HomeVestors® of America is a network of franchises that makes up the largest and longest-running, for-cash franchised homebuyer in the U.S. By Patty Horansky
HomeVestors® of America is a network of franchises that makes up the largest and longest-running, for-cash franchised homebuyer in the U.S.
The company’s We Buy Ugly Houses® billboards can be seen across the country and are a large part of the brand’s success. The company’s more than 1,100 franchises have purchased over 140,000 houses quickly and for cash since the brand’s founding in 1996.
According to CEO Larry Goodman, the brand has changed the face of real estate by filling a niche market.
“The residential real estate investment industry is very fragmented,” Goodman explained. “HomeVestors institutionalized this market of fix-and-flip investors who focus on properties that need significant repair in order to realize their full value.”
Goodman, who was named CEO this year, brings more than three decades of real estate experience to the brand, including 12 years as the COO of a national multi-family property management firm.
“The opportunity to help continue the growth of HomeVestors and be part of our franchisees’ success was very appealing to me,” said Goodman. “Most important though, I am passionate about positively impacting peoples’ lives, and the HomeVestors business fits that requirement. Every day our franchisees are focused on how they can assist a seller that may be in an ugly situation.”
People call HomeVestors not so much because of the state of their houses, but for personal reasons such as divorce, illness or inheritance.
“HomeVestors franchisees meet a unique and important need in the real estate market,” Goodman said, adding that they purchase homes that need repair or that aren’t suited for a traditional listing through a real estate broker.
There are no commissions, months-long listings or showings, and HomeVestors covers most closing costs. Franchisees earn money by renovating and selling or renting the properties.
“Most of our business actually helps create more affordable housing and addresses neighborhood blight by rehabilitating lower-priced houses that otherwise would fail the required inspection for a mortgage,” Goodman said.
New franchisees receive both virtual and live training at the brand’s headquarters in Dallas. They also receive robust, ongoing support and mentorship from a development agent in their area. No sales or real estate background is required, and owners can work from home.
The brand’s proprietary software helps franchisees to put a value on properties, make offers on the spot and close deals often, sometimes in as little as three weeks.
In addition to the iconic billboards, HomeVestors uses TV, direct mail, the internet and social media to attract homeowners who are looking to sell fast and as is. Its in-house ad agency lets franchisees pool their marketing dollars for a pro-rata share of leads.
HomeVestors also is unique because franchisees work as a team by reaching out, sharing advice and experience and even selling houses to one another.
The brand offers a 10% discount to veterans and, according to Goodman, many of its franchisees have served in the military, where discipline, focus and teamwork are instilled.
HomeVestors also is well-suited to millennials who are often community-minded, enjoy helping others, are good with technology and work well as a team.
The brand works in any economy because it is a needs-based business. It seeks franchisees who want to be their own boss, have an outgoing personality, are relationship-focused and have an entrepreneurial spirit.
Patty Horansky