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Purchase Price vs Market Value

“Price is what you pay. Value is what you get.” — Warren Buffet By Julie Parker The booming market of residential real estate we experienced nationwide in 2021 through the first half of 2022, saw buyers purchasing homes at well over list price. The buying phenomenon of that time is now causing some waves in the appraisal industry as current valuations of those properties purchased during that time period are being requested. Many of those new homeowners are feeling the fallout of paying sales prices which exceeded the value of the property at the time of purchase. After a year+ of ownership, some homeowners are seeking appraisals or other forms of valuation of their recently purchased properties to determine value for various transactional purposes. The answer to the question, “What is my property worth?” is one that may be a bit disappointing for some. The owner’s expectation is generally that the property’s appraised value will meet or exceed the sales price previously paid. The Key Words to Note are “Price” and “Value” Expectation born without consideration of all elements at play, when forecasting the most probable result, can lead to disappointment. The failed expectation in this case is the result of regarding the accelerated sales price of the property and its actual market value at the time of the sale, as one and the same; or price=value. The reality is that during the purchase frenzy of that time, buyers were knowingly paying prices well over market value. The buyer’s willingness to do so was the result of a perfect storm of low volume, high demand, and historically low interest rates. In 2022 as interest rates began to rise, sales prices continued to increase and buyers still sought to quickly purchase out of fear that interest rates would continue to increase. A telling indicator of these noted factors at play is that realtors were educating their buyers and confirming that they were willing and able to pay an appraisal gap due to an accelerated purchase price that would be necessary to capture the sought after listed property in such a market. It became standard practice for appraisal gap clauses to be placed within purchase contracts with buyers agreeing to pay the difference between the purchase price of the property and the appraised value.  It is an interesting notion that an informed buyer, who knowingly paid the appraisal gap, would now have an expectation that the current appraised value would be equal to or greater than the accelerated sales price previously paid. Especially given market trends since that time, the second half of 2022 saw sales prices decrease; while the first half of 2023 has seen most markets stabilize and some markets have had only moderate increases reported.  Homeowner Expectations Today, appraisers throughout the country are dealing with the brunt of delivering current appraised value results that do not meet the expectations of these homeowners when those opinions of market value are compared to the prior purchase price paid for the property. Clients and borrowers may point to market trends, i.e., the percentage of increased values within the various markets to prove their case for a higher appraised value. Regardless of the market trend since the property’s purchase, the underlying issue is that the purchase price paid during this escalated period of sales activity did not necessarily equal actual market value at the time of sale.  With that in mind, if applicable market trends were applied to the actual market value of the property at the time of sale, rather than being applied to the accelerated purchase price, the present-day market value in most cases, where significant appraisal gaps were paid at time of purchase, still would not support the prior purchase price. However, this is not to say that the property has decreased in “value”, which is typically the rebuttal from the borrower and/or client.  Their frustration lies in the belief that market trends to date do not support an overall decline in the property’s market value since the time of purchase; therefore, the subject’s current appraised value has been understated as it does not support or exceed the prior purchase price. In part, this theory is correct as there has not been an overall decline in the property’s market value. However, there has not been a large enough percentage increase in market values that would raise the property’s market value to the threshold that would now support the accelerated purchase price that was previously paid. Again, the key words to note are “price” and “value.” The difference in purchase price and market value is significant enough that combined with a stalling of market trends since time of purchase, many of those buyers are still a bit underwater.  Oftentimes in these instances, when an expectation of value is not met, appraisers are experiencing pushback from clients and borrowers to further analyze market trends, additional market data, etc. in hopes that the additional data will provide the support needed for the appraiser to revise the appraisal report and appraised value in a beneficial way. “Price” and “Value” are not Interchangeable It is always the appraiser’s responsibility to communicate the appraisal and its results in such a way that it can be clearly understood by the intended users, and it is no different in these instances. The appraiser would analyze additional, relevant data presented to them by the client. However, the primary point that must be made clear to the intended users, to fully understand what may appear at first glance to be an understated appraised value, are the terms and various factors that surrounded the prior purchase, and the accelerated purchase price of the property as a result of the bullish residential real estate market during that time period.  The distinction that the purchase price does not always equal market value is key. An obvious indicator of that would be when you, the buyer, agree to pay an appraisal gap as part of the purchase price. And for significant appraisal gaps

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Market Value and Replacement Cost Valuation

Understanding the Differences Will be Key for Success Moving Forward By Alexandra Glickman and Robby Kunz The U.S. Federal government declared an end to the COIVD-19 Public Health Emergency on May 11th, 2023. While the pandemic might be “over,” the lingering effects are something the real estate industry will be dealing with for years to come. The market value of assets and their replacement cost valuation are both being challenged by persistently high inflation and increasing interest rates. Both have been influenced by the post-pandemic economic era. Asset owners trying to pencil out their deals should take note of the differences between an asset’s market value and its replacement cost value. Understanding the differences and the resulting impact on financials will be key to sailing through the rough waters ahead. Market Value vs. Replacement Cost Value The market value of an asset is fairly easy to grasp for anyone in the real estate industry. The market value refers to the price that potential buyers and sellers could expect the asset to fetch in the marketplace. It includes things like the value of the land, the current condition of the asset, and many other intangible characteristics like demand and scarcity of supply. On the other hand, the replacement cost value of an asset is much more formulaic. A replacement cost valuation is used for insurance purposes to determine the cost to repair or replace a physical structure and its contents with materials of like kind and quality. An insurance-based property valuation may also include business interruption values. This refers to potential income generated by a property that is at risk in the wake of a loss. The key takeaway here is that these valuation methods are affected by inflation and interest rates in very different ways. Persistently high inflation has contributed to elevated costs for labor, fuel, and materials. This means that the replacement cost values of assets in a portfolio are continuing to rise year after year at a faster pace than usual. To combat inflation, central banks around the world are increasing interest rates. This has the effect of increasing borrowing costs for real estate organizations while simultaneously decreasing the market value of their assets. This inverse relationship has resulted in a scenario where some real estate organizations are insuring assets for values greater than they can sell them for. This is a complicated problem for CFOs and risk managers alike. Real estate organizations that do not have a firm grasp of their assets’ replacement cost values will encounter a greater deal of volatility in their insurance costs. They may also run into unwelcome financial surprises when trying to rebuild in the aftermath of a loss. First, we will define the problem with inaccurate replacement cost values and their resulting financial impact. Second, we will address ways to verify the replacement cost values with defensible data. The Chief Concern of Property Underwriters The Council of Insurance Agents & Brokers noted that Q1 2023 was the 22nd consecutive quarter that premiums increased for accounts of all sizes, regardless of geography, industry, or asset class. The most difficult pocket of the marketplace is property insurance, a major line item for real estate organizations. Insureds should expect premiums to go up for the remainder of 2023. The key will be to secure the best achievable results in the marketplace, and property valuation is front and center in this conversation. The chief concern of property underwriters is true and accurate replacement cost values submitted to them during the underwriting process. An underwriter who perceives that valuations may not be in line with accurate replacement costs has a number of strategies available to underwrite defensively and ensure the profitability of their book. All of these strategies will have a financial impact on the asset owner. An underwriter might choose to:  »         Accept the lower values, but charge higher rates/premiums that they feel are in line with the true exposure they are taking on. They will always err on the side of caution and this could result in drastically higher costs for the same coverage limits, deductibles, terms, and conditions.  »         Offer less limit capacity and decrease coverage. In this scenario, an asset owner may need to enlist multiple insurers to achieve the same level of coverage which typically comes at a higher cost.  »         Require that insureds take on more risk in the form of increased deductibles.  »         Change the terms and conditions under which a policy would pay for a loss. This could be in the form of Margin Clauses or Occurrence Limit of Liability Endorsements. Any combination of these strategies could be enacted at renewal. Real estate organizations will have to evaluate how these changes impact the terms of the loan covenants they agreed to, in addition to increasing the cost of risk transfer. What to Do? Real estate organizations that can provide data-backed, defensible replacement cost valuations to underwriters will have less difficulty negotiating their renewals. The first and most reliable way to confirm an asset’s replacement cost value is to enlist a 3rd party appraisal and valuation services firm. Many firms that operate all over the U.S. also have capabilities to conduct international valuations. Once a professional valuation has been completed or if an asset owner already has one on hand, insurance industry-accepted cost indices can be used to trend the values through time. This helps minimize the cost associated with confirming an adequate valuation. It is important to note, that if you cannot verify the starting value that you plan to trend, then you cannot rely on the resulting value from the index. Real estate finance can be complicated, especially in times of economic turmoil. By making a conscious effort to maintain adequate replacement cost values, real estate organizations can minimize some of the volatility associated with penciling out deals in a high-interest rate and high-inflationary environment. The cost of insurance will become more predictable and will provide an easier path to determining the net operating income associated

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The Impact of Flood Zones on Valuations

The Best Course for Due Diligence By Rich Reade Today, flooding is a topic of major interest and concern to investors, lenders, and homeowners for good reason: It is the #1 natural disaster in the US, having affected 99% of all US counties in the last 20 years. Flooding can happen anywhere and not just limited to coastal areas, near bodies of water, nor the Federal Emergency Management Agency (FEMA) designated high-risk zones. Flooding can cause disastrous consequences even in relatively minor cases. Just one inch of water can cause $25,000 in damage, with an average flood insurance claim payout of $52,000 from the National Flood Insurance Program (NFIP). Flood damage can cause rotting of building materials, mold and bacteria growth, and structural damage, all of which can affect the overall investment value, short or long-term. Statistically, natural disasters are occurring more frequently and with greater intensity. Ninety percent of disasters include flood impact, and 42% of homeowners are concerned that weather events such as wind, rain, or flooding will damage their homes in the next three months. With such impact and ever-evolving data supplying the guidelines of flood risk, it is crucial to have an expert resource to help you precisely and unambiguously answer these questions:  »         “What level of flood risk applies to my investment now?”  »         “What level of risk may apply in the future?”  »         “Do I have any options to challenge the official flood status of a structure?” How Flood Risk is Dictated FEMA produces the Flood Insurance Rate Maps (FIRMs) that show all the geographic areas FEMA has defined according to varying levels of flood risk. These flood zones illustrate where low, moderate or high-risk areas exist on the landscape. Every property is in a flood zone of some type, whether high, moderate or low-risk. The high-risk zones are called Special Flood Hazard Areas (SFHAs) and include the zones that have a 1% or greater chance of flooding in any given year and a 26% chance of flooding over a 30-year mortgage. FEMA’s Effective FIRM represents and dictates the current location of all flood zones, including SFHAs. Effective FIRMs are continuously updated using data and input from community floodplain administrators working with local engineers and surveyors. FEMA relies on this ongoing collaboration to keep the maps as accurate as possible because flood risk can change over time due to new land development, weather patterns and other factors.  FEMA’s Preliminary FIRM shows changes that have been proposed based on new community data showing changes that may come into effect in the future. Communities have 90 days to submit technical data to support an appeal to a proposed map. Once a new map is adopted as an Effective FIRM, amendments to the map can still be made through the Letter of Map Change (LOMC) or Letter of Map Amendment (LOMA) process. An important takeaway is understanding that an ongoing and collaborative process exists in establishing and maintaining guidelines for flood risk management as well as insurance requirements. In certain cases, a structure’s official flood status can be challenged and overturned, via the previously mentioned LOMC process, potentially removing insurance requirements. When Insurance Is Required, and When Insurance is Recommended Flood insurance is required by law whenever a habitable structure comes in contact with an SFHA, if that structure has a mortgage from a government-backed lender. This is why structure-based precision is important, to be certain where the structure sits in relation to the FEMA flood zones. If you live in a low to moderate risk area, flood insurance is typically not required. Low risk, however, does not mean a flood will not occur. In fact, one-third of flood insurance claims come from moderate-to-low-risk areas, and this value does not include properties that do not carry flood insurance, but flood just the same. Even if a government mandate is not force-placing flood insurance on your investment, it is highly recommended to always confirm your structure’s flood status and consider flood insurance. Options include insurance through NFIP, which covers up to $250k, or private insurance which can cover higher amounts. Challenges Frequently Encountered in Confirming Flood Status There are an overwhelming amount of well-meant free resources available online that are unofficial, confusing or potentially misleading property owners. Users face a major learning curve or an exercise in futility when exploring mapping data and complex resources on their own, let alone resources that lack the detail required to have clarity on flood status. Even official flood zone certificates come with pitfalls of their own. Many are limited to the industry standard 1-page Standard Flood Hazard Determination Form (SFHDF). These single-page forms present the essential question, “Is the Building/Mobile Home in a Special Flood Hazard Area?” with checkboxes to indicate “Yes” vs. “No.” It is not uncommon for the checkbox to be incorrect for one of many reasons, including but not limited to, the certificate being produced on the wrong property, or it is based on an imprecise assessment of structure location in relation to the flood zones. The SFHDF is a text-only document and a one-dimensional snapshot of flood status that could be based on outdated or incorrect data. Homeowners, lenders and investors deserve clearer, better information. Best Course for Due Diligence Around Flood Status For any endeavor requiring confirmation of your true flood status, it is best to secure an official, certified and insured flood zone determination report that uses a comprehensive approach to confirming accurate flood status. An ideal provider will utilize the most up-to-date and available data, highly detailed mapping, (including FEMAs Effective FIRMs and any Preliminary FIRMs that may exist) as well as absolute precision in identifying structure location. An ideal provider will issue certified and insured reports protecting the user from liability due to Errors and Omission. And you should have access to support from trained experts like Certified Floodplain Managers (CFMs). Precision and expertise are the best assets for obtaining a clear picture of a structure’s official flood zone status and in

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The Overlooked Component of Due Diligence

Eliminating the Luck Factor in Investment Decisions By Nicholas DeSumma Knowledge, timing, and luck are often considered key variables that play into a successful real estate investment. However, those that successfully invest in real estate over long periods of time while adapting to various market cycles often can eliminate “luck” from their equation and substitute it with expanded knowledge. As an investor, continuously analyzing and refining the key questions — who, what, when, where, why and how — will help expand the knowledge component. The “who”, “when” and “why” are often answered prior to investing in loan or asset pools as they tie to the initial purpose and overall strategy of the endeavor. The remaining components arguably tie more to supporting the investment strategy: What // What asset type and class should be targeted, with emphasis on condition, level of investment, and overall financial upside in supporting the overall strategy? Where // Which market(s) should be considered based on determined opportunity, knowledge, and resources? How // How will the investment be funded? Have funds been raised or will there be a debt structure, such as through a private lender? Drilling in on the “what” component, and as the “what” is answered, an imperative component to execute on opportunity resides in proper due diligence. Conducting proper due diligence can become an artform as it is not only reliant on coordinating with various vendors, data providers, and relevant third parties, but it requires effectively and efficiently aggregating the obtained information in a method to make a decision in an accurate and timely manner. The Due Diligence Process During the due diligence process, there is a tremendous amount of focus tied to a property’s characteristics, such as square footage, bedroom and bathroom count, current value, and current condition, as well as its investment opportunity — renovation scope and cost, repaired value, market conditions between end user buyers and renters based on the strategy. An area that is often overlooked given its diversity and ability to effectively and timely aggregate viable data are a property’s intangibles: title, liens, violations, taxes and delinquencies or dues, such as those associated with a homeowner’s association. Understanding which loans or assets to acquire, as well as what strategy to implement, will drive the investment opportunity forward. However, an improper understanding of what was formally and legally acquired, as well as what legal obligations the investor is now tied to through the acquisition, can often, and drastically, derail the investment. Accordingly, Guardian Asset Management has created an unparalleled ecosystem to better support the entire due diligence process, with additional emphasis on the aforementioned property intangibles. Embedded within this ecosystem is the successful marriage of the various service pillars (as well as the various data elements that drive due diligence decisions), including renovation, maintenance, preservation, evaluation, single family rental management, asset disposition, and title services. Title services, inclusive of the various other property intangible components, can be a cost-adverse and lengthy process yet remains crucial to those seeking to invest in loans and assets. Combatting the Challenges The expectation for additional delinquent loan and distressed asset trades or acquisitions is prominent given current post-pandemic market conditions. With this expectation should come further consideration towards better understanding the intangibles of a property for various reasons, such as:  »         The prevalence of multiple transfers of vested ownership via Quit Claim Deed during the loan servicing and/or foreclosure process can delay or even bar the conveyance of a property due to recording delays at best and missing legal instruments at worst.  »         The merger, acquisition, and dissolution of many lending and servicing entities can stall any efforts at resolution should there lack a clear chain of succession and authority to correct essential legal documents.  »         Homeowner’s associations, tax collectors, and local code enforcement entities have become more proactive in recording liens and judgments to encumber title and ensure payment collection, even when outside of the bounds of statutory rules.  »         Title insurers have taken a more conservative approach on insuring over any encumbrances on title that do not have completely indisputable resolution on record, refusing to insure even with prior insured policies or indemnity from prior insurers.  »         Lending institutions have returned to more conventional and stringent requirements regarding clear versus insurable title policies, potentially shrinking the potential buyer pool and negatively affecting investment return, which could pose challenges on an investor’s exit strategy.  »         The ability to obtain financing for investors through private or hard money can be jeopardized if title or related issues are not easily resolved through the general investment strategy, such as resolving a violation for overgrown lawns. As a best practice to combat these increased challenges, partners that leverage product diversity, such as tax, municipal and code searches, will assist in not only ensuring more effective investment decisions, but mitigate risk with potential financing partners. An effective partner is not one that just delivers timely results, but it is one that advises on the diverse products and data available to align the right resources for the decision being made. Guardian’s philosophy is to not only ensure investors have access to all services, but to also advise on when to leverage each. These include title reports (Ownership & Encumbrance, Current-Owner Search, Two-Owner Search, Full Search, and Foreclosure Search), data tapes with abstracting documents, customizable lien priority flags to triage assets, tax certifications, municipal lien and code searches, homeowner’s association verifications, title clearance and curative services, assignment verification reports, replacement title policies and collateral document preparation and reconciliation services. A commonality between investors, regardless of the investment, is to create value and discover opportunity to expand. While the “luck” element may factor into being in the “right place at the right time” or “having the stars align,” it is no mistake that those who successfully expand their venture into a long-term operation eliminate luck by refining modeling and layering in tools to better analyze, decision and forecast. While the intangible side to real estate may be less glamorous, potentially

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Preventing Rental Fraud

How to Protect Your Properties from Potential Fraud By Justin Lieberknecht Fraud is out there. Whole call centers in India devote themselves to software fraud, bank fraud, gift card fraud, and rental fraud. According to the FBI’s Internet Crime Complaint Center, 11,578 people reported losing more than $350 million to fraud in 2021. The losses are likely much higher, as many scams go unreported, and some are stopped before money changes hands. Protecting your properties from potential fraud is an undertaking that requires diligence, attentiveness and awareness of what techniques are being used. Gathered here are what Poplar Homes has seen and what we and our affiliated companies have done to mitigate the risk of fraud. Where Does Fraud Begin? Most fraud cases start with a rental listing ad offering a “too good to be true” low monthly rent and then the situation escalates from there, up to and including the renter signing a fraudulent lease agreement, wiring the first month’s rent and deposit, and then eventually getting evicted by the “real” owner or property management company. Scammers will frequently take ads from legitimate websites, grabbing photos from Zillow, Apartments.com and others, and then reposting them on Craigslist, Facebook Marketplace and other listing sites as a rental with their contact information. The ads can have slight changes to the address, such as an added apartment number or unit number, or a change from “Street” to “Avenue.” We have seen ads with the numbers spelled out, so that 123 Main Street is listed as One-Two-Three Main Street. This is to try and keep the fraudulent ad from being detected by the real owners. The ads may have watermarked images or poor descriptions of the home. They may represent the actual company managing or owning the property, but they all have the scammers’ contact information. Major listing sites, such as Zillow, have made huge strides in eliminating these from their site, while no progress has been made on Craigslist and Facebook Marketplace. The unmoderated nature of these sites allows for fraud and places the burden on the property manager or owner to track their listings. Several companies, including FirstKey, American Homes for Rent and Progress, regularly scan these sites for illegitimate listings by checking the addresses of their own properties. Once a scam is found, it is reported by flagging it to the site, and then the scammer’s contact info can be used to search the site for additional listings that are fraudulent. To alleviate concerns over the often-low rent being charged, the fraudster, sometimes in the ad or sometimes in the first communication, will use a variation of a “need and reward” based storyline. The most common of these are:  The Religious // The scammers will represent themselves as religious and say that they are either changing churches or going on a mission trip, and thus the opportunity to rent the home. They compound this by presenting that they are looking for someone holy. This preys on the need to believe in a better-than-usual opportunity and helps potential renters move past the issues surrounding the unusualness of the situation. The Military // The scammers will represent themselves as an enlisted member of the military who has been assigned to a new base. This move has placed him in a situation where, because of the military housing subsidy, he can offer below market rent. The scammer will often advise that he is looking for someone with military-level cleanliness. This preys on the perception of the target that they are unusually clean and tidy, which is irrelevant to the situation. Steps to Prevent Fraud Scammers are getting better and better at walking people past yard signs, fraud alerts and even phone calls with the property manager or owner. The claims vary, but the scammer will advise the potential renter that they are working with the company and bypassing them will save money. Scammers have also claimed to be a part of the listing company and generate fake leases with the company information on it. When trying to stop this fraud, there are physical, technical, and engagement methods to put in place. Poplar Homes has found great success by having the following restrictions in place when generating codes:  »         No VOIP numbers (these are common for scammers as they can be generated easily).  »         A requirement for credit card, ID, and selfie (this adds friction and awareness to the shopper and eliminates the ability of the scammer to generate their own codes).  »         Numerous in-app messages and automated emails educating renters to never wire money for payment and to make all payments through Poplar’s platform.  »         Physical signs placed around the property (these state “this property is managed by Poplar Homes and if you are being advised otherwise, please contact us immediately.”) This can also be an automated text during the showing.  »         An attempt at direct contact (if you can contact the shopper while they are at the home and verify their situation, they can clarify any third-party involvement). When encountering someone who has been defrauded, Poplar Homes will first attempt to qualify them for a home we have available or even the home they are currently in. We have had success with this. We also offer assistance with reporting the incident to the appropriate authorities. In the case of fraud, it is necessary to insert as many points of friction as possible for the renter to bring their attention to the possibility of fraud. Each of these insertions will decrease the number of people who are fully defrauded. We get reports of fraud and do all we can to report it on the platforms hosting it. Poplar Homes places awareness moments throughout the process, and when someone is defrauded, we do all we can to avoid eviction. For the successful alleviation of fraud levels, a standard statement of prevention should be given to the press when any event occurs. It is possible to continue to reduce fraud as we have seen drastic

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Succeeding in Real Estate in Oklahoma

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Do Not Get Caught Up in the Weeds  Matthew Hicks is an independent business owner with HomeVestors® of America, Inc. in Oklahoma City, which he started in 2019 after graduating from Washburn University in Topeka, KS. His primary focus is on buying, rehabbing and selling residential properties. Life Before HomeVestors Upon graduating college with a degree in Accounting & Finance and “baseball,” Matthew bought his franchise in 2019 at the age of 24 in Oklahoma City. Outside of a brief four-month internship with a lending company while in college, he began his company, Sunrise Property Solutions, with minimal experience in the real estate world, relying on strong mentors and the proven systems within HomeVestors. The Beginning of Sunrise Property Solutions Matthew settled in Oklahoma City with his wife, Mackenzie, so they could be closer to family. Mackenzie, a nurse by training and profession, and also a real estate agent, recently joined the real estate company full-time handling asset dispositions. The Oklahoma City real estate market is strong and has grown drastically over the last few years, according to Matthew. “It is a strong rental market and also strong for first-time homebuyers,” said Matthew. “That is why we focus primarily on single-family rentals and currently buy about 17-20 houses per year.” Oklahoma City has seen steady growth in both its population and its economy over the years. With a low cost of living and a diverse range of industries, it’s a great place to invest in real estate. “It is one of the most consistently growing housing markets in the United States,” Matthew explained. In October 2022, Oklahoma passed a law basically making some forms of “wholesaling” illegal. The Oklahoma Predatory Real Estate Wholesaler Act (the “Wholesaler Act”) prohibits many wholesaling activities by banning public marketing prior to closing. Because the “Wholesaler Act” was passed only recently, the exact application and scope of the legislation remains unclear, which is why Matthew does not do wholesaling.  Matthew spent his first two years in real estate learning about rehabs and working with contractors. Admittedly, he said starting out he made mistakes regarding over-estimating rehab costs. However, with experience, mentors and proven systems in place, he has overcome those rookie mistakes. Present Day With four years now under their belts, Matthew and Mackenzie have two new career goals: Buying 35 homes in 2023 and having 50 houses in their portfolio paid off by the time he reaches 50-years old. “And with Mackenzie joining the company full-time just a few months ago, the company is well-positioned to achieve those goals.” Advice from an Expert “I followed the HomeVestors systems right out of the gate,” said Matthew. “So, my advice for anyone just getting started in real estate is quite straight-forward:” •          Find systems you can trust. •          Find a mentor early on to avoid costly mistakes. •          Do not get caught up in the weeds. •          Learn how to work with contractors. Homevestors What exactly does it mean to be a HomeVestors® business owner? Owning a real estate business is life changing and naturally comes with risks! When you become a HomeVestors business owner, you get immediate access to motivated seller leads, financing resources for qualifying purchases and repairs, one-on-one coaching with your local Development Agent, proprietary software for analyzing properties and deals, and access to a nationwide network of coaches and peers. Your house-buying business is yours and you run it as your own venture with a focus toward your individual business goals. If you are interested in a franchise, call 866-249-6932, email Sales@homevestorsfranchise.com or visit www.homevestorsfranchise.com. Each franchise office is independently owned and operated.

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