He hosts a podcast called BiggerPockets Money.. I would have been FI in my 30s. Denver, Boulder, Longmont (stop by and say hi to Pete), and Fort Collins are all full of excellent breweries. And my salary when I started was $48,000. Like many people who are successful in the music industry, Storch became a wealthy man. And I have a couple of other expenses there as well. And one of my, and I think Mindys, big petpeeves with the real estate community is that a lot of people will go in and try to buy real estate and hope that buying that real estate will solve their financial problems. Trench joined BiggerPockets in 2014 and is the CEO and president. Or do you think go straight for something like the quadplex if you have the capital to invest? This is what I want to do with money. Enjoyed the Podcast, great to find the BiggerPockets Money Podcast too and enjoyed Scotts book (audible) and the three levels FI! Together, they reside in Denver, Colorado. If you message me there, I usually get back to everybody within a day or two. Thats great. Two or three years ago, I actually [00:01:46] Bigger Pockets. Education:He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. 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. But I think a lot goes into putting yourself into position to be lucky. Click here to listen on iTunes. His parents brought him up in the United States. And so, its all about increasing your odds of success I guess at this point. I still did fine and made it in my 40s but my maturity was late out of the gate. 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. The mortgage is currently $1400 because I refinanced. For example, we had Erin Chase on there. Scott Trench: But yeah, that interest in personal finance is kind of what spurred my ability to save and the accumulation of my first $20,000 to $25,000 for me. And you mentioned in the book something called scalable careers, which thats a great phrase that I dont think Ive really heard before. But theres also this whole realm of entrepreneurship. Thats true for the average and the median American, but not popular to point out. Over the weekend, Adams appeared to double down on the remarks on Twitter. And this is the real power of it in a non-financial sense. And thats hopefully when you make all your mistakes and learn all those lessons. Scott Trench: Well, when you buy your first place when I bought my first place, my total net worth was probably basically zero; maybe like 15k-20. So, I definitely have some higher financial goals than kind of like lean FI for me and maybe like one significant other. Mad Fientist: Yeah, yeah. I know its a really hot real estate market these days. And. In addition to his career, Scott is the author of Set for Life which was published in 2017. As a fellow beer lover, I highly recommend you get to Colorado for a visit! Read this book now. Information about your device and internet connection, like your IP address, Browsing and search activity while using Yahoo websites and apps. So lets dive in! This is a conventional mortgage brokernot a friend, not a family member. The next $75,000, youre looking at housing and income generation. If you dont have that option, then you are stuck. Scott Trench: I live in another duplex doing the same thing. She said hes a 20-something whos doing incredible things with real estate and investing and finances in general, so I needed to talk to him. And Erin Chase is an expert grocery shopper. And my book is written for a very specific audience. And I encourage people to go out and think about adding side hustles one at a time as theyre going down this path. And if you can house hacklike me, I house hacked close to work, so I could bike to workyoure able to eliminate basically 50%, lop off half of your expenses, in one single investment. So, thank you for that. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. Im going to bet on that and go with that. And thats the correct decision to make in that game. They both live in Denver, Colorado. This is a loan at the best rates available. You may not be able to change your lease, you may not be able to start biking to work tomorrow. And its about putting together a plan that makes the most sense to you based on the perspectives of smart people who have been there and that resonate with you. Amara Trinity Lawrence: Know about Martin Lawrence Daughter? Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. . I believe I currently was able to getI remodeled and got one of the units up to $925. And thats kind of where we start getting into part two there which is $25,000 to $100,000. 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.. So, alongside kind of dollar cost averaging with index funds, I try to dollar cost averageand by that, I mean consistently invest, so Im not buying at the top or the bottom of the marketin real estate. They help ordinary Americans build wealth and achieve financial freedom through real estate investing. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. And I definitely recommend everyone to check it out. real estate business from buying two houses per year to Mad Fientist: Absolutely! And theyve got a hundred million dollars in cash and no debts. Its putting money in your pocket every month. Obviously, some chance plays a part. I was just curious if anyone has calculated there Real Net Worth as he describes it in the book. But what youre talking about is turning that into an income-producing asset instead. Listen to the Podcast Here Watch the Podcast Here Help Us Out! So thats not scalable. If Im (Fed Chairman) Jerome Powell, my task is clear: Beat inflation. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. I invest in index funds. I definitely still have some work to do to get to there. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. Thats MadFientist.com/advice. A good trench coat is worth the splurge, but this budget-friendlier version from Mango won't disappoint. Every week, Robert Leonard answer questions from listeners on his podcast show "Millennial Investing". Mad Fientist: Thats very cool! Also, you have nothing to invest, so you cant get a higher return on your invested dollars if you have nothing to invest. Find out more about how we use your information in our privacy policy and cookie policy. So, I think thats really important. Mad Fientist: There was! I think that investors in those types of projects are assuming a tremendous amount of risk interest rates could be far higher in 18 to 24 months than they are today, and that can depress prices, or make it difficult to refinance the property or investment down the line. 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. So, Bigger Pockets obviously has tons of amazing resources for people who want to get into stuff like this. I wish I had my act together as much as Scott does when I was his age. 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. Scott Trench CEO of BiggerPockets.com, Author of Set for Life, Co-Host of The BiggerPockets Money Podcast Denver, Colorado, United States 5K followers 500+ connections Join to follow. A lot of people will go with something in the 8% to 10% return range for index fund investing over the long term. 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. So, you had mentioned when you hit that $25,000 stability level, you would mention you could get a job that pays less salary but has a bigger bonus potential, or you could go and work at a startup or things like that. Its just that the math doesnt work like that. Yeah, Ill put a link to the first episode in the show notes. I wanted to try to see if I could do much better than that. 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 next phase is getting that first $100,000. I think that once you have a 50% savings rate on a median income or greater, thats when all of this kind of really starts falling into place and the opportunities begin multiplying in so many different directions for you. Author. Thanks for taking the time to read this post and thanks Scott for writing such a good book. Id recommend people start from the source. So you were my gym companion for a good week or two. At the time that were recording this, Im finding it very difficult to find properties. But you wrote a great book called Set for Life. They feel that they are all politicians and wont allow the economy to slide. Youre also not likely to get a big raise at your job at work within the next year. No, all of these things work. The couple frequently shares photos of themselves on social media. Mad Fientist: Nice! So theres a ton of great stuff there. Scott Trench is the CEO of BiggerPockets, an education platform on real estate investment. House hacking for life!! He is also a real estate investor, an executive at a large online. So that would be cool to read that. While real wages might slide in a recession real wages have been rising, relative to inflation, for most of the last 10 years. Its about a little over 10% of your savingsthat means you spend around $4000 a month. So it gets harder to save, and you need way more the more your average monthly spending increases. Rich Dad Poor Dad: 20th Anniversary Edition. 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. I am a massive fan of multiple streams of income, so have been pursuing side hustles for a while now. Last, I think that your small mom-and-pop investors are likely to be affected. And then, they both were co-hosts on my show with me on episode #38. Personal Finance Forum Real Net Worth (Scott Trench model) Steve Schneider Investor Sherwood Park, Alberta Posted May 24 2017, 09:08 Hi everyone, I just finished up @Scott Trench book Set For Life. Search by Name, Phone, Address, or Email But in a bad market, its really important because in a bad market, you cant sell. Join over 100,000 others on the Mad Fientist email list to get free updates and other exclusive content! So youre not going to be able to even last one month without your job if youre starting from scratch until eight months have passed and really six weeks timeframe by the end of the year. And again, yes, youre buying in such a way that it will make a smart cashflowing asset for you once you move on and move out of that property. And the first phase was getting that first $25,000. And that the step after financial analyst two of course is financial analyst 3, then senior financial analyst, then finance manager, senior finance manager, director of finance, senior director and so on, all the way up to CFO of a Fortune 500 company. Im now working very long hours and trying to figure out how to grow the company and all that kind of stuff. I was able to reduce my monthly payments. Invest in real estate and never run out of money! So, the first time that I can figure out anybody actually using the term house hacking was by a guy that works here named Brandon Turner. Wow thanks for sharing. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. Im going to put that book in the show notes, a link to the book in the show notes. $305 at Sezane. After this, I think that your institutional investors and syndication investors are at the next highest risk. I really appreciate it. 'A lot of people are angry at me today but I haven't yet heard anyone disagree,' he told his 867,000 followers. I was interested in that line of work, but I didnt want to be tied to it for 40 years. And theres nothing wrong with this plan of index fund investing. Scott Trench: Yeah, that was my first property. Scott Trench: Yeah, and I think a dollar saved is better than a dollar earned because of that tax advantage. So, some people are starting from a position where they already have a good $25,000 saved up through whatever fortune, whatever theyve done previous to this point. And then, one day, you will have achieved financial independence according to the standard definition I guess in the FI community which is based on the 4% rule. I also observe that the federal minimum wage has not increased since 2010 we have the lowest real minimum wage in this country that weve had in nearly 50 years, since the 1940s and 1950s. Lastly, one paradox of all that is happening now is that income inequality and wealth inequality are likely finally taking the first big steps towards normalizing. Yeah, thats a great way to look at it. I think that the market will continue to take a beating until inflation is tamed; and, once it is tamed, we will see a new period of higher, more normal interest rates in that future state. Scott Trench: Yeah, I rarely do this, but I just read a book that Im raving about lately called Thinking in Bets by Annie Duke. Scott Trench: Sure! No, heres what I was thinking. You could drastically change your life for the better. So you mentioned your first $25,000. So, the final step I think is it goes on forever basically. 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. On todays episode of the Financial Independence Podcast, Im joined by the president of biggerpockets.com and cohost of the BiggerPockets Money Show, Scott Trench! By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. Mad Fientist: Yeah, this is a long time coming. 3. Scott Trenchreal estate investor, . Scott Trench is CEO of BiggerPockets, co-host of the BiggerPockets Money Podcast, a real estate investor, and a real estate broker.He is also the best-selling author of Set for Life and First-Time Home Buyer, which have sold more than 140,000 copies combined.Through a solid understanding of wealth management, calculated risks, and a lot of hard work, he created financial freedom for himself as . I started out working at a Fortune 500 company. Great episode Brandon and Scott!. He uses the example of a quadplex I believe in that post. 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