HomeVestors associate franchise

[George Moehlenhoff]

http://www.homevestors.com/fran_info_costs.php

thoughts? Any opinions or experiences with their system?

[Jaremy Moritz]

I know most of the franchisees in the Houston area and a few others around the country. Only 3 or 4 of them here in Houston were in business a couple of years ago and I'll bet the same guys are the only ones still in it a couple of years from now. The HomeVestors system is a great system for those who truly capitalize on it's benefits, but most franchisees don't. And it's especially good for those with deep pockets from the get-go. :) For most, though, the system is what they blame their eventual failed business on, instead of their own individual failures and mistakes.

Their advertising is effective but EXTREMELY expensive compared to what private investors like me spend on it. I get a lot of the same leads that they get and I haven't spent a dime on advertising in over 2 years. It's not what you spend on advertising, but how effectively you can market your business.

I would guess that most of the franchisees struggle early because they don't have enough basic knowledge of real estate investing. The learning curve in real estate is steep to begin with, but with the HV system, they have to learn all the rules and regulations of the franchise system as well. That amount of time learning the franchise rules and regulations should be spent learning how to make money in the business. This is why most franchisees fail, in my opinion. That and not listening to the advice of the successful franchisees, of course.

I can say all this because I have an inside knowledge of their system - I have worked as a "buyer" for 3 different franchisees and I have completed their training course on buying properties. I've seen what works and why it works, and also what could be eliminated and adapted to increase early success for franchisees.

The HV system is a great system for those who use it to the fullest extent. For most, though, I wonder why they spent the money on the franchise in the first place. A lot of the guys I've seen fail refused to listen to the successful franchisees, struggle miserably, and then wonder why their franchise failed.

The franchise model, overall, is a great business model. When it is combined with real estate, though, it's much more difficult to teach someone how to successfully build a real estate business than it is to teach someone how to make a proper sandwich.