Question about HomeUnion.

17 Replies

Hello all,
I'm wondering if someone here have ever used HomeUnion service to invest in real estate. It seems to be too good. Any comments? Thanks

Hi Albert,

I work for HomeUnion so won't really say much except to look up Jacob Elbe's posts about us here on Bigger Pockets.

I'm also available to meet or talk with you at any time. I live in the Bay Area and travel down to our headquarters in Irvine once a week, but would happy to meet with you in person at any time.

-S

@Albert F.

Both Charles and I share similar opinions on the value HomeUnion provides. In my opinion that value has decreased over time so I've been moving away from working with HomeUnion. If you have specific questions shoot me a pm and I'll do my best to answer them. 

Thanks,

Jacob

@Jacob Elbe

Wow, that's disheartening to know. I'd love to get your take on why our value to you has decreased. I'll PM you and please be entirely candid.

-S

@Albert F.

I had been talking with a sales rep from HomeUnion and was intent on purchasing through them after my first two discussions. My third discussion, however, turned me away from them for a few reasons outlined below. 

First, the sales rep strongly discouraged me from visiting the homes I would bid on in person. The sales rep acted like I was being unreasonable for thinking it was worthwhile to spend a $200 plane ticket to see a market's active homes. Their model is predicated on customers looking at houses like the stock market (completely hands off bidding on multiple homes within an investment category regardless of location). Investing $200 to become comfortable with $100K bids in an area should be a no brainer in my mind, but was not a justifiable request to the sales rep I spoke to.

Second, I was told that, if I were to fly down to one of their markets, I would need to pay extra to visit with one of their local agents and, again, the rep found this request to be unreasonable. I don't think it's unreasonable to want to discuss my investment bids with the rep to fully understand why, based on local knowledge, the house should be bid on.

Third (and you can probably tell I was losing trust in the company), the rep acted like I was once again being unreasonable for wanting to get an independent inspection. If I'm discouraged from visiting the house in person and/or speaking with a local rep to understand the "why" of the home, I at least need someone outside of Home Union to be the eyes of the purchase.

Ultimately, I got the sense that I wasn't the right client fit for Homeunion. I was looking for a trusted investment agent / property manager who would help me pinpoint great investment opportunities in a cash-flow positive market while leading the end-to-end purchase, rehab and management flow. While I get the sense that the business model is efficiently streamlined on their side, I'd like access to more transparency and expertise (to justify the data) to bite on my side. Otherwise, I see more value in other turnkey companies that provide a closer connection to the home you are purchasing and provide a deeper local knowledge.

I'll keep an eye on their business to see how they adjust. With a few minor changes to the company's business model, I'd be very interested in working with the company for a rental in the future.

I hope this helps you or anyone else interested in HomeUnion. I'm happy to update this thread if things change and I end up investing in HU.

Mike

Originally posted by @Albert F. :

Hello all,
I'm wondering if someone here have ever used HomeUnion service to invest in real estate. It seems to be too good. Any comments? Thanks

 I purchased my first investment through them 6 months ago and they are still managing it for me.  For my next 3-4 investments I also moved away.  You can PM me for details.  The biggest factor for me really was there new 3.5% acquisition fee for acquiring any new investment property through them.  I just could not ever justify a 3.5% fee for investment purposes.

Hi @Michael S. :

@Albert F.

Full disclosure. I work for HomeUnion which is why I'm very concerned about your experience with the company. While we believe that it's not necessary for our clients to visit the properties, we never discourage it nor should we "charge" for it. I'd love to dig into your case to see what happened to make sure it doesn't happen again in the future. To make sure I keep your info private, I'll send you a connection request so I can dig in a bit deeper.

-Scott

@Michael S.

You hit on a good point. I have not heard of anyone having the same issue you did as far as asking you to pay for a visit but I can tell you that in my mind many i dealt with were still more used to dealing with homebuyers. HU at least at that time used mostly agents and its tough to find an agent that would stay with you through 40 or 50 properties it can take to find a good deal unless they are more investor focused and are used to it. Ultimately I did not find that with HU. 

Hi all,

Anyone know who HomeUnion's competitors are?  Are there any other companies like this one in terms of breadth and reach?

Thanks,

L.

@Linda D.

I'm fairly new to this, but I've been listening to Jason Hartman's podcasts. I would expect that his company is a direct competitor to HU even though their business models seem to be very different.

Originally posted by @Brad Morgan :

@Linda D.

I'm fairly new to this, but I've been listening to Jason Hartman's podcasts. I would expect that his company is a direct competitor to HU even though their business models seem to be very different.

Hi Brad, I've been to one of Jason's seminars and can tell you, their business model isn't anything like ours at HomeUnion...unless they changed their model in the last year.

@Account Closed

I would love more information highlighting the similarities and differences between the two from an investor's perspective. My understanding is that HU is much more passive, hence the fees, while Jason Hartman's network is more about connecting you to properties and helping you through the process while you do it yourself. If deciding between the two, one would have to decide how involved they want to be with their investment and understand that their returns will likely be impacted by that decision.

Again, I'm new to this, so please fill in the gaps and correct me if I'm wrong. Thanks!

(I wanted to tag @Jason Hartman as well since I've seen him on this forum but can't figure the tagging out...)

I highly recommend being a direct investor so you own and control your investments/properties. 

Originally posted by @Brad Morgan :

@Scott Hetherington

I would love more information highlighting the similarities and differences between the two from an investor's perspective. My understanding is that HU is much more passive, hence the fees, while Jason Hartman's network is more about connecting you to properties and helping you through the process while you do it yourself. If deciding between the two, one would have to decide how involved they want to be with their investment and understand that their returns will likely be impacted by that decision.

Again, I'm new to this, so please fill in the gaps and correct me if I'm wrong. Thanks!

(I wanted to tag @Jason Hartman as well since I've seen him on this forum but can't figure the tagging out...)

 For the most part you have it correctly. At the seminar, I went to there was some strange suggestions on financing that appeared to be a major part of their pitch that didn't sound right to me. That turned me off, so I never dug in further. Because I didn't dig in further, I can't say for sure whether it was good or bad. It just didn't work for me...as I said though, that was quite a while ago, before I joined HomeUnion...in fact, I found HomeUnion while I was doing that research and ended up joining the company because I loved the vision, a vision that is now a realty....but I digress...

For some, managing the property directly is the way to go. If you have the time and  live in or near the market in which you purchase your investment property, that is. You will make a nicer return. However, not investor has the time to manage their properties and not all markets have good cash flowing properties available, so investing remotely maybe the best option. This allows you to go about your daily life, "Be an investor, not a Landlord" and make a solid return. 

Hope that answers your questions. Let me know if you have any other questions.

-S

Originally posted by @Linda D. :

 
Anyone know who HomeUnion's competitors are?  Are there any other companies like this one in terms of breadth and reach?   

Linda / Brad -- There are a few, and you can find some of them here on BiggerPockets.  Although our company has a large "breadth and reach", we don't consider them to be competitors.  We actually get a good number of investors calling us after speaking with them. 

Continued success!

Brad Morgan -- forgot to tag you on my previous post.  :) 

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