Deciphering Real Estate Brokerage Opportunities
There are many reasons why you should look for real estate franchises to buy. Some of the benefits include higher ROI, ownership cost, less competition, and lower cost of marketing. With technology taking over and new trends constantly emerging, it has never been easier to own and operate one of the many real estate brokerage franchise opportunities available.
However, investing in real estate franchise opportunities is not an easy task. There are so many to choose from, the range of businesses could be baffling. This is why we’ve put together this list of six of the best real estate franchises to buy.
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Property Management, Inc. (PMI)
Founded in 2008, Property Management Inc. is a business that specializes in rental property management and real estate services and has around 300 franchisees. It has been ranked as the number one property management franchise on multiple occasions by Entrepreneur Magazine.
When you buy a PMI franchise, you’ll be licensed to use its name and branding for 10 years. Your franchise will operate in a specific geographic location, offering services in the residential, commercial, association, and vacation rental sectors. You’ll have a territory classed as ‘standard’ (more the 100k population) or ‘local’ (less than 100k population).
You won’t have to be ‘hands-on’, though the franchisor does prefer you to be fully involved with your business.
You could own a PMI franchise for around $50k, though this cost can be as much as around $200k or more, depending on your business model, location, and other factors.
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HomeVestors of America, Inc. (HoA)
If buying, rehabilitating and selling residential and commercial properties get you passionate, the HomeVestors of America, Inc. could be the perfect franchise for you to own.
First established in 1996, more than 1,100 franchisees operate businesses under the HoA brand. While you will have a territory, it may not be exclusive to you. There are two franchise models in the HoA portfolio. The first is a full franchise, which has a higher initial fee, but lower ongoing fees than the second model, the associate franchise. You can operate either on a full-time or part-time basis.
As an HoA franchisee, you will be expected to participate fully in the business, with the initial franchise term being five years.
Very much a home-based business, the profit margins can be exhilarating, though this is reflected in total franchise cost that can be more than $400k.
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Hommati
Hommati is one of the youngest companies on our list of real estate franchises to buy in 2021. As a Hommati franchisee, you will provide real estate professionals with services such as 3D interactive tours, virtual staging, agent biography videos, and augmented reality services.
Hommati says it is opening a new franchise every seven days, with startup investment as low as around $23,000. Your monthly fixed costs are low, too, meaning high margins in a business that is fun. The services you provide are gaining in popularity, too, which bodes well for business potential.
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HomeTeam Inspection Service(HI)
The business of HomeTeam Inspection Service is to assist buyers, sellers, and real estate professionals with a range of residential and business inspection services. These may include:
The company has been trading for more than 25 years and offers exceptional training (technical and business) to new and existing franchisees. Most of its new franchisees have no previous real estate experience.
Many of its franchise owners come from sales, financial, and military backgrounds. They are self-starters with great interpersonal skills. And the investment? HI says this is likely to be between $10k and $90k.
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Realty ONE Group (ROG)
Realty ONE Group was founded in 2005 and boasts more than 8,500 real estate professionals working in more than 70 offices across 17 states in the USA.
It provides new franchisees more than 140 hours of on-the-job training, and the support it offers as you pursue real estate deals include:
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Site selection
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Field operations
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Online support
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Toll-free line
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Newsletters
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Full marketing support
The initial investment is up to around $250,000, with royalty fees of 2%. Should you invest in one of ROG’s real estate franchise opportunities, you will also pay a 2% royalty fee and sign up for an initial term of 10 years.
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Real Property Management (RPM)
Originally founded in 1986, Real Property Management (RPM) has been franchising since 2004. It claims to be the leading property management group in the country. Its franchises are usually granted for metropolitan areas of more than 100k population, though it does make exceptions.
The company provides full training, with franchise agreements covering an initial 10 years. As a franchisee, you will provide multiple services that include tenant screening; rental payment processing; property inspections; maintenance and repairs; and processing of evictions.
Your customers will include property owners, investors, and real estate agents. You can expect fantastic support for your business, including marketing and RPM’s innovative systems and processes.
How much will all this cost? You should expect to invest somewhere between $100k and $175k.
Choose your real estate business, then look for your franchise opportunity
For those who are looking for a real estate franchise opportunity, there are many options to choose from. The franchise opportunities we have outlined highlight the range of services you could provide, as well as the range of experience and investment required. Simply put, there is something for everyone.
If you can’t see your ideal real estate franchise opportunity on this list, don’t despair. Take our franchise aptitude test, and then book a free consultation with New Ground Consulting. We will open the world of real estate franchise opportunities for you.