thoughts? Any opinions or experiences with their system?
I know a couple of colleagues who both had homevestors franchises and they were not too happy with the results.
The biggest crux is that they had an exorbitant amount of marketing that was mandatory for them to spend per month. They were tired of taking every penny they earned and spending it on a highway billboard. They've both moved on and are still in the real estate business.
I know most of the franchisees in the Houston area and a few others around the country. Only 3 or 4 of them here in Houston were in business a couple of years ago and I'll bet the same guys are the only ones still in it a couple of years from now. The HomeVestors system is a great system for those who truly capitalize on it's benefits, but most franchisees don't. And it's especially good for those with deep pockets from the get-go. :) For most, though, the system is what they blame their eventual failed business on, instead of their own individual failures and mistakes.
Their advertising is effective but EXTREMELY expensive compared to what private investors like me spend on it. I get a lot of the same leads that they get and I haven't spent a dime on advertising in over 2 years. It's not what you spend on advertising, but how effectively you can market your business.
I would guess that most of the franchisees struggle early because they don't have enough basic knowledge of real estate investing. The learning curve in real estate is steep to begin with, but with the HV system, they have to learn all the rules and regulations of the franchise system as well. That amount of time learning the franchise rules and regulations should be spent learning how to make money in the business. This is why most franchisees fail, in my opinion. That and not listening to the advice of the successful franchisees, of course.
I can say all this because I have an inside knowledge of their system - I have worked as a "buyer" for 3 different franchisees and I have completed their training course on buying properties. I've seen what works and why it works, and also what could be eliminated and adapted to increase early success for franchisees.
The HV system is a great system for those who use it to the fullest extent. For most, though, I wonder why they spent the money on the franchise in the first place. A lot of the guys I've seen fail refused to listen to the successful franchisees, struggle miserably, and then wonder why their franchise failed.
The franchise model, overall, is a great business model. When it is combined with real estate, though, it's much more difficult to teach someone how to successfully build a real estate business than it is to teach someone how to make a proper sandwich.
When I started to franchise 'I Buy Houses, Ugly one too" back in 05... Only cost 80k... After a lot of consideration I felt that what an investor needed wasnt a name.. But a system on how to do it...
The cost to run a franchised business from the franchiser standpoint is extremely expensive and the only reason homevestors, in my opinion, must require their franchisees to advertise is to keep the name viable.. Over the franchisees viable...
They even took me to court over my trademark... It is amazing what levels business will go to to keep a buggy whip important...
You certainly do not need their franchise...
Happy house hunting
Franchising is not for everyone and HomeVestors will be the first to tell an interested party that. The key advantage HomeVestors offers is the brand and a network of others to work. The support system, coaching and mentoring is comprehensive and intense. The Associate Franchise Program gives you a full time regional Development Agent who works as your coach.
Could I get fries with that?
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I haven't used home vestors.I can tell you before jump in bed with any franchise you have to know the good,bad,and ugly.
Franchises make money off of the franchise fees and depending on the model a royalty of sale and mandatory advertising fees for national and local branding.
When I was in the restaurant business franchise companies run specials all the time on food.Why does corporate do this?? They do it because they make a royalty off of GROSS SALES.So they could give a rat's aS# if the business owner makes money as long as corporate gets a fat check based on volume of sales and maintains market share.
It's all about the NET after expenses.You will see franchise models all the time tout gross sales or someone selling a business.Gross sales doesn't mean jack.
If someone could do home vestors for 10,000 that's not nearly as bad as 80,000.
If you spent 5,000 on marketing yourself you would get just as good or much better results than dropping 10,000.If you want it in a nice little box you will pay for it.
I have only talked to one person involved in the Homevestor business and he fully regretted it. He wished he would have taken the money he spent on fees and put that money to use actually buying real estate. He told me that he did not do enough research before making his decision, and had he, he would have come to a different conclusion.
Any of the HomeVestors guys care to update us on how it's going?? I'm considering it.
I know this is an old thread, but anyone else have any experience since then? I've been talking to them for a few weeks, initially was not at all interested, but have become less hesitant each time I talk to them.
I fully understand the fees, and understand that I could start up my own "marketing machine" that would hopefully start to put out some leads after a while. I'm really wondering how valuable it would be to have that all done for me, pay my share of marketing (which I understand would be higher than doing it on my own), and immediately start sharing leads. There is no minimum, its just whatever portion of the marketing money you put in, you get a proportional share of the leads.
I'm only considering this due to the fact that several successful people in the Dallas area keep talking about how quickly the leads have been drying up. I know there will always be deals, and the successful people will keep at it, but do I want to come in as a complete novice and try to compete against these guys and learn how to market in a situation like that?
Whew, sorry so long!
Do a Google search and look at their Report Card ,,,Have they been good boys or bad boys?
Bad boys complain bitterly,,,,
Do they have testamonials from happy franchisees with Phone numbers and websites? Are they working phone numbers?
You get the picture,,,,
(Do ya'll want fries with that????]
Go slow ,take your time,,,glean knowledge,,,,check things out before you sign hard,,,,
I just bought a house from the Tulsa area Homevestor franchise. This is my first time to buy anything from a wholesaler. They seem happy with them and have numerous awards. They told me the franchise was expensive but worth it.
Looking into the franchise. I know a very successful Homevestor in the Milwaukee, WI area. I did two deals with them in the past and made 20k total from both. Both leads came from the Homevestor lead generating system. They were not interested in these inter city houses and they know I was so they called me because I had a business relationship with them. They only focus on highend flips and they get all their leads from Homevestors and they are doing 30 -40 deals/flips a year.
Hey there, I am a Realtor and yesterday while I was door knocking, I met a person that is also an agent and a Franchisee with the HV people, he said the method works but he does all the footwork, exactly what I was doing he said, he told me you need about $80,000.00 to start off and not expect results for about 8 months....and yes, like one of the comments above says you need A LOT OF CAPITAL RIGHT OFF THE BAT. He also told me that he was lucky cause his parents are the ones paying for everything. I do agree with Joel Owens and Michael Quarles, You only need a System and an aggressive Marketing plan as well as legwork to make it happen. hope that helps.
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