Net Worth Realty Feedback!

17 Replies

I have a meeting set up with them tomorrow.

I am more than ready to purchase my first flip. I have been to many REI meetups, talked to people I know in the biz, and still no house. I don't really know what else to do at this point so I have now started looking online. Not smart....I don't really know. I assume they will have a high mark up because of the big name and advertising but these of course are just assumptions. Any feedback would be good.

@Jamie Wooley Please be careful. There are a lot of "wholesalers" in the DFW area right now taking advantage of the fact that investors are desperate for deals. A bad deal isn't a deal. You said you want to stay under $250k ARV. I'm guessing you want 3/2/2 or better. I may have a couple of options in the next few days. Keep doing what you're doing and don't bite on garbage. It's a tight market, so you have to be patient.

@HattieDizmond Thanks for your reply. I have been ready to buy for over 3 weeks now. Although it is more than tough, I am being patient. The last thing I need is my first deal to go wrong, there may not be another if that is the case. I have been reading your post and you seem to be very knowledgeable on REI. I will keep educating myself and networking. It has to be right or I won't do it. I am just eager to get out there and start my dream! Thank you again for your words of wisdom, it is reassuring. I know it will happen, I just need to relax and let it.

Disclosure: I have done 1 deal with Net Worth Realty

Net Worth is just a large organization that makes tons of offers and then wholesales them to other investors. There are a few other companies with the same business model. Dont be afraid to meet with them or any other wholesaler. It all comes down to whether or not the numbers of a deal work for you. You should vet their deals just as you would any other wholesaler. You need to confirm the ARV and have your own contractor review the rehab.

Yep, the source doesn't matter so much as the #'s.    Don't take their #'s at face value, perform your own due diligence.    I've recently tried to buy some rental houses near my home, but it's been frustrating.    I'll continue to keep my eyes open for opps, but more than likely I'll just stick w/ multi-family.

Hi @Jamie Wooley  

I haven't purchased any properties from Net Worth, but we have partnered on multiple wholesale transactions together.  Having said that, I have been able to get a feel for how they operate and their integrity.  Everything I've seen has been on the up and up and I've built a close relationship with a couple guys here in Houston.  

Regardless, ALWAYS run your own numbers and consult with someone that has your interests in mind. Everyone has a different risk tolerance and you need to be comfortable before taking the plunge. A fairly inexpensive way to project ARV would be to get a "desktop appraisal".

My experience with all of the local wholesalers is that their ARV is always at least 10% too high and their repair estimates are about 25% too low. The estimates may work if you are running your own crew but if you have to contract everything out be careful about the numbers and do a thorough walk-through. If you do not feel you are able to figure out repair costs at a quick glance bring someone that can.

3 weeks is not much time, it has taken us years to figure out ways to consistently find deals for flips and we have yet to get one through a wholesaler.  With that said their numbers are adequate if you want to get rental properties, just not enough meat for a flip.

Also keep in mind that you have to add closing costs to any deal that they bring you which can be another few thousand dollars.

Thank you all so much for your opinions and insight as it is much appreciated.  I am going to run all of my own numbers and have my GC go with me to give me repair estimates as well.  I know I may miss out on a few opportunities by not jumping on them fast enough but I would rather be safe than sorry especially my first year out of the shoot when I am not knowledgeable enough to walk through and do this on my own. 

Also, not to sound like a rookie but what is a "desktop appraisal"?

@Jamie Wooley  

A desktop appraisal is a "soft" appraisal of the property where the appraiser doesn't visit the property in person, but they perform all other aspects.  Since they don't visit the property the cost is substantially lower.  This may help in filtering the details.  

@Christopher Uhler

Thank you for explination!

@Jamie Wooley  I haven't bought anything from them yet but am on their mailing list. My only turnoff so far is that the buyers who use their hard money get first dibs on the properties. I just want to buy one with my money but feel they have figured a way to profit twice. It is a model that makes them money but I haven't seen any deals good enough to make me want to us their loans. I would bet they make more money off the lending than the wholesaling. That said, they send me more potential deals than anyone else I have contacted. They have to make money too. I feel your dilemma as we are looking for our next deal and are struggling. Good luck and don't rush just because you are finally ready. 

-Will

three weeks and no deal?  It took me two years I buy my first rental.  I go months without seeing deals and I have 9 flips going.  I would be worried if you haven't found a deal in 6 months, not 3 weeks. 

Mark Ferguson, Real Estate Agent in CO (#IA40029358)

@WillPritchett Thanks for the input... I feel the same way about not finding any good deals with them yet.  They are however the one's that have sent me the most to look at.  As you I am looking to use my own money and not theirs which may be a hindrance when it comes time.   Good luck to you as well!

@Mark Ferguson Well, that does make me feel better about not finding anything yet, although I hope it doesn't take me two years.  That is quite a long time.  I am however learning to be patient.  When first starting out, in my case was taking my RE classes I did not think that finding the home would be my hangup but that is actually the case.  I have had some cross my path but the deal was not solid enough for me to take it especially for my first.  I will continue to learn from others, network and hope something comes my way that meets my requirements.  Thanks for the input!

Attend local meetups and educate yourself a bit more. There is a meetup tomorrow in Arlington, at an investment property, where an inspector will teach you how to do rehab estimates.

Ask local investors at the meetups how they do their due diligence. Ask them where they run CMAs, estimate repair costs, etc. I always give my investors a contract that outlines the repairs to be completed, at what price, and a per diem for going over a certain time period.

Consider partnering with another local investor for your first deal. You will learn more doing that than any other way, and it's a lot safer because your partner knows what you are doing. Plus, you'll even make a cut of the profit doing it.

Disclosure: I have done 1 deal with Net Worth Realty

Originally posted by @Will Pritchett :

@Jamie Wooley  My only turnoff so far is that the buyers who use their hard money get first dibs on the properties. I just want to buy one with my money but feel they have figured a way to profit twice. It is a model that makes them money but I haven't seen any deals good enough to make me want to us their loans. I would bet they make more money off the lending than the wholesaling.

-Will

 Is this really true that they give first dibs to people using their hard money lenders??  If so, how did you learn that??  I wonder if that is the case in all of their markets??

I haven't worked with Net Worth Realty myself, but as a fellow wholesaler they sound like a company I need to connect with. 

This market in Dallas is tough! However I am able to find and negotiate a few properties that are legitimately rare finds, and I try to pass on the meat of the deals to my buyers. 

@Jamie Wooley  @Hattie Dizmond  @Stan Butler  @Greg Carr  @Mark Ferguson @Will Pritchett  @Chris Soignier  PM me and let me know what you're looking for. I only work in the Dallas and surrounding area (not FW).

Originally posted by @Jamie Wooley :

 I have been ready to buy for over 3 weeks now.  Although it is more than tough, I am being patient.  The last thing I need is my first deal to go wrong, there may not be another if that is the case. 

Patience is not my strongest trait.  It sounds like you are forcing yourself to find a deal.   Three weeks is NOTHING! You will probably make a mistake as a result.  My best deals have come to me when I wasn't forcing myself to find one.

I have made the following comparison in the past and will use it again.  I like to think of myself as a deal "sniper" as opposed to a deal "machine gunner".  I wait in the weeds unnoticed watching and listening.  When the shot conditions are right, I take the shot.  The other approach, one which is often put out there by so-called gurus, is to write many offers and sooner or later one will stick (the machine gun approach).  Both approaches can work, but I don't spend a ton of time trying to find hundreds of deals to take my "shot" at.

My approach can, at times, be frustrating because I like action.  However, when I do take my shot and land a deal, I look back on it and smile because I have had very good luck and success with everything I have purchased since taking this approach.  I will say that when I started out I was a "machine gun" investor and I hit on a horrible deal that took me several years to get out of at a substantial loss.

Sit back and watch a little while, make every shot count.