Spartan Invest Turnkey Case Study
Hey guys!
Just wanted to start a case study based on my experience with Spartan Invest out in Birmingham AL. After some experience with purchasing my primary residence with a detached guest house (first cash-flowing deal), I was excited about passive RE investing. I tried wholesaling, and couldn't pull the trigger because of all the moving pieces that had to be put together. I knew it was something I COULD do, but didn't WANT to do. So, turnkey it is. After having a conversation with someone from Morris Invest, I was disheartened to see how they do things, and started searching through my podcast library. Norada RE started to get me thinking about other turnkey options, and I stumbled across some interviews featuring Maureen McCann who is the Sales Director and Partner of Spartan Invest. I was super impressed with the Alabama market. The numbers are shockingly amazing. I was even more stoked on Maureen and Spartan. After already being prequalified...I decided to reach out.
September 14th: First attempt.
Called their office and also emailed them. Got on the phone with a pleasant receptionist who told me it would be best to chat with Maureen. Was told she was out of town on vacation and that I would receive a call back that day or tomorrow.
September 15th: Second attempt.
Called at the end of the day, was told that Maureen was still settling back into the office.
September 18th: Third attempt.
I found Maureen's number online and just texted her. She responded within minutes. Got on the line with her immediately. Chatted for over an hour. Was totally sold on her and Spartan. Turns out we share our hometown! Answered all my questions, was really helpful and sweet. She also walked me through some deals and strategies that could be beneficial for me. It was SO much better than my cold, 3 minute phone call with someone from Morris just looking to sell C- homes at 40k. Was thankful for Maureen. Could not be more stoked on her. Was told she would follow up with an email introducing me to her assistant. Got sent an email telling me I was on the waiting list and that it would be a month before I could get any properties sent to me. She also sent some property examples of some of their recent work.
October 4th: I get sent a batch of properties.
I was excited to receive the property list 2 weeks early and immediately went through an analyzed all 12 that were sent to me. I was told I had to act fast and let them know if I wanted one and if I wanted to order for multiple inspections as well. I tossed out every property that didn't at least cash flow 300/month. I landed on 2. Picked 1. Here are some numbers on the property I liked:
-117k purchase price
-1100 rent
-B neighborhood
-Cash flow: 230-330/month depending on how you analyzed the deal
I asked to reserve that one, and opted to throw in the inspection reports. I got an email shortly after saying that it was mine and they took it down from others being able to have access to it. Was sent a contract to sign. It was more of a formality showing that it was reserved for me. They would start renovating it and it would most likely close on Dec. 1st. Note at this point, I haven't put any money down.
October 5th: Had questions about purchase price and appraisal
Was able to email them and see if I could get on the phone with Maureen. She was available within 24 hours. Was told that it's very rare the appraisal comes in lower than purchase price and if it did, they would make it right. Was excited about that answer. I just wasn't used to paying the asking price. Here in San Diego, my offer on my primary was significantly lower than asking. That's just how it works out here in this type of market. Either way, was encouraged by my conversation and Maureen told me she was excited about the deal I got. I signed the contract and waited.
October 10th: reached out to be sure my contract was effective
I didn't hear back and usually am used to a more active role with this kind of stuff. I was prepared to set up my lender with these guys but evidently (after not hearing back, trying again, then getting a response a few days later) they were already on it. Super cool! I asked for some renovation photos. Was told I would get some when the time comes. Was also told to sit back and take their lead. I was happy to do so.
I will keep you all posted with as much detail as possible and hopefully we can analyze this together. I also hope this encourages investors to take the plunge and TRUST but VERIFY.
-b