A franchise differs from a non-franchise business in a way that makes it attractive as an investment. With a business model in place, you save time in getting operational. There are also some additional benefits to consider.
The Benefits of Investing in a Franchise
The predictability of franchise operations makes them solid investment opportunities. Many franchises offer recession- and inflation-resistant models, more so than you would experience with more traditional investments. When considering how to invest in franchises, building a portfolio of multiple units (either within the same franchise brand or with other brands) extends the opportunity for a franchise return.
Return on Investment
According to Franchise Beacon, after two full years of operation, a franchisee should anticipate a 15%-20% return on investment, plus a salary for the work performed in the business. Compare that to Vanguard’s advisory that projected returns with traditional investments are now 3%-7.1%.
Franchise ownership can be active or passive, so when researching opportunities, be sure you know what is required from the franchisor. As multi-unit ownership now exceeds single-unit ownership, the role of franchise owner has changed to allow for a managerial role versus a day-to-day working role. Share your goals of diversifying your portfolio with the franchisor to ensure a good match.
How HomeVestors® Differs as a Portfolio Investment
HomeVestors® is a real estate investment franchise and America’s No. 1 home buyer. We fill a niche in the marketplace because we buy homes that are outside the traditional real estate market. You may have seen the We Buy Ugly Houses® promotions on billboards or social media, and that’s who we are – we buy homes that need significant repair or are otherwise deemed unsellable.
However, we may also buy homes when cash purchase is preferred due to a death, divorce, job loss, inheritance settlement, or any other reason a homeowner needs to sell in a timely fashion. We may be able to make a cash offer and cover most typical closing costs which accelerates the process for a homeowner in a pressing situation.
As a way to diversify your portfolio by investing in a franchise, HomeVestors® offers some unique advantages:
One Franchise, Multiple Options
Instead of looking for a variety of other franchises that you can stack in your investment portfolio, HomeVestors® offers one franchise that diversifies itself. Either you can buy, renovate and resell properties, or you can buy properties and build rental income opportunities. This allows you to create wealth while running the franchise.
Better Work-Life Balance
You can build a team to handle elements of your HomeVestors® business while taking on a role that is more suited to how you want to spend your time. For example, you can oversee property buying while delegating administrative tasks, remodeling, and selling to others. You can have an active-income franchise or a passive-income franchise.
Flexible Working Setup
A HomeVestors® franchise can be operated from home, which makes it a more flexible investment than a franchise that requires a brick-and-mortar location. This is a key reason we have new franchise owners up and running in 1-2 months as we have no site selection or lease issues. Employees you onboard can enjoy the same flexibility, which can broaden your pool of resources as well.
Start with $85K Liquid Capital
With HomeVestors®, you don’t have to have millions to make millions. Our minimum liquid capital requirement of $85,000 allows you to be investing in a franchise and contributing to your investment quickly and effectively. The business can be run part-time or full-time, depending on your preference, and it has unlimited growth potential. In every economic situation, people are buying and selling houses.
Why HomeVestors® Is Worth Exploring
If you’re motivated to increase your investment portfolio, this could be the right fit for you. Most of our franchisees had no real estate background, and yet collectively, we’ve earned a 95.8% satisfaction rate. When it comes to real estate investing for beginners we have all the bases covered.
Start by filling out the franchise information form on our website. Let’s talk about your investment goals and how HomeVestors® can help you achieve them.
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