HomeVestors of America
| Company type | Private |
|---|---|
| Industry | Real estate investment |
| Founded | 1996 |
| Founder | Ken D'Angelo |
| Headquarters | Dallas , United States |
Area served | United States |
Key people | Larry Goodman (CEO) |
| Products | Real estate investment franchises |
| Parent | Levine Leichtman Capital Partners and Management (since 2017) |
| Website | homevestors |
HomeVestors of America, Inc., operating under the brand name We Buy Ugly Houses, is a privately held franchisor specializing in real estate investment within the United States. Franchise operators acquire properties requiring renovation or rapid disposition, subsequently refurbishing and either reselling or leasing them. With a presence in 45 states and a network exceeding 1,100 franchise locations, the company's main office is situated in Dallas, Texas, led by CEO Larry Goodman.
History
Established in 1996 by real estate professional Ken D'Angelo, HomeVestors commenced franchising activities that same year, achieving 17 franchisees and approximately $800,000 in revenue by the end of its inaugural year. The milestone of selling its 25,000th home was marked in Jonesboro, Georgia. Typically, franchise owners retain properties for an average duration of six months.
1997 By the following year, HomeVestors had expanded to 30 franchises and generated revenues totaling $1.7 million.
2003 The company broadened its footprint to 135 offices spanning 17 states. Early in 2004, it established a partnership with The Home Depot as its exclusive supplier for building materials.
2004 HomeVestors introduced a real estate-owned (REO) program designed to purchase single-family residences from franchisees and resell to note investors. That year also saw relocation to a larger corporate headquarters and the debut of the mascot “UG” the Caveman, accompanied by a refreshed slogan, "UG Buys Ugly Houses," which was promoted through billboard campaigns and television advertisements. Following founder D'Angelo's diagnosis with terminal cancer, John Hayes assumed the CEO role in September; D'Angelo passed away in January 2005.
2007-2009 Amidst the subprime mortgage crisis, HomeVestors focused on assisting homeowners facing financial hardship who required expedited property sales. In June 2008, Franchise Brands LLC acquired a controlling interest in the company.
2017 By February 2018, HomeVestors had acquired its 85,000th property since its founding. In April 2017, ownership transitioned to Los Angeles-based private equity firm Levine Leichtman Capital Partners and Management, which supported ongoing expansion and business development efforts.
Proprietary Tools
Franchisees benefit from ValueChek, HomeVestors’ exclusive software platform that estimates repair expenses and projected market values post-renovation for single-family homes. Additionally, through collaboration with Local Market Monitor, the company produces annual "Best Markets to Invest in Rental Property" reports to assist investors in identifying promising single-family rental opportunities.
Criticism
A 2023 investigative report by ProPublica highlighted instances where certain franchise operators allegedly engaged in misleading tactics targeting financially vulnerable homeowners. The corporation responded by stating such incidents represent a minimal portion of overall business dealings.
Awards
On October 15, 2018, Franchising Times recognized HomeVestors as the "third fastest-growing franchise in America."