All Forum Posts by: Jeffrey Hotz

Id say as long as you have enough cash in the bank to fulfill your marketing goals for about 6 months you should sit on the sidelines and wait.  Ultimately most will wholesale or pull hard money to buy, so what worth is holding back?  Unless 100k is your marketing goal for 6 months....

Wanted to start a discuss for all the investors in Lake or McHenry Counties since there isn't an area specifically for that.  Interested to hear of issues and concerns in a more targeted/local way.  

I can say I recently came across a concern with a house I have in McCullum Lake area.  Since I originally started with HomeVestors the "We Buy Ugly Houses" guys in Cleveland in 2012, and just expanded to Chicago area last year I was unfamiliar with the class action lawsuit against that chemical plant and the people who developed (allegedly) brain cancer in that area.

Anyone have any more info on this or done a deal in that area?  Would be interested to see how a flip went.  Market timing is a little high but I would have a concern there, but after hearing about the lawsuit I'm emotionally less interested in the project I have.

Lets discuss more local Lake/ McHenry County issues!

Originally posted by @Lee S.:

it seems that HVA franchisee's like to state "facts" without having the actual data to back up those facts or the logic to realize that they couldn't possibly back up said claimed "facts" with data because there is no data on individual investor results.  Sure sounds good to the shallow thinkers though.

Sure is convenient to tell the "failed solo investor story" and compare it to the "successful franchisee investor" to make things sound rosy.

This is my major issue with what is said in this thread.  I get that some people feel they need the hand holding and coaching and education is valuable, I've paid for some myself. But to make ridiculous claims based on facts you can't possibly know does not shine brightly on the company.

There are plenty of investors killing it that started their business from the ground up with no "brand name".  This fact alone disputes everything claimed by HVA franchisees.  I'm also going to go out on a limb and assume that less than 100% of franchisees have been successful and are still in the business.  Oops, Logic fail number 2.

Bring the data or silence the claims. 

Wow Lee, Im sorry you feel this way about us, and can't speak for other posts, but I actually don't see any actual facts in mine, so not quite sure what your referencing in your post?

I never stated that things were always "rosy" nor did I mention that 100% of the franchisees are successful, so would ask you to reevaluate what I wrote and please don't make judgement by what you may have heard or seen in the past.  I can say that we do certainly have information, facts and figures that can show you potential over time based on ad spend in a given area.  Obviously some of this will depend on your own business model and personality, but there is a path you can work toward.  

Reality is its not all "rosy" anywhere in this industry, but for me the amount that I pay is more than with the benefits it provides, and apparently also for 700 other franchisees.

Yes, by all means, go ahead and create a company on your own, I'm not saying you shouldn't, and I'm trying to imply that HomeVestors, or any other franchise for that matter, is appropriate for everyone.  Im simply responding to a post questioning whether HomeVestors and their "We Buy Ugly Houses" brand is a worthwhile investment, and more than happy to discuss further with those that may feel the national team environment and open share of ideas an support is worth the franchise cost.  Or maybe the person thats looking for an easier, and cheaper way to fund flips; we have an in house lending institution and simple, super fast, funding process.  Or maybe that investor that is actually frustrated with the amount of time it takes to target advertise themselves; we have an impressive direct mail program, currently running national TV ads, and most areas we already have billboards in place.  Maybe, like for me, Id rather walk into a house and be associated with a company that has bought over 70k houses with obvious brand recognition and be able to talk openly and honestly about the sellers issues to see if were a fit; instead of forcing some kind of awkward sales spiel (not saying all non-HomeVestors guys do this, but it is highly prevalent from what Ive seen and not for me)

You see the benefit of HomeVestors is different for everyone and I would never tell someone that its a one size fits all box.  I got it, your not interested in the Franchise model, totally fine and I'm not upset.  Id hope you would be able to work with HomeVestors guys at some point for the benefit of both parties.

Ive been very happy with the brand and the family I have bought into, and always excited to talk to others about how Homevestors has changed my life for the better.

Brent Hill Guess I have to clarify...of course Ugly isn't specifically trademarked more than hundreds of other phrases. HomeVestors does have a significant legal team that aggressively acts on marketing material with the work Ugly in it, and I'd discuss with your own attorney what's appropriate before implementing. I'd have a hard time figuring out how you would implement the word Ugly in a bandit ad without It being a direct infringement. In any event, like I said before bandit away!

Can I ask why you would be interested in the hard money? If you can get a bank loan, that's always going to be better than hard money.

Keep it all the same, its a hell of a lot easier.  If your doing this right Real Estate Investing should be super boring!

Hi Dalton,

Theres a bunch of companies these days that will fund long term rentals.  Id look at Lima one (although their lending requirements just changed, 5 Arch, Visio, B2R, Jordan Capitol, Lending Home, etc.

Seems right now they all want some skin in the game.  I used to be able to cash out entirely based on the asset, and since I'm a franchise of HomeVestors the "We Buy Ugly Houses" guys, and were really good at getting houses at a discount, Id be able to walk away with a profit in the refinance.   Unfortunately though that model has changed it seems.

Private money is always cheaper and easier, but way more difficult to find.  Ive had varied success with this in the past but never found that Rockefeller lender that would give me unlimited funds...such is the case with most I suspect.

In any event just gotta start talking to lenders and see what works, theres lots of different products out there.

Good Luck!

Dont know if this is still a valid thread but Id appreciate if you would use those signs, certainly don't use the word Ugly as we have that trademarked!

When you post a bandit sign sellers go online and HomeVestors (the largest homebuyer in the country) usually comes up #1.  Then they click on our banner ad and they end up in our system.

You see Im a franchise with HomeVestors so obviously gain from the money you have spent on that sign, funny enough.

So please bandit away!

Dont know f this post is still valid but Im also a HomeVestors Franchisee and have been active for the past 4 years in 2 different Markets, Chicago, IL and Cleveland, OH. (not so active here in BP unfortunately, but looking to change that)

I can say HomeVestors is not for everyone and certainly pros and cons but from my opinion the value of the brand, their ability to target QUALITY leads, and also hard money lending arm make the costs very appropriate. Ive seen someone throw away 7k on marketing that got them 0 calls...thats expensive. With us, at least theres a track record for leads per ad spend, so not a shot in the dark.

The reality is we have franchises that come in at all stages of success in the industry and all different backgrounds. We work together as a cohesive team in order to thrive in this difficult industry. Some prevail, and some fail.

More than happy to discuss if anyone is interested. I'd certainly tell you the good and bad and let you decided if its a fit for you.