Spartan Invest Reviews and Experiences?

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Spartan Invest Reviews and Experiences?

Amanda K.
Los Angeles, CA · Member since 2016 · 29 posts · 9 votes

Hi Everyone!  Has anyone had any experience with Spartan Invest in Birmingham, AL?  They recently gave a presentation at a real estate summit I was at and was very interested in their turnkey rentals.  Are there any turnkey rental investment companies that you guys have worked with and recommend?

Thanks!

Amanda

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Rob Hakes
Murray, UT · Member since 2016 · 162 posts · 166 votes
8y

@Amanda K. I just posted about my experience with them in the post titled 'Another Spartan Invest Turnkey Case Study'.  Check that out if you have a minute.  I share all the numbers and my experience.  Let me know if you have any questions.

I currently have my second property underway with them.

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  • Rob Hakes
    Murray, UT · Member since 2016 · 162 posts · 166 votes
    8y

    @Amanda K. I just posted about my experience with them in the post titled 'Another Spartan Invest Turnkey Case Study'.  Check that out if you have a minute.  I share all the numbers and my experience.  Let me know if you have any questions.

    I currently have my second property underway with them.

    4Reply
  • Blake La Grange
    Rental Property Investor · New York, NY · Member since 2016 · 45 posts · 44 votes
    8y

    @Amanda K. check out my review on them here!
    https://www.biggerpockets.com/forums/92/topics/499...

    -b

    1Reply
  • Padma Mariam
    Member since 2018 · 3 posts · 0 votes
    8y

    I contacted Spartan Invest as we are moving to Birmingham for my husband's school. Have left two voice message since last week. No response what so ever. Their phone always goes to voice mail.. find it strange for a real estate company.

    0Reply
  • Mark Byers
    Property Manager · Birmingham, AL · Member since 2015 · 50 posts · 41 votes
    8y
    They have a great reputation and I think are very good at what they do. I believe they have a lot of happy customers
    0Reply
  • Clayton MobleyPro Member
    Birmingham, AL · Member since 2014 · 875 posts · 947 votes
    8y

    @Padma Mariam I'm so sorry to hear that no one has been in touch. We had our phone system updated and it does seem like there have been some hiccups, so I will definitely be passing this info along to our admin team to get things sorted. In the meantime, please feel free to reach out to me directly via PM with your contact info and I will make sure it gets into the right hands. The best person to speak to at Spartan is our co-founder, Maureen Mccann, so I will have her assistant, Racquel reach out to you ASAP to set up a time for you two to talk.

    I'm much more the big-picture guy (and resident BP addict, clearly) at Spartan now, but if I can help answer any questions for you, please don't hesitate to ask.

    All the best - and my sincerest apologies for the inconvenience,

    Clayton

    1Reply
  • Padma Mariam
    Member since 2018 · 3 posts · 0 votes
    8y

    Thank you Clayton for your quick reach out! Looking forward to working with your company!

    0Reply
  • Clayton MobleyPro Member
    Birmingham, AL · Member since 2014 · 875 posts · 947 votes
    8y

    @Padma Mariam not at all! Actually, I am not always able to be this quick on the draw on BP, so good timing deserves a lot of the credit ;) But our communications are, of course, one of the most crucial parts of our business, so it helps us to know when something isn't working the way it should.

    I've already emailed the team to let them know about the phone-voicemail-service disconnect and to make sure Racquel knows to expect an email with your contact info so she can get you on Maureen's books asap.

    Looking forward to working with you!

    0Reply
  • James Li
    Investor · Brooklyn, NY · Member since 2016 · 9 posts · 5 votes
    7y

    Hi there, I have recently made two purchases from Spartan Invest as part of a 1031 exchange (the houses closed mid October and mid November 2018).  These were my first two houses with Spartan and I decided to dip my toes into the pool partly based on the positive feedback on Biggerpockets.  

    Unfortunately I have not had a good experience thus far.  It is now Jan 8th and both properties are not cash flowing.  In fact one of the properties was rented out when I purchased it and I had expected it to cash flow from day 1 but it immediately went into eviction, with the tenant complaining about mold.  I was informed by management at the time it was a small spot and that the tenant was going to be evicted.  Since then, I have heard nothing.  I have reached out to management again a week ago via the portal and have heard nothing back.  My wife and I are concerned about our investment.

    Maybe this is just bad luck, but of the 12 houses I purchased recently from Turnkey providers, all are cash flowing except the 2 from Spartan.  I have been doing business for years with other Turnkey providers for years and have not had this happen until now.  

    My experience in speaking with the purchasing team is positive and everyone is nice but the rental income has been non-existent for months since my closings.  The communication has not been prompt and I feel left in the dark about the situation.

    Clayton if you see this, please help!  

    Thank you,

    James

    1Reply
  • Amanda K.
    OP
    Los Angeles, CA · Member since 2016 · 29 posts · 9 votes
    7y

    @James Li Thank you for the feedback!  Could you comment on how the eviction process is so far and are you evicting both tenants?  Is Spartan handling everything themselves?  I didn't purchase with Spartan because their waitlist was so long.  I went and purchased a rental property on my own in Birmingham and may possibly need to go through an eviction.

    I hope your situation gets resolved soon. 

    0Reply
  • James Li
    Investor · Brooklyn, NY · Member since 2016 · 9 posts · 5 votes
    7y

    Hi Amanda,  I actually just spoke to management.  It seems like they moved to a new office and has been hectic, hence the delay in getting back to me.  I was informed the eviction was successful and he is out of there.  Yes they took care of the eviction process and the costs associated with it, with the situation what it is with me just purchasing it already rented out.  IMO that did right by me on that front.  Nevertheless both properties remain un-rented so I'll have to see how it goes and when it finally starts to perform.  

    All due fairness, everyone I have dealt with has been professional and nice.  This may just be bad luck, but until it starts to perform, it is what it is at this point.  

    You too!  Good luck with the property.

    James

    0Reply
  • Amanda K.
    OP
    Los Angeles, CA · Member since 2016 · 29 posts · 9 votes
    7y

    @James Li Glad it got resolved already!  How long did the the process take and will they be billing you for the legal costs or are they taking care of it?

    Hope you rent them both out soon! Good Luck!

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Amanda K.:

    @James Li Glad it got resolved already!  How long did the the process take and will they be billing you for the legal costs or are they taking care of it?

    Hope you rent them both out soon! Good Luck!

     nov december Jan and dog tough times to re rent properties.. so this lull is not unexpected.. its more the norm.. at least from what i see

    Podcast Guest on Show #222
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    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    7y
    Originally posted by @Amanda K.:

    Hi Everyone!  Has anyone had any experience with Spartan Invest in Birmingham, AL?  They recently gave a presentation at a real estate summit I was at and was very interested in their turnkey rentals.  Are there any turnkey rental investment companies that you guys have worked with and recommend?

    Thanks!

    Amanda

     No personal experience with them but the owner @Clayton Mobley is a frequent poster here on BP. From reading his commentary over the last year or so I think you'd be in good hands. Dude's got a good head on his shoulders & appears to know what he's doing.

    1Reply
  • Clayton MobleyPro Member
    Birmingham, AL · Member since 2014 · 875 posts · 947 votes
    7y

    @James Li  Apologies for my late reply here, and for your wait on some communication from our team. We did just move into a new office over the holidays, and have a few new hires in training as well. 2019 is going to be a big year, but, of course, that means big effort is required. 

    However, that by no means excuses our delayed communication to you (but I know it's always nice to at least know the reason), and I will pass along all your comments to our team to make sure they are aware. Especially for our new folks, we need to make sure everyone knows that Spartan's reputation depends, at least in part, on our ability to communicate to our clients, even when the news isn't great.

    As @Jay Hinrichs has said, the holidays are just a bad time for renting (no one likes to move right when school starts or during the holidays, in any market), so the unfortunate situation with the previous tenant and the 'mold' was badly timed. That being said we're heading out of the holidays and into Spring, which is typically a much better time to secure tenants. Rest assured our leasing team is working hard to get a solid, reliable tenant in place as soon as possible and will keep you updated with any news.

    If you have any questions, please feel free to reach out to the team, as you have already, or to me here (though my BP presence is sporadic, so they will likely be a better bet). We're working on getting your investments performing as soon as possible, but we definitely understand your frustration. However, given that our average tenancy is 38 months, we trust the this will become just a small blip on the rearview mirror over the coming years.

    Thank you for your trust and patience,

    Clayton

    0Reply
  • James Li
    Investor · Brooklyn, NY · Member since 2016 · 9 posts · 5 votes
    7y

    Hi Clayton,

    Thanks for your reply and the encouragement.  Part of my decision to invest with Spartan stems from reading your posts and replies to fellow investors and after speaking with Maureen I decided to take the initial plunge.  

    In addition to the portfolio of turnkey properties I own out of state, I am also an active Landlord here in NY so I do understand that the winter months are more challenging than the warmer prime rental months to place tenants.  That said, the other properties in my 1031 exchange are all performing to date (thank god).  Hopefully we get these two performing as soon as possible as well.  

    Again I appreciate the prompt response and like you said, a small blip in the rearview mirror! 

    James

    0Reply
  • Jared Friedman
    Investor · Studio City, CA · Member since 2016 · 38 posts · 54 votes
    7y

    Hang in there. If you closed mid October and mid November that’s probably the crappiest time someone will look to rent a place. Nobody moves at thanksgiving and Christmas time. Your properties haven’t been on the market that long in the grand scheme of things.  I just closed on my 6th spartan property. Some of mine got rented in a matter of days and other took a few months. Ive already been through an eviction as well.  At the end of the day this is a long term investment and you should always expect that things won’t be perfect. Just like putting money in the stock market when things spiral downhill you need to expect that and enjoy the ride. I think spartan has been good in their communication and they are pretty transparent. 

    Good luck. 

    1Reply
  • Clayton MobleyPro Member
    Birmingham, AL · Member since 2014 · 875 posts · 947 votes
    7y

    @James Li I spoke with Scott yesterday and he said you two have already spoken, so happy to hear you're being taken care of. 

    He also mentioned that we were able to get your tenant to move out on their own instead of having to wait for a full eviction process, so that's actually some good news (inasmuch as losing a tenant can be). Previously there was an issue with the Sherrif's office being backlogged due to being short-staffed over the summer, and it was causing evictions to take much much longer than normal. So being able to get things moving this quickly is actually a huge win, eviction-wise.

    Also, just to be clear, the issue with the tenant was not an issue of mold, since our rehab and turnover processes check for that kind of thing. The tenant moved in and simply did not pay (hence the eviction), so my guess is that they were claiming mold as a 'reason' to not pay. Your property was vacated last Friday and we're covering your turnover costs (as you mentioned earlier). Our average move-out time (from vacancy to back on the market) is just about 5 days, so we're working hard to make sure the property is pristine and make on the market asap. I believe Scott will be in touch with you again soon to check-in and make sure you're up to date.

    Thanks to @Jared Friedman for the encouraging words - always nice to see our long-term clients supporting the new folks :) 

    Stick in there, James! We're working hard to put this behind us and look forward to many years of bringing you positive cash flow you're looking for.

    All the best,

    Clayton

    0Reply
  • Mathieu Guerrera
    Member since 2018 · 2 posts · 1 vote
    7y

    Hi James, just to bring my small own contribution : It's not exactly the same situation with yours, but i had more or less the same kind of troubles, so you re not alone ! My previous tenant left very end of August (after 4 months), and my house hasn't found a tenant from that time. You said, maybe it's a bad luck... i don't know : maybe are we 2 unlucky men ? 

    0Reply
  • James Li
    Investor · Brooklyn, NY · Member since 2016 · 9 posts · 5 votes
    7y

    Hi everyone, thanks for the many DMs inquiring about my situation with Spartan and any updates since my last post.  

    I thought I'd post this here publicly as a follow up:  One of my Spartan houses is now rented and I just received my first month of rent. Yay!  I'm appreciative of the efforts made on Birmingham Rental Property Management (management branch of Spartan) to quickly resolve the eviction and get that rented out. 

    The other house is still vacant so I am hoping that gets rented also soon and performing.  I will post another update as it happens.

    James

    0Reply
  • Franklin F.Pro Member
    Investor · Crossville, TN · Member since 2016 · 58 posts · 27 votes
    7y

     Thanks all, this thread is helpful to me as I am just beginning to explore turnkey investing, particularly with Spartan.  Good luck James!

    1Reply
  • Kevin Yi
    Irvine, CA · Member since 2017 · 45 posts · 4 votes
    7y

    We own 2 properties with Spartan for about 9 months now. In the beginning things went fine for the most part. As of recent (about 2 months) response to questions have been very slow to nonexistent. Sounds like they dealing with growing pains, but it can be frustrating when communication is slow to nonexistent at times.

    0Reply
  • James Li
    Investor · Brooklyn, NY · Member since 2016 · 9 posts · 5 votes
    7y

    Hi everyone, here's quick public update as I'm getting lots of DMs regarding my Spartan situation:  

    - As mentioned a month ago: one of the two houses I closed on last October rented out.  

    - The second house unfortunately is still vacant and it is now almost 5 months of vacancy.

    I've been in communication with the Scott at the management team and he is communicative and expresses that they are trying their best to get it rented out.  

    But so far, not so good, so I'm crossing my fingers, trying to be patient and trying to calm the wife that it wasn't a huge mistake.

    Hope to provide a good news update on this soon when it rents out.

    James

    1Reply
  • Axel MeierhoeferPro Member
    Rental Property Investor · Escondido, CA · Member since 2017 · 684 posts · 550 votes
    7y

    @James Li Thanks so much for all the updates. I am in the early stages of a 1031 and am selecting turnkey providers. What is concerning to me is the renting situation you are describing. In the materials I studied about Birmingham, it was portrayed as a growing market with high rental demand. You having to wait this long to rent two properties that should have been recently renovated is really scary. In my other two markets, I never had to wait more than 2 weeks to rent/turnover. Maybe Birmingham is not as hot as it has been described or the properties are not nearly as desirable as the proforma's make them look like.

    I am growing my portfolio but would not be able to pay all costs (including lending) for multiple non-performing assets. Great for you to able to handle that right at the start when you had zero chance to build any reserves.

    I also wonder how this thread is making new investors feel. It sure scares me, especially now that it appears you are not just unlucky.

    How do you handle the lack of performance? I assume you probably lost any profit for at least 1 year already?

    2Reply
  • Garrett McClintock
    Provo, UT · Member since 2016 · 1 post · 0 votes
    7y

    @James Li - which other companies do you have properties with?

    0Reply
  • Robin Hays
    Member since 2019 · 1 post · 1 vote
    7y

    Which turn key companies perform the best for you folks out there? im looking for new markets.

    1Reply
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