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March 15, 2008 Edition |
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Use The HVA Brand To Build Your Business Top performers weigh in on why it's a great time to be a HVA franchisee
According to franchisees Eddie Gant, Mark Mattlage and Rickey Williams, now is when the value of the HomeVestors' brand is stronger than ever.
In recent months, despite media tales of doom and gloom in the housing market, these HVA top performers have experienced their most positive sales in years. So what separates these franchisees from others that are struggling? These franchisees have implemented processes and systems that suit the needs of their businesses and market.
January 2008 was one of Eddie Gant’s best months since joining HVA nine years ago. And February brought his highest revenue month ever!
"We have twenty-two pending sales right now," said Gant, whose Advantage House Buyers franchise is based in
The surge Gant’s business is experiencing can be attributed to last August when he completely revamped his system for selling houses. By creating an exclusive team of realtors that drives business and is devoted only to selling for him, Gant was able to move inventory faster.
"We use four guys that just sell for Advantage House Buyers," Gant explained. "They work strictly for me and aren’t allowed to work on a house or a deal that’s not ours."
To help generate leads for his sales team, Gant developed a successful yard signage program that he has since shared with the entire HVA franchise network. Signs that list total move-in as $500, $750, $1,000 or $2,000 are positioned in yards of his homes for sale, with directional arrows placed strategically off main streets to direct traffic to the homes. "Of the pending sales we have going on right now, two of those properties were sold from MLS, but the other twenty were a direct result of the new program," Gant explained enthusiastically. "Almost all of our sells are coming off the five hundred dollar move-in signs."
At the time the program was implemented, Gant was using two exclusive realtors. Now, just six months later, he has hired two more realtors to keep up with demand.
"My realtors work in direct competition with MLS and only get paid if they sell a house off a yard sign or print ad," he explained. "They know if they don’t move fast there is a chance the property could sell on MLS, and they won’t get the commission. So they are constantly driven to make calls and follow up."
According to Mark Mattlage of CalMat Properties in
"I’ve been a HomeVestors franchisee for eight years, and I’m a strong proponent when it comes to advertising our brand," said Mattlage. "Anyone who bought into this franchise was buying the brand. The only way to protect that is to support advertising. When people start to cut back on advertising that’s when we give our competition a chance to come in."
When Mattlage first became a franchisee, he faced the same initial struggles familiar to most new franchisees. In fact, it may have been worse for him because he nearly folded his business. It wasn't until he developed a strong Dig Lead program that everything turned around.
"Initially I thought we could be a retail shop and not wholesale, but that was going nowhere fast," Mattlage remembered. "On the advice of (HVA's late founder) Ken D’Angelo we got a Dig Lead program and that led to us buying thirty-one houses."
By 2004 his business was in the Top 10.
"Each year we’ve consistently moved up in our number of closings and last year we were number one," he said. "And that’s because we follow the system to a 'T' and we spend money on advertising to generate the calls."
To find out what systems worked best in his market, Mattlage took considerable time evaluating what avenues other than advertising were the best to find houses to generate business.
"At the time we identified nineteen ways to buy houses," he added. "Of course we don’t use them all, but we identified them and then we focused on the two or three that work best for our office and situation. The important thing to remember is those avenues are going to change. Because the market is constantly changing, they won’t stay the same. Just as the market and the market conditions change, you have to change your Dig Lead program to be successful. This business will never stay constant. It’s always changing and unpredictable."
According to Mattlage, if you’re not buying houses, you’re not selling houses.
"It all starts with the buy," he said. "You have to buy deep. We always use the BMS system. We look at what the BMS says and we stay with that number. If you buy a house over the BMS numbers you may lose money."
"It’s the perception of the market that is actually helping us," said Williams. "Everybody is paying attention to the media and they think it’s doom and gloom, and that is good for us."
Because of that perception, Williams said his company is buying homes today for 10 to 20 percent less than a year ago in the same neighborhoods.
"I think now is the best time to be a franchisee," he said. "And the next twelve to eighteen months will continue to be a great time to be a HVA franchise because we'll be able to buy deeper."
February was one of the best ever for Williams' company.
"We had a record month on gross profits and that’s specifically due to the ability to buy homes cheaper," he said.
WFI is taking advantage of the current market by expanding its rental portfolio.
"This year we have increased our rentals," said Williams. "Around fifty percent of our closings will go into our rental portfolio. In the past it’s been around twenty-five percent. And the reason we’re putting more into our rentals is because this is the best time to buy properties."
And because it is such a good time to buy properties, Williams says there has never been a better time to take advantage of the HomeVestors' brand.
"We're a gorilla," he said. "Throughout the
If the first three months of this year are any indication, 2008 will provide HVA franchisees with vast opportunities. It’s all about knowing how to take advantage of the market, how to buy deep and what works for your business.
… Leah Templeton is an account executive at BizCom Associates, HVA’s public relations agency. | ||||||||||||
A Call To Arms Join your fellow Investors on Capitol Hill to protect our industry
Among some of the proposals being floated about is legislation that would:
This is an opportunity for real estate investors to meet directly with members of the U.S. Senate and House of Representatives and HomeVestors is encouraging Team HVA to attend the event to support not only our brand, but the real estate industry. We need you there to represent your industry, your company, and your future! HomeVestors is sponsoring Day On The Hill, which is being organized by National REIA. You will meet as part of a small group face-to-face with congressional representatives on April 30. On the evening of April 29, in addition to networking with investors from across the nation, you will be briefed on pertinent issues to discuss the next day and receive training on how to speak with the congressional representatives. It's important for HomeVestors to be well represented at this event! As the only national brand for real estate investors, we need to carry the flag for our industry, and we need to take advantage of our notoriety. The congressional staffs aren't likely to know the independent investors, but they will know HomeVestors, the "We Buy Ugly Houses" company, and they'll expect to see that we're represented. Our very presence will create curiosity. Having already visited Capitol Hill to discuss our interests with legislators, I can tell you that they will be keenly interested in "the Ugly House people." National REIA is especially encouraging HomeVestors franchisees from across the country to participate. While many investors from northeastern states will likely register because of the proximity to the nation's capitol, we also need representation from across the USA. Networking and training for Day On The Hill, will occur on April 29 at The Westin Alexandria. The hotel may already be sold out, but there are other hotels in close proximity with some options below.
Please take advantage of this opportunity! . . . For more information, please contact Mark Hagen, 972.619.0096 or Gregg Stengel 972.532.8007 in the HomeVestors office. | ||||||||||||
Franchisee Profile: Randy Perez Rookie of the Year Randy Perez celebrates first year with HVA
When franchisee Randy Perez reached his one-year anniversary with HVA last month, he had good reason to celebrate. At the Annual Convention Perez was recognized as one of the Top Closers in a Junior Market (50 properties closed), and one of the Top Sellers in a Junior Market (30 properties).
It was no surprise that those accolades earned him the Rookie of the Year award. And although
"I really wanted that Rookie of the Year award," said Perez. "You only get one shot at it and it was an important one for me."
Last year Perez and his team at RP Investment Group bought 51 houses. This year their sights are set even higher -- 80. With a background in real estate investing, Perez joined HVA with an eye for this business.
"I was a part-time real estate investor for nine years and committed to real estate full time about two years ago," said Perez. "I’m a licensed contractor in
Perez realized that his strong rental portfolio would serve him well in a business like HomeVestors and purchased a franchise in late 2006.
"In anticipation of a revived market now is a great time to accumulate property," he said. "With the retail market hurting, we have focused on wholesaling with a secondary goal of accumulating rentals in owner occupied areas which we will remodel and hold until the market recovers."
Perez credits his success to hard work and a strong office support team which includes Debbie Rocha, Bobby Reynolds, Stephanie Sallee and others.
"I have a strong desire to help those around me succeed and become better people overall, not just better employees," he said. "These accomplishments also took determination and creating specific goals for the business."
Some of those goals came as a direct result of Perez’s involvement with the HVA MasterMind Group, a peer-to-peer networking program that helps franchisees learn from one another.
"When I read Napoleon Hill's book, Think and Grow Rich, it was the first time I had been introduced to the power of a mastermind," Perez said. "I decided when I read that book that if I ever had the opportunity to be a part of a mastermind group I would pursue it. I really like the idea of other successful franchisees from different backgrounds coming into my business and picking it apart. What I didn't realize at first, but what I discovered at our first meeting, was that I could also learn from discussing other franchises issues, challenges and successes."
Perez said he appreciates the value of being surrounded by positive, hard working and focused individuals that share a common bond.
"It’s comforting to have a group of individuals who have succeeded and failed and ultimately realized success in varying degrees," Perez added. "Then they unselfishly come to see you, and spend two days of their time and money just to help you out. To me, that demands that you be successful because you can't let these guys down! I now feel committed to the success of the members in our MasterMind group. Although I want all franchisees to do well, I especially want these guys to do well. There is a bond that I think develops over time when you discuss something as personal as the intimate details of your business. You can't help but develop a sort of bond that is beneficial to all involved."
. . . Leah Templeton is a writer with HomeVestor’s public relations agency BizCom Associates. | ||||||||||||
Theme Selected for 12th Annual Convention Team HVA's Jared Healer wins $100 American Express® gift card!
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Register Now To Jump Start Your Sales Mid-Year "Sales" Summit shines spotlight on how to sell properties
Spring is just around the corner and summer isn’t that far away, which means it is time to begin planning for the annual Mid-Year Summit. And this one will be an event like no other. Renamed the Mid-Year "Sales" Summit just for 2008, this year’s conference will consist of two days focused solely on sales and helping you move properties.
The deadline for event and hotel registration is May 14. After that date, space, hotel rooms and materials cannot be guaranteed. . . . Please note. The MYSS is scheduled for the same Marriott where it was held last year. It's a great hotel, conveniently located to restaurants, shopping and entertainment, all within walking distance. However, it's a busy hotel with limited space. Reserve early! | ||||||||||||
Franchise Development News A look at what’s happening in franchise development
Franchisee Referral Bonus Program in Full Swing
Webinars Accessible Every Tuesday Franchise prospects can learn about the HVA franchise opportunity by participating in a live franchise development Webinar. During these phone and Internet presentations, prospects learn about HomeVestors and interact with the franchise development team from the comfort of their homes or offices. They can ask questions via phone or e-mail, enjoying the same opportunity to interact with the team as they would have at a live seminar. Webinars are offered every Tuesday at 4 p.m. CST, and last from 40 to 50 minutes. For registration information, visit the "Own a Franchise" section of HomeVestors.com, and click on "Upcoming Events/Webinars." . . . Gregg Stengel is Development/Marketing Manager for HomeVestors. He can be reached at gregg.stengel@homevestors.com. | ||||||||||||
For more information, contact HomeVestors 10670 N. Central Expwy. Suite 700 Dallas, TX 75231 Telephone: 972-761-0046 Or visit http://www.HomeVestors.com. Copyright, 2010, HomeVestors of America, Inc. All rights reserved. |
We asked Team HVA for theme ideas for this year's convention, and the response was overwhelming. It was difficult to choose just one, but we ultimately selected the submission we felt embodies exactly what we want the 2008 Annual Convention to be about.