They help ordinary Americans build wealth and achieve financial freedom through real estate investing. Scott Trench: Yes. Scott Trench: And particularly in terms of appreciation and real estate and stock markets. I would have been FI in my 30s. Earning an $8000 raise after a year is great. 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. Scott Trench: Oh, Ive love it! On todays show, Im excited to introduce Scott Trench from BiggerPockets.com. Id recommend people start from the source. So, those are two approaches for investing. He is thirty-one years old. I wanted to try to see if I could do much better than that. 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. And he wrote How to Hack Your Housing and Get Paid to Live For Free. Im not so sure. What are the best types of real estate investments to make in 2022? Its written for a median income earner that is starting with little to no assets but wants financial freedom. - What else would be considered an asset in his model? Required fields are marked *. 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. I think that the best type of real estate investments to make in 2022 are the same as theyve always been: plain, vanilla, long-term rentals comprising single-family rentals and small multifamily rental properties like duplexes, triplexes and quadplexes. I cant really see a political advantage for him in doing that. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. more attainable than ever. 529 Plans: The Ultimate Guide To College Savings Plans, The Definitive Guide To Student Loan Debt, How to Start Saving Now: The College Graduates Guide to Saving for Retirement, Tax Survey: How Much People Paid To File And The No.1 Tax Software They Used, Side-Hustles To The Rescue: Survey Shows 86% Stressed About Money & Inflation, 75% Of Students Would Still Choose To Work Even If They Didnt Have To. Particularly liked the part about a scalable career and adding side hustles along the way. 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. The next $75,000, youre looking at housing and income generation. Im going to bet on that and go with that. And thats the correct decision to make in that game. Scott Trench is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. 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. Scott Trenchis the epitome of the "grind until you shine" real estate investor. All the index fund investors were seeing strong returns. . Scott Trenchreal estate investor, . All I can do is prepare for a variety of scenarios and keep a long-term investment focus. So, do you think you stumbled upon it shortly after it was published or was this something that happened a little bit later. If so I was hoping to get some advice on a few questions I have in regards to it: - When he talks about real assets what all applies in this model? Scott Trench: Yes. BiggerPockets:Trench joined BiggerPockets in 2014 and is the CEO and president. The leap and I guess the freedom is almost kind of the scary thing. His parents brought him up in the United States. 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. 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. 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. Have you made any mistakes, or is there anything you would do differently if youre starting from scratch now? Its not to save the economy to support the Biden Administration. 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. Thanks for taking the time to read this post and thanks Scott for writing such a good book. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Accumulating a lifetime of wealth in a short period of time involves working harder and smarter than the average person, and Scott Trench--investor, entrepreneur, and CEO of. He has some family things that are going on. And that is where I became interested in real estate and started listening to Bigger Pockets and becoming a fan of the company there. Scott Trench: Yeah. And yeah, youre 27 and youve done a ton of crazy, amazing stuff so far. 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. So, that was your first $100,000. Read this book now. She and her husband interviewed me in #26. And Erin Chase is an expert grocery shopper. So, the goal of this show is to say, Hey, real estate is one part of a strong portfolio. And I believe it makes sense for many people. Lease Purchase, Lease Options, Tax Liens, Notes, Paper, and Cash Flow Discussions, Private Lending & Conventional Mortgage Advice, Real Estate Guru, Book & Course Reviews & Discussions. Youre welcome any time. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. Well, my goal was financial freedom. $305 at Sezane. Listen to the Podcast Here Watch the Podcast Here Help Us Out! We both have kind of a similar approach to money in general. He has used many of the strategies outlined in the book to build his own real estate portfolio. 4. Scott Trench: Yeah, absolutely. So lets dive in! Online Loan Companies To Borrow From Home. I think that its increasingly difficult. that is a huge expense. 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. In addition to his career, Scott is the author of Set for Life which was published in 2017. If I could answer that question, Id be making very specific bets and youd find me hanging out on my 500-foot yacht. So can you talk a little bit about that? So yeah, the Bigger Pockets Money Podcast, how has it been going? You can change your choices at any time by visiting your privacy controls. 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. marion dupont scott net worth Tatko na pesmaricu. The author, Scott Trench, has some very wise . And yeah, your last name is Trench, and you want how many trenchlings? So without further delay, Scott, thanks very much for being here. 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 thats the best case scenario, is that you go through all of those rungs of the ladder in 20 years. And this is the real power of it in a non-financial sense. Mad Fientist: Yeah, this is a long time coming. This doesnt work so well when I have a family. 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. In this book, author and investor 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. So what would yours be? 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). Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. So, thats one plan. Mad Fientist: He seems like a good boss anyway. buying two houses per month using BRRRR. So, I think thats where our friendship kind of kicked off, a pretty similar mindset on life and finance and real estate in general. Its like a 1% interest rate. 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. 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. Another approach that I also use is real estate investing. The more money these institutions raise, the more soaring property values they can scoop up, and the more carried interest the deal sponsors make. But I think a lot goes into putting yourself into position to be lucky. It's free. But you model it out, and you just throw all of your excess cash into a big pile. So hopefully, it will happen. Thats not fast enough. I downloaded an audio book version of his book, Set for Life, and I really enjoyed it. 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). Thanks for the podcast! Now, once you achieve a high savings rate and accumulate maybe six months to a year or more of this financial runway, options begin to present themselves in your life, things like you can go and take a job that pays you $40,000 instead of $50,000, but offers you a chance at a big bonus at the end of the year, or you can go work for free for an entrepreneur that you really admire and go learn a valuable skill set, or you can just take that $25,000 and invest or house hack the way I did. Scott is a lifelong learner of personal finance, real estate investing, sales, business, and personal management in the United States. So I was still drinking way too much better and trying to have too much fun when you published that. And then, we kind of move into more niche topics with future guests. Mad Fientist: How is that going in Denver? Scott Trench: Yeah, sure. And my rents were $1150 from the other side and $550 for my side. Mad Fientist: Wow! Mad Fientist: Very cool! A rare picture of Scott Trench with his wife. And I think that goes right along with what I just said before, its about increasing your odds of success, but understanding that some things are out of your control alongside that. Scott Trench is married to his lovely unnamed wife. 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. Who Gets Institutional Merit Grants At Private Colleges? Mad Fientist: Perfect! So hes stepped aside. Scott Trench: Sure! I actually enjoyed the audio version of it in the gym. So do you want to talk about that final step? And once you get to $100,000 in investible liquidity, now how you invest that money begins to become really important. $2,650 at NET-A-PORTER. So, the Bigger Pockets Money Show started as kind of a spin-off, an alternative to the Bigger Pockets I guess real estate podcast. Total Audience Reach (Twitter, Instagram, YouTube and TikTok). Scott Trench: Yeah, sure. The rents there are $800 per month on each of the units. 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. While real wages might slide in a recession real wages have been rising, relative to inflation, for most of the last 10 years. Im not sure how long youve known Mindy Jensen, but I think ever since she got introduced to you, shes been like, Brandon, you have to get him on the show. And the reason for that is because they have no cushion. Melissa hence worked as a reporter for the Great Neck Record and later on began her television career working for CNN Financial News and Bloomberg. Scott Trench: But well get her to rap on one of the future ones coming up. I just mention I have the three properties. Mad Fientist: And thats why I love these three distinct phases so much. 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. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. And my salary when I started was $48,000. BiggerPockets.com is the worlds largest online network of real estate investors. Shop Pay is an innovative payment solution developed by Shopify. 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. Scott Trench: No, in May of 2012, I was graduating from college and getting ready tono, I graduated college in May of 2013. So thats what I did! And thats a Corolla. Scott's estimated net worth is $1.5 million. Shes good. They feel that they are all politicians and wont allow the economy to slide. 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. Mad Fientist: Yeah, thats absolutely crazy! Probably worth a listen. 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. 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. Scott Trench: Yeah, you know, I had the good privilegeand this is not like an intelligence thing. It cost me $1700. 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. He married his beautiful wife with whom he resides in Denver, Colorado. Scott Trenchs net worth is estimated to be $1.5 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. Mad Fientist: Yeah, yeah. They both live in Denver, Colorado. And yeah, hopefully, Ill speak to you soon. Thanks for the podcast! The only caution wed give is currently you can no longer have positive cashflow in bay area as a real-estate investors, maybe in other part of the country, but not northern cal. Mad Fientist: Thats cool! Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. So you mentioned your first $25,000. 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. 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. And how does the duplex compare to the quadplex? 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. You could try starting a blog or a podcast. He is also a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. Joshua Dorkin, founder and CEO of BiggerPockets.com, joins me on the Financial Independence Podcast to talk real estate and entrepreneurship! 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. And then, the rents are about $2600 a month. 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! 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. I was interested in that line of work, but I didnt want to be tied to it for 40 years. Congratulations! 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. I mean, if you think about that, how on earth is their market cap less than that? Scott Trench: Oh, wow! And thats when I found your show, some time in that timeframe. At The College Investor, we want to help you navigate your finances. Theres so many different ways to make money that dont cost anything but your time, and maybe a few hundred to a few thousand dollars to try out. Its an app that people can use just like a regular wallet to store their card details and information. Yeah, no, absolutely. 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. But in a bad market, its really important because in a bad market, you cant sell. Building wealth is always possible, even while working full-time, earning a median income, and making up for a negative net worth. 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. Its not like I bought an [00:29:20]. He hosts a podcast called BiggerPockets Money.. So if youre following that, I was collecting $1700 in rent on $1550 mortgage. And Im looking forward to checking out the rest. And my book is written for a very specific audience. Trench has focused his career on. Scott was born in September 1990, in the United States. Thats very cool. 2023 GOBankingRates. SNAP Benefits: Can You Use EBT Card/Food Stamps To Purchase Hot Food. Over the weekend, Adams appeared to double down on the remarks on Twitter. And if they lose, youve got to be able to not tie the result of losing that hand with Hey! Being a parent changes the game. 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. Why Frugal Living Will Only Get You So Far. Scott Trench: So, I got interested in real estate as a byproduct of being interested in financial independence in the first place. Rich Dad Poor Dad: 20th Anniversary Edition. Who Is Scott Trench Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. I appreciate it. Or maybe you can just send them over, and Ill put them in the show notes in case people want to know more? Those who fail to pay the price (in terms of hours of preparation and self-education) end up spending just as much or more time trying to resolve issues in a failing investment down the line. The next phase is getting that first $100,000. I really appreciate it. Suppose that youre making $50,000 a year, if you save $500 a monthwhich is actually a pretty good savings rate. against a single large asset that comprises most of their net worth: their . Youre also not likely to get a big raise at your job at work within the next year. Thats really important for investors, because the Feds dual mandate is to keep both inflation and unemployment low. 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. He's the VP of Operations at BiggerPockets and loving life. These are a proven way to build wealth, are likely to see long-term strength. Like many people who are successful in the music industry, Storch became a wealthy man. But its funny because I hear these people, theyre like, Oh, Im very well into FI. Ive never been to Colorado, and I love mountains. He spent a few months and some more of his savings to renovate the building before moving in and finding tenants, officially beginning his house hacking journey. I know its a really hot real estate market these days. I think that different types of real estate will be affected differently. Enjoyed the podcast. 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. I bought my last property in June 2017. And I still have a little bit to go to completely pay it off. So theres a ton of great stuff there. And both Mindy and I are a little bit morehow do I describe it? The mortgage is currently $1400 because I refinanced. 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. Its putting money in your pocket every month. And any time Mindy gives such a glowing recommendation for someone, I definitely check them out. Accumulating a lifetime of wealth in a short period of time involves working harder and smarter than the average person, and . 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). Well, thank you so much for coming on the show. Mad Fientist: There was! And. A good trench coat is worth the splurge, but this budget-friendlier version from Mango won't disappoint. Scott has dedicated his career to helping ordinary Americans build wealth in part through real estate investing. And thanks to Mindy for putting this together. 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. I was listening to your podcast (which well obviously talk about here soon as well). I bought it in northeast Denver, and things worked out. 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. Im on a lot of social media, but I dont ever check them. 3. Body Measurements A family that reached financial independence while raising children. Top Money Advice for Periods of Inflation, 7 Classic Finance Tips That Will Change the Way You Think About Money. I think thats why were attracted to real estate. More luck is involved in rapidly going from $25,000 to $100,000 than there is from going from zero to $25,000. Well, thank you so much, Scott. You run out of money and you have to go and find similar paying work as your only option. 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. Theres a lot more factors. The corners that you can cut when you are single are way more than if you have other people you are caring for. Theyre unable to take advantage of opportunity. I mean, that obviously worked out for you, Brandon. Early life and C. Amanda Moye Brown: Do you want to know about Wes Browns Wife? Thats MadFientist.com/advice. 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. When I started on the road to financial dependence, thankfully, I was already in stage three. Thats awesome. 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. So, it sounds like you havent made any sort of mistakes or youve been on such a very amazing path seemingly as soon as you got your career? And yeah, back in my poker-watching days, I remember Annie Duke very well. At one point, Scott Storch's net worth was estimated at $100 million. 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. So, you might need $25,000 in total cash, liquidity, to finance your $2000 a month lifestyle.