Spartan Invest Reviews and Experiences?
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@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.
34 Replies
- New York City, NY · Member since 2018 · 15 posts · 4 votes7y
Figured I'd chime in with my experience with Spartan.
I've also purchased a property with Spartan and I am experiencing something similar. I closed at the end of March and I still haven't received payments for moved in tenants. They leased it out at the end of July and basically made it clear to me my only option would be Section 8 which would have been fine if I had known that going in but it seemed like they went for it because they weren't able to rent it any other way. The only updates I get are when I pester Scott with emails. Whenever he gives me an estimated date for something, I just tack on a month or two because the dates he gives have never been accurate, or even close to accurate. Even during the closing process, I was always leading in the communication. The person I was communicating with left the company and I was sending emails to a nonexistent email for a week and a half before I had to reach out to Clayton here on BP to find that out.
Overall, I'd rate the experience so far as inefficient and nerve-wracking. I've gotten no emails on major updates during the process, very hand-wavy timelines of the process which always seem to take longer than what I am told and no tenant for 4 months in what was supposed to be a hot rental market during a good time to find tenants, Spring/Summer. On top of that, even with a tenant in the property, payments aren't coming in. I am pretty disappointed with this whole process and to be honest, there is no way I'd buy another property from Spartan at this point. I don't think there's any excuse for this treatment. I get better service at McDonalds. My wife and I expected a much higher standard when we signed up with Spartan and it seems like they haven't managed the growth of their company properly in the past year. Originally posted by @Colin Smith:
Figured I'd chime in with my experience with Spartan.
I've also purchased a property with Spartan and I am experiencing something similar. I closed at the end of March and I still haven't received payments for moved in tenants. They leased it out at the end of July and basically made it clear to me my only option would be Section 8 which would have been fine if I had known that going in but it seemed like they went for it because they weren't able to rent it any other way. The only updates I get are when I pester Scott with emails. Whenever he gives me an estimated date for something, I just tack on a month or two because the dates he gives have never been accurate, or even close to accurate. Even during the closing process, I was always leading in the communication. The person I was communicating with left the company and I was sending emails to a nonexistent email for a week and a half before I had to reach out to Clayton here on BP to find that out.
Overall, I'd rate the experience so far as inefficient and nerve-wracking. I've gotten no emails on major updates during the process, very hand-wavy timelines of the process which always seem to take longer than what I am told and no tenant for 4 months in what was supposed to be a hot rental market during a good time to find tenants, Spring/Summer. On top of that, even with a tenant in the property, payments aren't coming in. I am pretty disappointed with this whole process and to be honest, there is no way I'd buy another property from Spartan at this point. I don't think there's any excuse for this treatment. I get better service at McDonalds. My wife and I expected a much higher standard when we signed up with Spartan and it seems like they haven't managed the growth of their company properly in the past year.Wow...so they finally placed a tenant in August and you STILL haven't seen payments come in? Have you reached out to Clayton directly? I'm seriously considering investing with them and I have my initial call scheduled tmrw. But your story definitely makes me hesitate a bit to jump right in. I wonder how much of their tenants are section 8.
- 7yJay HinrichsBusiness MemberReal Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
Originally posted by @Kent Lau:
Originally posted by @Colin Smith:
Figured I'd chime in with my experience with Spartan.
I've also purchased a property with Spartan and I am experiencing something similar. I closed at the end of March and I still haven't received payments for moved in tenants. They leased it out at the end of July and basically made it clear to me my only option would be Section 8 which would have been fine if I had known that going in but it seemed like they went for it because they weren't able to rent it any other way. The only updates I get are when I pester Scott with emails. Whenever he gives me an estimated date for something, I just tack on a month or two because the dates he gives have never been accurate, or even close to accurate. Even during the closing process, I was always leading in the communication. The person I was communicating with left the company and I was sending emails to a nonexistent email for a week and a half before I had to reach out to Clayton here on BP to find that out.
Overall, I'd rate the experience so far as inefficient and nerve-wracking. I've gotten no emails on major updates during the process, very hand-wavy timelines of the process which always seem to take longer than what I am told and no tenant for 4 months in what was supposed to be a hot rental market during a good time to find tenants, Spring/Summer. On top of that, even with a tenant in the property, payments aren't coming in. I am pretty disappointed with this whole process and to be honest, there is no way I'd buy another property from Spartan at this point. I don't think there's any excuse for this treatment. I get better service at McDonalds. My wife and I expected a much higher standard when we signed up with Spartan and it seems like they haven't managed the growth of their company properly in the past year.Wow...so they finally placed a tenant in August and you STILL haven't seen payments come in? Have you reached out to Clayton directly? I'm seriously considering investing with them and I have my initial call scheduled tmrw. But your story definitely makes me hesitate a bit to jump right in. I wonder how much of their tenants are section 8.
Keep in mind in those markets section 8 can lag 2 to 3 months behind.. so one day you get 2 or 3 payments.. not sure that's the case here.
I have done business in that market for about 15 years.. and I do know the section 8 in that market is tougher to navigate and slower to respond than other markets.. Did you ask what non Section 8 rent would be.. most of the time in those markets I find folks go for section 8 because not only the perception of guaranteed rents the HUD rents are also higher than the market rents.. other wise why use the system everything being equal.. having owned a few hundred homes with Section 8 folks in that market and in Jackson MS you do need to beef up your reserves and maintenance you have to have a yearly hud inspection and its rare that its not 700 to 1500 each year to bring the home in hud compliance.. And its really just basic maintenance items that they require but using 5% of rents is usually not enough we found. Better to budget more and be pleased if it comes in lower.. than budget an unrealistic low number just to make your cash flow number look good to you and be disappointed.. Turn over kills ROI and vacancy..
- Member since 2019 · 1 post · 2 votes7y
James- can you advise what other turnkey providers you have invested with? Also, can you provide an update on your experience with Spartan?
Thanks!
Courtney - NY · Member since 2018 · 38 posts · 12 votes6y
Originally posted by @Colin Smith:
Figured I'd chime in with my experience with Spartan.
I've also purchased a property with Spartan and I am experiencing something similar. I closed at the end of March and I still haven't received payments for moved in tenants. They leased it out at the end of July and basically made it clear to me my only option would be Section 8 which would have been fine if I had known that going in but it seemed like they went for it because they weren't able to rent it any other way. The only updates I get are when I pester Scott with emails. Whenever he gives me an estimated date for something, I just tack on a month or two because the dates he gives have never been accurate, or even close to accurate. Even during the closing process, I was always leading in the communication. The person I was communicating with left the company and I was sending emails to a nonexistent email for a week and a half before I had to reach out to Clayton here on BP to find that out.
Overall, I'd rate the experience so far as inefficient and nerve-wracking. I've gotten no emails on major updates during the process, very hand-wavy timelines of the process which always seem to take longer than what I am told and no tenant for 4 months in what was supposed to be a hot rental market during a good time to find tenants, Spring/Summer. On top of that, even with a tenant in the property, payments aren't coming in. I am pretty disappointed with this whole process and to be honest, there is no way I'd buy another property from Spartan at this point. I don't think there's any excuse for this treatment. I get better service at McDonalds. My wife and I expected a much higher standard when we signed up with Spartan and it seems like they haven't managed the growth of their company properly in the past year.Hi Colin,
Can you explain why Spartan felt like they could only rent out to section 8? Is it because of the location? I'm interested in investing in Birmingham, but reading all these comments about long vacancies is giving me some pause. Just looking at data from wikipedia, Birmingham has had consistent negative population growth and although it ranks 49th in the list of major metropolitan statistical areas, it has one of the lowest growths of the top 50 MSAs. My concern is that maybe there is not enough people entering the Birmingham market to match the amount of investors buying rental properties there. What type of data on vacancy rates were you given?
- Member since 2019 · 18 posts · 7 votes6y
@Kevin Charles
Any further updates from anyone about Spartan? I have the same concerns as Kevin. Have investors over ran the tenant demand? I began to try in get in contact with Spartan at the beginning of the week but haven’t heard back. Thanks
- Los Angeles, CA · Member since 2017 · 22 posts · 7 votes5y
Late to this thread but purchased a property with Spartan back in 2018. This is the first rental property I purchased. This is my third tenant so far if that is any indication of my frustration. The first one paid a few months and then left without notice during wintertime. The other was a good tenant but left for job reasons. The third tenant signed a lease back in April to May of 2020 and has been late on rent for the past two to three months, maybe due to Covid? I'm not sure if it's because this is a bad property or due to Covid. Now the tenant just stopped paying with no communication as to why. I have not had any profit for the past three years due to the vacancies and tenants not paying on time. This investment has been a big source of frustration and anxiety every month wondering if the tenant is going to pay and seeing my reserves dwindling. I'm seriously considering reaching out to some wholesalers since I've been getting postcards from them wanting to buy my property.
- 4yMichael RuizPro MemberInvestor · Destin, FL · Member since 2020 · 1 post · 0 votes
@Johnson Lo, what ended up happening with this property? I’m really sorry to hear you were going through this. I have my first meeting/telephone call with a Spartan sales rep scheduled for tomorrow.
- Investor · Sacramento, CA · Member since 2017 · 58 posts · 27 votes3yCurious on any updates about your situation? And others.. Considering Spartan so decided to resurrect this old thread.
Quote from @Johnson Lo:
Late to this thread but purchased a property with Spartan back in 2018. This is the first rental property I purchased. This is my third tenant so far if that is any indication of my frustration. The first one paid a few months and then left without notice during wintertime. The other was a good tenant but left for job reasons. The third tenant signed a lease back in April to May of 2020 and has been late on rent for the past two to three months, maybe due to Covid? I'm not sure if it's because this is a bad property or due to Covid. Now the tenant just stopped paying with no communication as to why. I have not had any profit for the past three years due to the vacancies and tenants not paying on time. This investment has been a big source of frustration and anxiety every month wondering if the tenant is going to pay and seeing my reserves dwindling. I'm seriously considering reaching out to some wholesalers since I've been getting postcards from them wanting to buy my property.
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