One thing that you can certainly get here, is an opinion…
HomeVestors has been thoroughly discussed here at length, and you may want to consult the archives, for a more expansive opinion… As you are probably aware, it is a franchise out of Dallas, Tx. The upfront costs are something in the range of 40K, with a financial committment to staff an office and do LOTS of advertising; like 3-5K per month worth. You will nee something in the range of 100K for marketing… They will help fund your rehab deals for about 12% interest… and will give you some knowledge of how to proceed with fixers, as part of your training. And my belief is you could make a decent living, equatable to that of a Subway franchisee, maybe 75 to 100K per year net… Their best results will exceed this and their worst will fall way short, IMHO. Of course these are only my perceptions and opinions of this operation, to defuse any liability for any error in these perceptions.
Now, lets assume that you were equally funded and you utilized this board as your main resource. You committed the same level of time and advertising and used HM sources that you can develop on your own. IMHO, you would be far better off than in comparison of the HomeVestor deal. If you make the same effort, armed with the knowledge that you can accumulate right here, you would attain the fruits of entrepenuerial labors, as opposed to be tied into the HomeVestor system, that could comparably be called a “JOB”.
Re: HomeVestors Franchise - Posted by KC Questions
Posted by KC Questions on August 01, 2002 at 03:34:55:
Funny you should mention Homevestors…
I was just talking to a good investor friend of mine who is in St. Louis and he was telling me how he was considering renting a billboard that said “We Buy Houses.” I told him that people would probably confuse him with Homevestors since their billboards say “We Buy Ugly Houses” and that he would probably get a better return on his money with the banditsigns we are currently using. He replied, “Who is Homevestors?”
I know they are all over KC but it looks like they haven’t made it to Saint Louis yet…
I have been reseaching homevestors and here is what I have found. 40,000 franchise fee, 6,000 computer program, $500. a month franchise fee, $795. fee per every property you buy, quota of 20 houses per year, up to I think 30 houses a year by the 3rd year. If you don’t make your quota you must pay the 795. anyway. Ive talked to franchisees in tulsa, okc, and witchita ks. The Tulsa franchisee gave his back because he got behind on his fees and was being pursued very aggressively by the corporate office. In Okc there are two franchisees. One is happy after the first year he did 20 houses. The second one is not so happy. The franchisee in witchita Ks is doing 60 houses a year and hopes to be doing 100 within the next year or so. Needless to say he is very happy w/ homevestors. All four of the franchisees I talked to were not using home vestors financing program (to expensive 16% and to hard to deal w/) They all either had investors or personal lines of credit. I was leaning towards buying one but I’m not sure if the name homevestors is worth 50k, and I don’t like all of the fees and quotas. Sorry so long, hope this info helped.
If I were thinking about purchasing a HomeVestors franchise (which I’m not), as part of my “due diligence”, I would contact as many current and former franchisees as possible and ask them the pros and cons of owning a HomeVestors franchise.
Since HomeVestors is a relatively new franchise, the list of former franchisees should be a fairly short list.