As the president of Afton Properties, Reuven Gradon focuses on vertically integrated real estate investments in California. In order to turn under-performing properties into stable cash flowing assets, he works closely with real estate attorneys. To ensure that tenants enjoy living in a healthy and safe environment, he is equipped with top attorneys to monitor his portfolio. The portfolio currently includes over 3,000 units and 500 properties – these numbers are constantly growing and flourishing. Equipped with a hands-on ownership style and a strong team of attorneys and managers, Reuven Gradon has become a force to be reckoned with
Real estate companies typically choose to have a vertically integrated structure instead of specializing in only one stage of the production chain. It is often said that choosing this strategy is driven by a desire to minimize transaction costs or to foreclose competition. A downstream company can buy an upstream company and reduce the possibility for competitors to buy from that firm at a fair price. This strategy helps propel the purchasing company far ahead of their competitors as the number of upstream suppliers have been reduced. This structure essentially gives the firm control over the entire production process, from conception to completion. This often results in reduced uncertainty in execution and faster completion times.
Vertical integration can be related to the firm’s management skills, capabilities and experience. Per Reuven Gradon, when a firm makes the decision to buy on the market or do something in-house, this can add credibility. When looking to develop certain capabilities it can be beneficial to acquire companies with these capabilities as this can help to increase productivity. It can also expand information, flexibility and bargaining power. A developer that has a contractor can better evaluate reasonable offers as information from the management stage can supply useful information to the developer stage. If finding an external company to perform a task becomes difficult then the firm can carry out this task in house, this in turn results in increased bargaining power in relation to external companies.
Reuven Gradon Investment Properties in California benefits from the use of real estate attorneys who carefully keep track of his extensive portfolio. Having real estate attorneys on hand significantly decreases the stress around maintaining a portfolio. Attorneys are usually equipped with a multitude of skills including planning, zoning, subdivisions and use permits, commercial loan transactions and other credit accommodations. Attorneys also assist with purchase agreements, title documents and transfer documents.
Gradon’s California acquisitions could not continue growing so rapidly without assistance from top real estate attorneys. The process of turning under-performing properties into stable cash flowing assets requires the expertise of law professionals who are knowledgeable in the area.