The HomeVestors Associate Franchise

The Economy 401K’s Layoffs Credit Crisis Government Help? We hear by the end of 2010, things will start turning back the other way…but who knows? ®

? So what do you do? Where do yo Invest?

Real estate isn’t the only answer, but we think it’s a particularly good answer, based on history, and by buying, selling, holding, rehabbing real estate, it’s a good investment for now and the future. ®

NOW is the time to SUCESSFULLY Invest in REAL ESTATE? Witih house prices still falling, now is the best time to invest in Real Estate

What Are My Options? How Do I Invest In Real Estate? So what are my options in real estate investing?

Don’t Go It Alone! You could go it alone as an independent, many are successful, but one of the principle reasons that someone interested in real estate investing looks for help or acquires an HVA franchise is the decided lack of success at going it alone

GURU’s, Books, Tapes, Seminars You could pay $1,000 thousands to a RE investor GURU. GURU’s, Books, Tapes, Seminars

96% Would you care to guess how many attendees pay 5 Figures for a seminar with a GURU and never buy a house?

HomeVestors® Overview Founded by Ken D’Angelo The “We Buy Ugly Houses®”company Began franchising in 1996 200+ franchises in 35 states and 100+ markets HomeVestors was acquired in June 2008 by Franchise Brands, LLC The only business format home buying franchise in the USA We provide:  A powerful brand  World-class training and marketing support for the lifetime of your franchise  Financing for the purchase, repair and resale of houses Named to Franchise Business Review’s Top 50 Franchises for third year in a row - 2008 ®

HomeVestors Overview Nearly 40,000 houses bought by franchisees since 1996 $42 million loaned to our franchisees to buy and rehab properties YTD 2008 $11M in mass media advertising YTD in 2008 on behalf of franchisees 135,000 leads generated by advertising YTD 2008 from people in an ugly situation ®

Franchises by State and Market Seattle Spokane Eau Claire Appleton/Oshkosh Rochester Worcester MINNEAPOLIS/ST. PAUL Boston Westchester Providence Boise MILWAUKEE Detroit New York Hartford Long Island PHILADELPHIA Newark Edison Pittsburgh Trenton Gary Wilmington CHICAGO Hagerstown Will County Kent-Sussex Salt Lake City Indianapolis Cincinnati DENVER WASHINGTON, D.C.* St. Clair/ Madison Counties Norfolk Colorado Springs Kansas City Richmond ST. LOUIS Wichita Hickory Greensboro Las Vegas Springfield Asheville CHARLOTTE Raleigh-Durham Nashville Albuquerque Tulsa Memphis Wilmington Oklahoma City Columbia PHOENIX ATLANTA Lubbock Birmingham Gadsden Charleston Tucson Denton-Fort Worth DALLAS Montgomery Columbus Woodbine El Paso Tyler/ Longview Gulfport- Biloxi Mobile Jacksonville Gainesville Pensacola AUSTIN Panama City Ft. Walton Beach Brevard County Polk County SAN ANTONIO HOUSTON St. Lucie/Martin Counties Tampa/St. Petersburg Palm Beach County Corpus Christi Sarasota Broward County MIAMI-DADE

The HomeVestors Business Franchisees specialize in buying and selling houses as a full-time or part-time business In most states, no license is required Most independent investors focus on bankruptcies and foreclosures HomeVestors reaches a much larger market of home sellers who will take a substantial discount in exchange for a quick cash sale and the buyer taking the house in “as is” condition ®

What Are We Looking For In A Franchisee? A leader who has the desire and passion to build a real estate investing business The personality to be a successful franchisee The capital to invest in a franchise ®

Who’s A Motivated Seller? People who inherit real estate located in another city They own rental properties they no longer want They need to sell for investment capital Their properties need extensive repairs HomeVestors rescues Motivated Sellers from “ugly” situations: Divorce, Death, Loss of Employment, etc. ®

How Do Franchisees Make Money? Wholesaling/Assigning to investors for positive cash flow Rehab/Retail properties Buy and Hold to build wealth (rentals) Note: The mix of these exit strategies depends on the goals of the franchisee and the markets ®

The Pieces of the Puzzle – HomeVestors can help Question: How do you consistently find properties to buy? Solution: HomeVestors has a powerful lead generation program that attracts sellers! Question: How do you determine repair costs and also make quick and accurate offers? Solution: HomeVestors has proprietary repair evaluation software that determines market value, repair costs and target purchase prices. Question: How do I manage the business side of the franchise? Solution: HomeVestors real-time business management software tracks and manages everything from rehab tasks and investor activities to potential sellers and projected cash flow. ®

Other Puzzle Pieces National brand and image Web site to sell houses Referral programs to generate leads Business development consultation through a Development Agent (DA) for Associate Franchisees Complete training and support Franchisee conventions and training events National vendor relationships ®

The HomeVestors Brand Stands Out! Get world-class training by RE professionals and literarly hundreds of years of real estate experience. ®

HomeVestors World-class Training How to consistently make deeply discounted buys, how to sell in this market, how to create a synergistic network where everyoen knows the more you help, the more you get helped. HomeVestors World-class Training

Leads! You’ll get leads no one else ever sees – HVA has a marketing and lead generation system. The only one of its kind in the industry, that is uncanny in its abilty to find homeowners who are ready to sell their house at a discount. The beauty of these leads is that they call you. They’re already warm. So far in 2008, we’ve generated 135,000 leads from people in ugly situations. Our customer resource system, RESULTS tracks and manages each component of your buisiness from rehab to investor profiles to cash flow.

Financing You’ll have access to inhouse financing, depending on your credit and financial condition, HVA offers loans to franchisees for purchase repair and resale of your properties. So far in 2008, we’ve loaned over $40 million to our franchisees. Helps the franchisee manage the dashboard with real time data.

HomeVestors Franchise Levels Development Agent Associate Franchise Full-service Franchise Associate Franchise Development Agent (DA) ®

Associate Franchise (AF) Investment $12,000 franchise fee Candidates must have a minimum of $50,000 in liquid assets available 5 year franchise agreement Spend at least $1,000 per month on advertising Ongoing fees: Monthly fee: $600, includes $500 credited toward transaction fees Buy/Sell transaction fee: $1,350 minimum per transaction Assistance fee paid to the Development Agent This is not a franchise offering. An offering can only be made by obtaining a HomeVestors Franchise Disclosure Document (FDD). All fees outlined in the FDD. ®

Development Agent Support Instead of paying $1,000 thousands of dollars on one seminar, you’ll have ongoing support for the life of your contract from your local development agent, backed by a company consistently named in the Top 50 of franchises by Franchise Business Review, the last 3 years. Development Agent Support

Your Development Agent Delivers Reduced learning curve and time until profitability Less cost than a full service franchise; less overhead; remain bi-vocational Buy houses at HomeVestors prices Financing relationships Inbound lead management Escrow and closing management Property management Building Contractor relationships Weekly coaching Monthly training

What Do You Do Next? Go to the HVA Web site: www.HomeVestorsfranchise.com and submit: Request for Franchise Consideration This is located under Own A Franchise, then click the tab – Request for Franchise Consideration for the Associate Franchise (AF) Receive a Franchise Disclosure Document (FDD) ®