What Makes Vertical Integration Significant?

We have a saying here at StoneCrest Equity Partners: It is Never Ever Ever Ever Ever (Yes 4 times) about US. Everything we do has to be about our investors. As Zig Ziglar says:

“You Can Have Everything In Life you Want, If You Will Just Help Enough Other People Get What They Want”

Now that you have a good understanding on the investment strategy behind the StoneCrest Prosperity Fund (if you missed that series access HERE) lets change the focus from the real estate to the relationship.

There is a reason we named our investment arm of StoneCrest…..StoneCrest “ Equity Partners”. We believe the best way to achieve any worthy goal is to work in harmony and in alignment with our partners (investors).

So, the next few newsletters are going require careful consideration and some introspective thought. Hopefully, after all the information is presented, you will be excited to continue this investment journey together. We will cover:

The advantages StoneCrest Equity Partners has over other Syndicators (This newsletter)
Your Why. What would you like to achieve with your next investment (Next Week)

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OUR SECRET SAUCE…

What makes StoneCrest Equity Partners special and in turn a better investment choice? I think it comes down to one thing: Accountability.

We here in SEP, are 100% responsible for the acquisition, development, construction, lease up, property management and asset management of our projects.

“Well of course you are, you are promoting it as your project” you might say. But did you know that most New Development Real Estate Syndications (group investments) have up to 5 different parties working on the same project?

Operator finds the deal and manages it after it is built
Sponsor/Syndicator raises the capital needed to bring the deal together
Developer get the land approved by the city and puts in the infrastructure
Builder completes the construction of the asset
Property Manager manages the day-to-day activities of the tenants for the Operator

This in our opinion just leaves too much room for error. The operator is relying on each level to do their job correctly and within the budget so that the returns projected to the investors are met.

But each level is solely focused on their part, and they may have estimated their part based upon faulty information from another group in the deal hierarchy.

When things go wrong none of the parties are answerable to the investor except the operator. As a result, the rest are not thinking of the investor, but how to make it right for their own group.

This is too much risk in our minds. Think about it….if the developer miscalculates the amount of gravel needed, he will send a change order to the Operator. And if the Operator doesn’t understand construction, remember their main role is is to manage the deal, well there is no way for them to mitigate against this risk.

So instead, we are going to take charge of every level. After all we already have done all 5 levels successfully for ourselves. Now we are going to do it for you. We think this is one of the most powerful ways to protect you from risk and provide reliable returns for our investors.

Investors will be backed by StoneCrest Equity Partners operational prowess. I believe together we will create a powerful ensemble that can reap substantial financial rewards. Zig Ziglar would be proud.

I hope you have enjoyed the newsletters so far. If you would like to further your investment education consider joining our StoneCrest Equity Alliance where you will be the first to know about upcoming opportunities, get invited for exclusive site visits and receive even more in depth knowledge on syndications.

We are planning an in person event to show off our apartment complex that is currently in construction. If you would like to be invited to this July event RSVP here.

As always, we are here to answer your questions and help you achieve more wealth.

Let\’s Talk Real Estate

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This document is solely for informational purposes and does not constitute an offer to purchase a security. Securities will only be offered pursuant to a private placement memorandum in reliance on certain exemptions from the registration requirements of the Securities Act of 1933 (primarily Rule 506(b) of Regulation D and/or Section 4(a)(2) of the Act) and are not required to comply with specific disclosure requirements that apply to registrations under the Act.

Investing involves many risks, variables, and uncertainties. No representations or warranties are made that any investor will, or is likely to, attain the returns shown above since hypothetical or simulated performance is not an indicator or assurance of future results.