humble, TX · Member since 2016 · 54 posts · 7 votes
Hello everyone I'm new to Bp and I was wondering if anyone has ever used New Western?They help investors buy homes. Homes that once rehabbed will make both the investor and New Western money. Any thoughts?
Investor · Round Rock, TX · Member since 2010 · 8k+ posts · 4k+ votes
10y
This company sponsored one of Elizabeth Q's Dealblender meetups recently. I had a call with one of the guys that was present and he proceeded to "interview me" to decide if I qualified to receive a look at their deals. I told the person I spoke with that we're very busy and didn't wish to be one more name on a giant list of newbies that would overpay for deals. They also didn't seem to know how to source deal flow for developers and thus I passed on the opportunity.
In general most of the people like this sponsor meetings with newer folks because they generally don't know what they're doing and tend to overpay for assets. Net Worth Realty has a very similar business model in Austin. It's fine for some people I guess if you're not able to generate deal flow of your own or are fine with smaller margins.
In general trying to source fix and flip deals in Austin right now is a poor business model IMO. I'm sure there are projects to be found, but developing stuff from the ground up is a much better margin model, but it presumably does take more time and experience to execute on.
Lender · Winter Park, FL · Member since 2021 · 737 posts · 412 votes
3y
@Ryan Taylor In my experience New Western is not direct on the most of their deals. They daisy chain other wholesalers deals and mark the price up, cherry pick comps, and threaten investors with $20,000 fees via a NDA so no one goes around them. As a tenured Lender in this space we do not finance New Wester deals, and many other lenders have stopped for some of the same practices. I don't want to label all NW franchises, because I'm sure there are some doing legit business but FL,GA, and NC have been horrendous. NO WHOLESALERS threatens a $20,000 fine or makes buyers sign NDAs. I know this because I lend money and wholesale and New Western is always quick to act like they are "cash buyers". Proceed with caution