All Forum Posts by: Hares Najand

Oh wow.  What things did you have to outsource being out of state? Or are you managing every aspect on your own?

Hi BP community,

We currently own several Section 8 rental homes in Chicago, Markham, and Country Club Hills, IL, all managed by the same property management company. While they are good communicators, experienced with Section 8, and their software for rent collection is solid, we're increasingly concerned about a few key issues and would appreciate input from anyone with similar experiences:

Turnover Fees Transparency:

The turnover fees seem high, and despite our requests for itemized breakdowns and man-hours to justify these costs, we feel they may be taking advantage of our out-of-state position. All turnovers are handled "in-house," with no outside bids or quotes to ensure market rate repairs. Is this common, or are we overpaying due to lack of competition?

Move-In Fees vs. Security Deposits:

The property management charges tenants a "move-in" fee rather than a security deposit. We feel this doesn’t protect us from tenant damage (e.g., stolen smoke detectors, fire extinguishers) or cover costs for anything beyond normal wear and tear. Their rationale is based on Illinois law, where security deposits must be held in a separate account and accrue interest if held over 6 months. They also claim move-in fees avoid court disputes. We’re willing to manage a separate account and deal with potential disputes if it means better protection. How do others handle this situation?

Delayed Advertising for Vacancies:

They don’t list properties for rent until the tenant vacates, which prolongs our vacancy periods. Has anyone dealt with this issue, and how did you push for earlier advertising?

Overall, we’re not ready to move to a new property management company without hearing from others. Have any of you had experience with similar property management challenges in the Chicago area? Looking forward to hearing your thoughts!

Thanks in advance for any advice!

The builder is in breach of our agreement. I signed a contract stipulating that the full funds, with interest, were to be returned to me by October 1, 2024. Despite this, they have failed to respond adequately. Audrey Wanich, their attorney, drafted the contract, yet I’m now facing a lack of transparency regarding when I will receive my deposit back.

Thanks for your reply.  I ended up just getting a second hot water tank & sub-metering.  Was more than I wanted to spend but is slowly paying for itself not having to pay the utilities for the units.  Thanks! 

Hello, I'm purchasing a single family home from family without an agent & want to make sure the Purchase & Sales Agreement I drafted is adequate.  My main concern is regarding cost-basis and future capital gains tax when I ultimately sale the property.  I'm ready to get my draft notarized but thought it would be best to find a real estate attorney to review first.  Not looking to spend too much money as this deal is amongst trusted family members and I just want to make the transaction legitimate. Any affordable referrals would be appreciated.  Thank you

Wagner, is Werner Mercado family?

I've repeatedly sent inquiries demanding transparency and I receive the same response each time from you & Rayza. It's evasive, it frustrates and simply is not satisfactory. Your lack of action raises concerns about a conflict of interest and you’re neglecting your fiduciary duty.

Given your closeness to Werner, I demand a direct call with him. Rayza, Werner’s assistant, has proven insufficient. Getting a simple email reply from her is like pulling teeth, and despite my persistent efforts, she's dodged every attempt at a call.

Quote from @Marelyn Valdes:

Maybe all of the investors should file a complaint with the Florida Attorney General - https://www.myfloridalegal.com/consumer-protection/consumer-...

If we don’t get some transparency soon, I will definitely seek an investigation into Werner Mercado, WD invest, Wagner Nalasco & affiliates.  We have been too patient.  Thank you for this suggestion.  The Florida Attorney General should know about this. 

How much is Werner Mercado selling our lots for if Highland and Century Communities are selling the homes for $300k? Where is our cut? What happened to our “built in equity” touted by Wagner, who sold us on a purchase price of $225k? How much will Highland & Century Communities increase prices on us for when they invoke the escalation clause by staying in the deal? If you want out of the deal, 6% interest isn’t even enough to cover inflation, we deserve way more interest for use of our funds and the profits Werner Mercado is making at our expense.  We need answers!

I did get confirmation from Barbosa Legal (escrow company) that our funds were dispersed to the seller, who is Werner Mercado based on our contracts. 

Wagner,

You admit that you are related to someone in WD Invest.  Can you clarify?  Are you related to Werner Mercado, the owner of WD Invest, who signed our contracts and who is in Breach of Contract?  Is he not your half brother?  You claim you are the broker and nothing more.  You initially were transparent & quick to promote these homes as part of your own personal investments, creating trust and confidence among your clients, despite the now clear conflict of interest. Now, when your clients need you the most to advocate for us & give us confidence & direction, there is no legitimate transparency. You tell us to talk to the builder and on paper you make it sound as though you are facilitating this, yet my multiple attempts in reaching out to the WD Invest with you cc’d on those communications, have been unanswered.  You are related to them but can not facilitate a meaningful call or email communication with Werner Mercado for your investors? Hard to believe you are doing everything you can unless you too are not amicable with your own family to actually facilitate the transparency we demand. Prove to us by your actions, not your words.  Until then, all investors can assume is that Werner Mercado is hiding behind you and his attorneys.