Investor Franchises or Licensee

General Real Estate Investing
1

Hello Club,
I was wondering in you had any input on whether going the Real Estate Investor Franchise or Licensee route was the way to go. It seems that they would have a bigger part of market share due to the amount of advertising they do (strength in numbers).

I was looking into a few and don’t really know what to think. I have a few links of some of them below.

www.800rescue911.com
www.homevestors.com
www.1800noagent.com

Real Estate rescue and No agent are licensees (At least you won’t have to pay franchise fees)

Thanks for your input,
JOE

2

Joe,

In my opinion, this is just another example of someone trying to separate newbies from their money. You can do it yourself with a minimal advertising budget and keep more of the profit for yourself.

Mike

3

You can also partner with them instead of franchising. They are primarily wholesalers, though, so it will most likely only be worth it this way if you’re a rehabber.

4

I’ve had great success finding and partnering with other investors who have effective marketing programs running already. What I’ve discovered is that those who are better at marketing aren’t always the best at everything else. I can get a deal closed, a property rehabbed and rented (or sold) that many times the good marketers cannot.

I’ve met several investors at the various clubs, associations, and online communities that have spent a fortune on marketing programs and found them to be rather ineffective.

5

Hey,
What you need to do is something that separates you from the rest and allows you to stand out from all the other investors in your area. With these programs, it would seem to me that you would be in a cookie cutter mold with all the others. Unless you were the first in your area your marketing results probably would be pooled with the others and divied up according to how much you had into the program. Even in my small rural area everyone has the same ad saying the same thing. Figure out how to be unique and distinctive.
Peace,
Richard

6

rhm,
Not to split hairs, but I would add that you can be as unique as you want and never do a single deal. You have to offer a unique benefit to sellers. If you deal with our company you get “X”.

I’ve found there is no substitute for showing up on the front porch and talking face to face with them. Whether I sent a post card or not, I ask if they got mine. I know there’s a stack of postcards that all say the same thing on their table (or in their trash).

It’s the unspoken benefit: I’m here, I’m sincere, and I’m prepared to help you.

7

Hey,
Of course. One is unique if he offers personal service with benefits custom tailored to each particular individual’s needs.
My experience with most franchisees, etc. is they all advertise the same, sound the same and want the same 70% ARV. It would seem that one is not allowed freedom or creativity within the programs.
Peace,
Richard

8

Thanks All,
I appreciate the replies. I am new to the game but I have also been doing fine without a franchise. In fact I just founda single family that is about 65% below ARV I should be getting under contract in the next day or so. I like the price and location so much that I think I am moving in to this one.

Thanks,

Joe