It was definitely worth talking to youlots of great advice. 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! 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. I think that a lot of people dismiss the actions of the Federal Reserve right now. And I knew that my salary at financial analyst 2 would be about $56,000 to $58,000 (again depending on performance). 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. So, I mentioned your podcast briefly, but I definitely want you to talk about it because your co-host is one of the people that has been on my show probably more than anyone else. Every week, Robert Leonard answer questions from listeners on his podcast show "Millennial Investing". Scott Trench is the CEO and President of BiggerPockets. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). This has been awesome. Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. Mad Fientist: Thats very cool! $2,650 at NET-A-PORTER. Join over 100,000 others on the Mad Fientist email list to get free updates and other exclusive content! Side hustles are still a new thing in my part of the world (New Zealand/Australia) but growing in momentum. So, if youre following, thats $3200 in rent on a $1700 mortgage. 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. 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. 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 . And their market cap is $50 million. Who cares if its underwater in terms of you owe more than its worth as long as its cash flowing? His net worth is estimated to be $1.5 million. If somebody is interested in getting started in house hacking, what would you recommend as far as getting duplexes? Scott Trench: Sure! Thats awesome. One of my favorites which will be coming out soon is with David Greene whos a real estate investor. So yeah, the Bigger Pockets Money Podcast, how has it been going? Scott Trench: So, I got interested in real estate as a byproduct of being interested in financial independence in the first place. BiggerPockets is a complete resource for anyone looking to succeed in the world of real estate investing. So, itll take me a year or two to get to that point because I dont want to kick any tenants out or anything or raise the rent too quickly on them. SNAP Benefits: Can You Use EBT Card/Food Stamps To Purchase Hot Food. So was that your first property then, the duplex in Denver? Mad Fientist: Excellent! And thats the best case scenario, is that you go through all of those rungs of the ladder in 20 years. So one of the problems that a lot of people have I think when it comes to finance is theyre unable to take any risk whatsoever. Thats great. Cash obviously, but what else would apply as a real asset? When interest rates fall and real estate assets are scarce, asset values soar. And theres nothing wrong with this plan of index fund investing. Start tracking your net worth with Personal Capital using our link. And no one can go in and audit them and figure that out. Early life and C. Amanda Moye Brown: Do you want to know about Wes Browns Wife? We also get your email address to automatically create an account for you in our website. And I encourage people to go out and think about adding side hustles one at a time as theyre going down this path. Whats Set For Life: Dominate Life, Money, And The American Dream All About? I just mention I have the three properties. Enjoyed the podcast. And I think for that median income earner starting with zero, its with that savings position. Scott Trenchs net worth is estimated to be $1.5 million. Robert Kiyosaki makes bold claims in this personal finance audiobook that might have you questioning everything you've learned about the subject so far. I think that its increasingly difficult. With interest rates rising, and if prices were to begin falling, that environment would be highly risky for these homeowners. Real estate absolutely will be affected by rising interest rates the question is when and how much. I think that investors should avoid investments that are time bound. So, I think theres a couple schools of thought. So, that was your first $100,000. The mortgage is currently $1400 because I refinanced. Read this book now. You made the right choice. Just search my name in the search bar, Scott Trench. Mad Fientist: Nice! People doubling their income in a corporate type situation, its not heard of. Its good to make those mistakes early. Youre also not likely to get a big raise at your job at work within the next year. Im not so sure. Total Audience Reach (Twitter, Instagram, YouTube and TikTok). Shop Pay is an innovative payment solution developed by Shopify. Yet, it is also a dangerous game where, as investors, we play with big numbers and assume legal, operational and financial risks. Yeah, can you describe that again? 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. Those who buy in desirable locations in markets with strong long-term growth prospects and responsible amounts of leverage (or with all cash purchases) are likely to see a very satisfactory return over the long term, relative to other asset classes. This doesnt influence our evaluations or reviews. 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. Its just that the math doesnt work like that. On the flip side, wealth inequality skyrocketed as asset prices inflated with low interest rates. My odds of success of winning this hand based on what I know are 70%. Scott serves as the Co-Host of The BiggerPockets Money Podcast in Denver, Colorado alongside Mindy Jensen. Mad Fientist: Wait, let me interject. And yeah, youre 27 and youve done a ton of crazy, amazing stuff so far. 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. I am a massive fan of multiple streams of income, so have been pursuing side hustles for a while now. So, if thats something youre interested in, head to MadFientist.com/advice. Mad Fientist: Absolutely! If you message me there, I usually get back to everybody within a day or two. They help ordinary Americans build wealth and achieve financial freedom through real estate investing. Your email address will not be published. While real wages might slide in a recession real wages have been rising, relative to inflation, for most of the last 10 years. After high school, Scott enrolled at Vanderbilt University where he earned a Bachelor of Arts in Economics and History in 2013. Trench joined BiggerPockets in 2014 and is the CEO and president. I just finished up @Scott Trench book Set For Life. So, its kind of the opposite of FI at this point. Congratulations again on the promotion and the book. The next phase is getting that first $100,000. So the best place to find me is actually on Bigger Pockets. At the moment, no information about his parents or siblings is available. 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. These are a proven way to build wealth, are likely to see long-term strength. And thats kind of where we start getting into part two there which is $25,000 to $100,000. Greg Palkot is known for his work on Shepard Smith Reporting, America's Newsr, Who is Kin Shriner? And the first phase was getting that first $25,000. Hes this young guy thats doing all these crazy things. So youre in your mid-twenties, right? When I started on the road to financial dependence, thankfully, I was already in stage three. 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. Listen to the Podcast Here Watch the Podcast Here Help Us Out! 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). Yeah, no, absolutely. 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. So without further delay, Scott, thanks very much for being here. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. Currently, real wages are still at relative highs, and asset prices are finally moving back towards what seem to be more sustainable valuations. Scott Trench: Yeah, I think thats exactly right. And thats when I found your show, some time in that timeframe. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. Mad Fientist: Hey, I hope you enjoyed that interview with Scott. So how did you get interested in real estate? But youll need about $48,000 to finance your $4000 a month lifestyle. We go into just incredible personal stories. Throw all your additional cash into index funds, model it out using whatever percentage return youre comfortable with. I dont remember. But two, youre decreasing the amount of money that you need to produce financial runway. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. And this is the real power of it in a non-financial sense. What did Mindy see in you do you think? Yet more reason for Powell and the Fed to go after inflation with a single-minded focus. But in a bad market, its really important because in a bad market, you cant sell. He serves as the CEO of BiggerPockets.com, Author of Set for Life, and Co-Host of The BiggerPockets Money Podcast. But once Ive got that stabilized after a year or two, I think Ill have a very, very nice cash flow on top of what is already a satisfactory cashflow. These offers do not represent all available deposit, investment, loan or credit products. 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. Mad Fientist: Yeah, absolutely. Have you enjoyed it? Scott Trench: Sure! . But you get to this $25,000 or this one year of runway, and now you have a lot more options. I think that, sadly, those at the highest risk are middle-class American homeowners. This is a loan at the best rates available. I want to say it was probably November or December of 2013 is when I actually listened to your show and got this all kicked off. Who Should Read Set For Life: Dominate Life, Money, and The American Dream? Through a solid understanding of money management, calculated risks, and a lot of hard work, he has created financial freedom for himself as well as a successful real estate business in just a few years after graduating college. But on the other hand, if I wasnt saving, if I had no financial runway, it would be too risky to leave. Trench has focused his career on. But also, a dollar saved, at least a dollar of lifestyleyou know, if you can reduce your average monthly spending by a thousand dollars, thats better than increasing your average monthly income by a thousand dollars for a couple reasons. And everybody knew this except for me. Im now working very long hours and trying to figure out how to grow the company and all that kind of stuff. What do most people not know about real estate investing that you wish they knew? 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. 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. Youre now president of Bigger Pockets which is huge. Scott Trench: But well get her to rap on one of the future ones coming up. 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. And then, the rents are about $2600 a month. So lets dive in! This is whyI was already fairly frugalThis is why Im saving. I have a very sizable chunk of my money in index funds for that exact reason. More luck is involved in rapidly going from $25,000 to $100,000 than there is from going from zero to $25,000. Scott Trench: Its been going pretty well. 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. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. So, yeah, Bigger Pockets Money Podcast. Scott Trench: There were some rapping involved in that show.
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