All Forum Posts by: Lyle Klein

I work for New Western at our relatively new Phoenix branch. New Western was founded in 2008. The founders branched off from the wholesaler they worked for at the time because they believed in the industry, but not in the way their previous employer did certain things. Since then New Western has became the fastest growing real estate wholesaler in the country. Not every deal is going to make sense to every investor. I can tell you that they are not where there are at today because their investors aren't making money on their deals. I did a lot of research before going to work for New Western and I can tell you the way they wholesale real estate is the best in the game. They are aware of the stigma behind certain real estate wholesalers and everyday work to overcome that. I can tell you at our Phoenix branch every single employee loves what they do and take an immense amount of pride and accountability in every transaction. I have never seen such an incredible culture within a workplace. To close, please don't use one scenario to generalize a common theme across New Western Acquisitions as a company. 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $193,000
Cash invested: $10,000

This was my first investment property. I was starting college in 2016 and didn't see the point of paying the insanely high premiums to live in on-campus dorms. After I started searching for a house to rent I realized that all housing near the university was so inflated! I thought to myself I could buy a house and rent it out to my friends/roommates and they would pay the mortgage for me plus some. This was a beautiful property for the town. It was located 3 blocks form the university and nightlife and also right across from a park.

I still own the house today and rent it out to younger kids that I knew through my hometown. They pay $500 dollars monthly and the house fits 5 tenants so it grosses $2500 monthly. This was the best investment I have ever made and I nearly have the house half paid off 5 years later. It also has appreciated at least $25,000 since I bought it.

What made you interested in investing in this type of deal?

My parents have always invested in real estate and I thought to myself what if they had started at my age.

How did you find this deal and how did you negotiate it?

We searched for about 1 month and after looking at about 6 different houses we found the best one by far. The List price was $205,000 and we offered $185,000. To which they countered and we eventually settled at $193,000

How did you finance this deal?

I put $10,000 dollars of my own money down I had saved up. We went with a 10 year balloon loan amortizing based on a 20 year schedule. I was fortunate enough to have my parents co-sign on the loan for me.

How did you add value to the deal?

I did many renovations on the house while I lived there throughout college. I redid both bathrooms completely including the showers/tubs. Replaced all water and lighting fixtures. repainted the entire house. Added landscaping throughout the yard especially near the front door. Reseeded and fertilized the lawn yearly.

What was the outcome?

I still own the house today and it is making me even more money now that I'm not living there.

Lessons learned? Challenges?

I learned that a lease is very very important. I came across an issue more than once where one of my friends did not plan on attending college the next year. This bit me one time and I ended up losing $6,000 over the course of a year. I made sure from that point on, friend or not, they HAD to sign a lease.