Can be the start of lots of relationships, especially when you are buying.
What one will find with the HV franchisees, at least in this area, is that they are all struggling and could use a resource sounding board as much as most folks on this site… They will usually be glad to spend some time and share an idea or two that might make both some money…
Yes, you are correct, they are geared toward the deep discount, primarily because to their overhead, and can’t do some of the deals that a small investor could, for that same reason. They can be an excellent resource… IMO.
Posted by william on January 07, 2004 at 13:20:18:
Has anyone had any dealings with the Homevestors people? Saw lots of their billboards (?We buy ugly homes?) across the South, mostly in Texas, over the holidays. I haven?t seen them out West yet. What are they? Are they using R. LeGrands techniques?
There is much speculation in this chat from investors that have little or no experience with HomeVestors. ‘Struggling’ is the last word I would associate with the high majority of HomeVestors franchisees.
Also, it makes no sense that HomeVestors offices walk away from Lease Purchase and Wrap type of deals because our overhead is “too big” and focus only on deep discount deals.
Contact a local HomeVestors office and find out the truth. Do not rely on bandit sign investors that quite honestly have no way of knowing the power of the HomeVestors system.
Posted by jasonrei on January 08, 2004 at 22:53:00:
Most of the franchises in my area ask far more than I’m willing to pay. I did buy 2 houses from a franchise in December. Contracts were for $54k, cash, less than a week to close.
Also know of 2 franchises that spend around $20k per month on advertising. It’s very expensive. You can learn more about them at www.homevestors.com
How many folks bought a Subway franchise over the last 25 years, becasue they wanted their own business…? What you got when you bought a Subway store was a “hands-onJOB…” Now over time, if folks have hung in there, those stores have grown and developed into something more than they were 10 or 20 years ago…
Hamoevestors are about the RE equivilent of Subway’s are to restaurants… HV will bring someone in and teach them their system… and how to operate… I wouldn’t say what they teach them is much about RE, just how to follow their business model.
A franchisee puts up 40K or 45K in franchise fees and commits serious additional cash, maybe another 50K to 60K to having an office, advertising, etc… HV’s provides HM loans to their franchiees for purchases and fix-up costs… The equivilent of slapping meat on a bun… and in volume. HV’s franchises must do significant volume in order to hang around in the business… whoo.
I had met a few local folks, made some business relationships with them, actually bought several props that they assigned to me, since their overhead was too steep to do these decent deals, they simply assigned the deal for a few, and I bought the props… So cozy up to these HV’s franchisees, becasue if their is one thing they get, it is leads… Try going out to lunch wiht one of them… the friggin phone will ring every other bite of food… Not exactly what I would call a good way of conducting business. IMO.
>I had met a few local folks, made some business relationships with them, actually bought several props that
>they assigned to me, since their overhead was too steep to do these decent deals, they simply assigned the
>deal for a few, and I bought the props.
If I understand you correctly, they get lots of leads for deals that might work with sub2, owner financing or lease-option, but those potential deals don’t work for them because their business model is focused on all-cash, high-discount (40%+) deals?
>So cozy up to these HV’s franchisees, because if there is one thing they get, it is leads.
>Try going out to lunch with one of them… the friggin phone will ring every other bite of food.
Are these the guys putting up billboards and other high-cost advertising? I’ve always wondered who they were.
Sounds like a great source of leads. I’m trying to leave my Lone Wolf shell and become a Networker. Everybody says it’s more profitable.
Getting them to give you leads seems like a good way of doing business. They do the legwork, you (hopefully) profit.
220k to set up a wholesaling business? hahahaha in my market you’d have wholesale roughly 45-75 homes +/- to break even…
That’s even worse than I thought! Buy Ron Legrand’s wholesale retail course, and spend a little on marketing… you’ll be profitable on your first deal… sheesh.
Posted by Hank FL on January 08, 2004 at 24:07:35:
??? The only way that would be worth it to me is if the system they have is so good that after I set up everything, it would run w/out me on “autopilot” and I could take a vacation to Florida for 6 months out of the year and everything would be cool when I get back.
Wait a minute… I am in Florida.
Well New York then; NY and Rome.
But I’m think’n that when I get back, my office would be sparser than a shrimp platter after Warren Sapp with the munchies gets through with it.
I can hear the tumbleweeds bouncing over where my desk used to be now. And where the carpet used to be; a supoena tile would be laid out three inches thick.
200k in direct mail to likely suspects would be more up my alley.
Heck, half of that.
Half of half of that.
Half’a half’a half’a … well, you get the picture.
Hank
Or I guess I could take that money and buy a bunch of REOs. I’d turn it into 220k in no time.