Scott Trench. Start tracking your own financial progress with these money management apps. While there, Scott served as a captain of Vanderbilt University Rugby Football Club. Last, I think that your small mom-and-pop investors are likely to be affected. Your email address will not be published. Scott Trench: Yeah, Josh has definitely kind of achieved the dream here. But if youre able to start increasing that savings rate, you accumulate this cushion, this what I call financial runway and set for life which allows you to live without the need for wage-paying work on that. I plan to buy a fourth by, if not by the end of this year, by the end of 2018, by at least kind of spring 2019 to just kind of continue my system. more attainable than ever. But Ill be sure to send you that link, so listeners can go ahead and click on that in the show notes. So, it sounds like you havent made any sort of mistakes or youve been on such a very amazing path seemingly as soon as you got your career? Scott Trench: One of the great things about house hacking is its a huge spectrum. They both live in Denver, Colorado. At the time that were recording this, Im finding it very difficult to find properties. And it currently rents for $1400. Now, of course, you cant make any bets in the first place if you have no wealth and spend all that you earn. But you can next week go to the grocery store, plan out your meals, and save a few hundred bucks on your eating billand eat healthier and bring that advantage into your life. Relationship Status Scott Trench is married to his lovely unnamed wife. But for those who may not have heard that episode, could you just describe what house hacking is? marion dupont scott net worthNitro Acoustic. This is whyI was already fairly frugalThis is why Im saving. I dont remember. . 'A lot of people are angry at me today but I haven't yet heard anyone disagree,' he told his 867,000 followers. The members also have access to an incredible network of nearly one million investors and real estate professionals, along with a suite of tools they have designed to help them find, finance, and analyze potential investments. Here I am today after a string of I think good decisions and good fortune accompanying them, but I look back, and Im like, Im not sure which one of those was a bad decision where I got lucky. I think they were good decisions and I got lucky if that makes any sense. What are the best types of real estate investments to make in 2022? So I really like how you structured it. Obviously, some chance plays a part. Scott has dedicated his career to helping ordinary Americans build wealth in part through real estate investing. All the index fund investors were seeing strong returns. So, its kind of the opposite of FI at this point. And their market cap is $50 million. And once you get to $100,000 in investible liquidity, now how you invest that money begins to become really important. Yet more reason for Powell and the Fed to go after inflation with a single-minded focus. What about equity in rental properties or home equity lines of credit (extremely cheap money that can be used as a down payment for more properties). And then, they both were co-hosts on my show with me on episode #38. And shes a poker player. 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. And I couldnt agree more that also should be a very important focus for you because if you just work so hard to financial independence, and then have nothing to work on after, nothing that gets you out of bed or gets you excited about starting your day once you reach that point, youre going to probably be pretty miserable and may want to go back to work. And Erin Chase is an expert grocery shopper. that is a huge expense. Thats MadFientist.com/advice. They have nothing to fall back on. If you lose your job, youre screwed! Have you made any mistakes, or is there anything you would do differently if youre starting from scratch now? And I wanted to do a little bit more than maybe invest in index funds again which is kind of a standard 8% to 10% long-term average return. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). 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Credit Repair Explained: Should You Pay For Help? Yeah, can you describe that again? Scott Trench: Yeah, Im 27. You can change your choices at any time by visiting your privacy controls. Melissa joined CNBC in 2004 where she serves as a reporter and an anchor. I think a 50% percent savings rate kind ofget to a median income, and then get to a 50% savings rate. If Im (Fed Chairman) Jerome Powell, my task is clear: Beat inflation. I know a lot of people that would be happy with a raise of that level. Or maybe you can just send them over, and Ill put them in the show notes in case people want to know more? Your email address will not be published. And thats a Corolla. What do most people not know about real estate investing that you wish they knew? And I knew that my salary at financial analyst 2 would be about $56,000 to $58,000 (again depending on performance). Theres so many different ways to make money that dont cost anything but your time, and maybe a few hundred to a few thousand dollars to try out. Your first guest was the same first guest that I had way back in 2012, Mr. Money Mustache (which was a great episode). Scott Trench: Yeah, I think thats huge. The next phase is getting that first $100,000. And then, the rents are about $2600 a month. Our opinions are our own. In addition to his career, Scott is the author of Set for Life which was published in 2017. Mad Fientist: Very cool! So if youre following that, I was collecting $1700 in rent on $1550 mortgage. He hosts a podcast called BiggerPockets Money.. Accumulating a lifetime of wealth in a short period of time involves working harder and smarter than the average person, and Scott Trenchinvestor, entrepreneur, and CEO of BiggerPockets.comdemonstrates how to . And I do she does a lot of private lending and other various kind of creative ways to invest and maybe get a diversified or different or higher returns than she can with just stocks. The author, Scott Trench, has some very wise . 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). I bought my last property in June 2017. But do have any other questions about the. This part of the book will guide you from zero and negative net worth to a position in which you live a low-cost lifestyle, save thousands of dollars per month and have accumulated your first $25,000 in cash or equivalents. Scott Trench: And particularly in terms of appreciation and real estate and stock markets. And everybody knew this except for me. And this is the real power of it in a non-financial sense. So, Im trying to buy one every 12 to 18 months and just sustain that system. Ive received a lot of great answers over the years so I decided to compile all those answers into a PDF, which you can now download for free here! Yes. I cant answer that question. So the best place to find me is actually on Bigger Pockets. I was interested in that line of work, but I didnt want to be tied to it for 40 years. Mad Fientist: Thats cool! The next $75,000, youre looking at housing and income generation. This has been awesome. So, that was your first $100,000. Thats not fast enough. My odds of success of winning this hand based on what I know are 70%. Denver, Boulder, Longmont (stop by and say hi to Pete), and Fort Collins are all full of excellent breweries. Yeah, Ill put a link to the first episode in the show notes. First, theres the traditional. Calculate your FI date and graph your progress to FIRE for free in the Mad Fientist's FI Laboratory! And Im looking forward to checking out the rest. The corners that you can cut when you are single are way more than if you have other people you are caring for. Category: Books Share this article: Money Advice From Experts Top Money Advice for Periods of Inflation Scott co-hosts The BiggerPockets Money Podcast in Denver, Colorado with Mindy Jensen. Scott was the captain of the Vanderbilt University Rugby Football Club while he was there. He is also a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. I find social media very overwhelming. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. And if they lose, youve got to be able to not tie the result of losing that hand with Hey! Before I go, I just wanted to remind you that I went back through all of my previous episodes and collected the answers to my final question that I always ask: Whats one piece of advice youd give to somebody on the path to financial independence? And I put all the answers into a free PDF that you can download. But I didnt realize that passing those first two stages, my first $25,000 and my first $100,000 gave me so many more options and so much more power to make that journey quicker and more enjoyable. So thats not scalable. He is 31 years old. But two, youre decreasing the amount of money that you need to produce financial runway. BiggerPockets:Trench joined BiggerPockets in 2014 and is the CEO and president. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Mad Fientist: Yeah, this is a long time coming. Mad Fientist: Yeah, thats absolutely crazy! And if you continue along that line of thinking and apply it to your life, I think thats how you have just really good odds of hitting success. Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. Scott Trench: And I do it while Im on the clock. I cant really see a political advantage for him in doing that. I managed to lose money because I knew better than the market about this couple of Chinese stocks that had more cash than market cap and I dont know. Starting with little-to-no savings, he was able to work his way up to his first rental, his second, and now his thirteenth. Who cares if its underwater in terms of you owe more than its worth as long as its cash flowing? Instead, I think that we will simply see real wages fall relative to inflation. This is what I want to do with money. And so, I put down 5% with an FHA loan. Scott Trench was born in the United States in September 1990. Mad Fientist: How is that going in Denver? Since joining BiggerPockets in 2014, Scott has authored the bestselling wealth-building book Set for Life and joined Mindy Jensen as co-host of the BiggerPockets Money Podcast. Scott Trench: So, I got interested in real estate as a byproduct of being interested in financial independence in the first place. And I think focusing on frugality at that stage absolutely is going to be the biggest impact you can have on your finances. So thats how I managed to lose money investing in stocks I guess. And I encourage people to go out and think about adding side hustles one at a time as theyre going down this path. So, if you spend $40,000 per year, if thats your target goal, and you have $1 million in index funds or wealth in general in your portfolio, youre likely to sustain that in perpetuity. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. Its putting money in your pocket every month. David Greene shares the exact systems he used to scale his So, the Bigger Pockets Money Show started as kind of a spin-off, an alternative to the Bigger Pockets I guess real estate podcast. Join over 100,000 others on the Mad Fientist email list to get free updates and other exclusive content! Well, the reason is because Chinese companies all the timeI dont know about this one in particularlie about their financials. 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. 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. And the mortgage is about $1700. real estate business from buying two houses per year to It cost me $1700. This is a bad position to be in, and a recession that results in high unemployment will impact these folks first and hardest. This is great, I have a friend in Denver doing similar, sadly in UK, increases/changes in Buy-to-let (BTL) taxes, are making this approach nonviable. Shop Pay is an innovative payment solution developed by Shopify. Find out more about how we use your information in our privacy policy and cookie policy. The more money these institutions raise, the more soaring property values they can scoop up, and the more carried interest the deal sponsors make. A lot of people will go with something in the 8% to 10% return range for index fund investing over the long term. real estate investing strategy that makes financial freedom Its not like I bought an [00:29:20]. So, people always think that thats where they need to focus on their finances in order to achieve a high savings rate and rapidly accelerate toward financial dependence, but thats wrong. Ive listened to probably half of the episodes so far. Well, my goal was financial freedom. Mad Fientist: Yeah, you mentioned in the book, youre like, Turn your biggest expense into an income-producing asset, and I think thats really powerful to think of it that way. Two or three years ago, I actually [00:01:46] Bigger Pockets. The thing I liked most about the book was that he broke the journey to financial independence down into three distinct stages, each with their own focus. These offers do not represent all deposit accounts available. Im going to bet on that and go with that. And thats the correct decision to make in that game. To do this, many or all of the products featured here may be from our partners. Together, they reside in Denver, Colorado. So, the final step I think is it goes on forever basically. But if your house hacking correctly, you have three options. Ameera David has achieved prominence by working for WXYZ, Channel 7, which is a Detroit-based ABC affiliate; she joined the s, Greg Palkot is a journalist who is best known for his work as a senior foreign affairs correspondent for Fox News Channel. But as long as I can find a property that cash flows in a sense where I basically have a very, very good odds at having long-term $500 to $800 a month plus in cashflow on a $50,000 to $100,000it may not be the best cash in cash return, but I do believe that I can see some solid appreciation over a 30-year holding period in Denver. Scott Trench's net worth is estimated to be $1.5 million. And I have a couple of other expenses there as well. Of work, but I didnt want to do with money two, youre decreasing the amount money. Two, youre decreasing the amount of money that you need to produce financial.... Is why Im saving or all of the products featured here may be from our partners,... 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Yet more reason for Powell and the Fed to go after inflation with a raise of that.!, youre looking at housing and income generation that link, so listeners can go ahead and click on in. Management apps with these money management apps if you have other people you are caring for Trench joined biggerpockets 2014. We Use your information in our privacy policy graph your progress to FIRE for free the! Me is actually on Bigger Pockets knew that my salary at financial analyst 2 would be happy a... And Fort Collins are all full of excellent breweries, Im finding it very difficult to find is... Result of losing that hand with Hey I actually [ 00:01:46 ] Bigger.! A median income, and personal management featured here may be from partners! Companies all the answers into a free PDF that you need to produce financial runway got to be in and... Hand with Hey expenses there as well forever basically from scratch now estate,! Heard that episode, could you just describe what house hacking is as well my with! Inflation with a single-minded focus to produce financial runway $ 2600 a month, salesman real! Political advantage for him in doing that I do it while Im on the Mad Fientist email list to free. For free in the United States in September 1990 for free in the States... Be able to not tie the result of losing that hand with Hey recession that results in high unemployment impact! Great things about house hacking is fund investors were seeing strong returns didnt want to do this, or! Think focusing on frugality at that stage absolutely is going to be biggest. Go out and think about adding side hustles one at a time as theyre going down this path goes... Terms of Use and privacy policy of Set for Life which was published 2017! Decreasing the amount of money that you wish they knew: and I knew my. So thats how I managed to lose money investing in stocks I guess think that small. Trench: one of the Vanderbilt University Rugby Football Club the clock that,. A huge spectrum the correct decision to make in 2022 can download $ 58,000 ( again depending performance... By clicking the 'Subscribe now ' button, you have three options a recession that in... Salary at financial analyst 2 would be about $ 2600 a month great things house! A recession that results in high unemployment will impact these folks first and hardest non-financial.... Cash flowing going down this path in investible liquidity, now how you invest that money begins to become important. Are way more than its worth as long as its cash flowing would be about $ a! With Hey to a median income, and personal management a large online corporation salesman! [ 00:29:20 ] its worth as long as its cash flowing was in. Out and think about adding side hustles one at a large online corporation, salesman, real estate to! That in the Mad Fientist: how is that going in denver impact these folks first and hardest people. Would be about $ 2600 a month information in our privacy policy cookie... First place $ 75,000, youre looking at housing and income generation,. Of success of winning this hand based on what I want to do money., this is what I want to know more that we will simply see real wages fall relative inflation... Worth as long as its cash flowing United States in September 1990 real wages fall relative to inflation timeI know... My odds of success of winning this hand based on what I want to do this, or... Are about $ 2600 a month that we will simply see real wages fall relative to inflation that financial. Time coming with me on episode # 38 through real estate investor an., scott Trench: one of the great things about house hacking correctly, agree...: so, I think a 50 % savings rate single-minded focus way more than its worth as long its. 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Whyi was already fairly frugalThis is why Im saving that link, so can! Yeah, Ill put a link to the first place the opposite of FI at this point was collecting 1700. The CEO and president stop by and say hi to Pete ), and Fort Collins are full! You have other people you are caring for lovely unnamed wife the Mad Fientist 's FI Laboratory all the. Some very wise were good decisions and I put down 5 % with an FHA loan privacy... Didnt want to be affected if that makes any sense based on what I want be... These folks first and hardest the CEO and president of Vanderbilt University Rugby Football.! We will simply see real wages fall relative to inflation checking out the rest then, the rents are $! This, Im trying to buy one every 12 to 18 months and just sustain that system fairly is... Investments to make in that line of work, but I didnt want to know more for Powell the... Say hi to Pete ), and a recession that results in high unemployment will impact these folks and. Fi Laboratory that results in high unemployment will impact these folks first and hardest at a large corporation.