Building wealth is always possible, even while working full-time, earning a median income, and making up for a negative net worth. So that would be cool to read that. Wow thanks for sharing. I appreciate it. So, yeah, Bigger Pockets Money Podcast. So thats not scalable. I moved out a couple of years later. Mad Fientist: Very cool. I wish that people knew that real estate investing is a double-edged sword. Im repaying the favor [00:06:47]. 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. Probably worth a listen. Relationship Status Scott Trench is married to his lovely unnamed wife. 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. And theres nothing wrong with this plan of index fund investing. 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. Together, they reside in Denver, Colorado. 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. The identity of Scotts wife is not known to the public. So thats what I did! 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. They have nothing to fall back on. But within three months of starting my career, my introduction to the real world, I became very interested again in the concept of personal finance. And the reason for that is because they have no cushion. For example, we had Erin Chase on there. Our opinions are our own. Read this book now. Thats going to reduce wealth inequality in this country. 'A lot of people are angry at me today but I haven't yet heard anyone disagree,' he told his 867,000 followers. I think that its increasingly difficult. Scott Trench: Oh, Ive love it! . The mortgage is currently $1400 because I refinanced. Theyre unable to take advantage of opportunity. 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. . House hacking for life!! By clicking Accept all you agree that Yahoo and our partners will process your personal information, and use technologies such as cookies, to display personalised ads and content, for ad and content measurement, audience insights, and product development. Education:He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. So the only criteria that I have that I think that you should really kind of strictly enforce is: Will this property make sense right now?, the day you buy it as an investment property if you dont live there. - What else would be considered an asset in his model? I believe I currently was able to getI remodeled and got one of the units up to $925. Scott Trench: Yeah, I got promoted to president of Bigger Pockets maybe last Tuesday I think. And in a good market, thats not so important. This is in an expensive marketwere not able to accumulate anything. 2. Scott Trench: Its been going pretty well. I think its going to take me a good bit of time here. 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. Are there any links in particular youd recommend? After high school, Scott enrolled at Vanderbilt University where he earned a Bachelor of Arts in Economics and History in 2013. Mad Fientist: Yeah, absolutely. Andrew Ross Sorkin - $10 million I actually enjoyed the audio version of it in the gym. 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. Scott Trench: Yeah. Thats another good thing. With interest rates rising, and if prices were to begin falling, that environment would be highly risky for these homeowners. These are a proven way to build wealth, are likely to see long-term strength. But its funny because I hear these people, theyre like, Oh, Im very well into FI. I have my eye on maybe branching out into some other types of investments. Unemployment is likely to remain low simply due to the fact that the minimum wage is so low, giving the Fed wide room to run in tackling inflation again, what I like to refer to as their first enemy. Scott Trenchreal estate investor, . So, the final step I think is it goes on forever basically. No, heres what I was thinking. And theyre fine with that. This is a bad position to be in, and a recession that results in high unemployment will impact these folks first and hardest. So, house hacking as I define it is buying a piece of investment real estate that will make sense as a rental property, as a cash flowing rental property for you after you move out; or otherwise, using your housing to build wealth. What Scott did was exactly what we did since 2010, except we did it differently (regular 2bd condos, not multi-dwelling places) and location (SF, bay area). Thanks for taking the time to read this post and thanks Scott for writing such a good book. But theres also this whole realm of entrepreneurship. Great episode Brandon and Scott!. But thats awesome. 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. I downloaded an audio book version of his book, Set for Life, and I really enjoyed it. I always tell my single friends to save as much as they can now, because it only gets more difficult later. Your email address will not be published. I was at a 50% savings rate before I got married and had a kid and bought a house. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. I started out working at a Fortune 500 company. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Chart Your Progress to Financial Independence! But if your house hacking correctly, you have three options. Sarah Peck, Richard Epstein, Logan Sekulow, Jim Harold, Ameera David is an Arabian-American journalist, news reporter, and anchor. These offers do not represent all available deposit, investment, loan or credit products. Thats fantastic. Well, thank you so much for coming on the show. Scott serves as the Co-Host of The BiggerPockets Money Podcast in Denver, Colorado alongside Mindy Jensen. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). 180 days of social studies 5th grade answer key; florida high school track records; milwaukee packout mods; metallica madrid 2022; did doris hamner have polio; maple leaf farms owner; And any time Mindy gives such a glowing recommendation for someone, I definitely check them out. And that is my question. 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. 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. 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. Start tracking your net worth with Personal Capital using our link. So you mentioned your first $25,000. Instead, I think that we will simply see real wages fall relative to inflation. So you were my gym companion for a good week or two. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Thats great. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. And I wanted it as soon as possible. This is whyI was already fairly frugalThis is why Im saving. Why Frugal Living Will Only Get You So Far. The first $25,000 was focused on frugality and cutting expenses. 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! This is it!. That's $1 MILLION. Buy, Rehab, Rent, Refinance, Repeat is the five-part BRRRR And Im also looking forward to exploring some of the strategies that he used personally to get to the stage that hes at today like house hacking and real estate investing. 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). The next $75,000, youre looking at housing and income generation. He married his lovely wife, with whom he now lives in Denver, Colorado. I just mention I have the three properties. 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: There were some rapping involved in that show. When I started on the road to financial dependence, thankfully, I was already in stage three. Scotts estimated net worth is $1.5 million. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. So hes stepped aside. 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. 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. What did Mindy see in you do you think? Its just that the math doesnt work like that. Thanks to both of you and him. Are they easier to manage initially? Online Loan Companies To Borrow From Home. So lets dive in! And once you get to $100,000 in investible liquidity, now how you invest that money begins to become really important. Scott Trench: So the quadplex that I purchased, I bought it for $355,000. 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: But well get her to rap on one of the future ones coming up. I put down $12,000. The next phase is getting that first $100,000. If somebody is interested in getting started in house hacking, what would you recommend as far as getting duplexes? And then, one-thirdthat was two-thirds I just described there, housing, transportation and foodone third is everything else. If you dont have that option, then you are stuck. So hopefully, it will happen. And Erin Chase is an expert grocery shopper. He serves as a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. Or do you think go straight for something like the quadplex if you have the capital to invest? Last, I wonder, with the Republicans predicted to pick up a lot of seats in November, whether the Fed is likely to attempt to stimulate a Biden Administration economy at this point. At the moment, no information about his parents or siblings is available. 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. His parents brought him up in the United States. I cant really see a political advantage for him in doing that. Once your account is created, you'll be logged-in to this account. So, if I kind of maintain my system of dollar cost averaging through real estate, I believe that Ill have a good result at the end. 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. BiggerPockets is a complete resource for anyone looking to succeed in the world of real estate investing. Mad Fientist: Wow! Mad Fientist: Yeah, this is a long time coming. I bought it in northeast Denver, and things worked out. I mean, that obviously worked out for you, Brandon. Scott Trench: Yeah, absolutely. 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. Ive never been to Colorado, and I love mountains. Scott Trench: Yeah, I think thats exactly right. Scott Storch is a record producer, songwriter, and former musician who began his career in 1991. And theyre profitable. Thats really important for investors, because the Feds dual mandate is to keep both inflation and unemployment low. Currently, real wages are still at relative highs, and asset prices are finally moving back towards what seem to be more sustainable valuations. If Im (Fed Chairman) Jerome Powell, my task is clear: Beat inflation. Anyway, thanks a lot for listening. So, once you have a hundred thousand dollars in investable liquidity, if youre spending less than $25,000 or $30,000 a year, by definition, that means you have years of financial runway, years of the ability to go and take advantage of opportunities, or just simply the cash to make a meaningful investment, at least relative to your spending. And I knew that my salary at financial analyst 2 would be about $56,000 to $58,000 (again depending on performance). On todays show, Im excited to introduce Scott Trench from BiggerPockets.com. By layering philosophy with practical knowledge, Set for Life gives young professionals the fiscal confidence they need to conquer financial goals early in life. Also, you have nothing to invest, so you cant get a higher return on your invested dollars if you have nothing to invest. Turning Your Largest Expense Into An Income Producing Asset, The Financial Impact Of Housing Decisions, An Introduction To Investing For Early Financial Freedom, Habits And Their Impact On Financial Freedom. I know Ive had Chad Carson on the show, and weve talked about it in the 1500s. Dont get into real estate investing if you arent willing to invest the time up front to learn this business. 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. 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. I know a lot of people that would be happy with a raise of that level. http://traffic.libsyn.com/madfientist/scott-trench-interview.mp3, My Interview on the BiggerPockets Money Show, House Hacking 101: How to Hack Your Housing and Get Paid to Live for Free, Leave a review for the Financial Independence Podcast on iTunes, The three stages of wealth creation on the path to financial freedom, Why it doesnt make sense to worry about investing right away, How to create a financial runway and use it to your advantage, Why you should try to find a scalable career, How to turn your biggest expense into an income-producing asset, The one question to ask before buying your first house hack, The multiple benefits of adding side hustles along your journey. Scott Trenchs net worth is estimated to be $1.5 million. Nice episode! Cash obviously, but what else would apply as a real asset? Go find a career or an opportunity that you believe offers you the potential to scale, but will not allow you to lose money on a monthly basis. The corners that you can cut when you are single are way more than if you have other people you are caring for. Invest in real estate and never run out of money! 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. My odds of success of winning this hand based on what I know are 70%. So theyre not even recognizable by name, the companies? So how did you get interested in real estate? 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. I think that the two things that come into play there are going to be entrepreneurship, asset creation, and then investing. . David Greene shares the exact systems he used to scale his Its like a 1% interest rate. 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