Question: Hardest Deal?

Question

What do you consider to be the hardest part about investing in real estate?

Patti Robertson · Answer

No question - finding the deal with the most equity!

Patti Robertson · Answer

@Brandon Diaz - I don't think a Seller necessarily thinks they are going to get more money because they are selling to a big company, but they do understand the strength and stabilty of a large nationwide brand.  HomeVestors franchisees have purchased over 75,000 homes.  If we put a house under contract, they can rest assured we will close on it, for the price we say, in the time frame we agree upon.

As far as HomeVestors goes, my husband and I are partial to franchise business models in general.  We were Jackson Hewitt franchisees for 24 years until we sold that business last December. (The retail tax business is a dinosaur.)  We currently own 12 Great Clips salons and the HomeVestors franchise, which we use to build a rental portfolio, flip and wholesale.  We had zero real estate investing experience (outside of one accidental rental) before we bought the franchise.  We shopped for a franchise concept that would eventually replace our Jackson Hewitt revenue and that's how we ended up with the HomeVestors brand.  We joined in 2007 and are getting ready to renew into our third 5 year franchise contract period. I can honestly say that there is no way we would be where we are today in our investing career had we just decided to be real estate investors and started on our own in 2007.  If you are interested in what we've accomplished I have a couple of podcasts on there you'll find if you google my name.

Rolanda Eldridge · Answer

@Brandon Diaz..Slow..then ...Crazy Busy all at the same time....Learning to prioritize and delegate...LOL...

Jeffrey Hotz · Answer

Wanna let @Patti Robertson respond, but interject my 2 cents about the "bigger company assumes bigger money"....it's exactly the opposite from my experience, bigger company assumes lower price.

Brandon Diaz · Answer

Account Closed lol I hear you on all this myself. I could use it myself.

Account Closed · Answer

Having patience.

Patience finding the deal

Patience with locating and finding contractors to rehab

Patience with issues that may come up during rehab

Patience with property managers who place tenants and rent the house

Patience with tenants

Patience with property appreciation

For me, the hardest part about investing is patience.  That being said, I'm currently reading "The Tao of Charlie Munger"....patience is a good lesson taught in the book.

Brandon Diaz · Answer

@Jeffrey Hotz that is interesting. I can see that as well!

Brandon Diaz · Answer

That is cool that it gets put out collectively like that to drive up a healthy budget. I once had 1800-BUY-KWIK and did Radio, two Uhaul trucks with advertising , and TV (no leads and stopped quickly), plus many other things. But, I found that form of advertising to be a little expensive and I was still having to do all my own marketing myself (the same as if I was regular joe). So I stopped paying the fees and went with my own advertising and I like it. I like that you all share like that.

In just thought and wondering, do you think that form of advertising generates a different type of seller mentally? Where they think that a big company assumes bigger money and more for them? Whats your stance since you are a franchisee? Hows the experience?

Patti Robertson · Answer

@Brandon Diaz - I'm a HomeVestors franchisee -We Buy Ugly Houses.  We do a little bit of everything. In my market our current monthly budget is $43K collectively among the 7 franchisees who are here.  With that we are doing direct mail, billboards, and TV. (We never do illegal bandit signs.)

Question: Hardest Deal?

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