Blog

30
August
2018

The Tax Man Cometh: Deferring Taxation With a 1031 Exchange, Part 4

Successfully investing in real estate, like any other investment, requires making the most out of every penny. For many investors, this means taking advantage of tax strategies that allow them to defer tax liability on their capital gains in order to put that money to work earning - you guessed it - more money.

16
August
2018

Your Investment Glossary: Look-Back Period

When new investors first start looking into turnkey, it can be easy to get overwhelmed by the massive amount of information floating around. It may seem like everyone else already knows the answer to all your questions, which might understandably discourage you from asking those questions in the first place. At Spartan Invest, we encourage an active and question-filled dialogue with all our clients to ensure that each person is fully educated about all the details of their investment. We think it is of the utmost importance that investors of every experience level feel comfortable asking detailed questions of their turnkey provider and seeking clarification whenever and wherever it is needed.

02
August
2018

Top 5 Turnkey Red Flags

The [turnkey] industry has had its ups and downs, and there is never any shortage of people who think they can make a quick buck selling real estate. Therefore, it should come as no surprise that there are plenty of less-than-scrupulous people out there calling themselves turnkey providers, but providing almost nothing of value to their investors. While this is a problem, it’s also a problem you can easily avoid.

17
July
2018

Your Investment Glossary: Depreciation Recapture

In our previous Glossary posts, we’ve focused on helping you understand the jargon behind return calculations. What is a [maintenance rate]? How is a [vacancy rate] calculated? Today we’re going to take a look at the other side of the investment equation: What happens when you sell a property? Specifically, how much are you going to toss Uncle Sam’s way, assuming you don’t execute a [1031 exchange]?

14
June
2018

Autocar comes to Center Point, AL

On April 19, 2018, Autocar celebrated the grand opening of its new facility in Centerpoint, Alabama. Autocar was able to transform the former Meadowcraft facility into their 1.3 million square foot manufacturing plant in less than a year.

07
June
2018

Amazon named Bessmer, AL its next distribution location.

In early May 2018, rumors began of a possible 800,000-square-foot fulfillment center that could employ up to 3,000 people. Project Bluebird was the name given the secretive project being courted for Bessemer, Alabama.  Local, state, and national news outlets were speculating about the project. The Birmingham Business Bureau broke the good news to the media by mid-May. Now we all know it is - Amazon.  Birmingham began wooing Amazon last year for the Amazon HQ2 headquarters with their “Bring A to B” campaign. Birmingham wasn’t chosen then but the unusual campaign caused Amazon to give Birmingham Metro another look.

21
October
2017

Four of the Biggest Pitfalls with Rental Property Investment

The Money Pit. Sometimes you just buy a “dud”. In every market, in any neighborhood,with any company, there are problem properties. This can be due to a consecutive string of problem tenants, large unknown maintenance issues that lay below the façade of a pretty house, or bad luck with choosing the wrong property manager. Sometimes you can’t anticipate all of the unfortunate circumstances that can befall a property. Multiple properties and a diversified portfolio are the only solution to this pitfall.

17
June
2017

The Tax Man Cometh: Deferring Taxation With a 1031 Exchange, Part 1

Real estate investing can be a lucrative wealth building strategy, both for people who want to live on their rental income now as well as those who are looking to build up their portfolios for a more distant goal. Unfortunately, one of the chief downsides to being a successful investor is the increased tax liability that comes with it. There are many ways to reduce or defer your tax burden depending on the type of investment gains you earn. By investing through a self-directed IRA (SDIRA) or Solo-401K, for example, you can keep all your rental income safely tucked away in a tax-deferred account until after retirement…but that’s a topic for another post. While income taxes on rental income are a nuisance, to be sure, but what about that whopping bill that comes due when you sell a property at a profit?

24
May
2017

Your Rental Investment Glossary: Vacancy and Occupancy Rates

At Spartan, we have found that the best business relationships are formed with clients that are well-informed. We recently started a [blog series] aimed at helping all our clients – those we already work with and those we may not have met yet – understand some of the core concepts in turnkey rental investing. Our hope is that by breaking down these concepts and illustrating the math in clear, simple examples, our investors will be armed with the knowledge necessary to make smart, sensible, and lucrative investments – whether with us or in other markets around the country.

24
May
2017

Top 3 Reasons Why Alternative Investments Are Crushing The Stock Market

Cash is King: Since 2004, the average dividend yield of the S&P 500 has been sporadic, swinging up and down without much cause. Companies are now trying to increase dividend yield again to appease investors, but skepticism remains high as to whether managers can keep this up for much longer.

02
March
2017

Your Rental Investment Glossary: Maintenance Rates

If you’re just getting into the world real estate investing, you’ve found out quickly just how much there is to learn. This can be great for those who like dive in and be challenged – and have a lot of time on their hands – but most people with full time jobs don’t have the time or energy to sift through the virtually endless amount of information available. Even if you’ve decided on turnkey as your investment vehicle, there’s still a ton of lingo, endless mathematical concepts, and more opinions on the ‘right’ way to do things than you can shake a stick at. At Spartan, we understand that self-education is both the most exciting and most challenging part of the process. To help you along the way, we’ll be posting articles on common turnkey concepts, metrics, and calculations to help you get comfortable with this brave new world.

11
February
2017

10 Best Turnkey Areas / Zip Codes For Properties in the Birmingham Metro Area

Center Point/Roebuck Area – 35215 – This is a fantastic area where you canget a lot of bang for your buck. There is currently high rental demand in this area, and properties priced accurately generally move off the market quickly from a leasing standpoint. There are also still some good deals out there in the area, and depending on whether you use a turnkey provider or do the renovation yourself, you can expect somewhere between 8.0%-10% ROI (with a Turnkey provider) all the way to 11-14% (if you go at it alone and know what you are doing). Recently this market has become a little saturated with many new entrants – primarily local investors but also some national players like Sayco and Havenbrook. In my opinion, long term capital appreciation looks good in the area as well as the fact that there are an increasing number of owner occupant comparable sales that are bringing the average sales price in the area up. Disclaimer: there is NO way to know which area will be good from a capital appreciation standpoint 5 or 10 years down the road. These are just assumptions based off the data that we have.

14
November
2016

3 Tips From Self-Made Millionaires Under 30 Years Old

Income, Income, Income. Dedicate the majority of your time growing or keeping a constant income while decreasing the amount of time you spend on that revenue stream. This is done more easily if you invest on passive verses active investments. Remember that developing leaders or other people to take your current responsibilities while maintaining revenue streams earned from these people is also a great (and not always obvious way) to create passive income. Real estate, high yield bonds, and high dividend yield stocks can also be great forms of passive income.

28
July
2016

The Tax Man Cometh: Deferring Taxation With a 1031 Exchange, Part 3

In Part One and Part Two of our blog series on 1031 exchanges, we’ve covered the basics of how a like-kind exchange works and the specific rules and regulations you must adhere to in order to execute a successful transaction. But what about the long-term impact of this tax-deferral method?

21
July
2016

The Tax Man Cometh: Deferring Taxation With a 1031 Exchange, Part 2

If you’ve been researching tax strategies for real estate investment online, you’ll certainly have run across mention of the ‘1031 Like-Kind Exchange’ before. However, most people don’t understand the very specific structure of this type of transaction. To properly execute a 1031 exchange, you must adhere to a series of steps and fulfill a number of requirements regarding the type and value of the property you wish to purchase, all within a rigid timeline. The process is easy to mishandle, and the result could be a whopping tax bill, so knowing the ins and outs of this type of transaction is key to a successful exchange.

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Contact Us

1110 23rd Street South
Birmingham, AL 35205
www.spartaninvest.com
info@spartaninvest.com