Trustworthy Real Estate Investing Facts
How HomeVestors Supports Ethical Business Practices
One of the greatest things about investing in real estate is that you can do it without a college degree or state license. Without an established track to follow, though, many new investors don’t know how to get started. It can be difficult to find reputable and ethical real estate investment training that provides results without costing an arm and a leg. Many new real estate investors have questions about financing, lead generation, and property valuation, for example, but don’t have anyone to turn to for advice.
Let’s answer some of these most frequently asked questions with trustworthy real estate investing facts from HomeVestors®.
Trustworthy Real Estate Investing Facts: How HomeVestors Supports Ethical Business Practices
First, you may be wondering who HomeVestors® is and what makes us qualified to answer your real estate investing questions.
HomeVestors is a network of around 1,150 independently owned and operated real estate investment franchises across 47 states. Under our nationally recognized “We Buy Ugly Houses®” marketing brand, we have been the number one cash buyer of houses in the United States since 1996. To learn more about our history, check out our About Us page.
At HomeVestors, we believe in supporting ethical business practices by providing trustworthy real estate investing facts. Here are some of our most frequently asked questions about real estate investing.
FAQ: How Do I Learn to Invest in Real Estate?
There are a lot of different ways to learn about real estate investing, including:
- YouTube Videos
- Training Courses
- Joining a Franchise
YouTube videos and podcasts are generally free, so many new investors turn to them first. However, the old adage of “you get what you pay for” rings true here. Some videos will provide practical and helpful advice, but you’ll have to weed out the garbage to find them. Anyone can upload a video or podcast and claim to be a real estate investment guru, so you may not get the most reliable advice this way.
Training courses and seminars cost more money but usually offer a much more comprehensive training experience. However, you still need to watch out for scammers pretending to be real estate investing gurus. Before shelling out hundreds or thousands of dollars on a training program, you should do your own independent research to make sure it’s legitimate.
One of the best ways to access quality real estate investment training from proven experts is by joining a franchise like HomeVestors. All new HomeVestors® franchisees get comprehensive real estate investment training on how to buy, rehab, and sell distressed properties. HomeVestors also has a track record of proven success—even though most new franchisees join with no prior real estate investing experience, our nationwide network of over 1,150 independent franchises have gone on to purchase more than 110,000 homes since 1996.
HomeVestors provides some of the best real estate investment training in the industry because we want our franchises to become the best investors in the industry. Are you ready to learn everything you need to know about real estate investing? Contact HomeVestors® today!
FAQ: Should I Join a Real Estate Investing Mentorship Program?
Another option for learning the ropes is a real estate investing mentorship program. Mentors typically offer more one-on-one guidance than you’d get through a training class or seminar. You can ask them specific questions about starting your business or ask for advice on sealing a deal, for example.
Real estate investing mentorship programs tend to cost more money than seminars, and there are a lot of them to choose from. They’ll all promise the same fantastic results, so you’ll need to carefully compare real estate investing coaching programs to determine which one—if any—is right for you.
Or, you could save yourself some time, money, and frustration by joining HomeVestors as an independent franchisee. As a new member, you’ll be assigned a personal Development Agent—an established local real estate investor who will act as your coach and mentor as you start your business. Your Development Agent can help you:
- Develop practical skills and local industry experience
- Communicate more effectively with home buyers and home sellers
- Find reputable contractors and other local vendors
- Market and sell your properties
FAQ: How Do I Finance My Real Estate Investments?
You may not have enough liquid capital to purchase a real estate investment outright. That’s ok! You have several options for real estate investment financing, including:
- Home Equity Line of Credit (HELOC): If you already own a property, you can take out a line of credit against your equity. This option offers some flexibility because you can use the money however you want. However, you’re putting up an existing property (maybe even your personal home) as collateral, which is always risky.
- Traditional Loans: Some investors use traditional loans from their bank to finance their real estate investments, such as FHA 203(k) loans and Fannie Mae HomeStyle loans. These loans are specifically for purchasing and renovating homes, so you can’t use the funds for any other purpose, but you don’t need to put up any collateral for the loan—you just need to meet minimum income and credit score requirements. Traditional loans can also take a while to disburse funds, which might limit your ability to quickly purchase and sell properties.
- Hard Money Loans: A hard money loan is provided by a private lender and uses the value of the property you’re purchasing as security for your loan. You generally don’t need to meet any minimum income or credit requirements, and you can get the money fast, sometimes within just a few days of applying. The downside is that interest rates tend to be quite high compared to traditional loans, though hard money loans are for a much shorter term (anywhere from 6-18 months).
Hard money loans are favored by many real estate investors because they’re short-term and you can get the money fast. The easiest way to compare hard money lenders, find the best terms and rates for you, and get approval for quick financing is by becoming a HomeVestors® franchisee.
With HomeVestors’ UGVilleSM proprietary lending portal, you’ll get matched with reputable hard money lenders who are excited to fund your investments. You can easily compare terms and conditions for every loan on offer to ensure you make the right decision. Plus, with the backing of a nationally respected real estate investment franchise like HomeVestors, you’re more likely to get approved for hard money loans fast, so you can jump on the best deals before they’re gone.
FAQ: Where Can I Find Leads on Properties?
Leads are the lifeblood of any real estate business, and every veteran investor has their own tips and strategies for finding them. Some examples of common lead generation strategies include:
- Attending foreclosure auctions and trying to find deals on cheap, distressed properties
- Pounding the pavement and knocking on the doors of distressed homes
- Buying real estate lead lists of homeowners who may want to sell soon
- Browsing internet listings and social media
However, the best real estate investment leads are the ones that come to you, because that means the homeowner is motivated to sell and they’re already interested in working with you. And the best way to get quality real estate leads is by joining HomeVestors®.
As a HomeVestors independently owned and operated franchisee, you can put the nationally-known and trusted “We Buy Ugly Houses®” marketing campaign to work for your business. We use a variety of marketing and lead generation strategies such as:
- Billboard advertisements
- Television commercials
- Radio campaigns
- Direct mail
HomeVestors’ marketing and lead generation strategies have a proven track record of success. Ready to put the “We Buy Ugly Houses®” campaign to work for your real estate investment business? Request information about becoming a HomeVestors® independent franchisee today.
FAQ: How Can I Tell If a Property is a Good Investment?
To be a successful real estate investor, you need to be able to spot the diamonds in the rough without getting duped into buying a lump of coal. Over time, you’ll develop some instincts that will help you evaluate deals on the spot, but even veteran investors use property valuation tools to help. A property valuation tool will help you calculate numbers like:
Your cost basis: The amount of money you pay for the property (in cash or financing) as well as any taxes or liens you need to clear is the property’s cost basis. You want to keep your cost basis as low as possible while still conducting a fair and ethical real estate transaction.
The cost of repairs: This is an estimate of the cost to renovate the property.
Holding costs: This includes interest rates, utility payments, and other monthly expenses while you hold onto a property and make repairs.
Estimated after-repair value (ARV): This is an estimate of the property’s selling price after you’ve finished your renovations.
While there are a variety of property valuation tools on the market, most of them make you manually enter location-specific data such as the local cost of materials and labor for repairs. There’s one property valuation tool that can automatically estimate the cost of over 80 different repairs while adjusting for local rates on labor and materials—the ValueChek® real estate investment and valuation system available only to HomeVestors® franchisees.
ValueChek® can also help you set the best listing price for your newly renovated fix-and-flip by allowing you to compare similar homes in your area based on adjustable details like the number of bedrooms and bathrooms. Plus, you can do all this right from an app on your phone.
To learn more about how ValueChek® can help you buy and sell properties with greater confidence, contact HomeVestors® today.
Trustworthy Real Estate Investing Facts: How HomeVestors Supports Ethical Business Practices
At HomeVestors, we’re passionate about ethical real estate investing with honest transactions that leave both the buyer and seller feeling satisfied at the end of the deal. That’s why we provide all HomeVestors® independent franchisees with the training, tools, and support to help them achieve their real estate investment goals the right way.
Want more trustworthy real estate investing facts, or the one-on-one guidance of a Development Agent? Reach out to HomeVestors today to become an independently owned and operated real estate investment franchise.
Each franchise office is independently owned and operated.