The Value Of Appreciation


west coast of Florida purchased for $42,000 in 2004, which has a current value of $113,000.

The rental income from the couple’s investment properties covers only the mortgage costs and taxes, while the plots of land do not generate any income. However, the couple emphasizes that they are holding their properties for equity appreciation value. “We want to hold on to our [real estate] assets because we see them as a way to build wealth.” Nedelka says. “For us, our properties are our future, and they’re something we can pass down to our daughter.”

With Nedelka’s income, Brandon was able to leave his job in 2004 to obtain his real estate license. He worked for the RE/MAX and Keller Williams real estate firms, learning what it takes to be a good real estate investor. In 2004, he made $50,000 from commissions. In 2005, he made another $25,000 in commissions before stopping to concentrate on a new venture.

Brandon wanted to establish an additional income stream for his family since the real estate market has cooled off. Using $50,000 of his commissions, he launched The Entrepreneur’s Source, a franchise operation that helps people start their own enterprises by connecting them to franchisers or other business opportunities. “We want to have enough investments and to be financially free in our senior years,” he says.

The couple offers this advice to those who want to build wealth through property ownership:

Let properties appreciate. The Phillipses don’t flip properties. Since they bought their first home in 2000, the value of their properties has appreciated more than $600,000. “Hold on to properties for as long as possible,” says Nedelka. “You’ll see the benefits farther down the road.”Work together to build wealth. Brandon says married couples should be willing to compromise if it makes financial sense. “Ours is not the traditional home, where I, as the man, am the main breadwinner,” Brandon says. He has taken over more of the domestic duties while Nedelka’s salary covers living expenses.Take control of your financial future. “Corporate America has changed. Job security is scarce,” Brandon says. “Find [an entrepreneurial pursuit] you enjoy, even if you have a job, and give yourself more options for building wealth.”


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