The 2019 Real Estate Investing Franchise Risk-Benefit Chart: All the Pros, Cons & Potential Problems

It’s called “decision paralysis.” It’s that damned-if-you-do, damned-if-you-don’t sinking feeling that keeps you from putting one foot in front of the other. You’ve seen it happen in scary movies where the soon-to-be victim freezes up when they hear a sound around the corner. You want to yell at them on the screen: “Move! RUN! DO SOMETHING!

You may be screaming that very thing to yourself inside when thinking about your current career. Maybe you’ve been considering a move to real estate investing. You just haven’t done it yet. Deciding whether or not to become a real estate investing franchisee doesn’t have to be immobilizing. Sure, some uneasiness in making any big transition is entirely natural, and some would-be investors have turned away from the possibility because of worry. But, you might be like the many others before you who have decided that it’s just the right fit for meeting your particular life goals.

To help you gain decision-making momentum, here’s a breakdown of some of the considerations involved in a real estate investing career as well as the risks and benefits of taking the next step toward owning a franchise.

What Does it Take to be a Real Estate Investing Franchisee?

Notebook with stats and charts

Initial Investment
Compared to other independently owned and operated franchise options (like McDonald’s, which can run you $1 million plus!) a real estate investing franchise is relatively affordable to ease into. Many people transition into an Associate Franchise which costs $30,000 for franchise support and proprietary tools. Then, as their business grows, they are positioned to buy a Full Franchise for $70,000.

Clean and minimal computer setup

Necessary Start-up Equipment
Whether it’s a restaurant or service-oriented business, most franchises require you to buy or rent a building, which can be difficult to find and get the necessary permits for, as well as branded signage and other marketing collateral. However, with a real estate investing franchise you only need a computer, mobile phone, and somewhere to work comfortably. In fact, most franchisees start out by working from home.

Resume with glasses on it

No Experience Needed
Buying a real estate investing franchise comes with the training and tools necessary to help make solid decisions and grow your business. In addition, you will be matched with an experienced mentor who knows your market. So, you’ll always have someone to turn to when questions arise.

Calendar planner with notes

Time-to-profit
In just a few weeks, you will have the training necessary to confidently help you make real estate investment decisions. The franchise’s lead generation program can provide you with investment leads. Then, you determine how quickly you can buy, rehab, and sell your first property.

Hand holding a pocket watch

Time Commitment
Part-time or full-time, it’s your choice. Many franchisees continue to work at their current jobs and invest in real estate on the side until their business starts to take off and requires their complete attention.

A calculator, pen, mouse, laptop, and a notepad

Potential Earnings
Earnings are only limited by how many hours there are in a day! Buy and sell as many houses as you please. Your earnings in real estate are not determined by whether or not your office is located on the right street corner.

Person sitting on top of a building

Associated Risk
Starting a new business can be anxiety-provoking. But, a real estate investment franchise provides a proven business strategy, a nationwide network of experienced franchisees, a personal mentor, and proprietary tools. This kind of support helps mitigate many of the risks associated with going into business for yourself.

Boy playing baseball

Work/Life Balance
Every new business owner works hard. But, with a real estate franchise, you will also be able to play hard too. Do you miss being able to go to the ballgame with the guys? Or, maybe you’ve been putting off having some quiet time with your spouse? What about just being able to help out your kids with their homework in the evenings? Your schedule can be yours to create.

Lady taking notes, man doing nothing

Day-to-day tasks
From following up on leads to evaluating properties and communicating with colleagues and homeowners alike, you will be busy but never bored! You will interact with people of all kinds of backgrounds, including construction professionals, real estate agents, homeowners, and other investors.

Man checking stats on his tablet

Marketing Competition
Each independently owned and operated real estate investing franchise collaborates with others regionally to promote opportunities for house-buying leads through branded advertising campaigns that are recognized nationwide.

A lone single dollar bill

Advertising Fees
Real estate franchisees choose how much they want to contribute to regional advertising campaigns and leads are distributed accordingly. More advertising money spent makes for more leads.

Man leaning against the wall waiting for his interview

Business Culture
Real estate investing franchisees tend to be a friendly bunch, with everyone working together to achieve a common goal: Improving our community one house at a time. They will be there to consult with you whenever you have a question, but otherwise you can build your own business culture. Want to dress casual? Or, take meetings at the local coffee shop? It’s up to you!

Audience clapping

Status and Recognition
Rehabbing distressed properties is a boon to ailing neighborhoods everywhere. You will be known for turning around declining property values and bringing life back into the local economy.  

Pros and Cons of Becoming a Real Estate Franchisee

Franchising Factors to Consider Pro Con
Initial Investment Dip your toes in an Associate Franchise to start and build from there.
Stepping away from a steady office job can cause anxiety.
Necessary Start-up Equipment Just a laptop, phone, and a comfy chair!
No company-provided car.
Experience Needed Solid training is provided.
You need to trust the system.
Time Commitment Completely flexible.
Work more to earn more.
Time to Payoff Just the time it takes to find a good deal and rehab it.
Slow decision-makers will take longer.
Potential Earnings Unlimited!
You have to put in the hard work.
Associated Risk Full support from a network of experienced investors.
You will deal with the single largest asset people own in their lifetime.
Day-to-day Tasks Every day will be different.
Time management skills are essential.
Work/ Life Balance You’ll have flexibility to coach your kid’s team!
Some days may be busier than others.
Marketing Competition Franchisees can collaborate on regional marketing campaigns.
Generated leads are distributed according to marketing dollars spent.
Advertising Fees Put in as much or as little as you want.
You get what you pay for.
Business Culture No suit and tie necessary.
You may have to be in your car more.
Social Opportunities Work with people from diverse trades.
No cubicle to duck into.
Job Security You can’t be fired or laid off.
No gold watches available.
Status & Recognition Be a community leader by participating in neighborhood revitalization efforts.
You have to put yourself out there.

Real Estate Investment Franchisees Gain Independence, Freedom, and More Financial Potential

Of course, your real estate investing business will have its twists and turns. You might make a few less-than-optimal decisions, like overspending on a home remodel. Perhaps, you’ll run into a no-good contractor who tries to nickel and dime you at every turn. Maybe one of your investment properties will sit on the market for an extra week or two. It goes without saying that starting a real estate franchise will challenge you in many new ways.

When you decide to start a real estate investing business, you’ll want to be sure to select a franchise model that provides solid support from the beginning. By the end of the initial training, you should feel more confident about your ability to make decisions on which properties to purchase and how to go about rehabbing with your return-on-investment in mind. Some seasoned HomeVestors® franchisees provide mentorship to help guide you through your business growth. If you have the aspiration and initiative to achieve more with a real estate investing franchise, buying a trusted national franchise brand is the right choice.

Each franchise office is independently owned and operated.

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