HomeVestors of America, Inc. is a privately owned U.S. real estate franchise company that sells franchises to investors who provide real estate services by buying homes in need of repair, renovating them and either selling or renting them. Founded in 1989 and franchising since 1996, the company consists of 200 independently owned and operated franchisees located in 33 states. Acting on approximately 160,000 leads, franchisees buy an average of 8,000 homes within a year, holding them about six months on average. Headquartered in Dallas, Texas, HomeVestors is the largest homebuyer in the United States.
HomeVestors has been ranked on Entrepreneur magazine's "Franchise 500" for five consecutive years; ranked on Entrepreneur magazine's "Fastest-Growing Franchises" list for four consecutive years; and ranked on the SMU Cox School of Business "Dallas 100" fastest-growing private companies based in Dallas for four consecutive years. Additionally, HomeVestors was named to the Franchise Business Review "Top 50 Franchises" for the fifth consecutive year in 2010.
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.
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. 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"." 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)."
With the recent mortgage crisis, a lot of homeowners have to get out of real estate quickly as prices and equity go down. Many of the sellers are looking for a quick sale. HomeVestors franchisees offer 55% to 65% of the estimated market value of the homes, minus the renovation costs. 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.
History
HomeVestors was launched in the late 1980s when real estate agent Keneth D'Angelo started flipping houses. By the mid-1990s D'Angelo was recycling 150 houses a year in the Dallas area. He sold his first franchise in 1996. After D'Angelo died in 2004, John P. Hayes, a consultant for HomeVestors, took over the franchise company. Hayes, a former Communications professor at Temple University, fell into the franchise business after writing the book Franchising: The Inside Story. Hayes is no longer with the company. The current management consists of Ken Channell and David Hicks, who are co-presidents of HomeVestors.
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.
References
External links
- Official Company Website
- "The Top Markets for Rental-Home Investors," The Wall Street Journal, July 11, 2011
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