Question about HomeUnion.

[Albert F.]

Hello all, I'm wondering if someone here have ever used HomeUnion service to invest in real estate. It seems to be too good. Any comments? Thanks

[Michael S.]

@Albert F.

I had been talking with a sales rep from HomeUnion and was intent on purchasing through them after my first two discussions. My third discussion, however, turned me away from them for a few reasons outlined below. 

First, the sales rep strongly discouraged me from visiting the homes I would bid on in person. The sales rep acted like I was being unreasonable for thinking it was worthwhile to spend a $200 plane ticket to see a market's active homes. Their model is predicated on customers looking at houses like the stock market (completely hands off bidding on multiple homes within an investment category regardless of location). Investing $200 to become comfortable with $100K bids in an area should be a no brainer in my mind, but was not a justifiable request to the sales rep I spoke to.

Second, I was told that, if I were to fly down to one of their markets, I would need to pay extra to visit with one of their local agents and, again, the rep found this request to be unreasonable. I don't think it's unreasonable to want to discuss my investment bids with the rep to fully understand why, based on local knowledge, the house should be bid on.

Third (and you can probably tell I was losing trust in the company), the rep acted like I was once again being unreasonable for wanting to get an independent inspection. If I'm discouraged from visiting the house in person and/or speaking with a local rep to understand the "why" of the home, I at least need someone outside of Home Union to be the eyes of the purchase.

Ultimately, I got the sense that I wasn't the right client fit for Homeunion. I was looking for a trusted investment agent / property manager who would help me pinpoint great investment opportunities in a cash-flow positive market while leading the end-to-end purchase, rehab and management flow. While I get the sense that the business model is efficiently streamlined on their side, I'd like access to more transparency and expertise (to justify the data) to bite on my side. Otherwise, I see more value in other turnkey companies that provide a closer connection to the home you are purchasing and provide a deeper local knowledge.

I'll keep an eye on their business to see how they adjust. With a few minor changes to the company's business model, I'd be very interested in working with the company for a rental in the future.

I hope this helps you or anyone else interested in HomeUnion. I'm happy to update this thread if things change and I end up investing in HU.

Mike