Avoid New Western Acquisitions Houston

Avoid New Western Acquisitions Houston

Member since 2021 · 1 post · 0 votes

Typical trashy wholesaler

Do not trust New Western. I recently raced to a west side home relying on their comparables which looked very similar to the subject property. The deal looked workable and so I committed due to the current competitive investing environment. When I returned to the office and looked at my own comparables, I found that New Western had provided FOUR HOMES IN AN ADJACENT SUBDIVISION that sells for about 20% more than the subject subdivision. Their comparables suggested that this property should be worth 470k or so post extensive rehab. There were 5 actives, 3 pendings, and 11 solds in the subject subdivision showing about 20% lower valuations. New Western declined to use accurate information in their suggested valuation of this property. To me it’s quite likely a deceptive trade practices action but lawyers cost money. I hope that their responsible broker knows that NW is fudging its comps. These guys should know well know that comps 101 for rookie realtors says one should not use other higher priced subdivisions when there is abundant recent more comparable activity in the actual subdivision of interest. So due to their thorough legal papering over of any responsibility for misleading people, I lost my $7500 deposit. This beats having bought this house and lost 35k+ later after the brain damage of rehab. AVOID NEW WESTERN.

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  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    5y

    Yep. Even if they stay in the same/similar subdivision they’ll cherry pick by skipping over closer, lower priced sales. 

  • Rental Property Investor · Clarksville, TN · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    @Glenn Dickson

    Better to take $7500 on the chin now. Best choice you could have made following a bad one. I've done a couple deals with them and have found their numbers, like all wholesalers I have met, to bounce between slightly optimistic to another dimension of reality. Reading their customer agreement it is very clear that you need to be responsible for your own numbers and they are not looking out for you. Hope you leave this experience with a salty cynicism and self reliance that saves you way more than $7500 someday.

  • Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    5y

    I would say 90% or more of the deals I see from wholesalers have high ARVs, low rehab costs, and seem to be much better deals for them vs the end investor.  Be careful out there.

  • Realtor · 77449 · Member since 2021 · 17 posts · 8 votes
    5y

    While there are reputable wholesalers to work with, I typically don't trust anyone's CMAs unless I am dealing with a realtor. So far, most of the deals I've seen have higher ARVs shown on their flyers, that have even higher price than buying on market

  • Cameron TopePro Member
    Property Manager · Katy, TX · Member since 2015 · 1k+ posts · 1k+ votes
    5y

    Hey Glenn,

    I honestly don't know how those guys are still in business. When I was in acquisition mode, I had a very similar experience. 

    The only wholesaler I trust in Houston (and have bought deals from) is @Mat Trenchard with Senna House Buyers. 

    Keep your head up. A $7,500 loss could've been a lot worse. 

    Best of luck in the future!

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