New Western Acquisitions

12 Replies

Has anyone dealt with this company successfully? They sold me a house that was supposed to need "minor" repairs, but instead required over $30,000 of foundation repairs, $45,000 of interior repairs and has been sitting empty for 3 months due to a termite infestation they failed to notice.
612-868-0044

Disclosure: Customer Support

Rebecca,

My name is Ashley and I am with New Western Acquisitions customer support. I am truly sorry to hear that you have had this experience and I would like to find out a few more details as to what happened with this deal. If you wouldn’t mind, could you send me a direct message so we can come to a solution?

Our goal at New Western is to provide you the very best deals. Of course, sometimes, there are certain aspects that can come out of the woodwork (no pun intended) after the deal is closed, that is beyond anyone's control. Sometimes rehabs like these can take a turn for the worse, as one problem is fixed it can cause another to arise. However, I want to make sure that you are a satisfied customer.

I look forward to hearing from you, and if you would rather email than direct message through this platform, you can always reach me at [email protected]

Thanks Rebecca, hope you have a much better day,

Ashley.

Disclosure: They have been a client of mine. I know their execs.

I know them (their CEO and other execs) and they are definitely a legit company, but I cannot speak to your particular situation.

I gotta say that I'm impressed that Ashley popped in here with a brand new account to address your concerns.  They are certainly on top of things.  I hate the hear about the problems that you encountered with the property and hope they are able to assist you with your situation.

Rebecca,

This follow up is long overdue but glad we worked this issue out and could address your situation via direct contact. I'd like to thank you for making us aware of the situation and the great feedback you provided as well. Your input significantly helps us improve our company and processes.

Originally posted by @Ashley Jones :

Rebecca,

This follow up is long overdue but glad we worked this issue out and could address your situation via direct contact. I'd like to thank you for making us aware of the situation and the great feedback you provided as well. Your input significantly helps us improve our company and processes.

Just curious how (specifically) the issue was addressed and worked out?  The OP indicated that she was told minor repairs and ended up with a $75K rehab and termite infestation -- not sure how a wholesaler remedies that kind of issue?

Yes, how did that workout for the woman with the original post.  I met with a agent in the Tampa Florida office this past weekend and all seemed good.  Need to see the properties they provide and will know better in the coming weeks/months how workable the deals are.

@j scott, quick shout out to J Scott love the books...reading them now (love your logo, who did it?).

Sometimes there's no replacing good ol' sweat equity for finding your own deals.  New Western looks like a way for those with less time (work full-time job) to be able to get deals... however finding them by targeting 5 or 6 solid subdivisions (depending on how large they are) will always keep you in control of the whole deal: focus-focus-focus on an area!!! I gotta keep reminding myself.

@Jose Harvin I am glad that you had an informative visit with my associate here in the Tampa New Western office. You bring up a great point about our product being suited for people who do not want to spend the countless hours tracking down properties themselves. Marketing takes a lot of valuable time and effort away from actually investing. I look forward to connecting and following your success.  

The down side of using New western is that once you sign the contract and give them the earnest check you have no due diligence period and because the market is so hot now if you postpone signing the contract until you do your due diligence the property is gone, most properties don't last a full day, for that reason I think they are more suited to full time experienced rehabbers.

I have completed two transactions with New Western over the past two months. I could tell from both purchases that they were only concerned with getting the property off their plate, with no interest in taking care of their buyers/investors. This last transaction was the worst. They misled my business partner and I by providing false information on the form we signed, which gave details of a temporary occupancy agreement that they had signed with the seller. My business partner asked for a copy of the agreement and was never given the document. If we knew what was on the agreement, we would NEVER have purchased the property under those conditions. Now to the details, so that you can see how bad it is, and why they covered it up so that they could get it sold.

The property received no offers on the first showing. They set up a time for me to look at it after that since I didn't make it to the first showing. We were able to renegotiate the price with the seller, with a temporary occupancy agreement as a condition of the price drop. We were told, in writing on the document we signed, that if the seller was not out by the contractual date, we would be given $5k that would be held in escrow until that time. We learned, after she was not out by that date, that the occupancy agreement (again, still not provided to us by that time) stated the seller would lose $100/day up to the $5k that was held in escrow. THAT IS 50 DAYS! Ask yourself, as an investor, if you would have accepted those terms. By that time, my contractors would have found another job, I would have paid my lender and insurance company money while receiving minimal compensation for that wasted time, and the seller has minimal incentive to leave in a reasonable time. My loan term is 6 months, so time is of the essence. If that wasn't enough, they tried to tell us that we signed the occupancy agreement and sent it to us as proof (first time we had seen it since they didn't send it when it was requested). We hadn't signed it!

They also didn't provide the occupancy agreement to the title company, who is responsible for dispersing the funds. They had no clue what to do with the money until we brought up the fact that the seller wasn't out.

Be very cautious when dealing with them and always demand to see whatever they tell you, in writing. Take the time to read the documents. We read every document we were given in detail before signing, to the point that we found an error in the occupancy date on the form that we signed (not the actual occupancy agreement). It said the year 2020, two years from now. That could have been a disaster.

Disclosure: GM/Broker for New Western

Hello Shawn,

I would first off like to say that we appreciate your business and have enjoyed being able to help you out on your various projects. As the General Manager and Principal Broker of the New Western Acquisitions office that you referenced in your post, I have an intimate knowledge of the transaction itself along with all documentation that was delivered and signed-off on. It is indeed unfortunate that the seller had not vacated the house as agreed upon in the temporary occupancy agreement; as most investors know, not only does the market produce distressed homes, it often produces sellers in distressed situations. It’s for that reason that we as a brokerage do our best to protect our exposure as well as the exposure of our client, which in this case included a certain amount of seller proceeds being held in escrow to confirm vacancy. Thankfully, as you and I both know and were able to confirm during our recent phone call, vacancy has been confirmed and you are well on your way remodeling the home.

Given the size and scope of our brokerage, we pride ourselves in continued relationships with our clients, which only happens by taking care of them from the outset. I’m aware that your original post came from a place of frustration and a breakdown in communication, and we were fortunately able to work through that. However, the original claims made about documentation not being provided to either you or the title company are inaccurate. I have made a point to review every document/contract/form on this transaction and can confirm that the appropriate steps were taken to communicate the temporary occupancy agreement and that dates were correct. Going forward, I believe we are on the same page that a higher level of dialogue would be beneficial so that we can confirm all parties are on the same page.

I wish you the best on the project. It’s a great property on a great lot and I am excited to see what you and your team do with it.

Mat 

I will say that the response from Matt Farmer is accurate, in reference to our conversation resulting in mutual understanding of what happened and why it happened. I agreed that I would amend the post to reflect the effort, on their part, to correct the situation.

I will reiterate, however, that my statement about the facts are accurate.  The perception that those facts left us with was just that, a perception or opinion, which is subject to change.  We have discussed that perception, and I am willing to concede that perception is not always reality.  I am open to continue working with them due to their willingness to discuss what happened and attempt to correct it the best that they can. We will see what the future holds.

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