Thoughts About New Western?

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Terra Padgett
Investor · Houston, TX · Member since 2022 · 126 posts · 122 votes
2y

I've purchased one property with them before. Definitely inflated ARVs and I have no clue where they get their repair costs from. My estimates were much higher. This property in particular had some additional unforeseen costs (main water line damage, sewer line damage, etc.) that certainly caused us to go way over budget. Selling after the rehab was not an option. We were able to refi and pay private lender back, but no cash was able to be pulled out. So we are still holding the property and renting out for a few years and we'll see when the right time to exit will be. I'd say they have a consistent deal flow for you to look at, but certainly don't take the data they provide as your basis for buying/rehabbing/selling. Do your research independently to see if the deal pencils. Go walk the property yourself. 

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  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    2y

    Run your own comps when buying from any wholesaler and know your rehab costs. Don't depend on others to do it for you. It is pretty typical for many wholesalers to overstate ARV and underestimate rehab costs. Maybe this is intentional and maybe it isn't, maybe what they would do is different than what you would do or envision.

    Also be aware that some deals are just recycled off MLS, so potentially you could have bought the same property for less, with less risk off MLS. Don't be fooled by the term "wholesale" deal. Just a marketing term. Some people are repeat buyers, and some would never buy again. You have plenty of options in DFW.

    4Reply
  • Terra Padgett
    Investor · Houston, TX · Member since 2022 · 126 posts · 122 votes
    2y

    I've purchased one property with them before. Definitely inflated ARVs and I have no clue where they get their repair costs from. My estimates were much higher. This property in particular had some additional unforeseen costs (main water line damage, sewer line damage, etc.) that certainly caused us to go way over budget. Selling after the rehab was not an option. We were able to refi and pay private lender back, but no cash was able to be pulled out. So we are still holding the property and renting out for a few years and we'll see when the right time to exit will be. I'd say they have a consistent deal flow for you to look at, but certainly don't take the data they provide as your basis for buying/rehabbing/selling. Do your research independently to see if the deal pencils. Go walk the property yourself. 

    4Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Bruce Lynn:

    Run your own comps when buying from any wholesaler and know your rehab costs. Don't depend on others to do it for you. It is pretty typical for many wholesalers to overstate ARV and underestimate rehab costs. Maybe this is intentional and maybe it isn't, maybe what they would do is different than what you would do or envision.

    Also be aware that some deals are just recycled off MLS, so potentially you could have bought the same property for less, with less risk off MLS. Don't be fooled by the term "wholesale" deal. Just a marketing term. Some people are repeat buyers, and some would never buy again. You have plenty of options in DFW.


    Buyer beware these guys  I would personally never fund a deal that comes from them and for sure buy one.. Hard sell preying on newbie investors.
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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Terra Padgett:

    I've purchased one property with them before. Definitely inflated ARVs and I have no clue where they get their repair costs from. My estimates were much higher. This property in particular had some additional unforeseen costs (main water line damage, sewer line damage, etc.) that certainly caused us to go way over budget. Selling after the rehab was not an option. We were able to refi and pay private lender back, but no cash was able to be pulled out. So we are still holding the property and renting out for a few years and we'll see when the right time to exit will be. I'd say they have a consistent deal flow for you to look at, but certainly don't take the data they provide as your basis for buying/rehabbing/selling. Do your research independently to see if the deal pencils. Go walk the property yourself. 


    Yup just a lead source  nothing more.. hard sell  FOMO high pressure tactics
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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2y

    Agree with what others have shared. They put a lot of money behind their marketing and have large buyer lists consisting of the most unsophisticated buyers imaginable which should give you immediate pause because you have to beat out hundreds of suckers to land a deal. One of my favorite building tour stories involved a New Western assignment. It was a stalled renovation. The seller dug out the basement to increase the ceiling height which required  underpinning. The 3 ft  chalk markers were still visible  on the walls and one of the prospective buyers asked what the chalk marks signified. The New Western assignment agent said it was art work left behind by the last owners children. There were at least 6 or 7 prospective buyers in the basement at the time and not one corrected him. I believe that paints the picture of who you are competing against and who you are dealing with. 

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  • Account Closed
    Investor · Member since 2023 · 118 posts · 61 votes
    2y

    I lent money to a flipper that bought from them.  The deal worked out okay but the agent my borrower worked with wouldn't release the keys, even after escrow closed, until his commission hit his bank account, that among other small issues.  Low class outfit ...

    2Reply
  • Matt Moore
    Member since 2019 · 43 posts · 14 votes
    2y

    I purchased a property from them in 2019 before the market went crazy.  In my area, they appear to have more realistic prices than other wholesalers I follow.  I had no issues with my experience with them.

    2Reply
  • Nate Marshall
    Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 726 votes
    2y

    They are the Hamas of the real estate industry IMO. Overpriced. They are pure greed!!! They are Madoff. They are SBF. Don't do business with them. 

    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Account Closed:

    I lent money to a flipper that bought from them.  The deal worked out okay but the agent my borrower worked with wouldn't release the keys, even after escrow closed, until his commission hit his bank account, that among other small issues.  Low class outfit ...


    one of my borrower/ clients went into escrow with them last week and  put up the non refundable money getting ready to close and well  the title needs to be probated.. so these guys dont run title until they have your deposit.. will see if and how easy they give my client back his money since it did not close on the closing date and no extension was given or signed..
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  • Nate Marshall
    Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 726 votes
    2y
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:

    I lent money to a flipper that bought from them.  The deal worked out okay but the agent my borrower worked with wouldn't release the keys, even after escrow closed, until his commission hit his bank account, that among other small issues.  Low class outfit ...


    one of my borrower/ clients went into escrow with them last week and  put up the non refundable money getting ready to close and well  the title needs to be probated.. so these guys dont run title until they have your deposit.. will see if and how easy they give my client back his money since it did not close on the closing date and no extension was given or signed..

     That is what we call FRAUD! 

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    2y
    Quote from @Nate Marshall:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:

    I lent money to a flipper that bought from them.  The deal worked out okay but the agent my borrower worked with wouldn't release the keys, even after escrow closed, until his commission hit his bank account, that among other small issues.  Low class outfit ...


    one of my borrower/ clients went into escrow with them last week and  put up the non refundable money getting ready to close and well  the title needs to be probated.. so these guys dont run title until they have your deposit.. will see if and how easy they give my client back his money since it did not close on the closing date and no extension was given or signed..

     That is what we call FRAUD! 


    follow up on my transaction..  to be fair and balance like Fox news.. my client negotiated to leave 1k with them and extend the close until probate is done and get refunded 6500.00 so assuming they actually send him a check .. I did want folks to know. that but I can tell you johnny wholesaler that might have got your deposit. very good chance something like this they would ghost yuo and you would never get it back.. they already spent it and dont have it to give back.
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  • Nate Marshall
    Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 726 votes
    1y
    Quote from @Jay Hinrichs:
    Quote from @Nate Marshall:
    Quote from @Jay Hinrichs:
    Quote from @Account Closed:

    I lent money to a flipper that bought from them.  The deal worked out okay but the agent my borrower worked with wouldn't release the keys, even after escrow closed, until his commission hit his bank account, that among other small issues.  Low class outfit ...


    one of my borrower/ clients went into escrow with them last week and  put up the non refundable money getting ready to close and well  the title needs to be probated.. so these guys dont run title until they have your deposit.. will see if and how easy they give my client back his money since it did not close on the closing date and no extension was given or signed..

     That is what we call FRAUD! 


    follow up on my transaction..  to be fair and balance like Fox news.. my client negotiated to leave 1k with them and extend the close until probate is done and get refunded 6500.00 so assuming they actually send him a check .. I did want folks to know. that but I can tell you johnny wholesaler that might have got your deposit. very good chance something like this they would ghost yuo and you would never get it back.. they already spent it and dont have it to give back.

     People still send money direct to people and not to escrow or title to hold. That is a huge problem. Then we have Gators. New Western and Gators are kind of like Hamas and Hezbollah getting together. A lot of destruction!!! 

    0Reply
  • Kristin Flores-Brockman
    Real Estate Agent · Fort Worth, TX · Member since 2021 · 142 posts · 59 votes
    1y
    Quote from @Austin B.:

    Has anyone purchased a property from New Western? If so, how was the experience? Did you feel like their comps were relatively accurate?


     So many great responses here! Hopefully you got your question answered! :) 

    There are more reputable people and companies to work with... Personally, I stay away from them!

    0Reply
  • Nate Marshall
    Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 726 votes
    1y
    Quote from @Kristin Flores-Brockman:
    Quote from @Austin B.:

    Has anyone purchased a property from New Western? If so, how was the experience? Did you feel like their comps were relatively accurate?


     So many great responses here! Hopefully you got your question answered! :) 

    There are more reputable people and companies to work with... Personally, I stay away from them!


     Good for you. More people should. I wish they did. I hear from so many taken advantage of by New Western. 

    1Reply
  • Diego AlvaradoBusiness Member
    Real Estate Agent · Flower Mound, TX · Member since 2016 · 296 posts · 139 votes
    1y
    Quote from @Bruce Lynn:

    Run your own comps when buying from any wholesaler and know your rehab costs. Don't depend on others to do it for you. It is pretty typical for many wholesalers to overstate ARV and underestimate rehab costs. Maybe this is intentional and maybe it isn't, maybe what they would do is different than what you would do or envision.

    Also be aware that some deals are just recycled off MLS, so potentially you could have bought the same property for less, with less risk off MLS. Don't be fooled by the term "wholesale" deal. Just a marketing term. Some people are repeat buyers, and some would never buy again. You have plenty of options in DFW.

    This week along I have seen 4 MLS recycling lists from them at higher price than if you get it if you went with a realtor. Running my numbers it gave me a much lower number but I still reached out and I was told that my number can't be worked out.
    My story continues, I am currently working in a flip that I got for another wholesaler, but first that same deal was with a New Western agent. I offered to NW the same price that I later got the house from, in which the second wholesaler got a great deal and it was even another agent involved in the transaction.

    Saying this, the agents that I am talking in NW have knowledge and they are open to communicate openly.
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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    1y

    In Florida, for example, they buy a majority from the MLS, which makes no sense at all for an investor. Why would an investor buy something from them that they could have bought for less on the MLS direct? Here is my conversation with them about it:

    Me: Yeah but why would anyone buy something from you that was on the MLS and they could have bought direct?

    Them: We’re asking under what it was listed for, and this is a marketplace. We found the deal on market and felt the numbers worked for our investors. Why no one scooped it up before we did - I couldn’t tell you.

    People purchase our deals that were on market often. A deal is a deal. A majority of our deals are off market, but we will pick up an on market deal if the numbers work. 

    Me: No investor who knows anything would ever buy a deal that you bought off the MLS. That is ludicrous.

    Them: Why would we continue to source deals from the MLS if no one was buying them? I can provide you with a list of properties I have sold that were on market.

    If you are not interested in these deals, that is okay. I have plenty of other deals that are off market.

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  • Nate Marshall
    Real Estate Consultant · Evergreen, CO · Member since 2018 · 1k+ posts · 726 votes
    1y
    Quote from @Jonathan Greene:

    In Florida, for example, they buy a majority from the MLS, which makes no sense at all for an investor. Why would an investor buy something from them that they could have bought for less on the MLS direct? Here is my conversation with them about it:

    Me: Yeah but why would anyone buy something from you that was on the MLS and they could have bought direct?

    Them: We’re asking under what it was listed for, and this is a marketplace. We found the deal on market and felt the numbers worked for our investors. Why no one scooped it up before we did - I couldn’t tell you.

    People purchase our deals that were on market often. A deal is a deal. A majority of our deals are off market, but we will pick up an on market deal if the numbers work. 

    Me: No investor who knows anything would ever buy a deal that you bought off the MLS. That is ludicrous.

    Them: Why would we continue to source deals from the MLS if no one was buying them? I can provide you with a list of properties I have sold that were on market.

    If you are not interested in these deals, that is okay. I have plenty of other deals that are off market.


     That statement about suckers being born everyday definitely applies to real estate. 

    1Reply
  • Jay HurstBusiness Member
    Lender · Dallas, TX · Member since 2017 · 1k+ posts · 1k+ votes
    1y
    Quote from @Jay Hinrichs:
    Quote from @Bruce Lynn:

    Run your own comps when buying from any wholesaler and know your rehab costs. Don't depend on others to do it for you. It is pretty typical for many wholesalers to overstate ARV and underestimate rehab costs. Maybe this is intentional and maybe it isn't, maybe what they would do is different than what you would do or envision.

    Also be aware that some deals are just recycled off MLS, so potentially you could have bought the same property for less, with less risk off MLS. Don't be fooled by the term "wholesale" deal. Just a marketing term. Some people are repeat buyers, and some would never buy again. You have plenty of options in DFW.


    Buyer beware these guys  I would personally never fund a deal that comes from them and for sure buy one.. Hard sell preying on newbie investors.

     100%!  First thing I ask my borrowers that come with a wholesaled property: is this a new western deal? 

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