Is it WORTH it ? ? ?

We Buy Ugly Houses - HomeVestors.

This franchise costs $49,000. Than you have to pay a minimum of $5,000 per month towards the advertising pool.

In addition to that they require that you buy a minimum of 10 houses your first year, 20 houses your second year and 30 houses your third year. For each house you purchase you pay fees of approximately $1,000.

In return they give you leads, a nationally recogninzed brand name and training.

They also require that 1/2 of your deals come from your own self generated leads.

Does anybody have an opinion about this company? :-\

Holy cow!

$49,000 + $5000x12 + $1,000x10 = $119,000 (minimum)

… for just the 1st year?

I’m wondering what happens if you fail to meet thier “guidelines”?

They have minimum quotas. If you don’t reach the quotas you still owe the fees based on their quotas.

I have talked with a few of the franchise owners and they say that they make more money with HomeVestors than they did investing on their own. But I haven’t talked with the franchise owners that no longer own their franchise.

I still say it is not your market it is your Marketing!

If you spend 50k in Marketing a year you will do more deals then a Home Vesters Franchise.

How would you spend $50,000 for advertising?

Where do you feel the money is best spent?

I am thinking about having a 2 inch ad in the classified ads 7 days a week which says:

“Fast Cash for your House” or

“Cash in 7 days or less for your House”

Is it necessary to spend more than $50,000 a year for advertising?

Uh No 50k will do the trick hands down. Here is the thing I would seriously look into that I now do and the advertising cost’s is just about say zero dollars per year. I know from previous posts you have some capital coming in. BID AT AUCTION for the foreclosures 95% of 2nd mortgages never redeem at auction. Bid on properties with a huge 2nd mortgage. If they redeem you will make 21% interest on your money. If not you just bought the house with at least 20% in it. Offer seller financing on the 20% sell the homes FAST. Carry the note at 13.99% that was never your money. Do that 3 times a month the average note will pay $350.00 so times 3 that is $1,050 in your pocket. Do that for 10 months you now have $10,500.00 a month in cash flow. Plus notes that will equal out to over $1,080,000.00. Now that being said never run a boring ad in the paper. We always see

CASH FOR YOUR HOUSE!

WE BUY HOUSES!

Try this

NO seriously we really buy houses.

OR

GREEN Cash to lend on your property.

OR

IF YOU NEED OUT OF YOUR HOUSE I WANT IN!
GREEN CASH CALL NOW. (999)999-9999

Or even

CASH FOR YOUR HOUSE KEYS
CALL NOW (999)999-9999

How do you make 21% interest on your money if the 2nd mortgage holder redeems at the foreclosure auction?

Another question. What is going to give a higher return?

  1. $50,000 as a down payment on a distressed property

or,

  1. $50,000 trust deed at 13.99% interest.

Here in Colorado after the property goes to sale the owner has 75 days to redeem it. If they do not the 2nd mortgage has 10 days to redeem and payoff the first now if you bought the first and they pay you off there is a 21% rate attached to the price you paid that they have to pay in order to redeem

Now as far as the other 2 questions it is a toss up and depends on the deal. I carry notes do to the no rental headaches. On the other hand if you are fixing and flipping. By the time you hold the property on the market until it sells you could have carried a note and sold it in 2 weeks or less as there are many people out there that need owner carry Finance because they do not qualify for 100% on there own.

If I understand this correctly than you are stuck with a property that you can’t sell for 3 months.

Is that correct?

i dont know if it’s late - but this whole thread made my head swell.

are you for real with the original post?

50k to buy into a franchise in RE?

dude, that’s insane.

I mean, if i had say 1 to 5 MILLION in the bank - maybe…but even then, if i had 5 MILLION, i probably wouldn’t need to - just find a good Commercial Triple Net Lease and you’re done.

Forget We Buy…whatever

That’s insane.

That 49k is just the franchise fee. They still require you to have a minimum of 200k in loose cash to join the franchise.

Expenditures Estimated Amount or
Estimated Low-High Range
Initial Franchise Fee $49,000
Leasehold Improvements $0 - $5,000
Furniture, Fixtures and Equipment $6,000 - $10,200
Signage $2,000 - $4,200
First Month’s Rent $700 - $2,000
Security Deposit $700 - $2,000
Opening Supplies $1,700 - $1,950
Advertising $30,000 - $90,000
Training Expense * $3,600 - $5,000
Computer Equipment $5,000
Insurance $4,000 - $8,000
Miscellaneous Opening Costs $3,300 - $7,900
Purchase and Repair of Properties $62,000 - $129,000
Additional Funds** for 6 Months $32,200 - $40,000
TOTAL ESTIMATED INITIAL INVESTMENT $200,700 - $359,250

O.K. So far the concensus is that it is the HomeVestors franchise is not worth it.

That is exactly what I needed to know.

So, how do you spend your money on marketing your business?

Or what do you do to find sellers? :dance2: