Working with wholesale companies out of state

Member since 2023 · 18 posts · 14 votes

I am on the list for a few areas with a larger wholesaling company (New Western). Since we are investing out of state, does anyone have any tips on how to do this without it being too risky? Alot of the properties are first come first serve. I will be traveling to the 2 locations next month and want to get an understanding from someone who has done this how they approach it. I plan on meeting with the agents I am assigned to when I get there. I respectively ask that you only comment if you have an answer to my question. I've already been counseled about investing out of state.

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Travis Biziorek

Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes

Hey Jennifer, I actually work with a company that does all of this.

We (essentially) wholesale deals to OOS investors, connect them with our contractors, manage the rehab for them, and have a property management division as well.

It's the whole A-Z operation and we did 200+ deals last year and more than 1/day this year.

I'm not pitching you at all. But if you want to gut check anything or ideas on what you should be asking, I'm happy to connect.

I'll say it's incredibly difficult to REALLY vet someone. Lots of folks ask me for references, and I always provide them. But references can be picked to be favorable.

Some folks will come out to our market (Detroit) and meet with our team. I think that helps a ton but only if you actually drive around areas with the folks you're vetting, check out some projects with them, etc.

Ultimately you also should listen to your gut. Do you feel like these are the type of people you'd work well with? If anything feels off, either question it directly or move on. There's too much risk to ignore potential red flags.

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Peter MckernanBusiness Member
Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
2y
Quote from @Jennifer Wood:

I am on the list for a few areas with a larger wholesaling company (New Western). Since we are investing out of state, does anyone have any tips on how to do this without it being too risky? Alot of the properties are first come first serve. I will be traveling to the 2 locations next month and want to get an understanding from someone who has done this how they approach it. I plan on meeting with the agents I am assigned to when I get there. I respectively ask that you only comment if you have an answer to my question. I've already been counseled about investing out of state.

New Western is listing properties at market value keep that in mind (or maybe 5-7% off the market).. Check wholesaler comps, they will send you comps that look amazing you need to be sure they are true value to your property. The other thing to note on wholesalers is that they do a lot of upfront marketing as anyone does getting off market deals so their wholesale fees may seem high (sometimes they really are too high).. So take all that into consideration.
The deals that you find on your own by networking etc., that is either a lot of time or money out.. Think of what you want to spend (or can spend) time or money.
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Travis Biziorek
Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
2y
Hey Jennifer, I actually work with a company that does all of this.
We (essentially) wholesale deals to OOS investors, connect them with our contractors, manage the rehab for them, and have a property management division as well.
It's the whole A-Z operation and we did 200+ deals last year and more than 1/day this year.
I'm not pitching you at all. But if you want to gut check anything or ideas on what you should be asking, I'm happy to connect.
I'll say it's incredibly difficult to REALLY vet someone. Lots of folks ask me for references, and I always provide them. But references can be picked to be favorable.
Some folks will come out to our market (Detroit) and meet with our team. I think that helps a ton but only if you actually drive around areas with the folks you're vetting, check out some projects with them, etc.
Ultimately you also should listen to your gut. Do you feel like these are the type of people you'd work well with? If anything feels off, either question it directly or move on. There's too much risk to ignore potential red flags.
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Mark MunsonBusiness Member
Lender · Orlando, FL · Member since 2022 · 440 posts · 300 votes
2y
Hi @Jennifer Wood
Firstly, you need to ask them if they are direct to seller. If not, just understand that there is more risk there. Never sign an NDA to go see a property, some New Western franchises required that, not sure if all do, but that is a crazy request and uncommon in the wholesale space. Take their numbers with a grain of salt, do your own due diligence. If you are using financing, make sure your lender allows for double closings and/or covers the full assignment fee. Also make sure your lender's timeline aligns with New Westerns. EMD should not be greater than $5k, unless you are buying a luxury property. Feel free to connect, I have a lot experience with what you are asking and I'm happy to help. Best of luck!
[email protected]407-900-8799
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David Ramirez
Investor · Tampa, FL · Member since 2019 · 1k+ posts · 1k+ votes
2y
Quote from @Jennifer Wood:

I am on the list for a few areas with a larger wholesaling company (New Western). Since we are investing out of state, does anyone have any tips on how to do this without it being too risky? Alot of the properties are first come first serve. I will be traveling to the 2 locations next month and want to get an understanding from someone who has done this how they approach it. I plan on meeting with the agents I am assigned to when I get there. I respectively ask that you only comment if you have an answer to my question. I've already been counseled about investing out of state.
Make sure you run your numbers and stick with them. Do not bend them because of sales pressure!
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Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
2y
You should know the target investment area well enough to quickly recognize actual deals versus those that are not going to be profitable.
You should then have a team in place that can quickly validate the condition of the property and give a decently accurate estimate of repairs.
Of course, we recommend that videos be used to document all this so you can review remotely.
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Matthew CrivelliBusiness Member
Lender · MA · Member since 2021 · 1k+ posts · 1k+ votes
2y
Quote from @Jennifer Wood:

I am on the list for a few areas with a larger wholesaling company (New Western). Since we are investing out of state, does anyone have any tips on how to do this without it being too risky? Alot of the properties are first come first serve. I will be traveling to the 2 locations next month and want to get an understanding from someone who has done this how they approach it. I plan on meeting with the agents I am assigned to when I get there. I respectively ask that you only comment if you have an answer to my question. I've already been counseled about investing out of state.
New Western will send you comps that are not matches & provide you with estimated rehab budgets that are really light and not realistic. Not on every deal, but many i have seen over the years have been this way. You need to verify all the numbers yourself, find your own contractors / GC, find the comps yourself. New Western is in the bussiness of selling homes, not making an investor money. If you feel pressure to buy and you are unsure, it's best to move on and wait until you find the right home to flip. I would also try to find local wholesalers / investor friendly realtors. Try to have a larger network than just New Western.
[email protected]413-348-8346
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Nate Marshall
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 738 votes
2y
Quote from @Jennifer Wood:

I am on the list for a few areas with a larger wholesaling company (New Western). Since we are investing out of state, does anyone have any tips on how to do this without it being too risky? Alot of the properties are first come first serve. I will be traveling to the 2 locations next month and want to get an understanding from someone who has done this how they approach it. I plan on meeting with the agents I am assigned to when I get there. I respectively ask that you only comment if you have an answer to my question. I've already been counseled about investing out of state.
New Western is not a company anyone takes seriously. If you are doing single family save yourself the trouble and get a subscription to Privy. You can get off and even on market properties. You can also now to comps and get rental data with it.
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Jennifer Wood
OP
Member since 2023 · 18 posts · 14 votes
2y
Thank you all for commenting on my post. I don't see a lot of deals that meet my buy box right now with NW, but there have been a few. I am investigating some others as well. Cold calling and marketing aren't really something I am looking to do at this moment so trying to find a respected and knowledgeable wholesaler to do that legwork. I am ok with taking a cut in profit at this time to do that but I still have a minimum net profit I am looking to make.
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Nate Marshall
Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 738 votes
2y
Quote from @Jennifer Wood:

Thank you all for commenting on my post. I don't see a lot of deals that meet my buy box right now with NW, but there have been a few. I am investigating some others as well. Cold calling and marketing aren't really something I am looking to do at this moment so trying to find a respected and knowledgeable wholesaler to do that legwork. I am ok with taking a cut in profit at this time to do that but I still have a minimum net profit I am looking to make.

You should look into Privy. On and Off market properties. It can do comps and even rental data. Been around over 10 years.
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