Zion Homes offers a real estate license agreement for those seeking an E2 visa through a real estate business. The program was created/ marketed by Visa Solutions, an immigration and relocation agency founded in 2008. The company’s ‘invest division’ allows E2 visa investors to pursue legal status with business licensing programs. And Zion Homes is their primary offering.
The opportunity to operate using a Zion Homes real estate license differs slightly from franchise opportunities. Franchises are broad legal agreements that not only allow for investors to use the name and brand of a company, but also include more extensive operational requirements. Parts of a franchise agreement include purchasing and spending on specific supplies and safety nets, the product offerings available, and support & training from a management team.
Put simply, a franchise agreement dictates the way an investor will run their business. And the support they will receive from the franchisor.
A license agreement is a less legally binding contract between a potential business owner and the founder of a brand who is looking to monetize. These agreements give the business owner the ability to use the name and trademarks of a company. In this case the Zion Homes brand and the proprietary home development program are being offered.
If you were to invest in this program, you would be given access to the company’s operational model. But with more freedom to use it for your business. Although more freedom sounds better for a licensee, it also means far less guidance than for a franchisee. Many businesses succeed because of a strong support model from the franchisor, and licensing agreements do not have this benefit. The Zion Homes management team will give you more freedom to do business. But less support is expected when it comes to training, finding suppliers, and marketing the brand.
Currently, Zion Homes’ main real estate market is in Texas. The company boasts 4 main new developments across the state, with a focus around Houston. Examples of these communities can be seen on the New Developments page of their website. The company prioritizes the Texas real estate market because they have identified locations within the state where the demand for housing and new neighborhoods is exceeding the current supply.
Additionally, Zion Homes have announced a plan to extend their operations into Florida. They plan to build developments in Miami and Orlando starting in the next few years. One attractive facet of this company is the opportunity to relocate and begin your business in vibrant, high demand areas.
There are some financial requirements for interested investors. First, investors must have a minimum capital worth of at least $200,000. Additionally, investors will have to be prepared to invest $35,000 to cover the initial real estate license fee. Within the license agreement, there is a minimum term requirement of 4 years, and a minimum unit requirement of 10 units.
This is a medium term investment, but a high financial commitment. Investors will need at least $200,000 to deploy to their housing developments, and will be responsible for building at least 10 homes. With less overhead support, more responsibility falls to the investor to turn a profitable business model.
Financially, running a licensed business requires fewer costs like royalty, brand fund, and advertising fees that can be charged at a proportion to revenue. But these costs also fall to the business owner’s discretion. Licensed owners are also accountable for contracting builders and suppliers. As well as finding markets and geographic locations that best suit a housing development.
If you are experienced in the real estate development industry, this may be a better position for you. But if you are without experience and seeking to get exposure to the U.S. market, there are real estate franchise opportunities with greater operational support and training.
Franchises give an investor the ability to own and operate their own franchise, but with more comprehensive business models and support.
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