DALLAS, Aug. 29, 2011 /PRNewswire/ -- HomeVestors of America, Inc., known as the "We Buy Ugly Houses®" company, last week sent a letter to President Obama asking the federal government to take several steps to help small business and individual real estate investors further aid in the recovery of battered U.S. housing markets by investing in the government's excess inventory of single-family houses.
"Our solution has the benefit of being simple and having been tested," wrote the co-presidents of HomeVestors of America in response to the Obama Administration's call for input on the 'Disposition of Real Estate Owned Properties' by government enterprises. "There is little risk to the federal government in helping small investors help the market recover, while the upside is tremendous: Local private investment in local communities and job creation to repair and rehabilitate houses, with affordable sale and rental housing produced as a result."
"In contrast," the HomeVestors executives wrote, "reliance on big, national (or even global) investors including hedge funds, and complicated programs, are less likely to produce meaningful results, more likely to take longer to execute, and more likely to cost the government more money over time."
The full text of HomeVestors' letter to President Obama follows here. A copy also is available on the HomeVestors website.
Dear President Obama:
On August 10, 2011, the Federal Housing Finance Agency, the Treasury Department and the Department of Housing and Urban Development issued a call for input on the "Disposition of Real Estate Owned Properties" by government enterprises. The objective is "to help address current and future REO inventory" and "explore alternatives for maximizing value to taxpayers and increasing private investment in the housing market, including approaches that support rental and affordable housing needs."
President Obama, there are people who, given the right resources, can and will help solve the housing crisis. In fact, they're doing it already, with little or no risk to the taxpayer.
Who are these people? Big institutions, including hedge funds, are not the answer. Why?
So, who are the people already making great strides to solve the issue now?
The answer is the same answer that built this great country. The backbone of America is small businesses. The local business man or woman who cares about their country, but more importantly, lives in a community, takes pride in their community and works hard to make a living, helping that community remain stable if not thrive.
In this case, the small business is a real estate investor. Across this great land local people are investing in their local communities. They believe in the future of their cities. They appreciate the intrinsic value of residential real estate. They believe that these same properties that are discounted today will be worth more in five years.
And, they are willing to invest in their communities to make sure that happens.
At HomeVestors, we are America's #1 Home Buyer. Our nationwide network of franchises, small independently owned and operated businesses, together have purchased more than 45,000 houses since 1996, many of them "ugly" and in need of repair. In fact, we were buying houses long before the current "crisis," and we never stopped buying them. Interest in real estate investing is higher than it has been in recent years as evidenced by the number of people currently requesting information about becoming a HomeVestors® franchisee!
How can the country aid small business real estate investors to achieve your objectives?
Real estate investors want to buy government-owned properties. The problem is that local bankers have become so risk averse (in part because of increased capital requirements and other regulations) that they either fear or are prohibited from loaning any money for real estate purchases of any kind. They won't even talk to many real estate investors. This is unacceptable; the high volume of property inventory cannot sell without liquidity.
So critical is liquidity that at HomeVestors, we are developing a vehicle to fund the acquisition of rental properties by our franchisees. We are not just talking about a solution – we are implementing a solution.
No one knows a local market better than the local businesses. Look for solutions that empower the local investors.
President Obama, small businesses are the backbone of this nation. Given the chance, a local real estate investor will:
In summary, Mr. President, our solution has the benefit of being simple and having been tested … there is little risk to the federal government in helping small investors help the market recover, while the upside is tremendous: Local private investment in local communities and job creation to repair and rehabilitate houses, with affordable sale and rental housing produced as a result.
In contrast, reliance on big, national (or even global) investors including hedge funds, and complicated programs, are less likely to produce meaningful results, more likely to take longer to execute, and more likely to cost the government more money over time. Isn't this one of the reasons why the housing crisis occurred in the first place?
Thank you for your consideration, President Obama. We stand ready to shift our efforts into an even higher gear to help you solve the housing crisis.
David L. Hicks and Kenneth Channell
Co-Presidents, HomeVestors of America
Dallas-based HomeVestors of America, Inc., the #1 buyer of houses in the U.S., was incorporated and began franchising in 1996. The first franchise real estate investment company, HomeVestors trains and supports franchisees that specialize in buying older homes in need of repair or updating, and rehabbing them. Most commonly known as the "We Buy Ugly Houses" company, HomeVestors strives to make a positive impact in each community. In 2010, for the fifth consecutive year, HomeVestors was among the prestigious Franchise Business Review's "Top 50 Franchises," a distinction awarded to franchisors with the highest level of franchisee satisfaction. For more information, visit www.HomeVestors.com. To learn more about the HomeVestors franchise, visit www.HomeVestorsfranchise.com.
SOURCE HomeVestors of America, Inc.