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If you live for the thrill of finding residential real estate bargains (or you'd like to begin), there's no better time than now, and no better market, than the current real estate market!
And there's no company but HomeVestors of America, Inc. (HVA) to help you take advantage of a real estate market that's perfect for investors.
To expand our 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 career, here are some reasons why you might want to join our 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?
- How much capital do I need to qualify for a 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?
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 leads for our franchisees to acquire real estate bargains. Our franchisees currently invest more than $20-million annually in advertising, which produced more than 225,000 leads in 2007–that's a significant advantage our franchisees have over all the competition.
HomeVestors® of America, Inc. has been ranked among the prestigious Franchise 50 - 2007 Franchisee Satisfaction Awards™ by Franchise Business Review, a market research firm. The award honors franchisors that have the highest level of franchisee satisfaction. Nearly 300 companies competed for the award.
Q. How much is the initial franchise fee and what do I get for it?
A. The initial franchise fee is $49,500 (paid one time) and includes the following:
- HVA provides a comprehensive ten-day training program for new franchisees and offers a variety of additional training programs each year. The company also organizes a 2-day Mid-Year Summit and a 3-day Annual Convention, which provide training and networking opportunities.
- Franchisees benefit from world-class support, not only for them, but their associates, too, including buyers, coordinators, and administrative personnel. Each franchisee is assigned a coach who meets with them weekly for consultations by telephone. Field support is also available when a franchisee needs an experienced trainer to work with them in their market.
- HVA's proven system for residential real estate investors is comprehensive and dynamic . . . franchisees rely on it to find, buy, and sell properties. Most people would be afraid to invest in dozens of properties annually, but the HVA operating system reduces that fear for our franchisees, helping them collectively buy approximately 7,000 houses annually.
- We offer financing to our franchisees for buying and rehabbing houses. Last year we loaned more than $160-million to our franchise network! Before we loan money to buy a property, we evaluate that property through our exclusive Second Eyes® division, which builds in a comfort level for our franchisees by utilizing trained professional property evaluators to provide a "second set of eyes" prior to buying a house.
- Proprietary software for property evaluations.
- National vendor relationships with companies such as Whirlpool, The Home Depot, ICI Paints and Bank of America, providing economy of sale 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. Unlike most franchise businesses, HVA franchisees do not pay ongoing royalty or payments based on sales revenues. Franchisees pay a monthly fee of $997 and a transaction fee of $775 for each house they purchase. There is a $250 marketing fund fee per property purchased which is used to develop new advertising campaigns. These fees are addressed in the company's Franchise Disclosure Document (FDD).
Franchisees are required to invest $5,000 monthly in local advertising. Most 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 HVA. 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 an HVA franchisee.
Q. How do HVA franchisees make money?
A. There are numerous ways:
- Wholesaling/Assigning houses to other investors
- Rehabbing and retailing properties 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 with HVA. Franchisees will frequently discuss earning opportunities with prospective franchisees.
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. Franchisees operate a territory designated by their franchise agreement. For multiple franchisees in a metro area, all franchisees operate in the same territory. Franchisees can purchase houses in any territory, but they may only advertise in their assigned territory.
Q. How many franchises will you sell in a market?
A. Franchise sales are based on general population figures. The general rule is one franchise for each 200,000 population in a particular territory.
Q. Can I be a passive owner/investor of a franchise?
A. HVA has found that most of our successful franchisees are highly motivated individuals who contribute 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.
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. How much capital do I need to qualify for a franchise?
A. Candidates should have approximately $250,000 or more in cash, lines of credit, or other finances that can be converted to cash and used in the HomeVestors business. This is an estimated initial investment that is detailed in our Franchise Disclosure Document (FDD).
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. As an HVA franchisee, you will develop a business that's designed to satisfy your personal desires as a business owner. With the help of one of HVA's Franchise Systems Managers who will consult with you weekly, you will create your own business and marketing plans. You will determine where you should locate your office, how many staff to hire, how many houses to buy annually, how many houses to sell to investors or to consumers, and how many houses to hold in your own rental portfolio, if any.
With the help of HVA, you will make decisions about how to market your business to consumers, investors and vendors, including banks, title companies, contractors, etc. You will be the chief strategist for your business and–again with HVA's assistance–you will oversee the implementation of your business and marketing plans.
Our franchisees work from offices that may be located in strip centers, executive office suites, or stand-alone buildings, including old houses converted to offices. Franchisees typically employ three to eight people including coordinators, buyers, dig lead locators, sales representatives, etc. Many of these individuals may be independent contractors who are paid on a commission basis. HVA helps you recruit your staff and also provides training for your staff!
Depending on your individual talents, you may spend most of your time managing your office, or you may prefer to go into the field to buy or sell properties. You may want to develop relationships with other investors, realtors, title companies, lenders, etc. As the franchisee, you determine your own work schedule.
As a franchisee, you'll want to spend time with other franchisees. If you open an office in a territory with existing franchisees, you will benefit as a member of the local HVA Advertising Council. Franchisees also have frequent opportunities to network with fellow franchisees at HVA-sponsored summits, conventions and other meetings, and of course, on the franchisee section of HomeVestors.com.
Q. What is the next step to learn more about HVA and the franchise opportunity?
We invite you to fill out a Request for Franchise Consideration on our Web site (www.homevestors.com) under Own A 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.
You will be invited to attend a Discovery Day at HVA corporate headquarters in Dallas, TX. During the full-day, you will learn about the support we provide in marketing, financing, operations and training at HVA. There is no fee to attend a Discovery Day.
Following Discovery Day, the final step in becoming an HVA franchisee is to complete a franchise application.
Once you become a franchisee, we will assign you a Franchise Systems Manager (FSM). The FSM will provide coaching and ongoing training and guidance. Your assigned FSM will help mentor you from the opening of your office through your first-year anniversary and beyond. Continued support from your FSM 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.
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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