MACK victim -Looking for a Property Management company in Chicago

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MACK victim -Looking for a Property Management company in Chicago

Ivan Lai
Investor · Hacienda Heights, CA · Member since 2015 · 31 posts · 42 votes

Hello all, I have two properties in Chicago area, bought them through MACK and let them manage my properties.  I'm one of the MACK victims, they haven't paid me a penny since March and I was slow to learn about their bankruptcy and legal troubles.  I'm looking to move to a new property management company asap, can someone recommend a good property management company in Chicago area?  I have one in Chicago proper and one in Matteson.  

Also, I have an appointment set up to talk to my lawyer about MACK, may want to start a class action lawsuit for their stealing of investors rent payment.  I believe it's illegal for them to take rent payment and even the bankruptcy doesn't allow them to take rent payment and not forward it to investors.  For the legal experts out there, can you please let me know if this is true?  Anyone interested in participating in a class action lawsuit?  Is there one started already?

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Mark AinleyBusiness Member
Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
9y

@Ivan Lai Southside of Chicago and south suburbs is tough management so make sure you are asking the right questions to break thru sexy fronts management companies put up. 

[email protected]630-781-6744Podcast Guest on Show #72
GC Realty & Development LLC4.61090 Reviews
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  • Stephen Haynes
    Rocklin, CA · Member since 2015 · 207 posts · 66 votes
    9y

    I like Real Property Management. Disclaimer I work for a RPM franchise in Sacramento CA. 

    I can't believe what MACK has done to its customers I hope all of you investors are able to get your money back that they owe you plus interest on that money.

    Best Regards,

    Stephen

    0Reply
  • Ivan Lai
    OP
    Investor · Hacienda Heights, CA · Member since 2015 · 31 posts · 42 votes
    9y

    Thanks Stephen.  I've dealt with RPM before, my concern is that the quality of service is highly dependent on the franchise owner.  I worked with RPM for my California properties, it started out great, then the owner sold the franchise to an out-of-state buyer who tried to manage it remotely, and it just went downhill from there.  Without the owner physically there, the employees started doing the bare minimum and drove away several good tenants before I fired them.  Do you know the RPM owners in Chicago area personally?  Thanks.

    0Reply
  • Rick S.
    Fort Collins, CO · Member since 2014 · 397 posts · 161 votes
    9y

    @Ivan Lai Sorry to hear about your issue with Mack as I found these two threads as it may help you connect with some other Mack customers:

    https://www.biggerpockets.com/forums/92/topics/323...

    https://www.biggerpockets.com/forums/92/topics/217...

    Sorry if you already saw these two.  

    0Reply
  • Stephen Haynes
    Rocklin, CA · Member since 2015 · 207 posts · 66 votes
    9y

    I know a few of the Chicago area owners personally and the few I know are great. But I do not know every RPM owner or how they run there businesses. PM me and I will give you there contact info. 

    0Reply
  • Alex Bok
    Real Estate Agent · Chicago, IL · Member since 2016 · 283 posts · 71 votes
    9y

    Terrible to hear there are several turn key companies in the Chicagoland area and not all run like they do. I was wondering why I had seen a slow down on their purchases and this explains why

    0Reply
  • Ivan Lai
    OP
    Investor · Hacienda Heights, CA · Member since 2015 · 31 posts · 42 votes
    9y

    Thanks Rick, I had not seen one of the threads.  Interesting info.  

    Anyone with good experiences with a local property management company?  Anyone has experience with CAB Properties?

    0Reply
  • Ivan Lai
    OP
    Investor · Hacienda Heights, CA · Member since 2015 · 31 posts · 42 votes
    9y

    Also, anyone worked with Renters Warehouse in Chicago?

    0Reply
  • Mark AinleyBusiness Member
    Property Manager · Roselle, IL (Chicago Suburb) · Member since 2013 · 2k+ posts · 1k+ votes
    9y

    @Ivan Lai Southside of Chicago and south suburbs is tough management so make sure you are asking the right questions to break thru sexy fronts management companies put up. 

    [email protected]630-781-6744Podcast Guest on Show #72
    GC Realty & Development LLC4.61090 Reviews
    WebsiteView Page
    4Reply
  • Joel OwensBusiness Member
    Moderator
    Real Estate Broker · Canton, GA · Member since 2010 · 15k+ posts · 11k+ votes
    9y

    Hopefully when you bought rentals you budgeted for 12 to 14% property management in rougher areas.

    It takes a special property management company to focus on and run those tougher areas and they usually want extra yield for that.

    A common mistake heard on the forums here when purchasing is investors will put in 8 or 10% for management in a rougher area. They hope they will find a great management company at a low fee. The great management companies that charge 8 to 10% tend to manage properties in more affluent areas where the rents per door are much higher and you have much less tenant issues. So they make more off of higher rents with less headaches even though the overall percentage of the fee charged is less.

    Example:

    70,000 property for 800 rent in rougher area

    Management at 12% = 96 a month X 12 = 1,152 ( big headache with intensive management).

    Example:

    Affluent area with 2,500 a month rent for a property X .07 = 175 a month X 12 = 2,100

    Better area, double the money, less headache generally.

    The friends I know that do property management work in other states you have to do a ton of volume to make any money. After expenses there is simply not much money in the PM business on the residential side.

    I know another colleague on the commercial side that manages millions in retail per sq ft. with his company. He basically takes on more properties to keep his internal staff working while he develops more properties. 

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  • Jie Li
    Fremont, CA · Member since 2015 · 50 posts · 7 votes
    9y

    I also have properties with MACK and not get paid. I'm looking for good PM company to switch to also. 

    Some of the PM company I'm looking into are Renters Warehouse ( Real Wealth Network referral), Cap Properties, and Touchstone  Group. 

    Anybody familiar with these PM companies? Renters Warehouse has bad online reviews( not sure whether it is close related) in general but declared their vacancy rate is <1% and 90 days delinquency is 0.5%. 

    0Reply
  • Ivan Lai
    OP
    Investor · Hacienda Heights, CA · Member since 2015 · 31 posts · 42 votes
    9y

    Hi all, thanks for your help.  I decided to take a chance with CAB Properties.  Wish me luck!

    Also, I'm involved in a joint legal action with other investors to try to get our money back, let me know if you're interested in joining us.

    0Reply
  • Jose Flores
    Professional · Hoffman Estates, IL · Member since 2015 · 9 posts · 3 votes
    9y

    Hello everyone, as a former Mack Companies employee, I do have some insight that I am happy to share offline with investors that have been directly impacted. What has unfolded in recent events is extremely unfortunate for employees, the community of tenants, and especially the investors all of which had no control or responsibility for the larger issues at play that created this mess! My intention is to provide information as to allow investors to make wise decisions to mitigate losses and move in the right direction. I know there is a ton of info circulating that may not all be true. I do want to emphasize that investors that are still managed by MACK have options and I would like to help navigate the transition out and make it as painless as possible by providing real time info. Again, my sincerest apologies for to all parties impacted directly or indirectly, anyone who knows me personally can attest that I am passionate about RE and my clients and I too am infuriated at what has come to light! Best wishes to all and anyone interested in talking more, please message me!

    0Reply
  • David Ho
    Investor · Frankfort, IL · Member since 2014 · 55 posts · 15 votes
    9y

    @Jose Flores you are a former employee of Mack as of when?

    0Reply
  • Jose Flores
    Professional · Hoffman Estates, IL · Member since 2015 · 9 posts · 3 votes
    9y

    This month

    0Reply
  • Paul Lo
    Diamond Bar, CA · Member since 2015 · 1 post · 0 votes
    9y

    @Ivan Lai thanks for sharing! how do we join the group to take legal actions against MACK?

    0Reply
  • Ivan Lai
    OP
    Investor · Hacienda Heights, CA · Member since 2015 · 31 posts · 42 votes
    9y

    @Paul Lo, I'll send you some info through private messaging.  

    0Reply
  • Shaun Patterson
    Property Manager · West Palm Beach, FL · Member since 2012 · 296 posts · 143 votes
    9y

    Its always hard when things like this happen. Hopefully you can get the rentals back on track. 

    0Reply
  • Joe H.
    Developer · Chicago, IL · Member since 2016 · 82 posts · 88 votes
    9y

    I have a property management company, Ideal Property Management. I just hired three additional permanent employees and am looking to grow. There should never be a situation where a manager is taking your rents to cover their losses. That seems like a serious, probably criminal, violation of the law. PM me if you are interested in meeting or just want to chat further. 

    0Reply
  • Jason MarcordesPro Member
    Investor · Chicago, IL · Member since 2015 · 154 posts · 91 votes
    9y

    Hi Ivan,  

    I would love to speak with you in regards to your properties.  My company Landmark Realty handles a large portfolio of rentals all throughout the Chicagoland area. Feel free to give me a call at the information listed below in my signature or shoot me a PM/Email so I can personally work with you on getting your properties situated.

    I Look forward to speaking with you,

    Jason

    0Reply
  • Noel Christopher
    Rental Property Investor · Steamboat Springs, CO · Member since 2017 · 4 posts · 1 vote
    9y

    Hello, everyone.

    I work with Renters Warehouse, we have taken on approximately 150 homes from Mack investors. We would love the business from anyone else as well.  We manage a little over 500 homes in Chicago and over 19,000 nationally serving 13,000 investors. We are a flat fee model and very good at what we do. We are able to scale quickly because we work on a centralized model which allows us to be very efficient and charge lower fees than most PM companies.

    If anyone has specific questions, please feel free to reach out. Jie Li mentioned some bad reviews. Up until recently, we were a franchise model.  Each franchise operated independently. So the level of service could vary widely.  We have since rolled up many of our franchises into a national property management company. 

    We are working closely with Mack to transition over a lot of the investors. It is an unfortunate situation for sure.  Please reach out to me with any questions or advice, regardless of what property management company you go with. 

    0Reply
  • Adam Smit
    Investor · Wilmington , IL · Member since 2013 · 10 posts · 1 vote
    9y
    I am an investor in the south side and have spoke with some other MACK investors who are using ABC Turnkey Properties. They are located in the south suburbs (Hazel crest). I have two properties that are managed through them and have had good results. I highly recommend them. Contact the owner Alberto Fernandez (847)(910)(4143)or email him at alberto @chicagoturnkeyproperties.com. I wish you all the best!
    0Reply
  • Dell Wade
    Homewood, IL · Member since 2013 · 1 post · 0 votes
    7y

    Hello Ivan,

    My name is Dell Wade, and I am sorry to hear about your plight. Ivan I am also an investor who live in the Chicagoland area; and would like to speak with you regarding some possible solutions.   

    Please post your interest.

    Thanks.

    0Reply
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