that each entity – from investment, to development, to property management – does their job well. Each of these parts works together to create a satisfying investment product for you.
What Does Vertical Integration Really Mean?
A vertically integrated company, as we mentioned above, is both thorough in its approach and very well organized. First, the team responsible for the acquisition of great real estate in Kansas City discovers an investment opportunity. Then, another arm of the team is responsible for repositioning that property in the marketplace.
Further, property management specialists ensure that revenue is being drawn from this outstanding investment. The investment team is brought back into play if a property is later sold. Importantly, the Investor Success team also plays a big role in ensuring that accredited investors are taken care of in all ways. This team provides transparent information, easy access for questions and concerns, transparent regular updates and reporting, and more.
As you can see, there are many moving parts in a multifamily investment company. Each of these parts must be excellently organized in and of itself. Then, each must have a strong relationship with the others, ensuring that the enterprise’s flow and structure are superior. This is what makes our vertically integrated real estate company an industry leader.
Why Does Vertical Integration Give You an Advantage as an Investor?
You can imagine how the process of investing in Kansas City real estate could go wrong without strong organization. Communication between the key aspects of our firm is essential, as in any business. However, because there is so much in play – especially with our largest projects – we ensure that communication is highly effective.
But what specific advantage does a vertically integrated real estate company really give accredited investors? At Worcester Investments, there are several advantages:
- We are able to jump on great investments quickly, as we don’t need time to assemble a vertically integrated team.
- Because we manage our own properties, we do not collect a management fee from investors.
- We know the key players in Kansas City real estate.
- Our knowledge of the entire process of investing in and repositioning real estate helps us avoid costly mistakes.
- Our multifamily investment company makes great deals because we know each of the relevant industries well.
This is why vertical integration matters so much to us – because it benefits our investors. As you can see, there are already cost-advantages built into our strategy. Based on our historically high returns on investment, we strive to ensure these advantages will continue.
What Vertical Integration Is Not
Calling a multifamily investment company a vertically integrated real estate company is not a marketing tactic. Vertical integration occurs when you can demonstrate a fully built-out team that works in each of the stages of the investment process.
In Kansas City real estate, an investment firm could potentially make a claim that they are vertically integrated. They may claim that because they work with management and construction companies. However, partnering with other industries is not the same as working together with the same goals and under the same umbrella.
It is important to ask a multifamily investment company what they specifically mean by vertical integration. Who is truly a member of their team? Who are they including as partners who may not truly consider themselves real business partners? You, as an accredited investor, are entitled to clear answers because your money is ultimately on the line. You get to choose what company to invest with. Worcester Investments wants you to choose wisely.
Getting In Touch with Worcester Investments: A Team Committed to Vertical Integration
If you have already done your research and concluded that our team meets your high standards, get in touch. We look forward to understanding your “why” for investing with us, and how we can help. We want to ensure that your investments become your legacy. You’ve worked hard to ensure the best for you and your family, and we want to honor and respect that.
If you haven’t yet looked into “vetting” our multifamily investment company, we can show you how. As thought leaders in the Kansas City real estate investment industry, we’ve developed what we call “The Seven Keys to Passive Investing.” Each of these keys helps you make a decision about who to invest with. Whether you opt to work with Worcester Investments or with another firm, these educational materials are free for the taking.
For instance, one of these keys relates specifically to vertical integration: “team.” When you do your research on a vertically integrated real estate company, you can determine whether they have a strong team. Is the team thoroughly knowledgeable regarding each of its responsibilities? Are the various arms of the team working together seamlessly? These are important questions to ask.
Take some time to look over our “Seven Keys,” starting with “trust.” Then, when you’re ready, get in touch with us here. Or, you can give us a call at (816) 759-0901 to set up an appointment with our Investor Success team. We look forward to showing you how vertical integration truly works in a multifamily investment company.