Becoming a Real Estate Investor: Frequently Asked Questions
- How can I get started as a real estate investor?
- How much money do I need to get started in real estate investing?
- How do I find investment properties?
- How do I know that I’m paying a fair price for an investment property?
- What if I don’t want to do the rehab on a property?
- Will a HomeVestors® franchisee help me find financing?
- What types of residential properties do HomeVestors franchisees sell?
- Will I need to work with a real estate agent?
- Why should I pay HomeVestors thousands of dollars in (assignment) fees?
- Why not look for properties on my own?
Q. How can I get started as a real estate investor?
A. Getting started as a real estate investor takes planning, education, business acumen and an understanding of many related facets of the real estate business. HomeVestors has years of experience across a broad range of markets coupled with strong financial resources. We have the knowledge and experience in the business of finding and buying investment properties. HomeVestors franchisees buy hundreds of homes each month across the U.S. They look for local investors who are interested in purchasing inventory. Because we have a multi-million dollar advertising budget, you won’t have to spend your funds on advertising or on hiring individuals to track down investment properties. We’ll do it for you. Get in touch with your local HomeVestors franchisee. They can mentor you throughout your learning process.
Q. How much money do I need to get started in real estate investing?
A. Generally, depending upon your credit score, lenders require 10 percent of the purchase price of your prospective investment property as a down payment plus closing costs. You should also have reserve funds to cover repairs or rehabbing costs, utilities, insurance and taxes during your holding period. A HomeVestors franchisee can help guide you toward the complete answer by carefully analyzing your investment goals, your existing resources and other factors.
Q. How do I find investment properties?
A. Your initial goal as a real estate investor is to find and purchase properties as a discount. To accomplish this goal, you must spend an enormous amount of time driving neighborhoods, researching tax records, knocking on doors of strangers, conducting related research and a myriad of related activity before making a purchase, Or, you can contact a local HomeVestors franchisee who can use our brand strength to attract the best opportunities and guide you through the investment process. You’ll find that many of our franchisees act as mentors for first time investors.
Q. How do I know that I’m paying a fair price for an investment property?
A. While there are many sources of local market data, HomeVestors can help you obtain prices on comparable properties in your local market. Other sources of data include the Multiple Listing Service (MLS), local appraisal district data, Web sites that list homes for sale and many other sources. Savvy investors don’t overlook the value of using their own eyes and intuition. A drive through a targeted neighborhood can reveal a wealth of data including whether or not local properties are well-maintained, if the neighborhood is in transition, the prevalence of for sale or for rent signs or obvious neighborhood problems. Your HomeVestors representative can guide you during the property evaluation process. Look at it this way: If you pay a franchisee more for the house than they paid for it, you’ll still have saved the advertising costs, not to mention the cost of additional employees, travel expenses and other associated costs.
Q. What if I don’t want to do the rehab on a property?
A. HomeVestors franchisees may be able to help you identify qualified contractors who can help rehab your properties. Or, they may be able to sell you a rental-ready rehabbed property if that’s what you’re looking for.
Q. Will a HomeVestors® franchisee help me find financing?
A. In many cases, yes. HomeVestors franchisees work with many lenders and may be able to help you find the right one that will fit your financial needs.
Q. What types of residential properties do HomeVestors franchisees sell?
A. HomeVestors franchisees primarily sell single family detached homes, but we occasionally buy and sell condos, town homes, row houses and other 1-4 family dwellings.
Q. Will I need to work with a real estate agent?
A. The choice is up to you. If you choose to work with a real estate agent, HomeVestors will make every effort to accommodate your needs and those of your agent.
Q. Why should I pay HomeVestors thousands of dollars in (assignment) fees?
A. HomeVestors is America’s #1 wholesale home buyer and is a respected national brand that attracts home sellers by the tens of thousands. Our record of excellence in the buying and selling of investment-grade properties is second to none. We know how to identify prospective investments, how to appraise those properties and how to rehab them when necessary. We have a broad financial network and access to funding that spells savings for you in your quest for financial independence through real estate investing. Can you put a price on this level of comfort and credibility?
Q. Why not look for properties on my own?
A. We spend millions of dollar annually on local and national advertising. HomeVestors advertising attracts thousands of calls per month from sellers wanting to sell their properties. From those leads, we select only the houses that are most likely to produce the type of financial results that investors demand. Think of it this way: On average, for every 10-15 properties that a franchisee looks at, we put one house under contract. But even before we view a house, we conduct a complete market analysis on the house, perform hours of detailed internal research, drive through comparable neighborhoods and conduct a repair analysis and projection. Only then do we make an offer.
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 uniform franchise offering circular. 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.
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