Mandy McAllister
Mandy McAllister has been a guest on Collecting Keys, the real estate investing podcast hosted by Mike DeHaan, Dan Austin and Dylan Koch.
Diversifying Investments: From Commercial Real Estate to Car Washes w/ Mandy McAllister
Mandy McAllister, CEO of GoBundance Women, walks through how she scaled from a fourplex to roughly 370 units, why she structures small multifamily deals as joint ventures on nonrecourse Fannie Mae agency debt, and how she funded down payments with repeated live-in flips. She also breaks down her recent self-service car wash acquisition, including splitting the purchase into separate building and business transactions and using a 1031 exchange to cover the real estate portion.
Key takeaways
- Agency debt (Fannie Mae/Freddie Mac) has a "black hole" in the middle — small loans and $1M+ loans get good terms, so Mandy partnered with someone who already had agency debt to meet the experience and net worth requirements (net worth must equal or exceed the loan amount, and partners' net worth can be combined).
- Fannie Mae allows a supplemental second loan to pull out upside after an NOI increase; Freddie Mac requires a full cash-out refi. Beginning with the end in mind determines which product you chase.
- Nonrecourse loans with each asset in its own LLC prevent one bad deal from wiping out a portfolio — Mandy hired a coach who lost $50M in 2008 because everything was cross-collateralized.
- Her preferred value-add plays avoid construction risk: RUBS utility billback, pet rent, laundry, and storage income rather than $15,000 kitchens hoping for $500 more rent.