New Western Acquisitions (Reviews)
When inquiring about a property on craigslist, I spoke with someone from New Western Acquisitions. He wants to meet tomorrow..........Can anyone give me your thoughts if you have experience with them? what do they do? honest ect? do they want money? i have been to their website and know they have some presence here on bigger pockets, but I am looking for comments from 1st hand experience. Thanks for your help.
@J Scott This is 100% true as they told me this directly and heard it from other investors as well who have put deposits in on deals where they had other buyers lined up.
Jason-
Thank you for stressing some of your concerns on this thread. Non-refundable down payments is a common question we get and this is a great opportunity for us to address these concerns so everyone has a clear understanding of how we work!
We would never remove you or anyone from our list for offering feedback on our deals. We welcome your feedback! I believe the agent you were working with is no longer at this location.
1.) It is true, we do take non-refundable deposits on our deals. It's untrue that we accept multiple deposits on the same deal. The only instance that we'd accept another down payment on a deal that has been sold, is if an investor was adamant about placing a back-up contract. This does happen from time to time (because they're highly desirable deals) and a fully executed contract detailing deposit terms goes into play. It sounds like that may be what you're referring to.
2.) It is true that we do have a closing cost reimbursement when investors purchase from us and it's partly why we price our deals so aggressively. It isn't true however, that we don't fully explain this. Before we show any houses to anyone, we sit down and go through every aspect of our transaction and make sure that the investor is educated on how we operate and has all their questions answered. Much like you did, Jason when you came and sat down with us. You signed a disclosure statement that went over in length how we operate. Perhaps you forgot the initial meeting as it was some time ago.
3.) I know you haven't been receiving our deals for quite sometime so you may not know the amount of off-market gems we make available to our investors. Your figure is inaccurate as to the percentage of off-market opportunities and it's partly why so many investors LOVE working with us. It's also why our deals sell so quickly. I would say the last 90 days was around 40% off market. We would never claim that our deals are ALL off-market.
4.) I encourage everyone to do their own due diligence on us, just like they would a property. Our website and even BP threads have great feedback from investors (that we've actually done business with) which is why we're able to provide 15-20 opportunities per month (in Philly alone) to them and why most come back to buy again! We probably did over 200 deals nationwide, last month and we're able to maintain this momentum from doing good business and making customer service our #1 priority.
I've shared all of this on the phone with you directly and prior to this post, but I do appreciate the opportunity to clarify some common concerns in the investor community!
I'd be happy to discuss any future concerns (in any market). Please feel free to contact me!
@J Scott Perhaps you misunderstood. We would absolutely not keep the deposit. We would do whatever our client asks with the deposit, refund the full amount or transfer it to another deal of their choosing.
Sorry for the confusion. Ethics is our #1 priority and I'm happy to clarify!
I would say meet with them because, out of hundreds of calls and appointments to look at the house I had for sale two years ago, I went with them and it was a smooth transaction. I would work with them again.
@Anthony Gonzales @J Scott Anthony you are full of #%^* by saying you guys 1) wouldn't take or ask for back-up offers and non-ref deposits on same deal because I was asked if I wanted to put in a back up offer on a deal (before I was removed from your list) and 2) that you would refund the deposit back if a deal closed and you had back up offers.
Honestly, reading through this thread and speaking to many investors who have called me asking about your company, it's 100% evident you guys are complete wastes of time and I hope new investors will see these remarks before they even think of dealing with you guys.
J Scott - don't believe for a second that Anthony and NWA would refund anyone's money voluntarily.
Wow those are pretty strong opinions right off the bat.
If you read it's pretty clear what Anthony is saying in PA.
1. He does take back-up contracts. If you reread his first comment he actually says that he does, not that he doesn't. There's nothing wrong with taking a back-up contract if you have multiple people interested in the deal. You're not taking advantage of your customers.
2. He is actually saying he collects a deposit for a back-up contract, and if the deal closes with the first buyer he will refund the deposit. I have no idea how this was misunderstood. But it's not clear if he will give you an option out if your backup gets into first position due to the original buyer failing to close. If he is willing to do that, then he is Santa Clause and it should not be expected. He is giving you a free position and preventing a potentially more serious backup from being collected and that is a potential loss of value for him.
3. He is saying that if you are in contract (not to be confused with a backup contract), but actually in a binding contract to close on the deal, he collects a non-refundable down payment. Which is smart because it keeps all the clowns away. And frankly if you buy wholesale deals you should do your own due diligence before hand and if you decide to back out on them you should lose your skin in the game. Otherwise you should be buying on the MLS and getting an option period.
I have no idea what the fuss is about, but I remember when I got kicked off of my first wholesaler list. ;)
disclosure ^ I work at New Western
@J Scott The actual document would vary by state, but since we're all licensed agents / brokers we use the local contracts promulgated by the authority governing real estate agents in each state that we operate. In Texas, it's the Texas Real Estate Commission (TREC) and back-up contracts are handled with the TREC addendum for "back up" contract.
I was just on their deal in Houston! They want to make money just like everyone else and to them it is all numbers first come first serve and hugest bidder. Do your own due diligence and be conservative!
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@J Scott I have first hand expeirnce with this group.. RUN as fast as you can.
they are TERRIBLE only care about making money for themselves..
they prey on newbies etc. can't say enough about how poor their business model is in my personal opinion.
Disclosure- I am a broker at NWA. @Jay Hinrichs, I'm sorry to hear of the "first hand experience" you had that didn't go so well. I'd love to hear more about your concerns and issues you dealt with. Please message me and let me know who you dealt with and what the problem was. I can't speak for all offices, but I know from the offices I've managed and the core principles that are instilled to all offices, that profit is generated from a set price, down. There is a limit on the value to price and profit is to be generated below that threshold. Meaning, if the GM only allows a deal to be sold at $50k (for example), then the acquisitions associate needs to buy it below that... And trust me, there are plenty of times where New Western makes less than 3% of the equity left on the table for the investor who purchases a house from NWA.
Jay, I couldn't seem to find you in our database, by the way... I'm curious as to how you were able to come across our deals or learn of our process without signing a disclosure to gain access to our inventory.... Are you sure you're talking about the right company?
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@Michael Valerio bought in the name of LLC's that I funded for others... the issue is you just tie up MLS stuff and remarket it.. you do provided rehab estimates that were so far off etc etc.
I know your a high volume shop just does not make it a good one in my mind.
Disclosure- I am a broker with NWA
@Jay Hinrichs one avenue that nearly all investors use to purchase property is through the MLS. If an option or inspection is negotiated on our client's behalf, then utilizing it for potential exit strategies (i.e. reselling to another investor) is pretty commonplace for anyone in the marketplace (with the exception of typical consumer homebuyers). The MLS i simply one of many avenues used to find distressed inventory. Rehab estimates are nothing more than opinions... typically based on the exit strategy that is deemed most profitable by the comps used to derive the value of the subject property. While one opinion on a property might be to put custom cabinets and 3 inch thick granite in the kitchen, the comps in the area may have formica and standard builder's grade cabinets. Also, prices can vary greatly depending on the contractor's "management fee" and cost of materials from where they are bought.
While a deal or two might not have been for some, I can attest that there are 50 satisfied investors we work with standing next to every 1 investor that has an opposing point of view. We wouldn't be in business and we wouldn't be exponentially growing year in and year out if we were a company to "run from." It just gets a bit tiring hearing this from the same few people over and over Jay. It wouldn't make for a lasting career. In fact, I don't think we could be more up front with our customers than we are. It is precisely why we require a face to face meeting with our so called "newbie investors." We make it clear that investing in real estate is difficult and if not done correctly you WILL LOSE MONEY. It's literally stated that bluntly on our disclosure. I wouldn't represent myself with an organization that cared more for the bottom line than it's investors. Again, please reach out to me so I can address your issue and make sure it doesn't happen moving forward.
Wow. To make a blanket statement that a wholesaler has bad deals because he uses MLS as a source sounds like a pretty big oversight. I bought the best deal of my life back in 2008 from a small time wholesaler that snagged a bank deal from the MLS before anyone was onto that fact they miscalculated the size by 1,000 SF. I even paid $20,000 over the MLS list price and it was totally worth it. Wholesalers add value by their ability to identify inefficiencies in the market and jump on them, on/off market, who cares. I would not have gotten that deal if the wholesaler wasn't on top of his MLS in his area.
sorry to hear that this investor had a bad experience with one of our deals here in Atlanta. It is extremely important for me to make sure that every investor that deals with us has the best customer experience that we can provide. We also have a in-house policy where the property gets analyzed by multiple different associates along with the final approval from myself before a deal is released. If you can email me privately with the investors name and the property address, I can do a little more due diligence before I can speak intelligently about the transaction.
We consistently close 15-20 deals a month here in the Atlanta office. It is rare that I hear of investors loosing money on any of our deals so I am curious on exactly what happened in this situation. Todd Whiddon for example, is one of our best clients and have closed multiple deals with us. He has a great presence on bigger pockets and the Atlanta real estate market as a whole. I believe you are familiar with him right?
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@Michael Valerio the issues Mike are as @J Scott alluded to.. from my perspective and its the exact same thing that happened to my client.. your rehab bid was off by a ton... your resale number was way high.. it induced someone to buy then they get hammered..
pump and dump is really what it is.. and newbies are prefect fodder.. you got me once.. but never again.
I am sorry. That is not our company. Manesh works for one of our competitors Net Worth realty.
Wow...I owe you guys a BIG apology. I kept reading NWA, and kept thinking the NW was for "Net Worth"...
I'm very sorry.
To clarify, I've had no dealings with your company, so I have nothing first-hand to add to this thread. I'll go back and UPDATE my previous posts as well...
Again, my apologies!
That's exactly what I assumed from earlier @J Scott when I mentioned this was probably mistaken for another company. Soo, I'm sorry you had to be bashed by someone who mistook you for someone else. Probably good for an apology...
Thanks @J Scott for clarifying.
Thanks for the clarification.
I have first hand experience with this company in Atlanta, I have been working with @Gordon T. for almost little more than 2 years and have bought good deal of rentals from him and never had any issues and the last 5 I put them under contract site unseen with gordon checking them out and making sure they fit my criteria. I will be closing another rental this week with him and same process hew knew what I wanted communicated with me sent me the video of the place with pictures and we put it under contract. All said it took some time to build confidence but gordon knows what my rental criteria is and only presents something that fits it. I never felt I was being cheated or presented with wrong information.
At the end of the day I do my due diligence and stick to what works for me.
I was made aware of all there contracts during my initial meeting, 5K non-refundable deposit if I want to hold the property and on one occasion they were not able to close the property and was refunded the 5K promptly without any issue.
-Kiran
Disclosure- I am a Broker at NWA...
@Jay Hinrichs What part of Oregon did you fund the properties for your partners that were purchased through NWA?
Old post, I know, but for those reading it, you're probably a new investor. Do your due diligence on every property, and NEVER MESS WITH THE MAX ALLOWABLE OFFER (MAO) FORMULA. This is not a secret among successful rehabbers, and it's why they are successful. They don't chase risky deals.
MAO = (ARV x 70%) - REPAIR COSTS
ARV is After Repaired Value (Your expected sales price.)
This doesn't mean you should expect to make 30% on a rehab. After all is said and done, this formula will get you between 10-15% if nothing major goes wrong, or if you actually get your ARV without negotiating down. If you buy for 75%-repairs, expect a profit of 5%-10%, barring no major problems or price reductions. You're now gambling.
Watch for wholesalers pushing their closing costs your way. If that's the case, you need a lower price so you stay under 70% total purchase costs on your end.
Do your homework on your contractors as well. A bad one will destroy you. Spend a day checking them out, or you'll spend six months babysitting them while your project sucks up your time and money. Call 3 contractors (Local REIA's are a good place to start), get 3 references from each contractor, and visit at least one current and one completed job for each. 3 hours work. Worth it. Ask 2 simple questions: Would you hire them again? Why/why not?
99% of wholesale deals you'll see, from any wholesaler, don't fit this formula. 99% of deals aren't deals. Keep looking.
That is very realistic expectations for ROI that I have seen posted and great advice on contractors, I would also recommend doing as much of the work YOURSELF