GI108: Empowering Women Through Multifamily with Kaylee Mcmahon

Kaylee Mcmahon has purchased over $65 million in multifamily real estate as a General Partner and has been involved in real estate as an active and passive investor, home flipper, note investor and broker.

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Transcript:

Announcer:
Welcome to the Global Investors Podcast, a show that focuses on helping foreign investors enter the lucrative US real estate market. Host, Charles Carillo, combined decades of real estate investing experience with a professional background in international banking to interview experts in all areas of US real estate investing. Now here’s your host, Charles Carillo.

Charles:
Welcome to another episode of the global investors podcast. I’m your host Charles krill. Today we have Kelly McMann. Kelly has purchased over $65 million in multi-family real estate as a general partner and has been involved in real estate as an active and passive investor home flipper note, investor, and broker. So thank you so much for being on the show. Kaylee.

Kelly:
Thanks for having me. How are you?

Charles:
I’m doing well. So I touched a little bit on your expansive real estate experience in so many different kind of areas. Can you expand on your background prior to become a full-time real estate syndicator?

Kelly:
Yeah, so I have a residential brokerage and it’s funny because here and there it’ll kind of come back, you know, like right now I’m a little bit bored. I keep putting in offers on deals, in deals and deals, and it’s like, they just, they all way are way over price. So I have to walk away. So I’m like, well, I’m kind of bored. So a couple of friends, like one wants to build a house. I don’t have time to get into that, but I’m okay with referring it out, you know, getting a fee, you know I got someone that is really interested in doing what’s Lisa’s same thing. I just teach someone my system that I used to do. That’s my dog itching herself. And then basically say, you know, go get her and collect the thesis. It’s kind of passive income or semi-passive income, which is cool.

Kelly:
And then for example on my vision board I still have the ability to do certain creative things for myself. For example, on my vision board, is this, I really want to live above a garage in an apartment. I don’t know why. I just, I, I want to so funny is I was like, okay, I’m going to go on tax records this weekend. And bam in Fort worth six blocks away from an apartment that I just bought is a 1925 property that has a Backhouse on it. That’s two stories, tall, two car garage, and I’m like, perfect. So I’m going to live in the little crap. I would live in the little crappy apartment garage and then flip the main house either subdivide and sell off or likely just just put people in there and then have a rear entrance. Cause there is a back alley behind, so you can drive in on the backside. So it’s a, it’s not like an easement, but it’s just a back entrance. So I’m super low maintenance, you know what I mean? My daughter is turning 12 on Thursday, so she is very low maintenance and isn’t gonna be around forever. So I just, I, my living situation, I like to live in a very small place that requires almost zero cleaning. So as far as before syndicating and it’s still during again, I can still do some creative things. That’s essentially like a house hack, but it’s like a little bit different. So,

Charles:
So why did you choose real estate as your investment vehicle when you started?

Kelly:
It shows, I think tell you the truth because when I got started, I was in a completely different industry. Working with wealthy people, scheduling their lives, figuring out how to make systems and systems essentially to be able to help their lives become more efficient. So that’s something I enjoy doing period project management, that kind of thing. And it was a sole proprietor business, however, and the friend of mine had brought up, okay, if you want to scale, you need marketing systems, people in a process. And if you’re the one doing everything, you know, how, how are you going to scale? And so get some cash from real estate, sell some houses, put it into that business. And that was the plan. However, once I got into it, I got interested in the idea of investing because my, my understanding of investing was stock market in my adoptive dad did it and didn’t teach me anything about it when I asked. So I just was like, okay, I guess that investment box I’ll put in the closet for later and didn’t know anything about investing realized in real estate. There are so many sub niches, I suppose, of different ways that you can invest. I mean, you can own everything that you see in touch and do all kinds of creative stuff with it. So kind of once I learned about that I was hooked.

Charles:
Yeah. So why do you think, cause you transitioned from a real estate agent into an investor. Why do you think a lot of agents don’t do that because they already have, I already told them that you’re already a professional investor or you’re, you know, you’re already a full-time investor, so you can get all those passive write-offs of all your active income and stuff, but it’s something, most people don’t do most agents aren’t investors.

Kelly:
Right, right. Which is annoying to me tell you the truth. That’s something that makes so much sense. And it’s so easy for someone that, you know, you sell a really big house and you make a $20,000 check immediately. What I did with that is I think I had like two or three big ish sales close at the end of the year and that turned into earnest money to buy 50 units. So why wouldn’t you do that? I don’t know. I think it’s lack of education. And so that’s part of why we have our Shibest app. That’s available to explain to specifically women, which that’s the people who really dominate residential real estate. We feel it, you know, and so if you have a convenient place to look at how does cashflow work tax advantages? So that convenient education is, is in that app.

Kelly:
So hopefully one of my lists of groups to get in front of besides women that are you know, like me from different abuse organizations where they just don’t know that they have other options, they can actively get involved. I mean, with crowdfunding coming out, there’s so many ways that with it being out, there’s so many ways they can get involved, but also just understanding how it works, even from an agent perspective. So that’s part of, one of the groups that that I want to target. And the other part of it too, I think is because I think when you’re, when I was an agent, the only understanding I had was from rich dad, poor dad, and how to get into flipping a single small house at a time, and then figuring that you were going to scale up kind of from there.

Kelly:
So you’re still an S you’re still a sole proprietor. You’re still running like a, I gotta do everything kind of business. And until you get to the point where you have like cruise and you’re doing like 10 plus flips a month or five a month, or whatever, you have to create scalable systems, you’re you’re then a business that if you set it up, right, you can have it run itself. But it, it can, it’s a completely different mind shift from, you know investing as an individual to then having a business. And when you get involved in commercial real estate, you really have to be able to kind of get over yourself, put a team together and be a lot more professional and operate on a totally different level than just, you know, doing your own thing.

Charles:
Yeah, for sure. It’s that the mindset and the ability to really allow partners into your business, I guess you would say, or partner with other people, because you can’t on smaller properties. You can kind of do it yourself if you have some assistance somewhere, but you, when you’re, when you start getting larger, it’s just very, very difficult to do that. So

Kelly:
Maybe a little intimidating, like I’ve started some very small little businesses and tried to pull some other women in and they just, I don’t know if they don’t like me or what we’re going to talk about that this month on my women who invest Wednesday group is our relationships with money because I had a very unhealthy one growing up. Wasn’t allowed to know what my dad made when he did for a living and mean all of this stuff. And so a lot of subconscious things probably as women are passed on to us, which is BS, but, you know, as far as being able to say, I am a business owner, I am a CEO. I, you know, I can take on this much responsibility. It is not overwhelming if you have a team anyway, but

Charles:
Yeah. So what was your first couple of real estate investments? How did you start?

Kelly:
First one was a little house that was like a, a crack house. And it was okay. First investments, crack house real estate note. That was like five grand. Let me think. And then a partnership house, like a little flip and then some 50 units in an apartment. So it was 26 and 24. So I guess that’s like four, but yeah, those were the

Charles:
First ones. Nice, interesting. So what is your company’s current investments? Strategy and criteria?

Kelly:
So the criteria, I’m not gonna remember every little point of it, but basically we’re looking for value add assets. Currently, so I’ve got a fund and the fund is specifically targeting COVID effected or post COVID effected COVID-19 effected assets and secondary markets. Cause I’ve found that there are in the, in the primary areas, there are some people, you know, pre defaulting on their loans. You know, we’re, we’re still dealing with a little bit of that, the kicking the can down the road thing from forbearance. So it’s going to get bad, I think in 2023. And then it was going to start, you’re going to start seeing some distress like June, July here and here in Texas, mean you’re already seeing it in east and west coast markets, but that’s not, that’s not where we operate. So the fund itself is meant to start in these secondary markets, because what I have seen in Texas is that the secondary markets have these people that they have, the population, they have the population growth, they have kind of all of the, not the best economic drivers.

Kelly:
Like if I was moving into Austin, for example, I’m going to be by the Tesla factory, like different deal, you know, but the secondary markets they have, they have some economic drivers and point is, is that it’s a stable market. And there’s just business owners that are unprofessional. So, you know, it’s someone that they live in their property, they live in a 200 unit property and they have all their, their bros stay there. It’s a frat house. They’re not taken care of. They didn’t have a budget for CapEx. They don’t do marketing correctly. They don’t have, you know, it’s, it’s vacant and they just blamed COVID. And it’s like, well, on our properties that are in primary and tertiary and secondary markets, you know, we just, we’re very proactive in working with tenants or sorry, residents saying, okay, you can pay whenever, you know, we can finance it for you. You can put it on a credit card. We gave him like pizza to thank him for staying. You know, didn’t, didn’t do the rent bump increase that we were planning on timely. We said, okay, well we’ll hold off six months. So, you know, we were just proactive. And I think across the whole portfolio, I think this asset behind me and Phoenix was the only one that saw like a 1% year over year decrease in collections. So

Charles:
Now yeah, we did the same thing with like gift cards, appeal that paid on time. So Walmart gift cards and anything that the property managers were working with us to put together. And I think those are the assets that really pull through like us. Yeah, I mean, I guess one or 2% maybe, you know, decrease in in collections. But the other thing too, I want to talk about is with the distressed assets that you’re finding, you said some of them are mismanaged other ones, were they people that got them on like really like bridge lending like short-term debt and they were trying to do it right before COVID or during COVID. Is that anything that they weren’t able to refinance out? Or

Kelly:
I haven’t seen that yet. What I have seen was specifically with the lender Arbor Arbor mortgage, I think that they allowed some over leverage to happen. And so when I’m seeing people that are kind of behind or getting to be behind or whatnot, it’s just that their, their leverage is like 80% plus. And that’s something that I learned from a lender in, in Georgia was CVRE Peachtree actually. And cone is her name is she’s, she’s been in the biz for a while. So she had told me a while ago, like, honestly, if you’re going to originate some kind of loan during COVID, I think that you’re totally fine based on my historic lens thing under 75% leverage, you know, anything over that, I would, I would caution you not to do that and make sure that you have reserves regardless. So they probably didn’t have reserves or probably over leveraged, you know? So,

Charles:
So what is your role at your firm when you’re looking at properties? Are you doing a lot of the acquisitions and underwriting?

Kelly:
It depends, honestly, an underwriting is a no, you know, obviously I look at the underwriting, we’ll tweak it, tweak it, tweak it, depending on like what’s going on with insurance rates, what’s going on with like how many basis points we need to adjust our exit cap rate based on like the knowledge I have of the market. What we have done so far is stick within Texas, really because I study these different markets and all of them are different. You know, we’re looking at the, a really good deal right now in Lubbock and Lubbock is full of crime. You know what I mean? But there’s a certain sliver of town north side. I forget the highway that goes straight up, but anyway, there’s a small sliver of town that, that is actually pretty good. So it’s just again, looking at these opportunities.

Kelly:
So underwriting is not what I spend my time doing. That’s Carolina’s role. She is a mathematician business analyst. I’m trying to remember all her different roles, but basically what she enjoys doing is gathering data. For example, she’s going to be the one that we were not actually tweaking our roles a little bit more to bring her in more so that she can transition from her full-time job into syndicating full-time, but she’s got a son and she’s a single mom, so you can’t just let them jump yet. But planning is, is she enjoys looking at data that we get from property managers to check out the cook and the books, you know, to make sure that our maintenance turn time is on schedule where it should be that like our inventory supply chain, et cetera, that it’s on time that, you know, people aren’t purchasing things that are a waste or like return on investment of certain supplies that we’re looking at purchasing.

Kelly:
Okay, should we do Cedar versus, you know, another material? So that’s really where she shines. So from what I shine is, you know, or in his being the local one, you know, so she’s in Los Angeles and maybe moving to Miami soon, but but she’s not here. And so for me being, you know, visually on the properties touring stuff all the time meeting with brokers like I’m going to go drive by a property tomorrow. But anyway, just getting a feel for, you know, is this actually a good area? Cause, cause one thing is that whenever you read the OEM or whatever that, you know, it’s, it’s sometimes it’s one thing versus reality. So I guess my strength is project management having a good gut feel on how that market’s going to perform based on, you know, numbers and then having her check the numbers to make sure that we’ll actually do numbers first.

Kelly:
Then I go look at it, then we do numbers again. So it’s, it’s a team effort, you know, and then even now as we’re looking to expand into larger assets, as we’re looking to expand into different things even bringing on some other people that have a lot more experience than we do as essentially advisors, you know? So I think we’re going to be really fortunate soon here. We’ve got a 10 31 exchange coming in from Los Angeles for this next deal we’re working on right now. And this guy has done like 90 deals. You know what I mean? Like he knows a lot of stuff. So he’s added some value already was saying, okay, let’s add VA’s here. Let’s make the customer experience better here. Let’s do you know, so

Charles:
Nice, nice. So with us, I mean, we’re on a similar page here where we’re looking at a hundred, 150 plus properties now and trying to put stuff on our contract and when we do, but what are you initially looking at kind of the shakeout apartments properties before even going further into obviously looking at numbers, then you’re going to do something on the property itself. I imagine you’re looking at the construction, you’re looking at the area, et cetera. What are the things that you’re doing quickly? Let’s say I’m not a full underwriting overview of the property to stuff you want to see or stuff. You’re like, you know what, that’s probably a no go.

Kelly:
Yeah. So like I was kind of going through my criteria earlier and I didn’t really do a good job of finishing cause I squirreled, but you know, looking at a value, add deal, there’s, there’s a value add play. And then there’s like a longer term yield play, I suppose. And so or, or, or slight value add, but not heavy construction value add. So there’s, there’s different things, but it’s all C class workforce housing. So that’s gotta be one thing, but the brokers sending us stuff usually, no, you know, I still like do get some stuff. That’s like B plus class, a class on where am I getting this? But so that would be a no, you know, really quick. I don’t need to look at the email. I first want to know what’s the whisper what what’s the percentage of units that are still classic?

Kelly:
Because one of the thing I’ve had very, a lot of success with is if we have at least 70% meat on the bone, so then the, we can get in there, we can flip a chunk and leave 40 to 50% meat on the bone left when we’re done. The next buyer still has some kind of value. So that’s something that I look for. And then I guess whenever we’re looking at a deal and for example, if you’re you want to know if there’s an opportunity for operations to improve. So if you’re looking at the P and L and you’re going, oh, look at their their expense ratio about 50% is about normal. Yeah. We hire, we low. Sometimes low means there’s an improvement needed in marketing, for example. But you you’re looking through for opportunities really. And so if, if I’m sitting there going, okay, everything’s pretty much flipped.

Kelly:
I’m having to do an assumption of whatever that current debt is. So there’s no room for me to go find a better loan with better interest rate or better terms or whatever. I’m just locked. I can’t really improve much more. They’ve already done all of the LEDs, all of the rubs ratio, utility bill backs. They’ve already done all of the operational plays to where sometimes, you know, your staff is overpaid or you have too many people that are being inefficient. You always look for just opportunities. I mean, if there’s, if we’re going through meaning and there’s nothing there, I’m like, well, why do I even need to underwrite this?

Charles:
W explain some listeners might not know about the whisper. Can you explain a little bit what the whisper is?

Kelly:
Yeah. That it lets a broker know that you’re, you’re, you’re a baller. No, just kidding it, your, your experience. So really just whenever I get a listing, the first thing I do, and this is key, whenever you’re trying to get into an active or deal as an active person is engaging with the brokers consistently. Like, even if you can’t meet in person, you get these emails and maybe that deal doesn’t work or it, when it kind of does need some questions. The first thing I do is see the listing and boom, email them right away. And I go happy taco Tuesday, you know what what is the whisper? And the whisper just means like, what is basically the price that the seller wants, you know? Or what you think that you guys can, it depends depending on a couple of factors, but basically what, what do they want for it? So, yeah.

Charles:
Yeah. Okay, perfect. Thank you very much explaining that. So you’ve invested passively, you invest actively, and let’s talk about how you’re vetting partners that you’re working with on both sides, or if you’re investing with, if it’s passive, how do you vet and underwrite those general partners? And when you’re talking to passive investors for you, how do you remember maybe they want to pass the invest anywhere, maybe with you, maybe someone else, how do you explain to them that they should be doing their vetting?

Kelly:
So when I look at some I’m only going to, I don’t really give advice except for to say, Hey, here’s what I do, because I’ve learned a lot of lessons in this category when you are an active principle. And, you know, for example, whenever you’re looking at the leadership team, you obviously have to have somebody that has experienced in like, that’s a general word general term, but when you’re looking at experience, you want to know, you know, have they been able to do whatever their plan is right now before, you know, have they done a value add for example, or a yield play or whatever the thing is that we’re doing new development, whatever the deal is, you want to know that they have a track record doing that before. He want to make sure that there’s somebody involved that like for, for me, I’m newer, you know, I’ve only been in the industry three and a half, four years, something like that.

Kelly:
And so that’s not a lot of time, you know, having access to resources, whether it’s like your mentor, whether it’s a board advisor or whether it’s a brother or whatever, somebody that’s been doing it for a long time. So I’ve got people that I call and I make that pretty clear to our investors that it’s not just, you know, the three of us, there’s also plenty of other people that I call when I, when I, when things happen, because I don’t have all the answers. So knowing that that person in personality wise, like, do you guys even mesh up? So when you’re betting partners as an active person you know, like a new person, for example, like letting them come in and have all the voting rights, basically, that’s not a good idea. Like I’ve learned that lesson because unless you’ve gone through this process and you understand people have to get paid or they don’t work you have to understand that, you know, obviously the first priority is your mortgage.

Kelly:
They have to understand how securities offering works, that you can’t tell investors, you’re going to do this and then change your freaking mind. It doesn’t work. It’s securities fraud. You literally have to, if you’ve put in your, you’re going to refi, get a refi. If you didn’t, you’re not, you know, or if you said I’m going to pay my investors, you know, quarter one year or two or whatever it is that you put in there, you got to pay him. You know what I mean? And it doesn’t mean that like, if you’re in COVID and like, you’re not making the types of income or type of income that you thought, plus you need more reserves, you know, you might have to pull back what they’re getting paid for a little bit, just to make sure that you have the cashflow reserves, you, you need, you still got to pay him.

Kelly:
You know what I mean? So I’ve just, I’ve run into situations. And then also when you’re vetting an active partner it’s really important to know, like, what are your, your ethics and values and not just like, not religion. I mean, like your business, what is, what is the, your, your mode of operation, I guess, for example, you know, do you believe in improving the property, even if that feature doesn’t necessarily make income. So putting in a dog park, you know what I mean, making sure that we have the front office looking like the best and it’s going to cost extra money and it’s not making income a locker would, or, you know what I’m saying? Like, it’s a, it’s not a reserved parking spot, but do we believe in the same type of value plan for the property or, or as money, our number one motivator period, and so nothing else matters, or, you know, our personalities, for example there’s people with borderline personality disorders, you know, and you’re pretty good at hiding it until stuff gets tough.

Kelly:
You know what I mean? So it’s, it’s really good to do what I do now and kind of business date. And I think it’s important for passives to even do that too. But being able to see that person hanging out with them, you know what I mean? I try to put together a yearly event and my buddies branch, and if people will come out, that’s how they can meet, see, hang out, do some zip lining, you know what I mean? Like really hanging out and really ask those hard questions. Like, even for example, one of the biggest things that I’d want to know is where Kaylee, if I was someone was asking me, where have you screwed up, royally screwed up and what did you do about it? And how do you not do that again? What are the systems in place or the safety nets that you’ve put in place now?

Kelly:
So it doesn’t happen again, you know, cause no, one’s perfect. Things are going to freaking happen. These properties, people die. There’s floods, there’s arson. There’s, I mean, there’s all kinds of crap lawsuits, you know, and as an active person, you gotta deal with all of it. So ask that person, you know, like what have they been through? How did they fix it? And then what, what do they learn moving forward? So I think that’s the biggest thing. Cause if someone’s going to tell you that nothing’s ever happened, that’s BS or they’re too new or they don’t have true leadership skills is what I could say. Because a leader is someone who can admit when they’re wrong. They provide a solution plan and they basically get the whole team on board and they execute, you know what I mean? So,

Charles:
Yeah. And they also make sure that those, the people that are that they say have all this experience are actively actually active on leadership team. Not just someone that they brought on to sign-on debt cause he did a hundred deals, you know? So it’s like someone who’s making these decisions. And then tell me about your property management company. So that’s really great information. I love that all. What are common mistakes? You see other real estate investors make

Kelly:
Common? I don’t know, but I can give you the like a long list of mistakes. I’ve seen that I’m just sitting there going, this doesn’t make sense. I’m going to do this. Like for example, there was one deal where they had the property manager sign on the freaking loan and it’s not a bank loan. It’s a non-recourse agency long when people are guarantors on those things, you can’t get them off. You know? So if you’ve got like a, a terrorist on your team, who’s stealing money and threatening people and not getting anything done as a, as the vendor property manager, the occupancy suffering, you can’t get rid of them. Don’t do that. That’s stupid, you know or not wise, let’s just say that. I think that when it comes to again, communication some mistakes that I see are that people in your bylaws, you know, for example, it says like how many meeting minutes we’re supposed to have and that people just don’t have them.

Kelly:
It’s really important to have them to keep track of that and keep the whole team on board. So for example, we have kids we’re busy, this, that, and the other, but you know, you have maybe a zoom call or in-person meeting or however you do it. And then having kind of like a little bit of a recording afterwards, they can come back and reference or having a slack channel where we follow up on stuff. I’m trying to figure out how to use acta.ai, which basically is a there’s other ones, but it’s an AI personal assistant that can log in as like another person to your zoom meeting and then transcribe the whole meeting. So you can go back and look at it. And then also you can say like, like as like your assistant’s name, you give the thing a name and you say Charlie put blah on the calendar for this day and add this person do on whatever, you know what I’m saying?

Kelly:
Like a task and then it will action it inside Trello. So yeah, so basically it’s a pain in the butt, but having, you know, a, we have record of what we were doing, why we’re doing it. Who’s supposed to be in charge when it’s due. That’s that’s the biggest thing as a leader is making sure that it’s clear who’s in charge of what stay in your lane, when does it do? So that’s another mistake I see too, is people don’t pick a lane and stay in it. They always, they want to micromanage other people’s roles. You can’t do that. That’s disrespectful and it’s inefficient to another big mistake I think I see is that I’m learning as a young person, you know, getting old, quite rapidly. I’ve had a lot of gray hair this year. Oh my God. But the business being a, even an active investor in multi-family, for example, if I owned a car business, you know, I was selling cars on a lot or whatever that is obviously a very active business.

Kelly:
You have sales managers and salespeople and you’re there every day. And, and you’re, you’re really in charge of it. Whereas whenever you have a large property, you have a property management company, you kind of have these people that are in place to run things for you. However, they do not run it for you. They don’t, they need, and I don’t want to say babysitting because there’s like this, this line where you want to micromanage people, but you have to keep them accountable. You know? So it’s just having those very professional conversations on a regular basis that here’s, here’s your KPI or your performance or the due date or whatever it is that we expect. Having clear communication on that. And then when it’s not being done, having clear communication about, okay, here’s next steps. Remember we’re going to have to start working with other people if you’re not meeting these these deadlines.

Kelly:
And again, having that conversation where essentially they’re like, okay, well they already get it. And it becomes a non-stressful situation for you to be able to manage people without micromanaging them. You know, if they don’t take enough pride in their work or initiative, I mean, that’s, you can’t make somebody do that even an opportunity. But anyway, so being able to to kind of manage from afar, but also be in it. So you do have to be active. Like I’ve met someone that’s worth a bunch of money. And they were like, look, this is not a passive industry. I don’t know who says it is. Not that I’m doing the construction myself. Not that I’m micromanaging people, but you know, like having my partner, who’s very into analytics and numbers, like that’s a key role to have because they can sit there and go, the data says this, Kaylee, how are you going to like action that in real life? So then it’s my job to go, like do stuff with the information and the decisions. So,

Charles:
Yeah, no, that’s very interesting. And same thing you have with actively managing those property managers is you know, if, if someone’s fridge stopped working, you don’t have to call me and ask me if it’s okay to get them another fridge. If you’re putting a whole new HVAC system into someone’s unit, you probably want to tell me beforehand that we’ll be above whatever threshold we set for money you’re spending. So it’s really, but that’s, you’re not going to know that from initial new relationship, that property manager that was also all have thresholds have to be put in place. So you’re on the same page. It will take time for you to mesh with your property managers, but yeah, like you said, it’s very active that’s for sure. Yep.

Kelly:
Having those proformas set ahead of time, you know, and then having like your takeover meeting within a week of closing, all right guys, month one, here’s what we’re doing. Who’s in charge of what, you know, here’s our budget, you know, all that in your performance important. And having it documented, just like I mentioned, like the meetings so that you can go, ah, we had that conversation. Yeah.

Charles:
So as we’re wrapping up here, what are some factors that have contributed to your success?

Kelly:
I think the fact that just naturally I’m a lifetime learner. That’s something that I really enjoy doing. I have a thirst or a hunger for learning. I’m always reading, like I was getting a tattoo two days ago and I’m sitting there with a book, you know, and they’re like, you’re smart, you know? And I’m like, no, I just, I want to know. You know, and so actually I think that that’s one thing that even once I learned for the most part, how the model of a value add investment should go, I still want to find other ways to make it better, make it more efficient. I get excited to learn that kind of stuff. So that’s one thing. And then also I think the learning feeds into kind of the ability for me to be aware of who I am as a person and be able to work on myself and be able to know like, you know, we, we aren’t perfect, right?

Kelly:
Some of us have bad habits. Some of us have behaviors that aren’t great, you know, but being someone that’s aware of those things because I’ve spent time working on it helps me to be able to lead people. People better be able to take better care of myself better care about other people. So being able to kind of look at myself through the lens of someone from the outside, looking in, I guess and being objective and not, you know, thinking I know all the answers or you know, acting like I’m, you know, I don’t try to be as, as wise as possible. And then trusting trusting experts. Cause I mean, they may not always have the right perfect answers or whatever, but again, you got to kind of like respect people’s lanes and work together collaboratively as a team.

Charles:
Nice. Okay. So you’re the apartment queen, you mentor women in all stages of real estate investing. Tell us a little bit about your podcast meetup and your programs.

Kelly:
So the podcast, we just got it back on iTunes today. We were having some corruption issue where it wouldn’t play a while. So the podcast pretty much right at this moment has been about interviewing women and what it really takes to make it in business. So there’s a point where you have an idea, then you start doing some stuff, getting some data, selling some stuff, and then getting to traction where you’re really ramping up. And so it kind of goes through the process of different women in different industries, how they’ve been able to, to get to that point. Like what does it really take the Olympic, your mom and dad to get, to put your first business on a credit card? Like I did do. I mean, like what does it take? And some of that comes along with, you know, our challenges with male and female interactions. It just depends on what, what person I’ve interviewed of what what we talk about, but pretty much what it takes to make it in business and female. What was the second question?

Charles:
It’s about all the different, you have a meetup, like all these different things that you’re doing on the side of building this your, your active real estate portfolio.

Kelly:
Yeah. So it’s kind of part of bringing on educated investors or Xi investors as we call them. So I we’ve got a programs, 10 31 program we’ve taken women’s investments from other states and rolled it into a multi-family investment. So they have at least two X their portfolio. So that’s something that helps us build our portfolio because we have more cash in the bank basically helps them to be able to avoid that capital gains tax and be able to get into a larger, a more professional portfolio. We also have trying to think of everything. There’s, there’s a book that just got released last week. So it got to number one bestseller on day one for commercial real estate, check that out. It’s called women in multifamily real estate, just kind of showing you who it takes to do this, you know, and then from just the female lens, you’ve got women on there who are lenders brokers, sec attorneys, whatever that have kids, how they balance it, how they, you know what I mean?

Kelly:
So just from a different lens because I think that that’s a lens it’s not really well well thought through in this industry, it’s mostly like a male dominated industry. So those are two, two big things. We have an app called Chivas. And so this isn’t necessarily specifically for multi-family it’s for commercial assets, that cashflow. So really it’s how do you work on your mindset? And then how do you get educated just from a convenient app about all of the different investment vehicles and commercial real estate that cashflow pros and cons of each. So maybe you want to get involved in one or the other, and then how to look at investment documents. So it’s supposed to kind of take away all the fear of what I don’t know and what usually will stop women from just, you know, getting involved.

Kelly:
And then let’s see what else? I sh, oh, and like I mentioned earlier, our fun, that’s another thing that’s really important. So it’s a female focused fund. The men that invest in that fund, they actually have to take a pledge where on their subscription documents, they pick a female mentee and they, her information on there, like you would espouse in our investment portal. They, the mentee puts in a quarterly report could be a couple sentences, nothing crazy, but so that she’s aware of the pros and cons and what’s going on in this investment, why they chose the investment, et cetera. And then if he can keep that up for a calendar year, then actually his preferred return on the fund will go from 7%, 7.2, 5%. So, I mean, what, what can I do to create more female investors in a place where I feel like there are not, not feel like the numbers say there are not enough of us, you know, and especially with more divorced households where women have to be the head of household and maybe didn’t have the financial education.

Kelly:
It’s really important for us to, to kind of take responsibility for learning how to be financially empowered. And so that is how all of these different programs kind of all weave in together to give women opportunities to get invested in multi-family working on it right now. Like I mentioned, crowdfunding expanded to where we can take down to a minimum of a thousand dollars now through crowdfunding for certain assets that we have coming out. So now grandma can invest, you know, it’s not the, the barrier to entry is lowered. And that, that was what my goal was

Charles:
Nice. That is awesome. You have a lot of things going on. So how can people learn about you and about your businesses?

Kelly:
Yeah. Just check out our website, the apartment queen.com. And then if you go to the top of the the menu bar, it’s got all the different programs YouTube channel, like there’s, there’s so much stuff on there. Just start digging.

Charles:
Yeah, for sure. I went through her, well, your website, it’s a, it’s got a lot of information and then links to everything. So theapartmentqueen.com, I will put that link into the show notes. And I want to thank you so much for coming on.

Kelly:
Thank you for having me.

Charles:
However, we rest your day.

Kelly:
You too.

Charles:
Hi guys! It’s Charles from the Global Investors Podcast. I hope you enjoyed the show. If you’re interested in get involved with real estate, but you don’t know where to begin, set up a free 30 minute strategy call with me at schedulecharles.com. That’s schedulecharles.com. Thank you.

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The Apartment Queen

About Kaylee Mcmahon

Kaylee has purchased over 68.2 million in multifamily real estate as a General Partner and principal. She sold over 3 million dollars in residential real estate before transitioning into her current full-time syndication role. Originally from Portland Oregon.

She founded the Women Who Invest Wednesday networking group in Dallas, which is also digital, and a podcast called #1 leading ladies. She interviews kick-ass women who are disrupting their industry and the REAL story of how they got where they are. She is developing technology to help make it easy and convenient for women to learn how to make passive income through apartment investing-the Shevest app.

Kaylee has done home flipping, note buying, active/passive investing in apartments, and sometimes is her own lender as she feels that to be truly confident in giving advice, one should NEVER take advice from someone who has never gone through these things themselves.

Kaylee has completed hundreds of hours of continuing education in real estate. In addition, she is always learning about multifamily business models to get her and her partners the best return on investment.

The entire backbone of what gets Kaylee out of bed every day is her “why”. At a 30,000-foot view, it is to create financial independence and space for those experiencing codependency and toxic relationships which hamper their ability to visualize and then manifest what their amazing reality could be. Her company culture models this why and is “Changing the face of multifamily” to bring more women into the light as powerhouse operators, key principles, and limited partners. We will create 1 billion more female SheVestors and “givers” by 2030.

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