HomeVestors Knows That Some Investors Are Willing To Work For Sweat Equity

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Consider joining or creating a real estate investment group for sweat equity and work towards the long-term goal.

Dallas, Texas HomeVestors is the nation’s number one home buying franchise and has helped real estate investors purchase 50,000 properties over the years. The company knows that in the current economy many individuals are working for stock options, known as sweat equity, instead of cash. This is especially true of small startups that are not having an easy time raising money, but have no shortage of highly skilled and motivated individuals, ready to work for little or no pay. This partnership can be employed by real estate investors and can prove to be an individual’s ticket to being part of a successful real estate venture.

Some real estate partnerships may be financial equity partners and others may be sweat equity holders. Holders of sweat equity typically tend to be members of the managerial team and other experts involved in the smooth running of operations. Such individuals could include the likes of attorneys, brokers, accountants, appraisers, architects and surveyors.

Why would an individual with marketable skills be asked, if they want to be rewarded with sweat equity instead if being paid a normal salary? The most obvious answer may be that there really might not be that much money to go around. For example, an underfunded startup may only have stock options available. Another reason could be that the company may be perceived to be very valuable in the future and an expert with desirable skills wouldn’t mind forfeiting pay for the time being in anticipation of big future rewards. This may also be the best option for young fresh out of school professionals whose lack of experience makes their skills less marketable to well established firms. Others who may be motivated to contribute sweat equity would be those professionals with brilliant money making ideas who are very confident about their own abilities.

Owning sweat equity is one-way individuals without much capital but plenty of relevant skills can become a part of the highly lucrative real estate investment market. It is best suited for entrepreneurial professionals who are highly driven and harbor big dreams about building something from scratch, but who aren’t given much of a chance to prove their worth in the labor market. There is an intrinsic advantage to joining a partnership made up of such individuals. Those running the business have a vested interest to succeed and hence would likely be more efficient in their jobs than their counterparts.

There are some downfalls associated with working for sweat equity. An overly optimistic professional can dedicate all their precious time earning sweat equity, which may turn out to be a losing bet if the business fails to deliver. Sweat equity investors should be mindful about how much of their irrecoverable time and effort they dedicate to their investment.

About HomeVestors of America Inc.

Dallas-based HomeVestors of America, Inc. is the largest buyer of houses in the U.S., with 50,000 houses bought since 1996. HomeVestors trains and supports its independently owned and operated franchisees that specialize in buying and rehabbing residential properties.  Most commonly known as the “We Buy Ugly Houses®” company, HomeVestors strives to make a positive impact in each community.  In 2012, for the seventh 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.

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