ABC Capital not transferring rent (Philadelphia, PA)

27 Replies

I'm asking for any advice on an issue with ABC Capital in Philadelphia, PA. I am dealing with four properties with them as I have financial power of attorney for my ill father, who owns them (so this is all quite new to me). They haven't paid rent to our account for 5 months this year and keep saying they will address it. They did not provide 1099 tax forms for some of our properties either. Now they simply do not answer emails or calls - I have emailed and called our property manager, the CEO - Jay Walsh, and a new company they seem to be working with called Anchor Management many times but have gotten no resolution.

I would like to recover the rents that we are owed and switch to a different property management company that I have found. Can anyone provide advice on how to do this? I have talked to a real estate lawyer but am not sure whether it makes sense to push up the tension that way. But I don't see another way to resolve it at this point.


Thanks so much for any advice.

I’ve never dealt with this situation but I agree to step it up and involve a lawyer immediately Hopefully can recoup your money faster and move on

Probably talk to a lawyer, find a new PM and likely assume you’ll never see that rent money, without spending a lot on attorney fees.

Good luck

Originally posted by @Catherine Stevenson :

I'm asking for any advice on an issue with ABC Capital in Philadelphia, PA. I am dealing with four properties with them as I have financial power of attorney for my ill father, who owns them (so this is all quite new to me). They haven't paid rent to our account for 5 months this year and keep saying they will address it. They did not provide 1099 tax forms for some of our properties either. Now they simply do not answer emails or calls - I have emailed and called our property manager, the CEO - Jay Walsh, and a new company they seem to be working with called Anchor Management many times but have gotten no resolution.

I would like to recover the rents that we are owed and switch to a different property management company that I have found. Can anyone provide advice on how to do this? I have talked to a real estate lawyer but am not sure whether it makes sense to push up the tension that way. But I don't see another way to resolve it at this point.


Thanks so much for any advice

I've been hearing some negative comments about that company. Maybe you guys that had suffered from them should act together. Here is the recent post

https://www.biggerpockets.com/forums/92/topics/566319-abc-capital-philly-invest-review-terrible-experience

First and foremost get a lawyer to review and take action in this situation.  That lack of response tells you something less transparent is happening.  There is no excuse for a PM not to transfer if they are collecting rents.

Usually on these threads when it’s something like what’s happening for Morris or some uncommunicative PM or tenant issues (not paying). The answers are usually the same:

1. Get an attorney

2. Evict (if it’s a non paying tenant)

Don’t over complicate things. Don’t let your feelings into the picture. Just keep it business.

An update - Jay Walsh has provided an accounting for two out of four houses although I had to recalculate parts of it that were incorrect myself. There was a good amount of rent that had not been transferred and also a large amount which the tenants never paid. Jay has agreed to pay what he has collected but says that the uncollected rent is the responsibility of the new management company. Just wanted to check if others would find this resolution satisfactory. I am concerned about this new property management company (Anchor) that ABC has transferred to as they do not respond to emails or calls.

Any input would be very helpful. Thanks!

@Catherine Stevenson I have previously dealt with unresponsive property management and contractors and have found that it is better off going your separate ways as soon as possible no matter what the loss, it is often better to cut ties right away.  I am not familiar with the current company you are using or any agreements you have with them, but typically if the tenants do not pay you do not get paid.  If you are not satisfied there are plenty of other property management companies that would love to serve you as a client.  Feel free to reach out through PM and I could refer you. 

There is no such thing as being unresponsive as a property manager. That's really not an option. I always responds to a text or an email immediately.

But if I'm in the field and not in position to take notes or know cell service is reliable I don't answer; but a call back is always quick.

I'm really disappointed by the difficulties you are having.

I am very interested to see how this goes. I invested with ABC Capital last year on two properties, and it has been an absolute nightmare! DO NOT WORK WITH ABC CAPITAL INVESTMENTS. They overpromise and underdeliver on scope of work, tenant placement, and management communication. I purchased the properties in August 2017, was guaranteed to have it rented within 6 months, and I have yet to receive any payment from them - almost a year later. I went with them because I have zero time to put into real estate due to working on my business. Also, they were referred by Maverick Investor Group, and they have also done absolutely nothing to hold ABC accountable - and have continued to promote them despite my best efforts to recruit their help. So much for turnkey investing. DO NOT WORK WITH ABC CAPITAL INVESTMENTS OR MAVERICK INVESTOR GROUP. They do not help you other than help lighten your wallet of your money, then ditch you. Hopefully others have had better experiences.

I have pestered ABC with multiple emails and phone calls - most of which go unanswered. When they do finally respond, it is only partial answers. One of my two properties has been transferred to Anchor as well, and I can't get any response from them either. I'm considering legal action myself once I get a spare moment, this is absolutely ridiculous. I am very interested to hear how it goes for you, because I have had no luck myself. Good luck, and please keep us all posted. 

If anyone knows any good Property Managers in Philadelphia or Baltimore, please PM me and let me know. 

Rent are as good as gone. (Don't even get me started on erentpayment.com and the money they took from me)

Move forward. 

FIRE the old company (ABC) immediately and take control of where those rent check go to. Hire a highly rated realtor in the area if you cannot do this work yourself.

***Never ever let a third party "hold" or process your money. Rents should always be deposited into your business account directly.    

The most leeway I give property management companies is probably 24-48 hours to respond (assuming during normal business hours during the week). If they can’t meet this you gotta find someone else.

Probably about 50 percent of the time I get a response in under an hour

Yeah, Jay is an ***. Kinda funny watching how different his tone is on BP than it is in the emails you receive from him when he thinks he's the one in control of the situation.

I messaged you directly, @Catherine Stevenson , but my wife and I have a great local attorney who is now familiar w/ his shenanigans. If anyone else needs his info, please PM me. I'd certainly like to help spread a little more pain back his way. He gives in once you push hard enough, and he's aware you've lawyered up.

Also, never EVER use Maverick Investments https://maverickinvestorgroup.com/ We'd heard ABC might be a challenge, and so we chose Maverick because they said they'd have our back. Phil at Maverick has been utterly useless. At one point, Jay told Phil to just stop contacting him on our behalf. He did, and from there out just pushed back on us instead. We asked Matt Bolles at Maverick to help, and got absolutely nothing from him, either.

Good luck!

@jeffdeville - thanks for the information. I may have to go that route. Jay Walsh has paid some of the back money but not all of it. He says the rest is "on the way" but it has been for over a week. If I have not gotten it from him this week, I will move forward with legal action.

Good news is that I'ved found a new property management company that seems to be working well!

Best,
Catherine

Yeah - I have a handful of properties with ABC Capital and Jay Walsh in Philadelphia. For some I got January rents in March, for others I got February payments in May or June! That's with a lot of emails and texting ABC and Jay. 

I'm still waiting for April Payments (in August!). You have to really keep on top of them or it looks like they are not paying. It's a terrible experience.

I'm open to grouping together and using a lawyer between us to share the legal costs if we want to set this all right.

Disclosure: Investor

I am absolutely shocked. This is the 3rd or so message board that I have found with similar claims with respect to ABC Capital. I have been an investor since 2015 and began noticing delays with rent last year. A few months went by where I received no rent. Upon discovering the issue I reached out to their investor line and they remedied the situation within a few weeks.

Later in the year I received a letter indicating that they transferred responsibility of property management to Anchor Realty although I had issued no such directive. Prior to the transfer, I was due ~$1,700 and had to go back and perform an intensive review of the financial statements they had issued. I performed considerable diligence on this and forwarded my findings to the investor relations dept at ABC. Upon internal review two of their employees agreed with my findings and indicated that they would reach out to Jay to fix the situation.

I have been in contact with him for multiple weeks now. He was initially responsive and I tried to be understanding as I realized he was on the road a lot building his business. I would periodically touch base with him but he stopped responding to me. I have been as nice, professional and respectful as possible throughout this situation as when I had initially met him he seemed like a highly motivated stand-up guy. He gave me a personal tour of his facilities and personally introduced me to his entire team. As I met them, I discovered them to be driven and helpful individuals. We connected over our passion for real estate and self development and I could see his drive and motivation.

I am supremely disappointed to see that he has since changed. I feel for your situation and wish you the best. I do not know what to think.

Nathan J. I think what you suggested is a great idea  as it would be cheaper for everyone as the attorney would not have to learn about how this person or Company tries to blow smoke. if you decide to go that route please let us know

I've had a number of people contact me asking for an update on the various payments owed to.  Its easier to respond here. I will give an update shortly...

@Dave Ripka yes I've had some people contact me also on the same question. PM me...

I've heard a lot of people are having issues with their properties with ABC and I'm sorry to hear that. It's truly an unfortunate circumstance, but if anyone is interested in letting go their difficult assets, feel free to DM me. We've purchased some properties back from unhappy ABC clients (all cash offers) and would be happy to help out others as well.