KJ VanDerwerken is building a real estate empire – Business
Real estate investing has produced 90% of the world’s millionaires. The other 10% was created by starting and owning your own business. This prompted entrepreneur KJ VanDerwerken’s decision to combine the two when he opened his real estate investment firm, VanDerwerken Properties, in 2013. Since then he has built his business and a real estate portfolio worth well over a million dollars.
There are several aspects of real estate investing that interested and prompted KJ to start his company. In a conversation with the entrepreneur, I was able to get to the bottom of him and delve into the many reasons for his success.
The first is through appreciation of the home. Buying a property in the right area at the right time can create great wealth over time alone. Multiple studies have shown double-digit year-over-year home price growth for 2021. In the last five years, the current portfolio of VanDerwerken properties has grown by 80%. This was caused by low housing supply combined with high demand in cities like Charlotte, NC, where VanDerwerken Properties operates. Historically, homes have continued to appreciate in value creating a tremendous opportunity for those who simply decide to buy real estate.
The second is equity, which is built up through rental income. If you decide to rent, you benefit from short-term flexibility. That’s a massive trade-off, though, if at the end of the year you’re not getting back any of the money you paid for living there. As a homeowner or investor, when you sell your property, you get back the money that was paid on the mortgage. By investing in a cash-flow positive rental property, your tenant will pay off their mortgage every month. Over time, you build your equity in the property while using someone else’s money.
Next comes cash flow. After you pay the mortgage, you can keep the remaining rental income. This cash flow can be saved and used to solve property problems. As the owner, you are responsible for maintaining the property. Unfortunately things will happen and items like carpet and paint will need to be replaced or updated. Cash flow can help. It’s also great for saving and using for other investments. The more cash you have, the more options you have to buy. The more cash flow real estate you have that can create a nice stream of passive income if managed properly.
Finally, the tax benefits of real estate investing can be very beneficial. Expenses such as property taxes, mortgage interest, and the cost of maintaining and repairing your property can be deducted. Depreciation costs over time can be taken into account.
As the owner of VanDerwerken Properties, entrepreneur KJ VanDerwerken was able to morph into the above statistic and achieve millionaire status through his real estate investment business. He plans to further expand his company and real estate portfolio. Follow him on https://www.instagram.com/kjvanderwerken/ as he continues his journey.
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