Looking to see if there are any homevestor franchisees in the saint paul minnesota market who would be willing to share their experience?
Hi Rashad, not in MN but happy to chat if you’d like.
Looked into one towards the last crisis (someone looking to sell) and didn't do the deal. Haven't looked since, but I'm not really sure what you would get out of the deal. Many people folded at the last crisis and homevestors was essentially non-existent for several years after the last crash. They have only really been advertising in MN the last year or so from what I saw since the market is hot again.
I'm not sure what you are looking to get out of it, but it seems like a waste of time/money for me. With all of the junk mail going to homeowners now, I'm not sure how many leads they really get
@Rashad K. as James mentioned, I have seen a few fold in our area but that was likely due to the prior recession and purchasing too many houses that did not have enough margin.
I believe the franchise fees have come down quite a bit, a lot of it is paying for a business plan and contacts. I would be curious to know how big the sales funnel has been the last few years... Ugh buys Ugly houses doesn't seem to be as strong of a brand as it used to be, as James mentioned I have seen a few billboards recently but otherwise I don't see much advertising in our market.
It wouldn't hurt to look into this, if you are looking in St. Paul I am hoping they don't have any/many other franchises in the area... That would put you fighting for deals. You may not find people in our market doing this but definitely talk to other franchisees before taking the jump.
I have a HomeVestors franchise in Greensboro, NC and I can't tell you how happy I am about it. My husband and I buy about 60 houses per year. If you want to be a full-time investor - or do at least 12 houses per year - HomeVestors is the best way to go.
Yes, a number of the franchisees failed out during the 2008-2010 downturn. The business was run quite differently then. At that time, $5000 per month was the minimum required advertising spend per month. Many couldn't keep that up when houses weren't selling. There is now no minimum. And there was no on-the-ground coach for the franchisees which there is now. And, HomeVestors used to push rehabbing and now the focus is on wholesaling - in and out quickly and for cash.
Some of the advantages of being a HomeVestors franchisee include: you have the Brand, “We Buy Ugly Houses” - the biggest lead generator in the US and a System to follow so you don’t have to “wing it” or figure things out on your own. Part of that system is having a Development Agent who’s looking over your shoulder to keep you on track and from making costly mistakes. You have a network of franchisees that spent $55 million last year in marketing and are projected to spend $70 million this year. Also, a Team of Franchisees that work together to help each other succeed.
There are over 900 franchises nationwide and the franchises have purchased over 85,000 houses. We have many franchisees who purchase over 100 houses per year. There is no slowing down with the brand or the growth.
Please fill free to reach out with more questions. I love to talk HomeVestors!
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