That makes sense. Any information you could pass along once you get far enough outside the guarantee period would be much appreciated. Thanks, Keith.
@Travis Bovy I am going to evaluate what to do with these two properties in the spring. Although I don't know if I could sell them for what I paid in 2013.
Unfortunately, I must agree with most of the reviewers here... I would not recommend doing business with Mack Properties at this point. We bought a place from them in 2012 and things seemed great. The 2 employees we worked through were extremely communicative and trustworthy, but they left (along with many others) and things are much different now. When the house is actually rented, cash flow is strong - about $1500/month for a $115k house (although it's probably only worth about $85k today). However, Mack's service is very poor. It takes them 2-3 weeks to respond to a simple email, on average. Also, they directly employ their maintenance/construction crews so refresh fees seem much higher than industry averages. All of that plus their tenant replacement fees and monthly management costs eat into profits. We've been in the red the majority of the year. When we originally entered into this partnership, we were very optimistic with hopes of buying a bunch of properties from Mack, but they appear to have too many operational issues so our money has gone elsewhere. If there are any current or prospective Mack clients with a different opinion and you are interested in adding a new home to your portfolio (currently rented), contact me! Thanks, -Ryan
Thanks @Ryan Duffy , it sounds like our experiences are similar.
Mack screens the tenants and have really done a good job tightening-up the underwriting. I own enough properties now to understand that tenants can run into situations where they cannot pay. It happens but I know Mack does their best to collect the rents in a friendly manner, but sometimes it gets to a point where more collection strength is needed and sometimes the tenant fails. Mack has a strong legal team Their leasing is excellent and they can turnover a space quickly. I know turnover is part of the business but I know Mack minimizes the time and cost. Turnover cost should be averaged over the life of the lease and entire portfolio. The returns are great especially when you factor in the mortgage and interest are covered by the investment. I could not do it without Mack as my manager.
I know whomever runs owns Mack Companies is low down and their dirty n scammers. They allowed my so called mom to forge my signature on a lease that she signed with them for a house out in Country Club Hills IL. Sending eviction notices with my name attached as if I signed a lease with them. I had to get the police involved and file a police report. I never presented my id nor was I present or entered into an agreement with these people. Whomever Mack is he needs to run his damn business correctly and monitor those he calls himself hiring or allowing others to hire. So DISGUSTED...
It looks like Mack filed for Bankruptcy: Tinley Park based-buyer of distressed homes files for Chapter 11 bankruptcy
As you may have heard or read Mack Industries Ltd, has filed for chapter 11 bankruptcy protection. This is a strategic move to help in the restructuring of corporate debt accumulated as a result of our dealings with a wall street company. This plan will not affect most of our day to day operations and will be significantly better for the long-term viability of the business.
Thank you for the trust in our company,
I heard from one of my sources they filed for bankruptcy but i don't have confirmation yet. Just an FYI.
Denver Wholesaler, please call John Frazier for information regarding the Mack property.
@Jim Mack , Investors like myself have been told month after month after month that investor rent payments have been delayed due to the switch to a new accounting system. When will this system be complete? Every time I ask I hear things like "We are in the midst of a major accounting transition, quiet frankly the transition is taking much longer than we ever anticipated. We are working through it and are going as quick as possible." I am currently waiting an average of 65 days after rent is paid to receive it. When will this be fixed?
Hey Jim... I am having the same issue. It has been getting worse and worse. I get the same company line as well. It is a real concern. I hope to speak with Jim Mack later today. I will post the conversation here.
Thanks @Wilson Cheung
Edit: disregard. Tried to delete, but there seems not to be an option.
@Jim Tiernan... Send me a PM. I have an update for you.
I have a few SFR's in Illinois and work with another PM who has been great. I almost went with Mack but their communication was poor. I've heard some things about them in the past few weeks and would suggest cutting them loose. PM me if you want more info.
I've had 2 properties with Mack and have also been told the story about the new accounting system. In their latest response to my inquire they stated the following:
We will have payment ready by the 1st. Now that the new system is in place we will have the payment ready for 2-17 as well as March statements. Over the next 90 days the statements and payments will significantly improve. By having this months completed by the 1st we have trimmed the full cycle down to 25 days and will continue to shrink it. We truly appreciate your patience and trust in our company. "
We will see if they live into the new commitment..... I have my doubts...
The hearing for Mack was today, Sounds like there is another hearing scheduled for May 4 and the Judge implied a receiver maybe in order. if you are on the unsecured side of the table Pm me.
I switched management companies and was just informed that one of my Mack properties is really in bad shape. Water in the basement, mold in the basement, badly in need of tuck pointing and a new roof. The list goes on and one. Of course the old management company never informed me of any of this.
@Jim Mack , would you care to comment?
Which PM firms have you guys switched to? We need to get away from Mack - should've done so many months ago - they're a joke. Any suggestions are greatly appreciated.
I went with cabpropertiesllc dot com slash property-management
Talk to Jill
FYI, it sounds like they have taken on a bunch of people who are jumping ship from Mack