Scott Trench: Its been going pretty well. And thanks to Mindy for putting this together. 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. Nice episode! Mad Fientist: Yeah, absolutely. Obviously, some chance plays a part. Amara Trinity Lawrence: Know about Martin Lawrence Daughter? Join over 100,000 others on the Mad Fientist email list to get free updates and other exclusive content! Search by Name, Phone, Address, or Email 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? Its really reassuring to hear Scotts story as it sounds so similar to my plans at the moment. Scott Trench: Yes. Dont get into real estate investing if you arent willing to invest the time up front to learn this business. And then, finally, the next phase is getting from $100,000 to financial freedom. Congratulations again on the promotion and the book. 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. Theres plenty of exceptions to that, and Im not discounting that. The mortgage is currently $1400 because I refinanced. DO NOT Sell My Personal Information. 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. BiggerPockets.com is the worlds largest online network of real estate investors. Any investing information provided on this page is for educational purposes only. real estate investing strategy that makes financial freedom 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, you might need $25,000 in total cash, liquidity, to finance your $2000 a month lifestyle. 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. 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. Invest in real estate and never run out of money! So, its kind of the opposite of FI at this point. Scott Trench: Well, I think we both share a lot of interest in personal finance. Listen to the Podcast Here Watch the Podcast Here Help Us Out! And Im going to hopefully get it out of the library as soon as I can because that sounds really good. . And once I heard that, everything clicked for me, and I was like, This is it. Scott Trench was born in the United States in September 1990. One, go find a new job. Melissa joined CNBC in 2004 where she serves as a reporter and an anchor. 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. Thats MadFientist.com/advice. And I knew that my salary at financial analyst 2 would be about $56,000 to $58,000 (again depending on performance). I started out working at a Fortune 500 company. 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. Theres a lot more factors. And so, thats the biggest hack that I can think of, like the biggest trick that a median income earner can do on the side to drastically cut their expenses, and then automatically put yourself in a position to have a significant cash flowing asset after a year or two. The corners that you can cut when you are single are way more than if you have other people you are caring for. 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. Now to strategize on which to sell and when to acquire my forever home. Thats not fast enough. His net worth is estimated to be $1.5 million. Im now working very long hours and trying to figure out how to grow the company and all that kind of stuff. 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. Its good to make those mistakes early. And my rents were $1150 from the other side and $550 for my side. Set For Life: Dominate Life, Money, and The American Dream. So, thats one plan. Scott Trenchreal estate investor, . They both live in Denver, Colorado. Earning an $8000 raise after a year is great. Robert Kiyosaki makes bold claims in this personal finance audiobook that might have you questioning everything you've learned about the subject so far. But on the other hand, if I wasnt saving, if I had no financial runway, it would be too risky to leave. SNAP gives eligible low-income households extra food-purchasing assistance to supplement food budgets. She was right! Its about a little over 10% of your savingsthat means you spend around $4000 a month. Mad Fientist: Mindy has been like, Youve got to get him on the podcast. 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. So, some people are starting from a position where they already have a good $25,000 saved up through whatever fortune, whatever theyve done previous to this point. At the time that were recording this, Im finding it very difficult to find properties. But two, youre decreasing the amount of money that you need to produce financial runway. Scott co-hosts The BiggerPockets Money Podcast in Denver, Colorado with Mindy Jensen. I really appreciate it. 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. Scott Trench. So, that was your first $100,000. He serves as the CEO of BiggerPockets.com, Author of Set for Life, and Co-Host of The BiggerPockets Money Podcast. And so, its all about increasing your odds of success I guess at this point. But thats awesome. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. I just mention I have the three properties. Scott Trench: But well get her to rap on one of the future ones coming up. What are the best types of real estate investments to make in 2022? Early life and C. Amanda Moye Brown: Do you want to know about Wes Browns Wife? David Greene shares the exact systems he used to scale his 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. Mad Fientist: Yeah, absolutely. Scott Trench: Oh, Ive love it! 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. Oh, that was a bad decision to bet there. No, it was a good decision. Im going to put that book in the show notes, a link to the book in the show notes. Scott Trench: So the quadplex that I purchased, I bought it for $355,000. I just think its lower odds of success than maybe focusing on savings first. Scott Trench: Yeah, I think thats exactly right. But its very exciting, and its like the perfect world for me because I just love Bigger Pockets. Have you enjoyed it? This is a loan at the best rates available. So, we are interviewing people that have expertise in one of these areas or niches in these areas or stories that embody this kind of approach, so that people are not pigeonholed into one type of investing or one type of real estate. And in a good market, thats not so important. You can download a free copy there. 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 any time Mindy gives such a glowing recommendation for someone, I definitely check them out. But youll need about $48,000 to finance your $4000 a month lifestyle. Scott Trench attended Vanderbilt University after high school, where he earned a Bachelor of Arts in Economics and History in 2013. Read this book now. But for those who may not have heard that episode, could you just describe what house hacking is? marion dupont scott net worthNitro Acoustic. 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. I think that a lot of people dismiss the actions of the Federal Reserve right now. I downloaded an audio book version of his book, Set for Life, and I really enjoyed it. And theyre profitable. Also, you have nothing to invest, so you cant get a higher return on your invested dollars if you have nothing to invest. 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 started acquiring more properties as he worked with Josh and later became such a crucial part of the BiggerPockets family, he was promoted to president. 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). So my first job was at a Fortune 500 company as a financial analyst 1. And he wrote How to Hack Your Housing and Get Paid to Live For Free. And yeah, hopefully, Ill speak to you soon. Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. I was listening to your podcast (which well obviously talk about here soon as well). 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. 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 has used many of the strategies outlined in the book to build his own real estate portfolio. 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. 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. The next phase is getting that first $100,000. Its an app that people can use just like a regular wallet to store their card details and information. 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