Has anybody purchased from New western

New to Real Estate · DFW, TX · Member since 2023 · 6 posts · 5 votes

Hey everybody I’m wanting to fix and flip my first property this year. Has anyone ever purchased from New western wholesaling company?

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Quote from @Kimberly Bunch:

@Jake Jones one more thing. Make sure you pull your own comps. I look at almost every deal they send and their comps have been WAY off.

dont trust any of their information.. ARV rehab etc.. use it only as a lead source.. I would not put up the deposit until you darn sure you want to go through with it.. I have had clients get totally screwed buying their deals and not doing enough due diligence and just trusting the info they provided its high pressure and basically rookie agents who are trying hard to get that 10k in the door.

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Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
3y
Quote from @Jay Hinrichs:

Quote from @Joe S.:

Quote from @Kimberly Bunch:

@Jake Jones one more thing. Make sure you pull your own comps. I look at almost every deal they send and their comps have been WAY off.

Almost all of the Wholesalers comps are way off. I recently unsubscribed from all my Wholeseller list for this very reason.

its tough for wholesalers now.. many have not adjusted to the new market conditions. I tell all my clients to negotiate hard and whatever they are asking come in much lower.. And we are still getting deals.. I dont deal with them directly of course .. but i have influence from my lender standpoint.. I have maximum wholesaler fee's I will allow ..

Do you mind sharing your maximum Wholesaler fee?
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Logan M.
Investor · Provo, UT · Member since 2016 · 759 posts · 626 votes
3y
I think your question has been answered above but I want to throw in a couple of tips.
1. You pay a premium to buy from a wholesaler, sometimes it still works.
2. Try to find deals directly from the owners, if you get good at this you will have a much higher success rate.
3. Figure out the strategy you want to pursue, if this is flipping then build your systems to allow you to scale effectively another reason tip #2 is so important.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Joe S.:

Quote from @Jay Hinrichs:

Quote from @Joe S.:

Quote from @Kimberly Bunch:

@Jake Jones one more thing. Make sure you pull your own comps. I look at almost every deal they send and their comps have been WAY off.

Almost all of the Wholesalers comps are way off. I recently unsubscribed from all my Wholeseller list for this very reason.

its tough for wholesalers now.. many have not adjusted to the new market conditions. I tell all my clients to negotiate hard and whatever they are asking come in much lower.. And we are still getting deals.. I dont deal with them directly of course .. but i have influence from my lender standpoint.. I have maximum wholesaler fee's I will allow ..

Do you mind sharing your maximum Wholesaler fee?

depends on the deal.. I see 3 to 10k rare will I go over 10k.. keep in mind you dont get title insurance for wholesaler fee's in excess of the purchase price on the contract.. so folks are taking a huge risk when they allow wholesalers to tag on 20 to 30k or more.. I simply will not do it.. not worth the risk.. keep in mind most wholesalers deals are somewhat hinky bad title or other weird stuff going on .. LOL.. I got burnt once on this so never again .. I know I have to allow them as my clients use them in many markets and I am fine with small dollar risks but not larger ones. plus market has changed so if wholesalers want big fee's they need to double escrow so i get title insurance as the lender. Buyers of course do not know this.. and for sure the wholesalers probably dont know it either so until it happens to you.. or you read one of my cautionary tales on the subject one would have no clue until its to late.
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Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
3y
Quote from @Jay Hinrichs:

Quote from @Joe S.:

Quote from @Jay Hinrichs:

Quote from @Joe S.:

Quote from @Kimberly Bunch:

@Jake Jones one more thing. Make sure you pull your own comps. I look at almost every deal they send and their comps have been WAY off.

Almost all of the Wholesalers comps are way off. I recently unsubscribed from all my Wholeseller list for this very reason.

its tough for wholesalers now.. many have not adjusted to the new market conditions. I tell all my clients to negotiate hard and whatever they are asking come in much lower.. And we are still getting deals.. I dont deal with them directly of course .. but i have influence from my lender standpoint.. I have maximum wholesaler fee's I will allow ..

Do you mind sharing your maximum Wholesaler fee?

depends on the deal.. I see 3 to 10k rare will I go over 10k.. keep in mind you dont get title insurance for wholesaler fee's in excess of the purchase price on the contract.. so folks are taking a huge risk when they allow wholesalers to tag on 20 to 30k or more.. I simply will not do it.. not worth the risk.. keep in mind most wholesalers deals are somewhat hinky bad title or other weird stuff going on .. LOL.. I got burnt once on this so never again .. I know I have to allow them as my clients use them in many markets and I am fine with small dollar risks but not larger ones. plus market has changed so if wholesalers want big fee's they need to double escrow so i get title insurance as the lender. Buyers of course do not know this.. and for sure the wholesalers probably dont know it either so until it happens to you.. or you read one of my cautionary tales on the subject one would have no clue until its to late.

That’s some really good information. I know you had mentioned in a post before that you like to meet your clients in person. If you’re ever near, San Antonio, would definitely like to meet you in person.
If you could take a quick phone call sometime, I would like to explain a unique situation to you.
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Julien J.
Investor · CO · Member since 2016 · 757 posts · 1k+ votes
3y
I've come across them a few time and they were advertising "wholesale" deals that were on listed on market.
They had a nice little markup too for themselves, but you could have saved yourself $30k by using an agent to represent you.
Keep up the due diligence out there!
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
3y
@Jay Hinrichs In jurisdictions where the assignment fee is considered part of the consideration paid and recited in the deed, the end buyer can request title insurance for the full amount paid. Have you faced resistance on that?
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John O'LearyPro Member
Lender · Winter Park, FL · Member since 2021 · 737 posts · 412 votes
3y
What wholesaler makes you sign an NDA that has a $20K fee?? They piggy back off other wholesalers deals and advertise that they are direct. It's comical.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Tom Gimer:

@Jay Hinrichs In jurisdictions where the assignment fee is considered part of the consideration paid and recited in the deed, the end buyer can request title insurance for the full amount paid. Have you faced resistance on that?

I have in KC and MO they simply wont do it.. I tried 3 different title companies.
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
3y
Quote from @Jay Hinrichs:

Quote from @Tom Gimer:

@Jay Hinrichs In jurisdictions where the assignment fee is considered part of the consideration paid and recited in the deed, the end buyer can request title insurance for the full amount paid. Have you faced resistance on that?

I have in KC and MO they simply wont do it.. I tried 3 different title companies.

Doesn’t make sense to me. Shop around. Buyer can request higher coverage based upon perceived value vs. contract price, actual consideration, other scenarios. It just may require underwriter approval, and even then only in some instances such as over the limit. Lenders can dictate coverage based upon potential loan… neg am, future advances, etc.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
3y
Quote from @Tom Gimer:

Quote from @Jay Hinrichs:

Quote from @Tom Gimer:

@Jay Hinrichs In jurisdictions where the assignment fee is considered part of the consideration paid and recited in the deed, the end buyer can request title insurance for the full amount paid. Have you faced resistance on that?

I have in KC and MO they simply wont do it.. I tried 3 different title companies.

Doesn’t make sense to me. Shop around. Buyer can request higher coverage based upon perceived value vs. contract price, actual consideration, other scenarios. It just may require underwriter approval, and even then only in some instances such as over the limit. Lenders can dictate coverage based upon potential loan… neg am, future advances, etc.

thanks tom will push harder.. I think though for the average fairly new buyer who is buying from a wholesaler through an assignment only they wont know to ask.. and escrow will just write the title insurance for the purchase price on the contract and not include the assignment fee.. I mean i have gone hard with 3 of them in KC with no luck. so i just turn down funding deals with assignment fee's that are over the limit of risk i want to take.
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John MorganPro Member
Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
3y
@Jake Jones
I’ve looked at some homes new western showed me. All their comps and repair estimates were way off. And their “market rent” numbers were all about $300/month high which is very misleading and unethical in my opinion. I know what I’m doing and how much rehabs cost fortunately. But some noobs assume they’re probably being honest with their numbers and get ripped off. I know several people that did get ripped off by trusting NW’s numbers. I tell people to never trust wholesalers numbers. They’re just trying to move old junky houses to investors and don’t care about the buyer. However, I have seen a couple good deals I’ve looked at with NW. And I have bought a property from a wholesaler. It turned out to be a lemon, but that’s the risk we take. Lol. Just know your numbers and you’ll be fine with the few good deals they have. And really know your numbers with doing rehabs. They’ll tell you a 70j rehab will only be a 10-15k rehab. Lol
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Aaron Campbell
Member since 2020 · 11 posts · 6 votes
3y
@Jake Jones I am an agent at new western if you have any questions feel free to reach out to me. I will tell you exactly how we work and you can decide if its a good fit for you. Some people prefer to buy deals through us so they dont have to do any cold calling or dealing with the seller. Some people prefer not to use a wholesaler and go direct to seller themself. In my opinion it just depends on how you want to run your business and what kind of work you want to do. We do double close our properties and guarantee clear title. We also include comps in all of the packets we send out (you should still run your own) But we wont post an exact ARV or Rehab Cost in our packets (this is a more recent change). This is because each investor sees different numbers and can do the same rehab for a different costs depending on their connections. For some peace of mind multiple agent in the san antonio office have also flipped homes for themselfs and they bought their houses through new western following the same process any investor that wanted to buy from us would. Thats the basics but if you have more questions send me a message.
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Nick BelskyBusiness Member
Residential and Commercial Broker · Member since 2021 · 1k+ posts · 704 votes
3y
@Jake Jones
As broker, I have been on the other side of deals with New Western, quite a bit. So, yes, they are a legit company and do offer a great service to many investors, for a fee, of course. I cannot speak from the client side, but as a broker where the investor decided to NOT use one of their preferred lenders (I was the lender), they are quite aggressive towards brokers and other loan officers. I completely understand their model and don't ever take anything personally, but they can be aggressive enough to where we don't really want to answer their calls/emails every hour asking for updates every day. I've never pushed a closing date that I can recall with a New Western deal, but I can honestly say that them harassing us in such a way would not have changed that.
My point is, if you are a broker, don't be put off by them, they will do their part to ensure the deal gets done, just be patient with them. As an investor, they will fight for you every step of the way to ensure you close on time. That is becoming more and more rare in this market, even though many lenders are not delivering on time as they used to. A lot happens behind the scenes and many investors may never know the details, but I'd let their aggression work for me if I needed their services.
Cheers!
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Bruce Lynn
Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
3y
@Jake Jones There are 100s of wholesalers in DFW, so you don't have to limit yourself to just one. Also realize "wholesale deal" is just a marketing term. Probably every wholesaler is marketing it to 100s or 1000s of other investors. Go to a showing and you may see 20-50 other investors there competing with you for the same deal. Plenty of times I've also seen wholesalers put a house under contract on the MLS and then remarket as a "wholesale" deal.
I am pretty sure NW does not do this, but it's pretty interesting people market other people's wholesale deals. Not unusual at all to get the same deal from 3-4-5 wholesalers all with different pricing...so be careful there to know who's deal it is. The way i read the new wholesaling law is this will soon be illegal in January 2024, but I'm sure people will still do it until there are a few examples made.
Good luck and happy hunting.
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Lucia Rushton
Realtor · Dallas - Fort Worth Metroplex, TX · Member since 2016 · 1k+ posts · 925 votes
3y
@Justin Vogelgesang yes BUT when working with a wholesaler and as mentioned above the earnest money is higher and goes hard day one.
Most new investors don’t understand the full process, which includes due diligence, and when they work with a wholesaler, no one is in the buyers corner - no option period, no inspection, no SDN. Greater risk and not always greater reward.
As always just my opinion.
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