Business Opportunities Weblog

September 10, 2004 by Dane Carlson | 2 Comments

→ homevestors.com

HomeVestors franchise owners are real estate investors who specialize in buying and selling houses as a business. Experts estimate that the market for undervalued real estate may be $10 billion per year in the United States alone.

Most investors who buy undervalued real estate focus on the distressed market that includes foreclosures and bankruptcies. There is a lot of competition in this market because every book and seminar on real estate investing uses the same strategies. HomeVestors has discovered that there is a much larger market of home sellers who are willing to take a substantial discount in exchange for a quick cash sale and the buyer takes the house in “as is” condition. In fact, their experience has shown that four to six percent of all sellers are willing to accept a deeply discounted offer.

To be successful as a full-time real estate investor, you must solve the pieces of the investing puzzle. The HomeVestors franchise system is designed to provide all of the necessary pieces so you can spend your time buying and selling property. You must consistently find properties to buy HomeVestors has a powerful house-buying lead generation program to get home sellers to call you. This system is centered on mass advertising that includes targeted direct mail pieces; television advertising, outdoor and Yellow Pages centering on the slogans, “We Buy Ugly Houses” and “”Ugly’s OK” — all designed to get home sellers to call you. You must be able to determine the repair costs and to make quick and accurate offers HomeVestors has a proprietary software program designed to determine market value, repair costs and a target purchase price. You must close quickly HomeVestors interim financing program finances up to 100% of the purchase price and funds loans to HomeVestors franchisees within days. The HomeVestors franchise owner notifies the HomeVestors mortgage department that they have purchased a house and faxes the report from the HomeVestors software “Buy Program”. Based on this information and a review by HomeVestors, the loan is approved and funded within days. (Franchise owners must be in good standing with HomeVestors. Other qualifications may apply). Houses must be sold quickly HomeVestors franchise owners use an owner-carried financed note to sell properties quickly. This program allows HomeVestors franchisees to offer owner financing to buyers who have small down payments or credit problems. This program dramatically increases the number of people who can qualify to purchase houses from HomeVestors franchisees. Since the HomeVestors franchise owner is the owner of the house and also the finance company, a decision can be made on the spot. Each franchise owner is connected to a credit agency to be able to qualify the buyers. HomeVestors provides a proprietary “grid system” to tell the HomeVestors franchise owner what interest rate and programs apply to each buyer. These “owner-carried notes” are then sold through the HomeVestors note program at a small discount.

In Biz Ops | 2 Comments