Working Capital The Real Estate Podcast

From Retail to Real Estate Investor and Designer w/ Kara Beckmann|EP4

Apr 28, 2020

In This Episode

Kara Beckmann is from Scottsdale Arizona, she is a Real Estate Investor, an active home renovation, and founder of Beckmann House.  

In this episode, Kara shared how she started in Real Estate, from being a pastry chef, working in retail, saved up money, used it to open a bakery and invest in her first flip. You’ll be amazed how her creativity and passion lead up owning her own renovation and design company, Beckmann house, without having any background in construction! You’ll also learn how she maximizes her profit, marketing, managing businesses at this coronavirus time, BRRRR, what made her decide to leave her steady retail job, before and after DIY projects, Instagram engagements,  having rental properties, multiple streams of income, why she loves fix and flipping houses and many MORE! 

  

Quotes: 

  • “I needed something to be creative. Let’s fix this up, make it beautiful. I’ll sell it and do it again.”     
  • “It really does help to build a certain level of respect and I’m walking on a job site just giving orders and I’m really interested in what they’re doing and I’m interested in learning” 
  • “So I do think that knowledge really is power and when you have knowledge of how to build your confidence, that’s really important.” 
  • “As an entrepreneur, it is really important that you constantly evaluate where your mindset is.” 

Resources and Links: 

Email Kara 

Kara’s Instagram 

Kara’s website 

Biggerpockets 

Ed Mylett 

Rich Woman by Kim Kayosaki 

 

Transcript

0 (0s):

A lot of times, I don’t even think about it. I’m very used to being the only female on the job sites. And I think that just comes with the territory where it still is a very male dominated field. But I think that, that’s why for me personally, it’s so important that I learn different trades. So when I’m talking about something, I know what I’m talking about because I’ve done it, you know, and what I’m on the job site. And if I’m doing a DIY project or whatever it is, and my contractors see me working right alongside of them, it really does help to build a certain level of respect.

1 (34s):

Welcome to the Working Capital The Real Estate Podcast my name’s Jesse Fragale. And on this show, we discuss all things real estate with investors and experts in a variety of industries that impact real estate, whether you’re looking at your first investment or raising your first fund, join me and let’s build that portfolio one square foot at a time. Ladies and gentleman, we have a special guest today. Kara Beckmann Kara is a real estate investor, an active home renovator Scottsdale Arizona and she is the founder of Beckmann house. Hey Kara how’s it going? Hey good. How are you? I’m doing great. Thanks again for coming on the show. Hopefully everything is going okay. In your, and your area in the world right now with the coronavirus and kind of the environment we’re in right now.

1 (1m 15s):

How are you handling everything?

0 (1m 17s):

Yeah, we’re definitely seeing shifts for sure. Just like anybody else would, but as far as my experience, the projects that are going right now, we’re still continuing to move forward. My contractors are still keeping really busy. Thankfully their stores that are open that are considered essential businesses that help us keep these projects going.

1 (1m 38s):

Yeah, we were just talking just before the show, how it, depending on where you are in, you know, essential services, you know, some are limited, some have more going on. Like we were saying in my area of construction is pretty much a ground to a halt right now, unless you’re kind of essential residential a, it sounds like it’s a little bit different in your area. You’re still able to keep these projects moving, which is, you know, I guess as positive.

0 (1m 60s):

Yeah. Yeah, for sure. I’m really super thankful that we can keep these projects moving. So

1 (2m 5s):

Right on. So I’d like to start, as we normally do with a little bit of your background and how you first got into real estate, you know, what was that story like for you? I find it’s a little bit different for everybody.

0 (2m 18s):

Yeah. I mean, for me, it kind of started as a hobby, so it’s not something that I, I never pictured to do this full time. I’ve always been very creative. My background is actually, I was, I was a pastry chef, so my degree is in patisserie and baking. So it just, you know, being creative and very long story short, I’d been saving money for many years. And then I was working in retail, but I’m still saving money. And I thought I have to find something that gives me passion and where I can still be creative. And I decided to take all of that money that I had been saving to eventually open up a bakery and invest that into my first flip.

0 (2m 58s):

So at time I didn’t know anyone in real estate, so it was really okay. I’m diving in. I have to figure this out as they go. And that’s still my mentality as they build my business to this day. And it’s probably one of the best ways that I could have done it. I think there’s just different personalities where sometimes if you’re thrown into it and you have to figure it out, you will figure it out. And for me, that was a lot more beneficial than having someone kind of walk me through it.

1 (3m 26s):

Hmm. So your kind of burned the ships and the got right into it. Yeah, exactly. So what was it that, that, was there anything in particular about flipping that you thought that would be an ideal first start rather than maybe a buy and hold or a different strategy?

0 (3m 41s):

Okay. Yeah. You know what, just came back to being creative. So I wanted to take a blank canvas essentially, and this happened to be a house where there were, whoever had lived in the house before she passed away and they were in a wheelchair. And so all of the dry wall on the sides of, of the hallways were completely gouged. There were bumpers on the corners. And so it just, it needed a lot of help, but it was just, I was looking at it as an opportunity to create something beautiful and the buy and hold strategy never entered my mind. It was just something I needed something to be creative. Let’s fix this up, make it beautiful, sell it and do it again. And so it kind of fell into the fix and flip model just for, just for the fun, quick fix and flips and every property I could do something different and keep that creativity going.

1 (4m 32s):

So did you have any background, you mentioned Retail and, and what you’re doing at that time, did you have any background on, in construction or are at that time it was kind of, it was pretty much green.

0 (4m 42s):

It was, I didn’t even own a toolbox. Like it was, I knew nothing about construction now I have a whole shad of tools and building materials, but no, I really knew absolutely nothing. So everything I’ve learned has been being on the job site, asking questions and it’s w you know, it’s just been really, really great for me to learn that way.

1 (5m 4s):

Yeah, absolutely. Well, that’s great. Well, so was that first kind of parlay into real estate? Was that in, in Scottsdale, Arizona where your still today?

0 (5m 11s):

Yeah, that was in Scottsdale. It was relatively close to my home, which I still like to invest relatively close because I go to my job sites all the time and yeah, it was just that one. I don’t even remember how many offers I put in before someone finally accepted that offer and they ended up accepting 50,000 below ask. And so to this day, I still think just putting an offer, it, it gets a conversation going, you never know someone’s circumstance and what they’re willing to accept.

1 (5m 42s):

Yeah, for sure. I always tell, tell people, you know, even if, even if you don’t know at the time that you’re going to be able to take on the deal, I mean, don’t put off offers end that, you know, your, your not going to be able to fulfill, but getting in that head space of putting an offers in touring properties, and then it becomes part of that reality. So on that, on that particular dealer, actually just leading up to breaking into real estate. Usually we, we talk to people and there’s like, you know, a couple of books that they write at the time are they went to a chapters or Indigo and, you know, read rich dad, poor dad. Was there anything at that time that you were just getting kind of knowledge and learning on the fly? Like you, like you mentioned,

0 (6m 20s):

So I didn’t read any books up to that time. I didn’t have a mentor, but a few, it might have even been a month before I started really looking for houses and putting an offer. I did go to real estate seminar. It was a weekend seminar where they wanted you to pay them to help, you know, they would help walk you through the process. You would have mentors all along with all along the way. And I thought, okay, yes, I could pay this money. And hopefully, you know, have these coaches and have them help me walk and having them walk me through. But then I thought, or I can take that same amount of money and that’s my down payment for a house and just do it myself. And that’s ultimately the route that I took.

1 (7m 2s):

Nice. So that first deal you did when, when you, sorry. And when you ended up selling it, you used that capital to get into more flips. Is that kind of how you, you begin the journey?

0 (7m 12s):

Yeah, so basically I had saved enough, saved up enough money where I had my down payment covered and I had the renovation covered and because I was working full time, I was able to get a mortgage on the House. And then when I flipped that house, I kept that profit in, I got the rest of my money out and I was able to continue the process.

1 (7m 33s):

Okay. So if you were to walk us through an ideal deal for you, so say if we keep on that, on that tangent with a fix and flip, if you were to identify a property today, what would be kind of the nuts to soup a kind of journey that you’d go through on it?

0 (7m 50s):

Well, some of my best flips have been presented to me by wholesalers. So there’s their wholesalers that I’ve worked with in the past. They know exactly what I’m looking for. They know my price per square foot that I’m comfortable entering in at, and with the wholesaler there, giving you a price in, it’s take it or leave it. So there’s no negotiation. So basically I have to know my numbers really, really well. And on three of my wholesale deals, I’ve had a 30% cash on cash return. So I run those numbers really fast. They’re fantastic deals. I’m entering really low below market value. I’m a very tight on my rehabs. So if I can keep those rehabs right on track, I know what my ARV is going to be and walking away with a fantastic profit.

0 (8m 33s):

So that’s another reason why I really liked staying in the same neighborhood because I can run my numbers really fast. And I know the buyer, I know the style, so it kinda makes it a little bit easier.

1 (8m 46s):

So for the listeners, if you could define to a two things there, the HRV and also wholesaling cars, I think some people kinda have an understanding of what that is, but not, not entirely sure.

0 (8m 56s):

So the ARV is your after renovation value. So I try to make all of my flips still have a very custom feel, but I have to make sure that I’m renovating, you know, only so much where I’m not over renovating because that house at the end of the day has to appraise for My after renovation value, So your HRV is important. And I would make sure, you know, your projected ARV before you’re even setting budgets and making sure that, you know, you have some leeway, even if your after renovation value comes in lower than you expect. So you have, you know, kind of that buffer there and then a whole, Oh, go ahead.

1 (9m 37s):

No, no, no. It was just going to you you’re you’re on track there

0 (9m 40s):

And then for a wholesaler. So basically it’s, I don’t know if they’re actual, I think their agents, right. The real estate agent.

1 (9m 49s):

Yeah. I mean, oftentimes our agents and I think the confusion for some peoples, you know, you hear assigners assignments wholesaling, but I’ve seen agents or investors I’m on the wholesaling front. I’m assuming it’s similar in your area than it is in ours in that, you know, they are trying to find, find a property very under market so that they can make that Delta and still give you a property that’s at seems to be under market for your purchase. Or is that, is that what you see?

0 (10m 16s):

Yeah, basically. So they’re essentially putting an under contract with the owner of the property and then the same day that I’m taking possession, that title is getting switched. So the wholesaler’s making an assignment fee. It can range, you know, based on your area can range a lot. And you know, I’m always comfortable with paying them the assignment fee because I’m still getting it for significantly less than I would if I went direct in some cases.

1 (10m 42s):

Yeah. So I’m always curious, cause I’m, I’m a, my partner and I we’re buy and hold, that’s kind of our strategy. I’m always curious when it comes to, you know, renovations and flipping, you know, you mentioned briefly that you don’t over renovate and I’ve heard this before, you know, people doing lipstick renovations or doing just kind of a, a light renovation or trying to find that sweet spot of renovation that you’re not paying too much for. It how does that calculation go on when your looking at a deal?

0 (11m 10s):

That’s a really good question. I I don’t usually do lipstick flips. I mean, I’m really doing things that are again, I just want it to feel custom when you walk in. So I’m doing a lot of special things, but I think that’s where you have to be creative. You know, you have to know where to shop to keep your costs low. If I could build things on site that is going to be cheaper for me than buying it, usually a premade. So, you know, in, it also has to do with a price point. So I’m not going to rent. I’m not going to do an $80,000 renovation. If my HRV is going to be around 300,000, unless I’m getting a killer deal. And so I think it really just goes back to knowing your numbers in working on those numbers before your putting an offer.

0 (11m 55s):

I always work my numbers backwards, starting with my after renovation value. So I think it’s, it’s, In, that’s something for me, the more flips that I’ve done, the more I can hone in on my budget. And now I pretty much have based on my selections, based on my, my labor costs. I basically know what my price per square foot is to renovate in these areas.

1 (12m 19s):

Hm. Yeah. You kind of got it down Pat now just after repetition. Right? So when, when your looking at these now in terms of timing, I’m sure every deal is unique as is most of real estate, but is there an ideal time for you to do renovations market, the property, sell the property? Is there kind of a sweet spot in, in that as well?

0 (12m 40s):

Yeah. I mean, timing is everything. I think for us, usually if I get a house on the market early January, January, February, March, those are fantastic times for us to sell an Arizona because we have a lot of video, a lot of visitors. So maybe in Toronto, Canada, I don’t know if that will

1 (12m 57s):

No, not so much,

0 (13m 1s):

But yeah, any time when our weather is good, we have a lot of snowbirds. We call them that come here and just a lot of tourists. So that’s usually a good time to have a house on the market,

1 (13m 13s):

For sure. So in terms of, once you do get it on, I’m always curious on the sales side, w who are you reaching out to? Do you, do you try to market it yourself? Do you have preferred agents that you use for the sale? How does that process look like?

0 (13m 26s):

So my mom is my real estate agent. So I, I don’t show the house, but I will promote it on Instagram and different social media channels. We will usually do an e-blast with our escrow officer. So we’ll do a beautiful brochure and then they’ll blast it out to thousands of agents local. And that’s kind of how we market them will do open houses. Yeah. That’s pretty traditional in that sense.

1 (13m 53s):

So another thing for kind of the, the assignment wholesaling and flipping it’s a different type of income, right? Because you’re running a business. So is there anything that you would tell somebody that’s looking to get into flipping that, you know, there’s a common MIS misunderstanding of a capital gains versus income in a business, whereas flipping your doing it all year round, it’s not capital gains as far as I’m aware in, in Arizona as well, it’s considered business income. Do you set up companies differently or is it just one company that does you know, that you hose your, your business under?

0 (14m 27s):

Well, I have two separate companies as far as a legal is concerned, so I’ll have my fix and flip business. And then I also have a design business. So those are separate entities for tax purposes, as far as capital gains tax. It’s not considered capital gains, but it is considered, I believe its a primary or a personal income tax. So I’m still paying 24% tax on these, on these gains. So, you know, you do have to be mindful of that at the end of the year. If you’re choosing to pay it all at once or you can choose to pay quarterly taxes because that really will hit you pretty hard at the end of the year. So that was one, have a few reasons why I chose to start getting in, to buy and hold properties to offset those really big taxes at the end of the year.

1 (15m 15s):

Gotcha. So aside from the first deal that you did, was there any deal that, you know, we talk about a deal of substance that can be, you know, you’re first deal or it just kind of a, have a unique deal that you did that you could kind of walk us through?

0 (15m 29s):

Yeah. You know, there’s been a few really good ones. I’ll talk about my first wholesale deal. Since that time we were talking about wholesalers. So this was my very first wholesale deal and they move really fast. So I want to say this was about a seven day close might have been 10 day, they kind of fluctuate. So you basically have no inspection period at all. You’re closing in 10 days, it’s all cash a, it can be cash or a hard money, but you need cash at closing. And I was very nervous to do this deal because again, it was just very fast. I had no time to do an inspection and, but it came down to knowing the numbers. And I thought even if something comes up, something crazy comes up.

0 (16m 10s):

Once we open up these walls that I wasn’t counting on, I’m getting it at such a deal at the purchase price where I knew I could make up for that. And my, in my renovation, maybe the profit wouldn’t be quite as much, but it was still a really good profit where I had a lot of leeway. So I went ahead and signed. I’m signed on that deal and not exactly sure how I was going to pay for that because I think that it was a 10 day close and I had another house under contract that was on track to clothes. I think So that closing was in seven days. So that’s what it was. So then I had this, this three day grace period where if that house closes, I’ll have the cash and then I can fund this wholesale deal.

0 (16m 55s):

So I was banking on that closing. Luckily it closed and it started construction the very next day. And you know, that was a really big renovation. I think that budget was about 85 to $90,000 renovation and that one sold for full ask in three days, wow. The appraisal came back $10,000 less. And so I went back to the agent and I said, I think we need to order another appraisal. I really did not agree with that without a appraisal. I had so many cops in that neighborhood that supported that asking price in what the buyers were willing to pay for that house.

0 (17m 37s):

And ultimately they didn’t want to pay more than the appraise value so that that a contract was canceled. Luckily I did have a backup offer, another full price backup offer during that period and their appraiser appraise it at full ask. Oh wow. Okay. So it’s one of those things where, you know, sometimes you just, you never know what that appraisers going to do sometimes. Unfortunately I think it does come down to the appraiser’s opinion of value. I try to meet all the praisers out of the houses and give them a full list of all the renovations that I did to kind of help justify why this is worth the full,

1 (18m 19s):

Why don’t, why my number, where it’s better than yours. Pretty much.

0 (18m 23s):

Yeah, exactly. So that was my first wholesale deal and ended up being a fantastic deal. And then I did three more deals with that same wholesaler right after that. So, okay. It was scary. I really do think that sometimes if you’re willing to take a bigger risk, I do think that reward can be bigger. So

1 (18m 42s):

Yeah. You kind of threw yourself in the fire there that you’re really have to close it. Yeah. Yeah, no, that’s great. The so I think that’s, that’s a point too. We have often oftentimes of prayers appraisers, whether they’re doing a praising the value of the property for a purchaser or for financing just on that in terms of financing for these projects, is it a, are you raising capital for these deals? Are you using your Capital? Like we always say it’s really a matter of time be, you know, once you start running out of money that you have to start raising it, but how does that work a day on your projects?

0 (19m 16s):

Yeah. I find my project a lot of different ways and that’s something that I’ve really learned this past year or that I can only do so many projects at a time if I’m using my own money. So I have brought in other partners, a lot of them are private money lenders. So these are people that I know. So I’m getting a very low interest rate for the money and I’m not paying them until the property is sold. So it kind of like a balloon interest payment I’m on one deal that I’m currently in. I did bring in an outside investor and the deal was, I found the property. I’ll do everything that I normally do for the renovation, do the full design and I’ll bring in my contractors and then you fund the deal and we’ll do a 50 50 split.

0 (19m 57s):

Hmm. So,

1 (19m 59s):

So you have kind of the Investor and then you’re the operator. Yeah, exactly. So when you, when you have done or when you do more traditional lending from banks, are they going in to the project knowing its a construction project or your, are you making those monthly payments while you don’t have income on the property and you just budget for it?

0 (20m 16s):

So if I’m poor, I have a, a, a, a commercial line of credit. So if I’m pulling from my line of credit, I do have to make those monthly payments and I have to pay that line of credit back within eight months. So these are sometimes they have used this for my rental properties to acquire the property and then I’ll refinance it and pay that line of credit back.

1 (20m 39s):

Yeah. So that, that makes it a certain, sorry to interrupt the So, that would be kind of more of a burst strategy with, with the property. And it is something that is something that you would typically do with, with these deals.

0 (20m 51s):

Yeah. So I do the burst strategy on all of my rental properties and that’s how I’ve been able to get more rental properties strictly because of that Burr. After I get that refinance out, I use that cash to purchase my next, my next a rental property.

1 (21m 6s):

That’s a, that’s a great segue. Why don’t we talk a little bit about, you were mentioning before kind of the transition between flipping and then more of a buy and hold strategy and maybe I’m sure most listeners know, but the burst strategy kind of that, that refinance and kind of holding. Mmm. Why don’t you kind of go into that and how that looked for you on your first, your first buying a whole.

0 (21m 28s):

Yeah. So I purchase my first rental property actually when I was still working out a retail store. So going back just a little bit, I knew that, okay, I can’t keep doing both. I was doing both for almost two years and I thought before I leave the steady income job, I wanted to have a little bit of income coming in every month. So I was able to get one rental property that I still have to this day. And then I just fell in love with the fix and flip model. So I kept fix and flipping and then I got my taxes done and I thought, Oh my gosh, this is so much money that I owe in taxes. What do I do? So then I started getting rental properties to offset the taxes last year specifically, I thought we might start to see a correction and the market is certainly nothing like this.

0 (22m 14s):

I don’t think anyone could have predicted this. Nope, no So but I did want to start building the rental portfolio. So I had taken a condo that I purchased with cash. I had sober it’s buy rehab, rent, refinance, and repeat. So it had already done the first three steps. I bought it. I renovated that I had tenants in place and then I heard of the birth strategy. So I thought, Oh wow, this is fantastic. I already have these three steps. So then I went to the, to refinance it. And so many lenders were saying, well, we can’t refinance it. You don’t have two years of tax returns.

0 (22m 55s):

Oh shoot. So not taking no for an answer kept asking different lenders would ask different investors for recommendations on their lenders. And ultimately I ended up going with a commercial lender who said, no problem. We can do the refinance for you. So it was able to refinance that, hold that cash out and use that cash to buy another single family rental and just kind of repeated that process. And right before Corona happened, I wanted to get more into the multifamily aspect. So, you know, we’re always doing so much work for one single unit. I thought, okay, I can do the same amount of work and have multiple streams of income coming in from this one property.

0 (23m 39s):

So I started looking at everything from duplexes to fourplexes and duplex came up on the MLS. I still find a lot of my deals on the MLS. Love it. Yeah. And it had tenants in place. But what I loved about this particular property was the size of the land. It was zoned for seven units. So I thought, wow, this is fantastic. If I can get this for this price, which is such a good deal, I can build it out. And then we went to the city of Phoenix to make sure everything was zoned correctly. And it was actually zoned for nine units. So it was like, wow, this is even better. So put that under a contract right before Corona happened.

0 (24m 19s):

So the plan was to start that build out right away. I’m now, you know, shifting that a little bit. I have these tenants in place, it’s cash flowing. So I’m just going to keep them in place throughout the end of their lease, start working on the designs and then do the buildout probably ended the year when everything is hopefully back to normal by then,

1 (24m 43s):

Without getting into the weeds too much just in your area. If you want to do a renovation and a tenant and you have to basically evict a tenant to do the renovation, do they have any rights to come back to the space? I know New York state, a Washington, my area, there’s some, some legality that you need to offer it, offer them the space. First. I assume that it’s not the case in Arizona.

0 (25m 7s):

I haven’t heard that, but I also, haven’t had to evict a tenant to start a renovation process. So

1 (25m 14s):

Yeah, I find, I find if it’s, depending on, if it’s a blue state, a red state, you know, they, the tenant, the tenant laws can, that can vary. So that’s interesting. So do you remember that one, the seven unit, what that was going for per unit? What the price was?

0 (25m 29s):

Well, right now it’s only two units, so it’s all, its just a duplex. It’s a single standalone duplex. Right?

1 (25m 34s):

Okay. But then it can be zoned for seven. And in that, in your area, what would be an average? Do you know what an average price would be per a per unit in your area for multifamily,

0 (25m 44s):

For the buildout or for the rent?

1 (25m 47s):

For comps in the area per unit pricing.

0 (25m 52s):

So like, like if I go to sell it. Yeah.

1 (25m 54s):

If you were, if you were to buy an a seven unit or 10 unit multifamily building and Arizona already done rental income or is it like a hundred thousand dollars, a unit, 150,000, a unit just curious what the pricing is like down there.

0 (26m 9s):

Yeah. Well as far, so this would end up being a nine unit, but I wouldn’t sell this one. So basically the plan on this is to hold it. I do have to bring it in Investor to do the build out and then I’ll refinance them out and keep these units for rentals. But you know, I would have to look into that a little bit more.

1 (26m 28s):

You would just hold The you would, I mean that wouldn’t be the best strategy. You’d hope you could renovate whole debt and have that income.

0 (26m 34s):

Exactly. Yeah. So these would not be to sell.

1 (26m 37s):

So why was it Mmm. Why was it important for you to also get, you know, some of those aside from the taxes, but having that a longterm buy and hold as well as your flipping properties.

0 (26m 49s):

There’s a few reasons. I think that rental properties will all, you will always have renters, no matter what economy. I try to keep my rentals at a price point where a lot of people can afford that rent. And I just think, you know, in some areas it is somewhat recession proof. If your, an area is that will always be desirable. So that’s the huge reason. The second reason is to have steady income, a to have, you know, multiple streams of income coming in is always beneficial. And then also, you know, if you think of, if you sell 10 flip’s in a year, your going to make a really good salary that year, but if you kept those 10 flips, I think of what they would be worth 10 years from now.

0 (27m 34s):

So having that appreciation is really huge for me too.

1 (27m 38s):

Yup. So in, in kind of the current environment right now with what you’re doing, looking at the market right now is our, the project’s, you know, you said that construction is still happening, but in terms of MORE acquisition, are you kind of an a wait and see pattern right now? Or are you active?

0 (27m 54s):

Yeah, I’m actively looking, I’ve put in a few offers, but you know, I’m still not seeing really good deals that I can’t pass up right now. I think everyone’s just kind of holding, holding properties if they can think of it, you know, depending on how long this continues, that will obviously be worse for the economy and will start to see more people needing to sell, to get out of their mortgage or out of their situation. So, you know, I think we will see deals if this continues, but right now, at least in Scottsdale there is nothing, that’s a super, like a super good deal that you just can’t pass it.

1 (28m 31s):

Yeah. I feel like every everyone’s kind of holding on right now, just, just playing it safe. See what happens. I think the biggest thing for us has been just working with tenants, trying to figure out how to get through it together. I know people keep saying that, but it’s true. I think you’re trying to work with your tenants. So they pay rent, you pay your mortgage, everybody can get through it. I wanted to talk a little bit about just your experience in real estate. I have another podcast today with another, a female rock star, real estate investor named Sarah. And I’m curious about, you know, I know it’s, it’s scary going through real estate. Like my experience when you are learning everything on the go you’re experiencing new things. You have people that are very varying levels of success as a man.

1 (29m 15s):

And I’ve, I’m always curious as a female going through the construction trades and real estate in general, how has that path been for you? And has it been something that, you know, has been challenging that you’d have you had to work through? Whoa, what’s that experience been like?

0 (29m 30s):

You know, it’s kind of a mixed, mixed feelings at a lot of times. I don’t even think about it. I’m very used to being the only female on the job sites. And I think that just comes with the territory where it still is a very male dominated field, but I think that that’s why for me personally, it’s so important that I learn different trades. So what I’m talking about, something, I know what I’m talking about because I’ve done it, you know, and what I’m on the job site and if I’m doing a DIY project or whatever it is, and my contractors see me working right alongside of them, it really does help to build a certain level of respect. And I’m not walking on the job site, telling them, you know, just giving orders and I’m really interested in what they’re doing and I’m interested in learning.

0 (30m 16s):

So usually I, if there’s a new tradesmen, you know, working on something that I haven’t seen before, I’ll take the time to ask him questions. So I do think that knowledge really is power. And when you have knowledge, it helps build your confidence. So I think that that’s really important and yeah, I guess that would be my biggest. That’s cool.

1 (30m 39s):

I think it’s, it’s also cool too, because it’s like, it’s not just real estate construction and it’s almost like you, you can make it work to your advantage in that it’s because it’s, it’s more rare to see kind of a female running a job site or in the construction space. It’s kind of part of your brand almost. Yeah. So for, I was just curious, we wanted to talk a little bit about the Beckmann house. Is that, is that you’re design company or is that the flipping company? How does that, how does that all work?

0 (31m 7s):

Yes. So basically Beckmann house started as just my flipping company So and then through Instagram I have been taking on a lot of client projects as well. And so it’s run under the Beckmann house name, but it’s, it’s a different entity, so yeah, it’s kind of it’s one in the same as far as Beckmann house is concerned.

1 (31m 29s):

Okay. So I’d be remiss not to talk about this because your, your unique in the sense that you’re an investor you’re working in construction, but also like your Instagram page is insane. Like it’s beautiful, like these renovations, but it’s also like you’ve got quite a, quite a following. How, how, how was it, was that journey all through real estate or was it a mix?

0 (31m 49s):

Yeah, no, all three, a real estate. So I’ve had Beckmann house Instagram probably for, I don’t know, maybe three years now. And it really was a slow growth at first. And I started to see it kind of a snowball once I really started posting more before and after As. And especially when I started posting more of my activity on the job sites. So when I would do more DIY projects, I would absolutely see a gain in followers. And I realized people really like to see things that are relatable. Those are always my best posts. So it’s not usually that luxury renovation that sees the most activity it’s post where someone says, Oh, I have that same layout.

0 (32m 30s):

I have that exact same bathroom layout. This is what it could look like. And, and it makes it feel more achievable and, you know, So more achievable, more relatable you and I think everybody kind of likes, likes to feel that, Oh, I could have that.

1 (32m 46s):

Yeah, for sure. And I think there’s something about the satisfaction you get when you see a before and after picture its just like immediate gratification, but it took you probably months.

0 (32m 56s):

Yes, definitely.

1 (32m 58s):

If we circle back too, you know, we, I ask you a little bit about the book’s you may have read at the beginning of your kind of path in real estate or the Resources that you had used it at the time now that you fast forward to where you are in your career today, is there a certain podcasts or a certain books that, you know, you would tell somebody that’s just breaking into a, whether it’s flipping or a real estate in general, what would you tell them to get as a I’ll put, put on their reading list or, or a podcast list?

0 (33m 25s):

So, I’m huge into a podcast. I’m always listening to podcast when I’m on my way to job sites, when I’m coming home, when I’m getting ready for my day. And I didn’t even learn about the BiggerPockets podcast until two years into my real estate journey. And that’s when you know, it was a huge light bulb and there were so many amazing takeaways that I took from every single Podcast So to this day. And the BiggerPockets is one of my favorite podcasts, but I’m also very much into your mindset. And I think As an entrepreneur. It is so important that you are constantly evaluated where your mindset is. There is going to be days where you’re gonna have ups and your gonna have a really bad downs.

0 (34m 8s):

And So to be able to pull yourself out of that is very instrumental in, you know, making sure that you stay successful. So I love Ed my Let. He is, has a lot of freight. Yeah. Just so many great podcasts that are very motivational and a what else let’s see. I’m always looking for good mindset.

1 (34m 31s):

Are you M school of greatness with a Lewis house or success talks? I think success magazine had, you know, it’s funny, it’s funny that every time we talked to somebody in real estate, other is always that a commonality that people that are in investing in real estate oftentimes will listen to this exact same mindfulness mindset. And just kind of like that idea you were saying earlier in the podcast, I didn’t take no for an answer. Like the average person doesn’t talk like that. So I think that’s, that’s great. Ed Mylett I was really lucky to meet him in Vegas two years ago and he’s, he’s exactly like, he’s almost so genuine that you think it’s like, it’s some sort of like act and it’s, he just is a genuine person, but yeah, that’s, that’s great.

1 (35m 16s):

And in terms of, are there any books that you’ve had, you know, that was a light bulb moment or is it more kind of new media for you?

0 (35m 23s):

You know, there’s a lot of books that I, that I really like as far as for beginners in real estate that kind of walk you through the process. I really like truth or comfort by John Troutman. It kind of just, again, walks you through all the basic real estate investing techniques. And I really did enjoy reading Rich Woman by Kim Kayosaki so this is Robert Kiyosaki’s wife. Robert is of course, rich dad, poor dad author. And she kind of tells you her side of the story about how rich dad poor dad came about and being a woman in that industry. And those are probably some of my favorite real estate books for beginners.

0 (36m 3s):

But honestly, it’s just been a lot of, I also like the one thing that’s not a real estate book, but you know, it’s kinda back to that mindset and honing in on the one thing. So, you know, really anything motivational and entrepreneurial I love reading about, I also really enjoy talking to other entrepreneurs and seeing how their mindset works.

1 (36m 26s):

Yeah, for sure. I think that’s one thing too. That’s really great about the BiggerPockets community’s that you can go on a forum, you have some weird, unique question that you don’t think anybody, anybody else has that problem and 30 other people have posted about it. So yeah. No, that’s great. So if people were to find you online, whether it’s kind of seeing sr your progress, just connecting with you, what would be the best route for them to, to you?

0 (36m 52s):

They can email me Kara at Beckmann house or Instagram is always a great way to reach me as well. And that’s just at Beckmann house.

1 (37m 2s):

Okay. Simple enough. Yep. My guest today has been Kara Beckmann Kara thanks for coming on.

0 (37m 8s):

Thanks Jesse for having me

1 (37m 11s):

Favor listening to the Working Capital Podcast my goal is to help individuals break into real estate investing as well as educate experience in investors. If you enjoyed the show, please share with a friend subscribe and give us a rating on iTunes. It really helps us. If you have any questions, one to learn more or likely to cover a specific topic on the show, please reach out to me via instagram@jforgalsorheadtowwwdotjessefragale.com. My name is Jesse Fragale and I’ll see you back here for the next episode or the working capital real estate podcast.