DFW investors that have worked with NetWorth Realty

[Jake Larsen]

I am trying to become an investor and plan to flip as necessary to acquire buy and hold rentals. In trying to do our first deal we paid 6K to "acquire" the property based on their numbers they put out. Upon doing our own due diligence nothing, and I mean nothing, came in as they estimated. They threw up enough red flags for us with empty promises and misinformation that the deal fell through and we lost the 6K. 

As stated I am new so this could have all been on me, so I want to learn if this company just deceived us or if our due diligence process needs some work. Here is the data

Purchase price 229,000

ARV 365,000

Their estimated rehab cost 65,000

Our diligence came in at 95-100K as estimated by a GC/Investor who has been flipping for 15 years and is a home inspector as well

It appraised for ARV of 356,000

Their estimate for foundation work was 8,000 &8,500. Our guy came in at 23,000 for full foundation repair, and as I did diligence on the rest of their estimates on repair they consistently came in short; our GC separately confirmed and even informed me I was low too

Comps in the area came in at 141 per square foot, which at our square footage means we would have sold for about 320,000

Hard money was to expensive as well so we are currently working out other options so we never have to consider that option again.

So all expenses included with no major surprises we would have been all in for around 340 to 345,000, which meant a loss of 20-25,000 if we went off of price per square foot as per a realtor, or best case if it sold for appraisal value we might have made 8-10,000. 

So we did not purchase. Looking for advice so I don't ever have to loose the money for "acquiring" the property again. I know we have to do our own due diligence, but can this company really get away with misinformation on all fronts and we just loose that 6,000? Is this just part of the process for normal deals and this is common practice? Have others worked with this company before and had the same types of experiences?