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. Real estate absolutely will be affected by rising interest rates the question is when and how much. And I wanted it as soon as possible. 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. And then, finally, the next phase is getting from $100,000 to financial freedom. Scott Trench: Well, I think we both share a lot of interest in personal finance. This document can be used by anyone in any position no matter how much you have invested or saved up. Mad Fientist: And I really think you make your own luck too to an extent as well. 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. I dont remember. He hosts a podcast called "BiggerPockets Money." Education: He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. . Why Frugal Living Will Only Get You So Far. I think that a lot of people dismiss the actions of the Federal Reserve right now. Scott Trench: Oh, Ive love it! I wasnt really interested in that line of work. If you dont have that option, then you are stuck. Its kind of a funny phenomenon to me because when I was starting out on this journey, all I could think about was getting to a point where financial independence seemed like a realistic possibility. Well, my goal was financial freedom. And I also have a quadplex now that I bought as a regular investment property. Our opinions are our own. Scott Trench: Yeah, I think thats huge. Scott Trenchreal estate investor, . You can click on the 'unsubscribe' link in the email at anytime. So, yeah, Bigger Pockets Money Podcast. Scott Trench is the author of "Set for Life," CEO of BiggerPockets and co-host of the "BiggerPockets Money" podcast. We go into just incredible personal stories. It cost me $1700. And yeah, hopefully, Ill speak to you soon. So you have to have some baseline of stability, and then work as hard as you can to acquire excess so that you can then go on to take these chances in life that you believe, to the best of your ability, are great, and then obviously do whatever work you can to increase the odds as much as you can to your favor. 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. We try to be a little bit more creative and adventurous with our investment and money management than maybe just passively investing in index funds. And hopefully, Ill make it out to Denver one of these days and say hello. 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. And. And my rents were $1150 from the other side and $550 for my side. He is the founder and CEO of BiggerPockets.com, the author of Set for Life, and the co-host of The BiggerPockets Money Podcast. So it gets harder to save, and you need way more the more your average monthly spending increases. But Ill be sure to send you that link, so listeners can go ahead and click on that in the show notes. Scott Trenchreal estate investor, co-host of the BiggerPockets Money Podcast, and CEO of BiggerPocketsdemonstrates how to accumulate a lifetime of wealth over a short period of time. Scott Trench is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. So, thank you for that. Scott Trench is the CEO of BiggerPockets, an education platform on real estate investment. BiggerPockets.com is the worlds largest online network of real estate investors. Its putting money in your pocket every month. 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. Yeah, no, absolutely. Scott is a lifelong learner of personal finance, real estate investing, sales, business, and personal management in the United States. 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 . So can you talk a little bit about that? 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 couldnt agree more. I find social media very overwhelming. 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. And yeah, back in my poker-watching days, I remember Annie Duke very well. At The College Investor, we want to help you navigate your finances. So, I think theres a couple schools of thought. But its very exciting, and its like the perfect world for me because I just love Bigger Pockets. Hes this young guy thats doing all these crazy things. So youre in your mid-twenties, right? Kin Shriner is an actor from the United States. So, the goal is to go from a year of financial runwaywhich is a very modest goal that you can grind out over maybe a year to eighteen months depending on where youre starting from, what your income is, and where your expenses are, to a goal that has a lot less certainty. Survey: Even With Higher Expenses, Most Student Loan Borrowers Are Ready To Resume Payments, Learn the three phases of financial freedom, Discover the secrets to creating an efficient lifestyle, Create your strategy to replace your wages with passive income streams. Who cares if its underwater in terms of you owe more than its worth as long as its cash flowing? Education:He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. Just search my name in the search bar, Scott Trench. Congratulations! His net worth is estimated to be $1.5 million. David Greene shares the exact systems he used to scale his So, if youre following, thats $3200 in rent on a $1700 mortgage. Funded by the U.S. Department of Agriculture and administered at the state level, SNAP benefits 11 Companies That Will Help You Pay Off Student Loan Debt. I bought a house in Edinburgh and Ill definitely be able to do house hack in the short feature with the prices in this city. Its good to make those mistakes early. He is 31 years old. Scott breaks down the journey to financial independence into three stages and explains what you need to focus on at each step (and why)! Invest in real estate and never run out of money! Anyway, thanks a lot for listening. The mortgage is currently $1400 because I refinanced. 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: Wait, let me interject. marion dupont scott net worthNitro Acoustic. This is like the most opportune time for low cost entry into any sort of business world you can imagine which is super exciting. Find out more about how we use your information in our privacy policy and cookie policy. And Erin Chase is an expert grocery shopper. The couple frequently shares photos of themselves on social media. Scott Trench: Yeah, Josh has definitely kind of achieved the dream here. After this, I think that your institutional investors and syndication investors are at the next highest risk. I moved out a couple of years later. And Im plenty happy doing what Im doing and kind of continuing along with things. The next $75,000, youre looking at housing and income generation. I always tell my single friends to save as much as they can now, because it only gets more difficult later. . Scott Storch is a record producer, songwriter, and former musician who began his career in 1991. While there, Scott served as a captain of Vanderbilt University Rugby Football Club. Read this book now. She was right! Scott is someone who came on my radar a few years ago because Mindy Jensen, aka Mrs. 1500, from 1500Days.com mentioned quite a few times that I needed to get her colleague, Scott, on the podcast. Ive never been to Colorado, and I love mountains. So, would you mind talking a little bit about that first stage? My odds of success of winning this hand based on what I know are 70%. Who Should Read Set For Life: Dominate Life, Money, and The American Dream? You can download a free copy there. You may not be able to change your lease, you may not be able to start biking to work tomorrow. Scott was born in September 1990, in the United States. No, all of these things work. Buy, Rehab, Rent, Refinance, Repeat is the five-part BRRRR Scott has dedicated his career to helping ordinary Americans build wealth in part through real estate investing. That's the topic of today's show, where we sit down with Scott Trench, author of Set for Life,to discuss some of the simple yet powerful, tactics people can use to increase their income, reduce their expenses, and lead a legendary life. Scott Trench: Yeah, and I think a dollar saved is better than a dollar earned because of that tax advantage. And yeah, your last name is Trench, and you want how many trenchlings? When interest rates fall and real estate assets are scarce, asset values soar. 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. But having that thing that youre working on as youre trying to reach financial independence, then hopefully, by the time you reach it, youll have something there that youre really passionate about and that you can spend a lot of time doing. This is in an expensive marketwere not able to accumulate anything. By layering philosophy with practical knowledge, Set for Life gives young professionals the fiscal confidence they need to conquer financial goals early in life. And no one can go in and audit them and figure that out. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. And this brings up a really cool thing that I liked in your book, which I havent even mentioned yet. It will also teach you how to live a happy, healthy, and fulfilling life . Its about a little over 10% of your savingsthat means you spend around $4000 a month. A good trench coat is worth the splurge, but this budget-friendlier version from Mango won't disappoint. Set For Life: Dominate Life, Money, and The American Dream. But in a bad market, its really important because in a bad market, you cant sell. 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 really, what were after here is a strong personal financial position with a good savings rate, a strong income, strong investment returns, and then the opportunity, if desired, to go take advantage of entrepreneurial pursuits. I think thats why were attracted to real estate. 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. Scott's estimated net worth is $1.5 million. Click here to listen on iTunes. And I knew very clearly that around the 18-month mark, give or take a few months depending on my performance, I was going to get a promotion to financial analyst 2. Scott is the CEO of BiggerPockets.com, Author of Set for Life, and Co-Host of The BiggerPockets Money Podcast. And Im looking forward to checking out the rest. . So if youre following that, I was collecting $1700 in rent on $1550 mortgage. Mad Fientist: Very cool! Your email address will not be published. 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 rents there are $800 per month on each of the units. Yes. So, I always end all my interviews with one piece of advice youd give to somebody whos starting on the path of FI. Mad Fientist: Very cool! Have you made any mistakes, or is there anything you would do differently if youre starting from scratch now? Scott Trench: Get to a 50% savings rate. So thats how I managed to lose money investing in stocks I guess. even while working full-time, earning a median income, and making up for a negative net worth. So theyre investing from a position of financial weakness and using some form of creative finance which is kind of, for a new investor, often a code word for extremely risky leverage and not investing from a position of financial strength. And I definitely recommend everyone to check it out. Im not so sure. Scott Trench: So, after the other expenses that went into maintaining the property and fixing some things up myself, I was probably breaking even or maybe paying a little bit out of pocket to live on a monthly basis. And my salary when I started was $48,000. If you lose your job, youre screwed! We've cultivated everything you need to get started, from long-term investing principles to increasing your overall net worth in big ways, with this list of the 20 best finance audiobooks from our catalog. As a fellow beer lover, I highly recommend you get to Colorado for a visit! Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. Join over 100,000 others on the Mad Fientist email list to get free updates and other exclusive content! The couple posts a lot of their pictures together on their social media account. Was wondering when someone would come out and say this. Some of it is obviously also luck. But you get to this $25,000 or this one year of runway, and now you have a lot more options. Mad Fientist: Yeah, absolutely. Its like a 1% interest rate. 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. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. But hes definitely in a position where hes able to step aside and step out of the day-to-day and have a young upstart like me kind of do some [00:04:01] for him. Probably worth a listen. I bought my last property in June 2017. Scott Trench: You know, she hasnt wrapped yet. Thats very cool. I think that this asset class and I broadly bucket large multifamily, NNN and other such real estate into this category is much more exposed to rising interest rates than people think, and there could well be some pain here. Im repaying the favor [00:06:47]. And I think focusing on frugality at that stage absolutely is going to be the biggest impact you can have on your finances. It just didnt work out. Also, you have nothing to invest, so you cant get a higher return on your invested dollars if you have nothing to invest. Nice episode! Trench has focused his career on. People doubling their income in a corporate type situation, its not heard of. So I was able to basicallyfrom a big picture perspective, I think that Ive been able to at least avoid any major mistakes. Mad Fientist: He seems like a good boss anyway. Thanks to both of you and him. Congratulations again on the promotion and the book. Its a powerful way to build wealth over the long term and accessible to most Americans earning a median or higher income. More luck is involved in rapidly going from $25,000 to $100,000 than there is from going from zero to $25,000. Yeah, can you describe that again? And then, the rents are about $2600 a month. I believe I currently was able to getI remodeled and got one of the units up to $925. He serves as the CEO of BiggerPockets.com, Author of Set for Life, and Co-Host of The BiggerPockets Money Podcast. Scott Trench: Yeah, I think thats exactly right. 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. Mad Fientist: How is that going in Denver? Turns out our guest today, Scott Trench, found a lower paying dream job at a startup. Youre now president of Bigger Pockets which is huge. A family that reached financial independence while raising children. $2,650 at NET-A-PORTER. Yet, it is also a dangerous game where, as investors, we play with big numbers and assume legal, operational and financial risks. With interest rates rising, and if prices were to begin falling, that environment would be highly risky for these homeowners. But if your house hacking correctly, you have three options. And then, one-thirdthat was two-thirds I just described there, housing, transportation and foodone third is everything else. I was listening to your podcast (which well obviously talk about here soon as well). The leap and I guess the freedom is almost kind of the scary thing. I love helping spread the message of financial independence to as many places as I can. And theyre profitable. Over the weekend, Adams appeared to double down on the remarks on Twitter. Scott Trench is the CEO and President of BiggerPockets. The amount of savings I had, less my car loan payment, plus the value of my car. He was born and raised in the United States by his parents. Currently, he is an active investor in the Denver market and manages a real estate portfolio of around $1.5 million. Who Is Scott Trench Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. Last, I think that your small mom-and-pop investors are likely to be affected. That's $1 MILLION. Sarah Peck, Richard Epstein, Logan Sekulow, Jim Harold, Ameera David is an Arabian-American journalist, news reporter, and anchor. Scott Trench: Yes. Mad Fientist: Wow! 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