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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  • Investor · Chicago, IL · Member since 2014 · 5 posts · 2 votes
    9y

    Just a word of warning, from someone that's been there... Beware of Lett, They give a great appearance in the beginning, but then ran your business to the ground.. Check out other posts about Letts..

    Good Luck

  • San Francisco, CA · Member since 2016 · 20 posts · 8 votes
    9y

    Has anyone received a payment on the 5th like promised?  Looking. To understand if they are paying out anyone?

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

    Ummm from my understanding a court appointed reciever has taken over

  • San Francisco, CA · Member since 2016 · 20 posts · 8 votes
    9y

    Court appointed receiver is involved with the property management side of their business?  I.E. Oak Park reality.

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

    I thought ur talking about Mack industies 

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

    Based on the link that @David Ho provided, I don't think we will see a penny of the money that Mack owes us.  I hope the IL's State Attorney General would seek criminal charges.  The article already said that fraud is involved.

  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    9y
    Jim Mack , any comments on owners not getting paid? Or on the thousands of dollars I will need to get my properties back in shape after your terrible management? I'm sure if Mack/Oak Park Realty are reputable companies then you will cover those costs right? I also noticed the account of @John Gutman was closed at some point.
  • Wholesaler · Denver, CO · Member since 2013 · 126 posts · 39 votes
    9y

    I just received this email from Kathy Fettke at Real Worth Network (the co I bought my Mack properties thru)

    URGENT! News on MACK

    It has come to our attention that MACK may not recover from their bankruptcy. Therefore, it is of the utmost importance that you cancel your property management agreement with them and obtain new property management immediately. We recommend you do this before the next rents are collected.

    We received this email from one of our members:

    "I am working with the Law Firm of Goldstein & McClintock LLLP whom have been leading the charge for the appointment of a Chapter 11 Trustee. Mr. Brian J. Jackiw, Esq. has been involved in all the court hearings regarding Mack Industries, and in particular that of Oak Park Ave Realty, Ltd whom handle the properties that we have purchased. I know myself and a few other property owners that have purchased rentals from Mack through Real Wealth Network are part of this action since we have not seen any owner disbursement since January 2017. Goldstein and McClintock LLLP are looking for additional property owners that have been affected to contact them in order to become part of this owner class. If you know of others that have been affected, you might want to pass along the contact information. If anything, to get a better understanding of what is happening.”

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

    My other post was removed so I cut the second part out.  

    @Jim Tiernan I am seeing people we currently manage other assets for in Chicago, or other out of state turnkey investors we have come to grow a relationship with, deeply affected by this Mack issue and I have shared this thread with all of them. Thank you for posting. 

  • West Hollywood, CA · Member since 2016 · 123 posts · 43 votes
    9y

    @Mark Ainley What was the second part of your reply? I'm always curious as to why some post are removed. 

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

    @Donnie N. It was removed for self promotion. 

  • West Hollywood, CA · Member since 2016 · 123 posts · 43 votes
    9y

    @Mark Ainley ah. Ok. Thanks

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

    This sums it up......

    http://chicago.cbslocal.com/2017/05/11/2-investigators-company-accused-of-dodging-600k-in-property-taxes/

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

    @Jim Tiernan,

    I've purchased some properties with MACK for the past year and experiencing the same issue with MACK now. I'm looking for good property management company to switch to. Could you provide more info regarding your research or the new company you've switched to?

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

    @Jie Li, I hired @Mike Fisher on May 1st. So far so good!

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

    @Jim Tiernan, Thanks!

  • 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 and would like to share with any investor that has been directly affected by recent events. The Bankruptcy filing and other recent developments have been 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 goal here is to share some real time date and info as to prepare investors to make smart and tough decisions as to mitigate losses and move forward.  There is currently tons of information that is being circulated and not all of it is factual.   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! Anyone looking to chat offline please message me.

  • Investor · San Jose, CA · Member since 2017 · 343 posts · 102 votes
    9y

    @Jose Flores - Dropped PM, would love to get your insight.

    Thanks
    Vivek

  • Professional · Hoffman Estates, IL · Member since 2015 · 9 posts · 3 votes
    9y

    @Vivek Khoche message me your contact info and we can chat

  • Davis, CA · Member since 2017 · 6 posts · 0 votes
    9y

    Glad I stumbled on this thread.  I have two properties with Mack.

    @Jose Flores sent you a PM, would appreciate advice on what to do next

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

    Are you guys aware of a lawsuit put together by some Chicago attorneys? trying to place a entity of Mack into BK?

  • San Francisco, CA · Member since 2016 · 20 posts · 8 votes
    9y

    @Matthew Chan PM me with your email  and I would be happy to include you in the group on investors which are looking to force a bankruptcy of Oak Park Reality.  

    Also, I do not recommend anyone do business with @jose flores or any other former Mack employee.  I have now found significant numbers of flat out lies told to me through the sales process which now is costing me many thousands of dollars.  Never-mind the fraudulent property management.  

    Wish everyone the best of luck.

    Ben

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

    @Ben Dunning I was the person instrumental with getting that suit moving forward. You can find my name in the emails. I just want to make sure others are aware of what is going on out here

  • San Francisco, CA · Member since 2016 · 20 posts · 8 votes
    9y

    @David Ho  I am very grateful!  I owe you drink next time I am in town!

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

    How about reaching out to McClintock/Jackiw  before you transact out here again?

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