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HomeVestors@ is the largest home buying network anywhere. As a result of our 13 year,,we Buy Ugly Houses"@ national branding campaign and buying power, we buy propefties

most investors never see. We buy at deep discounts, renovate and sell exceptional investment

opportunities to other investors at great discounts'

HomeVestors franchisees have tremendous residential investment opportunities in your town -

For more information, call 800-704-6992 or sign up for our FREE investor list at

www.homevestors.com and click on the "lnvest in Real Estate" button.

Richmond, Virginia - BusY medicalfacilities project manager buildsinvestment portfolio with rentalproperties.

lnvestment Opportunity - MattHufnagle sought advice from PennState alum and friend Chas Carrier

who now owns a HomeVestors franchise in Dallas, Texas,

C&C Residential Properties, Inc. C&C, along with other

companies owned by Carrier provides turnkey services

to entry-level homebuyers and a core group of investors

holding rentals as long-term investments.

lnvestor Profile - Hufnagle wanted a specific price range

matching his investment capacity. He wanted a propefty

that was already rented to a reliable tenant. "This is a

long-term investment to help pay for my children's college

education," saYs Hufnagle'

HomeVestors' Contribution - "We are in a market

that's very appealing to a start-up investor," said C&C

Residential Properties, Inc. franchise owner Carrier'"lf you're investing in a property out of state you have

to have a trust factor and we always have access to

appealing inventory at attractive prices," said Carrier'

Chas Carrier, Dallas, Texas.

Kansas City, Missouri- SePtember2008. A new generation of investors ismaking money in a slow economy.

Investment OPPortunitY - BuY 13rental homes in four years at the bestprices ever. Kansas City is a strongrental market in anY economY, but

particularly now if you make a living selling homes' Mark

Sprecker is a Realtor@ with RE/MAX@ Alliance who has

added investing to his home sales skills.

lnvestor Profile - The ability to buy, rehab and rent

homes has broadened Sprecker's financial base and

income. Using HomeVestors' experience and skills has

increased his investment capacity. Sprecker knows when

values are dropping and credit is tight; families stil l need

to live somewhere. Even renters need affordable homes,

in move-in condition and near good schools.

HomeVestors' Gontribution - J.D. Asbell, the local

independently owned and operated HomeVestorsfranchise owner can't fix every ugly house that comes

his way. When Sprecker met Asbell, supply met

demand. Sprecker has bought 3 below market value

houses from Asbell in 2008' J.D. Asbell- De Soto,

Kansas.

HomeVestors' franchisees have great residential investmentopportunities in cash flow positive markets.

HomrUmswoR$'AMERICA'S #1 HOME BI'YER

HomeVestors franchisees . Finding ugly houses to buy at a discountare experts in: o Turning these houses into great investment

opportunitieso Helping busy investors wishing to build

real estate portfolios acquire below-marketinvestment grade properties.

Macomb, Michigan - September2008. To survive a crisis or help thosein crises requires a positive attitude andpersonalact ion.

Investment Opportunity - MikeCiaramitaro, former owner of thesuccessful Mr. Rooter@ plumbing

franchise saw an opportunity in helping people in needof homes after foreclosure. When he needed houses, heturned to the leading professional home buying franchise,HomeVestors.

Investor Profile - Ciaramitaro now buys, rehabs andrents homes and now has a portfolio of 13 homes,buying 8 below market value properties from the localindependently owned and operated HomeVestorsfranchisee, Motor City Homebuyers, LLC.

H omeVestors' Contribution - " HomeVestors alwayshas a supply of homes," says Ciaramitaro. Some ofthe homes have already been rehabbed by Motor CityHomebuyers; others Ciaramitaro renovates. All havebecome quality properties for eager renters. "And intough times that means a win-win for everyone," saysCiaramitaro. Jeff and Kim Drake, Redford, Michigan.

Alpharetta, Georgia - August 2008.Full-time executives with busy careersare the next generation of real estateinvestors.

Investment Opportunity - Buy abelow-market rent-ready 3 bedroomhome from a local HomeVestors

franchisee. This property began as a fire and waterdamaged shack. lt is now a secure house that a renterand her kids call home.

Investor Profile - Robert Brandes is a busy seniormanager in a major financial services company. Brandesis invested in primary and second homes and a low-riskmix of CDs, stocks and bonds. His investments nowinclude positive cashflow rental propefty.

HomeVestors' Contribution - The knowledge that this isa good time to invest in real estate is meaningless withoutthe expertise provided by the local independently ownedand operated HomeVestors franchise owner.

Each HomeVestor's otfice isindependently owned and operated.

For more information call 1-800-44BUYER (clz-se3z)or visit HomeUestors'.comEach franchise office is independently owned and operated.

Welcome to HomeVestors@

Seruing AmericaAt Personal Real Estate Investor

Magazine, we are always in searchof the better idea. HomeVestors@ ofAmerica, Inc. has that better idea.Their idea is so good, in fact, we

respectfully suggest that even they may underestimate the

value they offer you, your neighbor, your neighborhood, or

America.Their good idea provides benefits to: home sellers,

homebuyerg investorE and people who want to learn how

to invest, find part-time employment that gives them the

opportunity to improve their net worth, and to those who

want to transition into an entrepreneurial semi-retirement.In this supplemen! we explain how thousands of aver-

age folks can benefit from HomeVestors@ values.

VALUE PROPOSITIONHow did the idea evolve? HomeVestors@ is the brain-

child of the late Ken DAngelo. He created an approach to

help everyday people solve the dilemma of a hard-to-sell

or "ugly" property. DAngelo's process has helped more

than 4O000 puzzled homeowners solve the knotty prob-

lem of the unsalable house, and turn it into a benefit for

everyone involved.Simply stated, the idea is to buy a property (improved

or not) renovate it, and sell it to a first-time or seasoned

homebuyer or investment buyer who is looking for a rea-

sonably priced property.Now, motivated individuals can benefit from

DAngelo's process and values. His principles have been

incorporated in the HomeVestors@ franchise system which

teaches the franchisees how to use the system to buy,

rehab and sell houses. The system that has been developed

and refined from buying and rehabbing more than 40,000

houses can be implemented by franchisees who have a

passion to build wealth through single-family real estate'

This idea has been a franchise since 1996.

WE BUY UGLY HOUSES@Along the way, HomeVestors@ developed the nation-

ally recognized slogan "We Buy Ugly Houses@," and the

ubiquitous icon, "IJG" a caveman, that as legend goes,

began buying houses millions of years ago'Solving "ugly house" problems and "ugly situations"

is less than half of the story. HomeVestors@ has now devel-

oped well beyond the simple buy, fix and self to many

variants of buy, fix, and hold.Buyers include first-time homebuyers, but also inves-

tors and regular folks, all trying to secure their children'seducation or nest egg savings in investment-grade real

estate that is more secure, and certainly more tangible,

than many other investment opportunities'

EVERYONE WELCOMETo deliver their promise of investment real estate for

everyone, HomeVestors@ has expanded their model of

local HomeVestors@ franchisees finding, improving, and

selling, to include recruiting early-stage investors looking

for guidance from a trusted name and a Proven system.HomeVestors@ now sells associate franchises that

receive advice and support from an experienced inves-

tor/development agent that is already part of the

HomeVestors@ system in their market. The new associate

franchise may be working to build a personal portfolig

bring real estate investment to friends and family, or build

a full- or part-time career after leaving corporate America'

HomeVestors@ answers the big question: How do I get

started, or grow in this vastly underserved $32O-billionbusiness* of investing in American housing?

This is their story, as told by a duly impressed pub-

lisher and staff. HomeVestors is managed by principled

people who have fun, and do well by doing good for the

community and their many customers. This story is about

the hopes and benefits of a great idea.

God Bless and Good Investing

-2008 The Invaluable lnvestor study conducted by Personal Real EstateInvestor and Lore magazines with polling assistance from Hanis Interactive.

t

HOW TO USE THISPUBLICATION

Whether th is i s your f i rs t in t roduc t ionto HomeVestors@ or you ' re a seasonedf ranch isee, there is a fea ture in th ispubt ica t ion fo r you . C i ty o f f i c ia l .s wonder inghow HomeVestors@ can cont r ibu te tomun ic ipa t i t ies? We've a spec ia I a r t i c tehere to address your cur ios i ty . How canHomeVestors@ benef i t [enders? We've go ttha t here too . Anyone f rom a f i rs t - t imeinves tor to those look ing fo r ways to makereaI es ta te a f u t t - t ime career can f ind the i rperspec t ive addressed here . And, i t ' s co tor -c o d e d t o m a k e f i n d i n g a r t i c t e s a s n a p .

TABLE OF GONTENTS

EContact information:

www.Homevestors.com800-44BUYER1800-112-8937t

For more information or a subscript ion go to:www. PersonalRealEstatelnvestorMag.com

l*mnnnUusrnm$AI'ERICA'S #I IIOIIE BI.TYEB

How You GanBenefit From Real Estate

h e v a [ u e o f A m e r i c a n h o u s i n gt r a n s a c t i o n s i n 2 0 0 7 w a s $ 1 . 1 5t r i t t ion , invo lv ing some 5 .85 mi t -

[ i o n h o m e s . A v e r a g e A m e r i c a n s p u r -chased 28 percent o f these houses fo r

inves tment purposes . *D o n o t c a t I

t h e s e p e o p t e" rea I es ta teinves to rs . "T h e y ' r ei n d i v i d u -

a t s w i t hs o m eo f t h e i rw e a I t hI n v e s t -

ed in res ident ia I rea l es ta te . The pop-u tar no t ion o f rea I es ta te inves tors i sthe [a te -n igh t TV, fou l , -mouthed housef t ipper , rea I es ta te inves tment educa-t i o n h u c k s t e r , s t u m t o r d , o r s p e c u t a -to r . (Unfor tunate ty , th is minor i ty hasbecome the s te reo type o f " rea I es ta teinves tor " tha t b tankets the en t i re g roupa n d m a s k s t h e g e n u i n e b e n e f i t s o f t h epro fess ionaI home buy ing indus t ry . l

AN ACCIDENTAL MAJORITYD e s o i t e W a t I S t r e e t ' s a r t i c u t a t e

marke t ing vo ice , manyAmer icans havea c q u i r e d h o u s e s b y c i r c u m s t a n c e sb o t h i n t e n t i o n a l a n d a c c i d e n t a L . S o m ep u r c h a s e d h o u s e s f o r r e n t a I p u r -

poses , wh i te o thers inher i tedo r r e c e i v e d h o m e s p a s s e da l . o n g b y f a m i t y m e m b e r s .E i t h e r w a y , t h e r e a I e s t a t e

h a s r e a I v a t u e t o t h e c u r r e n to w n e r , r e n t e r , o r s u b s e q u e n t

D uye r.0 f t e n t h e o w n e r [ s o m e o n e w h o

i s u n a b t e t o s e t l a h o u s e t h e y o w n lb e c o m e s a n a c c i d e n t a [ [ a n d t o r d a n d

s tumbtes b t ind ty in to a s i tua t ion tha thas t r ipped up many exper ienced

[a nd lo rd s.The pro fess ionaI p rop-

er ty manager manages ren ta l .h o u s e s a n d a p a r t m e n t s . T h eo r o f e s s i o n a I f i n a n c i a I a d v i -

sor adv ises on f inances . The pro-f e s s i o n a I r e a I e s t a t e

a g e n t h e t p s b u yo r s e t I h o u s e s .U n f o r t u n a t e t y ,there are no pro-

f e s s i o n a t s t o h e t pd e c i d e h o w t o u s e

t h i s r e a I e s t a t e t o i t s

grea tes t advantage. 0 f ten , the so tu t ioni s t o s e t l a n d g o t o c a s h . l f t h e h o u s ei s i n d i s r e p a i r a n d " u g t y , " t h e a n s w e rmay be to se t I as - is .

F IND A HOLE & F ILL ITH o m e V e s t o r s @ ' m i s s i o n i s t o

t r a n s f o r m t h i s p r o b t e m . T h e y p r o v i d ea wor thwh i te resu t t fo r the house tha ti s u n t o v e d , o r a s H o m e V e s t o r s @ h a st rademarked the express ion , UGLY.

Ken D 'Angeto began by buy ing d is -t ressed houses , o f ten f rom ind iv iduaLsw h o w e r e g o i n g t h r o u g h d i f f i c u L t t i m e sand needed to se t t . Usuat ty the housew a s i n p o o r c o n d i t i o n a n d f a r f r o mt h e i d e a I r e s a t e h o m e . R a t h e r t h a nattempt to promote the

'ugty ' home as

a rea I es ta te agent , D 'Angeto dec idedt o r e s c u e t h e h o m e s e t t e r a n d b u y i t .Many o f these se t te rs d id no t have thecap i ta t to ge t the proper ty in to cond i -t i o n t o s e t l a t r e t a i t . I n f a c t , i n m a n yc a s e s t h e y n e e d e d m o n e y q u i c k i y .B y p u r c h a s i n g t h e p r o p e r t y a s - i s ,D ' A n g e t o h e t p e d t h e s e t t e r o u t o f a nugty s i tua t ion . Then he renovated i t toa h a b i t a b t e c o n d i t i o n o r b r o u g h t i t u pt o d a t e , a n d s o t d i t a t a f a i r p r i c e t o ahomebuyer or to an investor who mayhave purchased th is type o f home fo rren ta I purposes .

RECYCLING HOMESH o m e V e s t o r s @ a n d t h e i r c t i e n t s

are the u l t imate recyc ters ." U g t y " h o u s e s t e n d t o b e o t d e r

houses , in o tder ne ighborhoods, o f tenloca ted c tose to the c i ty . D 'Angeto andH o m e V e s t o r s @ w e r e a h e a d o f t h e i rt i m e . T h e y u n d e r s t o o d t h a t m a n ywel l -bu iL t o tder homes were Locatedin ne ighborhoods tha t were geograph-

*Source: National Association of Realtors @

i c a [ t y d e s i r a b t e b u t i n n e e d o f r e n o v a -t i o n . T h e s e h o m e s t e n d t o b e c t o s e r t omajor employers , and w i th today 's gasp r i c e s , t h i s m a k e s t h e m e v e n m o r ea t t r a c t i v e . T h i s i s e s p e c i a t t y r e t e v a n ti n t i g h t e r e c o n o m i c t i m e s a s p e o p t er e a I i z e t h a t i t i s n o t n e c e s s a r y t o c o m -mute to Lead a be t te r l i fes ty te .

H o m e V e s t o r s @ w a s a n d i s af o r c e f o r n e i g h b o r h o o d r e n o v a t i o n .B y r e m o v i n g t h e u g t y h o u s e s i n t h e s en e r g h b o r h o o d s , t h e v a L u e o f t h e e n t i r en e i g h b o r h o o d i n c r e a s e s . F i r s t - t i m eh o m e b u y e r s a n d w i s e h o m e b u y e r sknow tha t the to ta I cos t o f homeown-e r s h i p i s o f t e n a d v a n t a g e o u s w i t h aw e t t - t o c a t e d h o m e i n a n e i g h b o r h o o dt h a t d e m o n s t r a t e s p r i d e o f o w n e r -s h i o .

REAL ESTATE FORTHE REST OF US

D ' A n g e t o r e a t i z e d h e h a d a w i n n i n gf o r m u t a : b u y i n g , i m p r o v i n g a n d s e t l i n gh o m e s a t a f a i r p r i c e t o n e w h o m e o w n -e r s , i n v e s t o r s a n d a s p i r i n g I a n d t o r d s .Others saw the success , the goodwr t t ,a n d t h e v a t u e o f t h e e n d e a v o r , a n d a s aresut t , the HomeVestors@ of Amer icaf r a n c h i s e w a s b o r n . S a d t y , D ' A n g e t owas taken weLI be fore h is t ime, dy ingo f c a n c e r i n J a n u a r y 2 0 0 5 . H e w o u t dhave been proud to see the la tes t evo-[ u t i o n o f h i s i d e a .

O v e r t h e [ a s t d e c a d e , t h e p r o f e s -s i o n a I h o m e b u y i n g i n d u s t r y - b u y -i n g , r e n o v a t i n g , a n d s e t t i n g h o m e s -h a s c h a n g e d . H o u s e p r i c e s r o s e a n dm o r e h o m e o w n e r s a c q u i r e d b r a n dnew homes.

H o m e V e s t o r s @ b e c a m e a s o u r c eo f d i s c o u n t e d h o m e s f o r i n v e s t o r s .D u r i n g t h e l a s t y e a r a n d a h a t f , a s t h er e a I e s t a t e m a r k e t t i g h t e n e d , t h e s er e n o v a t e d h o m e s d i d n o t s e t [ a s r a o -i d t y . T h e y b e c a m e p a r t o f t h e i n v e s -

to rs ' por t fo t io , as wet t - toca ted , fa i r ty -p r i c e d r e n t a L p r o p e r t i e s .

W i t h t h i s g r o w t h a n d e v o t u t i o nc a m e c h a t l e n g e s t h a t c r e a t e d h u g eo p p o r t u n i t i e s f o r a s t r o n g b r a n d w i t hh i g h s t a n d a r d s a n d a s u s t a i n a b L e b u s i -n e s s m o d e t :

1 . Serve se t te rs o f "ugLy" andu n m a r k e t a b L e r e s i d e n t i a I r e a Ies ta te

2 . H e t p i n d i v i d u a t s [ e a r n a b o u tr e a L e s t a t e i n v e s t m e n t

3 . Par t i c ipa te in reaL es ta ter n v e s t m e n t

/ r . Create an oppor tun i ty fo rp e r s o n a L w e a t t h

5 . 0 f fe r par t - t ime emptoymentf o r t h o s e w h o w i s h t o t r a n s i t i o nf rom corpora te Amer ica in to se t f -emptoyment o r even semi - re t i rement

6 . Buy , recyc [e , and se t [ "ug ty "

n o u s e s7 . H e t p r e n o v a t e a n d r e - b u i t d

e n t i r e n e i g h b o r h o o d s8. Serve f i r s t - t ime homebuyers

9 . E d u c a t e b e g i n n i n g i n v e s t o r s1 0 . B u i t d p e r s o n a I p o r t f o t i o sH o m e V e s t o r s @ o f f e r s a n s w e r s

t o e a c h o f t h e s e o p p o r t u n i t i e s .H o m e V e s t o r s @ i s t h e [ a r g e s t a n dm o s t r e s p e c t e d s o u r c e o f h a n d s - o nreaI es ta te so tu t ions fo r se t te rs , buy-e r s , a n d t h o s e d e s i r i n g a f u t t - o r p a r t -t i m e a c a r e e r i n r e a I e s t a t e i n v e s t -m e n t .

WHY SHOULD YOU CARE?H o m e V e s t o r s o f A m e r i c a ' s i n n o -

v a t i v e a n d p u r p o s e - d r i v e n f r a n c h i s ei s a n o p p o r t u n i t y t o r e a c h y o u r g o a L s ,h e l p o t h e r s r e a c h t h e i r g o a t s , a n dh e t p r e - b u i t d n e i g h b o r h o o d s .

W e d e s i g n e d t h i s s u p p t e m e n t t oe x p t a i n t h e H o m e V e s t o r s @ b u s i n e s s ,b e n e f i t s , a n d o p p o r t u n i t i e s t o a n y o n ew h o m a y b e i n t e r e s t e d i n s e t t i n g a nu g [ y h o u s e , b e c o m i n g a c t i e n t i n v e s -t o r , o r p a r t i c i p a t i n g a s a n a s s o c i a t e o rf uL t f ranch isee. E l

The HomeVestors@ ExperienceAs Much As You Want, From Awakening To Wise Investor

Learn to Invest in Property Invest in Property Invest, Help Others & Earn

F n f r o n r o n o r r r -

Business OpportunitiesF-"k"'*s CI Early Investor fffi

lnvesiing in property does not have to be a disconnected process,especially with a trusted brand like Homevestors and their "learnthrough earn" plan1 The investor may decide that gelting involved in the business,beyond simply investing, is an ideal transition to a part{ime or full-time endeavor and begin as an associate franchise workingalongside an experienced full-service franchisee2 Alternatively, an entrepreneur may choose to buy a fullservicefranchise

Why nea! estate

Main Street Wall Street?a t l S t r e e t p o i n t s i t s f i n g e r a tt h e c u r r e n t h o u s i n g m a r k e ta n d t e t t s y o u t h a t r e a I e s t a t e

h a s I o u s y r e t u r n s . Y e t , a c c o r d i n g t o t h eNew York T imes, Wa[ [ S t ree t has los tan es t imated $4 t r i lL ion in the co t Iapseo f f o r m e r A - t i s t c o m p a n i e s C i t i g r o u p ,A l G , M e r r i t L L y n c h , a n d B e a r S t e a r n s .L e h m a n B r o t h e r s ? l t ' s g o n e T h e i rs h a r e s a r e w o r t h n o t h i n g , n o t e v e n a srecyc ted paper a t $60 a ton .

THE BOTTOM CAN'T FALL OUTOF A BASEMENT

The d i f fe rence be tween rea les ta tea n d t r a d e d a s s e t s i s t h a t n o o n e r e a t -[ y n e e d s L e h m a n B r o t h e r s s h a r e s t oI i ve . Food, water , c to th ing , and shet te rw i l t a tways be in demand. Even i f yourproper ty va tues have dropped, you s t i t to w n s o m e t h i n g .

T h e p r i n c i p t e s o f r e a t e s t a t e i n v e s t -m e n t a r e s i m p l e a n d t h e v a t u e s g e n e r -a t [ y u n d e r s t a n d a b I e ; a n y o n e w h o h a sever ren ted or bought even one homec a n g r a s p t h e b a s i c s .

MAN VERSUS MACHINEWa[ [ S t ree t invo tves a [eve [ o f edu-

c a t i o n t h a t m a n y d o n o t h a v e t i m e t of i t i n o n t o p o f j o b a n d f a m i l y . l t a t s oinvoLves t rus t ing someone to do some-t h i n g y o u d o n ' t c o m p l e t e t y u n d e r s t a n d .I T h e r e a r e m a n y r e c e n t e x a m p t e s o fw h y t h i s i s n o t a g o o d i d e a . l T h e i n d i -v i d u a l r e t a i I e q u i t y i n v e s t o r l y o u a n dm e ] a r e t r a d i n g a g a i n s t v a s t i n s t i t u -t i o n a I i n v e s t i n g a n d p r o g r a m t r a d i n gm a c h i n e s . T h i s i s I i k e s h o w i n g u p t oa g u n f i g h t w i t h a k n i f e l P e r s o n a I r e a Ie s t a t e i n v e s t m e n t c a n b e m u c h m o r em a n a g e a o [ e .

THE FEE BEHIND THE ADVICE?ReaI es ta te has h is to r ica [y appre-

c ia ted a t about an average o f 4 percentp e r y e a r , a n d t h a t i s j u s t o n t h e c a p i t a ti n v e s t e d . A s i m p t e c a p i t a I v a I u e c o m -o a r i s o n m i s s e s t h e b e n e f i t s o f r e a I

oro c t : t a

u t i t i t y ,

W h e n b u y e r s p u r c h a s e p r o p -e r t y w i t h a m o r t g a g e , c a s h - o n - c a s hT e t u r n s c a n b e m a n y t i m e s [ a r g e r . l t ' sa s o u n d [ o n g - t e r m s t r a t e g y . ( L o o k a tN e w E n g t a n d ; p e o p t e t h e r e a r e s t i l [L i v i n g i n 3 0 0 - y e a r - o t d h o m e s . H o wm a n y s t o c k s a r e s t i [ [ a r o u n d f r o m t h e191+0s, Let atone Ihe 1740s?)

L IOUIOITY VERSUS SECURITYA t t h o u g h t h e i n n e r w o r k i n g s o f

s t o c k a n d b o n d s a r e m u r k y , t h e y a r ee a s y t o p u r c h a s e . J u s t c a t L y o u r b r o k e r

- " - h - e m n r f n r n a l o v o r : n o) u L r r d J l l r u r ( v q 9 E r E v c r q v s ,

r e n t a I i n c o m e . a n d t a x a d v a n -o r g o o n t i n e . T h e m e c h a n i c s o f b u y i n gh o L d i n g , a n d s e t t i n g r e a I e s t a t e a r en o t a s s t r a i g h t f o r w a r d R e a I e s t a t ed o e s n ' t d o w e t [ a s a s h o r t - t e r m t r a d e da s s e t b e c a u s e o f t h e c o s t a n d p r o c e s s

o f b u y i n g a n d s e t l i n g r e s i d e n t i a I r e a Ie s t a t e ; i t i s h i g h c o m p a r e d t o s t o c k sa n d b o n d s . F o r a n i n v e s t o r { v e r s u s+ - ^ , { ^ - l - ^ - i ^ - r - + ^ - ^ h h ^ + h ^ i . l ^ - lt l d u g l i . I g d t c ) ( o t E L d r l u g t r r c r u c o L

b u y a n d h o [ d . A n d , i n v e s t o r s m a y u s em o n e y f r o m t h e i r s e t f - d i r e c t e d i n d i -v r d u a I r e t i r e m e n t a c c o u n t .

C o n s i d e r t h e r e t u r n s o n $ 1 0 0 . 0 0 0cao i ta I inves ted on WaL[ S t ree t versusin rea I es ta te See char t be tow.

Source: Pereonal Real Estate Investor Magazine January

COMMON STOCK VS. REAL ESTATE VALUES

Common Stock Real Estate(Traded Assets) (Non-Traded Assets)

cap i ta l Inves ted $ loo ,ooo $1oo,ooo

Nature of Asset Stock certificate Title to hard asset

Va lue o f Asset Cont ro l led Up to $2OO,OOO ( in ra re Up to $1 mi l l ion and(through leverage) circumstances; for most beyond, over time, depending

is s imp ly $1OO,OOO) on loan te rms, depos i trequ i rement . and length o f t imethe property is held

Purchase Price Market price May be found and boughtAt under market prices

Market Efficiency Supreme (everyone pays Very low (opinions of sellersthe same price for a given sellers, appraisers, bankersstock at any given time) appraisers, vary wildly

resulting in great opportunities)

Potential for Value None - Pray! Renovation. refurbishing, etc.Improvement (may be l00o/o deductible

or depreciable)

When Can Appreciation Upon sale At any point from re-leverage,Be Realized? refinancing, to sale

Cash Ffow During Tiny dividends, Income from rentalHolding Pedod? if you're lucky

Depreciation Zero

Inflation Protection Zero

Return Upon Any Sale Actual stock value 1. May have compoundingappreciation on up to$1 mi l l ion and more

2. Plus improvements (typicallymore than money spent)

3 P lus anv ren ta l income4. Less expenses5. Less deoreciation6 Tax deductions7. Hold >366 days, profit taxed

at capital gain rates

On bu i ld ings , improvementsand chattels over accounting l ife

Both rental income and Saleprice may be indexed to currentmarket, and value adjusted forinflation

Help Now!

try!

l

Tools To Rescue Your RetirementI n t h e p a s t y e a r , m a n y A m e r i c a n s

I have Ios t near ty 50 percent o f the i rI w e a t t h . T h i s i s e s p e c i a t t y t r u e f o r

those who were inves ted in s tocks ,bonds, and funds . Much o f th is weat thhas been erased because o f a down-turn in the economy, some i t l -advisedinves tment be ts , and jus t p ta in f raud.B o o m e r s g e t t i n g c t o s e r t o t h e e n d o fthe earn ing and sav ing years a re par -t i cu la r ly vu tnerabte .

There are two oo t ions to meet th ischa I tenge:1 . Downs ize goats , l i ve and re t i re moremodestty.2 . Use the too ts ava i tab le to res to re[os t va tue and re -bu i td the por t fo l . ioas fas t as ooss ib [e .

HomeVestors@ sys tems and f ran-ch isees can ass is t concerned Boomerswi th rea l he tp , r igh t now.

CONSIDER THISWise investors have always known

t h a t w e t t - b o u g h t a n d w e t t - f i n a n c e dr e a I e s t a t e i n v e s t m e n t s c a n u s u a t t ygrow fas ter , and more secure ty , thanany o ther type o f asse ts - per iod .

Now, the po ten t ia I o f rea I es ta te ,c o m b i n e d w i t h t h e c u r r e n t m a r k e t[ t h e b e s t t i m e i n a g e n e r a t i o n t o b u y

res ident ia I rea I es ta te l , i s a good t imeto invest igate how to get invotved andwhom to t rus t as a resource .

Buy ing res ident ia I rea t es ta te i sa b o u t t h e f u n d a m e n t a I s t r a t e g y o fc a r e f u t t y a n a t y z i n g t h e t r a n s a c t i o nto evatuate the opportunity for reve-n u e o r w e a t t h . T h e o u e s t i o n m u s t b eanswered; i f you buy i t , f inance i t , andrent i t , a f te r you pay a t t the month lye x p e n s e s a n d m o r t g a g e p a y m e n t s ,w i t t i t p rov ide a re tu rn?

T o d a y t h e r e a r e h u n d r e d s , i f n o tthousands, o f ren ta l home cand ida tesin a t t rac t i ve ne ighborhoods and c i t iesthat of fer investors oosit ive cash f tow.T h e s e t r a n s a c t i o n s c a n w o r k f i n a n -c i a t l . y w i t h o u t h o m e v a t u e a p p r e c i a -t ion and tax benef i t s . ITax benef i t s anda p p r e c i a t i o n b e c o m e e x t r a b o n u s e sw o r k i n g f o r t h e i n v e s t o r , d e p e n d i n gon persona l tax s i tua t ions and fu tu reapprec ia t ion ra tes . l

PATIENT & IN CONTROLR e s i d e n t i a I r e a I e s t a t e , a s a n

inves tment asset , does no t lend i t se t fto t rad ing . The percept ion tha t f t ipp ingh o u s e s w a s I i k e t r a d i n g s t o c k w a sbased on er roneous assumot ions andinves tment f ash ion ; fa r f rom the rea t -

i ty of steady returns.I n v e s t i n g o n

W a t t S t r e e t d o e sn o t f a v o r t h e s m a [ [r e t a i I i n v e s t o r w h om u s t c o m p e t e w i t hi n s t i t u t i o n a I i n v e s -t o r s , s o v e r e i g n a n dh e d g e f u n d s , a n dn o w , g o v e r n m e n ti n t e r v e n t i o n . A n y

i s i l t u s o r y ; t h e p a r -t ies and mechan ismsi n v o t v e d i n s t o c kmarke t inves t ing areh a r d t y t r a n s p a r e n t

to the ind iv iduaI inves tor . There is fa rm o r e c o n t r o I i n a n y r e s i d e n t i a I r e a Iestate investment.

H o m e V e s t o r s @ f i n d s a n d s e t t sr e a I e s t a t e a n d t e a c h e s t h e i r i n v e s -t o r c t i e n t s h o w t o b u y a n d i n v e s t .Anyone interested in the opportunit iesrea I es ta te o f fe rs to bu iLd or rebu i tdweat th , can a t ign w i th HomeVestors@t o a c q u i r e i n v e s t m e n t g r a d e p r o p -er ty as a buyer , learn how to inves ta s a c u s t o m e r , o r j o i n a s a n a s s o c i -a te f ranch isee and work w i th the bes tr e a t e s t a t e i n v e s t m e n t t e a c h i n g a n dsuppor t o rgan iza t ion in the U.S.

Beyond buy ing and se t t ing fo r per -sonaI ga in , work ing w i th HomeVestorso f fe rs a par t - o r fu t t - t ime career fo rt h e t r a n s i t i o n i n g B o o m e r , o r a n y o n ewho has a pass ion fo r rea l es ta te andis look ing fo r an a t te rna te career env i -r o n m e n t w h e r e e n t r e p r e n e u r s a r enur tu red and rewarded.

VISIT YOUR RETIREMENTReaI es ta te has phys ica I p resence.

You can v is i t i t , l i ve in i t , and even ren ti t to o thers to l i ve in o r work in wh i tethey pay your mor tgage and increaseyour equ i ty . You can use i t s va tue asl e v e r a g e t o b u y m o r e p r o p e r t i e s .Depending on your personal s i tuat ion,the expenses may be deduct ib l .e . Th isa s s e t i s s e c u r e d w i t h r e a [ , t a n g i b t eva lue . And, i t may apprec ia te in va lue .

Yes , there are some t iqu id i ty d is -advantages in ho td ing a t [ your weat thin rea I es ta te . l t i s imoor tan t to seekgood f inanc ia l adv ice on how to es tab-[ i sh a ba tanced por t fo t io where incomeand inves tment in rea I es ta te pLay agreater ro te in anchor ing and lever -ag ing ind iv iduaI weat th .

We invi te you to learn more abouti t . The wors t th ing tha t can happen incons ider ing th is op t ion is tha t you w i t lget a usefuI answer. !

Call HomeVestors@ today at 1.800.44.BUYERor visit the website at www.HomeVestors.com

It

[fmnnrllrsTomsattERrcA's #l lrollE BI'YER

How lt Works

I

I

We Buy Ugly Houses@ & Sell Louely Homesou may own an ug [y house you th inkno one cou ld poss ib t y wan t t o buy .Y o u m a y b e t o o k i n g f o r a r e s a [ e

h o m e i n a w e t t - e s t a b t i s h e d n e i g h b o r -hood su r rounded by t a [ [ t r ees , bu t youneed a good p r i ce as we t [ .

H o m e V e s t o r s @ o f A m e r i c a m a k e sb u y i n g a n d s e t t i n g h o u s e s s i m p t e . W i t happ rox ima te t y 200 i ndependen t [ y owneda n d o p e r a t e d f r a n c h i s e e s i n 3 8 s t a t e s ,HomeVes to rs@ i s a na t i ona I f r anch i sec o m p a n y w i t h m o r e t h a n 1 3 y e a r s o fexpe r i ence . The doub ts abou t se I t i ng anu g t y h o m e , s u c h a s n o o n e w i t t b u y i t , "" i t n e e d s r e p a i r s , " " l d o n ' t k n o w w h a tr e p a i r s i t n e e d s , " o r " l ' m a f r a i d l ' [ [ b et a k e n , " a r e d i s p e t t e d b y d e a t i n g w i t hHomeVes to rs o f Amer i ca , an accoun t -ab te , r epu tab te na t i ona I company .

P e o o t e s e [ [ t h e i r h o m e t o aHomeVes to rs@ f ranch i see fo r a va r i e t yo f r easons . Some inhe r i t p rope r t y t heyneed to se t t qu i ck t y , some need to re lo -ca te immed ia te t y , and some own homeswh ich need more repa i r s t han they canhandte. Wi th HomeVestors@, they quick-t y and w i th as f ew hass tes as poss ib tework w i t h a company they know t rea tsthem w i th respec t and hones ty . A t t se t t -e r s have to do i s f i t t ou t an on t i ne f o rm

te t t i ng HomeVes to rs@ abou t t he house .A HomeVes to rs@ rep resen ta t i ve [ f r an -ch i see ) w i t l ca t t t o a r range a t ime to seethe house . l f t he house mee ts t he i r c r i -t e r i a , t hey ' [ [ o f f e r an amoun t d i scoun tedf rom the re ta i I va [ue o f you r house i f i tw e r e f u t t y r e n o v a t e d . H o m e V e s t o r s @f ranch i sees a re p ro fess iona I homebuy -e rs who buy homes be tow marke t va luet o r e s e t l t h e m f o r a p r o f i t . G e n e r a t l y ,t h e y c a n c t o s e q u i c k t y , p a y c a s h , b u Yas - i s , and usua t t y pay aLL no rma I c tos -i ng cos ts , a tL o f wh i ch many peop te f i ndconven i en t .

l f y o u ' d t i k e t o b u y a h o m e ,H o m e V e s t o r s @ m a k e s b u y i n g w o r r y -f r e e . N o , y o u a r e n o t b u y i n g a n U g t Y

house . Each HomeVes to rs@ house hasb e e n e x a m i n e d b y o n e o f i t s t r a i n e df ranch i se rep resen ta t i ves . AL l ' r epa i r shave been made by con t rac to rs t he f ran -c h i s e e k n o w s a n d t r u s t s . T h i s r e d u c e sthe chances o f su rp r i se repa i r b i t t s . Youw i t t b e e n c o u r a g e d t o h a v e t h e h o u s einspec ted by a t i censed i nspec to r p r i o r t oc tos ing . You w i t l have the peace o f m indt h a t c o m e s f r o m k n o w i n g Y o u r h o m ehas been checked f rom top to bo t tom. l ft he home has been rehabbed , t he f r an -ch i see w i t t t e t t you exac t t y wha t repa i r s

w e r e m a d e , w h i c h f i x t u r e s o r a p p [ i a n c -es a re new, and wh ich a re o r i g i na I t o i hehome. Buy ing a HomeVes to rs@ house i sa good way to keep repa i r expenses a t am t n t m u m .

A HomeVestors@ house is generat tYm o r e a f f o r d a b t e f o r f i r s t - t i m e b u y e r st h a n n e w h o m e s o r h o m e s I i s t e d w i t hr e a I e s t a t e a g e n t s . S i n c e t h e y t e n d t ob e [ o c a t e d c l o s e r t o t h e c i t y , s h o p p i n g ,s c h o o t s , a n d s e r v i c e s , t h e t o t a l . c o s to f homeownersh ip i s gene ra t t y l owerWhen you work w i t h a HomeVes to rs@f r a n c h i s e e , y o u h a v e s o m e o n e t o g u i d ey o u t h r o u g h t h e e n t i r e p r o c e s s , i n c t u d -i n g h o w m u c h t o s p e n d o n a h o m e . 0 u rf r a n c h i s e e s o f t e n w o r k w i t h f i r s t - t i m eh o m e b u y e r s , a n d a r e r e a d y t o a n s w e rany ques t i ons . Seve ra I f i nanc ing op t i onsm a y b e a v a i l a b t e t o y o u , e v e n i f Y o u rc red i t i s [ ess t han pe r fec t .

Th rough a spec ia I a r rangemen t w i t hs e v e r a I b a n k v e n d o r s , i n c l u d i n g B a n ko f A m e r i c a a n d C o r n e r s t o n e M o r t g a g eP a r t n e r s , m a n y p e o p t e p u r c h a s e aHomeVes to rs@ house w i th I i t t t e t o nomoney down . Owner - f i nanc ing o onsa re somet imes ava i [ ab te as we t t .

Call HomeVestors@ today at 1-800-44.BUYERor visit the website at www,HomeVestors.com

Franchise Brands, ttcFranchise Brands, LLC bought a majority ownership of

HomeVestors@ of America last year. The Connecticutbased companyprovides investment capitalto small and mid-sized businesses that arerun by experienced managers and are either franchising or demon-strate the potential to franchise.Founded in 2005, Franchise Brands, LLC is also invested in BajioMexican Grill, Personal Training Institute, and Mama Delucas' PizzaNow.

The company's interest in HomeVestors@ began in 2007 whenit invested several million dollars in HomeVestors@ operattons. AsHomeVestors@ continued its expansion to approximately 200 fran-chise offices in 35 states, Franchise Brands, LLC decided to commitmore financial resources to help grow the company and develop theHomeVestors@ business model.

Franchise Brands, LLC's vision is to become the franchisor ofchoice for entrepreneurs. With an executive team experienced in all

phases of franchising, they have a solid network of relationships withbrokers, franchisees, and vendors. The team has extensive knowledgeand experience in structuring franchise systems and drafting franchisedocuments, as well as operational and accounting expertise. Financialresources may be available to assist. A member of the FranchiseBrands, LLC team acts as a liaison, at its expense, to partner compa-nies. The liaison is the primary point of contact for resources. Portfoliocompanies that Franchise Brands, LLC invests in remain in their head-quarters, running day-to-day operations. Owners retain ownership ofcompany stores while existing franchises move into the new partner-shio.

While the current real estate market is challenging, HomeVestors@is perfectly poised to begin expanding when the market conects, withthe support of Franchise Brands, LLC.

Contact: www,franchisebrandsllc.com

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Your First Home

Why You Should BUY FromHomeUestors@

b i t l s .

uy ing your f i rs t home can seemcompt ica ted and daunt ing . Howdo you know i f i t ' s in good shaPe

o r n o t ? E x a c t l y w h a t w i t l i t c o s t ? l syour c red i t good enough to qua[ i f y fo rf inancing? HomeVestors has the sotu-t i o n s t o t h o s e q u e s t i o n s a n d o t h e rcommon concerns o f ten expressed byf i rs t - t ime buyers .

Homes purchased bY HomeVestorsf r a n c h i s e e s a r e P r e - o w n e d , u s u -a [ t y i n e s t a b t i s h e d n e i g h b o r h o o d s .M a n y o f t h e h o u s e s a r e r e h a b b e di n t o l o v e t y , m o v e - i n r e a d Y h o m e s .E a c h H o m e V e s t o r s h o u s e h a s b e e n

t h o r o u g h l y e x a m i n e d b Y a ni n d e p e n d e n t t y o w n e d a n do p e r a t e d , w e t t - t r a r n e d ,H o m e V e s t o r s f r a n c h i s e e .

Repa i rs a re usuat ty made bYc o n t r a c t o r s t h a t t h e f r a n c h i s e ek n o w s a n d t r u s t s . T h i s r e d u c -

e s t h e c h a n c e s o f s u r P r i s e r e P a i r

You have the peace o f mind tha tc o m e s f r o m k n o w i n g y o u r h o m e

h a s b e e n c h e c k e d f r o m t o P t ob o t t o m . l f t h e h o m e h a s b e e nr e h a b b e d , t h e f r a n c h i s e ew i l . L t e t t y o u e x a c t t Y w h a tr e p a i r s w e r e m a d e , w h i c hf i x t u r e s o r a p p l . i a n c e s a r e

new, and wh ich are or ig ina tto the home. Buy ing a

house rehabbed bya H o m e V e s t o r sf r a n c h i s e e i s agood way to keep

repa i r expenses a ta min imum. Another

b e n e f i t o f b u y i n g a

r e h a b b e d h o m e f r o m a H o m e V e s t o r sf ranch isee is tha t i t i s genera t ty moreaf fo rdabte fo r f i r s t - t ime buyers thanother homes. That ' s because f ranch i -sees buy houses a t a d iscount due tothe proper t ies ' cur ren t cond i t ion , andw h e n t h e y s e i l . t h e h o u s e s , t h e Y c a nof ten share some o f the sav ings w i ththe nex t buyer .

When you workwi th a HomeVestorsf ranch isee, you have someone to gu ldeyou th rough the en t i re Process .

H o w m u c h c a n Y o u s P e n d o n ah o m e ? L o o k a t b o t h Y o u r i n c o m e a n dthe amount o f debt you have. The ru teo f t h u m b i s t h a t y o u r h o m e s h o u t dcos t somewhere be tween one and twot i m e s y o u r a n n u a t i n c o m e . W h e n Y o uappty fo r a mor tgage, your lender w i t [[ook a t your car and c red i t card pay-ments , wh ich shoutd no t genera t ty bemore than 36 percent to 40 percent o fyour g ross month ty income. Your [end-e r o r f i n a n c e a d v i s o r s m a Y h e t P Y o udetermine the bes t percent fo r yourtncome.

You w i t l have to come uP w i th ad e p o s i t c a l t e d e a r n e s t m o n e y w h e nyou make an o f fe r on a house, as weL[as a down payment and c tos ing cos ts .Generatty, buyers move in to their newhomes anywhere f rom 15 to 45 daYsa f t e r s i g n i n g p u r c h a s e c o n t r a c t s .H o m e V e s t o r s f r a n c h i s e e s a r e h a p p yto ta tk w i th you to f ind ou t what you ' reLook ing fo r and to learn how they canhe lp you.

Franch isees o f ten work w i th f i rs t -t i m e h o m e b u y e r s , a n d a r e r e a d Y t oanswer any ques t ions . They are a tsohappy to work w i th rea I es ta te agents

Before and After inHiland, Florida

i f you a t ready have one, bu t you don ' tn e e d a n a g e n t t o b u y a H o m e V e s t o r s @h o m e .

W h e n y o u b u y y o u r f i r s t h o m ef rom a HomeVestors f ranch isee, theyc a n a I s o h e t p y o u e x p t o r e t h e f i n a n c -i n g o p t i o n s a v a i t a b l e t o y o u , e v e n i fy o u h a v e [ e s s t h a n p e r f e c t c r e d i t .T h e y h a v e v e n d o r r e | . a t i o n s h i p s w i t hr e a I e s t a t e f i n a n c i n g p r o f e s s i o n -a t s w h o m a y b e a b t e t o h e l . p y o u g e ta p p r o v e d f o r a L o a n o n a h o m e t h a tyou can a f fo rd .

T h e r e a r e H o m e V e s t o r s f r a n c h i -s e e s i n t w o - t h i r d s o f t h e U . S . , w i t ht h o u s a n d s o f b e a u t i f u L h o m e s p e r -f e c t f o r f i r s t - t i m e b u y e r s . l t ' s o n e o ft h e e a s i e s t a n d s a f e s t w a y s f o r b u y -e r s a c r o s s t h e c o u n t r v t o m a k e t h e i rd r e a m s c o m e t r u e .

M a n y p o t e n t i a I h o m e b u y e r s s e et h e a d v a n t a g e o f b u y i n g i n w h a t i sp e r c e i v e d t o b e a d e p r e s s e d r e a Ies ta te marke t . They wouLd [ i ke to takeadvantage o f th is marke t , bu t a re no tready to buy a fo rec tosed home as- isa n d t a k e t h e r i s k o f h a v i n g t o r e p a i rt h e h o u s e a n d d e a I w i t h u n e x p e c t e drepa i rs themsetves .

B u y i n g f r o m a f r a n c h i s e , t h e f i r s t -t i m e h o m e b u y e r c a n g e t t h e b e s t o fb o t h w o r t d s . l f t h e y w a n t a " f i x e r

u p p e r ; " m a n y f r a n c h i s e e s w i t L f i xt h e s c a r y s t u f f - f o u n d a t i o n o r r o o fp r o b t e m s - a n d s e t [ t h e h o u s e i n a ni m p r o v e d c o n d i t i o n . 0 r , i f t h e f i r s t -t i m e h o m e b u y e r w a n t s a h o u s e t h a t ' sm o v e - i n r e a d y , t h e f r a n c h i s e w i t t f i n -i s h t h e r e h a b , a n d t h e h o m e b u y e r w i t ls t i t t ge t a good vaLue. f i

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Mill ion-dollar Resources

u s i n e E s a c u m e n . E d u c a t i o n .Ptann ing . Resources . These area few of the factors that are part

o f s u c c e s s f u I r e a I e s t a t e i n v e s t i n g .Reat is t i c inves tors know tha t bus inessand t i fe a re sub jec t to bumps a tong theway, mis takes w i t [ happen. However ,i t 's most vi tal to success that mishapsn o t o c c u r a s y o u ' r e j u s t b e g i n n i n g t olearn .

T o s t a r t f i n d i n g a n d p u r c h a s i n gproper t ies a t a d iscount , you have

t o d r i v e n e i g h b o r -h o o d s , r e s e a r c h

t a x r e c o r d s ,knock on doors ,s p e n d h o u r s

s c o u r i n g t h eI n t e r n e t , a n dv i s i t c i t y h a l l .or the county

s e a t . Y o u c a n a t s o c o n t a c t a l o c a tH o m e V e s t o r s @ f r a n c h i s e a n d t a k eadvantage o f the i r exper ience and vas tresources. They use the powerful "We

B u y U g t y H o u s e s @ " b r a n d t o a t t r a c tt h e b e s t o p p o r t u n i t i e s . M a n y f r a n -ch isees ac t as mentors fo r f i r s t - t imeinvestors.

HomeVestors soends mi t t ions o fdo t ta rs annuat ty on loca I and na t ionaIa d v e r t i s i n g . M a g a z i n e a n d b i t t b o a r da d s a t t r a c t t h o u s a n d s o f c a l t s p e rm o n t h f r o m p e o p l e w a n t i n g t o s e [ [t h e i r p r o p e r t i e s . F r o m t h o s e [ e a d s ,f r a n c h i s e e s s e t e c t o n t y t h e h o u s e stha t a re most [ i ke ty to p roduce thetype o f f inanc ia I resu t ts tha t inves torsd e m a n d .

F o r e v e r y t e n t o 1 5 p r o p e r t i e stha t a f ranch isee looks a t , one houseg o e s u n d e r c o n t r a c t . E v e n b e f o r ef ranch isees v iew a house, they con-duc t a compte te marke t anatys is onthe house; per fo rm hours o f de ta i tedin te rna I research , d r ive th rough com-p a r a b t e n e i g h b o r h o o d s a n d c o n d u c ta repa i r ana lys is and pro jec t ion . 0n tythen do they make an offer.

Franchisees in 38 states buy hun-dreds of houses every month. They'rea tways [ook ing fo r independent inves-tors to buy excess inventory. They cans e [ [ h o u s e s a s - i s a n d h e t p y o u i d e n -t i f y q u a t i f i e d c o n t r a c t o r s w h o c a nhetp rehab. They can a tso se t l you a

ren ta t - ready rehabbed proper -ty i f tha t ' s what you ' re look-i n g f o r . H o m e s r e h a b b e d b yH o m e V e s t o r s f r a n c h i s e e sh a v e b e e n c h e c k e d f r o m

t o o t o b o t t o m . T h e f r a n c h i s e ecan te t t you wh ich repa i rs were

m a d e , w h i c h f i x t u r e s o r a p p t i a n c -es are new, and wh ich are or ig ina I to

t h e h o m e . Y o u w i t [ b e e n c o u r a g e d t ohave the home inspected by a t icensedinspec tor o f your cho ice . Franch iseesp r i m a r i t y s e t [ s i n g t e - f a m i t y d e t a c h e dhomes, bu t they occas ionaI ty buy andse[ [ condos, town homes, row houses ,and o ther one- to four - fami ty dwet t -l n g s .

HomeVestors can atso hetp noviceinves tors ob ta in p r ices on comparabLeproper t ies in the [oca I marke t . 0 thers o u r c e s o f d a t a i n c t u d e t h e M u t t i o t eL i s t i n g S e r v i c e , [ o c a I a p p r a i s a I d i s -t r i c t d a t a , W e b s i t e s t h a t t i s t h o m e sfor sa | 'e , and many o ther sources . Ad r i v e t h r o u g h a t a r g e t e d n e i g h b o r -hood can reveal a weatth of data to asavvy inves tor , such as whether o r no t[oca I p roper t ies a re wet t -ma in ta ined,i f t h e n e i g h b o r h o o d i s i n t r a n s i t i o n ,the prevatence o f fo r sa te o r fo r ren ts igns , o r obv ious ne ighborhood prob-[ems. The most hones t and accura tesource o f in fo rmat ion is a tways yourown eyes.

I n g e n e r a t , l e n d e r s n e e d 1 0 p e r -cent o f the purchase pr ice o f a p rop-e r t y a s a d o w n p a y m e n t , p t u s c l o s -i n g c o s t s [ d e p e n d i n g o n y o u r c r e d i tscore l . HomeVestors f ranch isees canheLp gu ide you by care fuL ty anatyz ingy o u r i n v e s t m e n t g o a t s , y o u r e x i s t -ing resources and o ther fac to rs . Theyhave vendor re ta t ionsh ips w i th many[ e n d e r s a n d m a y b e a b t e t o h e t p y o uf ind the r igh t one to f i t your f inanc ia Ineeos.

Your [ocaI HomeVestors f ranchiseeis ava i lab te to mentor you th roughoutthe process o f [earn ing how to inves tin reaI estate. ! l

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And the "Winners" are ...

Second AnnualUgliest House of the Year GontestFoltowing are actual comments from the runners-up in theSecond Annual Ugtiest House of the Year Contest:

"For the highest entertainmentvalue, view the home from 5 p.m.to 5:30 p.m., when it's feedingtime for the guard dog next doorand allthe cat-sized rats that liveon the property."

"Our Inhabltant was an avld con-noisseur of Bud Light, Gatorade,and Zima. These were used forurine storage since the watei tothe home was turned off alongwith electricity."

h e n y o u b u y u g t y h o u s e se v e r y d a y , s o m e s t a n d o u tin memorv over t ime. Whi l .e

m o s t o f t h e h o u s e s H o m e V e s t o r s @b u y s a r e i n n e e d o f h a v i n g d e f e r r e dm a i n t e n a n c e a d d r e s s e d , w h e n y o uadver t i se tha t We Buy Ug l ,y Houses@you are bound to buy some tha t a rereat l ,y Ugty. However, the HomeVestorsF r a n c h i s e e s a r e a b t e t o t a k e e v e nreat ty Ug l .y houses and tu rn them in toh o u s e s t h a t c a n m a k e a h o m e f o r af i rs t - t ime buyer o r a fami ty need ing aren ta t .

0utstanding achievementsin ugtiness.

However, HomeVestors@ f ranchi-see Scot t Got t t ieb o f SNL Reat ty , LLCi n C h i c a g o t r i u m p h e d , w i n n i n g f i r s tp tace wr th a century -o td p roper ty in

"Simply the worst Depression erapack-rat houses I have seen in my25 years buying and rehabbing,"

.U.G.LY.... Ugly, Skanky,Smelly, YUCK"

a C h i c a g o n e i g h b o r h o o d . " D o g - b u t t

u g L y a n d c o n d e m n e d b y t h e c o u n t y , "h e d e s c r i b e d i t . T h e i n h a b i t a n t s p u tmic rowavabte food t rays and takeoutconta iners a round the house to ca tchthe ra in . The e tec t r i c i t y s t i t t worked,however . There was a s ix - foo t deepsrnkhote in the L iv ing room where thef toor had co t tapsed. The roo f had ro t -ted away in one bedroom to the po in ttha t leaves were p i t ing up on the f loor .Not a s ta tk o f g rass coutd be seen; asGot t t ieb sa id , "Apparent ty , the grasswas too scared to g row in th is p rop-erty."

G o t t t i e b s t o p p e d t h e c o n d e m n a -t ion and so td i t to an inves tor fo r to tva tue . l t was compte te ly rehabbed andso[d . Now i t ' s a beaut i f u I h is to r ic homewi th a happy owner . Th is i s recyc t ingreal estate the HomeVestors@ way.E

May - June 2009

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Associate Franchises

Where to Begin a Real Estatelnuestment GareerI f you want to inves t independent ty , bu t w i th the power o f a

I recogn ized na t ionaI b rand beh ind you, a HomeVestors@I assoc ia te f ranch ise may be r igh t fo ryou. Th is may be jus t

the oppor tun i ty tha t p rov ides a per fec t t rans i t iona I careerf r o m c o r p o r a t e A m e r i c a t o e n t r e o r e n e u r i a I A m e r i c a . A nassoc ia te f ranch isee has the oppor tun i ty to earn and inves twh i te work ing w i th a HomeVestors@ Devetopment Agentf ranch isee who o f fe rs some o f the bes t adv ice on how toinves t in res ident ia I rea I es ta te , based on the proven sys-tem devetoped by HomeVestors o f Amer ica , Inc . over thetas t 13 years .

COST EFFECTIVE QUALITYThe assoc ia te f ranch ise is a smat te r f ranch ise inves t -

ment oppor tun i ty wh ich uses the "We Buy Ugty Houses@"brand and ne twork , bu t a t tows f ranch isees to work f romh o m e f u t t - o r p a r t - t i m e u s i n g a p r o v e n s y s t e m o f b u y -i n g , r e h a b b i n g , s e t t i n g , a n d h o l d i n g h o u s e s . T h e p e r s o n a Iinves tment and f ranch ise cos t i s much more a f fo rdabte andcomple te than many o f the expens ive , se t f -p ro fessed gurus e m i n a r s o r i n v e s t m e n t c t u b p r o g r a m s . H o m e V e s t o r s @o f A m e r i c a h a s a p p r o x i m a t e t y 2 0 0 f r a n c h i s e I o c a t i o n st h r o u g h o u t t h e U . S . , m a k i n g t h e m A m e r i c a ' s # 1 H o m eBuyer w i th a reverence fo r quat i t y and s tandards .

T h e r e a r e m a n y a d v a n t a g e s t o b e c o m i n g a n a s s o c i -ate franchise over invest ing independentty. HomeVestors@suppt ies quaL i ty t ra in ing , ongo ing suppor t , and a ne tworko f f inanc ia I advantages inc tud ing v i ta t vendor re ta t ionsh ips .HomeVestors@ assoc ia te f ranch isees are immedia te ty rec-ogn ized by the pubt ic as c red ib te inves tors w i th f ie rce l .yorotected vatues.

VALUABLE SAFETY NETH o m e V e s t o r s @ c a n a t s o h e t p a s s o c i a t e f r a n c h i s e e s

t h r o u g h i t s t r a i n i n g a n d s u p p o r t . P r o b t e m s t i k e f i n d i n g amentor o r genera t ing enough good leads are so lved w i th anassoc ia te f ranch ise .

I n v e s t o r s a r e e d u c a t e d o n h o w t o b u y h o u s e s a tHomeVestors@ prices. They are taught effect ive exi t strat-eg ies fo r p roper t ies they buy . They can adver t i se p roper -t ies on HomeVestors@' Web s i te and use HomeVestors@f inanc ia I vendors . Assoc ia te f ranch isees are ass igned to aloca I Devetopment Agent , an exper ienced f ranch isee, fo r

ongo ing t ra in ing and suppor t . Assoc ia te f ranch isees don ' tneed to bu i l .d a team because they ' re cons idered par t o fthe Devetopment Agent 's f ranch ise team. They can use theDA f ranch ise o f f i ce and tap in to the f ranch ise 's resources ,wh i te ge t t ing the benef i t s o f the f u t t -serv ice f ranch isee 'sexper ience and ongo ing mentor ing . Through the f u t t -serv iceo f f i ce , they can appty to HomeVestors@ f inance vendors ,and use the resources o f the HomeVestors o f Amer ica , Inc .marke t ing knowledge devetoped over the Las t 13 years .

SHORTFALL TO WINDFALLOne o f the major i ssues fac ing many Amer ican pro fes-

s ionats as they reach the end o f the i r p tanned career a reu n p t a n n e d s h o r t f a t t s i n b u d g e t p t a n n i n g . W a t I S t r e e t h a snot been k ind to re t i rement sav ings funds . Thought fu t rea tes ta te inves t ing has many ways to f i x th is fa r more qu ick-Ly than t rad i t iona I equ i t ies inves tment . A HomeVestors@a s s o c i a t e f r a n c h i s e i s a n o p p o r t u n i t y t o b e g i n l e a r n i n gabout the pro fess ionaI home buy ing bus iness .

T h e r e ' s n o q u o t a f o r a s s o c i a t e f r a n c h i s e e s , a t t h o u g ht h e y a r e r e q u i r e d t o p a y t r a n s a c t i o n f e e s o f a t l e a s t$ 3 , 0 0 0 a n n u a t t y o n p r o p e r t y a c q u i s i t i o n s a n d s a t e s t oHomeVestors@. They are requ i red to spend a min imum of$1 ,000 per month on adver t i s ing .

Assoc ia te f ranch isees a lso rece ive many o f the samebenef i t s the fu t t -serv ice f ranch isees en joy , such as par -t i c ipa t ing in the Annua l Convent ion , Mid-Year summi t , anda t t e n d i n g A d C o u n c i I m e e t i n g s f o r n e t w o r k i n g a n d i n f o r -mat ionaI purposes .

GET STARTED ON THAT TRANSITION CAREERHow much does i t cos t to ge t s ta r ted? The in i t ia I f ran-

c h i s e f e e i s $ 1 2 , 0 0 0 . T h e a s s o c i a t e f r a n c h i s e e a t s o p a y s$ 1 , 0 0 0 m o n t h t y f o r a d v e r t i s i n g t o g e n e r a t e [ e a d s t o b u yhouses . An au to-dra f ted month ty fee o f $300 pays fo r the i rp a r t i c i p a t i o n i n t h e f r a n c h i s e s y s t e m . A s s o c i a t e f r a n c h i -sees a lso incur t rave I cos ts fo r in i t ia I t ra in ing . For a homeof f i ce , they need a computer , phone, insurance, and o f f i cesu pp t ies .

T o b e a p p r o v e d , p r o s p e c t i v e a s s o c i a t e f r a n c h i s e e smust compte te a reques t fo r f ranch ise cons idera t ion anda personat i t y p ro f i te assessment , a t tend D iscovery Day inDat [as o r [oca t ty w i th a Deve lopment Agent , and submi t a

Asset Enterprises renovatedthis Houston home.

f r a n c h i s e a p p l . i c a t i o n a n d p e r s o n a If inanc ia I s ta tements . HomeVestors@w i t L t h e n r u n a c r e d i t r e p o r t a n d ac r i m i n a I b a c k g r o u n d c h e c k .

A H o m e V e s t o r s @ f r a n c h i s e m a yn o t b e a f i t f o r e v e r y i n v e s t o r . M a n yi n v e s t o r s m a y s i m p t y w a n t t o b u yhouses f rom HomeVestors@ assoc i -a te f ranch isees and fu t t -serv ice f ran-c h i s e e s .

To de termine i f a f ranch ise is r igh tfo r you , go to www.homevestors .coma n d r e g i s t e r t o r e c e i v e a d d i t i o n a Ii n f o r m a t i o n a n d l e a r n m o r e a b o u ta c a r e e r i n r e a I e s t a t e i n v e s t i n g b ybecoming a f ranch isee. f l

Call HomeVestors@ today at 1-800-44-BUYERor visit the website at www.HomeVestors,com

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Got the IRA Blues? Self Direct!ed uo w i th the tack o f lnd iv iduaIR e t i r e m e n t A c c o u n t o e r f o r -mance? D id vou know rea I es ta te

is an asset tha t can be ou t in an IRA?The tax code a l tows fo r lRAs to be

e s t a b t i s h e d a n d d i r e c t e d b y t h e i n d i -v iduaI fo r the benef i t o f tha t lRA.

S o u n d [ i k e n e w n e w s ? l t ' s n o t .S e [ f - d i r e c t e d I n d i v i d u a I R e t i r e m e n tAccounts have been around s ince theIeg is ta t ion c rea ted lRAs in the 1970s.

I t i s imoor tan t to seek the adv ice o fa g o o d f i n a n c i a I a d v i s o r w i t h r e s p e c tto th is inves tment veh ic te . There arev a r i e d o p i n i o n s o n t h i s i s s u e , a s o n a t [f inanc ia I inves tment oppor tun i t ies .

YOU ARE NOT ALONEHomeVestors@ has a vendor re ta -

t ionsh ip w i th Equ i ty Trus t to heLp ind i -v i d u a t s w h o h a v e d e c i d e d t h a t h o t d -i n g r e a I e s t a t e i n a s e [ f - d i r e c t e d I R Amay have advantages . Equ i ty Trus t i sthe Ia rges t , p r iva te ly he l .d , th i rd par tySDIRA cus tod ian in the count ry . Equ i tyTrus t s tands ou t in the i r marke t as aneducator p romot ing the advantages o fth is se t f -d i rec t ion too I and rea I es ta teas an rnves tment s t ra tegy .

STEPS TO SELF.DIRECTIONY o u r c o n t a c t a t H o m e V e s t o r s @

knows how to he tp you beg in th is d ia -tog w i th Equ i ty Trus t . An inves tor must

e s t a b l i s h a s e p a r a t e s e l f - d i r e c t e daccount . Wi th the account es tab t ishedand funded, by mov ing assets f rom at r a d i t i o n a I l R A , t h e i n v e s t o r c a n n o wd i r e c t t h e c u s t o d i a n t o f u n d a p p r o -pr ia te rea I es ta te purchases . A t [ rev-e n u e s f r o m , a n d p a y m e n t s m a d e f o r ,the rea I es ta te inves tment must f towt h r o u g h t h e S D I R A a c c o u n t t o k e e pthe inves tor separa te f rom the t rans-a c t i o n s a n d m a i n t a i n t h e o r a c t i c e a n dsp i r i t o f de fer red benef i t s .

T h e r e a r e a d v a n t a g e s a n d i s s u e st h a t t h e S D I R A i n v e s t o r n e e d s t ounders tand c tear ty . HomeVestors@c a n p u t y o u i n t o u c h w i t h t h e S D I R AreaI estate team at Equity Trust. f l

HonnrUrsroR$#t t{ottE BT|.ER

Full-Service HomeVestors Franchise

Owning Your Own Businessang ib te cont ro I over inves tment .You may Like what reaI estate hasto offer. l t 's more rewardino than

your day job . You may have bought oneo r t w o h o u s e s p e r y e a r . l t ' s t i m e t os tep up and rea t ize your d ream. Homeresa le i s a $10 b i t t ion per 'year indus-t ry . An ind iv iduat faces r i sks L ike buy-ing wrong and obs tac tes [ i ke no t be ingabte to tap enough f inanc ing . l s therea way to [ im i t those r i sks?

HomeVestors@ of Amer ica f ran-chises are for those who want to maker e a I e s t a t e a c a r e e r . A m e r i c a ' s # 1home buyer i s na t ionat ty recogn izeda s t h e " W e B u y U g t y H o u s e s @ "

c o m p a n y . S t r o n g b r a n da w a r e n e s s a n d o o w e r f u Imarke t ing genera te a s teady

s t ream o f leads . Ass is tance ina r r a n g i n g f i n a n c i n g f o r b u y i n g

and rehabb ing houses is ava i tab te .Wor ld -c lass t ra in ing is p rov ided to

you and your staff . You [earn a provensys tem o f buy ing , se t t ing , rehabb ing ,

a n d h o t d i n g h o u s e s , p r o v e n s i n c e1 9 9 5 . T h e e x p e r i e n c e g a i n e d

f r o m b u y i n g a n d s e t t i n g m o r et h a n 4 0 , 0 0 0 h o u s e s , i n b u t Iand bear rea I es ta te marke ts ,i s a s i g n i f i c a n t a d v a n t a g e t o

someone in te res ted in a bus i -ness based on inves t inq in res i -

dent ia I rea I es ta te .

ATTRACTIVEOPPORTUNITY

T h e n i c h emarke t served by

HomeVestors focus-es on mot iva ted se I t -

e rs . These homeowners

set [ the i r p roper ty a t a subs tan t ia t d is -count o f f re ta i I va tue in exchange fo rqu ick cash, the conven ience o f se t t ingas- is , and the knowtedge they ' re deat -ing w i th a reputab le na t iona l companyw i t h a c c o u n t a b i t i t y a n d a [ o n g t r a c krecord o f success fo r bo th s ides . Theproper ty may need too many repa i rsfor owners to carry out. They may haveinher i ted a p roper ty in another c i ty o rs ta te . They may need to ra ise moneyqu ick l .y fo r personaI o r bus iness rea-S O N S .

When the HomeVestors sys tem isfo t towed accura te ty and cons is ten t ty ,i t p roves success fu t . The sys tem isgu ided by th ree pr inc ip tes :

1 . F r a n c h i s e e s r e c e i v e a s t e a d ystream of leads from a powerfuI mar-k e t i n g s t r a t e g y w h i c h d i r e c t s s e t t -e rs to them. "We Buy UgLy Houses@"a d v e r t i s i n g a n d m a r k e t i n g s t r a t e g yinc tudes te tev is ion , b i t tboards , rad io ,Yet tow Pages, and In te rne t adver t i s -i n g , a s w e t l a s t a r g e t e d d i r e c t m a i Lc a m p a r g n s .

2 . F r a n c h i s e e s u s e p r o p r i e t a r yrepa i r eva lua t ion so f tware des ignedt o d e t e r m i n e h o w m u c h a p a r t i c u t a rhouse is wor th and what i t w i t I cos tto rehab. You input the reques ted f ig -u res , and i t he tps you ta rge t fa i r andaccura te p r ic ing on proper ty purchaseand rehab.

3 . F r a n c h i s e e s c t o s e d e a t s w i t h -ou t de tay . They can qu ick ty and eas-i t y access the HomeVestors sys temf o r s u c c e s s f u t b u y i n g a n d r e h a b b i n ghouses .

Rickey Williams (Houston), ToniD'Angelo Lott and Kenneth"Brownie" Lott (San Antonio)- Networking.

Barry Watts, Jay Vigneaux and Brian Loughrige,Springfield Property Management, Inc. Springfield,

Rising Stars 2008 and Top 10 Closers, JD& Candace Asbell of CityScape Properties,Kansas City, Missouri.

HOW TO GET STARTEDWhat does i t cos t to s ta r t a f ran-

c h i s e ? T h e f r a n c h i s e f e e i s $ 4 9 , 5 0 0 ,w h i c h i n c t u d e s t r a i n i n g , s u p p o r t , a n du s e o f t h e v a t u a b l e " W e B u y U g l . yH o u s e s @ " a d v e r t i s i n g c a m p a i g n . Am i n i m u m o f $ 5 , 0 0 0 p e r m o n t h s u p -p o r t s b r a n d i n g a n d a d v e r t i s i n g t og e n e r a t e [ e a d s f o r y o u r b u s i n e s s .C a n d i d a t e s m u s t h a v e a m i n i m u mo f $ 2 0 0 , 0 0 0 [ i q u i d a s s e t s a v a i t a b t e .T h e e s t i m a t e d i n v e s t m e n t r a n g e i s$200,700 to $385,750. 0ne advantage

Missouri. Top Buyer for Brian, Springfield PropertyManagement won Top Closer for Jr. Market 3ro Place andRising Star Award for 2008.

of the f u t [ -serv ice f ranch ise is tha t i t i sone o f the requ i rements to become aDevetopment Agent in your marke t soyou can recru i t and mentor Assoc ia teF r a n c h i s e e s . Y o u t h e n p a r t i c i p a t e i nthe income der ived f rom the i r successi n i m p t e m e n t i n g t h e H o m e V e s t o r sSystem.

HomeVestors p rov ides every th ingneeded fo r success : a na t ionat ty rec-ogn ized brand and es tab t ished imagethat draws motivated setters, t raininga n d s u p p o r t p r o g r a m s , o n g o i n g b u s i -

n e s s d e v e t o p m e n t c o n s u t t a t i o n a n dc o a c h i n g w i t h a R e g i o n a I B u s i n e s sD e v e t o p e r o r a D e v e t o p m e n t A g e n t ,v a c a n t p r o p e r t y i n s u r a n c e a t g r o u pr a t e s , o n g o i n g r e s e a r c h a n d d e v e t -opment , re fe r ra I p rograms to gener -a te leads in o ther c i t ies , and In te rne taccess to key sa tes in fo rmat ion .

Jo in a na t ionaI ne twork o f approx-i m a t e t y 2 0 0 f r a n c h i s e s i n 3 8 s t a t e s .HomeVestors@ is the p tace to beg in afut l - t ime career in real estate invest-m e n t . !

Call HomeVestors@ today at 1-800-44-BUYERor visit the website at wwuHomeVestors.com

HonnnUrsToR$#r t{oiG Br.tYER

Rebuilding America

Why Local MunicipalitiesNeed Homeuestorso

I

WE RENEW NEIGHBORHOODSONE UGLY HOUSE AT A TIME

For t Wor th , Denver , Phoen ix , andSan Antonio, at l take a bow. Those anddozens o f o ther c i t ies across the coun-try have had recent successes in cre-a t ing grea t downtowns f rom board-ed-up, g ra f f i t t i ' d b t igh t . Now, they ' rev ib ran t , poputar p taces , w i th res identsand s tudents , pubs and res taurants ,museums and arenas .

I t ' s t i m e f o r s o m e o f t h e n e i g h -borhoods nex t to those downtowns tohave the same treatment.

PUBLIC PROBLEMSqua re m i t es o f

Youngstown, 0hio, have beenabandoned. The c i ty has become

s o d e s p e r a t e a b o u t b t i g h t t h a tmore than 500 bui l ,dinqs have been

butLdozed under in the past fewyears,at[owing green space to take over, sayc i ty o f f i c ia ls . Buf fa to has a f i ve-year ,

$ t O O m i t t i o n p t a n t o d e m o t i s h

Reat to rsOF e d e r a I a s s i s t a n c e r s

I i m i t e d : u n d e r t h eN e i g h b o r h o o dS t a b i t i z a t i o nP r o g r a ma p p r o v e d b y

Congress in January2 0 0 9 , t h e f e d e r a I

g o v e r n m e n t i s s p e n d -

i n g a I m o s t $ 4 b i t t i o n o n b t i g h t e d a n dforec tosed proper t ies fac ing abandon-ment . Spread across the count ry , i t ' sm o r e t h a n g o v e r n m e n t c a n h a n d t e .A G o t d m a n S a c h s e c o n o m i s t s a i d i nJanuary tha t to ta l losses in the hous-ing marke t may exceed $1 .2 t r iLL ion .

The pr iva te sec tor c lear ty has tos t e p u p , H o m e V e s t o r s i s a n o n - g o v -ernmenta I so tu t ion to the orob [em o fh o w t o r e b u i [ d A m e r i c a ' s n e i q h b o r -hoods.

PRIVATE SOLUTIONHomeVestors so tves th is w i th a

p r i v a t e s e c t o r s o l u t i o n , t r a n s f o r m -ing condemned and low- tax assessedh o m e s i n t o c o m p t e t e t y a n d t h o u g h t -fu t ty renovated homes, occup ied byo w n e r s w h o h a v e t a k e n a s t a k e i nt h e i r c o m m u n i t y . W h e n t h i s h a p -pens , ne ighborhood home pr ices r i se ,fo rced sa Ies and fo rec tosures drop ,the cos t o f pub[ ic sa fe ty money andcommuni ty resources drop , and loca Ibus inesses and government a re sup-por ted . The pr ices o f ad jacent homesr ise as ne ighborhoods s tab i t i ze . Ent i rene ighborhoods benef i t .

Community devetopment directorswou ld ra ther have the pr iva te sec tordo what HomeVestors has done s ince1996 f o r more than 40 ,000 homes in 37states.

M a n y h o m e s , w h i c h w i t l r e c e i v etaxpayer dottars, were recentty occu-p i e d h o m e s i n r e a s o n a b t e c o n d i t i o nb u t h a v e b e e n f o r e c t o s e d a n d n o w ,with some renovat ion, of fer someonea good home. HomeVestors rou t ine ty

www. Homevestors.com

A

renovates homes tha t a re in fa r worsecond i t ion than most fo rec tosure prop-e r t i e s . T h e y t r u l . y d o b u y a n d r e h a b .the ug ty houses in the count ry . B l , igh tdr ives down proper ty and sa tes taxes ,the bread and bu t te r o f a t l mun ic ipa t i -t ies . HomeVestors he tps keep ne igh-bors happy and ne ighborhoods occu-pied with homeowners.

A PLANNED PROCESSHomeVestors f ranch isees are no t

q u i c k - b u c k , f t y - b y - n i g h t h o u s e f t i p -pers or con art ists. They wi l . l . not addto a communi ty 's p rob tems. They arep a r t o f a 1 3 - y e a r - o t d n a t i o n a I c o m -p a n y t h a t h a s d e v e t o p e d a r e p e a t -a b l e , a c c o u n t a b t e , a n d r e s p o n s i b t ep r o c e s s . A p p r o x i m a t e t y 2 0 0 f r a n -c h i s e e s a r e t r a i n e d a n d s u p p o r t e dby corpora te headquar te rs . They ' reus ing a p roven sys tem to buy homesf r o m p e o p [ e w h o n e e d o r d e s i r e t ose t [ the i r homes, as qu ick ty and w i thas few hass tes as poss ib te , to a com-pany they know wi t l t rea t them wi threspec t and honesty .

In just the last year, HomeVestorshas been fea tured in the Wat t S t ree tJ o u r n a t , t h e C h i c a g o S u n - T i m e s , t h eA t t a n t a J o u r n a t - C o n s t i t u t i o n , t h eR i c h m o n d T i m e s - D i s p a t c h , T h e S t .L o u i s P o s t D i s p a t c h , t h e F t . W o r t hStar -Tetegram, The P i t tsburgh Post -Gazet te , The Oktahoman, The TampaT r i b u n e , T h e B a L t i m o r e S u n , T h eS a r a s o t a H e r a [ d T r i b u n e , t h e S a nJose Mercury News, the Ph i tadetph iaE n q u i r e r , T h e B o s t o n G t o b e , T h eSan Anton io Express-News and USAToday. HomeVestors is the pr ivate sec-to r so tu t ion to ne ighborhood renewat .For near ty 13 years , ug ty house byugty house, HomeVestors has provento he tp re tu rn houses in to p roduc t iveh o m e s w i t h v i t a I o w n e r s , p r o u d o ft h e i r c o m m u n i t i e s . T h e m i s s i o n c o n -t inues and cont inues to g row. l l

Why LendersShould WelcomeHomeUestors@I t 's the beginning of 2009 and fore-

I c tosures are r i s ing . Home pr ices areI dec l . in ing . The $700 b i t t ion federa l .

bai tout is faiLing troubled homeowners.Neighborhoods are becoming bt ightedby unkempt vacant houses tha t d ragd o w n t h e v a t u e o f n e a r b y o c c u p i e dhomes. WhiLe the government decideshow to address the prob tem, the pr i -vate sector r ises to the occasion.

Inves tors a re rescu ing Amer icaf rom i ts hous ing c r is is . They are buy-ing excess suppty and restor ing ordera n d b a [ a n c e t o a w i t d L y u n b a L a n c e dmarket . Accord ing to a 2008 repor tsponsored by RE/MAX, WeU.s Fargo,a n d P e r s o n a I R e a I E s t a t e I n v e s t o rMagazine, 75 percent of investors arerepeat buyers and own an average offour p roper t ies . The es t imated annu-a [ marke t i s $320 b i t t ion , and a t ready2009 tooks I ike a record year for reales ta te inves tment . Homevestors@ islead ing the way, w i th a na t ionaI ne t -work of f ranchisees buying houses in38 states.

" R e a I e s t a t e i n v e s t o r s r e a t i z eth is i s the p innac te moment to makeunprecedented inves tments and he tpthe count ry ou t o f a c r is is s i tua t ion and

a c red i t c runch, " sa id HomeVestors@co-Pres ident Dav id H icks . "Th is i sn ' tan act of chari ty. l t 's smart business."

WHY LENDERSH o m e V e s t o r s @ h a s 1 3 y e a r s o f

e x p e r i e n c e m a n a g i n g f r a n c h i s e e s .Franchisees are accountabl.e, highl .y-t ra ined, and mot iva ted . Each buys anaverage o f 24 homes per year ; manybuy more . They buy w i th a p redeter -mined ex i t s t ra tegy and re la t ionsh ipswi th vendors to pu t f i r s t - t ime buyers ,seasoned homebuyers, or investors inthe house.

Major [enders have atready discov-ered the advantages o f work ing w i thHomeVestors@ f ranchisees to det iverf inanc ing to f i rs t - t ime homebuyers . Inadd i t ion , [enders woutd benef i t f romunders tand ing HomeVestors@ f ran-chisees' accountabit i ty, capitat izat ion,and exper ience in th is segment o f themarke t . Th is unders tand ing w i [ [ a t towlenders to capture a [a rger share o ft h e b u y i n g , r e f u r b i s h i n g , a n d r e c y -ct ing market by offer ing more f inancesotut ions to the f i rst- t ime buyers, sea-soned homebuyers and investors.!

HonnrUEsToR$"AilE:RIciA.s #I HOTE EUYER

Founder Ken DAngelo

HomeUestors@ Uisionand Ualues

,ll

I

en D 'Angeto was a spec ia I manA v i s i o n a r y w h o ' s b r i g h t t i g h tand qoodwi l . t d id no t burn ou t

when he physicatty lef t us way too soon.HomeVestors@ is the embod iment o ftha t v is ion and goodwi t t .

D ' A n g e L o b e g a n h i s r e a I e s t a t ecareer in a t rad i t iona l way as a rea les ta te b roker . Throuqh the 1970s and

1 980s D'Angeto developed award-win-n ing f ranch ised rea I es ta te o f f i ces inDattas, Texas and Houston, Texas. Hewas ahead o f h is t ime when he dec id -ed there was a be t te r bus iness modeIi n r e c y c t i n g h o u s e s i n D a l t a s . T h e r ewas more money to be made ethical . tyby tak ing un loved houses and mak ingt h e m h o m e s i n c e n t r a Im e t r o o o t i t a n [ o c a t i o n sthan there was as a set[-ing agent .

O n e d a y i n t h e e a r t y1970s, Ken went on a [ ist-i n g a p p o i n t m e n t , j u s t a she had done many t imesi n t h e p a s t . H e t o t d t h es e t t e r h e c o u l d l i s t h e rhouse, pu t i t on the MLS,

and in 90 to 120 days i t wou ld most [ i ke-ty se t l . and she woutd ge t her money.She sa id , "You don ' t unders tand. I needto se t [ th is house today l "

K e n b o u g h t t h e h o u s e , a n d a f t e rr e h a b b i n g a n d s e t t i n g , m a d e m o r ecommiss ion than he woutd i f he had jus tso td the house as a rea I es ta te agent .K e n C h a n n e t t , n o w C o - P r e s i d e n t o fHomeVestors@, says, "When I met Kenin 1978, he was conv inced tha t he hada grea t idea . So wh i [e HomeVestors@off ic iat ty started in 1996, i t reatty beganin the 1970s, a tmost 25 years ear t ie r . "

DANGELO DREAMST h i n k d i f f e r e n t t y , t h i n k b i g , t a k e

r isks , and share the benef i t s . The seedof the HomeVestors@ idea has grownf r o m o n e r e g i o n a I c o m p a n y r e n o v a t -ing and recyc t ing 100 Dat tas houses ayear, into a f ie l .d of f ranchised housingrecycters and perenniaI crops of sat is-f ied f i rs t - t ime homebuyers , seasonedhomebuyers , inves tors , vendors , andLending partners. Add to this ci ty off i -c iats, who saw untoved homes restoredand re tu rned as ac t ive hous ing s tockon tax rotts.

T h r o u g h t h i s r e c y c t e m o d e t ,HomeVestors@ of America f ranchiseeshave bought ug [y houses and recyc tedthem in to love ty homes, more than4 0 , 0 0 0 t i m e s , t o t h e b e n e f i t o f m a n yd i f fe ren t communi t ies and cus tomers .

S h a r i n g t h e s a t i s f a c t i o n a n d t e a c h -i n g o t h e r s t o f u L f i t t t h i s d r e a m i s t h eD 'Angeto dream mani fes t .

VISION STATEMENTTo transform the ReaI Estate

indus t ry so tha t everyone we touchw i n s l

The rea t es ta te indus t ry and pro-fess ion is someth ing tha t most home-buyers have exper ienced; some good,some less than ideat , bu t p red ic tab tyi n c o n s i s t e n t . T h i s i s d u e t o a l a c k o fun i fo rmi ty in p rocess , p ro fess ionat ism,and prov iders . D 'Ange[o had bu i t t suc-cess fu I rea I es ta te sa tes o f f i ces andk n e w t h a t c o n s i s t e n t c u s t o m e r e x o e -r ience and s tandards requ i re cons tan ta t ten t ion , recur ren t t ra in ing , and cus-tomer sa t is fac t ion .

The HomeVestors@ idea o f fe red af ranch ise mode l where be t te r o ro fes-s ionaI s tandards and cus tomer exoer i -ence was w i th in reach, and i f ach ieved,coutd de t iver sa t is f ied and even re tu rn-ing cus tomers . The idea o f f ranch is inga bus iness tha t bought , rehabbed, andsotd houses took fo rm.

MISSION STATEMENTToday, HomeVestcrs@ of America

provides wortd-class products, ser-v ices , and t ra in ing to our f ranch isees ,empowering them to transform theReaI Estate industry. By the earty

'ltr rtly tl(ry lf0tlfrf,(otrl

1990s, D 'Angeto had grown h is housebuy ing bus iness to more than 100homes a year. The recurr ing themewas f ind ing an un loved or p rob temhouse, buy ing a t a fa i r d iscount basedon physical . property condit ion or per-sonaI setter c ircumstance, renovat ingand add ing va lue to the ne ighborhood.and sett ing these propert ies as afford-ab te homes fo r f i r s t - t ime or seasonedhomebuyers o r fa i r p r iced inves tmentpropert ies. Both poots are a predict-abte source of buyers

The re tevance o f a bus iness tha tinvests in and recyctes depressed prop-ert ies and restores them into habitabLeand taxabte cond i t ion in spec i f i c ne igh-borhoods was not [ost on ci ty fathers.A rehabbed house tha t i s occup ied isa tways a be t te r s i tua t ion fo r the c i tyand the neighbors. The property that isrestored is a property where the ownerwi[ [ again pay taxes.

A BILLBOARD STORYNo h is to ry o f HomeVestors@ can

be toLd without discussing D'Angelo'slove and respec t fo r the d isc ipL ine o fmarke t ing , and most par t i cu ta r [y , thebi l . tboard story. Most peopte f i rst learnabout HomeVestors@, "Ugty Houses,"and "UG" f rom a b iL tboard they no t iceas they are dr iv ing . D 'Angeto beganpromoting his Dattas business by buy-ing bi t tboards that s impty said "We BuyHouses" and a ohone number to ca t t .The message was successfut, but toogeneric. l t had the potent iaI to attract

a n y o n e s e t t i n g a h o u s e , t h o u g h n o tthe se t te r o f a house tha t o f fe red thepoten t ia I o f renovat ion and the addedmarg in o f tak ing an un toved house andturn ing i t in to a home.

GO UGLY, EASY & GET RESULTSOwners of the most distressed

houses , o r se t te rs in ug ty s i tua t ions ,confront a perceived embarrassmento f own ing a house tha t i s no t "sa tes

ready" for the real estate sales pro-cess , o r exp l .a in ing an o f ten embar -rass ing personaI c i rcumstance tha tneeds urgent a t ten t ion .

The chattenge was to get the mes-s a g e t o t h e s e s t r u g g t i n g s e t t e r s -tha t those perce ived imped iments tosa te , were jus t tha t , inva [ id percep-t ions that coutd be easity addressed bypro fess ionaI and e th ica I buyers f romHomeVestors@. Ken be t ieved tha t i fyou say someth ing in adver t i s ing tha tpeopte do no t expec t , i t w i t t ge t the i ra t ten t ion . The answer a r r i ved in add-i n g t h e l e t t e r s U - G - L - Y t o W e B u y

H o u s e s . " T h e t r a n s f o r m a t i o nwas nearty instant.

These fo rmer ty hard to f ind andp o t e n t i a t t y u n c o m f o r t a b [ e s e t t e r swere put at ease by the "We Buy Ugl.yH o u s e s @ , " " U G , " a n d t h e u n a s s u m -i n g c h a r m o f t h e m e s s a g e . T o d a y ,HomeVestors@ is the [argest and mostt rus ted buyer o f d is t ressed homes inAmer ica . When a d is t ressed se t le r i sfacing a fast moving real estate whote-sa le r o r a HomeVestors@ reoresen-

t a t i v e , t h e t r u s t e n g e n d e r e d b y t h enearty two decades long "We Buy UgtyHouses@" campaign counts .

A HELPFULNEIGHBORHOOD RESOURCE

D'AngeLo began as a rea I es ta tep r o f e s s i o n a l . , t h e n a s a r e a I e s t a t ei n v e s t o r b u y i n g , r e h a b b i n g a n d s e t t -ing houses . Us ing h is bus iness modet ,he c rea ted a h igh ty access ib te , wor tdc t a s s , a n d a w a r d w i n n i n g f r a n c h i s econcept. Even after his unt imety deathi n 2 0 0 5 , t h e b u s i n e s s h a s g r o w n t othe [a rges t and most respec ted rea Iestate buying, recyct ing, and f i rst- t imeor seasoned homebuyers and investorsa les bus iness in Amer ica .

D'Angeto passed on a set of peren-n i a I v a t u e s a n d p r i n c i p t e s t h a t h a v ea t t r a c t e d c u s t o m e r s , f r a n c h i s e e s ,vendors , lend ing par tners , and admi r -ing o f f i c ia ts in many c i t ies in Amer ica .Because of this nearty two decades ofcons is tency , HomeVestors@ is po isedt o e x p a n d u n d e r t h e g u i d a n c e a n dl e a d e r s h i o o f D a v i d H i c k s a n d K e nChannet l and the team chosen to careand nur tu re th is v is ion and these va t -ues .

T h e s p i r i t a n d i n s p i r a t i o n o fK e n D ' A n g e t o i n v i t e s y o u t o e x a m -ine HomeVestors@ as a way to ful . f iL l .any rea I es ta te inves tment o r careerdreams you may have. !

Gall HomeVestors@ today at 1-800-44-BUYERor visit the website at www.HomeVestors,com

"HomeVestarf has provided us with the tools necessary toturn a hobhy and a passion into a tull4ledged business."

- Ed Enright,0uickOraw Properlies, LLC, Chicago, lL

'With the help of the corporote offtce ond manytmany hours of hard work,I hove a greot buslness, one thot I love operoting ond thot is ollowing me toochieve all of my finoncial goofs."

- Bob St. PierreXtreme Properties, Inc., Polk Countyn FL

"The brand, everyone knows the "We Buy Ugly Houses " pebple.If there isanyone out there thinking about doing it, now is the time.The cost of entryis going to go up as this keeps becoming more swccessful.. and nobody hascome close to replicating the HomeVestors system."

- Mark Mattlage Cal Mat Plopefties,Inc.,Ft. Worth. TX

fHere's why:

. We teach you proven systems that allow you to find and buy houses at a discount' We provide world-class training and dedicated support staff to help you realize your goals' We have a respected, well-established brand that generates a steady stream of leads.

lttnnnn,Urmgrons'^AMERICA'S #t HOME BUYER

Each franchise olfice is independently owned and operated.

.This is not a franchise offering. We otfer franchises only through our Franchise Disclosure DocumentAll HomeVestors franchise and financino oroqrams are dubiectio chanoe due to market conditions or i

Eddie and Debbie Gant, HomeVestors Franchisees, Houston, TX

All HomeVestors franchise and financing programs are subject to change due to market conditions or availability ol02008 HomeVestors oI America, Inc. All rliht$Jeserved. HorieVestorsP UG Buys Housesl" and We Buv t lotv tlni,""