Have you been thinking about working in real estate but you’re not sure where to start or what kind of training is required? Do you enjoy meeting new people and helping them find solutions to their problems? Do you love “ugly houses”, or a least the opportunity they may represent for you and your future? A HomeVestors® franchise might be right for you!
In the first quarter of 2022, 114,706 single-family houses and condominiums in the United States were rehabbed and sold for a profit by investors, according to ATTOM, a leading curator of real estate data and property data. Simply stated, nearly 1 in 10 houses were purchased, renovated, and sold earlier this year—the highest level reported since 2000. While you might think you need experience to capitalize on real estate investments, by partnering with the right company, you could quickly become an expert.
However, to get started and remain profitable, you will need a steady stream of warm leads, a solid understanding of how to value a distressed property, and reliable industry contacts who can help you renovate your properties. You also need access to capital in a competitive sector. That’s why joining a franchise like HomeVestors, as opposed to going it alone, could be your ladder to real estate investing success.
HomeVestors is a national franchise that includes over 1,000 franchises throughout the country. The company’s trademarked tagline, “We Buy Ugly Houses®” can be seen on billboards throughout the United States, cementing the brand’s mission and commitment to helping homeowners get out of “ugly” homeowner situations. Sellers, who need to sell a home “as-is” and as quickly as possible will do this for a variety of reasons, and HomeVestors is ready to help.
The HomeVestors franchising opportunity welcomes potential franchisees from different walks of life to help them fulfill their mission. You don’t need to be a contractor—or real estate expert—to help distressed homeowners sell their properties quickly, according to company leadership. HomeVestors guides franchisees every step of the way.
Being a HomeVestors Franchise Owner is About Relationship Building
Anthony Lowenberg, the company’s General Counsel, explained HomeVestor’s approach to welcoming new franchise owners. “Because our business model is so flexible, it can be successfully managed by all kinds of people and various personality types,” he said. “The most successful home buyers are those who love to meet new people, take the time to get to know their sellers, and help them through a difficult time or solve a problem. HomeVestors franchisees make their offers in person, and successful franchisees enjoy these personal interactions that come with the business.”
“While there is no typical profile of a HomeVestors franchisee, it does help to have the patience to run a business and the desire to produce weekly and monthly forecasts. You also need the emotional intelligence to empathize with customers, understanding that the business is more about people than it is real estate,” Lowenberg said. “Once you get up and running, you can hire staff to complete administrative tasks such as scheduling appointments and closings.”
Get the Tools You Need from Proprietary Technology and an Experienced Team
While former contractors joining HomeVestors may have an advantage in some respects, as they can more quickly identify what needs to be done to a house and better determine the cost of renovations, they may lack experience in other areas. For example, a contractor might not understand how to gauge home values in their territories or present solid offers to sellers. At the same time, investors might be skilled at determining home values, but they may lack the skills and resources required for home renovations. There is also a need to acquire qualified leads or stand strong against tough competition from other investors and buyers. Also, some people are more comfortable meeting face-to-face with homeowners and building relationships. The good news is HomeVestors has a specific and proven process to help each franchise owner leverage their natural and acquired talents and excel in all areas of the business.
HomeVestors franchisees gain access to in-depth training and support, proprietary technology tools, and apps that help franchise owners accurately value properties and price rehabilitation projects. You will be assigned an experienced development agent, or real estate coach, who not only can help you launch your business, but also support your process from lead generation through closing.
HomeVestors franchisees also benefit from a consistent supply of warm leads. Through robust multi-media campaigns developed by the HomeVestors marketing professionals, franchise owners get a consistent flow of contacts. At HomeVestors, franchise owners routinely work together to maximize lead generation and boost business across the system—through advertising, mentoring, buying, and selling.
“Whether it is through a message board on the franchise intranet, at monthly local council meetings, or at one of our bi-annual conferences, HomeVestors is unique in an industry where competition is fierce and investors outside of the HomeVestors team typically do not open up about their business to cooperate with each other,” Lowenberg said.
You Don’t Have to Operate a Full-Time Real Estate Franchise to Succeed
HomeVestors franchise owners can scale up their business as they’re learning it. The company allows you to invest at two levels: Associate and Full. Associate franchise owners give new franchises the ability to invest at a lower level with higher fee and are granted the same marketing rights in their territory and get the same access to technology tools and mentors. Associate franchisees may work their business either full -time or part-time out of their homes. When their business grows, they have the option to upgrade to a full franchise.
Full franchise owners develop a complete, full-time real estate business. Full franchisees often open an office location and hire a staff to support and grow their businesses, though that is not required. “Whichever level you decide to invest at, you do need to have a willingness to learn and an appetite for risk,” Lowenberg said.
“The desire to be an independent entrepreneur is far and away the top reason to own a HomeVestors franchise. Second, it is very common for franchisees to come into the system with a passion for real estate,” he said. “Finally, we also frequently see franchisees come into the system with a desire to not only support themselves and their families, but to also make a positive difference in their communities.”
HomeVestors® Franchisees Believe in Their System
When you make the decision to join a franchise, it’s important to understand its strengths, weaknesses, and how your peers view the corporate office. To get a snapshot of what their franchisees think, HomeVestors conducted a review with us in 2020, obtaining feedback from 42% of their active franchisees (n=406).
Here’s what they said:
- 90% of franchisees “strongly agree” or “agree” they enjoy operating the business.
- When asked if franchisees respect their franchisor, 86% “agree” or “strongly agree.”
- 76% of the system agree the franchisees are supportive of each other.
The HomeVestors team uses the feedback from franchisees to stay connected with the growing system. They also use it to gauge how well they are doing in terms of balancing supporting existing franchisees and growing the brand.
Most recently, HomeVestors was named an FBR Top Recession-Proof Franchise in 2022 and made Franchise Business Review’s 10-Year Hall of Fame.
Are You Ready to Buy a HomeVestors Franchise?
To become a HomeVestors® franchisee, you don’t need to have experience rehabbing, selling, or investing in real estate, you just need the desire to follow a proven system. With options to invest full- or part-time, HomeVestors allows you to build your business to the level you want—as you grow. Because the company does not require an office location, you can enjoy work-from-home flexibility and ramp up quickly. Joining the brand can prove to be lucrative, too.
- Full Franchise — With an $80,000 investment, you receive marketing rights in your territory, access to tools and mentorship, and can jump right into operating your business full-time.
- Associate Franchise — With a $39,000 investment, you have a lower entry-level investment, and higher fees while you grow your business. Under this agreement, you still get marketing rights in your territory and the same access to tools and mentorship as full franchisees.
Veterans purchasing a Full or Associate franchise receive a 10% discount.
Total Startup Investment
- Full Franchise — $121,000 to $456,250. This includes the initial $80,000 investment
- Associate Franchise — $80,000 to $390,250. This includes the initial $39,000 investment
- Net Worth Required — $80,000 – $456,250
Other expenses covered in the initial investment include advertising, training, signage, opening costs, and the 10% down payment on the purchase, repair, and insurance of one to five properties.
If you want to learn more about HomeVestors’ home-buying method, you can read the Guide to Professional Home Buying — Business Plan and ROI Advice. To learn more about other investors who have found success with the HomeVestors® franchise model, you can read actual HomeVestors franchisee stories here.
To learn if HomeVestors is the right fit for you, complete this form to request more information or call 800-230-0385.
Each franchise office is independently owned and operated.