Kaylee McMahon began buying apartments and selling shares of the ownership and cash flow to investors four years ago. She wanted to empower women and diversify the male-dominated commercial real estate industry.
“I’m changing that dynamic,” McMahon told Dallas Express. “That’s my biggest focus. All of our operating teams, my fund, and everything that I do focus on empowering women to lead the deals, to be the construction managers, to make the decisions, to empower other women, and to look at that as the norm instead of shying away from this industry.”
Although she currently lives in Dallas, McMahon is originally from Portland, Oregon, and is the founder of The Apartment Queen, which she characterizes on her website as the number-one female-focused multi-family investment firm.
“I have a brokerage license and I come from the retail side where women sell nice houses,” McMahon said in an interview. “We kill it over on that side of the industry but it’s very lopsided when you get over into commercial real estate. I decided to play with the big boys knowing it would be hard.”
But ‘hard’ is an understatement. McMahon found herself embroiled in litigation that began after a business partnership with another woman went sour. A mentor referred her to the Lynn Pinker Hurst & Schwegmann law firm, where McMahon said Attorney Michael Hurst accepted her case.
“I was happy to have someone who believed they could handle this and get me out of it,” she said. “When I reviewed the letter of engagement, I totally overlooked the fact that I would be forced into arbitration if there was a fee dispute. I took a bad settlement and I never disputed the fees to this day because I’ve actually never seen final invoices. I have only received a couple of draft invoices.”
By the time the lawsuit was settled, McMahon alleges that she had paid the law firm $35,000 and was set to receive $40,000 as negotiated but never received the funds. In response, McMahon filed a complaint with the State Bar of Texas Bar.
“Michael Hurst, who’s had his junior attorney work with me on a case for a little less than a year, got a settlement on our case,” McMahon wrote to the Office of the Chief Disciplinary Counsel. “He’s withholding funds and calling my friends. I asked for him to provide past-due invoices twice after he did not send funds. When I received invoices after a 3rd email, there isn’t a final amount. My settlement is separate and apart from any fees owed. He’s hinted through calling my friends [that] I owe far more than my settlement. There was zero justification that this would be the case. This is abusive power.”
Her complaint is currently pending with a Summary Disposition Panel, a grievance committee comprised of volunteer lawyers and public members.
Looking back, McMahon said she regrets not doing more research before choosing a law firm.
“I wish I would have found all the Google reviews that are out there. There are two that are extremely negative that they can’t take down. One is talking about what they experienced through this firm. Essentially, when you sign a settlement agreement, the whole thing is rigged,” McMahon alleges.
Hurst, who is a past elected president of the Dallas Bar Association, declined to comment.
