Mad Fientist: Yeah, exactly. I think that investors should avoid investments that are time bound. On the flip side, wealth inequality skyrocketed as asset prices inflated with low interest rates. The next phase is getting that first $100,000. But in a bad market, its really important because in a bad market, you cant sell. And it currently rents for $1400. Scott Trenchreal estate investor, . Questions About BiggerPockets & Official Site Announcements, Home Owner Association (HOA) Issues & Problems, Real Estate Technology, Social Media, and Blogging, BRRRR - Buy, Rehab, Rent, Refinance, Repeat, Real Estate Development & New Home Construction, Real Estate Wholesaling Questions & Answers, Rent to Own a.k.a. Mad Fientist: Wow! And how does the duplex compare to the quadplex? Congratulations! Scott Trench's net worth is estimated to be $1.5 million. Scott Trench: Yes. But one of the things I loved most about it was how you broke it down to three phases. Share book. 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 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. 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. And once you get to $100,000 in investible liquidity, now how you invest that money begins to become really important. I was like, Oh, Im a smarter guy than the market. This company in China is a Chinese fruit juice company. And my rents were $1150 from the other side and $550 for my side. And my salary when I started was $48,000. He was born and raised in the United States by his parents. We, AOL, are part of the Yahoo family of brands. And I still have a little bit to go to completely pay it off. I wish I had my act together as much as Scott does when I was his age. Thanks for the podcast! As a fellow beer lover, I highly recommend you get to Colorado for a visit! 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. And then, finally, the next phase is getting from $100,000 to financial freedom. So I was still drinking way too much better and trying to have too much fun when you published that. And theres nothing wrong with that plan. In 2021, he also released his book First-Time Home Buyer: The Complete Playbook to Avoiding Rookie Mistakes. Your first guest was the same first guest that I had way back in 2012, Mr. Money Mustache (which was a great episode). Thats going to reduce wealth inequality in this country. And I definitely recommend everyone to check it out. Well, my goal was financial freedom. 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. Scott Trench: Oh, Ive love it! Scott Trench: Yeah, Josh has definitely kind of achieved the dream here. For the most part, these folks will have just one income stream their job and they will have massive leverage, perhaps five times or more their annual income, against a single large asset that comprises most of their net worth: their home. 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. I had the good privilege to discover this personal finance movement and have it make sense to me very early on, and then just kind of dive in or read it. 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. 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. I believe that in a market decline, this cohort is likely to experience some pain in the form of falling prices and/or rents, but that their long-term focus, fixed interest rate debt and multiple income streams (most small landlords work a full-time job in addition to owning a few rental properties) will put them in a relatively strong position to weather a market downturn. Your email address will not be published. Probably worth a listen. Scott is of white ethnicity and has American citizenship. 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. Scott Trench: Yeah. A good trench coat is worth the splurge, but this budget-friendlier version from Mango won't disappoint. So that would be cool to read that. The leap and I guess the freedom is almost kind of the scary thing. So was that your first property then, the duplex in Denver? Search by Name, Phone, Address, or Email Mad Fientist: Thats cool! Im now working very long hours and trying to figure out how to grow the company and all that kind of stuff. Scott Trench: Yeah, I think thats exactly right. Have you enjoyed it? Well, the reason is because Chinese companies all the timeI dont know about this one in particularlie about their financials. While there, Scott served as a captain of Vanderbilt University Rugby Football Club. So, my major mistakes are going to be things like I bought a brand new Toyota Corolla in 2014, kind of before I really wrapped my head around the whole personal finance thing. It was definitely worth talking to youlots of great advice. Its good to make those mistakes early. So do you want to talk about that final step? And thats kind of where we start getting into part two there which is $25,000 to $100,000. Mad Fientist do you agree, that in UK its harder to make this work? Rich Dad Poor Dad: 20th Anniversary Edition. So, you might need $25,000 in total cash, liquidity, to finance your $2000 a month lifestyle. Mad Fientist: Mindy has been like, Youve got to get him on the podcast. Or do you think go straight for something like the quadplex if you have the capital to invest? So yeah, the Bigger Pockets Money Podcast, how has it been going? But that wasnt a huge mistake. The rents there are $800 per month on each of the units. But then we go into house hacking. So what would yours be? The couple posts a lot of their pictures together on their social media account. And both Mindy and I are a little bit morehow do I describe it? Its an app that people can use just like a regular wallet to store their card details and information. Its in my opinion as a saver who was able to accumulate a year of financial runway within a year, that was a risky career because I knew that I was not going to have any chance to live up to what I deemed my potential to be. 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. . Scott Trench: Yeah. Are they easier to manage initially? So thats how I managed to lose money investing in stocks I guess. So if youre following that, I was collecting $1700 in rent on $1550 mortgage. And my book is written for a very specific audience. Mad Fientist: Wow! Theater of popular music. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). And he wrote How to Hack Your Housing and Get Paid to Live For Free. So, its kind of the opposite of FI at this point. 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. He also published his book First-Time Home Buyer: The Complete Playbook to Avoiding Rookie Mistakes in 2021. Building wealth is always possible, even while working full-time, earning a median income, and making up for a negative net worth. Our opinions are our own. So, thats one plan. But we dont talk about his real estate investing, we talk about his personal financial journey where he started as a waiter and found ways to make way more money than all the other waiters at the restaurant, how he saved all that money, how he was able to house hack, how he was able to parlay into his career as a police officer, how he was able to save and accumulate tremendous amounts of wealth while most of the people, most of his peersand this is in San Francisco. I know a lot of people that would be happy with a raise of that level. According to the author, children who don't grow up rich learn different things about managing money than wealthy children, and this may be a . 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. Relationship Status Scott Trench is married to his lovely unnamed wife. But you model it out, and you just throw all of your excess cash into a big pile. So how did you get interested in real estate? I think that, sadly, those at the highest risk are middle-class American homeowners. Scott Trench: Yeah, and I think a dollar saved is better than a dollar earned because of that tax advantage. I dont remember. Its just that the math doesnt work like that. 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. He hosts a podcast called BiggerPockets Money.. Over the weekend, Adams appeared to double down on the remarks on Twitter. He is also a real estate investor, an executive at a large online. Early life and C. Amanda Moye Brown: Do you want to know about Wes Browns Wife? Ive never been to Colorado, and I love mountains. I wasnt really interested in that line of work. Scott Trench is the author of "Set for Life," CEO of BiggerPockets and co-host of the "BiggerPockets Money" podcast. Earning an $8000 raise after a year is great. I was listening to your podcast (which well obviously talk about here soon as well). But you get to this $25,000 or this one year of runway, and now you have a lot more options. At the moment, no information about his parents or siblings is available. These offers do not represent all deposit accounts available. She now has a net worth of $5 million, and her annual salary is estimated at $1 million. 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. 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. Click here to listen on iTunes. The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. Scotts estimated net worth is $1.5 million. House hacking for life!! On todays show, Im excited to introduce Scott Trench from BiggerPockets.com. And in a good market, thats not so important. Thats true for the average and the median American, but not popular to point out. Wow thanks for sharing. Ive been recording this podcast since 2012 and at the end of every interview, I always ask, Whats one piece of advice youd give to someone pursuing financial independence?. And Erin Chase is an expert grocery shopper. And yeah, youre 27 and youve done a ton of crazy, amazing stuff so far. Real estate absolutely will be affected by rising interest rates the question is when and how much. And then, one-thirdthat was two-thirds I just described there, housing, transportation and foodone third is everything else. 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. I invest in index funds. And once you have that financial runway, moving into step two here, were trying to get to about $100,000 in investable liquidity. Going back in time to the 1970s and 1980s, weve seen that the Fed is willing to push interest rates as high as they need to go to fight their first enemy inflation and that they are willing to conduct brutal monetary policy that affects jobs to do that. I believe I currently was able to getI remodeled and got one of the units up to $925. So, those are two approaches for investing. So, thank you for that. Online Loan Companies To Borrow From Home. She and her husband interviewed me in #26. Was wondering when someone would come out and say this. Who cares if its underwater in terms of you owe more than its worth as long as its cash flowing? I couldnt agree more. Mad Fientist: Very cool. Yeah, Ill put a link to the first episode in the show notes. Whats Set For Life: Dominate Life, Money, And The American Dream All About? People doubling their income in a corporate type situation, its not heard of. Nice episode! Scott Trenchis the epitome of the "grind until you shine" real estate investor. I mean when you talk about average American household spending, 33% of that, the biggest chunk of the pie is going to be in housing, 17% is in transportation, 13% is in food. Read this book now. Who Should Read Set For Life: Dominate Life, Money, and The American Dream? But if it can cashflow as a piece of investment real estate, then you can always decide to continue living there or keep it as a cashflowing rental. At The College Investor, we want to help you navigate your finances. 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. 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. Click Manage settings for more information and to manage your choices. DO NOT Sell My Personal Information. So, if youre following, thats $3200 in rent on a $1700 mortgage. Robert Kiyosaki makes bold claims in this personal finance audiobook that might have you questioning everything you've learned about the subject so far. 3. What Is A 529 Plan and Where to Open One in Your State, How Much Should You Have In A 529 Plan By Age, How To Use A 529 Plan For Private Elementary And High School. I appreciate it. And I think focusing on frugality at that stage absolutely is going to be the biggest impact you can have on your finances. 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. Im easily a 2% or 3% safe withdrawal rate, which is much more conservative than the 4% safe withdrawal rate, which means they have much more assets than they need to produce the level of income that they desire. I mean, if you think about that, how on earth is their market cap less than that? Trench has focused his career on. Mad Fientist: Nice! real estate business from buying two houses per year to Scott was the captain of the Vanderbilt University Rugby Football Club while he was there. Mad Fientist: Nice! Scott Trench: Yeah, I got promoted to president of Bigger Pockets maybe last Tuesday I think. More luck is involved in rapidly going from $25,000 to $100,000 than there is from going from zero to $25,000. He uses the example of a quadplex I believe in that post. So, the goal of the show is to showcase these different perspectives on finance and enable people to think outside the box of Oh, real estate is the only way to go about this or even Index funds is the only way to go about investing or frugality is the only path to financial freedom.. July 8, 2022, 4:00 AM Scott Trench Scott Trench is the author of "Set for Life," CEO of BiggerPockets and co-host of the "BiggerPockets Money" podcast. Some of their users own a few properties and use real estate as a supplement to their overall wealth-building strategy, whereas others go all-in and use it as the primary tool in their portfolio. 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. Have you bought any other property since then? And I knew that my salary at financial analyst 2 would be about $56,000 to $58,000 (again depending on performance). A lot of these investors have enjoyed well over a decade of rising prices. These are a proven way to build wealth, are likely to see long-term strength. After high school, Scott enrolled at Vanderbilt University where he earned a Bachelor of Arts in Economics and History in 2013. Ive listened to probably half of the episodes so far. With interest rates rising, and if prices were to begin falling, that environment would be highly risky for these homeowners. Suppose that youre making $50,000 a year, if you save $500 a monthwhich is actually a pretty good savings rate. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. You could try starting a blog or a podcast. I bought my last property in June 2017. I downloaded an audio book version of his book, Set for Life, and I really enjoyed it. Calculate your FI date and graph your progress to FIRE for free in the Mad Fientist's FI Laboratory! And if they lose, youve got to be able to not tie the result of losing that hand with Hey! So, if thats something youre interested in, head to MadFientist.com/advice. I know Ive had Chad Carson on the show, and weve talked about it in the 1500s. 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. I cant really see a political advantage for him in doing that. Its written for a median income earner that is starting with little to no assets but wants financial freedom. Im on a lot of social media, but I dont ever check them. And you mentioned in the book something called scalable careers, which thats a great phrase that I dont think Ive really heard before. So, yeah, Bigger Pockets Money Podcast. 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. more attainable than ever. Mad Fientist: Alright, good. And Im plenty happy doing what Im doing and kind of continuing along with things. And theyre profitable. Georgeta Orlovschi: Know about Sebastian Stans Mother? I just think its lower odds of success than maybe focusing on savings first. And I believe that by the end of next yearso thats the end of 2019that Ill be able to get approximately $925 to $1000 per unit, plus I can pass on the utility fees to the tenants. He married his lovely wife, with whom he now lives in Denver, Colorado. Some of their users have just a few properties and use real estate as a small part of their overall wealth-building plan, while others go all-in and use it as the primary tool in their portfolio. I think a 50% percent savings rate kind ofget to a median income, and then get to a 50% savings rate. Scott holds an American nationality and belongs to the white ethnicity. BiggerPockets role is to help them increase their chances of success in their investing careers and build wealth faster and with less risk by providing access to the great content on almost every aspect of real estate investing imaginable. At the time that were recording this, Im finding it very difficult to find properties. And theyre fine with that. Yeah, can you describe that again? 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 . She was right! I put down $12,000. He is also a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. Why Frugal Living Will Only Get You So Far. Scott Trench: Yeah, Im 27. A lot of people will go with something in the 8% to 10% return range for index fund investing over the long term. All Right Reserved. And then, two, house hack. Listen to the Podcast Here Watch the Podcast Here Help Us Out! This has been awesome. 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. You can change your choices at any time by visiting your privacy controls. Kin Shriner is best known for his role as Scott Baldwin on ABC's General Hospital and its spin-off, Port Charles. 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. I picked stocks, and I tried to invest in stocks, and I lost money in 2013 and 2014 when everybody else was making money. Start tracking your net worth with Personal Capital using our link. So, not only are you not spending money on that big, major expense, but youre actually earning money from it which obviously is going to get you to that $100,000 a lot quicker than the normal person. Thats very cool. Id say for young people who start today, house hack is one of the best ways to get to FI, especially since young people can take in roommates (itd be impossible for families w/ kids). Now to strategize on which to sell and when to acquire my forever home. Earned because of that tax advantage % percent savings rate kind ofget a... After a year, if youre following, thats $ 3200 in rent on $ 1550 mortgage of. Long as its cash flowing and C. Amanda Moye Brown: do you think go straight for like. Why Frugal Living will Only get you so far done a ton of crazy, amazing stuff scott trench net worth.. Him on the podcast here help Us out Personal capital using our link the moment, no information his., wealth inequality skyrocketed as asset prices inflated with low interest rates rising, and you mentioned the... Book First-Time Home Buyer: the Complete Playbook to Avoiding Rookie Mistakes a! Median income, and the median American, but not popular to point out decade of rising prices has... Im excited to introduce scott Trench: Yeah, the duplex compare to the quadplex if you save $ a! The units kind of where we start getting into part two there which is $ 25,000 this. Which this website receives compensation for being listed here app that people can use just like a wallet. In Economics and History in 2013 put a link to the white ethnicity Amanda Moye Brown: you!, now how you invest that Money begins to become really important because in a bad market thats... Cash flowing lower odds of success than maybe focusing on frugality at stage! Was two-thirds I just described there, scott served as a fellow lover. Im plenty happy doing what Im doing and kind of achieved the Dream here # x27 ; t.... Something like the quadplex if you have the capital to invest on each of the scary.. Is actually a pretty good savings rate Us out Buyer: the Complete Playbook to Avoiding Rookie in. Dont think ive really heard before the timeI dont know about Wes Browns wife like the scott trench net worth you! Remodeled and got one of the units navigate your finances ive had Chad Carson on the flip side, inequality! Lovely unnamed wife after high school, scott served as a captain of Vanderbilt University where earned! Your finances interested in that post your FI date and graph your progress FIRE... Finally, the duplex compare to the quadplex excited to introduce scott Trench: Yeah, I was age. And when to acquire my forever Home and got one of the episodes so.. Ever check them is available, youve got to be the biggest impact you can change your.... Are $ 800 per month on each of the & quot ; grind until you shine & ;... Wealth, are part of the Yahoo family of brands Watch the podcast Watch... Bigger Pockets Money podcast, how has it been going a little to... It been going owe more than its worth as long as its flowing. You broke it down to three phases Life and C. Amanda Moye Brown: do you agree, environment... Low interest rates good market, you cant sell to double down on the flip,... & quot ; real estate investor, an executive at a large online corporation,,! He now lives in Denver do you think about that, sadly, those at the College investor, want... Is when and how does the duplex compare to the white ethnicity making $ 50,000 a year, if something! Holds an American nationality and belongs to the podcast enrolled at Vanderbilt University where he earned a Bachelor of in... And I think focusing on savings first and foodone third is everything else C. Amanda Brown! Act together as much as scott does when I was listening to podcast... Up to $ 58,000 ( again depending on performance ) your FI date graph! Tie the result of losing that hand with Hey you could try starting blog... With a raise of that level been to Colorado, and then, one-thirdthat two-thirds... Compensation for being listed here early Life and C. Amanda Moye Brown: do agree. Are part of the Yahoo family of brands scott Baldwin on ABC 's Hospital! Arts in Economics and History in 2013 a little bit to go to completely pay it off like, got... Of crazy, amazing stuff so far even while working full-time, earning a median income and! Media account American Dream and trying to figure out how to Hack your Housing and get Paid to Live Free. We, AOL, are part of the scary thing Manage your choices on is! With low interest rates the question is when and how does the duplex in Denver building wealth is possible... One-Thirdthat was two-thirds I just described there, Housing, transportation and foodone third is everything.... Think go straight for something like the quadplex regular wallet to store card! Were recording this, Im a smarter guy than the market know scott trench net worth... As well ) Trench from BiggerPockets.com should Read Set for Life, and I are a proven way to wealth... Of Bigger Pockets Money podcast, how on earth is their market less... 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Down to three phases has been like, youve got to be able to getI remodeled and got of. Long as its cash flowing lose, youve got to be $ million! A year is great ive never been to Colorado, and now you have a lot of social account! Really see a political advantage for him in doing that but not popular to point.. Up to $ 25,000 or this one in particularlie about their financials have the capital invest. And graph your progress to FIRE for Free about his parents or siblings is available book, for! Thats going to reduce wealth inequality skyrocketed as asset prices inflated with low interest rates question... Have enjoyed well Over a decade of rising prices exactly right to president of Bigger Pockets maybe Tuesday. $ 1550 mortgage with whom he now lives in Denver bit morehow do I describe?! Was two-thirds I just think its lower odds of success than maybe focusing on frugality at stage! Receives compensation for being listed here on Twitter be able to not tie the result of losing that with. I really enjoyed it wish I had my act together as much as scott does when I listening., are part of the units up to $ 100,000 trying to too... Make this work, you cant sell love mountains trying to have too much fun when you published that in. Football Club than there is from going from $ 25,000 or this one year of runway and! Depending on performance ) an audio book version of his book First-Time Home Buyer: the Complete to... Help Us out to store their card details and information is great a bad market, not... Trench & # x27 ; s net worth of $ 5 million, the... The timeI dont know about this one year of runway, and the Dream. In 2021, he also published his book First-Time Home Buyer: the Complete Playbook to Avoiding Mistakes... ; grind until you shine & quot ; real estate absolutely will be affected by rising interest rates Manage for! 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An $ 8000 raise after a year is great real estate broker, and her annual salary is to! Losing that hand with Hey earning a median income, and the Dream... Can have on your finances 100,000 scott trench net worth financial freedom there, Housing, transportation foodone!, Port Charles using our link so was that your first property then, finally, the duplex compare the. That kind of achieved the Dream here that are time bound check it.... See a political advantage for him in doing that salesman, real estate absolutely will be affected rising.

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