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Updated over 9 years ago, 05/21/2015
New Western Acquisitions
Hello Fellow Investors,
Has anyone heard of New Western Acquisitions? I am located in Los Angeles, and they are a wholesaler in the area, with locations in Texas as well. If any rehabbers or investors has done deals with them, please feel free to share your experiences if possible. Any help would highly be appreciated.
Thank you,
Crystal
#3 Contractors Contributor
- Contractor
- Los Angeles, CA
Hi Crystal, I have an account with them, haven't transacted with them yet, but they are pretty good. John is new there, you need to talk to him, very nice guy. Their numbers are around 75-83% on arv and they are conservative in their rehab cost, you might spike an interest with them, call me for anything else and i could connect them to you.
Hello Crystal I live in the Dallas/Fort Worth area, and I have did a deal with New Western Acquisitions. It was a very unpleasant experience, the guy I worked with on my deal, told me all kind of lies. He showed me a rehab bid for $23,000 and said the crew he use on his own flips would do it for that price. After I purchased it, I contacted his crew and showed them the bid I was given, they laughed and said we told him it would cost $46,000 to rehab this house. They even said that they had purchased a property from this guy with NWA before, and they lost $30,000 on there deal. I lost $15,000 on my deal and was just happy it sold, by the way it sold for $20,000 less than the ARV they told me it would sale for. I also wanted to use my own lender, but they pushed me real hard to use there, which I did not like.
I had a brief email exchange with them after they posted a deal on Facebook. It looked decent, is in an area where I buy, and I wanted more info. They declined to provide it unless I'd come into their office to meet with them and "get the overview on how we work."
I told them I've purchased and renovated 30+ properties, don't really need a sales pitch. If the numbers look right, I can buy 1-2 properties a month. "Well, we can't work with investors we haven't met in person."
If you have to pitch it like that, there's something wrong with it. I passed.
You might want to check out this thread.
Hi Crystal
I met the San Antonio office and visited one property. It is just a wholesale company and if you live out of state, it would be tricky to follow the rehab if you are not there. Pm me if you want more info
@Crystal Chang, welcome to BP! I've done one deal with NWA down here in San Antonio and to summarize, they're a wholesaler (read property supplier). Some of their deals are good, others not so much. On mine, the rehab was about 50% low, but the ARV was significantly higher, so it largely worked out (would have if it weren't for the contractor, anyhow). As a general rule, though, I would verify (read: revise) everything in their packet through my own sources. That holds true as a basic business rule, though, so I do that with all the other wholesalers, as well. Due diligence is key. If you're investing out of your area, make sure you have a system of checks and balances in place. Feel free to reach out if I can help with anything. Good luck and happy investing!
I am yet to buy a deal from New Western, but I have met with them in their office in Orange, CA. I really like them and how they do business. I deal with so many wholesalers that will market a property they don't really have, but form what I've seen New Western is very straight forward when it comes to being able to sell the deals they market.
However, I NEVER trust anyone else's ARV or Rehab #. I'm yet to come across a wholesaler who I think has accurate ARV or rehab numbers, but I don't fault them for trying. It's on the buyer to know what you're buying
I had the same exact experience as @Michael Hayworth.
I passed as well. Lots of "sizzle". No "steak". I gave them very specific guidelines as to what I wanted. They promised me a deal within a month as their "acquisitions team was aggressively marketing to this area". They ended up providing me deals from the MLS. And when I pointed this out, I got the same company line about how the exclusive, off market deals would only go to those investors that they have met, blah blah blah... that was a year ago. To me, if you are just going to send me a "wholesale deal" off of the MLS... you are NOT a wholesaler. What a joke...
I have done 1 transaction with them. I actually wholesaled them a deal and it went smoothly.
As far as the properties they provide...the ARV's are usually inflated. Some interesting properties but nothing amazing quite yet. They are simply another avenue for lead generation. If I can purchase 1 property a year from them I'd be happy. There service is free so you don't have anything to lose.
@Crystal Chang Hey Crystal, have you met with anyone from our L.A. area office? If not, I'd be happy to put you in touch with one of our top agents out there.
@Manolo D. Thanks for the kind words, Manolo!
@Thomas Manuel Hey Thomas, I'm sorry to hear that you had a negative experience on your first transaction with us. We do our best to provide accurate information and reliable referrals to our investors, but cannot fully control third-party vendors (contractors, etc.) nor can we control market forces that may have affected the ARV. If there's anything we can do to help make things up to you, please feel free to reach out to me directly to discuss your situation.
@Michael Hayworth Hey Michael, we meet with all of our investors before sharing specific information on the properties we market for two main reasons: I. To establish a professional rapport between the investor and the NWA agent and, II. To ensure that the investor fully understands our sales process before viewing and contracting any of our properties. With you being as active as you are, I'm sure there's a way for you to make money with our Ft. Worth office. Feel free to reach out to me directly to discuss.
@Chad Clanton Hey Chad, glad things worked out for you on that deal. Solid advice as well. We do our best to provide the most accurate information possible, but ultimately we want our investors to be well-informed and only purchase properties that they're comfortable with and properties with numbers that make sense to them.
@Bill Larsen Hey William, hopefully we'll find you something that makes sense soon!
@Jon Huber Hey Jon, we buy deals any way we can legally and I'd hope you'd agree with the statement that a deal is a deal regardless of it's source (assuming you're getting clear and marketable title to the property).
@Jose Reyes Thanks, Jose!
@Lyall Storandt I would agree. However, it wasn't a "deal". It was a "listing". It was actually a property that a realtor emailed me when it came on the market and I disregarded it because it was overpriced. Over month later, I was given that same address by a NWA agent. If I wanted to overpay a listing on the MLS, I'd work with a realtor. If I want to work with a wholesaler, I expect them to earn their money by acquiring deals that are not just another agents listing with a cushion for themselves. I'd hope you'd agree that my bias isn't based only because of the source, as you stated.
@Jon Huber Fair enough. Are you currently working with anyone in our Southern California office? If not, I think it'd be worth your time to meet with one of our top sales guys. I'd be happy to connect you if you're interested. If you've got your hands full with deals, there may be an opportunity for you to wholesale some properties to us. I've of the mindset that if we're both active in a given market there's got to be a way for us to make money together.
I would avoid this company like the plague.
First, their contracts they make you sign are one sided and no attorney would ever suggest you put your name on them. They have been designed to protect New Western and do nothing for the buyer.
Second, their practices are often misleading and or unethical. I have a close friend fighting to get their $20,000 EMD back from New Western on a deal that went sour. Their lack of communication with the listing agent throughout the deal caused frustrations and issues that left a new rehabber on the hook.
Third, the reason this buyer is on the hook for their $20,000 is because New Western pressured them to release their wholesale fee to them prior to escrow closing and recording.
Fourth, all payments are made to shell companies that are not part of the BRE so they cannot be enforced against any misleading or unethical actions.
@Lyall Storandt to answer your questions... I've worked with not one, but two of your NWA reps in SoCal. I will not work with them again. I'm sure you would be happy to connect me to more, but no thank you. And no, I will not help you wholesale. There are ways for "us" to make money, however, I chose a transparent and honest approach so I do not believe we would be successful partners.
Best of luck in your ventures.