We Buy Ugly Houses is a...... Franchise?

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"We Buy Ugly Houses", or Homevestors, is a franchise that allows owners to build a real estate empire in their local area. Everyone in the USA has likely seen the caveman themed billboards and commercials and "We Buy Ugly Houses" spends around 50 million dollars a year on advertising.
And while the company is very well known, a lesser-known fact is that the "We Buy Ugly Houses" company, or Homevestors, is actually a low-cost franchise that helps franchise owners enter the Real Estate market buying Ugly Homes and building a local real estate empire. They are one of the top 3 fastest growing Franchises in the USA and currently have over 1000 franchisees across the nation.
One of the benefits of owning a franchise is brand recognition and market credibility. "We Buy Ugly Houses" has done an amazing job with that. The benefit to the home sellers who see this advertising is they can have a franchisee come to their home, which is often in disrepair, in rough shape, and receive cash money quickly. This is often in situations where people really need the money so as a franchisee you are helping people in your community.
As a franchisee, you are building a Real Estate Empire in your own local community, buying these ugly houses from distressed sellers. You can either hold these properties as a rental, flip the house for an immediate profit, or fix up the house and flip it. Homevestors has an appealing operational model that many owners like, it is a work from home business with a flexible lifestyle and a low investment. But there is an objection we almost always receive, and it is a valid question "why would I buy a franchise when I can just do Real Estate on my own. That's a great question, and part of what we do here is to help buyers understand the business models and market benefits of these franchises so they can make an educated decision based on facts rather than speculation.
Many of the franchise owners in the "We Buy Ugly Houses" franchise system were experienced investors before they purchased a franchise. These were people who were already successfully investing in Real Estate, but saw the benefits of the franchise and joined as a franchisee.
So what exactly are those benefits? As an independent you are always battling against everyone else for the same repos, REO'S, foreclosures, bank sales, you often have the same local investors chasing the same deals in the the community. This often results in having to pay a premium price or lose these sales. Obviously when you pay a premium price your profit margin is much less. We Buy Ugly Houses opens up a distinct market where you have zero competition, thousands of people call in based on their advertising every year and these calls are actually routed directly to you as a franchisee. By having access to this exclusive and very fertile market franchisees get much better deals, which of course results in higher profits. Also, "we buy ugly houses" is a household name, when you walk in to speak with the Homeowner you already have the instant credibility from hundreds of millions of dollars spent on advertising.
Next is the "We Buy Ugly Houses" software, called ValueChek that helps valuate the home right on site. By punching in data the software, based on thousands of situations, calculates what you should pay based on the repairs required, size of home, the area, and many other factors. Without this software, unless you are a highly experienced buyer, and sometimes even if you are, you run the risk of overpaying.
Next is financing. Because of the enormous amount of business they bring Homevestors receives preferential financing rates and franchisees benefit from up to 100% financing of properties. Obviously with any deals the finance rate has a huge impact on your bottom line, as does the ability to finance all of your acquisitions. As an independent you simply can't get these rates.
And finally productivity and buyer network. Many independent investors will cap out at 1-3 homes per month, Homevestors, because of their processes many franchisees are able to double the number of deals they are doing, which helps build your empire more quickly. Also, sales are very often done with other franchisees within the system, so you can do a quick flip, make money and get in and out quickly.
The franchise fee is $30,000, your total expected investment will vary depending on your market, so smaller markets your all-in investment might be about $60,000 - larger markets like New York would likely be closer to $250,000. We can help you determine what your investment would be.
Homevestors Franchise: https://www.franchise.city/homevestors-of-america
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