Real Estate Franchising with Kenny Wright

November 24, 2021 melissa Real Estate Comments Off on Real Estate Franchising with Kenny Wright

Real Estate Franchising with Kenny Wright

Are you finding it difficult to get into the real estate investing space? Are other big investors getting in your way? Kenny Wright understands that, for sure! If the “big dogs” are eating up all the leads, why not hitch a ride on a bigger dog instead? How? Read on to learn more about franchising in real estate!

The points below are from the seventeenth episode of the Real Estate JAM, where Kenny talks about how he got into real estate investing and lending, what getting a franchise is like, “relationship-based lending”, and what his numbers look like. If you want the full experience, tune in to the full episode on YouTube, Spotify, or Apple Podcasts!

[Disclaimer: The opinions expressed in this article reflect the sentiments shown during the podcast episode, which are not supposed to be treated as factual. These thoughts are based on a unique set of experiences, and what may have worked (or might not have worked) for one may not necessarily work for another. Each investor (or whoever else reads the article) should make decisions based on their circumstances and research.]

 

If You Can’t Beat Them, Join Them

During the podcast, Kenny shares the beginnings of his real estate adventure. He was trying to get deals locally, but it seemed like a tough battle to fight against the “big dogs” that spent thousands of dollars into marketing. The market was filled with these big-money investors and massive corporations that it was practically impossible for a newbie to come in! So, what did Kenny do? He got himself a “We Buy Ugly Houses” franchise. You know what they say: “If you can’t beat them, join them.”

 

Wait, How Does Franchising Work?

If you don’t understand what a franchise is, it’s essentially using a company’s resources and fame to benefit your business. In Kenny’s case, he couldn’t get deals, so he “bought into” the company (AKA get a franchise). Because the people keep coming over to the company (since they’re already an established name), they then refer Kenny to whoever’s availing the company’s services in his area.

 

Does It Work?

Of course, it does! It’s a long-standing business model, so it definitely works.

For Kenny, it worked really well since he didn’t want to deal with any marketing at all. He was also swamped with his full-time job, so he was content to just get calls whenever a lead came through, even if they came with an upsetting cost. Yes, he did say it started to get annoying when the fees started piling up! But that’s the “give and take” situation you’re in when you’re getting into franchising.

 

Is it For You?

As you might have already guessed, going for a franchise depends on your situation. If you have similar circumstances with Kenny, such as having other business ventures or jobs to do, just wanting passive income to come through, or are in a market that’s difficult to enter, then getting into a franchise makes total sense. However, if there aren’t any “big dogs” in the area, or if they aren’t really THAT big, then it might not be a good idea. You do have to consider that you’re going to do your marketing, though. Kenny said that some people who’ve stopped franchising with Home Investors (they’re also We Buy Ugly Houses) and did things themselves weren’t able to get back what they spent on marketing. But then again, each person has their own set of circumstances. We ourselves can do it on our own.

Want to learn more? You can listen to the full episode on YouTube, Spotify, or Apple Podcasts!

 

Outline of the Episode:

  • [01:37] Kenny’s adventures in the construction industry, real estate world, and hard money lending realm.
  • [06:20] The benefits of going for a franchise versus getting deals locally on your own.
  • [09:36] A deeper dive into how Kenny does hard money and private money lending.
  • [14:06] The benefit of “relationship-based” lending.
  • [18:12] Kenny’s criteria to the deals he’s getting. What do his numbers look like?

 

About Kenny Wright:

I am the owner of several companies. My first bread & butter is my Construction company specializing in the custom home & light commercial market.

I started investing in Real Estate in 2008, buying my first piece of raw land & in 2012 with my first rental. Since then, I have wholesaled, bought, fixed, flipped SFR properties in the DFW area. I started Wright Boys Investments for lending out Hard Money for people looking to do the same.

Longhorn Notes is strictly for purchasing performing and non-performing mortgage deeds, helping people get back on track with their payments, and reselling the performing notes.

 

Resources:

 

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