While declining numbers of foreclosures are slowing down most investors, the leading homes-for-cash company is expanding into new territories.
HomeVestors, the number one buyer of houses in the U.S. opened 64 new franchises in the past three months, which is almost double the highest number of franchisees that have previously enrolled in a single quarter. “This number is remarkable and attests to continued strong interest in real estate investment and the opportunity for investors in today’s market,” said HomeVestors Co-President David Hicks.
Hicks said a lot of their growth is coming from properties in older neighborhoods where houses are 30 years older or more, not newer homes more typical of those that have dominated distress sale inventories.
“Our franchises are buying from homeowners who are selling for a variety of reasons. Hedge funds don’t have access to those homes and mom and pop investors want to buy in newer neighborhoods,” he said.
HomeVestors’ rapid growth comes amid the housing comeback. “The number of additional new franchisees during the second quarter of 2013 is an indication that investors increasingly believe what we know is true — that there is continued opportunity in the market,” said HomeVestors’ co-president, Ken Channell. “We are committed to our franchisees to help encourage continued growth and success this year.”
Among the new franchises HomeVestors have added are in new territory for the company such as Cedar Rapids, Iowa; Lower Hudson Valley, New York; and Myrtle Beach, South Carolina. HomeVestors of America, Inc. is also known as the “We Buy Ugly Houses” company.