HomeVestors® Answers Your Frequently Asked Questions
Investing isn’t gambling.
You don’t make a gut call on black or red, slap down some money, and spin the wheel. That’s a good way to lose your shirt. Before you purchase an investment property, it’s important to ask a lot of questions and be sure you understand the answers.
What/Who is HomeVestors of America?
HomeVestorsⓇ is a network of around 800 independently owned franchises operating in 44 states. Under our nationally recognized “We Buy Ugly HousesⓇ” brand, we have been the number one cash buyer of houses in the United States since 1996. We specialize in purchasing homes from owners looking to sell their houses below market value due to issues ranging from needed repairs to mortgage troubles to a recent unaffordable inheritance. Then we repair and resell the property for a return on investment. For more of our history, check out our About Us page.
Among the most notable honors HomeVestors has achieved is being named on Entrepreneur Magazine’s “Franchise 500” list for an incredible five consecutive years. If you’d like to know more about our franchise program, click to visit our real estate franchise opportunity page.
What relationship does HomeVestors have with its franchisees?
Every HomeVestors franchise is independently owned. Our franchisees get the freedom of operating their own business, but also the support of a national network. HomeVestors offers our franchisees:
- Our initial comprehensive training course
- Regular supplemental training and mentorship
- Marketing rights to our “We Buy Ugly HousesⓇ” trademark, giving our franchise owners instant brand recognition within their communities
- Our proprietary software system for evaluating property
- Custom business and real estate valuation software
- Financing source accessibility for qualifying properties
- Beneficial relationships with national vendors
To learn more about the benefits our franchisees receive, check out our How It Works page.
What is your company history and how long have you been franchising?
HomeVestors of America incorporated and began franchising in 1996. Beginning in Dallas, we grew to Kansas City and Atlanta before reaching out to develop franchises in 44 states. Since our formation as an available real estate franchise, HomeVestorsⓇ franchisees have purchased over 75,000 houses across America.
What exactly is an ugly house?
All beautiful houses are alike. Every ugly house is ugly in its own way. A house can have an ugly appearance, ugly structural issues, or an ugly situation for the homeowners. Some examples are:
Houses with physical issues:
- A house in cosmetic condition ranging from unpleasant to hideous
- A house that is outdated and difficult to sell
- A house in need of extensive repairs a homeowner doesn’t want to make
- A house with serious structural problems, like a cracked foundation
Houses in poor locations:
- A house prone to weather damage, such as houses in floodplains
- A house in a high crime neighborhood
Houses that homeowners no longer desire:
- A house owned by someone who can’t afford it
- A house with bad memories for homeowners
- An inherited house the new owner can’t afford to keep
- A house where the homeowner no longer wants the responsibility of home ownership
- A house a landlord no longer wishes to own as a rental property
- A house where homeowners are in troublesome situations like the death of a loved one, divorce, job loss, debt or bankruptcy, relocation, the need to liquidate assets, facing foreclosure, retiring or downsizing, being behind on mortgage payments, or facing undesirable mortgage financing
What kinds of houses do HomeVestors franchisees buy?
HomeVestors franchisees mostly purchase single family homes. However, as our franchisees are independently owned and operated, they decide for themselves which properties they will invest in. The properties are generally those that need to be sold quickly or are in need of repair, and can include condos, townhouses, duplexes, multitenant buildings, and even a few commercial properties.
Whatever the property, we support our franchisees with training and resources to help them generate their return. For more on how our process achieves returns on our investments, check out our ROI on Home Flipping page.
Do HomeVestors franchisees buy houses at risk of foreclosure?
Some of our HomeVestorsⓇ franchisees buy houses in the foreclosure process. While this is possible, keep in mind the purchase of these homes usually requires the cooperation of the mortgage company. Negotiating with the bank can add months to the process, and sales may not always be approved.
How did the national foreclosure crisis affect HomeVestorsⓇ franchisees?
The majority of the homes HomeVestors franchisees purchase are valued below the median sales price common in their respective markets. On a national scale, this segment of housing was the least affected by the foreclosure crisis, because first-time home buyers consistently demand homes in this range. This reliable appetite provides a dependable opportunity for investors.
However, the tightening of available financing for selling homes did impact some franchisees. The recent real estate crisis reminds us that success in professional home buying is dependent upon solid business fundamentals more than on speculation. HomeVestors doesn’t play roulette, and that’s what makes us such an excellent franchise opportunity. As the housing market continues to recover, the HomeVestorsⓇ brand and support network provides a secure foundation for informed investing.
Looking For More Real Estate Franchise Answers?
These are just some of the most common questions we get. If you have a different question, or would like to discuss anything in more detail, we’d are happy to help. At HomeVestors, we’re happy to offer guidance and answer all your questions. If you can’t find the answer you’re looking for here, call us at 1-800-704-6992 or contact our team via email through our website contact form.
Each franchise office is independently owned and operated.