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To expand our franchise network across the USA, HVA continues to seek qualified franchisees to capitalize on the $10-billion home resale industry.
If you've considered real estate investing as a full-time or even a part-time career, here are some reasons why you might want to join our franchise network:
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- Who is HomeVestors?
- How much is the initial franchise fee and what do I get for it?
- Are there other fees?
- Do I need a real estate background to purchase a franchise?
- How do HVA franchisees make money?
- How much can I expect to earn?
- How long is the franchise agreement? Can I renew it?
- Do HVA franchisees have an exclusive territory?
- How many franchises will you sell in a market?
- Can I be a passive owner/investor of a franchise?
- Can I partner with someone else to launch the franchise?
- Will I have the opportunity to speak to existing franchisees?
- Do I have to work from an office and hire staff? What will I be doing on a daily basis?
- What is the next step to learn more about HVA and the franchise opportunity?
- What is a Development Agent (DA)?
- Who qualifies to be a Development Agent (DA)?
Q. Who is HomeVestors?
A. HomeVestors is America's #1 Home Buyer, instantly recognized across the USA as the "We Buy Ugly Houses®" company. Our strong brand awareness, together with our powerful marketing strategy, generates a steady stream of quality leads for our franchisees to acquire real estate bargains. Since 2000, our franchisees have invested more than $200-million in advertising, which produced more than 2 million leads–that's a significant advantage our franchisees have over all the competition.
HomeVestors® of America, Inc. has been ranked for the third consecutive year by the prestigious Franchise 50 - 2008 Franchisee Satisfaction Awards™ by Franchise Business Review, a market research firm. The award honors franchisors that have the highest level of franchisee satisfaction. Nearly 400 companies competed for the award.
Q. How much is the initial franchise fee and what do I get for it?
A. HomeVestors now offers two options for becoming a franchisee.
HomeVestors Franchise: Invest in a full-service HomeVestors franchise, which requires your full commitment, and the fee is $50,000, which includes all training, ongoing support (including a weekly coach), access to our entire franchise network at conventions and meetings, and a license to operate under the valuable "We Buy Ugly Houses®" trademark, which is instantly recognized by consumers across the USA and regarded as the most credible brand in our industry. Full-service franchisees spend a minimum of $3,000 monthly for lead generation, many operate from an office and build a team to help them maximize their business operation. Candidates must have a minimum of $50,000 liquid assets available, comprised of net worth in cash, marketable equity or debt securities, retirement funds, or real estate equity.
HomeVestors Associate Franchise: Take advantage of our NEW Associate Franchise program with a franchise fee of only $10,000. This program is targeted to individuals and investors who want to learn and grow with the business, and operate their franchise part-time and in many cases keep their current job. Associate franchisees receive all the same benefits of a full-service franchisee, plus they work closely with a local Development Agent (DA)–usually a full-service franchisee. Associate franchisees may participate in the lead generation, utilizing HomeVestors' valuable "We Buy Ugly Houses®" advertising campaign. Candidates must have a minimum of $50,000 liquid assets available, comprised of net worth in cash, marketable equity or debt securities, retirement funds, or real estate equity.
HomeVestors Franchisees and Associate Franchisees, benefit from the following:
- HomeVestors provides a comprehensive five-day training program for franchisees supplemented with additional training by the Development Agent. Additional training on a variety of topics is presented throughout the year and available to all franchisees. The company also organizes a Mid-Year Summit and an Annual Convention, which provide additional training and networking opportunities.
- HomeVestors provides world-class support for all franchisees as well as for their team members, including buyers, coordinators, and administrative personnel. Each franchisee is assigned a Development Agent who coaches them in the daily operations of their business.
- HomeVestors provides an operating system that has been tested, proven and successfully operated by franchisees in 35 states for the purpose of finding, buying, rehabbing, selling or holding residential real estate. The system is comprehensive and dynamic and the only one of its kind available to real estate investors.
- Proprietary software for property evaluations. Whether franchisees utilize HomeVestors' financing or other financing, all franchisees are trained to evaluate properties using our proprietary property evaluation system.
- National vendor relationships with companies such as Whirlpool, Lowes, ICI Paints and Bank of America, providing economy of scale savings for our franchisees.
- Complete set of Operations manuals detailing the various systems our franchisees use to build satisfying and profitable businesses.
- Use of the most recognized real estate investing brand in the world, "We Buy Ugly Houses®." It generates leads, attracts buyers and sellers, and stands for credibility!
Q. Are there other fees?
A. HomeVestors Franchisees: Pay a monthly membership fee of $300. Any month a Transaction Fee is paid, this monthly fee is waived. A Transaction Fee of 1% to 3% for each house they sell. There is a $250 Marketing Fund fee per property purchased–the Marketing Fund is used to develop new advertising campaigns and support the franchise network. All fees are addressed in the company's Franchise Disclosure Document (FDD).
HomeVestors full Franchisees are required to invest at least $3,000 monthly for local branding, advertising and lead generation. Many franchisees choose to invest even more.
Q. Do I need a real estate background to purchase a franchise?
A. You do not need any previous real estate training to join HomeVestors. Our franchisees come from all walks of life. Some were already real estate investors when they joined us, but most were not. They may have been business owners, engineers, sales executives, accountants, lawyers, teachers, policemen, etc. In all but a couple of states you do not need a license to buy houses as a HomeVestors franchisee.
Q. How do HVA franchisees make money?
A. There are numerous ways:
- Wholesaling/assigning houses to other investors
- Rehabbing and retailing houses to investors and consumers
- Buying and holding properties for rent
The mix of these exit strategies depends on each franchisee's goals and market dynamics.
Q. How much can I expect to earn?
A. Like most franchisors, HVA does not provide earnings claim information to prospective franchisees. Instead, we encourage you to conduct due diligence during the discovery process by contacting existing franchisees to discuss their experiences, financial and otherwise.
Q. How long is the franchise agreement? Can I renew it?
A. The HVA franchise agreement is for 5 years and it is renewable. There is no additional franchise fee at the time of renewal.
Q. Do HVA franchisees have an exclusive territory?
A. Except for small markets, which HVA may designate as Junior Markets, most other markets include multiple franchisees, which provides an advantage to the franchisees because they can pool their advertising dollars for greater branding, awareness and lead generation, plus they can support one another in the daily operations of their businesses. HomeVestors franchisees do not compete with each other. In markets where more than one franchise exists, the franchises work through an Advertising Council. Franchisees can purchase houses in any territory, but they may only advertise to purchase houses in their assigned territory.
Q. How many franchises will you sell in a market?
A. Currently, HomeVestors wants to achieve a minimum 20% market share (of houses sold at a discount) in each market where franchises exist. To reach that goal, most markets will need multiple franchisees.
Q. Can I be a passive owner/investor of a franchise?
A. HVA has found that our most successful full-service franchisees are highly motivated individuals who devote a significant part of their time and efforts to their business. Hands-on management is important to the effectiveness of the HVA business model. As an owner, you may, however, choose to have a passive or silent partner.
The HomeVestors Associate Franchise program is designed for individuals who want to work in the business part-time.
Q. Can I partner with someone else to launch the franchise?
A. Business partners are certainly welcome as part of your business, however, a partner must complete a confidential franchise application and provide personal financial statements. You may also add qualified partners at any time subject to HVA approval.
Q. Will I have the opportunity to speak to existing franchisees?
A. Once you have filled out a Request for Franchise Consideration and you qualify for a franchise, you will receive a Franchise Disclosure Document (FDD). The FDD includes a list of our franchisees, and we encourage you to contact them.
Q. Do I have to work from an office and hire staff? What will I be doing on a daily basis?
A. Though there is no requirement, many HomeVestors Franchisees open an office and build a team that may include buyers, sellers, and administrative help. Each franchisee is expected to develop a business plan with the assistance of their DA. The plan helps the franchisee determine how they will operate their business. We encourage franchisees to utilize their individual talents in the operation of their business. Some franchisees will prefer to spend most of their time managing their team, while others will want to spend their time buying and selling houses, or cultivating relationships with investors and lenders. It's up to you to decide what role you will play in your business, but HomeVestors helps you make those decisions through its training and support programs.
Q. What is the next step to learn more about HVA and the franchise opportunity?
A. We invite you to complete a Request for Franchise Consideration on our Web site (www.homevestors.com) under Own A Franchise, please click on whether you are interested in a HomeVestors Franchise or Associate Franchise. Completing a Request for Franchise Consideration does not obligate you in any way to buy the franchise, but it gives HVA an opportunity to consider your qualifications to become a franchisee. Once HVA receives your request, an HVA sales representative will review your application and then call you to discuss the franchise.
You will receive a Franchise Disclosure Document (FDD), which includes information about the HVA corporate staff, our business model, fees, and information about our franchise network. We encourage you to review the FDD and discuss any questions you may have with your sales consultant or at a Discovery Day, a free seminar that explains the HomeVestors franchise opportunity and introduces candidates to our personnel and services.
HomeVestors Associate Franchise candidates may attend a Discovery Day at HVA's corporate offices in Dallas, TX or in the offices of a Development Agent.
Following Discovery Day, the final step to becoming a HomeVestors franchisee is to complete a franchise application.
HomeVestors Franchisees will be assigned a Development Agent (DA). The DA will provide coaching and ongoing training and guidance. Your DA will help mentor you from the opening of your office through your first-year anniversary and beyond. Continued support from your DA is an essential part of your new franchise.
An HVA franchise requires energy, passion and commitment, and with our experience and proprietary systems paving the way, HVA is a great opportunity for you to build your own business.
We are proud of our history of developing successful relationships with our franchisees. We pledge that we will work closely with you to offer you the guidance and support that is crucial to the success of your HVA business.
Q. What is a Development Agent (DA)?
A. A Development Agent is a full-service HVA Franchise or former franchisee who is responsible for recruiting, training and supporting Franchisees. DAs receive part of the Franchisee's initial franchise fee and they share in the gross profits from sales of properties by the Franchisees in their network.
Q. Who qualifies to be a Development Agent (DA)?
A. Existing HVA franchisees who are in compliance with their franchise agreement and former franchisees who left the network in good standing are eligible to apply for the DA program. DA's need to have demonstrated the ability to buy and sell houses, and to work all aspects of the HVA model successfully. HVA anticipates that a franchisee needs at least six months of operating experience prior to applying for the DA program.
For Further Information Call: 1-888-701-3888
FAX: 972-761-9022
HomeVestors is a franchise. Each office is independently owned and operated. This is not a franchise offering. A Franchise offering can only be made by a Franchise Disclosure Document. All HomeVestors franchise programs are subject to change due to market conditions or availability of funds. Financing programs are not guaranteed by the franchise agreement.
In accordance with the Law, all property
is offered without respect to race, color, creed,
national origin, sex, familial status or disability.
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