home union

24 Replies

Hello fellow investors,

Has anyone work with HomeUnion? If so, how was your experience?

thank you

Hi Indira,

Full disclosure, I work at HomeUnion, so I'm not quite the person you're wanting to hear from, but I wanted to point out that there is another related thread in which one of our investors has posted about his experience. You can see it at 

http://www.biggerpockets.com/forums/92/topics/1415...

Look for Jacob Elbe's comments. 

Feel free to ask me any questions you may have as well. I'm happy to answer.

-S

@Indra H.  

Sorry I didn't see this sooner!  I have purchased three properties with HomeUnion now and continue to work with them.  I don't work for the company but have been generally happy with their services.  For my first two properties I worked with HomeUnion to identify turnkey properties in the Cleveland market that have performed very well.  My third property is a duplex in Indianapolis that a HomeUnion agent helped me identify and negotiate on.  I'll be honest (and I've told HU this) that their new layout has put more of a burden on the investor on the front end.  This is because the investor now has to do more analysis and work in finding an investment.  They now provide much more support on the back end if you use their asset management services.  I see them as a manager for your property managers basically.  So if you have properties in multiple markets under different management, HomeUnion will be your sole point of contact.  So for truly passive property investing, they provide a great service.  

I'm now staying open to buying properties outside of HomeUnion because I think I can find better deals off market but will likely continue to work with HomeUnion for more rent ready properties.  I just don't use their asset management because at this point I don't mind working with the property managers directly.  

I hope this helps!  Feel free to contact me with any questions.

Disclosure: I don't work for HomeUnion but the company has recently started offering incentives for referrals.

Originally posted by @Jacob Elbe :

@Indra H. 

Sorry I didn't see this sooner!  I have purchased three properties with HomeUnion now and continue to work with them.  I don't work for the company but have been generally happy with their services.  For my first two properties I worked with HomeUnion to identify turnkey properties in the Cleveland market that have performed very well.  My third property is a duplex in Indianapolis that a HomeUnion agent helped me identify and negotiate on.  I'll be honest (and I've told HU this) that their new layout has put more of a burden on the investor on the front end.  This is because the investor now has to do more analysis and work in finding an investment.  They now provide much more support on the back end if you use their asset management services.  I see them as a manager for your property managers basically.  So if you have properties in multiple markets under different management, HomeUnion will be your sole point of contact.  So for truly passive property investing, they provide a great service.  

I'm now staying open to buying properties outside of HomeUnion because I think I can find better deals off market but will likely continue to work with HomeUnion for more rent ready properties.  I just don't use their asset management because at this point I don't mind working with the property managers directly.  

I hope this helps!  Feel free to contact me with any questions.

Disclosure: I don't work for HomeUnion but the company has recently started offering incentives for referrals.

 If you don't mind me asking, what kind of cash on cash returns are you getting?  I've just stumbled upon Home Union today and I find it very interesting.

@Travis Beehler

My returns have been great, but I don't think my properties can be compared to the model and properties that HomeUnion currently sells.  I bought through HomeUnion when they were still selling turnkey properties and before they really got into asset management.  So the process was different, as well as the costs associated with the process.  They were certainly a professional organization, their model just didn't work as well for us as we went from passive investors to active RE entrepreneurs.  I haven't looked at their current inventory to be able to compare my properties to what they're selling these days.  I recommend reaching out to someone on their Solutions Team to discuss your questions.  They should also be able to refer you to a more recent client that has purchased through them using their current model, so you can get a better idea for what predicted vs. actuals would look like using their current model.  I hope that helps, best of luck!

Jacob

Originally posted by @Jacob Elbe :

@Travis Beehler

My returns have been great, but I don't think my properties can be compared to the model and properties that HomeUnion currently sells.  I bought through HomeUnion when they were still selling turnkey properties and before they really got into asset management.  So the process was different, as well as the costs associated with the process.  They were certainly a professional organization, their model just didn't work as well for us as we went from passive investors to active RE entrepreneurs.  I haven't looked at their current inventory to be able to compare my properties to what they're selling these days.  I recommend reaching out to someone on their Solutions Team to discuss your questions.  They should also be able to refer you to a more recent client that has purchased through them using their current model, so you can get a better idea for what predicted vs. actuals would look like using their current model.  I hope that helps, best of luck!

Jacob

 Ok thanks!  Yeah, I took a quick look on their site and love the idea, but my current properties are currently returning me 35%-46% cash on cash, so I wasn't sure if it was a right fit for me. :)

I have had a few conversations with homeunion and they do seem knowledgable and professional but i am floundering to figure out what i should do as a first time investor.  i'm also looking at turn key operators. the thing i like about HU is that you buy on the open market so there is no issue with inflated buy ins like there seems to be with turn keys.  #confused first time investor 

Originally posted by @Dana Yobst :

I have had a few conversations with homeunion and they do seem knowledgable and professional but i am floundering to figure out what i should do as a first time investor.  i'm also looking at turn key operators. the thing i like about HU is that you buy on the open market so there is no issue with inflated buy ins like there seems to be with turn keys.  #confused first time investor 

 I just got off the phone with them, I'm also a first time investor...  I think it sounds like a great model but the one thing I forgot to ask was what their tenant placement is like...  how much "churn" do they have?  If there's no placement fees then I would assume they work to keep churn on a property down.  While the acquisition/closing costs seem inflated, 1.5% per year for all the property management seems good to me provided the other numbers make sense.

I wish there was more detail on what exactly they do and how it works on their site.  It was good to get a call from them but I feel like I was overwhelming they guy with too many questions.

I'm sure I didn't help you at all but hope you're able to find solidarity in the fact that I'm floundering just as much as you.

I had a call before thanks giving and considering to invest with HU.  Some of the costs associated with HomeUnion are

3.5 % of purchase price as Acquisition fee (one time). This helps purchase and manage rehab if needed.

1.5%   of purchase price as Asset Management Fees (Yearly).

75% of monthly rent as Leasing Fees. This is charged every time there is new tenant.

$1000 Repair & Maintenance Reserve  (refundable ).

Am I missing any other cost? How do you compare this with other TK companies?

Originally posted by @Venkat B.:

I had a call before thanks giving and considering to invest with HU.  Some of the costs associated with HomeUnion are

3.5 % of purchase price as Acquisition fee (one time). This helps purchase and manage rehab if needed.

1.5%   of purchase price as Asset Management Fees (Yearly).

75% of monthly rent as Leasing Fees. This is charged every time there is new tenant.

$1000 Repair & Maintenance Reserve  (refundable ).

Am I missing any other cost? How do you compare this with other TK companies?

 Good questions.  These costs are hard to compare with turnkey companies, which do not include an acquisition fee - and that is a biggy.  The 1.5% management fee you'd have to compare to the 8-10% of collected rents property management fees typically charged.  It could be higher or lower depending on what rent/price ratio you get with the HomeUnion properties.

The 75% of monthly rent for a leasing fee does fall in with a typical range, which is 50-100% of 1st month, although some turnkey providers will not charge any lease fee for the 1st tenant placement.

$1,000 R&M reserve sounds really high to me, especially if it is for each property vs the total no matter how large your entire portfolio with HomeUnion is.  To give an example, I have a portfolio properties with a turnkey company in Jacksonville, Fl and they require I hold a $400 reserve with them for my entire portfolio, no matter how small or large.  That was increased this year from $250.  Some  turnkey PMs do not require any reserves be held by them, and simply leave it to you to keep funds available.

Other costs to consider, include any charge for releasing (resigning existing tenant) and what you can expect in turnover costs.  The loss of income during a vacancy, plus repairs and cleaning needed to make rent ready again can be some of the biggest (and often unaccounted for) costs in buy and hold properties that are not self-managed. 

Larry Fried, Real Estate Agent in OR (#201211636)
Originally posted by @James Wise :

am I reading this correctly?

An investor has to pay regular P.M. fees to the P.M and then also pay assert management fees on top of that to HU?

Or is HU now doing the management and there are two different price models?

 Hi James,

Disclosure - I work for HomeUnion. 

HomeUnion handles all the management, so there is only the HomeUnion Asset Management fee to pay. Our investors DO NOT have to pay any other property management companies.  

I'm not quite sure what you mean by two different price models though. Hopefully, my response above covers that question, but if not, please let me know.

-Scott

Originally posted by @Scott Hetherington :
Originally posted by @James Wise:

am I reading this correctly?

An investor has to pay regular P.M. fees to the P.M and then also pay assert management fees on top of that to HU?

Or is HU now doing the management and there are two different price models?

 Hi James,

Disclosure - I work for HomeUnion. 

HomeUnion handles all the management, so there is only the HomeUnion Asset Management fee to pay. Our investors DO NOT have to pay any other property management companies.  

I'm not quite sure what you mean by two different price models though. Hopefully, my response above covers that question, but if not, please let me know.

-Scott

 Yes this clears it up. Investors only PM fee is the asset management fee and leasing fee. Another poster had stated HU was a PM for your PM so that's where it was confusing me as to whether people were paying regular PM fee & asset management fee's.

James Wise, Real Estate Agent in OH (#2015001161)
216-661-6633
Originally posted by @James Wise :
Originally posted by @Scott Hetherington:
Originally posted by @James Wise:

am I reading this correctly?

An investor has to pay regular P.M. fees to the P.M and then also pay assert management fees on top of that to HU?

Or is HU now doing the management and there are two different price models?

 Hi James,

Disclosure - I work for HomeUnion. 

HomeUnion handles all the management, so there is only the HomeUnion Asset Management fee to pay. Our investors DO NOT have to pay any other property management companies.  

I'm not quite sure what you mean by two different price models though. Hopefully, my response above covers that question, but if not, please let me know.

-Scott

 Yes this clears it up. Investors only PM fee is the asset management fee and leasing fee. Another poster had stated HU was a PM for your PM so that's where it was confusing me as to whether people were paying regular PM fee & asset management fee's.

Several years ago, that was accurate, but even then we only had one fee, we just passed the PM's fee through. to better serve our clients, we've built out the infrastructure in each of our markets to do the management ourselves. 

I hope everyone had a wonderful Thanksgiving.

Originally posted by @Allison Karrels :

@Scott Hetherington - does home union strictly sell/manage single family homes or are there possibilities of small multifamily

 HI Allison,

We do on occasion sell and manage some multifamily properties.  Actually, those occasions are happening more and more often. To find out if we have identified any that are good investments right now, talk to one of our solutions manager and they'll let you know and/or keep an eye out for you...in fact, I'll try to see who it is and will forward this thread to him/her.

@Scott Hetherington - I have begun talking with Maximilian Howell - that is the fanciest name I have ever dealt with!!  

Goal is to buy 2 properties next year so I will be looking at Home Union as an option.

Originally posted by @Allison Karrels :

@Scott Hetherington - I have begun talking with Maximilian Howell - that is the fanciest name I have ever dealt with!!  

Goal is to buy 2 properties next year so I will be looking at Home Union as an option.

 Ha. The only thing that would make it fancier is a III at the end...hmm, wonder if his dad was ever stranded on a dessert island with his mom, the Skipper, A movie star, a professor Maryann and Gilligan?

Originally posted by @Allison Karrels :

@Scott Hetherington - since you buy properties from people and not Home Union is there ever a possibility of seller financing?

In General, no, but there may be a few rare occasions where it could happen. We do have a new service HomeUnionLending.com that assists people with financing though.

Originally posted by @Scott Hetherington :
Originally posted by @Allison Karrels:

@Scott Hetherington - since you buy properties from people and not Home Union is there ever a possibility of seller financing?

In General, no, but there may be a few rare occasions where it could happen. We do have a new service HomeUnionLending.com that assists people with financing though.

 Scott what % down payment do you require if using the inhouse lending.  (I already have 4 rental property mortgages)

Originally posted by @Allison Karrels :
Originally posted by @Scott Hetherington:
Originally posted by @Allison Karrels:

@Scott Hetherington - since you buy properties from people and not Home Union is there ever a possibility of seller financing?

In General, no, but there may be a few rare occasions where it could happen. We do have a new service HomeUnionLending.com that assists people with financing though.

 Scott what % down payment do you require if using the inhouse lending.  (I already have 4 rental property mortgages)

The minimum is 20%, but we usually recommend 25% for better pricing. 

I contacted HU on behalf on an investor client.

They charge 3.5% of Purchase Price to Buyer for identifying Investment and One years properfty Management Fee in Advance at the time f closing.

these are apart from the Fees collected from sellers.

I do not get 3.5% of Purchase Price. Seems too high and no other turn key provides charges.  

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