Posted by JohnBoy on January 25, 2001 at 23:24:59:
Oh geezzzzz! You mean you are still stuck with having to see and hear those commercials with the singing houses??? LOL
Man, by now you must be humming that tune out loud all day and not even realize it! LOL
I can see the headlines now. 50 people in KC go postal at local utility companies, but one particular man seemed to have other things bother him as he went postal on a company that runs commercials with singing houses. LOL
Homevestors franchises - Posted by Rob FL
Posted by Rob FL on January 25, 2001 at 20:15:08:
There is a company now that sells “We Buy Houses” franchises. They train you, do national advertising, etc. I’ve seen them in some trade magazines for a few years and even looked at their website: www.homevestors.com. Pretty cool. 35K is a little steep for beginners, but what they hey.
Anyway, about 2 weeks ago I noticed that they put up about 30 giant yellow billboards all over town that read “We Buy Ugly Houses”. Then last weekend I started seeing television commercials with the same theme.
Although I think the theme of “ugly houses” might be a turnoff to most sellers. (Most people don’t think they have an ugly house, even if they do. An ego thing.) But this seems like a possible threat to alot of smaller scale investors. I mean, there is no way small to medium-sized investors like myself can compete with that kind of advertising. Quite expensive to say the least.
I do realize that there are still plenty of deals out there. I just wanted to hear some people’s thoughts on this subject.
From what I understand… - Posted by David Alexander
Posted by David Alexander on January 27, 2001 at 22:31:15:
That’s all they do is supply the advertising to the franchisees.
They advertise get leads and then send them to their franchisees in whatever particular area.
David Alexander
$35k Gets Them Started… - Posted by Rick Wheat
Posted by Rick Wheat on January 27, 2001 at 05:47:48:
But it doesn’t usually include teaching them HOW to get the deals put together. Give me $35k worth of “Creative” Real Estate Education, and I bet I’d run circles around their advertising!
Oops, I almost forgot. I’ve already paid my $35k for the education, and I seem to be doing okay.
GOOD LUCK!!!
Rick Wheat
Re: I only charge 25k Need to up my rates! - Posted by Tim Jensen
Posted by Tim Jensen on January 26, 2001 at 14:57:48:
Re: Homevestors franchises - Posted by eric-fl
Posted by eric-fl on January 26, 2001 at 10:49:01:
In all reality, 35k is dirt cheap for a true franchise of any type. I suspect, from this, one of two things. a) It’s not really a franchise. To my mind, a true franchise offers a complete, detailed system for every aspect of a business (see the E-myth for details.) Also, it offers a protected territory to the purchaser, which I would guess in this case, we be a city, or at least a big chunk of it. I doubt homevestors is protecting their franchisees rights in this manor. or b) someone had a great idea and beat us all to it. Rather than sell books and tapes on how to do this, why not set up a franchise instead? It would take a whole lot of $500 tape course sales to beat out one 35k franchise deal.
Re: Homevestors franchises - Posted by Rob FL
Posted by Rob FL on January 26, 2001 at 08:00:19:
Thanks for the input on this subject. Quite enlightening.
I really just wanted to hear any comments people had about them. I’m not running scared or anything. Just very curious.
Re: Homevestors franchises - Posted by ScottE
Posted by ScottE on January 25, 2001 at 23:05:28:
Rob,
A local guy bought a HomeVestors franchise here (OKC area) about 2 years ago. Nice fella, but I called him on a couple of houses I wanted flip and he wasn’t even in the same ballpark. On the flip side he called me on a couple he needed to get rid of and wanted close to retail for turds.
They advertise quite a bit around here (billboards and newspaper), but they haven’t beaten me to a deal yet.
Scott
Re: Homevestors franchises - Posted by Bud Branstetter
Posted by Bud Branstetter on January 25, 2001 at 22:08:57:
Rob,
One of my investor buddies called on billboards the other day. The agency said Homevesters was spending 100K a month on billboards in the DFW area with them.
I guess I’ll just give up. I can’t compete with that advertising budget. But, maybe not since I have yet to come across one yet that I couldn’t beat their deal by better sructuring.
Re: Homevestors franchises - Posted by JPiper
Posted by JPiper on January 25, 2001 at 21:44:05:
One thing to think about Rob. At your age you buy 4 houses per year for the next 30 years, keep them, and I have a hunch that somehow things will work out for you. And chances are Homevestors won’t even know you’re around.
JPiper
Re: Homevestors franchises - Posted by Carmen_FL
Posted by Carmen_FL on January 25, 2001 at 20:50:20:
Their approach, to me, is just one of many. No different than the hundreds of Real Estate Companies out there - the mom-and-pop brokers can do just as well as the fancyh Century 21 brokers, if they know what they’re doing.
However, it seems to me that a lot of people are turned off by the “big business” aspect in Real Estate Investing, where they might look for it in other decisions. The word “Investor” has become a dirty word. We seem to have better success just being “people who want to help” rather than “a big company who wants to steal my house”. I’m sure HomeVestors only makes lowball offers on the houses, too (I could be wrong, I haven’t looked at their site), so investors looking for owner financing, Lease Options/PacTrusts/etc. should not feel threatened.
I’m always walking a fine line between appearing too “professional” and too “new”. What we found is that, if we answer the phone with “Real Estate,” or send our calls to an answering service, we lose a lot of callers who hang up. If we answer just “Hello” or something else non-threatening, and just send to voice mail when we’re not in, it seems to make people feel more comfortable.
But companies such as these run on volume, and work with the MOST desperate owners (as long as they have equity, of course). I’m actually kind of glad they’re out there - the most difficult thing in marketing in most cases is to “educate” the public. Once HomeVestors educates them (and gives them a lowball offer), they will know they have options, and will “shop” the best deal - and if your “I Buy Houses” ad is out there, they will most likely find it and call you too
Re: Homevestors franchises - Posted by gwtx
Posted by gwtx on January 25, 2001 at 20:44:57:
Rob,
Homevesters is based right here in Dallas. When they showed up…well everything dried up. There is absolutely not even one property to be had now for the little guy.
Fact is…we all quit and started flipping burgers at (insert your favorite joint).
O.K. enough of the humor. Rob, I’m really surprised to hear you talking like this. You have got enough contacts where you’re at to bring in as much business as you want.
Yes, they have a big advertising budget within their marketing plan. But, they haven’t closed the doors of any investors here in Dallas-Ft.Worth unless those very same investors wanted their doors closed.
Ask Jim Piper if he had to give up when they showed up in KC!
Yes, they have a wonderful website that a really high paid firm put together. But, heh Rob…you have a pretty decent website yourself.
Bottom line…you’re only beat if you want to be beat.
gary
Re: Homevestors franchises - Posted by Pat
Posted by Pat on January 25, 2001 at 20:41:23:
Hey Rob, have enjoyed and learned from your posts here…what trade magazines are out there?
Re: Homevestors franchises - Posted by JPiper
Posted by JPiper on January 25, 2001 at 21:40:16:
Funny Gary. I guess they’ve been up here for 4-5 years or so. Started with major billboard campaigns on the major freeways. They stopped that after a while…and started the TV campaigns with the singing house with doors and shutters falling off. Those are still running.
Some how they let a few crumbs fall between the cracks. Frankly I’m more worried about the guy with 5-6 large vans with “I Buy Houses” on the side that are all driving around my favorite areas. Don’t know how he manages to compete with the Homevestor crowd either.
Then again, all that overhead takes alot of houses. I wonder how it all comes out in the end?
JPiper
Re: Homevestors franchises - Posted by Rob FL
Posted by Rob FL on January 25, 2001 at 21:12:03:
The ones I am referring to are Realtor magazines.
Re: Homevestors franchises - Posted by surfdog
Posted by surfdog on January 26, 2001 at 19:01:50:
There is and almost surely will always be room for the smart, plucky operator. I still like my chances with my overhead and ability to be nimble.