I worked very briefly for a Homevestors Franchise in Mobile, Alabama. I did not have a good experience. I know exactly how this company and franchise operates. Long story short, I smelled a rat, and got out. I can give you much more specific info if you would like it via email or phone.
I advise you to avoid Homevestors like the plague.
I know someone doing very well with the franchise so I think it might have to do with the personal background of the investor getting in to the deal. I would be interested in what you have to say.
I know someone doing very well with the franchise so I think it might have to do with the personal background of the investor getting in to the deal. I would be interested in what you have to say.
From what I can see, they used to buy, fix-up, & sell properties in the Phoenix area. However, their business model seems to have changed as they now send out emails listing homes they have under contract in attempt to assign them to other investors. (I receive some from a couple different franchisees) They carve out a small assignment fee of a few grand. I doubt that it works that well, but maybe I am wrong. I bet they are getting a barrage of leads right now with many motivated sellers looking to sell their homes to anyone.
A while back, I was set to purchase 6632 Slatewood in Charlotte NC. I'd post the link, but the site won't allow it, I see they've raised the price almost $10k. The LLC under the HomeVestors franchise the whole time were up front telling me that they never inspected or lived in the home. I signed the contract and got an inspector in the next day. The repair work was estimated at over $10k, including foundation work, so I used the escape clause that their contract had in it.
The LLC tried to persuade me to keep in the deal, as it was still a good deal, and it was already setup with a lease purchase tenant in place. The LLC also guaranteed a number of months rents and was going to hand me the substaintial non-refundable deposits from the tenant.
Ultimately I decided not to pursue the property. Feeling that there were just too many things I didn't quite understand and that unexpected $10k repair bill.
Someone should contact them and casually see if they mention the foundation repair estimates. Just you keep my name out this okay? Thanks Post the response here, no need to get ugly. Personally I'll bet they don't disclose, but I hope I'm wrong.
Currently I am persuing another HomeVestors deal in Atlanta, GA. I just closed this week, $13k worth of repair work I'm told has already been started and should take 3 weeks to finish (a list of necessary repairs was provided). I'm also told there are already a few buyers interested. For $500 out of pocket, I have purchased the property for $99k, there were $3k worth of fees on the hud 1, and a repair escrow of $13k was setup. All was included into a wrap around mortgage with a baloon due in 3 months. It should retail for $140k. But for a limited time, because I'm so nice, I'll give one Bigger Pockets member the opportunity to buy it now for just $139,900. Act quick supplies are limited. :)
My take on HV is that they are people. Some people have more strict ethics than others. As with any deal trust, but verify.
I don't usually check here, but I will try post updates for those interested.
4/5/08
Also let me know if you've worked with other operations or wholesalers.
Does HomeVestors buy the property from the seller outright or do they just lock up the property while they look for an end buyer, leaving them the option to back out of the deal if they don't find a buyer?
The two guys that own Homevestors in El Paso are very honest and ethical guys. They assign properties to investors when they get too many deals to rehab. I'm sure they cherry pick the best for themselves, but who wouldn't. From having looked at a few of their deals, they wholesale deals at 60-80% ARV. They even started El Paso's only REI club because there wasn't one existing. If there are other clubs in EP, they keep it on the down low because I've looked a lot.
Homevestors is a franchise, and one franchisee may operate very differently than another. Just like you'll have spit in your burger from one McDonald's, but not another.
It's impossible to make a general statement about Homevestors because each franchise is independently owned and operated. Each franchisee is unique and has a different way of doing business. Some franchisees like to fix and flip but in today's market most of them are wholesalers.
You need to understand clearly that whenever you do a deal with a Homevestors franchisee your working with someone who's trying to sell you something. Always do your own due diligence, comps and repair estimates. All Homevestor franchisees are good at generating leads (they have an excellent marketing template) but like most wholesalers they generally stink at any "after sale" service like helping with tenants, repairs etc. Once you buy a lead / deal from a Homevestor franchisee you're generally on your own.
My experience with Homevestors is that they're savvy, creative investors who prefer to work with new investors because they can dump deals on unsuspecting newbies.
I've had a few people ask me to keep them informed of my homevestors project. Its caused a few moments of unease, and its still a work in progress. Check it out at [LINK REMOVED]
To answer back to some posts. Yes I realize that there is a very low equity spread on this deal. But I wanted one with minor repairs, so I accept that the return would be low. I'd rather do one locally, but I live in California, and I think it would be very easy to lose a lot of money quickly in a rehab deal, especially here in California where everything seems to need a new foundation. This is my first rehab, I'm bound to make a few mistakes. The appeal of a HomeVestors deal in Georgia to me is my familiarity of the area, and for what its worth, I get the experience and mangement of HomeVestors. Sadly I realize that I won't get the hands on control, but I won't be getting calls about every little rehab issue and they are marketing to and qualifying the buyers.
When all is said and done, if my $500 investment nets me anywhere from $200 to the possible $20,000, I'll be stoked. To me its more a learning experience, hopefully I'll find it a good and profitable experience. If anyone else can offer me a similar turn key operation, I'd be willing to check it out.
Fortunately, and as someone indicated earlier, each office is independently owned and operated. Fortunately, the folks referenced in this post are no longer a part of the HomeVestors network.
This thread is one ofthe best orhestrated attempts I have seen here on BP, less than 24 collective posts between 8, count them 8 contributors. Two with less than 20.
Can anyone speak about the "mentorship" available at HomeVestors?
I recently read an article about them in Personal Real Estate Investor magazine and it made me curious. Is this just a ploy to sell franchises, or a part of the business model?
I'm very familiar with Homevestors and have done business with some of them. As someone mentioned each one of their offices are independently owned and operated. Per the owners there are pros and cons just like anything. Each franchise operates differently and has a different business model. The biggest reason for them buying in is the branding they get with the lead generation in particular.
I don't have anything bad to say about them -- just like anything or anyone just make sure you deal with someone that does good honest business, but each one will be different.
Katie -- I have never heard of a "mentorship" program. Perhaps it's something specific to that particular branch.
I am HomeVestors Franchise and will openly admit that I wouldn't be where I am today in my REI career if it wasn't for the quality of mentorship that I have received. I was lucky enough to get assigned to a mentor that is very active with his Associate Franchises and successful using the system.
If you're interested in a Franchise; I would contact HomeVestors corporate office and ask them who the mentor is in your area. I'd then set up a meeting to speak to that person face to face. I'm also willing to speak to anyone about my experience with HomeVestors (phone number in signature). I, like many others, was VERY skeptical about buying a franchise until I had completed the proper due diligence.
I'm very happy with my decision to buy a franchise. HomeVestors has a powerful and well recognized brand in my market (Dallas) and we have a huge marketing-arm that allows us to get in front of very motivated sellers.
Like others have posted: Each office is independent and there are very successful office and there are franchises that have failed. HomeVestors provides you with a system and you have to work the system to be successful. They do provide training, guidance, and mentorship.... but ultimately it is up to you to get deals done.
We tried them when it was time to sell mom's house and they offered $50,000, saying how they'd have to rip out everything. We put it on the market and it sold in a week for $150,000 as is.
They make me sick every time I see their ads and signs.
I hear you, Joe. What kills me are the mailings I get from investors offering to buy my house for a "fair price." Well, bull crap to that! Their idea of "fair" actually means as low as they think they can get the price. If the seller accepts, like you may have had you believed their **** and bull story about having to rip out everything, then they just scored. As a seller you just have to ignore their outright lies and marketing shenanigans and resist their attempts to buy low. It's all a game.
i called Home Vestors to sell my house because it has an open permit since 1999. I just bought the house a year ago. I dont want to deal with closing this windows permit. What a coincidence three days later after the kady from Home Vestor made me a ridiculous offer and tried to scared me with the city and loosing my house , the inspectors showed up at my house citing me for the same exact things she said . The worst thing is before she got to my door i thought about it. I had a feeling. I had a gut feeling and i didnt listen .
I have been with HomeVestors as a franchisee for past 5 years. I have rights to 2 regions (NH and MA). Not sure about the individual experience but its a lead generation system where we Zs pool up money to advertise our services. Just like any individual would do so in their neighborhood to solicit purchasing houses CASH AS IS. Nothing different just on a grand scale with professionalism. We Buy Ugly Houses is a brand name and very reputed. We deal with our customers ethically, professionally and honestly. I am very proud of over 4 dozen of my clients who I have helped, and they have been very happy and satisfied with my services.
Does HomeVestors buy the property from the seller outright or do they just lock up the property while they look for an end buyer, leaving them the option to back out of the deal if they don't find a buyer?
We buy the property (almost all of the time).. Wholesaling/Assignment is not a usual exit strategy.