Anybody else having issues with Mack Companies in Chicago?

Anybody else having issues with Mack Companies in Chicago?

Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes

I have a turn-key rental with Mack Companies in suburban Chicago that has been vacant for FOUR MONTHS!

A small sample of my issues with the management:

Finding out a tenant has moved out weeks after the fact. When the monthly statement came it showed a big fat 0 for rent. No communication. How hard is it to send a one sentence email that the tenant moved out?

Rent lowered by hundreds of dollars on a re-lease without a discussion or heads up.

Two months into vacancy I still don't have a tenant due to things like "it's a busy time of year". Really? You didn't factor in summer as a busy time of year in Chicago? Like this is different than any other summer? 

Two months into vacancy I'm then told the unit needs a refresh. Really? It took two months to figure that out? Shouldn't I have a list of needed repairs within a week of tenant moving out? I'm told the reason for the delay is the property "fell in a crack". In other words mis-managed.

Three months into vacancy I'm told "The timeliness of placing a tenant is affected by the change in market demand compounded with the specific location and property style. Well I'm pretty sure the location and property style hasn't changed.

Getting nowhere with the manager, At 3 1/2 months vacant I ask for a higher up manager who says my unit "has had a series of bad luck and unfortunately that may be the case with some real estate - remember, it is an investment not an annuity." Also he is "hoping to have a solution by Friday." I'm not holding my breath.

6 grand in lost rent and counting....

I've lost all faith in Mack Companies, buyer beware.

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Rental Property Investor · Manteno, IL · Member since 2009 · 2k+ posts · 2k+ votes
10y

@Account Closed  Did you read the initial post by this investor? I don't understand how anyone would come on to BP and suggest the comments that his PM said to him or the results he got were in the least bit acceptable.  

Bottom line is that in this market there is no way a house should be sitting vacant for four and a half months. If you have 250 employees and can't manage them all, then maybe you should cut back on your employees and find a number that you can manage. 

But suggesting there are a lot of moving parts when a company like yours has over 250 employees is awful. If you don't have something in your system that catches a vacancy before it hits 4 months, then something is wrong with your system.

And your response that you are the biggest company and longest tenured company means NOTHING in terms of whether you're providing good service today or not. Maybe you just happen to have the best sales people.

What in the world does the housing crash have to do with that investor's 4.5 month vacancy? Or lowering the rent without getting his approval? Is that the type of contracts you guys do? You have the ability to change the rent to any amount without an approval and at an time you choose? Jeepers....... Not exactly investor friendly if you do.... 

Ultimately, thats what you should have addressed on your post. Either dispute the claims he made in terms of his results or apologize for your company's awful service.  Don't make lame excuses and tell us how big you are and how many employees you have and how the crash affected people. That has absolutely nothing to do with the service you've been paid to provide.

Maybe you're used to selling sheep the "spiel". But when you come on here, you're going to get called out for nonsense like that.  To me, you shouldn't have said a thing on here unless it was to dispute his initial claims OR to apologize and make it right. But you did neither.  At the end of the day, that is what speaks volumes to me..... 

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  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    10y

    Thanks @Ryan Duffy, it sounds like our experiences are similar.

  • Frankfort, IL · Member since 2016 · 5 posts · 0 votes
    9y

    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.

  • Lansing, IL · Member since 2017 · 1 post · 0 votes
    9y

    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...

  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    9y

    It looks like Mack filed for Bankruptcy: Tinley Park based-buyer of distressed homes files for Chapter 11 bankruptcy

    http://www.chicagotribune.com/business/ct-mack-ind...

  • Tinley Park, IL · Member since 2016 · 7 posts · 2 votes
    9y

    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,

    Jim Mack

  • Professional · Glenview, IL · Member since 2015 · 114 posts · 65 votes
    9y

    I heard from one of my sources they filed for bankruptcy but i don't have confirmation yet.  Just an FYI.  

  • Chicago, IL · Member since 2014 · 1 post · 0 votes
    9y

    Denver Wholesaler, please call John Frazier for information regarding the Mack property. 

  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    9y

    @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?

  • Investor · San Jose, CA · Member since 2016 · 26 posts · 9 votes
    9y

    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.

  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    9y
  • Investor · Cambridge, MA · Member since 2014 · 92 posts · 87 votes
    9y

    Edit: disregard. Tried to delete, but there seems not to be an option.

  • Investor · San Jose, CA · Member since 2016 · 26 posts · 9 votes
    9y

    @Jim Tiernan... Send me a PM.  I have an update for you.

  • Multifamily Syndicator · Greater Los Angeles Area · Member since 2015 · 399 posts · 261 votes
    9y

    Hi everyone,

    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.

  • Real Estate Investor · Reno, NV · Member since 2012 · 240 posts · 45 votes
    9y

    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...

  • Investor · Frankfort, IL · Member since 2014 · 55 posts · 15 votes
    9y

    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. 

  • Investor · Frankfort, IL · Member since 2014 · 55 posts · 15 votes
    9y
  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    9y

    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?

  • Investor · Chicago, IL · Member since 2008 · 8 posts · 1 vote
    9y
    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.
  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    9y

    I went with cabpropertiesllc dot com slash property-management

    Talk to Jill

  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    9y

    FYI, it sounds like they have taken on a bunch of people who are jumping ship from Mack

  • Rental Property Investor · Frankfort, IL · Member since 2014 · 24 posts · 3 votes
    9y

    @Jim Tiernan I have been working with CAB Properties since January 2016 on turnkey/management and have had great success. I am sure you will have great success as well   Hopefully CAB can turn your operations around and get you back on the winning side. 

  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    9y

    Thanks @Kevin McCann, they do seem to be on top of things. 

  • Rental Property Investor · Frankfort, IL · Member since 2014 · 24 posts · 3 votes
    9y

    I have one of their turnkeys that I put under  under contract this week. I think one of there strong arms is tenant placement. Which is where you make your money!! 

  • Investor · San Jose, CA · Member since 2015 · 61 posts · 13 votes
    9y

    I heard from a friend that Mack is filing for bankruptcy. 

  • Real Estate Investor · Reno, NV · Member since 2012 · 240 posts · 45 votes
    9y

    Another suggestion on Property Management is Letts Property Management. I moved my properties from Mack to them just prior to the first of May to advoid loosing another months worth of rent.  They were able to handle this transfer without any problems.  So far so good

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