New Western Acquisitions Review, good or waste or time?

Question

Hi Everyone,
Wanted to get anyone and everyone's personal experience or opinion with NWA. I've been receiving some property leads from them and not sure what to make of the company. I know they have acquisition managers who then have another team of people below them that actually solicit the properties they get under contract to cash buyers. They also seem to only prefer doing double escrow transactions rather than assignment fee agreement through escrow. Would love to hear other local wholesalers opinions too

J Scott · Answer

That's not necessarily true.  There are lots of dumb buyers out there...  :-)

I'm certainly not saying all their deals are bad (they might all be good, who knows)...just that wholesalers don't need to have great deals to stay in business when there are so many  stupid investors out there.

Abhi Golhar · Answer

@Alex Bejenaru - First, for me, it depends on the deal. If NWA, or anyone for that matter, presents a deal to me and makes a good case for it, then I'm willing to give the deal a look.

Second, do not let anyone convince you that a deal is good. Just because they say it is, doesn't mean it is. This goes for agents, brokers, attorneys, wholesalers, etc. And if they insist it is a good deal with great resale value, etc etc, have them guarantee the results in writing. You may just chuckle at the responses you hear.

I've often heard the story of investors trusting others' judgement about a deal instead of doing their own homework. And in all cases, good or bad, the results always fall on the shoulders of the investor(s) who purchase the deal.

My 2-cents.

Let me know if I can be of any further help to you!

David T. · Answer

@Kareem Morad,  you sound just like a lot of your colleagues from the larger wholesale operations and sorry to tell, I certainly don't take anything you guys say at face value - based on experience. For a start, you describe yourself here as a "Real Estate Investor" when in actual fact you are a NWA Executive. That's a big difference. You're not the only one misrepresenting themselves here.

So perhaps you might start by declaring your interest with your exact working title and interests and stop trying to fool people.

J Scott · Answer

I looked at a few of their deals in Atlanta, and the biggest thing I found is that they didn't account for value differences based micro-markets and school districts.  For example, they'd present a deal in the city with comps a couple blocks away, but those couple blocks would make a HUGE difference in desirability due to different schools, etc.

They were new to Atlanta at the time, so it could have been due to their lack of knowledge about the local market...  Not necessarily a good excuse, but it may have been the case.

A Banks · Answer

read this thread

http://www.biggerpockets.com/forums/92/topics/75983-new-western-acquisitions-reviews?page=2

Alex Bejenaru · Answer

Thanks David J. mentioned earlier this week in Burbank, CA. Much of the LA area is very similar to what you described. You can have a small section of street blocks that sell very well, then go into the next block and have a completely different outcome...even though homes are less than a 1/4 mile apart and look very similar to someone unfamiliar with the neighborhood (similar home style, built around the same time, same size, etc).

At the end of the day it is our responsibility to do our due diligence and analysis of each property. I personally prefer working with a smaller wholesaler operation that actually provides good analysis.

Kevin Polite · Answer

@Alex Bejenaru They've been very aggessive in one of my target areas and have snatched up a few properties that I had targeted. The price the were selling them were actually good values. The have different agents for different areas and the one I was working with didn't have that area and I didn't get the deal. As has been mentioned here before always do the perform your ARV yourself. The ones I saw were fairly accurate, however, I went back and saw the job that the investor that purchased it did and they both repaired them to below that market area, but priced it to high and it's been sitting there for 3 months in an area where the right product is ususally gone in 60.

Rocky V. · Answer

I 100% agree with David J. .  I receive many emails from them and the numbers just do not work for me as I am looking for buy/rehab/retail deals.  With that said there are investors buying up their properties and I believe if your looking to buy/rent you may consider some of their deals.

Alex Bejenaru · Answer

I'm always open to working with new Wholesalers, however, I get very skeptical when I can't even speak to the person who is actually putting the deal together. Their acquisitions managers don't even speak with anyone (that I know of) and leave it all to their account execs to solicit the properties to all potential buyers.

Despite my own apprehension, Their model seems to work considering the volume they do

Ben Hughes · Answer

Yeah, over inflation is very common with wholesalers.  That's why you have to do your own analysis of each property.  In my opinion I rarely see a good or great deal from them.  They of course always want to make it sound like they have 20 people putting in a bid on the properties.

New Western Acquisitions Review, good or waste or time?

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