If you’ve been considering investing in a franchise or breaking into the real estate industry, real estate franchises can be a surprisingly affordable path to business ownership. These business models offer a wide variety of opportunities for aspiring entrepreneurs, and they are an increasingly attractive option for those looking to start a business.
And while real estate franchises require an initial investment—like any other franchise—there are many affordable franchise opportunities within the real estate space that require an investment of less than $100K.
A real estate franchise is a business model that allows franchisees to own and operate a real estate company under the branding, systems, and guidelines of an established brand. Essentially, by purchasing a real estate franchise, you’re paying for the right to use the franchise’s proven business model and marketing materials and get access to their industry-specific training and support.
Franchisees benefit from the credibility and resources of an established brand, which can help them build trust with clients and jumpstart their business more easily than if they were starting from scratch.
Real estate franchises cover a wide range of services, from helping people buy and sell homes to providing property management, staging, home inspection services, and much more. Some of these franchises are even specifically designed for those interested in the real estate market but who may not have the resources or expertise to start a business independently.
These franchises offer a structured way to enter the field with a built-in support system, making them a great option for many new business owners.
The world of real estate is vast, and so too are the types of franchises available. Here are some of the most popular and lucrative categories of real estate franchises.
Brokerage and sales franchises are among the most well-known types of real estate franchises. These businesses focus on helping people buy and sell homes, commercial properties, or rental units. Franchisees act as real estate agents, working with buyers, sellers, and investors to negotiate deals and facilitate transactions. Some of the most prominent names in real estate, like RE/MAX, Keller Williams, and Century 21, operate under a franchise model.
For franchisees, a brokerage or sales franchise typically involves managing a team of real estate agents, marketing properties, and facilitating negotiations. Because real estate transactions can involve significant commissions, this type of franchise can be quite profitable if you build a strong reputation and client base.
House-flipping franchises like New Again Houses focus on the buying, renovating, and reselling of homes. This business model typically involves identifying properties that can be purchased below market value, renovating them to increase their appeal and value, and then selling them for a profit. House-flipping franchises can be highly rewarding but also often require a keen understanding of real estate trends, renovation costs, and project management.
Franchisees in this space benefit from the franchise’s guidance on finding profitable properties, designing renovations, managing construction, and marketing the homes for sale, and marketing the homes for sale. Since many house-flipping franchises are relatively low-cost to operate compared to other types of real estate businesses, they can be an appealing option for entrepreneurs looking for a more hands-on investment.
Property management franchises involve managing rental properties on behalf of property owners. This business model can include tasks like marketing vacant units, screening tenants, handling maintenance requests, and collecting rent. Franchisees in this field are typically responsible for ensuring that the property operates smoothly and that tenants are happy.
These franchises can be particularly appealing to those who are good at customer service, organization, and problem-solving. Since the real estate market often sees a steady demand for rental properties, property management franchises can provide a reliable income stream for franchisees.
Home inspection franchises provide a vital service in the real estate transaction process. These franchises involve conducting detailed inspections of homes to assess their condition before a buyer commits to purchasing. Inspections can include evaluating structural integrity, plumbing, electrical systems, and more.
Home inspection franchises can be an excellent entry point for those with technical skills or an interest in construction, as this type of franchise typically requires specialized knowledge of home systems. This business model tends to be lower cost compared to brokerage or house-flipping franchises because it doesn’t require a physical office or large staff.
Estate sale management franchises assist individuals in organizing and selling belongings from estates, often when people move, downsize, or liquidate assets after a death. These franchises help with pricing, organizing sales, advertising, and handling transactions.
This type of franchise can be incredibly fulfilling for those interested in customer service and helping people through significant life transitions.
Estate sale management franchises also typically require lower startup costs, as they don’t involve owning or managing properties, making them a budget-friendly option in the real estate franchise world.
Home staging franchises focus on helping homeowners prepare their properties for sale by arranging furniture, décor, and accessories to make the property more appealing to buyers. These franchises can be perfect for individuals with a background in interior design or a flair for creating aesthetically pleasing spaces.
The home staging business typically requires fewer upfront costs than property management or house-flipping franchises because it doesn’t require significant capital investment in real estate. The key investment is often in inventory (furniture and décor), which can be scaled as your business grows.
When compared to more traditional franchise opportunities, such as restaurant franchises, real estate franchises often come with much lower startup costs. Here’s why.
Many real estate franchises don’t require a brick-and-mortar storefront, large staff, or extensive equipment. For example, property management and home inspection franchises can often be run from home or a small office, reducing costs associated with real estate, rent, and overhead. On the other hand, restaurant franchises usually require a significant investment in commercial property, kitchen equipment, and hiring a large staff.
Unlike food franchises, which often require significant investments in inventory (food, ingredients, and supplies), real estate franchises typically don’t involve physical products. The main investments are in training, marketing, and technology, which can be much more affordable.
Many real estate franchises are service-based, which means franchisees can scale the business gradually. As franchisees gain experience and clientele, they can add more services, hire more staff, or even open additional locations. The lower cost to start a real estate franchise allows entrepreneurs to reinvest profits into growing their business at a manageable pace.
The demand for real estate services tends to be more stable, particularly in property management, home inspections, and house flipping. This consistency helps mitigate risk, making real estate franchises less susceptible to market volatility compared to industries like foodservice, which can face fluctuating demand.
Starting a real estate franchise can be an exciting way to enter the property market with a proven business model, but choosing the right one is key to your success. With many options available for under $100K, it’s essential to carefully evaluate each opportunity.
Keep these tips in mind so you can make an informed decision when choosing an affordable real estate franchise.
While many affordable real estate franchises fall under $100K, the total cost to get started can vary greatly. Be sure to carefully review the initial franchise fee, royalties, marketing costs, and other ongoing expenses such as technology fees. Make sure the costs align with your budget and financial goals.
Consider the full scope of investment, including working capital for the first few months, to ensure you have enough resources to succeed.
A well-established brand can make a significant difference in attracting clients and building your business. Evaluate the brand recognition of each franchise you’re considering. Look at its reputation in the real estate industry, its history of success, and the overall public perception.
Well-known names like Coldwell Banker or Century 21 may offer a sense of credibility, while newer brands like New Again Houses may provide unique opportunities for growth and less competition in local markets.
The most successful franchises offer clear and simple fee structures.
When choosing a franchise, look for transparency in their royalties, advertising costs, and technology fees. For example, franchises like New Again Houses offer a low royalty fee of 2.25%, which allows franchisees to keep more of their earnings compared to others with higher fees. Also, ensure that there are no hidden or additional fees that could eat into your profits.
A successful franchise should offer a proven business model along with ongoing support. Understand the franchise’s business operations, including marketing strategies, training programs, and proprietary tools. For instance, New Again Houses provides access to exclusive technologies like MasterSuite Technology™ and the Lead Launchpad™, which are designed to make property acquisition and renovation processes smoother.
Be sure the franchise also offers adequate training, operational guidance, and continuous support for its franchisees.
The real estate market is always evolving, so it’s important to choose a franchise that can adapt to market trends and has a long-term growth trajectory. Research the demand for the franchise’s services in your target area. For example, some franchises focus on luxury real estate or distressed property renovations. A franchise like New Again Houses, which focuses on buying, renovating, and selling distressed homes, could be highly profitable as demand for affordable, renovated properties continues to rise.
Franchise fees and startup costs can be a significant hurdle for many entrepreneurs. Check if the franchise offers financing options or works with partners to help secure funding.
Understanding the financing process will help you plan your investment and cash flow more effectively. New Again Houses shares ownership of Alta Capital Management and partners with third-party lenders, making it easier for franchisees to access financing for property transactions.
Franchises with a high level of operational flexibility can help you build a business tailored to your local market. Look for a franchise that allows you to control certain aspects of your operations, such as marketing strategies and spending.
New Again Houses, for example, provides flexibility for franchisees to control their local marketing budget while recommending a minimum spend to help drive leads. This model ensures you have the freedom to adapt your strategy to local demand.
A successful real estate franchise should offer comprehensive training programs and continued support to ensure you are well-prepared to run your business. Investigate the franchise’s training process, initial setup assistance, and ongoing educational resources.
A franchise like New Again Houses provides ongoing coaching and support to ensure that franchisees are set up for long-term success. This support can be critical as you navigate the competitive real estate market.
When it comes to affordable real estate franchises that offer excellent potential for profit, New Again Houses stands out in several ways. Here’s why it might be the best choice for your business.
At only $42,500 for the franchise fee, New Again Houses offers one of the most affordable real estate franchise options available. The cost structure is straightforward, with minimal fees and no hidden costs—making it an attractive option for those who want to invest in real estate but avoid the high upfront costs of other franchises.
New Again Houses charges a low royalty fee of just 2.25% of sales, which is much lower than some other real estate franchises that can charge upwards of 6%. You keep more of your earnings, which increases your potential for profitability.
Additionally, franchisees do not pay any extra fees for financing with New Again Houses’ partner investors, adding to the overall value of the franchise.
Unlike some franchises that impose strict national marketing requirements, New Again Houses gives franchisees the flexibility to control their marketing spend. While the franchise recommends a $3,500/month budget for local marketing, it's ultimately up to the franchisee as to which marketing strategies to allocate that spend to. The proprietary Lead Launchpad™ platform focuses on hyper-local strategies, which helps franchisees target the right audience in their local market.
Franchisees benefit from New Again Houses’ exclusive suite of tools, including the MasterSuite Technology™, which assists in underwriting transactions. These tools are available only to New Again Houses franchisees, providing a competitive edge in the marketplace. The company’s partnership with Alta Capital Management™ offers financing options for franchisees, ensuring that they have the resources they need to succeed.
New Again Houses’ model of buying distressed homes, renovating them, and selling them for a profit has significant potential for high returns. With a lower initial investment and lower operating costs, franchisees can achieve profitability quickly. Plus, the demand for affordable, renovated homes continues to rise, making this a business with long-term growth potential.
Real estate franchises provide an accessible and affordable way for entrepreneurs to enter the real estate industry, with many opportunities to choose from based on interests and skills. From brokerage and sales franchises to property management, house flipping, home staging, and more, there’s a wide range of options that can fit various budgets and goals.
And, compared to other franchise sectors, such as restaurants, real estate franchises often come with lower startup costs, fewer ongoing expenses, and the potential for steady income.
If you’re ready to invest in a real estate franchise, New Again Houses offers a unique and cost-effective way to break into this dynamic industry. Start your entrepreneurial journey by exploring the opportunities with New Again Houses. Contact us today for more information about our unique approach to real estate investment and to learn how we can support your entrepreneurial journey.