MB298: The 4 Levels of Financial Freedom – With Mandy McAllister

The more truth you put to any problem, the easier it is to solve. So, if you want to quit your W-2 job, start by doing the math. Because once you know how much you need to cover your living expenses, it’s just a matter of building your multifamily portfolio step by step until you achieve financial freedom.

Mandy McAllister is Managing Member of Good Fortune Capital and Cofounder of the Aspiring Women Achieving More community. After years of chasing a commission, Mandy retired from her 9-to-5 in medical device sales to pursue multifamily investing full time. Today, she’s on a mission to help others define their own path to financial freedom.

On this episode of Financial Freedom with Real Estate Investing, Mandy joins cohost Garrett Lynch and me to share her take on the different levels of financial freedom, describing how she calculated her freedom number—and achieved it 12 months later. She explains why she started small, working her way up to large multifamily properties acquired in joint venture partnerships. Listen in for Mandy's insight on securing debt to match your business plan and learn how to leverage multifamily investing to break free of YOUR golden handcuffs and live a life by design!

Key Takeaways

When Mandy started thinking about quitting her job

• Bought fourplex when son was born as college fund
• Saw potential to retire on cashflow with more deals

Mandy’s take on the different levels of financial freedom

1. Cover minimum living expenses
2. Cover current living expenses
3. Replace income
4. Replace income plus buffer

How Mandy financed her multifamily deals

• Use equity in other properties for deals < 20 units
• Took on partners in JV structures for > 50 units

How to decide whether to start small or go big right away

• Depends on individual goals
• Advantages to going larger

What Mandy looks for in a multifamily deal

• B class asset with quality long-term debt
• Size agnostic (less competition for 50-unit deals)

What Mandy looks for in a joint venture partnership

• Someone on same page who you can trust
• Important to have different strengths

Why Mandy sees long-term debt as the ultimate flexibility

• 15-year loan on recent 53-unit acquisition
• Terms allow for 3 potential exit strategies

What Mandy is doing to ensure consistent deal flow

• Network with young, hungry investors at Meetup
• Potential JVs look for deals that fit her criteria

Where Mandy is looking to invest right now

• Strong growth markets in Midwest
• Drive there and back before dinner

How COVID influenced Mandy’s decision to quit her job

• Did 4 transaction in 3 months with extra time
• Brought in double W-2 income

What Mandy is looking forward to moving forward

• Impact as many lives as possible
• Help others remove golden handcuffs

Connect with Mandy McAllister

Mandy’s Website

Good Fortune Capital

Aspiring Women Achieving More

Mandy on Instagram

Mandy on Facebook

Mandy on YouTube

Mandy on LinkedIn

Resources

Get Tickets for Deal Maker Bootcamp

Learn More About Michael’s Mentoring Program

Join the Nighthawk Equity Investor Club

Rocket Fuel: The One Essential Combination That Will Get You More of What You Want from Your Business by Gino Wickman and Mark C. Winters

Mint

Michael on Facebook 

Michael on Instagram 

Michael on YouTube 

Apartment Investor Network Facebook Group 

Podcast Show Notes