New Western - Wondering if anyone heard of them.

Pittsburgh, PA · Member since 2016 · 12 posts · 0 votes

Has anyone worked with this organization - New Western? They are a wholesaling company and I've heard mix reviews about them. They are based in Philadelphia.

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Aaron Mazzrillo

Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes

They call me several times a year and ask why I won't go out of my way and drive 30 minutes to their Corona office for a meeting so I can be put on their buyer's list. This has been going on for 2-3 years now I think.

Sounds like they have their business model ***-backwards and I tell them the same thing every time. Shouldn't sales reps go to client's offices for a sales presentation? I worked in construction material sales and I can't imagine having the cahones to tell one of my contractor customers their project manager would have to come to my office to be pitched why they should do business with me.

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Account Closed
Architect · Houston, TX · Member since 2016 · 81 posts · 25 votes
9y
I've met with them here in Houston actually. I've not seen many good deals from their wholesalers. You have to keep a keen eye on due diligence of their comps. I think you have to have done a few deals with them showing that you close for their good deals to come to you.
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Gene Cook
Rental Property Investor · Sugar Land, TX · Member since 2011 · 11 posts · 2 votes
9y
While I have not bought a property from them, Justin Mynier in the Austin office has been great to deal with. Paul as well.
2 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
HORRIBLE EXPERINCE with them in Dallas would not recommend them AT ALL... puffed up ARV fictional rehab numbers...
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Ethan Giller
Rental Property Investor · Philadelphia, PA · Member since 2013 · 139 posts · 232 votes
9y
@Julian K. at that point. I bought a deal from them that turned out very well, and I found them to be good to work with at that time. The assignment agreement was fully explained prior to my signing it, and the transaction went smoothly.
However, I would only recommend working with them only if you are an experienced investor already. The reason I would say this is because (at least from what I remember):
a) There is an upfront non-refundable fee to get the deal under contract. This is understandable to me, because if you lock up the deal then they are turning away other investors. But if you don't close on time for pretty much any reason, you lose your deposit - so make sure you have cash ready to go or a very strong commitment from a hard money lender. If you agree to purchase and then want to back out due to funding issues or due diligence issues, you lose your deposit.
b) They do a double close on their assignments, and you pay all the closing costs associated with that. So make sure you understand your closing costs going into the deal. It was disclosed to me ahead of time when I worked with them, but they are higher costs than most transactions or most wholesalers.
c) As they are expanding, they have some younger sales guys who may not be as knowledgeable about the real estate industry as hopefully you are. So you have to know enough about the market you are buying in to do your own due diligence on the deal and decide if the ARV agrees with your analysis, and the rehab numbers agree with your contractors bids. I didn't ever get the sense that NWA was looking to scam anyone, but I will say that most of the properties they send out these days, the numbers don't work for me. But this is generally true of any wholesaler you work with as well.
Just my personal experience and conclusions, I have no affiliation with the business other than buying the one deal from them.
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Shaun Weekes
Loan Officer / Processor / Life & Health Agent · Rancho Cucamonga, CA · Member since 2014 · 1k+ posts · 757 votes
9y
@Anthony Gonzales @Lyall Storandt
Are you guys wholesalers or do you buy the homes with cash and then re sell?
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Bob B.
Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
9y
Last week I had an email from a local wholesaler for a $65,000 house, 2 days later I received an email from New Western for the same property at $75,000.
Too many spoons in the pot for me.
I don't like the double closing and prefer not to deal with them.
2 Reply
Joe Marshall
Investor · Racine, WI · Member since 2015 · 31 posts · 11 votes
9y
It all depends on who you work with... I would do estimates on rehabs in San Antonio for them for as a contractor and I got to know some of them pretty well. The guys that have been there longer usually get the good deals for their investor. In my experience if you get the deal in a mass email it has been passed over by the serious investors that purchase more frequently and its not one of the best deals.
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Christian Merchain
Flipper/Rehabber · Corona, CA · Member since 2016 · 9 posts · 2 votes
9y
@Shaun Weekes
Hello Shaun,
I'm with the New Western Inland Empire team. To answer your question, we purchase these properties then resell (:
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Shaun Weekes
Loan Officer / Processor / Life & Health Agent · Rancho Cucamonga, CA · Member since 2014 · 1k+ posts · 757 votes
9y
Originally posted by @Christian Merchain:
@Shaun Weekes
Hello Shaun,
I'm with the New Western Inland Empire team. To answer your question, we purchase these properties then resell (:
I knew someone that used you guys a couple of years ago and the contract was assigned. It was a deal in Fullerton and she couldn't close in time and the deal just feel apart. NWA ended up keeping the deposit ( They were well within their right to ) but if they owned the property she probably could have asked for an extension to close.
Unfortunately her experience just rubbed me the wrong way.
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Christian Merchain
Flipper/Rehabber · Corona, CA · Member since 2016 · 9 posts · 2 votes
9y
Hi @Shaun Weekes,
I am not sure which transaction you are referring to, do you have an address by chance?
Because, for all of our transactions we incur a Concurrent Closing and use our own funds(not the buyers) to close our deal before we resell to an interested party.
If you have any further questions, I am free to speak over the phone and would love to clarify for you (:
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Aaron Mazzrillo
Investor · Riverside, CA · Member since 2011 · 2k+ posts · 3k+ votes
9y
They call me several times a year and ask why I won't go out of my way and drive 30 minutes to their Corona office for a meeting so I can be put on their buyer's list. This has been going on for 2-3 years now I think.
Sounds like they have their business model ***-backwards and I tell them the same thing every time. Shouldn't sales reps go to client's offices for a sales presentation? I worked in construction material sales and I can't imagine having the cahones to tell one of my contractor customers their project manager would have to come to my office to be pitched why they should do business with me.
8 Reply
Tom Linnik
Flipper · Philadelphia, PA · Member since 2015 · 28 posts · 11 votes
9y
Not a great experience with the philly branch. Most are not "deals". They are on the mls before they get them and add their 5k fee to it. Be careful with them. Not great to work with.
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
9y
I have had several dealings with several reps from NW here in the Los Angeles area and none of the experiences were good. In my opinion, this company (who started in another Midwest state -I forget which) and added operations in CA is absolutely terrible. There reps have no clue what they are doing, they are all green ( those I was exposed to) and their numbers are complete lies. In addition, their contracts and business practices leave little to be desired.
I would not ever do business with them and almost did a deal until I found out all the details and lies.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
Originally posted by @Aaron Mazzrillo:

They call me several times a year and ask why I won't go out of my way and drive 30 minutes to their Corona office for a meeting so I can be put on their buyer's list. This has been going on for 2-3 years now I think.
Sounds like they have their business model ***-backwards and I tell them the same thing every time. Shouldn't sales reps go to client's offices for a sales presentation? I worked in construction material sales and I can't imagine having the cahones to tell one of my contractor customers their project manager would have to come to my office to be pitched why they should do business with me.
Horrid model and company all the very experienced players are opinining htat.. these guys prey on newbies.
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Bob B.
Investor · Jasper GA · Member since 2015 · 1k+ posts · 1k+ votes
9y
@Jay Hinrichs
Jay, you don't have to sugar coat how you feel.
I agree. I look at their offers sometimes but wouldn't waste my time talking with them.
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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Bob B. I have personal experince3 with this crew.. this is just not me taking wild guess.. horrid is all I can say.. they hire a bunch of young kids and off they go.. more like selling used car's get the dollars in at all costs.
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Mindy JensenPro Member
BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
9y
If you work for New Western, please do not post your company's sales pitch in this forum. Advertising, self promotion and deal making are NOT allowed here and will be removed.
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2 Reply
Saad Khan
Wholesaler · Corona, CA · Member since 2017 · 37 posts · 28 votes
9y
I've been with New Western for 8 years. I absolutely love this company and my investors & contacts love working with me. I'm sorry to hear that a few of you have had a bad experience with us but that does not portray the company as a whole. If you've had a negative experience- then it's your right to not work with us. Time for me to get back to work- I wish you all well and hope all of you guys kill it this quarter!!!
3 Reply
George Gao
Investor · Katy, TX · Member since 2015 · 34 posts · 9 votes
9y
I bought two deals from them last year as a newbie. In hindsight, they were a little thin, but not terrible deals.
1. Missouri City 3/1: Purchase price $60k. Inherited tenant left after 6mo. Rehab $12k; ARV 105k; Current rent 950. Not a 2% deal
2. Medical Center 3/2: PP $59k. Rehab $5k; ARV 95k; current rent: 1050. It's a better deal than the first.
Positives: great/fast communication, very responsive, tons of leads (I get 5+ emails from them daily), have connections/referrals to HML, contractors if needed
Negatives: double closing cost; $5k upfront fee (a little high); have to sort through the leads (some off-market, some MLS, some from other wholesalers, quantityvsquality); can be a little more pushy than other wholesalers.
Agree with other comments above.
3 Reply
Lyall Storandt
Licensed Real Estate Broker & Investor · Houston, TX · Member since 2012 · 521 posts · 104 votes
9y
@Mindy Jensen Hey Mindy, I was merely trying to connect the original poster to the head of our office in Philadelphia in case he had any questions that could only be answered by our company. It was also my intent to make sure the first commenter was being properly taken care of as he's in my market (Houston). If this is a violation of the forum policies, my apologies.
@Jay Hinrichs @Will Barnard I mean this in all sincerity as I'm genuinely curious to know what went wrong, but, have either of you documented in detail what happened / went wrong with your dealings with our company previously on this forum? If so, will you send me the link? I understand that there may be philosophical differences in regards to how we should or shouldn't operate, but what I'm trying to get at is what exactly went wrong in any deals that you were a party to with our company. [Request to contact removed]
1 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Lyall Storandt yes look up Jubilee st in Dallas my vendor that I financed relied on your ARV and REhab budget and he lost 90k the house when the city condemned it.
pretty much wiped him off the face of the investing world... and heard many other horror stories but this one I was a party too and know first hand.
plus philosophically I am Adamantly opposed to your model of just tieing up MLS houses day they come on market relisting them and trying to make fee's just stinks in my mind. But then again there are enough newbies out there that fall for it.. its just the sign of the times I guess
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Lyall Storandt
Licensed Real Estate Broker & Investor · Houston, TX · Member since 2012 · 521 posts · 104 votes
9y
@Shaun Weekes As @Christian Merchain said, we double close our properties. We close and fund with the original owner before closing and transferring title to our investors.
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Will BarnardPro Member
Moderator
Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
9y
I don't remember if I did a specific post about my specific experiences with NW but regardless, it has nothing to do with philosophical differences of opinions. Certainly there are multiple ways to do business but some ways cross over the moral and ethical standards in my book and your company continuously crosses that line with untrained rookies marketing properties (mostly off the MLS). Anybody who asks if they should do business with NW is going to get a no opinion from me and they can do what they want with that opinion.
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Saad Khan
Wholesaler · Corona, CA · Member since 2017 · 37 posts · 28 votes
9y
@Will Barnard I appreciate your input. Can you please specify which property or which agent you dealt with? I would like to find out more to resolve the issue. I completely understand that you may not agree with how we do business but we are full disclosure as to how our transactions are handled. I understand your opinion of us is negative in nature but I assure you we hold ourselves and our agents to the highest of moral and ethical standards. I hope you can give us a chance to address your concerns even though you don't plan to do business with us and I understand that. I am extremely proud of New Western and our business model. I'm sorry to hear that you've had a negative experience with us but that should not deter us to have open communication and resolve any issues that arise. Good luck with your real estate ventures and I wish you a successful and record breaking 2017!
1 Reply
Lyall Storandt
Licensed Real Estate Broker & Investor · Houston, TX · Member since 2012 · 521 posts · 104 votes
9y
@Jay Hinrichs I appreciate the response. Thank you. I just want to state for the record that we buy our properties any way we can legally, which does include properties that are actively listed on the MLS. Each market is different, but, here in Houston, a significant portion of our deals are off-market and / or pocket listings. My personal opinion is that the only thing that matters when evaluating a deal are: A. Does the deal make sense at a given price / total cost? B. Am I receiving clear and marketable title? That's it. Not necessarily the source so long as the property is being purchased within the limits of the law.
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