Building Computers to Real Estate Exec
Investor Profile – Sheila Konecke
Graduate of the Massachusetts Institute of Technology. Chemical Engineer. Successful real estate executive. Real estate investor.
These are just a few of the words to describe Sheila Konecke, a HomeVestors business owner in the Washington, D.C. metro area. Her company, K2NC, LLC has bought over 400 homes to date, and there is no slowing down for this former chemical engineer.
Konecke graduated the Massachusetts Institute of Technology with a B.S. in Chemical Engineering in 1980. She then began her corporate journey with IBM “building computers,” which is an understatement considering that while there (and with subsequent companies) she filed for patents to protect several inventions her and her teams created.
In 1999, while still entrenched in the corporate world, Konecke attended a three-day class to learn how to buy and flip houses. During the next seven years, she bought fourteen houses. The only problem was she realized she could not buy properties at low enough prices to maximize her potential. Enter Eric Konecke, her brother!
In 2006, Eric introduced Sheila, a single parent who lost her ex-husband to cancer, to HomeVestors. Together they bought their first franchise in the Washington, D.C. area. They were both attracted by the recognizable name brand, the built-in advertising and marketing programs, and the strategies and systems for buying homes. From the outset, the sister-brother team followed the HomeVestors’ proven systems and never questioned them. They bought their first house even before doing any advertising!
Jumping Ahead
Sheila Konecke retired from her corporate job in 2016, after thirty-six years of working as an engineer with IBM, BAE Systems, and a few other corporations whose significant scientific contributions we take for granted.
To date, the Konecke team has made over four hundred deals and buys between 30 and 45 properties per year. Sheila estimates that 80% of the homes are flips, 10% are buy-and-hold, and 10% are wholesales. In 2019, they began acquiring Airbnb’s and now own four in the DC and Baltimore areas. They also bought a second franchise in Baltimore.
“The Washington, D.C. area is great for investors,” according to Sheila, “while Baltimore is very different. Baltimore has lower price points and a slower appreciation rate.” And both markets are different from Los Angeles where her son is a real estate agent.
Sheila also works as a Development Agent in both Washington, D.C. and Baltimore. In this capacity, she coaches other franchisees about the local market, how to approach and work with sellers, and how to build a network of vendors and contractors. She also advises them on strategies for rehabbing houses that will help them maximize their ROI. “Most importantly, I let them know what not to buy,” Konecke said.
Lessons Learned and Some Advice
When asked if she made any real estate decisions over the years that she regretted, Konecke shared her 2007 Great Recession story. “In 2007, we had twelve houses in the pipeline. The ‘Great Recession’ was starting in earnest. We sold some of those houses and broke even, some of them we held as cash flowing rentals, and 2 of them we took a huge loss on. In retrospect, we should have kept all those houses or as many as we could.” And her advice for people getting into real estate: “People fail in real estate because they don’t have enough cash. You either need cash or ready access to it.”
Analytically spoken!
HomeVestors
What exactly does it mean to be a HomeVestors® business owner? Owning a real estate business is life changing and naturally comes with risks! When you become a HomeVestors business owner, you get immediate access to motivated seller leads, financing resources for qualifying purchases and repairs, one-on-one coaching with your local Development Agent, proprietary software for analyzing properties and deals, and access to a nationwide network of coaches and peers. Your house-buying business is yours and you run it as your own venture with a focus toward your individual business goals.
If you are interested in a franchise, call 855-454-4578. Each franchise office is independently owned and operated.
