The HomeVestors Associate Franchise

®

The Economy• 401K’s• Layoffs• Credit Crisis• Government Help?

?

®

NOW is the time to

SUCESSFULLY

Invest in REAL ESTATE?

What Are My Options? How Do I Invest

In Real Estate?

Don’t Go It Alone!

GURU’s, Books, Tapes, Seminars

96%

HomeVestors® Overview• Founded by Ken D’Angelo• The “We Buy Ugly Houses®”company

• Began franchising in 1996• 200+ franchises in 35 states and 100+ markets• HomeVestors was acquired in June 2008 by

Franchise Brands, LLC• The only business format home buying franchise in

the USA• We provide:

A powerful brand World-class training and marketing support

forthe lifetime of your franchise

Financing for the purchase, repair and resaleof houses

• Named to Franchise Business Review’s Top 50 Franchises for third year in a row - 2008

®

HomeVestors Overview• Nearly 40,000 houses bought by franchisees

since 1996

• $42 million loaned to our franchisees to buy and rehab properties YTD 2008

• $11M in mass media advertising YTD in 2008 on behalf of franchisees

• 135,000 leads generated by advertising YTD

2008 from people in an ugly situation

®

Franchises by State and Market

PHOENIX

Tucson

ColoradoSprings

DENVER

Wichita

ST. LOUIS

TulsaOklahoma City

Apple

ton/

Osh

kosh

Lubbock

Denton-Fort Worth

DALLAS

Tyler/Longview

AUSTIN

SAN ANTONIO HOUSTON

St. Clair/Madison Counties

CHICAGO

MINNEAPOLIS/ST. PAUL

Detroit

Boise

Pittsburgh

PHILADELPHIA

ATLANTA

ColumbusMontgomery

Raleigh-Durham

CHARLOTTE

Columbia

Charleston

Jacksonville

Broward County

Brevard CountyPolk County

Palm Beach County

MIAMI-DADE

Pensacola

Tampa/St. Petersburg

Birmingham

WASHINGTON, D.C.*

Memphis

Seattle

Kent-SussexSalt Lake City

MIL

WAUKEE

St. Lucie/Martin Counties

Mobile

Eau C

laire

Albuquerque

Wilmington

Saraso

ta

Gary

Indianapolis

Worcester

Panama City

Las Vegas

Boston

Wilmington

El PasoGulfport-Biloxi

Newark

New York

RichmondNorfolk

Ashevil

le

Westchester

Hartford

Gainesville

Providence

Ft. Walto

n Beach

Will

County

Kansas City

Springfield

Greensboro

Hickor

y

Cincinnati

Long Island

Rochester

EdisonTrenton

Woodbine

Hagerstown

Corpus Christi

Spokane

Gadsden

Nashville

Puerto RicoPuerto Rico

CanadaCanada

The HomeVestors Business• Franchisees specialize in buying and selling houses as

a full-time or part-time business – In most states, no license is required

• Most independent investors focus on bankruptcies and foreclosures

• HomeVestors reaches a much larger market of home sellers who will take a substantial discount in exchange for a quick cash sale and the buyer taking the house in “as is” condition

®

What Are We Looking For In A Franchisee?

• A leader who has the desire and passion to build a real estate investing business

• The personality to be a successful franchisee• The capital to invest in a franchise

®

Who’s A Motivated Seller?• People who inherit real estate located in another city• They own rental properties they no longer want• They need to sell for investment capital• Their properties need extensive repairs• HomeVestors rescues Motivated Sellers from “ugly”

situations: Divorce, Death, Loss of Employment, etc.

®

How Do Franchisees Make Money?

Wholesaling/Assigning to investors for positive cash flow

Rehab/Retail properties Buy and Hold to build wealth (rentals)

Note: The mix of these exit strategies depends on the goals of the franchisee and the markets

®

The Pieces of the Puzzle – HomeVestors can help

Question: How do you consistently find properties to buy?Solution: HomeVestors has a powerful lead generation program that

attracts sellers!

Question: How do you determine repair costs and also make quick and accurate offers?

Solution: HomeVestors has proprietary repair evaluation software that determines market value, repair costs and target purchase prices.

Question: How do I manage the business side of the franchise? Solution: HomeVestors real-time business management software tracks

and manages everything from rehab tasks and investor activities to potential sellers and projected cash flow.

®

Other Puzzle Pieces

• National brand and image• Web site to sell houses• Referral programs to generate leads• Business development consultation

through a Development Agent (DA) for Associate Franchisees

• Complete training and support• Franchisee conventions and training

events• National vendor relationships

®

The HomeVestors Brand Stands Out!

®

HomeVestors World-class Training

Leads!

Leads!

Leads!

Financing

HomeVestors Franchise Levels

• Full-service Franchise• Associate Franchise• Development Agent (DA)

Development AgentFranchise

Associate Franchise

®

Associate Franchise (AF) Investment

• $12,000 franchise fee• Candidates must have a minimum of $50,000 in liquid

assets available• 5 year franchise agreement• Spend at least $1,000 per month on advertising • Ongoing fees:

– Monthly fee: $600, includes $500 credited toward transaction fees

– Buy/Sell transaction fee: $1,350 minimum per transaction

– Assistance fee paid to the Development Agent

This is not a franchise offering. An offering can only be made by obtaining a HomeVestors Franchise Disclosure Document (FDD). All fees outlined in the FDD.

®

Development Agent Support

Your Development Agent Delivers• Reduced learning curve and time until profitability• Less cost than a full service franchise; less

overhead; remain bi-vocational• Buy houses at HomeVestors prices• Financing relationships• Inbound lead management• Escrow and closing management• Property management• Building Contractor relationships• Weekly coaching• Monthly training• Buy houses at HomeVestors prices

What Do You Do Next?• Go to the HVA Web site:

www.HomeVestorsfranchise.com and submit: Request for Franchise Consideration This is located under Own A Franchise, then click the tab – Request for Franchise Consideration for the Associate Franchise (AF)

• Receive a Franchise Disclosure Document (FDD)

®