Vertical integration in real estate is the strategy of owning and managing multiple stages of the process, from acquisition to management. It results in greater control, consistency, cost savings, and higher profits. JWB is the only nation-wide company using a vertically integrated business model, meaning we have lower costs and create better deals for investors. Additionally, by investing in the community, JWB unlocks growth and an increased value for properties. The proof lies in our clients who have seen 79% more home price appreciation than the average Jacksonville home owner since 2013, and 100% ROI at or above expectation. Vertical integration does matter!
So, does vertical integration really matter?
The short answer: yes.
Here’s the long answer.
Vertical integration is a business strategy whereby multiple stages of the process are owned and managed by a single company. JWB is the nation’s only vertically integrated real estate investing company. So, what does that mean for you as an investor?
Well, let’s break it down.
Impact on the real estate process
First, we need to understand the Real Estate process. Houses don’t just appear, right? The land has to be purchased, the house has to be built (or remodeled), it has to be purchased, then sold to you, our investors, and finally it needs to be rented (to generate that cash flow) and of course, maintained to ensure that your asset, remains an asset by holding its value. You could say it’s a fairly lengthy and involved process.
But the benefit to vertical integration is reduced costs between suppliers, and because of the streamlined process, we can create better deals for investors, and higher profits for you and us, it’s a win-win.
If that’s all there was, it would still be a superb advantage over other real estate investment companies, but that’s not actually where JWB’s vertical integration ends. You see, homes don’t exist in a vacuum, they aren’t isolated from their surroundings. JWB takes it a step further, because not only do we have the production and maintenance processes running as a well-oiled machine, smooth as a baby’s bottom, we also invest in the community.
Why Vertical Integration?
The reason for this is two fold. #1 Jacksonville is our home. We love it and we care about the community as well as our investors. #2 A huge key to real estate growth is area value. If an investment company is only focused on collecting rent, they aren’t in control of the other factors that can influence property values and rental rates. Such factors as increasing median incomes, improving neighborhoods, and making significant investments in the city, past just rental properties.
JWB is focused on the long haul and knows the value in investors committed for a full market cycle (10-20 years). We focus on rents today, as well as growth like increasing median incomes, improving neighborhoods, and making significant investments in the city, more than just for rental properties.
Revitalizing the city is another maintenance step in the process of vertical integration and it’s one we know makes the difference. Just ask our clients.
Our clients success
They’ve gained 79% more home price appreciation than the average Jacksonville home owner since 2013. And 100% of our clients are reaching or exceeding their original expectations for ROI.
So, what do you think? Does being vertically integrated really matter?