Gentlemen,
I'd like to take this opportunity to share my perspective as a representative of New Western Acquisitions.
Joel Stell Hey Joel, I'd like to address each point in your original post:
I. We were founded in Dallas and now operate in Ft. Worth, Houston, San Antonio, and Atlanta as well. We'll also be opening an office in Los Angeles by year's end.
II. Our contracts are structured the way they are in order to protect our interest in the transactions that we are involved in. And quite frankly, they stand to protect the investor as well.
III. The reason we do not allow conventional financing on our transactions is two-fold: I. We typically close our deals within 10-14 days, which is too quick for a traditional lender, and II. We specialize in distressed single-family properties that typically would not pass the inspection process of a traditional lender. As such, we only accept cash or cash equivalents (lines of credit / hard money financing) on our transactions.
IV. The reason why there are no inspection / option periods on our transactions is they are sold on a first-come, first-serve basis. We sell all of our properties the same way that we buy them: as-is, where-is, how-is. An investor's quasi inspection period begins once a property is "released." An investor is under no obligation to New West until such time that they have viewed a property, signed a contract, and furnished a down payment. Prior to those three things, there's no obligation whatsoever.
V. The $5,000.00 minimum down payment successfully weeds out tire-kickers. I would argue that any investor who balks at putting $5k down may be in the wrong business. That said, if you find a partner or private lender who wants to finance 100% of your deal, including the $5k down, that's entirely between you and your lender.
Feel free to call me directly if you have any questions.
Dan Franks Hey Dan, I'd like to address your points as well:
I. We work with investors in every phase of the investing timeline, from first-timers through seasoned professionals. One strength of our company is the ability to help an investor through every stage of the process from locating properties to securing financing to recommending contractors to listing rehabbed properties for sale or lease. I personally like to refer to our company as a full-service real estate investment brokerage, which is truly what we are.
II. The market dictates our pricing. It's simple supply and demand. When the market is tight overall, the price investors are willing to pay increases. On the flip side of that coin, it also increases the buying competition for distressed properties, which in-turn increases the price that we pay to acquire property. When there is a surplus of available properties, the price investors are willing to pay tends to go down. We are a source of properties. For some, we're a primary source; for others, secondary or tertiary. Every case is different. The beautiful thing about our properties is we've taken the leg work out of the transaction. If we present it to you and you're willing and able to buy it, you can! Right there on the spot. No offers to submit, no negotiation. If you see a New Western property and you're comfortable with the numbers, you can buy it. It really is that straight-forward.
III. We're not in the business of taking investor down-payments. We are, however, in the business of covering our losses when an investor does not perform on his or her end of a transaction. You said it yourself, it's a non-refundable down payment, which by definition implies no refunds. We are also not unreasonable. If ever we're unable to deliver clear and marketable title to a property, an investor's down payment is refunded in full. As I stated above, an investor is under no obligation to New Western until they see the property, sign a contract, and furnish a down payment. The sales process is very straight-forward. The terms of sale are made very clear prior to contracting. We work diligently to prevent "surprises" during our transactions.
John Chapman Hey John, I'm not local to DFW, but I'd be happy to help resolve your issues with NWA. I'm actually very curious to know what your reasons for not doing business with us are.
Bill Gulley Hey Bill, we do occasionally work with out-of-state investors. Should you ever find yourself in the market for property in any of our areas, I'd be happy to put you in touch with the right folks.
I'd be happy to discuss directly any other concerns you all have. Feel free to PM me or reach out using the contact info in my profile.
All the best!
