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How franchisee involvement can help
By Gregg Stengel The "F word." We all know what it means to HomeVestors: Flipping. But among politicians, attorneys general, the media, and some members of the general public, flipping is equated with another F word: Fraud. Real estate fraud is increasing, along with an equally sizeable increase in media coverage about homeowners who are scammed by real estate investors. How can our industry, and especially HomeVestors, avoid being associated with unscrupulous investors who make flipping into something illegal? Can we encourage the media in their investigative reporting to tell our side of the story? "We need to take action now," says HVA CEO John Hayes. "It's up to us to eradicate the one-sided media coverage of 'flipping' and the scam artists who pose as real estate investors." When Michigan lawmakers recently issued a press release that said flipping involves "purchasing property and artificially inflating its value through false appraisals," Hayes contacted Michigan media and explained that what the lawmakers described was not flipping, but fraud!  | | Mark Andresky | | He was then interviewed by the real estate editor of the Grand Rapids Press for an article that appeared on Sunday, July 23. The article also quotes Grand Rapids, MI franchisee Mark Andresky, Charlevoix Property Investments. Hayes explained that while he supports a proposed Michigan bill to crack down on real estate fraud, he said that people need to know there's nothing illegal about buying a house in an ugly situation, repairing it and quickly reselling it at a fair price. Hayes plans to continue his campaign to inform consumers, media and politicians about HomeVestors' side of the story . . . rebuilding neighborhoods while operating ethically. "We have a business model that serves the investor and the neighborhood. While I don't like the word 'flipping,' rehabbing a house and selling it for a profit is not against the law as some in the media and legislatures would have you believe. If we don't take steps now to inform the public that what we do is not fraudulent, then we will have to suffer serious consequences because some of this legislation is going to be damaging," Hayes said. According to Hayes, there is a great opportunity for franchisees to become involved in helping tell the HomeVestors side of the story. "We need all franchisees to take an active role with us and NARHRI to help spot potential legislation not favorable to our industry. If a franchisee sees or hears something about pending legislation or fraudulent real estate activity, let us know about it. Write letters to the editor, anything that lobbies for positive coverage. Our PR firm stands ready to help us. Let's tell our side of the story. We'd like franchisees to talk about the positives they are doing in their city and to particular neighborhoods to rebuild and rehab." HomeVestors is in the process of completing a credibility magazine that will help inform politicians and media that HomeVestors is a stable and reputable house buying company celebrating its 10th anniversary. To read the Grand Rapids Press article, click on the In The News link (under About Us) at HomeVestors.com. . . . Gregg Stengel is the marketing publications manager for HomeVestors. He may be reached at 972-761-0046, ext. 189.
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