Waahe Capital’s Vertical Investment Model: Simplifying Real Estate Investment

01/22/2024
Written by Princi Gill

If you have ever invested in real estate you know the complications of dealing with tons of stakeholders, tangled supply chains, and hidden costs. This traditional approach is overwhelming, especially for multi-housing property. We set the foundations of Waahe Capital on a vision to give our investors the best investing experience by breaking this tiring chain of real-estate investments and heavy markups and giving secured Multifamily Investment opportunities to our investors. Waahe’s unique Vertical Investment Model is set up to serve this purpose. Let’s delve into how our unique approach simplifies Multifamily Investments.

Waahe Business Model

In an industry filled with middlemen and rising costs, our Vertically Integrated Private Equity Firm model stands out by cutting corners; a boost in returns is given. In this model we have removed unnecessary middlemen and streamlined the operations, keeping the competitive edge. Which means control over the quality and timeline of projects with more secure profit opportunities.

Our Model focused on these three points

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Waahe Vertical Model vs. Traditional Supply Chain

In our direct vertical integration, we are the sole performers our investors are dealing with a next-gen real-estate investor portal, where everything an investor needs to do is literally on the tips. This has given our investors something like comparing a symphony with a solo performance. This process yields a significant upto 5X savings for our investors.

Waahe’s Business Model Saves 5x

Acquisition Criteria

Strategic Focus: We meticulously concentrate on acquiring well-located apartment communities with 100 units or more in the Phoenix and Tucson metropolitan areas.

  • Conservative Approach: In a market prone to risks, we adopt a conservative stance, ensuring stability with a steady 3% rent growth even during market ups and downs.

    Our Targeted Equity Multiple (EM) is 2X

Reduced Intermediaries: A Direct Note to Savings

Traditional Supply Chain: In a conventional supply chain, multiple intermediaries like manufacturers, dealers, lenders, and construction management….all add to hidden costs, markups, and questionable quality. Not just this, most of the time in multi-housing the project delivery is also compromised. Each handover contributes to increased expenses.

Waahe Vertical Model: Waahe connects directly with manufacturers, bypassing unnecessary intermediaries. We take direct control over the quality and project delivery. This direct link not only simplifies the process but also eliminates additional markups, resulting in immediate cost reductions. 

Streamlined Supply Chain

In the real estate industry, the traditional supply chain involves a complex network of manufacturers, distributors, and retailers. Each entity adds its markup, contributing to increased costs for investors. The process is often characterised by:

  • Intermediaries: Multiple intermediaries increase costs and create dependencies, leading to potential delays.
  • Limited Visibility: Lack of direct control over each stage results in limited visibility into the sourcing and procurement process, making it challenging to manage costs effectively.
  • Logistical Challenges: Coordinating logistics among various parties can lead to delays, impacting project timelines and investor returns.

Traditional Real Estate Investment Model Vs. Waahe Capital Investment Model

In-house Warehouse: Central Stocking

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We have an in-house warehouse of 8,000 sq. ft in Arizona from where we optimise our supply chain and stock our globally sourced construction and renovation materials- in a single location. It is a critical component of our 13-step interior renovation process, allowing us to quickly address renovation and remodelling needs quickly and efficiently. Having a central stocking and distribution location proves itself a strategic win as Waahe can continue and accelerate renovations.

Supply Chain Partnerships: Power of Bulk Purchase

Our strategic supply chain partnerships ensure we source the highest quality modern and eco-friendly materials. By tapping into these global connections, we can mitigate any supply chain restraints and complete projects quickly. We stock our redevelopment materials in the Waahe Capital warehouse for quick, easy access during each phase of renovation.

Waahe Asset Management Differentiator

At Waahe Capital, our commitment to efficiency isn’t just a concept; it’s a practice that resonates throughout our business model. Our application of the Lean Six-Sigma principles to our asset management projects has helped us develop a standardized and efficient operating plan. Through the constant elimination of waste, our team enables us to control cost, quality, and timelines with confidence and consistency.

If you're seeking an investment opportunity that simplifies the complex world of real estate while maximizing your returns, Waahe Capital is your go-to partner. Contact us today to discover how our innovative approach can benefit your investment portfolio. Let's embark on a journey to redefine real estate investment together.

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