HomeVestors of America Inc., the real estate investment company behind the "We Buy Ugly Houses" billboards, today announced that Franchise Brands LLC has acquired a majority interest in the company.

Founded in 1989, HomeVestors sold its first franchise in 1996 and has a network of about 230 franchise offices in 35 states.

The company, which seeks to buy houses and resell them to investors and other buyers for a profit, has bought about 35,000 homes since its launch.

Franchise Brands was created in 2005 with support from the founders of Subway restaurants. That company owns Bajio Mexican Grill, a Mexican gourmet restaurant chain based in Utah; and Mama DeLuca’s Pizza, a quick-serve pizza restaurant chain based in Indiana.

"Franchise Brands was founded on a basic principle: to invest in small and mid-market companies that demonstrate the potential for franchising," according to the company’s Web site.

While Doctor’s Associates Inc., the franchise company for the Subway sandwich chain, does provide support for Franchise Brands, the companies operate separately.

Terms of the deal were not disclosed.

HomeVestors bought 6,400 homes and sold 5,000 last year, and the company bought about 7,100 properties in 2006.

John Hayes, HomeVestors president and CEO, told Inman News earlier this year that the company’s franchise offices haven’t had any problem buying houses for a good price in this housing market downturn. "There are more houses to buy than we can possibly buy at great, fantastic prices. The question is: What are we going to do with them?"

In a statement about the acquisition, Hayes said, "The past 12 months have proven to be challenging for most real estate-related businesses, including HomeVestors, but when the real estate market completes its correction and begins to expand again, HomeVestors will be … situated to continue expanding, too."

He also stated that no changes are expected in the management team for HomeVestors. Hayes has served as president since late 2004 and CEO and chairman since January 2005.

***

What’s your opinion? Leave your comments below or send a letter to the editor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription