New Western Acquisitions - What or who do you know?

Question

Does anyone have experience working with New Western Acquisitions?  What is your opinion of their process, people, integrity, anything?  I have an opportunity to work with them not related to buying their properties.

Greg Scott · Answer

I would like to post a retraction to my original post.

in 2012 and 2013 I was on the distribution list of a handful of wholesalers and had seen some deals from New Western.   I went back into my emails and realized the company I had trouble with was not New Western but actually Net Worth Realty.   I had confused the two.

My apologies to the New Western team.

Brad Campbell · Answer

Hi Jeremy,

Full disclosure - I'm the General Manager for New Western Marietta location

I'd like to take the time to give some context about this post and its regrettable to hear your feedback about this deal.  At the mercy of your lender approving the loan and providing lender instructions to the closing attorney, we worked with you and extended closing 8 days.  We double close on properties and just as we sign a contract with an owner to close on an agreed upon date, we ask that our buyers do the same.  This is all disclosed in the meeting we have with investors prior to sending them deals.  When we learned your insurance provider was unresponsive, we suggested another provider that has provided policies for us and many other investors.  All of this was done to assist and get you into a good deal.  With time running out we were willing to close on the property and hold it until your loan was approved which is why we asked you to wire some additional down payment money to the attorney.

The agent working with you informs me that you still reach out to him regarding additional properties and seem to have an interest in continuing to work with us.  We'd be happy to work with you further and will take your feedback constructively and look for areas to improve customer service.

Jay Hinrichs · Answer

buyer beware  can't believe they are in business .. rookie agents who just sling stuff against the wall.. and tell you whatever you want to hear to get it to close..  I think its a poor business model and would never use them or recommend them

Jeremy Masson · Answer

@Brad Campbell

Brad,

Let me give some more context then so future readers know what they are getting into with your firm. You did not work with me to extend the closing to 8 days as we were well within the 'Right to Extend the Closing Date' section of the purchase and sell agreement; it's a unilateral clause. Your agent, Andre Grant, did not disclose the double closing to us at our initial meeting. I have repeatedly explained this to all parties. Even if I was aware, New Westerns business process of "holding" a seller's property and never buying is not a potential buyer's problem to begin with. The original closing date was 4 days. No one closes that quickly. But you and Andre put undo pressure on this deal and made it personal by telling a grown adult how to handle their finances. I had already wired a large earnest money deposit to your team and you were asking for more before a HUD statement was even sent out. That is extremely questionable and I was not wiring more money before I knew this deal would close. I also still have the unprofessional voicemail your agent left me telling, not asking me, to go with your expensive insurance provider whom does not reimburse any of the unused coverage upon the sell of the home. Most builder's insurance risk policy provider reimburse, yours does not.

In regards to reaching out, I did afterwards because your agent kept me on their mailing list of properties. He even called a few days later about a property in a similar area and mentioned he wanted to give me the first "heads up". But again, he asked me about my personal finances making the call unprofessional and revealing his alterior motive. I followed up multiple times and he returned my correspondence once after a week and dropped off. I was willing to give your team one more shot, but Andre's unprofessional manner and poor communication skills blew that. It's a shame, because I was able to acquire private funding for my next few flips.

Jeremy Masson · Answer

I recently closed a deal with the Atlanta/Marietta team. Everything was going smoothly till a few days before closing. The insurance company I used for purchasing a vacant home policy dropped the ball with the binding agreement and I had to find another agent, which delayed the closing a few days. The wholesaler called me demanding I use a policy where I would not be reimbursed and also wanted to give me general financial instructions on how I should manage my money. He was out-of-line, unprofessional and left a bad first impression. Then his GM reached out asking me to wire the remaining down payment money without a closing date or HUD statement. I told him he was crazy. I received the HUD statement 2 hours before closing, another red flag, and saw a $2870 seller reimbursement fee. I called the GM to ask what this is and it's the fee to reimburse the wholesaler for their closing cost with their seller; pure insanity. At this point I just wanted the deal done, so we negotiated what I could pay of the fee (over my budget) and closed.

It was not a smooth process and I would never recommend them to anyone. They were immature and very unprofessional. Wholesalers are a crap shoot. A lot come off as used car salesman, so be sure to do you due diligence very thoroughly.

Greg Scott · Answer

They are a big organization so I'm sure that quality varies by location and by the person you are dealing with.

For about 6 months I had been actively looking at the properties they were hawking in Dallas.   I found they were significantly underestimating repair costs for those properties.

One property I put under contract but decided not to buy because we found some major issues that should have been known by the wholesaler.    They wanted to keep my $3K non-refundable deposit, but I was able to negotiate that they let me use that deposit on the acquisition of another property.  Within a month another property came up and it looked like a no-brainer.  They had marketed this property as in decent condition, and could be fully rehabbed for $23K but I later had two reputable contractors (one I have used many times) quote the work at $55K.  I walked away from the second property too and lost my deposit.  (It was a better deal to lose the $3K than to buy the house.)  Needless to say, I never looked at their inventory again.

I'm not saying you cannot find deals through them, but just be careful.

New Western Acquisitions - What or who do you know?

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