Appreciation (n): to increase in value.
I want my life to appreciate more than my real estate investments and my other businesses.
Most real estate investors who have seen appreciation have done so on individual properties and/or entire real estate portfolios. I’ve witnessed it on my own properties.
I have since been running my other businesses to appreciate, and as of most recent I’m making sure my life appreciates too.
In 2013 I bought my first property and began my real estate journey. The journey I first discussed with Prsuit back in December about how I went from clueless college graduate to $13MM in real estate in 4 months. It was a four unit. Eleven months later I picked up the four unit next door to the first. Combined price: $380,000.
They appreciated. Yes, value was added. Remodels and makeovers were done by a great team. Yes, rents went up because of those improvements, and also because of the bounce back in the market.
With appreciation, in 2016 the buildings had a new value of $450,000. The debt on the buildings had been paid down to $300,000. And the buildings were now valued at roughly $450,000. The bank always wants a minimum of 20% in the deal – we were able to take a new loan of $360,000 (or 80% of the $450,000 value). The old mortgage of $300,000 was paid off using the $360,000. We then had $60,000 in pocket that goes untaxed – wealth isn’t taxed, income is. That is how I had an amazing year in real estate investment in 2016. That $60,000 was reinvested to build more wealth.
Another year later, in 2017, similar properties to the original two have sold for $560,000 – that’s appreciation. I am currently in the process of adding 1 and 2 more zeros to the end of those numbers!
Since directly benefiting from appreciation in real estate, I chose to run my other businesses with the aim of them appreciating.
I’ve yet to take a salary from my businesses. I take out what I need, to pay the basics. Until I am 29 or 30, I probably won’t choose to draw a salary greater than $1,000 from my property management company. Why? I want to pour those dollars back into hiring and keeping the best talent around me, to my team, to technology to run as efficient as possible, to scale a nationwide, and worldwide company. I’m determined for my businesses to appreciate despite the economy. They are appreciating.
All this talk and thought of appreciation towards real estate and business is great. But there have been many things going on in my life in 2017. Building new relationships, loosing people in my life and attending their funerals, seeing old and new friends get married and starting families. It’s soaking in the time that is flying by – really, really fast. Anyone at anytime can be gone in a blink of an eye.
This is why, more than anything, I want my life to appreciate.
In my mind, the best way possible to increase your life’s value? Easy.
As hard as it can be on some days.
Every single day I first choose to be grateful and happy – no matter what.
I choose to always forgive, but never forget.
I choose to not dwell in the past.
I choose to immediately pick my foot up and move it forward no matter what.
I choose to treat others better than I’d ever want or expect to be treated.
I choose to smile, wait and hold the door open at 5:30AM when walking into the gym and see the old couple walking 40 yards behind me.
I choose to give more than I ever receive.
I choose to tell my family I love them (and mean it) after every conversation in person, on the phone, etc. – there aren’t going to be any regrets.
I choose to pour into, strengthen, lift up, cheer on, and love those around me.
I choose to make other’s lives appreciate too.
I believe the way I live my life, is the reason why the businesses have grown. It’s always about the people. That’s how I choose appreciation.