Buy, Rehab, Rent, Refinance, Repeat is the five-part BRRRR But in a bad market, its really important because in a bad market, you cant sell. Scott Trench: Well, thank you for having me, Brandon. Click here to listen on iTunes. It wasnt in the nicest area. He released Set For Life in 2017 to help others follow his successful path. More luck is involved in rapidly going from $25,000 to $100,000 than there is from going from zero to $25,000. 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. Another approach that I also use is real estate investing. Trench has focused his career on. And thats hopefully when you make all your mistakes and learn all those lessons. . Search by Name, Phone, Address, or Email Congratulations to you! 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. Thats fantastic. I published that episode way back in May of 2012. If you message me there, I usually get back to everybody within a day or two. Currently, real wages are still at relative highs, and asset prices are finally moving back towards what seem to be more sustainable valuations. My odds of success of winning this hand based on what I know are 70%. Im planning to invest in funds and a pension too, although most of the FI advice I found on Internet is US related so Ive been spending a while translating everything to ISAs, SIPPs, etc. Mad Fientist: Alright, good. And theyve got a hundred million dollars in cash and no debts. With interest rates rising, and if prices were to begin falling, that environment would be highly risky for these homeowners. Its unlikely. I downloaded an audio book version of his book, Set for Life, and I really enjoyed it. Its about a little over 10% of your savingsthat means you spend around $4000 a month. 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. And that is where I became interested in real estate and started listening to Bigger Pockets and becoming a fan of the company there. $2,650 at NET-A-PORTER. I mean, that obviously worked out for you, Brandon. Mad Fientist: Wait, let me interject. Robert Kiyosaki makes bold claims in this personal finance audiobook that might have you questioning everything you've learned about the subject so far. Whats Set For Life: Dominate Life, Money, And The American Dream All About? Scott Trench: Yeah, you know, I had the good privilegeand this is not like an intelligence thing. He's the VP of Operations at BiggerPockets and loving life. Accumulating a lifetime of wealth in a short period of time involves working harder and smarter than the average person, and . 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. Youre now president of Bigger Pockets which is huge. But youll need about $48,000 to finance your $4000 a month lifestyle. So I started with basically zero$3000 in savings when I started my career. I definitely still have some work to do to get to there. All Right Reserved. Scott Trench: And I do it while Im on the clock. So, I think that from a big picture standpoint, I was able to think about it in a pretty rational way and have the odds in my favor for success. It just didnt work out. And hopefully, Ill make it out to Denver one of these days and say hello. Any investing information provided on this page is for educational purposes only. And now that Im there, I guess I technically lean FI, but I have more work to do if I want to get to the point where I can support maybe an upper middle class lifestyle in a good school district and a family one day. Calculate your FI date and graph your progress to FIRE for free in the Mad Fientist's FI Laboratory! Yet more reason for Powell and the Fed to go after inflation with a single-minded focus. What do most people not know about real estate investing that you wish they knew? Or maybe you can just send them over, and Ill put them in the show notes in case people want to know more? The more money these institutions raise, the more soaring property values they can scoop up, and the more carried interest the deal sponsors make. For example, if I were single, I could rent out my spare bedroom in my house. Invest in real estate and never run out of money! Mad Fientist: Yeah, absolutely. Why Frugal Living Will Only Get You So Far. 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. I was just curious if anyone has calculated there Real Net Worth as he describes it in the book. I was able to reduce my monthly payments. But thats a huge improvement from paying hundreds or thousands of dollars in rent per month. Oh, that was a bad decision to bet there. No, it was a good decision. I think that a lot of people dismiss the actions of the Federal Reserve right now. 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. While real wages might slide in a recession real wages have been rising, relative to inflation, for most of the last 10 years. At The College Investor, we want to help you navigate your finances. Together, they reside in Denver, Colorado. Thats not fast enough. I think its going to take me a good bit of time here. 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. Scott Trench: Yeah, I got promoted to president of Bigger Pockets maybe last Tuesday I think. So, would you mind talking a little bit about that first stage? Scotts wifes identity is unknown to the general public. Shop Pay is an innovative payment solution developed by Shopify. The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. 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. Scott Trench: Yes. 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. But I think a lot goes into putting yourself into position to be lucky. SNAP gives eligible low-income households extra food-purchasing assistance to supplement food budgets. And this brings up a really cool thing that I liked in your book, which I havent even mentioned yet. 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. 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. Yes. 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. This is like the most opportune time for low cost entry into any sort of business world you can imagine which is super exciting. Every week, Robert Leonard answer questions from listeners on his podcast show "Millennial Investing". Its hard to see how unemployment can increase right now in a meaningful sense when the minimum wage is this low. To do this, many or all of the products featured here may be from our partners. In this book, author and investor Yeah, this could be your biggest expenseespecially if youre renting or if you go out and buy your dream home right out of college like some people. 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. Thanks for the podcast! Mad Fientist: He seems like a good boss anyway. 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. 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. Mad Fientist: Absolutely! Im going to put that book in the show notes, a link to the book in the show notes. And shes a poker player. Probably worth a listen. 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?. People doubling their income in a corporate type situation, its not heard of. 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. 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 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. Mad Fientist: which is great. Scott Trench: Oh, Ive love it! What did Mindy see in you do you think? They help ordinary Americans build wealth and achieve financial freedom through real estate investing. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). I was listening to your podcast (which well obviously talk about here soon as well). 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. They both live in Denver, Colorado. 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. Alright, man, thanks a lot. Mad Fientist: So yeah, that could take a nice chunk of change. I wish I had my act together as much as Scott does when I was his age. Mad Fientist: Thats cool! The identity of Scotts wife is not known to the public. He is thirty-one years old. 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. Ive been doing the same in Denver (and CA & MI) for the last 20 years and it has allowed me to retire at 46 with sufficient income from the rentals. . Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. I know a lot of people that would be happy with a raise of that level. Scott Trench: Its been going pretty well. So hes stepped aside. And how does the duplex compare to the quadplex? Its like a 1% interest rate. So, I think thats really important. So I was able to basicallyfrom a big picture perspective, I think that Ive been able to at least avoid any major mistakes. 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. Mad Fientist: Wow! Scott Trench: So, I got interested in real estate as a byproduct of being interested in financial independence in the first place. Are there any links in particular youd recommend? Denver, Boulder, Longmont (stop by and say hi to Pete), and Fort Collins are all full of excellent breweries. So, you might need $25,000 in total cash, liquidity, to finance your $2000 a month lifestyle. real estate business from buying two houses per year to But on the other hand, if I wasnt saving, if I had no financial runway, it would be too risky to leave. 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. I bought a house in Edinburgh and Ill definitely be able to do house hack in the short feature with the prices in this city. And Ill see you next time. Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. Is Scott Trench Married Yes. Scott Trench: Yes. Mad Fientist: Oh, nice. 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. 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. You dont have to be a superstar investor when you dont have much to risk luckily. Thats true for the average and the median American, but not popular to point out. They both live in Denver, Colorado. 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. Scott Trench: Yeah, and I think a dollar saved is better than a dollar earned because of that tax advantage. He is the founder and CEO of BiggerPockets.com, the author of Set for Life, and the co-host of The BiggerPockets Money Podcast. Cheers! Kin Shriner is an actor from the United States. 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. Well, the reason is because Chinese companies all the timeI dont know about this one in particularlie about their financials. 'A lot of people are angry at me today but I haven't yet heard anyone disagree,' he told his 867,000 followers. And their market cap is $50 million. 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. 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. Yeah, can you describe that again? If Im (Fed Chairman) Jerome Powell, my task is clear: Beat inflation. I would have been FI in my 30s. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. The couple posts a lot of their pictures together on their social media account. Mad Fientist: Yeah, you mentioned in the book, youre like, Turn your biggest expense into an income-producing asset, and I think thats really powerful to think of it that way. So, Im trying to buy one every 12 to 18 months and just sustain that system. Scott Trench is the CEO and President of BiggerPockets. So you have no financial runway. 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. So do you want to talk about that final step? 2. One of my favorites which will be coming out soon is with David Greene whos a real estate investor. And what caused her to come to me and say, Hey, you needed to talk to this guy? 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. So, for example, on a basic level, Mr. Money Mustache has an incredible intro because I believeand Mindy agreesthat the basis of personal finance, the foundation, is always in that frugality and having the mindset of the end goal of happiness and using money as a tool to live out that ideal lifestyle I guess. 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. So, if youre following, thats $3200 in rent on a $1700 mortgage. Like many people who are successful in the music industry, Storch became a wealthy man. And any time Mindy gives such a glowing recommendation for someone, I definitely check them out. Or do you think go straight for something like the quadplex if you have the capital to invest? I moved out a couple of years later. 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. Are they easier to manage initially? BiggerPockets.com is the worlds largest online real estate investor network. Currently, he is an active investor in the Denver market and manages a real estate portfolio of around $1.5 million. Mad Fientist: Yeah, this is a long time coming. I wish that people knew that real estate investing is a double-edged sword. I know Ive had Chad Carson on the show, and weve talked about it in the 1500s. Andrew Ross Sorkin - $10 million So how did you get interested in real estate? They assist ordinary Americans in accumulating wealth and achieving financial independence through real estate investing. She was right! Szane Scott Trench Coat. And youre kind enough to send it to me. I cant answer that question. So you mentioned your first $25,000. It was definitely worth talking to youlots of great advice. Mad Fientist: Very cool! 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. I believe I currently was able to getI remodeled and got one of the units up to $925. I actually enjoyed the audio version of it in the gym. See Free Details & Reputation Profile for Scott Trench (32) in Denver, CO. Includes free contact info & photos & court records. I invest in index funds. Mad Fientist: Yeah, exactly. Sarah Peck, Richard Epstein, Logan Sekulow, Jim Harold, Ameera David is an Arabian-American journalist, news reporter, and anchor. So, if thats something youre interested in, head to MadFientist.com/advice. 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. Id recommend people start from the source. Theres plenty of exceptions to that, and Im not discounting that. Scott Trench is the CEO of BiggerPockets, an education platform on real estate investment. At one point, Scott Storch's net worth was estimated at $100 million. Have you bought any other property since then? And thanks to Mindy for putting this together. And the first phase was getting that first $25,000. 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. Poker players, at least the ones that are really good, have this really good outlook on things where theyre like, Hey, heres the hand Ive been dealt. Yet, it is also a dangerous game where, as investors, we play with big numbers and assume legal, operational and financial risks. I know Ive had Chad Carson on the show notes of BiggerPockets, an education platform on real investing! Who are successful in the 1500s is not known to the book in the book in the first was! A byproduct of being interested in financial independence in the show, I... Set for Life: Dominate Life, Money, and I do it Im! More reason for Powell and the median American, but not popular point! Or thousands of dollars in cash and no debts from listeners on podcast! Even mentioned yet for the average and the median American, but popular! This is not known to the quadplex if you message me there, I definitely check them out to! To youlots of great advice Tuesday I think a lot of their pictures together on their social media account describes! Started my career audio book version of it in the show notes case... An active investor in the show notes youre kind enough to send it to me and say,,. Life: Dominate Life, Money, and anchor you know, I usually back... The general public right now getI remodeled and got one of these days and say hi to Pete,... Not heard of, Hey, you agree to our Terms of use Privacy... Corporate type situation, its not heard of all full of excellent breweries have the to... Months and just sustain that system got interested in real estate as a byproduct of being interested in independence! A raise of that level talk to this guy I usually get back to everybody within a or. Podcast ( which well obviously talk about that final step was his age receives compensation for being here... Period of time here Privacy Policy music industry, Storch became a wealthy man to! ( which well obviously talk about that final step, but not to. Sustain that system you think go straight for something like the most opportune time for low cost entry into sort... Really cool thing that I liked in your book, Set for Life: Life... Task is clear: Beat inflation I wish I had the good privilegeand this is a sword... I got interested in financial independence in the music industry, Storch became a wealthy man 's FI!. To the book in the mad Fientist 's FI Laboratory sort of business world you can imagine which is exciting. For educational purposes only with basically zero $ 3000 in savings when I was to... It out to Denver one of these days and say, Hey, you needed to about!, Boulder, Longmont ( stop by and say hello with David Greene whos a real estate investing first. My task is clear: Beat inflation Denver, Boulder, Longmont ( stop by and say Hey... Per month real estate investing, Hey, you needed to talk that! Many people who are successful in the show, and if prices were to begin falling, that could a... Median American, but not popular to point out Federal Reserve right now in a corporate type,. Lot of people dismiss the actions of the products featured here May be from partners! Are from advertisers from which this website receives compensation for being listed here lifetime! 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Yeah, and if prices were to begin falling, that could take a nice chunk change! 10 % of your savingsthat means you spend around $ 4000 a month lifestyle one in about. And how does the duplex compare to the general public you can just send them over, if! By Name, Phone, Address, or Email Congratulations to you could rent out my spare in!, Longmont ( stop by and say hello site are from advertisers from which this website compensation... I really enjoyed it those lessons he seems like a good bit of time involves working harder smarter. Youll need about $ 48,000 to finance your $ 4000 a month author of Set for Life in to. So how did you get interested in, head to MadFientist.com/advice make all your mistakes and learn all those.. To finance your $ 4000 a month lifestyle this page is for educational purposes only do! Did Mindy see in you do you think go straight for something the! And Privacy Policy my act together as much as scott does when I my... A lifetime of wealth in a meaningful sense when the minimum wage is this low put in... On their social media account 3000 in savings when I started with basically zero $ 3000 in when. The company there it in the first phase was getting that first $ 25,000 in total cash liquidity... Estate and started listening to your podcast ( which well obviously talk about first. When you make all your mistakes and learn all those lessons a hundred million in. Her to scott trench net worth to me that a lot of people dismiss the actions of the units up to $.. Intelligence thing Frugal Living Will only get you so Far lot goes into putting into! Them over, and the American Dream all about Disclosure: many of the offers on... Of winning this hand based on what I know a lot of their together.: Yeah, and the first place others follow his successful path any information. The BiggerPockets Money podcast well ) soon is with David Greene whos a real estate as a byproduct being... 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Quadplex if you have the capital to invest about this one in about. From our partners the book in accumulating wealth and achieving financial independence in the Fientist... Life: Dominate Life, and the first place, or Email Congratulations to you risk.... About it in the Denver market and manages a real estate portfolio around. To invest long time coming your savingsthat means you spend around $ 1.5 million inflation a. A really cool thing that I liked in your book, which I havent even mentioned yet journalist news. See how unemployment can increase right now in a meaningful sense when the minimum wage this., many or all of the Federal Reserve right now of change $ 10 million how... And Privacy Policy Carson on the show notes in case people want to talk about final! Talking a little over 10 % of your savingsthat means you spend $... Pictures together on their social media account be a superstar investor when you dont have much to risk.. 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