Originally posted at: http://robcaldwell.homevestorsfranchise.com/insider-interviews-john-tesh/
We are thrilled to share our secondexclusive Insider Interview with you, this time featuring John Tesh, a Greensboro HomeVestors franchisee. John’s franchise, Citygate Homes LLC, purchases multi-family and single family homes in a five county area in the Triad. They closewholesale deals through theDeal Maker Sessions™ and sell rehabbed properties on the MLS. Before joining HomeVestors, John spent thousands of dollars with gurus with nothing to show for his investment. We can all learn from his experienceand his success as a franchisee. Welcome to the blog, John!
Tell us about your early experience with real estate investment. How did you fallinto the “guru trap” and how did you get out?
In the late seventies I sold my first home after living in it for three years and cleared more money with the sale than I had made that entire year. It was then that I knew I would be involved in real estate somehow, someday. My career path led me to advertising /commercial photography and I ran my own studio for 18 years. I had no systems in place then, but I began my real estate investing career in 1993 by buying the building that housed my studio. The owner was retiring and willing to finance it. It was a 12,000 square foot 4 bay commercial building. I had already spent a lot of money outfitting my space, so it made sense to protect my investment. I went from paying $2,200.00 a month tomaking$2,400.00 a month.
I bought my first two duplexes in 1998 off of the MLS and overseveral months, I ended up buying the entire block. These properties were a short walk from a major university, but they were all in desperate need of a complete rehab. I loved turning this run down neighborhood into a thriving little college community. We had very little turnover and I managed them myself. But it wasn’t until 2012 that I got into rehabbinghouses, when my wife, Corinne made the suggestion.
We attended several of the traveling guru’s boot camps and purchasedexpensive systems that we put into action. We started Citygate Homes, LLC in 2013 and began creating our own marketing materials and implementing rehabbing systems. My wife’s professional career in New York as an interior designer and project manager for a Fortune 50 company proved instrumental onour new journey. We built a website, started a letter campaign and were even doing bandit signs. (I personally hate those signs and we stopped after several months.) The phone was ringing, but it was mostly “take me off your list,” “our house is not for sale,” or “how did you get my name, I’m calling the police” kind of calls. We were building our brand but it was a very, very slow process. We scoured the MLS everyday and made 20-30 offers a month with fewresults to show for our efforts. Realtors dreaded our phone calls and in the end, ignored them. I don’t blame them– I would have ignored us too!
Our first flip was a foreclosed single family home we bought off the MLS. It was our first time working with this realtor and she kept apologizing for the homes condition. After a quick tour we said “It’s perfect… It needs everything.” It was a two-story house in a great neighborhood. The gutters were falling off, the pool was full of leaves and frogs, and the inside was straight from 1961. We got it under contract and began our real estate career. Corinne handled the contractors, design, and finishes while I focused on marketing our new company and finding the deals. The renovation was a lot of fun for us. We had a great time shopping for cabinets, light fixtures, and appliances– even though thiswas a huge distraction.
We did find several additional “pocket deals” through our realtor network and rehabbed two other properties. We had great success with the houses we were able tofind andthey all sold within a week after listing them. When we were working on our flips, we took our eyes off of our marketing efforts and our stream of leads slowed to a crawl. In September 2014, we received an email invitation that would change our lives forever. It was from someone we had heard of but had never met…
Jim Williamshas been in the business for 10 years and had amassed a huge rental portfolio and was buying 35-40 houses a year on his own. He had joined HomeVestors of America (The “We Buy Ugly Houses” people) in 2013 and their buys doubled the first year. He and another franchise owner and coach, (they are called DA’s or Development Agents) Rob Caldwell had started a monthly meeting calledDeal Maker Sessions™, where wholesalers present off market, non-MLS properties to a room full of investors. Corinne and I attended, liked one of the properties and viewed it the next day. We bought it on the spot from one of Jim’s buyers. When we asked how was he able to buy so many houses he said “let’s do lunch, and I’ll show you how we do it.”
I was used to a scarcity mentality with other coaches, but Jim came from a world of abundance, sharing and caring. He told us about his ownHomevestors Franchise and how it included incredible systems, a national brand, true local one-on-one coaching, and best of all, really incredible leads. We did our due diligence, and in December 2014, we attended the HomeVestors national convention in New Orleans– the next week we were at training in Dallas as newly-signed franchisees. It’s a wonderful thing when all the franchisees and coaches work together as a cohesive team, and you still get to own your own business!
Your home-buying business took-off after you joined HomeVestors. What changed?
HomeVestors providedeverything we neededto build our business at light speed. We no longer had to worry about which list to buy, designing our direct mail letters, or even mailing them out. Best of all, we didn’t have to build a business from scratch and reinvent the wheel. The national branding was really important to us. Its incredible to imagine that collectively HomeVestors franchisees have bought over 65,000 houses since 1996.
Additionally, real estate investing can be a lonely business so the coaching and mentoring at a local level was something that really attracted us to HomeVestors. Everyone is ready willing and able to help with anything you may need. We all work together as a team. The systems they have are incredible and are there to help guide and protect you. We have national relationships with a wide-range of helpful companies like Home Depot, insurance companies, moneylenders, paint companies… you get the picture.
After learning the systems in Dallas, our marketing efforts began bringing us motivated sellers on January 1st of this year, and the phones haven’t stopped ringing since. We went from meeting with one or two clients a month to three a day… a day! They say be careful for what you wish for, it may come true. We have surpassed our goals and have bought 18 houses since August. Can you tell we’re fired up over here?!
As a rehabbing expert, what do you look for in a home? What constitutes a property “deal-breaker” for you? Are there any qualities in a home that make it the ideal rehab?
The house we bought from Jim at that Deal Maker Session was a “hoarder house” that was totally trashed– but it was the worst house in a great neighborhood. We did our comps and knew it was a great buy. The properties we rehab are the ones in those good neighborhoods and great school districts that sell quickly. For our flips, we stay away from rural areas or where majority of the houses are rentals. Also the house has to have, as my wife calls it, “good bones”. If the property is on a small lot, on a busy street or has a weird floor plan, we avoid rehabbing and usually wholesale those properties.
Your business is located in the Winston-Salem/Greensboro North Carolina area. What is the real estate investment market like there now? What do you predict 2016 will hold?
We are in a stable to somewhat depressed retail market here in the Triad area. If the house is rehabbed to a high standard and priced correctly, it will sell quickly– and with multiple offers. The rental market is good and there are plenty of investors hungry for those. Because of the Deal Maker Sessions, our wholesale market is incredibly strong. I know 2016 is going to be another great year for us.
If you could tell someone looking for a franchise opportunity one thing, what would it be?
Find a company with the same morals and beliefs as you. More importantly, know their reputation and their work ethics. I can truly say I have never experienced a better group of people in my life than our HomeVestors community. With HomeVestors, the teaching and mentoring isrealand it comes from the heart. Everyone truly wants you to succeed.If you follow their systems and coaching, you can reap the benefit of their national branding and marketing– and success is easily within your reach.
Thank you for reading! You can learn more about franchising,here.
