Vertical Integration Goals

[Paige Laliberte]

After reading so many of your stories about hiring contractors, using property managers, etc, I have yet to see much information about any vertically integrated companies on here.

It is probably a bit of a pipe dream, but one of the big real estate goals I have is to own a company that can do everything for me without having to hire out for much. I would love to have contractors that I pay directly doing work on the homes I bought from real estate agents that work for me. While this might not be at all feasible for me, I was wondering if it is even possible at all!

Do you all know of anyone such vertically integrated companies? Maybe you own them or have a friend who does. If you don’t know of any, do you think it is a impossible goal to be striving for?

Looking forward to hearing your thoughts!

[Michael Ealy]

Originally posted by @Paige Laliberte:

After reading so many of your stories about hiring contractors, using property managers, etc, I have yet to see much information about any vertically integrated companies on here.

It is probably a bit of a pipe dream, but one of the big real estate goals I have is to own a company that can do everything for me without having to hire out for much. I would love to have contractors that I pay directly doing work on the homes I bought from real estate agents that work for me. While this might not be at all feasible for me, I was wondering if it is even possible at all!

Do you all know of anyone such vertically integrated companies? Maybe you own them or have a friend who does. If you don’t know of any, do you think it is a impossible goal to be striving for?

Looking forward to hearing your thoughts!

I own a vertically-integrated real estate company.

More specifically, we have in-house personnel doing rehabs for our projects and our in-house property management company. 

Our rehab cost is literally 50 percent lower than what "normal" real estate investors pay. And it's one of our main sources of competitive advantage.

So it's not a "pipe dream". It's hard but it can be done.

[Paige Laliberte]

@Michael Ealy I just started reading through your 3 part forum posts about your success. You are such an inspiration!

Your vertical intégration is exactly what my goals are and I am glad to see you do find it to be cost saving. Do you hire on people as employees, or do they remain as independent contractors?

[Michael Ealy]

Originally posted by @Paige Laliberte:

@Michael Ealy I just started reading through your 3 part forum posts about your success. You are such an inspiration!

Your vertical intégration is exactly what my goals are and I am glad to see you do find it to be cost saving. Do you hire on people as employees, or do they remain as independent contractors?

Both - it just depends on the job type/roles/responsibilities. In general though, I get them to start as an IC first.