Yeah, this could be your biggest expenseespecially if youre renting or if you go out and buy your dream home right out of college like some people. And my rents were $1150 from the other side and $550 for my side. Its unlikely. So the best place to find me is actually on Bigger Pockets. And youre kind enough to send it to me. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. A rare picture of Scott Trench with his wife. People doubling their income in a corporate type situation, its not heard of. And thats when I found your show, some time in that timeframe. So lets dive in! I definitely still have some work to do to get to there. Scott Trench Mar 21, 2017Mar 16, 20218 min read In this article I just talked to a lender that prequalified me for over $1 million in financing. I wish that people knew that real estate investing is a double-edged sword. I think that its increasingly difficult. The next phase is getting that first $100,000. And so, if you cant sell, then your only option as a homeowner or a house hacker that hasnt bought a property that would make sense as a rental is to continue living on the property and paying it. I want to say it was probably November or December of 2013 is when I actually listened to your show and got this all kicked off. Cash obviously, but what else would apply as a real asset? So, thank you for that. But when youre putting yourself into a position to take advantage of opportunities, and you do have options, and you do have that buffer (like that first $25,000 that we talked about), and youre able to take advantage of things that other people cant, and then yeah it may look lucky after the fact. Mad Fientist: And you could do it while youre on the clock. - What else would be considered an asset in his model? So thats not scalable. And then, we kind of move into more niche topics with future guests. Mad Fientist: Very cool. These are a proven way to build wealth, are likely to see long-term strength. And Erin Chase is an expert grocery shopper. Trench has focused his career on. Of course, that logic works both ways; and, if interest rates come back down quickly, these types of investments might perform even better. Scott Trench: One of the great things about house hacking is its a huge spectrum. Total Audience Reach (Twitter, Instagram, YouTube and TikTok). Amara Trinity Lawrence: Know about Martin Lawrence Daughter? This is a loan at the best rates available. He serves as a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. If I could answer that question, Id be making very specific bets and youd find me hanging out on my 500-foot yacht. So was that your first property then, the duplex in Denver? I mean, that obviously worked out for you, Brandon. So my first job was at a Fortune 500 company as a financial analyst 1. Scott Trench was born in the United States in September 1990. Thanks for the podcast! Mad Fientist: Wait, let me interject. And yeah, back in my poker-watching days, I remember Annie Duke very well. Andrew Ross Sorkin - $10 million even while working full-time, earning a median income, and making up for a negative net worth. A family that reached financial independence while raising children. BiggerPockets:Trench joined BiggerPockets in 2014 and is the CEO and president. He earns his wealth from his career, therefore, he has amassed a fortune over the years. Throw all your additional cash into index funds, model it out using whatever percentage return youre comfortable with. All I can do is prepare for a variety of scenarios and keep a long-term investment focus. And thats why I really like how you laid out the book, is because its like, Okay, you may not have that much money to invest and you may feel like its a long way out. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. And then, the rents are about $2600 a month. This is whyI was already fairly frugalThis is why Im saving. And so, its all about increasing your odds of success I guess at this point. Im on a lot of social media, but I dont ever check them. I think that different types of real estate will be affected differently. If somebody is interested in getting started in house hacking, what would you recommend as far as getting duplexes? So, I mentioned your podcast briefly, but I definitely want you to talk about it because your co-host is one of the people that has been on my show probably more than anyone else. On the flip side, wealth inequality skyrocketed as asset prices inflated with low interest rates. I still did fine and made it in my 40s but my maturity was late out of the gate. Also getting some buy to lets in Glasgow, all with the funds from the limited company I run as a software consultant. Ive never been to Colorado, and I love mountains. I really appreciate it. It has really motivated my fiance and I to take the next steps towards financial freedom. You have no ability to even attempt to put yourself to put some money on that or take the shot on that new career or whatever. So, you might need $25,000 in total cash, liquidity, to finance your $2000 a month lifestyle. So, the Bigger Pockets Money Show started as kind of a spin-off, an alternative to the Bigger Pockets I guess real estate podcast. But thats a huge improvement from paying hundreds or thousands of dollars in rent per month. And I think I can read my opponents as well as I can to feel comfortable with those odds and set myself up. I wish I had my act together as much as Scott does when I was his age. I just mention I have the three properties. And yeah, youre 27 and youve done a ton of crazy, amazing stuff so far. I know a lot of people that would be happy with a raise of that level. Its like a 1% interest rate. But that was not going to get me expediently towards my goal of a several hundred thousand to a million dollar net worth and several thousand dollars a month in passive cashflow. marion dupont scott net worthNitro Acoustic. And yeah, your last name is Trench, and you want how many trenchlings? Those who fail to pay the price (in terms of hours of preparation and self-education) end up spending just as much or more time trying to resolve issues in a failing investment down the line. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). So, I definitely have some higher financial goals than kind of like lean FI for me and maybe like one significant other. And then, they both were co-hosts on my show with me on episode #38. He is the founder and CEO of BiggerPockets.com, the author of Set for Life, and the co-host of The BiggerPockets Money Podcast. He hosts a podcast called BiggerPockets Money.. 2. It cost me $1700. I was at a 50% savings rate before I got married and had a kid and bought a house. Yet, it is also a dangerous game where, as investors, we play with big numbers and assume legal, operational and financial risks. Mad Fientist: Absolutely! Although his salary was less than $50,000, Trench took on an aggressive saving strategy and had enough to put a down payment on a $240,000 duplex in just a year's time. And theyre fine with that. And so what Im trying to do with Set for Life and with some of the other things Im doing is try to help people put themselves into a position where theyre saving enough, where leaving a career track like that where they have very limited upside becomes the bigger risk than taking a chance on something that they believe to be a good opportunity. Have you made any mistakes, or is there anything you would do differently if youre starting from scratch now? Mad Fientist: And I really think you make your own luck too to an extent as well. And once you have that financial runway, moving into step two here, were trying to get to about $100,000 in investable liquidity. Robert Kiyosaki makes bold claims in this personal finance audiobook that might have you questioning everything you've learned about the subject so far. Its written for a median income earner that is starting with little to no assets but wants financial freedom. That's $1 MILLION. And I think that goes right along with what I just said before, its about increasing your odds of success, but understanding that some things are out of your control alongside that. Listen to the Podcast Here Watch the Podcast Here Help Us Out! And this is something that I really am looking forward to diving into today in the interview because I think its a really powerful way to make the journey to financial independence not as daunting. Mad Fientist: Very cool! But youll need about $48,000 to finance your $4000 a month lifestyle. She and her husband interviewed me in #26. Building wealth is always possible, even while working full-time, earning a median income, and making up for a negative net worth. We were fortunate enough to get the good advice from someone who actually did this since 70s and retired a multi-millionaire in 90s (in bay area, which is quite a feat), and perfect timing too (he told us to buy in 2010, when no one would touch real-estate since the 2008 crisis). Poker players, at least the ones that are really good, have this really good outlook on things where theyre like, Hey, heres the hand Ive been dealt. So without further delay, Scott, thanks very much for being here. David Greene shares the exact systems he used to scale his I started my investing adventure as a pimple-faced 22 year old when I bought my first house/investment with $22k and that has laid the foundation of my FIRE journey in my 40s. Mad Fientist: Nice! We, AOL, are part of the Yahoo family of brands. I was listening to your podcast (which well obviously talk about here soon as well). Just search my name in the search bar, Scott Trench. Scott is the CEO of BiggerPockets.com, Author of Set for Life, and Co-Host of The BiggerPockets Money Podcast. Scott Trench: Yes. If I ever make it out to Scotland, Ill have to come and check it out. Scott Trench is married to his lovely unnamed wife. $2,650 at NET-A-PORTER. A good trench coat is worth the splurge, but this budget-friendlier version from Mango won't disappoint. Theres a lot more factors. Im planning to invest in funds and a pension too, although most of the FI advice I found on Internet is US related so Ive been spending a while translating everything to ISAs, SIPPs, etc. And if they lose, youve got to be able to not tie the result of losing that hand with Hey! They feel that they are all politicians and wont allow the economy to slide. If Im (Fed Chairman) Jerome Powell, my task is clear: Beat inflation. He hosts a podcast called "BiggerPockets Money." Education: He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. You can click on the 'unsubscribe' link in the email at anytime. And now that Im there, I guess I technically lean FI, but I have more work to do if I want to get to the point where I can support maybe an upper middle class lifestyle in a good school district and a family one day. Information about his parents and/or siblings is not available at the moment. There needs to be more FI conversation for those with children. Category: Books Share this article: Money Advice From Experts Top Money Advice for Periods of Inflation But if youre starting from that point, you dont really have the option of going out and starting a business because youre working full time and starting a business is hard work and unlikely to be successful on a part-time effort in the short run. But you wrote a great book called Set for Life. Obviously, some chance plays a part. And theyre profitable. Starting with little-to-no savings, he was able to work his way up to his first rental, his second, and now his thirteenth. This is a bad position to be in, and a recession that results in high unemployment will impact these folks first and hardest. And you mentioned in the book something called scalable careers, which thats a great phrase that I dont think Ive really heard before. . And shes a poker player. Mad Fientist: How is that going in Denver? And I definitely recommend everyone to check it out. Another approach that I also use is real estate investing. Fun, entertainment, healthcare, insurance, all of that falls into that last third. You have to live there until things appreciate or rents go up, or the property goes up and you either have to be able to sell it or live there happily. So, do you think you stumbled upon it shortly after it was published or was this something that happened a little bit later. Well, the reason is because Chinese companies all the timeI dont know about this one in particularlie about their financials. Rich Dad Poor Dad: 20th Anniversary Edition. So I really like how you structured it. Thats awesome. And the first phase was getting that first $25,000. So yeah, I really enjoyed it. Scott Trench: So the quadplex that I purchased, I bought it for $355,000. Buy, Rehab, Rent, Refinance, Repeat is the five-part BRRRR And the reason for that is because they have no cushion. Mad Fientist: Wow! When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. His net worth is estimated to be $1.5 million. Im not so sure. Mad Fientist do you agree, that in UK its harder to make this work? Scott Trench is the CEO and President of BiggerPockets. Scott started acquiring more properties as he worked with Josh and later became such a crucial part of the BiggerPockets family, he was promoted to president. And any time Mindy gives such a glowing recommendation for someone, I definitely check them out. Is Scott Trench Married Yes. So, I think that youre absolutely right to have a passion project, whether its personal finance-related stuff or a podcast or a blog or a project or a business in something else that you just want to work on with your free time. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). But on the other hand, if I wasnt saving, if I had no financial runway, it would be too risky to leave. Congratulations! Scott Trench: And I do it while Im on the clock. Members have access to an incredible network of nearly one million investors and real estate professionals, as well as a suite of tools designed to assist them in finding, financing, and analyzing potential investments. I could continue living in that property happily forever, I could sell it at a gain alongside all the other homeowners in the area, or I could rent it out. If so I was hoping to get some advice on a few questions I have in regards to it: - When he talks about real assets what all applies in this model? If you dont have that option, then you are stuck. I think its going to take me a good bit of time here. 3. Trench is the author of the 2017 book Set for Life. And how does the duplex compare to the quadplex? However, like Scott said, it is absolutely critical to keep positive cash-flows (rents must cover mortgage payments + HOA + property tax, with backup plans, like moving in to the property yourself), weve seen people end up having to sell in down market when losing the job or can no longer subsidize the negative cash flow, therefore cannot reap the long term appreciation or refinance to lower rate, etc.. Wow thanks for sharing. I appreciate it. Scott Trench: Yeah, absolutely. 2023 GOBankingRates. It's free. So, for example, a house hack the way I look at it through my lens was I bought a duplex for $240,000 here in Denver in about late 2014. Scott breaks down the journey to financial independence into three stages and explains what you need to focus on at each step (and why)! And yeah, the main focus in that first $25,000 is frugality, which as you talked about in the book, a dollar saved is better than a dollar earned because obviously youve already paid tax on that dollar that youre saving, and its worth more to you than a dollar earned because you would pay a bunch of tax on it and have to do work to get it. Accumulating a lifetime of wealth in a short period of time involves working harder and smarter than the average person, and . While there, Scott served as a captain of Vanderbilt University Rugby Football Club. So you mentioned your first $25,000. Trench joined BiggerPockets in 2014 and is the CEO and president. And thats hopefully when you make all your mistakes and learn all those lessons. When I started on the road to financial dependence, thankfully, I was already in stage three. And so, I put down 5% with an FHA loan. But also, a dollar saved, at least a dollar of lifestyleyou know, if you can reduce your average monthly spending by a thousand dollars, thats better than increasing your average monthly income by a thousand dollars for a couple reasons. So, I spent all my money throughout the rest of my college, all the money I saved up working in summers and all thatall fun in college, and then a three-month backpacking trip when I graduated. Scott Trench: Yeah, you know, I had the good privilegeand this is not like an intelligence thing. I think that investors should avoid investments that are time bound. You may not be able to change your lease, you may not be able to start biking to work tomorrow. Scott Trench: Yeah, Im 27. Those who buy in desirable locations in markets with strong long-term growth prospects and responsible amounts of leverage (or with all cash purchases) are likely to see a very satisfactory return over the long term, relative to other asset classes. 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About his parents and/or siblings is not available at the best place find. Search my name in the email at anytime types of real estate broker, and you want how trenchlings...

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