ABC Capital = Absolutely Bad Company

Buying & Selling Real Estate
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ABC Capital = Absolutely Bad Company

Patrick Lai
Member since 2018 · 3 posts · 0 votes

Just want to add another bad comment on ABC Capital Realty, also as sister company Premier Rental is an aweful company. We bought 2 properties from it in 2015 at Philadelphia and ABC about act as the property management company. The contract is a 3 years rent guanarentee. Problems occur in year 3 and one of the houses we cannot receive any rent for the whole year. They did not reply and push the responsibilities to the insurance company which is not stated in the agreement. Also, we found out that they did not help us to pay the property tax ( but it has been deducted on our rental income) and got penalties and the city called a collection company on that. The worst thing is we found out one of the house got squatter and as a property management company, ABC not even take any response or even say don't know who the squatter is.

ABC is still having businesses and I know there are over 50 owners are the victims of this company. I know it also hire a well know agent to help marketing their properties. We urge you to avoid ABC Captial or Premier Rental or any of its sister companies. You will lose money and got a lot of troubles to deal with the property! ABC = Absolutely Bad Company!

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Natalie Schanne
Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
7y
Patrick Lai - I’m not a licensed PM, but I am a licensed PA/NJ Agent with Philadelphia experience. My advice to you is to cancel your PM contracts and take back control of your properties. If you need help finding a PM, I can recommend some names. If you want to sell out, I can help you with that to. Philadelphia has appreciated greatly over the past few years. If you had an average property that remained in decent condition, it’s worth 5-10% more annually in year over year appreciation. I wish I’d bought a $13m 65 unit multifamily in center city philadelphia in 2013. It’d be worth $20m or more today. No company is great forever. Look at GE now.
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  • Samir Shahani
    Investor · Easton, PA · Member since 2017 · 131 posts · 102 votes
    7y

    @Patrick Lai

    Take them to court - specially if they claim that they are paying your taxes and they are not.

    Do you have a contract? What does it say regarding your issues?

    I assume they can evict a squatter on your behalf?

    1Reply
  • Natalie Schanne
    Real Estate Agent · Princeton, NJ · Member since 2016 · 1k+ posts · 1k+ votes
    7y
    Patrick Lai - I’m not a licensed PM, but I am a licensed PA/NJ Agent with Philadelphia experience. My advice to you is to cancel your PM contracts and take back control of your properties. If you need help finding a PM, I can recommend some names. If you want to sell out, I can help you with that to. Philadelphia has appreciated greatly over the past few years. If you had an average property that remained in decent condition, it’s worth 5-10% more annually in year over year appreciation. I wish I’d bought a $13m 65 unit multifamily in center city philadelphia in 2013. It’d be worth $20m or more today. No company is great forever. Look at GE now.
    2Reply
  • Patrick Lai
    OP
    Member since 2018 · 3 posts · 0 votes
    7y

    @Samir Shahani 

    It took 3 weeks for my agent to collect the key from ABC and found out it can't work with one of the locks. I have to hire a lawyer myself and it is expected to take months.  The PA government made to policy in favour of the squatters and it is painful for landlords.

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  • Nathan J.
    Saugerties, NY · Member since 2014 · 98 posts · 32 votes
    7y

    This was how my new PM found one unit when they took over a property from ABC capital. This one was on the 4000 block of N.18th street in philadelphia (though I believe ABC Capital also advertise through Maverick Real estate group for Baltimore also). Terrible company in my opinion.

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  • Andre D.
    Bronxville, NY · Member since 2014 · 1 post · 0 votes
    7y

    @Natalie Schanne Hi Natalie, I am interested in your recommendation for a Philadelphia Property Management company. I once used ABC and am currently with Anchor.

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  • Joe White
    Property Manager · Philadelphia, PA · Member since 2015 · 515 posts · 196 votes
    7y

    Wow!  I mean, wow! 
    It's not professional for me to speak badly about another Philadelphia Property Management Company; but we have taken over clients from these guys....and I just hate, absolutely hate to see this stuff.

    Property management is regulated and a licensed activity. There are random audits, that review all aspects of a property management company; so I never understand how this can happen. 

    Just one point out of all this is on Conversion. Using funds, or incorrectly collecting funds and not applying them as indicated is particularly illegal. 

    They have a contract stating they will pay property taxes, they collect it; but then they don't pay them? Just that alone should end their existence.  

    2Reply
  • Chris K.
    Attorney · Nashville, TN · Member since 2015 · 1k+ posts · 1k+ votes
    7y

    @Patrick Lai

    I don't invest in Philadelphia and I know nothing about this company aside from what I've read on BP posts. But if this company screwed over that many owners to that extent, the owners could theoretically file a joint UTPCPL complaint with the Office of Attorney General or the State Real Estate Commission. As @Joe White pointed out, they may face criminal liability as well if they collected money for taxes but failed to pay them. 

    Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

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  • Patrick Lai
    OP
    Member since 2018 · 3 posts · 0 votes
    7y

    @Joe White

    @Chris K.

    Thanks both of your post. Unfortunately,  most owners are still hoping ABC could help them to sell their properties even at some loss.  Since most of us are located overseas or at another State, it is difficult for us to arrange things. We used to hire a lawyer but he only helped us to send a letter to ABC and nothing else. ABC has threatened not communicating with us after the lawyer sent them the letter. 

    Patrick Lai

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  • Joe White
    Property Manager · Philadelphia, PA · Member since 2015 · 515 posts · 196 votes
    7y

    @Patrick Lai I understand it feels difficult being non-local; but an hour of research online, for good real estate agents would get the properties sold for the best price. Far better than using a company already known for being a very bad option.

    I can certainly recommend very good agents. Also, BP is a great place to find them.

    1Reply
  • Kim Tonetti
    Member since 2019 · 1 post · 0 votes
    7y

    As an investor and licensed PA Real Estate agent, I've received calls  from multiple investors seeking to get out of their contracts with ABC.  It seems that they seek Investors from other countries, (Israel has at least 200 investors alone ) with little ability to watchover the renovation promised, or keep an eye on the local market movements in real estate.  Investors pay cash upfront for "renovated" properties, at $80k or more in areas that you can pick up a fixer for $10-$15k. These are in micro markets within the city that have not not been poised for growth historically, have higher renter than ownership ratios. 

    Investors are finding the homes purchased for $85k, may only appraise at $35,000. After viewing a few of these 700-900 sf row homes, it appears minimum finishes were used, costing less than $30k 

    This was today's call:

    An investor purchased a row home for $85k over 15 months ago. After 9 months, they decided to visit their investment in Philly and were shocked to learn that ABC had not started work... no permits, no contractors, no plans (ABC bought this shell for $16k)

    ABC paid 1 year of monthly rents, then stopped after the 1st year, and tells them they have no money to renovate. Investors are now stuck with a shell that is not rentable, can't be sold on the open market anywhere close to the price they bought it for, and they can't hire a US based attorney without spending at least another $10k to fight ABC.

    After much deliberation, ABC recently offered to buy it back for the same amount, but have not filled out the contract fully, have not presented any estimation of closing costs to the investor, and have not allowed the investor to be represented. They will try to resell it as an assignment.  (Interestingly, there has been a small spike in valuations of flips on the outer limits of the neighborhood.  Flips are now $140K)

    Another group of investors shared that there are another 20+ units that were claimed to be renovated and rented, but are shells.

    I prefer to show clients how to buy in neighborhoods where there are higher owner ratios, where flips raise valuations over time, and where there is new construction transitioning neighborhoods. This way they get higher rents over time, can apply BRRR and capture appreciation - win win!

    They need a decent attorney whom would take this as a class action suit, and a better property manager to take on the 200+ properties that are left.

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