Vertical Integration, Strategic Partnerships, and Scale Economies

[Cameron Barnett]

The purpose of this post is to start a meaningful discussion to find potential partners in real estate investors, builders, handyman, property management, and real estate development while gaining knowledge of each industry's advantages, disadvantages, and how each industry can combine to maximize efficiency, profitability, expansion. 

There's a positive trend in creating Joint Venture Real Estate deals, with modern communication and business software implementation there's an advantage to having multiple partnering companies. Having a partner in every sector allows each company to focus on their strengths and tasks effectively, communicate trends with one another and giving an extra set of eyes. Using conservative estimates on profit & and loss diagrams there's an increase in profit margin with substantially less time needed to achieve the estimated goals.
This advantage is noticed immediately and allows each company to attribute much needed time towards building external business relationships and diversifying their income apart from the partnership.

The partnership would be its own sector within each company which has its own staff and resources dedicated to performing all partnership tasks helping to keep external operations separate. Having a diverse portfolio stimulates internal organic growth while opening opportunities for other partners broadening their network and possibilities. Simply being included in the partnership creates a possible referral system using a partner to partner network when conducting individual company business.

Strong communication is imperative while reaching maximum efficiency, when each unit is healthy there's no competitor that can outperform any aspect of the partnership. Regardless if an individual partner doesn't have income from outside sources the partnership reduces stress and poor decisions because there is always workflow coming from the partnering companies thus creating a self-generated revenue source dependant on good investment deals, property acquisition, a strong labor force, creating a positive brand image.

That is just the beginning of what can be with proper implementation of the mentioned business strategies, if this sounds like you and your business could benefit and be a positive force in something like this email me for contact info.

Personally I own a remodel company and recently created a separate real estate firm focusing our investments on fix and flips and buy and holds using the remodel company to do all repairs, remodels, and property management.
I'm all about some side action as long as it doesn't interfere with my commitments and business so feel free to run deals by me