Oct. 16, 2006 Edition

Why Aren't We Featured On "Flip This House?"

Franchisees often say the A&E reality TV show is 'perfect for us'
By John P. Hayes, Ph.D.

John P. Hayes, Ph.D.

"Why doesn't HomeVestors audition for A&E's Flip This House, the popular TV show about real estate investors? This show seems to be a perfect fit for a HomeVestors franchisee!"

We are certainly aware of the show and recently I was contacted by A&E about the next couple of seasons of Flip This House. I spoke to Josh Coffman, the producer of the program. He's looking for talent for the show's 2007 and 2008 seasons. He had recently discovered HomeVestors and he, too, thought we would be "perfect" for the program.

But are we perfect for a reality TV show of this type?

In one of the first episodes of Flip This House, an Atlanta investor ("the talent") gets into his car and says, "Let's go see if we can find an ugly house." When he gets to the house, the front door is locked. He looks into the camera and says that sometimes you have to take matters into your own hands. He then kicks open the door!

While kicking in a door may be good reality-type TV, it's not good for HomeVestors or the real estate investment industry to break laws and operate a business in this manner. I told Josh about that incident, and I also told him that I don't like A&E violating our trademark. How many Flip This House viewers do you think thought the Atlanta investor was "one of those 'ugly house' people?" I bet a lot of them did. They saw our billboard in their mind's eye, and when they saw this investor kick open a door and trespass, what conclusions did they come to about the "ugly house people" and real estate investors? What do you think Attorneys General and legislators thought when they saw that incident? This is the kind of incident that feeds into the hands of anti-investment lobbyists who are petitioning for laws that will make it more challenging to buy properties at a discount.

If you go to the Internet and read the recent blogs about Flip This House, you'll see references to the "Elvis-look-alike," this season's A&E investor "talent" in San Antonio. As Josh Coffman pointed out, this is the "talent" people love to hate. Again, this is good TV, but is it good for HomeVestors and our industry?

The goal of a television producer is to create good TV and high ratings to sell commercial time. Notice the emphasis on create. How much of what occurs on Flip This House, or any reality show, is real, and how much of it is contrived to create good TV? I'm sure you know the answer. How much of your work day would make good TV? Hard work doesn't count. Kicking in doors, family feuds, making grandiose earnings claims, insulting people (a realtor called the Atlanta investor "cheap"), belittling contractors . . . that makes good TV. The skill involved in rehabbing an ugly house is a secondary story line.

So here's the question I asked Josh Coffman: "Is good TV compatible with building a credible franchise company in the real estate investment industry?" His answer, as you and I would anticipate, was no. I also asked him if A&E would give HomeVestors veto power over the show's content should we decide to work together. Again, the answer was no.

As the show's producer, that's exactly what he should have said if he wants to protect his highly rated show. He's not in the ratings business to help HomeVestors. He's trying to create a buzz about the show to sell to advertisers.

Some other points to consider from a franchisee's point of view include the commitment of time to a project like this. A&E's production schedule is rigorous. It's difficult enough to build a HomeVestors franchise business. Could you also do it and devote 10 to 16 weeks in production with a camera crew? It's a major distraction. It's impossible to buy and sell houses when you're "on location" re-shooting scene after scene until the director is satisfied with your performance.

And no, they don't want a different franchisee for each show, so franchisees cannot share the production duties. Part of creating good TV is building a personality that audiences will follow.

When the late Ken D'Angelo asked me to succeed him as CEO of HomeVestors, he asked me to "protect the legacy of HomeVestors while continuing to build the company." I promised that I would. I don't think Ken's legacy can be protected on this type of a reality TV show. Perhaps if circumstances change there may be a way for HomeVestors to get involved with A&E, or possibly another show about real estate investing.

But for now, Josh Coffman and I agreed to stay in touch.  

Buying 25,000 Houses Gets Attention!

Atlanta franchise helps HVA reach another milestone
By Gregg Stengel

Greg and Diane Justice of MJS Holdings in Atlanta in front of HomeVestors' 25,000th house!

On September 19, HomeVestors added another first to its remarkable progression as the leader in the house buying industry with the purchase of the franchise network's 25,000th house. The milestone purchase was made in Atlanta by MJS Holdings, owned by Greg and Diane Justice.

HomeVestors' PR agency, BizCom Associates, jumped into action and interviewed and gathered photos of the Justices plus other quotes for the press release. While the opportunity to promote HomeVestors and its franchisees to media outlets was important, it was also a great way to tell our positive story to potential customers and politicians.

"What a great accomplishment for our franchise network, and how exciting for HomeVestors of America," said John Hayes, president and CEO of HomeVestors. "In the last 10 years, our franchisees have changed the landscape of residential real estate buying, transforming neighborhood eyesores into livable, nicely kept houses."

While it took 10 years to reach the 25,000th milestone, Hayes projects that the 50,000th house will be purchased within 3 years. "With our steady expansion, and better penetration of markets across the USA, we won't need 10 more years to buy another 25,000 houses," he said.

More information about the 25,000th purchase, and the Justices, will be included in this year's annual convention.

Click on these links to review the press release and photos:

Yahoo Finance
Business Wire

. . .Gregg Stengel is the marketing publications manager for HomeVestors.