Vertical integration in real estate lets companies move fast on investor deals because sister companies share the same goals. A vertically integrated firm can cut management fees for a buyer of multiple properties instantly, while outsourcing partners would slow you down.
Let's just say somebody bought 10 properties at once, and they said, hey, I would really like a break on my property management fee because I bought, you know, something in bulk. We can't go to our property manager and expect them to do that. But we have everything in house, and we can expect our sister company to say, yes, I would be happy to do that, because we both have the same vision of a great customer experience for our investor. We still have that flexibility. We have the opportunity to sit down with team members and talk about things and have all of our interests pointed to the investor and the company. And so whatever decision we make, if it's a win for the investor and a win for the company, we get to do it, and we get to do it easily, as opposed to bringing somebody else in. So that's the flexibility piece.
Physicians and High Earners — What Real Estate Can and Can't Do for Your Taxes
