Anyone Bought Turnkey Properties with Spartan Invest?

[Jaye Seay]

I read through Chris's case study with his turnkey property with Spartan Invest. Is there anyone else who has bought properties with Spartan Invest?

If so, would you mind sharing what the price you paid for your property was and what kind of cash flow you are netting from the investment?

I'm planning on talking with a representative from Spartan Invest today. So, I'm just doing a little more due diligence.

Thanks!

[Rob Hakes]

@Chuck Van Court

I have done some deals with Spartan.  With them and most reputable companies, your purchase price should be close to the appraisal (my first was 1500 under appraisal).  I do believe that the pricing in these markets is heavily driven by these turnkey companies based on what they can rent them for.  That is one limitation as an investor is that it does limit your exit options for some years as you are buying a property at a top market price.  If you understand that and focus on the cashflow it could be a descent investment.

There is another turnkey provider who I was working with that has to start raising their prices in order to start purchasing more properties.  They will start to raise rents in hopes of keeping cap rates the same.  They also told me that because they have to raise prices and start pushing the market, appraisals will be coming in below purchase price for at least a year as they establish new comps.  The investor will be left to make up the difference if financing. This is in the memphis market.

Spartan has not reached this point YET in Birmingham.

Yes you can get insurance that covers replacement value.