Experience working with Spartan Invest Turnkey Company?

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Experience working with Spartan Invest Turnkey Company?

Chris Thomas
Video Game Producer · San Francisco, CA · Member since 2016 · 25 posts · 3 votes

I'm considering investing in the Birmingham AL area where I'm originally from. I came across Spartan from reading forum posts here on BB. Just curious if anyone has worked with them and wouldn't mind sharing their experience? 

Thank you! 

Chris

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Melissa Chinn
Investor · Sioux Falls, SD · Member since 2014 · 20 posts · 14 votes
9y

Hi @Chris Thomas! I have purchased (and still own) multiple properties from Spartan Invest. I can't possibly say enough good things about Clayton and his amazing team. I came into the real estate investing world fairly uneducated - and not only did they help me learn a lot of very valuable information and knowledge that was necessary to make a decision - but once I did go to down and meet the team and view the properties, they confirmed my thoughts and gut feelings. Clayton gave me a wonderful tour of the Birmingham area, explaining the various neighborhoods to me, as well as how they decide what homes will be a good purchase and what homes aren't. 

I can tell you that in the 2+ years that I have been working with Spartan, my vacancy has been VERY minimal. I also have properties in Sioux Falls, South Dakota which I manage myself - and I'm currently running numbers to sell one or 2 of them and investing more down in Birmingham. They make it so easy but still very profitable.

If you have any specific questions, I would be more than happy to answer anything you may be wondering. The numbers that were presented to me for each of the properties I purchased have been accurate, if not on the low end (for maintenance costs) and the high end (for cash flow). It has definitely been a best-case scenario with the Spartan team

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  • TJ Sayers
    Real Estate Investor · Birmingham, AL · Member since 2013 · 35 posts · 7 votes
    9y

    I have not bought properties from Spartan, but I am an investor (mostly wholesaler, but have done a few rehabs and hold some rentals of my own) in the area and deal with Spartan's team on a regular basis. I think you'd have a hard time finding a better turn key company in Birmingham than Spartan. Their owner Clayton Mobley posts on here quite often and you can look over the data that he's provided in several posts and see that he is very knowledgable about Birmingham's rental areas. Even though I am from the area and feel like I know the neighborhoods quite well, I have used some of his data here on BP when purchasing rentals for myself to hold. I have walked through a few of their properties after rehab and their craftsmanship and willingness to go beyond the "typical" rehab is impressive. Everyone I have worked with in their company has been a pleasure to work with and I have heard great reviews from people who have worked with them. 

    If I were investing from another state I wouldn't hesitate to invest with Spartan. 

    1Reply
  • Chris Thomas
    OP
    Video Game Producer · San Francisco, CA · Member since 2016 · 25 posts · 3 votes
    9y

    @TJ Sayers Thank you for info! Great to know that they have a good reputation! I'll definitely be contacting them soon. 

    0Reply
  • Chris Thomas
    OP
    Video Game Producer · San Francisco, CA · Member since 2016 · 25 posts · 3 votes
    9y

    Thanks Jack! Will do.

    0Reply
  • Christopher Thompson
    Real Estate Agent · CO · Member since 2016 · 28 posts · 7 votes
    9y

    @Chris Thomas Did you end up buying something from Spartan?  If so, what's your experience?

    Are any other BP users out there that bought a Spartan TK > 2 years ago?  Would love to hear your experience with them.

    0Reply
  • Philip Hy
    Rental Property Investor · Plano, TX · Member since 2015 · 59 posts · 41 votes
    9y

    @Chris Thomas I'm currently in discussions to purchase, but it's been a good 4 days since I last emailed them (an eternity when you're trying to get deals done). I met Clayton and his team in Birmingham and was impressed with their operations. But when I came back home and wanted to start the purchase process, the level of communication has not impressed me. PM if you have more questions.

    3Reply
  • Chris Thomas
    OP
    Video Game Producer · San Francisco, CA · Member since 2016 · 25 posts · 3 votes
    9y

    I haven't yet purchased anything through them. I've had some phone calls with them but I'm not quite ready to pull the trigger. I've also talked a little with @Philip Hy, and it seems he's a little further along. They are still high on my list though. I'll update this thread if/when I move forward. 

    0Reply
  • Philip Hy
    Rental Property Investor · Plano, TX · Member since 2015 · 59 posts · 41 votes
    9y

    Just an update, I'm supposed to be connecting with their transaction manager soon to work towards closing. Closing takes about two months, which seems long, but perhaps that accounts for the fact that the house is still under renovation. Will update on my experience as it happens, I'll be the guinea pig since it doesn't seem like anyone else on BP has reported their experience yet.

    1Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Philip Hy  if your getting a mortgage that takes 45 days these days.

    if your paying cash then 60 days can only mean you have identified a property they have not started working on.

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    1Reply
  • Philip Hy
    Rental Property Investor · Plano, TX · Member since 2015 · 59 posts · 41 votes
    9y

    Thanks for the feedback, though typically I can close on a conventional loan in three weeks. Just a matter of finding investor friendly lenders as opposed to retail lenders like BoA or Chase, etc.

    0Reply
  • Christopher Thompson
    Real Estate Agent · CO · Member since 2016 · 28 posts · 7 votes
    9y

    @Philip Hy I too am closing on a place at the end of March (~ 60 days from signing the contract) due to renovations not being complete so I'll be right there with you as the BP guinea pig

    0Reply
  • Jared Friedman
    Investor · Studio City, CA · Member since 2016 · 38 posts · 54 votes
    9y

    I bought 2 properties from Spartan several months ago. It typically takes 60-90 days to close as they are rehabbing the property during this time. The rehabs seems to be done very well. Mine had all new roofs, new floors, granite coutertops, new HVAC, water heater, etc, etc. They fixed most everything on the inspection report as well. I have a friend who purchased 6 properties from them a few years ago and has nothing but great things to say about spartan. Placing tenants after closing has taken much much longer than expected. As Philip mentioned communication is pretty light as well. PM me and i can give you more specifics.

    0Reply
  • Scott Kaczmarek
    Investor · Dallas, GA · Member since 2016 · 59 posts · 57 votes
    9y

    @Jared Friedman @Philip Hy @Christopher Thompson

    Gentlemen - I have been researching Spartan and I had a meeting with them in Birmingham 2 weeks ago.  I would be interested in hearing more about your experience as you all are further along in the process than I am.  Would you be willing to share any further information in a PM or in a brief phone conversation?  I am ready to commit to moving forward with them, but would appreciate your experience with the process.  Thank you!

    1Reply
  • Doug Johnson
    Investor · Frisco, TX · Member since 2015 · 84 posts · 52 votes
    9y

    I have talked to the Spartan group and I own SFR in Birmingham. From my conversations with Spartan, I think they understand the business. My concern is with their numbers. They price the properties too high and are overly optimistic about costs and vacancy. My SFR has a decent return and I'm considering selling it. I have shifted my focus to multifamily for better returns.

    1Reply
  • Philip Hy
    Rental Property Investor · Plano, TX · Member since 2015 · 59 posts · 41 votes
    9y

    @Doug Johnson I imagine their up front cost is higher because of all the capital items they put in. Their vacancy seems realistic, but the costs are TBD. I'm in Plano, what kind of multifamily deals are you seeing in DFW MFR that beat Spartan's numbers? Cap rates for mutli are very low in DFW, I could never get the numbers to work.

    1Reply
  • Doug Johnson
    Investor · Frisco, TX · Member since 2015 · 84 posts · 52 votes
    9y
    Originally posted by @Philip Hy:

    @Doug Johnson I imagine their up front cost is higher because of all the capital items they put in. Their vacancy seems realistic, but the costs are TBD. I'm in Plano, what kind of multifamily deals are you seeing in DFW MFR that beat Spartan's numbers? Cap rates for mutli are very low in DFW, I could never get the numbers to work.

    I have investments in Garland, Arlington and Dallas. My latest investment is in Norman Oklahoma where I am a General Partner. It is 214-units in 3 complexes. Proforma is 12% cash on cash and 19% IRR on a 5-year hold for the passive investor.

    1Reply
  • Fred Jury
    Investor · Union City, MI · Member since 2015 · 10 posts · 3 votes
    9y

    @Jared Friedman PM sent. I currently have 4 properties under contract with Spartan.

    1Reply
  • Fred Jury
    Investor · Union City, MI · Member since 2015 · 10 posts · 3 votes
    9y

    @Chris Thomas So far my experience with Spartan has been good. Agree with Philip the communication has been a little on the light side. Have the 1st of 4 property inspections back so far. They've agreed to fix nearly everything on the inspection. PM if you like.

    0Reply
  • Stan Hopp
    Investor · Nashville, Tennessee 37205 · Member since 2013 · 3 posts · 0 votes
    9y

    I started investing with Spartan in 2014 and have been very pleased. Clayton has been a solid performer. I have purchased eight SFH investment properties. Clayton does a great job with the rehabs. If there were any issues discovered soon after the purchase, Clayton fixed it at no charge. Vacancy rate is low. Communication is good. I talk to Stephanie if I have any concerns. They call me with any updates on new leases and renovation required for turnover. They also call every month with a portfolio summary. I purchased completed homes with cash and it took about 12-14 days each time. The internal rate of return seems quite good, on par with my properties in Memphis and Dallas area. I have not sold any of the properties, so I cannot comment on appreciation.

    0Reply
  • James WachobBusiness Member
    Real Estate Broker · Memphis, TN · Member since 2015 · 1k+ posts · 888 votes
    9y

    The key is to find a great team! Ideally you would find a company that has everything under one roof. Acquisitions team, renovation crews (fully licensed and insured), Property Mgmt., and a Real Estate Investment Brokerage in case you ever decide to sell.

    By teaming up with a solid firm you can mitigate your risk and have some "boots on the ground" that have your best interest in mind. 

    0Reply
  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    I do not know Clayton, never spoke to him, but he adds value on BP and comes across as knowledgeable about his market. 

    901-848-9028
    1Reply
  • Alex CraigBusiness Member
    Real Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
    9y

    @Doug Johnson my 2 cents. Always plug in our own #'s.  We always plug in 6% for vacancy and maintenance.  We have some properties with the same tenant for 5 + years and others will turn at 18 months.  Some properties may go 2 to 3 years without maintenance while another property may have a tree fall over on its fence causing them to have higher maintenance.  Throw in an eviction and your cost can be way out of whack for a couple of years.  BTW, don't believe that any one provider has some sort of magic touch where they are immune for evictions. I have seen every TK provider in Memphis in eviction court before. It happens and is the reality of owning rentals no matter where you own or who you buy from. We recently had to evict someone making 7x their rent amount, 800 credit score, perfect rental history, on the job for 5 + years. Dude just disappeared after 8 months of on time payments. When people live in your house, life can happen. Who knows what happened with this dude? Maybe he joined a Cult, maybe he is on a milk carton, maybe he is touring with Phish, maybe he had a life moment like Peter Gibbons on Office Space or Patrick Bateman on American Psycho. 

    Bottom line, I am not saying don't trust someone's #'s, but most of the time, those #'s do not have any historical significance to that specific property. You may get that, you may not. Luck has a lot to do with Real Estate to. My longest tenant just entered into her 9th year with me.  For that person to stay in the same house that long, that means absolutely nothing has changed in that persons life. Has not gotten married, pregnant,  lost a job, job transfer, gone crazy, died, decided to follow Widespread Panic, get bored with the home, transition into a homeowner, etc. That is luck!  Work with the provider you like in the market you like. Communication, business model and Property Mgmt are all important qualities. 

    901-848-9028
    3Reply
  • Melissa Chinn
    Investor · Sioux Falls, SD · Member since 2014 · 20 posts · 14 votes
    9y

    Hi @Chris Thomas! I have purchased (and still own) multiple properties from Spartan Invest. I can't possibly say enough good things about Clayton and his amazing team. I came into the real estate investing world fairly uneducated - and not only did they help me learn a lot of very valuable information and knowledge that was necessary to make a decision - but once I did go to down and meet the team and view the properties, they confirmed my thoughts and gut feelings. Clayton gave me a wonderful tour of the Birmingham area, explaining the various neighborhoods to me, as well as how they decide what homes will be a good purchase and what homes aren't. 

    I can tell you that in the 2+ years that I have been working with Spartan, my vacancy has been VERY minimal. I also have properties in Sioux Falls, South Dakota which I manage myself - and I'm currently running numbers to sell one or 2 of them and investing more down in Birmingham. They make it so easy but still very profitable.

    If you have any specific questions, I would be more than happy to answer anything you may be wondering. The numbers that were presented to me for each of the properties I purchased have been accurate, if not on the low end (for maintenance costs) and the high end (for cash flow). It has definitely been a best-case scenario with the Spartan team

    4Reply
  • Chris Thomas
    OP
    Video Game Producer · San Francisco, CA · Member since 2016 · 25 posts · 3 votes
    9y

    Thank you so much for the info! It's great to hear that you've had a good experience. I'm sure I'll have more questions in the coming months and will definitely take you up on the offer! Thanks again! 

    0Reply
  • Alex Baldric
    Paris, Île-de-France · Member since 2017 · 5 posts · 1 vote
    9y

    Hey everyone,

    I recently purchased a property with Spartan and I was a bit disappointed. A few days after i purchased the home, Spartan told me they had to lower the rent to attract more attention. Despite that it took them more than 90 days to find a tenant. I am currently under the one year repurchase agreement and I am hesitating to let go of the house. At this point, I can only rely on what Spartan tells me. They emailed me that it usually takes them 30 days to find a tenant and the home i bought is great and that it came on the market in september-october which isnt the best period to find a tenant.  They want me to keep the house because according to them it is on a great location. But I am not convinced. Is 90 days acceptable? I do not have enough experience to really have an opinion on the matter. 

    0Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    9y
    Originally posted by @Alex Baldric:

    Hey everyone,

    I recently purchased a property with Spartan and I was a bit disappointed. A few days after i purchased the home, Spartan told me they had to lower the rent to attract more attention. Despite that it took them more than 90 days to find a tenant. I am currently under the one year repurchase agreement and I am hesitating to let go of the house. At this point, I can only rely on what Spartan tells me. They emailed me that it usually takes them 30 days to find a tenant and the home i bought is great and that it came on the market in september-october which isnt the best period to find a tenant.  They want me to keep the house because according to them it is on a great location. But I am not convinced. Is 90 days acceptable? I do not have enough experience to really have an opinion on the matter. 

     90 days maybe on the longer side but there are many that take that long. If the tenant is good and stays for 3+ years that helps even that vacancy time out. You can find the street to street averages on rentfaxpro. If it is in a great ( improving ) location that might be the most important factor going for your investments future. What makes this location great?

    0Reply
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