Real estate investment is an exciting and profitable industry that attracts entrepreneurs eager to capitalize on the buying, renovating, and selling of properties. If you’re looking to get into the real estate space without starting from scratch, investing in a franchise is an attractive path.
Two well-established names in the real estate investment franchise world are HomeVestors and New Again Houses. Both brands offer opportunities for franchisees to grow their businesses, but they do so with distinct models and strategies.
In this article, we’ll explore the differences between HomeVestors and New Again Houses, focusing on their history, business models, franchise fees, training processes, marketing strategies, and more. By the end, you’ll have a clearer idea of which franchise might be the best fit for your entrepreneurial goals.
New Again Houses, which launched in 2008, has quickly built a strong reputation for its thoughtful and value-driven approach to real estate investing. What sets NAH apart is its commitment to transforming distressed properties into functional, welcoming homes—focusing on improvements that significantly increase a home's value.
Beyond construction, NAH differentiates itself through innovative business practices and a strong focus on relationships. Rather than taking a purely transactional approach, NAH fosters long-term, win-win partnerships. The company also places a strong emphasis on community impact—restoring homes not just for resale, but to create lasting value for families and neighborhoods. This mission-driven approach, combined with personalized service and respect for each home's story, resonates with franchisees who want to make a meaningful difference through their work.
HomeVestors was founded in 1996, and its “We Buy Ugly Houses” brand quickly became a national symbol in the real estate investment space. The company’s focus is on buying homes in need of repair or renovation, often referred to as “ugly houses.” Its business model relies on purchasing properties at a deep discount, renovating them, and then selling them for a profit.
Over the years, HomeVestors has grown into one of the largest real estate investment franchises in the US, with a nationwide network of franchisees.
When deciding between HomeVestors and New Again Houses, several factors can influence your choice. These factors will help you understand the nuances of each brand’s business model and determine which is most aligned with your goals.
Let’s break down these factors to help you make an informed decision.
Marketing plays a vital role in any franchise business, especially in real estate investment where brand recognition can drive leads.
HomeVestors relies heavily on its national marketing campaign, which promotes the “We Buy Ugly Houses” brand on a large scale. This broad campaign ensures that the brand is visible across the country, but it may not always resonate with local markets or address specific regional needs.
New Again Houses, on the other hand, focuses on hyperlocal marketing, allowing franchisees to craft campaigns that cater to the unique characteristics and needs of their local market. A more localized strategy can help franchisees develop deeper connections with their communities and build a strong local reputation. While franchisees are responsible for funding their own local marketing campaigns, they don’t do it alone. The NAH home office team actively supports franchisees by helping develop customized strategies, creating marketing materials, and offering guidance tailored to each local market.
Key distinction: HomeVestors focuses on national brand recognition, while New Again Houses prioritizes local, customized marketing campaigns tailored to each franchise’s territory.
Protected territories is another critical factor when it comes to competition within a franchise system.
HomeVestors does not provide guaranteed protected territories for its franchisees. This means that franchisees could potentially be competing with other HomeVestors franchisees for the same leads in a particular market. While the competition may be manageable in larger cities, it can increase in smaller markets where several franchisees operate in close proximity.
In contrast, New Again Houses offers protected territories to its franchisees, ensuring that each franchisee has sole ownership of their market area. This reduces internal competition and creates a more stable business environment, where franchisees are not competing against one another for the same pool of leads.
Key distinction: HomeVestors franchisees may face competition within their territory, while New Again Houses offers protected territories with no internal competition.
Access to capital is a key component of success in real estate investing, especially when it comes to purchasing and renovating properties.
HomeVestors franchisees have access to a network of approved third-party lenders. While this can provide useful financing options, these lenders are not exclusive to HomeVestors, and the terms offered may vary depending on the lender.
New Again Houses franchisees benefit from lending support through Alta Capital Management, a commonly owned sister entity created to serve NAH franchisees. Alta offers financing specifically designed for property acquisitions and renovations, with competitive terms such as deferred payments, lower interest rates, and flexible repayment schedules. While Alta lends only to NAH franchisees, franchisees are not required to use Alta—they are free to work with any lender they choose. NAH can also recommend other approved lending partners to ensure franchisees have options that suit their needs.
Key distinction: HomeVestors offers access to third-party lenders, while New Again Houses supports franchisees through a commonly owned lending partner that offers favorable terms or the freedom to choose their lender.
Comprehensive training and onboarding are essential for franchise success.
HomeVestors provides a traditional five-day in-person training program that covers key aspects of the business, including how to find and evaluate properties, manage renovations, and market your business. While this hands-on training can be valuable, it requires franchisees to travel and commit to a significant amount of time upfront.
New Again Houses offers a more flexible training process with fully remote onboarding. This approach allows franchisees to complete training at their own pace, from anywhere, without the need to travel. NAH’s online training program includes comprehensive resources, videos, and support to help franchisees get up to speed quickly and efficiently.
Key distinction: HomeVestors requires an in-person training program, while New Again Houses offers a remote training process that can be completed at the franchisee’s convenience.
When it comes to digital marketing, landing pages are crucial for converting leads.
HomeVestors provides franchisees with location-specific landing pages that primarily focus on the location rather than the individual franchisee.
New Again Houses takes a more personalized approach. Franchisees have landing pages that not only highlight their local area but also feature bios, videos, and customer reviews. This personal touch helps build trust with potential customers, making the franchisee the face of the business and improving lead conversion rates.
Key distinction: HomeVestors provides generic location-based landing pages, while New Again Houses offers personalized landing pages that feature the franchise owner’s story and local expertise.
In the real estate investment business, additional fees can add up quickly and impact profitability.
HomeVestors franchisees face additional acquisition and sale fees for each property they buy or sell, in addition to the standard royalty fees. Furthermore, HomeVestors imposes an extra 2% royalty fee on part-time franchisees—effectively penalizing those who choose to operate the business part time. This structure can reduce profit margins and make the financial side of each deal more complex, especially for newer or part-time investors.
New Again Houses simplifies this process by only charging royalty fees on each property, with no additional acquisition or sale fees—regardless of whether they operate full time or part time. This simplified model not only helps franchisees better predict their expenses, but also supports flexibility in how they run their business.
Key distinction: HomeVestors adds acquisition and sale fees, while New Again Houses only requires royalty payments, simplifying the financial structure for franchisees.
The initial franchise fee is one of the most significant investments when purchasing a franchise.
HomeVestors offers two different franchise fee structures: a $39,000 fee for part-time franchisees and an $85,000 fee for full-time franchisees. This tiered system is designed to cater to both individuals looking to operate part-time and those who want to dedicate themselves fully to the business. However, the higher fees for full-time franchisees can be a significant barrier for those looking to start at a more affordable entry point.
New Again Houses has a single, flat franchise fee of $45,000. This simplified structure eliminates the need for franchisees to choose between part-time and full-time options, streamlining the financial commitment process. It also provides clarity for prospective franchisees, who will know exactly what their initial investment will be.
Key distinction: HomeVestors offers a tiered franchise fee based on the franchisee's commitment (part-time vs. full-time), while New Again Houses has a single, flat franchise fee.
Accurate property valuation is critical for success in real estate investing.
HomeVestors has developed its proprietary ValuCheck platform, which is a customized version of Salesforce. This platform helps franchisees evaluate properties and estimate renovation costs, but it is a generalized tool used across the industry—not exclusive to HomeVestors.
In contrast, New Again Houses offers its own MasterSuite Technology™, a proprietary property valuation system designed specifically for NAH franchisees. MasterSuite is built to streamline the valuation process with an intuitive interface that pulls data from various APIs to generate accurate construction budgets and project profits. It uses a proprietary Risk Factor calculation to assess the risk of each project, which is crucial for attracting investors. This tailored tool provides franchisees with a significant edge in evaluating properties and planning renovations.
Key distinction: HomeVestors uses a more general platform (ValuCheck), while New Again Houses offers a proprietary, franchise-specific valuation system (MasterSuite Technology™) tailored to their renovation process.
Franchisee satisfaction is a good indicator of the support and experience a franchise offers.
HomeVestors has received a rating of 79/100 in the Franchise Business Review’s Franchise Owner Satisfaction Report, which reflects moderate satisfaction.
New Again Houses, on the other hand, has a higher rating of 89/100 in the same report. This score indicates a high level of satisfaction among franchise owners. Many franchisees highlight the company’s support, the quality of its training, and its innovative approach to property investment as reasons for their satisfaction.
Key distinction: New Again Houses boasts a higher franchisee satisfaction rating (89) compared to HomeVestors (79), indicating stronger franchisee support and overall satisfaction.
Franchisees often have the option to hold onto properties as rental investments, and the structure of these deals can vary.
HomeVestors allows franchisees to keep rental properties but typically charges higher interest rates and fees for rental properties. Franchisees retain sole ownership of these rentals, giving them full control but also assuming all the risks and rewards associated with managing rental properties.
New Again Houses offers a more innovative approach with its shared equity rental portfolio (SERP) program. Under this model, franchisees share ownership of rental properties with NAH. This arrangement provides more affordable terms and gives franchisees the opportunity to gradually buy out the company’s share to eventually gain full ownership. This structure allows franchisees to manage rental properties with less upfront financial risk, while still benefiting from passive income and long-term asset appreciation.
Key distinction: HomeVestors franchisees have full ownership of rental properties but face higher costs, while New Again Houses offers a shared equity model that reduces financial risk and allows for gradual buyouts.
Choosing the right franchise depends largely on your personal goals, preferences, and available resources. Here’s a breakdown of which franchise may be a better fit for you.
HomeVestors may be ideal for those who are focused on speed and scalability, as it offers a nationally recognized brand and a more straightforward path to acquiring properties. If you are looking for a business model that allows you to start part-time and scale up, the tiered franchise fee and national marketing campaigns might appeal to you.
Additionally, HomeVestors could be particularly attractive to those who want to take advantage of a proven system without needing to get involved in the nitty-gritty details of local marketing and property valuation software.
If you are passionate about renovation and creating lasting value, New Again Houses may be the better choice.
With its protected territories, hands-on approach to home restoration, and innovative financing options through Alta Capital Management, NAH offers franchisees a more tailored and supportive environment for growing their businesses. The ability to offer unique shared equity rental options and the use of advanced proprietary technology are also attractive to those looking for a comprehensive, long-term investment strategy.
If you’re more interested in a national brand, faster deals, and part-time involvement, HomeVestors could be a good fit. But if you’re looking for a franchise with a focus on high-quality renovations, local market connections, and unique financing options, New Again Houses may align better with your goals.
Both HomeVestors and New Again Houses offer compelling opportunities for aspiring real estate investors, but each franchise has its own unique advantages. HomeVestors provides a nationally recognized brand and a faster, more streamlined approach to real estate investing, while New Again Houses offers protected territories, more favorable lending terms, and a more hands-on, renovation-focused model.
Ultimately, the decision comes down to your personal goals and resources. We encourage you to continue researching both options, speak with current franchisees, and assess which franchise aligns best with your ambitions.
Contact New Again Houses today for more information about our unique approach to real estate investment and to learn how we can support your entrepreneurial journey.