‘We Buy Ugly Houses®, Explained:’ 9 Things to Know About the House-Flipping Franchise
- Published on
- 11 min read
-
Valerie Kalfrin, Contributing AuthorClose
Valerie Kalfrin Contributing AuthorValerie Kalfrin is a multiple award-winning journalist, film and fiction fan, and creative storyteller with a knack for detailed, engaging stories.
-
Sam Dadofalza, Associate EditorClose
Sam Dadofalza Associate Editor
Sam Dadofalza is an associate editor at HomeLight, where she crafts insightful stories to guide homebuyers and sellers through the intricacies of real estate transactions. She has previously contributed to digital marketing firms and online business publications, honing her skills in creating engaging and informative content.
The slogan “We Buy Ugly Houses” explained what the famous company does, but what really is the truth behind the catchy phrase and the real estate firm’s business model?
Famous for its ubiquitous yellow billboards along the interstate featuring a shaggy-haired caveman, HomeVestors of America, better known as We Buy Ugly Houses®, has become a household brand in the U.S. The longtime private real estate investing franchise offers homeowners a simple deal: Cash for your home in its current state, no matter how pretty it is or what underlying issues may lurk beneath the surface.
Despite the down-to-earth and widespread local marketing of We Buy Ugly Houses, many people don’t know much about HomeVestors as a company beyond the 800 number they see on those roadside ads. You may wonder: Who represents “we”? And how “ugly” does a house have to be for them to buy it?
Speed Up Your Home Sale with a Cash Offer or a Top Agent
Use HomeLight’s Simple Sale platform to sell in as little as 7 days without repairs or showings. You can also receive and compare an estimate of what a top agent might be able to get for your house.
As an established player in the cash-buying space, We Buy Ugly Houses has an interesting history, so we compiled this list of fun and fast facts about the company churned up from the interwebs.
Whether you have a dilapidated home, you don’t know what to do with, or you just love to geek out on all things real estate, this primer will fill you in on how this house-flipping franchise started, expanded, and your options for working with companies that pay all-cash for homes in general.
1. We Buy Ugly Houses was founded by a real estate agent
Selling your house directly to a company such as HomeVestors runs opposite to the conventional listing process, whereby you partner with a real estate agent, primp and prep your house for sale on the open market, and let buyers compete for your home.
You’d never guess, then, that HomeVestors and the concept of We Buy Ugly Houses were created by someone who lived and breathed the traditional way of doing real estate: a practicing Dallas and Houston real estate agent with decades of experience named Ken D’Angelo.
2. It started with a late-night infomercial
As the story goes, D’Angelo was inspired by a late-night infomercial touting the inside track on how to buy a home, which put him in the entrepreneurial spirit. With deep knowledge of the industry thanks to his years spent working for brokerages like Red Carpet Realtors and ERA Realtors, D’Angelo saw an opportunity to go where others wouldn’t in real estate, namely, straight toward those houses deemed “ugly” or unworthy of an offer.
So began the foundations of a business built on buying properties at below-market value, renovating them, and re-selling them on the open market, a process D’Angelo would master and develop training systems for that he could then pass on to others. The Texas agent founded the company in 1989 as a one-man flipping business in Dallas-Fort Worth. He began franchising in 1996 after raising $350,000 in a public debt offering.
3. Almost 1,000 real estate investor franchisees are employed under the brand
After planting roots in Texas, We Buy Ugly Houses then franchised in Kansas City and Atlanta, as real estate investors adopted the house-flipping model under a common name in new territories. From there, the business went countrywide.
We Buy Ugly Houses has purchased more than 150,000 houses to date through a network of more than 900 independently owned and operated franchises across 46 states and the District of Columbia.
4. So yes, the company isn’t one buyer — it’s a bunch of local investors
As repeatedly mentioned, HomeVestors is a nationwide franchise. This means when you sell, your home is actually bought by a local franchisee or investor in your area. These buyers each run their own businesses, so their offers and how smoothly they handle things can vary a lot depending on your market.
Don’t expect a one-size-fits-all price. Local investor margins, not some central headquarters, set the numbers. Some franchisees are seasoned professionals who can make the process super easy, while others might not have in-depth local real estate expertise. Bottom line: you’re not just selling to a brand. Rather, you’re selling to a local investor with their own rules.
5. It has built its leadership team from industry veterans
D’Angelo passed away in 2005, and franchising expert John Hayes took over leadership, serving until 2009. David Hicks, who joined HomeVestors in 2005 and later became head of the company, developed its franchisee coaching process. Under his leadership, HomeVestors ranked on the Inc. 5000 list for the sixth time in 2020. Hicks stepped down as head of the company in the summer of 2023, after 18 years with HomeVestors.
Larry Goodman took over leadership in August 2023 following Hicks’ departure. He brought extensive experience in real estate operations, including executive leadership in multifamily property management and investment and asset management, overseeing commercial and residential portfolios.
Goodman stepped down from the role in September 2025. Joshua Waltzer currently serves as CEO of HomeVestors, bringing deep experience in the finance and real estate industries.
6. The shaggy-haired caveman repping We Buy Ugly Houses has a name — and a backstory
You may know him as the caveman on those roadside billboards, but he does have a name: Ug Lee. He sports a holey yellow tunic and a bushy brown beard and always carries a bag of cash, ready to buy ugly houses and help homeowners get out of desperate situations. He represents HomeVestor’s dedication to seeing the beauty in what a home could be.
7. From ugly homes to ugly situations, it won’t shy away from a property
HomeVestor’s mascot and slogan serve as reminders of the company’s commitment to buying houses fast and easy, regardless of the circumstances. They let sellers know that the company will embrace a home or situation that other buyers find unattractive, such as:
- Homes with roofing, foundation, plumbing, electrical, or other structural issues
- Homes located in a flood plain or other inconvenient location
- Homes with high interest rates or mortgage payments that are too high to handle
- Homes connected with bad memories for the homeowner, such as a divorce or death
- Inherited properties with which the seller may be unfamiliar
The company has taken on some of the most extreme cluttered homes, including houses with pet monkeys and bats living in the attic. They’ve also tackled hoarder homes that seemed impossible to clean, turning chaotic spaces into safe, livable, and market-ready properties.
HomeVestors conducts the Ugliest House of the Year contest annually. The title of “Ugliest House of the Year” in 2025 goes to a property in Boise, transformed by husband-and-wife We Buy Ugly Houses franchisees Paul and Tanice Myers.
Over the course of six weeks, the 1,580-square-foot home underwent a full renovation, resulting in a stunning turnaround. Their efforts increased the property’s value by more than $56,000, turning what was once an eyesore into a highly marketable home.
8. It took sellers time to trust the simple process of a cash, as-is sale
“You’ll buy my house, in any condition? You aren’t going to list it?” In the early days of HomeVestors, sellers were often skeptical that the company would make an offer on properties that were in disrepair. Franchisees had to build trust, showing homeowners that their deals were legitimate and that they wouldn’t need to make any repairs to receive payment.
Over time, as HomeVestors established its reputation, the company not only gained the confidence of sellers but also created a supportive and rewarding environment for its franchisees. Today, several franchise owners love what they do, with the majority reporting satisfaction in their businesses. HomeVestors has consistently excelled in franchise support and has been recognized as a top franchise for more than a decade.
9. It bases its offer on the level of work required, among other factors
To sell a home through We Buy Ugly Houses, a homeowner fills out the website contact form or calls the company to connect to a franchise in their area. A representative visits the property, evaluates its condition, and makes a cash offer depending on several factors, including:
- The home’s current condition
- The approximate cost of renovations and repairs
- The time required for renovations and repairs
- The “post-renovation” value compared to other homes in your area
- The costs of maintaining the home until it sells (such as paying for utilities, taxes, and insurance)
- The real estate commissions required to sell the home
Many rehabbers use the flipping industry standard known as the 70% rule, where an investor offers no more than 70% of a property’s after-repair value (ARV) for a house they plan to flip. They subtract any estimated repair and holding costs from that 70%.
Some offers are negotiable, though. Sometimes, homeowners reject initial offers from We Buy Ugly Houses, thinking they were too low. However, after talking to a few real estate agents who evaluated the level of repairs needed and the recently sold homes in the area, sellers would reach out again to HomeVestors to discuss and negotiate offers.
Franchisees claim to close on a property within two weeks, helping clients who need to relocate quickly and can’t carry two mortgages.
10. Homevestors’ process can vary widely between franchises
HomeVestors’ “We Buy Ugly Houses” brand promises a fast and easy sale, but experiences can differ widely between franchises. Many sellers report issues that are worth knowing before you agree to an offer. Here are some common complaints against the business:
- Final offers lower than initial quotes: Many sellers report that the actual offer comes in noticeably below what was first discussed.
- Pressure tactics or urgency framing: Some franchisees push sellers to decide quickly, making the process feel rushed.
- Inconsistent professionalism between franchises: Because each location is independently run, the experience can range from polished and smooth to sloppy and disorganized.
- Limited room to negotiate pricing: There’s often little flexibility to haggle, as local investors stick closely to their own margin rules.
11. It changed the way it does business after past complaints
The “cash for your home” rehabbing business model has led to what some housing advocates call predatory tactics, particularly toward homeowners in vulnerable situations. Following a ProPublica investigation in 2023, HomeVestors of America changed its policies to include a simplified, single-page disclosure with a three-day window to terminate a sales contract.
Previously, some franchise owners employed deception and high-pressure sales tactics to persuade homeowners to sell their properties well below market value. A segment of the company’s advertising also targeted homeowners facing difficult situations or who didn’t fully understand their home’s worth. According to ProPublica, this included sending mailers to individuals who had recently gotten divorced or experienced a death in the family.
A company spokesperson told ProPublica that HomeVestors has adopted other changes, including “an ethics hotline for franchise owners to report violations” and “a team of ‘brand compliance auditors’ to better police franchise activities.”
ProPublica’s reporting contributed to HomeVestors’ then-CEO David Hicks stepping down in June 2023. Larry Goodman, who succeeded Hicks, told the Franchise Times that the company has “formally prohibited franchisee advertising activities that are intrusive” but did not provide specific details.
Before you accept any cash offer, investigate what your home is worth through a comparative market analysis (CMA), which many real estate agents offer for free. Use HomeLight’s Agent Match tool to connect with a top real estate agent experienced in putting together CMAs that objectively show you what your house is worth.
12. It isn’t the only route to a quick and low-hassle sale
HomeVestors has become a major franchise offering continuity among real estate investors who purchase homes under the We Buy Ugly Houses brand. That said, the company isn’t the only means of selling your home for cash, nor are ugly homes the only properties investors may be interested in.
HomeLight developed our Simple Sale option for home sellers, knowing that the convenience of a cash offer appeals to a wide range of sellers, whether they aren’t comfortable showing their home while it’s on the market or need to relocate quickly for a new job in another city.
Through Simple Sale, HomeLight works to match you with an investor in your area who can make a full cash offer on your property within 24 hours. With this, you can sell your home on your timeline, in as few as 7 days or whenever you’re ready. The cash offer you receive will be competitive, with no hidden fees or agent commission costs involved.
Like selling with We Buy Ugly Houses, HomeLight Simple Sale allows you to skip the repairs, prep work, and open houses and go straight to receiving an offer for your house as-is.
However, the Simple Sale platform can also provide offers for people with houses in fair or even great condition who are looking for a fast sale. To make sure you’re receiving a top offer for your home, we’ll compare your Simple Sale cash offer against an estimation of what you could realistically fetch on the open market with the help of a top real estate agent, so you can make an informed decision while weighing your selling priorities.
A Fast, Convenient Way to Sell Your Home
Get an all-cash, no-obligation offer through HomeLight’s Simple Sale platform whenever you’re ready. Receive your offer in as little as a week and close in as few as 10 days. No showings, no repairs, no open houses.
Ready to sell an ugly home?
Selling a home in any condition doesn’t have to be stressful. Companies like We Buy Ugly Houses offer a fast option, but it’s important to know your home’s true value before accepting an offer. By understanding your choices, you can make the decision that’s best for you and your family.
HomeLight’s Simple Sale gives sellers a clear, competitive offer without the hassle of repairs or traditional listings. Get started today with HomeLight’s Simple Sale and see how easy selling your home can be.
Header Image Source: (Jim Lukach / Flickr via Creative Commons Legal Code)
At HomeLight, our vision is a world where every real estate transaction is simple, certain, and satisfying. Therefore, we promote strict editorial integrity in each of our posts.
