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Show Summary
In this episode of the Real Estate Pros podcast, Bryan McAnally shares his journey into the real estate industry, detailing his family background, early experiences, and the lessons learned along the way. He discusses the importance of starting small, the transition from residential to commercial real estate, and the growing need for assisted living facilities. Bryan emphasizes the long-term nature of real estate investment and the challenges faced in the industry, while also outlining his future plans for growth and development.
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Bryan McAnally (00:00)
So we have the Flex Office Warehouse project going right now under construction. That’ll be 70,000 square feet. That could create maybe like five million in equity. So as you graduate into bigger projects, it’s bigger risk, but it’s bigger reward. So if it works like I think, a lot of equity there, a lot of cash flow, and then once you get that done, that gives you some comfort, some cash flow, some equity that you can.you know, take that and start working on other deals. But, you know, we’ll be doing 24 new apartments very soon. be waiting on that forever with some snags and some holdups. And that’s how you learn. You learn through the pain. you know, so my dad had some land in a great location that we’re trying to change the zoning to build a 100-bed assisted living facility. And we’re just jumping right in because we were going to do one right before COVID.
Kristen Knapp (02:28)
Welcome back to the Real Estate Pros podcast. I’m Kristen and I’m here with Bryan McAnally, who’s the founder of MC Development. So thank you for being here, Bryan. Yes, let’s talk about how you got into this industry. You have so much well-rounded experience within real estate investing and building. So how did you fall in love with it?Bryan McAnally (02:36)
Absolutely excited to be here.It was in my family growing up, so my dad did pretty well. He was an architect slash contractor slash developer. They had hundreds of apartments, and so I knew that was gonna be my game at some point. Just wasn’t sure how I was gonna get there. So graduated from civil engineering, 05 at Ohio State, and graduated. And I had one of the highest salaries graduating. I already had a young family, and I got that first paycheck, and I was like, what the hell? my God, it was like hardly anything. After taxes and insurance, I’m like, no, this isn’t gonna work, so.
Kristen Knapp (03:15)
Yeah.Bryan McAnally (03:17)
You know, I worked for Smoot Construction for a year. Then I started working with my dad and saw him work and I was like, wow, that’s a different gear. Like that’s okay. That’s how I need to work. I mean, he was just 90 miles an hour doing all kinds of different things. So I’m like, that’s what it takes. you know, started incorporating that into my work ethic and then realized I needed some extra money. So they had some apartments. have like three or 400 apartments.And I started just doing some stuff on the side just to make extra money so we could live. And then got pretty good at it and started saving and saving and saving. A little nest egg so I can maybe start investing in real estate and that’s how we got in the game.
Kristen Knapp (03:57)
Amazing. So you just fell in love with it right away.Bryan McAnally (03:59)
Yeah,yeah, I it was a kind of new real estate and construction would be the Avenue and just didn’t really know what I was doing when I graduated honestly. So I had a lot to learn and I was ready to get after it. So yeah.
Kristen Knapp (04:12)
It’s amazing. you’re really, you know, with MC development, you’re very self-sufficient. You’re investing in everything yourself, correct? ⁓Bryan McAnally (04:19)
Right,yeah, we haven’t used other people’s money yet. ⁓ As we grow in scale, I think we’ll maybe have to do that some, but we’re taking our time. And when you’re partnered with someone, it’s almost like a marriage. So first of all, you’ve got to structure it right, and you’ve got to make sure it’s all fair, everything’s done properly. You’ve got to know what you’re doing. You’re other people’s money. That’s a big deal. And so you want to do it organically. And ⁓ I feel like we’ll be ready for that.
Kristen Knapp (04:32)
course.Amazing. Well, I like the narrative of kind of starting, maybe not small, you’re doing a ton of business and we’ll get into all of that, but starting and building to something rather than going all in right away, especially with other people’s money.
Bryan McAnally (04:59)
Right, right. Yeah, you see all the time developers and people in real estate, people are going bankrupt and even like Trump and people like that. I don’t really want to do that. So we made our own money and kind of grown organically. We started in single family. And so when I first saved that $17,000, I was working like 80 hours a week for five years in a row. I didn’t see my family much. It was a sacrifice I was willing to take. I had to, basically, to get in the game and learn.Kristen Knapp (05:05)
great.Yeah.
Bryan McAnally (06:15)
⁓ so I built my first house on my own. My dad was not involved. I was out there swinging a hammer, pouring concrete, footers, everything I could, painting. Obviously I painted the apartment, so I painted the whole house. I did everything I could to keep that cost down. We put that money into it and, ⁓ we’re able to get a 15 year mortgage and it’s still cash flow. We actually rented it for more than what we thought, which was great. So once I proved I could do it, my dad’s like, okay, I think we can start partnering on these.did that all over town. we developed like 22 houses and those will all be paid for 2029, 2030. One, we have two paid for that one’s paid for. We have some money we could pay them off now, but we got big projects we’re putting those into coming up. So yeah, exciting, exciting.
Kristen Knapp (07:00)
Yeah, you had to prove yourself to your dad. He wasn’t just gonna give you the first thing right away.Bryan McAnally (07:03)
Yeah. No, I mean, hedidn’t really put it like that. But now looking back, I was like, yep, that’s pretty much what was going on. Yeah.
Kristen Knapp (07:10)
And when you were buildingthat house, mean the first time you were really doing something like that, how did you even know what to do? How did you figure it out?
Bryan McAnally (07:18)
just,you know, I mean, he’s around, right? And he actually, he came out and was framing. So when he grew up, his dad had him out framing, pouring concrete, everything. When he was very young, I was into sports a lot, so I didn’t get into it as much. But looking back, I wish I did, because it’s just great experience. And he was ahead of his time because of doing that. He had a natural design for a design too, natural neck there. But so he came out.
and I did some stuff with this and know he’s the phone call away asked a lot of questions I’m out there just figuring it out when you’re working with subcontractors like okay how long are you gonna be there and then who do you need to be back you know you’re just kind of figuring it out as you go and then once you get through the whole thing you get it rented get through all your inspections you’re like okay I did it you know it wasn’t that bad you know I think I can do this again and again and the more you do it the better you get
Kristen Knapp (08:08)
Yeah, and are you still involved in the building process?Bryan McAnally (08:11)
Absolutely.Yep, absolutely. We just started the house. You know, I’m kind of shying away from residential. I want to get more into the bigger commercial stuff. But we just started the house right on the water at Buckeye Lake and my dad has a development there. So yeah, we’re all involved or design build and we’re building that for a good client there. And that’s a residential one. We have one for sale out in Litton Valley. Things are not selling like they were. There’s a little bit less in there, but you know, learn and move on. But yeah.
The goal is to, know, as I graduated in, you know, from the houses, we did a self storage complex. We just figured it out. I’m like, if I was going to rent a self storage, how would I rent it online? So I got a website, you know, just kind of figured it out. And then the second, second one, I knew what not to do from that one got better. You know, it’s we run it very efficiently. We have a home health company that we started seven years ago, put a lot of money up for that. And, you know, my wife,
Kristen Knapp (08:54)
Yeah.Bryan McAnally (09:09)
I was confident like we could do it and we pulled it off, but it was kind of scary, I’ll be honest. But it’s really done well and we’re up to 175 patients and very exciting. So we’re really looking to grow that and then potentially get into assisted living, which we’ll get into as we continue this.Kristen Knapp (09:14)
Yeah, I bet.Amazing. Yeah, talk about kind of the assisted living opportunity there. ⁓
Bryan McAnally (09:33)
So we have the Flex Office Warehouse project going right now under construction. That’ll be 70,000 square feet. That could create maybe like five million in equity. So as you graduate into bigger projects, it’s bigger risk, but it’s bigger reward. So if it works like I think, a lot of equity there, a lot of cash flow, and then once you get that done, that gives you some comfort, some cash flow, some equity that you can.you know, take that and start working on other deals. But, you know, we’ll be doing 24 new apartments very soon. be waiting on that forever with some snags and some holdups. And that’s how you learn. You learn through the pain. you know, so my dad had some land in a great location that we’re trying to change the zoning to build a 100-bed assisted living facility. And we’re just jumping right in because we were going to do one right before COVID.
Timing wasn’t right, COVID hit, it just messed everything up. You couldn’t get the help and it was all crazy. Couldn’t even go into people’s facilities for a while. ⁓ So we hit pause, now you can get the help. We know there’s a need because we have a home of company. We work hand in hand with them all over the county and they’re all full. There’s a list. So we know we can build the right team. We know we can build the right building, design it right, make it look great. So now we’re…
going through the zoning change and I had to present the other day to the board and we have a good feeling we’ll get that approved and then that’s going to be huge. So that could be that we would like 40 million. So we’re just trying to just keep graduating and getting in the bigger deals. Obviously you got to do organically make you know what you’re doing. But yeah, that’s the plan.
Kristen Knapp (11:42)
Yeah.Yeah.
Yeah, and this might be a very silly question, but is assisted living, does that fall under commercial or residential? It’s kind of like somewhere in middle.
Bryan McAnally (12:02)
It’s commercial. mean, it’s similar to residential because the building is like a big, you know, it’s like a big house really, but it’s massive. 50,000 square feet. It’s going to have fire alarm, sprinkler. So it is commercial, but it’s, you know, they want it to feel like a house because people are living there, you know. So it’s kind of a combination and yeah, we feel like we can do it well. There was a developer.right in our town that has done these all over the state. He’s a little bit older now. So I think they’re slowing down. But yeah, we’d like to really get into that and scale that because it’s first of all, there’s a huge need. There’s 10,000 people turning 65 every single day. That’s that’s a true stat. And Lincoln County, which is our county, the elderly community that’s 65 and older has grown 30 percent since 2010. I mean, there’s just a huge need.
We want to bring that need to our community, it’s a need. And the last thing we all want is when our elderly friends and family get older and do need care, there’s no place to go around here and they have to go out of town. So we’re trying to keep that in our community.
Kristen Knapp (13:07)
Yeah, amazing. And I know you said that you started kind of in single family and you’re slowly kind of moving away from residential. Can you talk about just the commercial industry in general and kind of the opportunities you see there and why that’s so appealing?Bryan McAnally (13:24)
Yeah, I would recommend for people listening that are just getting into the game. And I do plan on getting into coaching in groups just because I have a passion to help people. I coach myself a lot. I have a little gift to motivate people and make them believe in everything. But we’ll get into that. But yeah, I would start a single family, learn the business. There’s not as much juice in the squeeze, but there’s not as much risk. So if you can learn.management, learn some construction and learn some of the things you have to do when someone moves out. Just go through some of those cycles, kind of learn the game before you get into the bigger deal. Some people say, no, just jump into the bigger ones. I don’t really recommend that because you can get burned pretty easy. And like we talked about, I don’t think you want to start your career and go bankrupt and then have to learn from that. I would just start organically, start small, you know, get one house, two house, three houses, then maybe get a duplex, fourplex, kind of.
grow organically, kind of like I’ve done. And it takes time. It’s a long-term game.
Kristen Knapp (14:27)
Right? Yeah, I think a lot of people go into real estate thinking it’s gonna be a bunch of cash right away and it really doesn’t seem to go that way.Bryan McAnally (15:18)
No, it’s definitely, it’s long-term play and we really like to keep our properties too. So a lot of these people out there, they’re holding for three to five years and then they sell and then they hold for three to five years. So we develop new mostly and then by the time we get a full, you have a brand new property in a good location and you got nice cashflow, it’s gonna appreciate like crazy because it’s new, it’s in a good location. So there’s really no reason to sell for us. So we like to keep.most things you know there’s some situations where you maybe would sell but my plan is to kind of keep as much as you can there’s tax benefits there’s cash flow that’s forever equity and if you sell it then you have to worry about where you’re gonna put the money or you’re get tax on it so yeah our plan has always been to kind of keep as much as we can
Kristen Knapp (16:05)
Yeah, amazing. And can you think of a time as you were building your business, maybe where things did not go as planned, it wasn’t, you know, the smoothest thing in the world and what you learned from it?Bryan McAnally (16:18)
Yeah, I when I first started out, it was the Great Recession. I there was literally nothing going on for the architectural office, which I was working there. There was just nothing going on. So that was just like a lesson. Like, man, I mean, that’s all I knew at first. Now things have changed, but there are cycles and you can’t get all freaked out. I think we’re in a little bit of a cycle right now. We have a house for sale. It’s been for sale longer than usual. I built on kind of a slow plot. You know, I got a little greedy, but again, that’s how you learn. So.You’re gonna have lessons every day, you’re gonna learn every day, and don’t be ashamed to learn, because I mean, you learn something new every day. ⁓ Find people that have done what you like doing and what you’re trying to be, and you’ll be surprised how many people will get back and try to help you out.
Kristen Knapp (17:02)
Yeah, and you said that’s one of your gifts is you’re able to kind of motivate people and coach them through stuff. Can you talk about just the mindset you have to have as an entrepreneur in this industry and things that have helped you?Bryan McAnally (17:14)
It’s kind of crazy because you have to have it. But you’re still going to have self doubt all the time. Like I started doing social media a year ago and it’s not exactly easy because you’re like, is this really, do I really need to be doing this? But I know deep down, I got to keep building this brand even though I’m not really making money on it right now. I’m just slowly building my audience because first of all, I want to document the journey. I actually do want to help people.Kristen Knapp (17:26)
Right.Bryan McAnally (17:43)
and I want to show people it’s possible. So if nothing else, it’ll be a great story to unfold and watch. So yeah, that’s it. mean, you’re going to have self doubt, you’re going to have tough times, but that’s again how you learn. And you’re going to go through some of that stuff. Companies are owing you money and not paying you and still dealing with that right now. So there’ll be times where you’ll change your business strategy just because you don’t want to go through that again.Kristen Knapp (18:12)
great.Bryan McAnally (18:12)
⁓ So yeah, there’s gonna be tough times. You’ve got to learn from it. Nothing’s gonna stop you. Learn. It’s a lesson. And then you move on and you’re better.Kristen Knapp (18:22)
All right, and then what’s kind of next for you guys at MC Development? I know you talked about the assisted living facility, but what else do you have in the pipeline?Bryan McAnally (18:30)
So we have the flex office warehouse. We’re starting buildings next week. We’re doing that in phases. We’ll have the first two buildings. Total project 70,000 square feet. So that’ll be like 30,000 of it. We’ll try to get those done as soon as possible. We had to do a lot of the site work up front. We’ll put in the fence and we’ll have a lot of it done of the site, some of the paving. And then we’ll try to get those laced and I’ll be marketing the heck out of it. We have some promotional videos. I’ve been on site doing marketing already.And again, just kind of documenting the journey, trying to get that done. got 24 new apartments starting anytime. Then we’ll move to the assisted living. That’s 100 bed with 12 independent living units right next to it. That’s huge. I mean, that’s going to be a huge project, but I’m very confident we can do it. It’s just, you know, something you haven’t done. It gets a little scary, but that’s, that’s good. You want to be in those situations because you’re pushing yourself. And then from there, it’s 180 to 200 apartments in Heath.
And those can be game changers. again, you’re kind of graduating the next level of projects. And then I think from there, we’ll be scaling in the four directions like we talked about self storage, multifamily assisted living, flex office warehouse, and then potentially start using some money, maybe a fund or maybe just raise the money for the land wants entitled, you know, paying a preferred return. And then either we keep all the equity or we give up 50 50. I think there’s two different structures to
to go with there. Both of them could be great for the investors and us. if you’re just paying a preferred return and you pay them back, you’ll pay everyone gets their money back like in two or three years. It’s a guaranteed return. And some people like that. And some people want to wait for the bigger equity and want 50%. So I think there’s two different ways to do it. And both of them could be very successful. So from there, I’m envisioning doing like three of those big projects.
So to get my goal, I think that’s what I’m gonna have to do. I won’t. My goal was millionaire at 35, I was 36. And then eight years later, I was worth 10. And so now in eight years, I’m gonna be trying to hit 100 million. It’s not gonna be easy. Yeah, it’s not gonna be easy. So I think that’s kind of the road, the assisted living, the apartments, and then get those done as fast as possible.
Kristen Knapp (20:26)
I love that.Bryan McAnally (20:48)
and then I’ll have to do like three of those at a time to hit that in eight years. And that’s kind of the vision I have.Kristen Knapp (20:54)
That’s incredible. I mean, you’ve done so much on your own without even taking other people’s money yet. It’s incredible to think about what you’re going to be able to do when you go to that next step.Bryan McAnally (21:05)
Right,right, because I mean, a lot of what’s holding us back, first of all, I want to know exactly what we’re doing. I want to feel real confident about it before I start taking people’s money. But once I prove that, I mean, really the only thing slowing you down is money, you know? So you can’t get greedy. You got to make sure it’s a great deal. It’s going to be great returns for everyone. But really excited about what the future holds.
Kristen Knapp (21:25)
Amazing. Well, tell everyone where to find you.Bryan McAnally (21:29)
Yeah, so I’m on social so you can, you know, Facebook, Instagram, LinkedIn, TikTok, YouTube. We’re posting like five times a week, more than that probably. And doing a lot of that right now. We had a podcast going for a while. We’re about ready to kick that back into gear. That’s kind of the long form. We’ll chop that up into reels and we got into some, you know, some real personal kind of stuff. I’m like, look,Kristen Knapp (21:40)
on it.Bryan McAnally (21:56)
I’m gonna let it all out, know, my net worth and all this stuff because I want people to know it’s possible. I’m gonna document the journey and I think it’s cool. Not a lot of people talk about that kind of stuff. ⁓ again, it’s just kind of, this is who we are. We’re not holding anything back and this is where we’re going and this is how we’re gonna do it. And then I think that’s just proof in the pudding when we do start coaching in groups and stuff likeKristen Knapp (22:22)
And did you say the actual, the username on social people can look up?Bryan McAnally (22:27)
Yep. Okay, so you let me see here. Instagram is @BMcAnally7. Okay. YouTube is @McAnallyBryan. TikTok is @BryanMcAnally77. And Facebook is the same.@BryanMcAnally77.Kristen Knapp (22:50)
Amazing. Cool. Well, thank you so much, Bryan. Thank you for being here.Bryan McAnally (22:55)
Yeah, anytime. Big things coming. we’ll be posting a lot, documenting the journey. Coaching in groups is coming. And we’ll be getting investors, too, coming up here, planning to hit big returns. So it’s all part of the puzzle. So yeah, stay tuned. And we’ll be documenting everything.Kristen Knapp (23:14)
Incredible. Thank you so much and thank you everybody for listening and we will see you back next time. ⁓Bryan McAnally (23:19)
All right, thanks a lot.
