HomeVestors of America

HomeVestors of America
Franchise
Industry Real Estate
Headquarters Dallas
Key people
 Ken Channell and David Hicks
Website http://www.HomeVestors.com
HomeVestors franchise WFI Properties of Houston wins award at 2009 HomeVestors Annual Convention.

HomeVestors of America, Inc. is a privately owned U.S. real estate franchise company that sells franchises to investors[1] who provide real estate services by buying homes in need of repair and homes that owners need to sell more quickly and easily than typically can be done via a realtor. HomeVestors franchisees then typically renovate and sell them or rent them.[2] Founded in 1989 and franchising since 1996,[3] the company consists of more than 600 independently owned[4] and operated franchises located in 49 states.[5] Acting on approximately 160,000 leads, franchisees buy an average of 8,000 homes within a year, holding them about six months on average.[6] Headquartered in Dallas, Texas, HomeVestors is the largest homebuyer in the United States.[7]

HomeVestors was ranked on Entrepreneur magazine's Franchise 500[8] for five consecutive years; ranked on Entrepreneur magazine’s Fastest-Growing Franchises[9] list for four consecutive years; and ranked on the SMU Cox School of Business Dallas 100[10] fastest-growing private companies based in Dallas for four consecutive years. Additionally, HomeVestors was named to the Franchise Business Review “Top 50 Franchises”[11] for the fifth consecutive year in 2010, and has received eight consecutive “Top 50 Franchise Satisfaction Award”s by FranchiseBusiness Review.

History

Real estate agent, Ken D'Angelo founded HomeVestors of America and began franchising in 1996. Based in Dallas, the company buys houses in need of repairs or updates, then repairs and sells them for profit. Some home sellers will sell their houses at a wholesale price if they get a cash offer, can close quickly and can sell the house without any repair or updating expenses. The current management consists of Ken Channell and David Hicks, who are co-presidents of HomeVestors.[12]

Best Markets to Invest in Rental Property

HomeVestors maintains a set of "Best Markets to Invest in Rental Property" rankings, launched in July 2011 to forecast the expected performance of rental real estate, particularly single-family homes . The intention is to allow real estate investors to accurately gauge local markets and how they relate to the national and international ones.[13]

Mortgage crisis

With the slowdown in housing sales, HomeVestors has helped the real estate market by buying homes from distressed owners who are facing foreclosures.[14] According to The Economist, “one in four American borrowers are under water. Over 4m households owe at least twice as much as their home is worth. The resulting foreclosures cause a lot of damage. When homes are foreclosed upon and sold by lenders, the discount rises to 35%, largely because the property is not being maintained. The steep drop in price harms other homeowners. The values of neighboring houses are pushed down, forcing other borrowers deeper under water”.”[15] Additionally, “some 5m homes have entered foreclosure in the past three years. Credit Suisse estimates that over 9m more will enter in the process in the next four years. (In normal times, new foreclosures run at fewer than 1m a year).”[16]

With the recent mortgage crisis, a lot of homeowners have to get out of real estate quickly as prices and equity go down.[17] Many of the sellers are looking for a quick sale. HomeVestors franchisees attempt the understand the specific situation facing each seller and offer a price that will address the seller's needs, and leave room for the cost of needed repairs and a profit. This service benefits people who lack the time or inclination to fix up and sell a home themselves as well as the surrounding homes and community.[18]

Corporate sponsorships

HomeVestors is the corporate sponsor of Rebuilding Together, a Washington, D.C.-based non-profit group that preserves affordable homeownership and revitalizes communities by providing critical home repair and modification services to those in need at no cost to homeowners.[19]

References

  1. ↑ Palmeri, Chris (January 25, 2006). "Who buys those ugly houses?". Bloomberg BusinessWeek.
  2. ↑ Gibson, Richard. "Companies Offer Innovative Incentives to Lure Franchisees as Competition Grows," Wall Street Journal, August 26, 2008
  3. ↑ Straub, Anne. "Ugly House guys’ buy fixer-uppers," USA Today, September 29, 2003
  4. ↑ http://www.homevestors.com/about-us/, June 02, 2015
  5. ↑ http://www.homevestors.com/about-us/
  6. ↑ Steiner, Christopher. "Diamonds in the Rough," Forbes, October 3, 2005
  7. ↑ Bernstein, Fred A. "Pretty Profits from Ugly Houses," New York Times, February 19, 2006
  8. ↑ Entrepreneur Magazine (2001-2008)
  9. ↑ Entrepreneur Magazine (2004-2008)
  10. ↑ SMU Cox School of Business (2006-2009)
  11. ↑ Franchise Business Review (2006-2010)
  12. ↑ http://www.entrepreneur.com/franchises/homevestorsofamericainc/282436-0.html
  13. ↑ Timiraos, Nick. "The Top Markets for Rental-Home Investors," Wall Street Journal, July 11, 2011
  14. ↑ Hagerty, James R. "Slower Home Sales Open Up a Market For Some Investors," Wall Street Journal, May 30, 2006
  15. ↑ "Drowning or Waiving," The Economist, October 21, 2010
  16. ↑ "Can’t pay or won’t pay," The Economist, February 19, 2009
  17. ↑ Steiner, Christopher. "Diamonds in the Rough," Forbes, October 3, 2005
  18. ↑ Haas, Joseph. "For Sale by Investor," Realtor, January 1, 2004
  19. ↑ Franchising World, February 1, 2006

External links

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