How to Start a HomeVestors Franchise in 2023 Looking for information about how to open a HomeVestors franchise? Here's the franchise information you need to know.
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What is the HomeVestors franchise opportunity?
The HomeVestors™ business began franchising in Dallas, Texas, in 1996, with a real estate entrepreneur named Ken D'Angelo. Ken had purchased many homes in prior years and decided to transform his home-buying business into a franchise. He named this new business venture HomeVestors of America, Inc., and subsequently sold his first five independently owned and operated HomeVestors franchises in the Dallas area. Soon, Ken figured out how the franchises could share vendors, advertise together and route lead calls through their phone system. And so, he laid the foundation of the real estate investor franchise network that would eventually spread nationwide. With franchisees working in tandem to share market information and home buying know-how, the company's growth accelerated even more. After initially selling franchises in Texas and Kansas City, he moved into Georgia and Florida to repeat the process. Now, HomeVestors of America comprises more than 1,100 franchises spanning 47 states and D.C. and is growing every day.
HomeVestors Franchise offers real estate entrepreneurs and investors with an opportunity to create their own successful real estate company buying and selling homes. Since our initial franchise offering in 1996, HomeVestors has grown to include over 200 independently owned and operated franchisees throughout the U.S. and has received numerous awards and recognitions from top franchise business publications. HomeVestors of America, commonly known as "We Buy Ugly Houses," is the No. 1 home buyer in America. Since HomeVestors began franchising in 1996, franchise owners have purchased over 45,000 houses throughout the US. HomeVestors franchise owners pay cash for ugly homes that often have their owners in difficult situations. Our franchisees renovate houses and then sell or lease them. This improves neighborhoods in the process and offers great opportunities for first-time buyers, renters, and real estate investors.
The HomeVestors business model is built on a foundation of responsible business practices and high ethical standards, which is embodied by our real estate investor network of independently owned and operated franchisees. Rather than competing, our franchisees act as mentors to one another, sharing vendors and local market advice. In a nutshell, our business model is to:
- Onboard our franchisees for a fee
- Provide franchisees with some of the best training, tools, leads, and professional contacts
- Help franchisees with access to financing
- Provide each HomeVestors franchisee with a Development Agent to mentor them with their home buying questions and other issues.
- All of our independently owned and operated franchisees are supported centrally with mass advertising from our nationally recognized "We Buy Ugly Houses®" brand, our ValueChek® proprietary home valuation software, and our lead management software, not to mention our deep knowledge of the industry, and financial resources.
So, that means each franchise location does not struggle with issues like:
- Finding properties worth buying and rehabbing
- Paying too much for a home or selling it for too little
- Making mistakes that working with a mentor can help prevent
- Budgeting for transaction costs and repair expenses
HomeVestors offers a low-cost franchise opportunity for investors interested in building a real estate business. Our unique model includes proprietary software that our franchisees use to assess homes for purchase and renovation. It also includes mass advertising billboard campaigns that achieve quick market awareness and direct selling programs that help franchisees identify and locate buyers and investors interested in specific neighborhoods. With ongoing support from HomeVestors and our development agent mentors, franchisees build wealth by purchasing houses at discount prices. Our franchisees either renovate and sell or renovate and rent properties they buy, which generates positive cash flow and equity. We Buy Ugly Houses / HomeVestors franchisees must complete our intensive training program. It incorporates all of our systems for buying homes as well as good business standards. Our franchisees learn how to deal with homeowners who may be in an ugly situation, how to explain our home buying process, and how to carry out as-is all cash buyout deals that create a profit for franchisees while helping a homeowner get out of an ugly house.
How much does a HomeVestors franchise cost?
To open a HomeVestors franchise of your own, here are the financial requirements, cash required, and ongoing franchise fees associated with business ownership:
Initial franchise fee: $39,000 - $80,000
Initial investment: $80,000 - $456,250
Net worth requirement: $80,000 - $456,250
Cash requirement: $80,000
Veteran incentives: 10% off franchise fee
Royalty fee: Varies
Ad royalty fee: Varies
Term of agreement: 5 years
HomeVestors does offer in-house financing to cover inventory only, and the brand does maintain relationships with third-party lending sources, which can also be used to cover inventory. As a HomeVestors franchisee, you will have:
- Financing for the qualifying purchase and repair of houses
- Vacant property insurance at group rates through a third-party insurance vendor
- HomeVestors Internet site for access to information and HomeVestors-hosted website for HVA franchisees to help them sell houses
- Home based franchise that you can run from your house
How much does a HomeVestors franchise make?
HomeVestors is the only national real estate investment franchise. Unlike most real estate franchises, we work specifically in the home investment niche, where we set ourselves apart from the competition of traditional realtors and brokers. As an independently owned and operated franchise owner, you get to manage your own investments while also benefiting from our national network of knowledge and resources.
Generally speaking, in order to make decent money flipping houses, you have to have a system in place to find properties that fit certain criteria, buy them at a good price, perform key repairs within budget, then sell at a number that provides good returns. That magic number is somewhere above your costs but within reason of what the market will bear. For further information, please refer to the HomeVestors FDD, Item 19.
How do you buy your own HomeVestors franchise?
There are two ways to start building your HomeVestors business. Take a look and see which is right for you:
Full Franchise: $80,000
Our Full Franchise opportunity is for the person interested in developing a complete, full-time real estate business. Full Franchise owners are granted marketing rights in their territory, access to tools and mentorship, and jump right into steering their businesses at the helm full-time. Full Franchisees typically open an actual office location and have a staff that supports and grows their business.
Associate Franchise: $39,000
Our Associate Franchise opportunity is for the person who wants fewer up-front costs to start out or those who want to develop the business part-time. Associate Franchise owners are granted marketing rights in their territory and access to tools and mentorship. Associate Franchisees typically work the business part-time out of their home. When it grows into a full-time job, they have the opportunity to upgrade into a Full Franchise.
Whether you're thinking of becoming a professional real estate investor or have been bumped around a time or two, there's one thing everyone in this industry needs: credible real estate investment training and education that shows you how to get the results you're looking for, taught by a proven authority.
HomeVestors offers comprehensive real estate investment training and education that teaches the nuts and bolts of buying, rehabbing, and selling distressed properties. Unlike the so-called real estate investing gurus who feed you a tidbit of their wisdom and then leave you hanging to figure out the rest, HomeVestors' real estate investment training and education covers all the essentials, including:
- Getting leads
Understand HomeVestors tried-and-true lead generation method with the nationally known We Buy Ugly Houses campaign.
- Valuing a property's ROI
Leverage our proprietary valuation software, ValueChek®, to understand localized repair costs and the after repair value of your investment before you buy into a deal.
- Buying houses
Develop confidence to manage the buying process, from handling phone calls to making offers.
- Financing your opportunity
Benefit from access to an exclusive online lending portal and get financing for qualifying purchases and repairs available only to HomeVestors franchisees.
- Planning the best exit strategy
Know your options. We have a nationwide network to help you do everything from wholesaling to listing on the MLS.
When you decide to become a HomeVestors business owner, you aren't buying a job. You're building a portfolio of properties, developing positive equity, and ultimately, creating a new life for yourself. Not only can investors sell a rehabbed property, but they can also rent it out, hopefully creating a stable flow of revenue for years or decades. When it comes time for retirement, rental properties are a great way to keep the money rolling in. Few franchise opportunities offer the successful proven business model and support system of HomeVestors of America, and HomeVestors has strict systems and standards for franchisees to ensure the ongoing success of our outstanding real estate business franchise model. Each franchise office is independently owned and operated.
If you're considering real estate investing as a full-time or part-time career, here are some reasons why you should look at the HomeVestors franchise network:
- No. 1 real estate home buying franchise in America instantly recognized as the people, so homeowners, buyers, renters and other investors already know that you are part of a well-established real estate national brand
- Steady stream of qualified leads for our franchisees using powerful marketing strategies and incredibly strong brand awareness that solo investors don't have
- Coaching and personal attention from our HomeVestors development agents who will assist and coach you in buying, renovating and selling or renting houses in your market
- An intensive training program that incorporates systems for buying homes and exit strategies for selling houses fast using one or all our seven proven strategies that can help you sell quickly
- Proven system that works - over and over with the excellent support and training that accompanies our outstanding system, you will join a real estate franchise that has already bought over 125,000 houses nationwide, more houses than any other home buying franchise system
At HomeVestors, we're passionate about ethical real estate investing with honest transactions that leave both the buyer and seller feeling satisfied at the end of the deal. That's why we provide all HomeVestors independent franchisees with the training, tools, and support to help them achieve their real estate investment goals the right way. Why do we provide top-notch training? Because when our franchisees succeed, we succeed. We have a vested interest in your success, and we will give you some of the best training to help make that happen. We've already given hundreds of franchisees the real estate investment training and education they've needed to achieve theirgoals, and we can do the same for you.
Request more information about franchising with HomeVestors by filling out this form to learn more and begin the discovery process for your very own franchise operation!
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