Real estate investing has created 90% of the world’s millionaires. The other 10% was created by starting and owning your own business. This led entrepreneur KJ VanDerwerken to combine the two when he opened his property investment firm VanDerwerken Properties in 2013. Since then he has built his business and a property portfolio worth over $1 million. of dollars.
Several aspects of real estate investing interested and inspired KJ to start his business. By chatting with the entrepreneur, I was able to probe his brain and immerse myself in the many reasons for his success.
The first is through home appreciation. Buying property in the right area at the right time can create great wealth with time alone. Several studies have shown double-digit year-over-year house price growth in 2021. Over the past five years, VanDerwerken properties have seen their current portfolio grow by 80%. This was caused by low housing supply, combined with strong demand in cities such as Charlotte, North Carolina, where VanDerwerken Properties operates. Historically, homes have continued to appreciate, which creates huge opportunities for those who simply choose to purchase real estate.
The second is the equity constituted by the rental income. If you choose to rent, you get short-term flexibility. However, it’s a huge trade-off when at the end of the year you get none of the money you paid back to live there. As a landlord or investor, when you sell your property, you get back the money that was paid for the mortgage. By investing in a cash flow positive rental property, your tenant pays off your mortgage every month. Over time, this increases your equity in the property while using someone else’s money.
Next comes cash flow. After paying the mortgage, any remaining rental income belongs to you. This cash flow can be saved and used to resolve property issues. As the owner, you are responsible for maintaining the properties. Unfortunately, things will happen and things like carpeting and paint will need to be replaced or updated. Having cash can help. It’s also great to save and leverage other investments. The more money you have, the more opportunities you have to buy. The more cash flow properties you have, the nicer passive income stream you can create if managed properly.
Finally, the tax advantages of real estate investment can be very advantageous. Expenses such as property taxes, mortgage interest, and the cost of maintaining and repairing your properties can be deducted. Depreciation costs over time can be taken into account.
As the owner of VanDerwerken Properties, entrepreneur KJ VanDerwerken was able to transform into the above statistic and achieve millionaire status through his real estate investment business. He intends to continue to grow his business and his real estate portfolio. Follow him as he continues his journey at https://www.instagram.com/kjvanderwerken/
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