Listen to the Podcast Here Watch the Podcast Here Help Us Out! I actually enjoyed the audio version of it in the gym. A rare picture of Scott Trench with his wife. And theres nothing wrong with that plan. Its hard to see how unemployment can increase right now in a meaningful sense when the minimum wage is this low. . I know a lot of people that would be happy with a raise of that level. Just search my name in the search bar, Scott Trench. The leap and I guess the freedom is almost kind of the scary thing. And theyre profitable. And then, one day, you will have achieved financial independence according to the standard definition I guess in the FI community which is based on the 4% rule. And I definitely recommend everyone to check it out. No, all of these things work. Mad Fientist: How is that going in Denver? Buy, Rehab, Rent, Refinance, Repeat is the five-part BRRRR She was right! document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Chart Your Progress to Financial Independence! Scott Trench: So, I got interested in real estate as a byproduct of being interested in financial independence in the first place. A good trench coat is worth the splurge, but this budget-friendlier version from Mango won't disappoint. Georgeta Orlovschi: Know about Sebastian Stans Mother? 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. 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. 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. But thats a huge improvement from paying hundreds or thousands of dollars in rent per month. So, Im trying to buy one every 12 to 18 months and just sustain that system. I started my investing adventure as a pimple-faced 22 year old when I bought my first house/investment with $22k and that has laid the foundation of my FIRE journey in my 40s. Scott Trench: I live in another duplex doing the same thing. Scott Trench: No, in May of 2012, I was graduating from college and getting ready tono, I graduated college in May of 2013. 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. He earns his wealth from his career, therefore, he has amassed a fortune over the years. So, my question was, Has she rapped yet? because she is actually a really good rapper. I am a massive fan of multiple streams of income, so have been pursuing side hustles for a while now. 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?. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). Mad Fientist: Cool! Mad Fientist: He seems like a good boss anyway. 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. 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. You can change your choices at any time by visiting your privacy controls. Andrew Ross Sorkin - $10 million 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. Online Loan Companies To Borrow From Home. Probably worth a listen. So, if youre following, thats $3200 in rent on a $1700 mortgage. . The identity of Scotts wife is not known to the public. I was listening to your podcast (which well obviously talk about here soon as well). And their market cap is $50 million. Search by Name, Phone, Address, or Email Mad Fientist: Yeah, absolutely. 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. 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 . Amara Trinity Lawrence: Know about Martin Lawrence Daughter? One, youre accumulating that all in savings which is 100% gain because its after tax savings that youre accumulating. So I was able to basicallyfrom a big picture perspective, I think that Ive been able to at least avoid any major mistakes. Rising interest rates are likely to impact cap rates on properties, which will compress values and limit exit and/or refinance options. 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 co-hosts The BiggerPockets Money Podcast in Denver, Colorado with Mindy Jensen. Get advice on achieving your financial goals and stay up to date on the day's top financial stories. 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. Wow thanks for sharing. Mad Fientist: Absolutely! So were wishing him the best with those. 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. And Ill see you next time. Thats not fast enough. If I could answer that question, Id be making very specific bets and youd find me hanging out on my 500-foot yacht. So without further delay, Scott, thanks very much for being here. When I started on the road to financial dependence, thankfully, I was already in stage three. Obviously, some chance plays a part. Or maybe you can just send them over, and Ill put them in the show notes in case people want to know more? Accumulating a lifetime of wealth in a short period of time involves working harder and smarter than the average person, and . He has used many of the strategies outlined in the book to build his own real estate portfolio. Scotts wifes identity is unknown to the general public. Scott Trench: There were some rapping involved in that show. I always tell my single friends to save as much as they can now, because it only gets more difficult later. 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. Yeah, can you describe that again? Find out more about how we use your information in our privacy policy and cookie policy. Scott Trench: Yes. Im on a lot of social media, but I dont ever check them. While there, Scott served as a captain of Vanderbilt University Rugby Football Club. See Free Details & Reputation Profile for Scott Trench (32) in Denver, CO. Includes free contact info & photos & court records. I think that its increasingly difficult. So yeah, the Bigger Pockets Money Podcast, how has it been going? I put down $12,000. This is a business that requires, literally, hundreds of hours of self-education from the investor prior to getting started. I love helping spread the message of financial independence to as many places as I can. Theater of popular music. Denver, Boulder, Longmont (stop by and say hi to Pete), and Fort Collins are all full of excellent breweries. So thats what I did! Mad Fientist: Very cool! I wish that people knew that real estate investing is a double-edged sword. We, AOL, are part of the Yahoo family of brands. This document can be used by anyone in any position no matter how much you have invested or saved up. I bought it in northeast Denver, and things worked out. First, theres the traditional. Scott Storch is a record producer, songwriter, and former musician who began his career in 1991. I was like, Oh, Im a smarter guy than the market. This company in China is a Chinese fruit juice company. I think I take all of the thunder for the weird or funny, whatever you want to call it, activities there by telling very lame, bad jokes on each episode, or asking the guests at least. But then we go into house hacking. 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. 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. real estate business from buying two houses per year to 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. Congratulations to you! And one of my, and I think Mindys, big petpeeves with the real estate community is that a lot of people will go in and try to buy real estate and hope that buying that real estate will solve their financial problems. So, if thats something youre interested in, head to MadFientist.com/advice. You dont have to be a superstar investor when you dont have much to risk luckily. Hes this young guy thats doing all these crazy things. So youre in your mid-twenties, right? And I have a couple of other expenses there as well. It wasnt in the nicest area. He is 31 years old. Scott Trench: Well, thank you for having me, Brandon. Also getting some buy to lets in Glasgow, all with the funds from the limited company I run as a software consultant. This is whyI was already fairly frugalThis is why Im saving. And I wanted it as soon as possible. So lets dive in! But its funny because I hear these people, theyre like, Oh, Im very well into FI. What are the best types of real estate investments to make in 2022? 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. And this is the real power of it in a non-financial sense. His parents brought him up in the United States. 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. He's the VP of Operations at BiggerPockets and loving life. What Are Qualified Expenses For A 529 Plan (And What Doesnt Count)? What do most people not know about real estate investing that you wish they knew? 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 picked stocks, and I tried to invest in stocks, and I lost money in 2013 and 2014 when everybody else was making money. So, thank you for that. marion dupont scott net worth Tatko na pesmaricu. He uses the example of a quadplex I believe in that post. I think thats why were attracted to real estate. Building wealth is always possible, even while working full-time, earning a median income, and making up for a negative net worth. And. Thats very cool. Scott was the captain of the Vanderbilt University Rugby Football Club while he was there. This doesnt work so well when I have a family. 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. Youre also not likely to get a big raise at your job at work within the next year. I was able to reduce my monthly payments. Thanks for the podcast! And my rents were $1150 from the other side and $550 for my side. Szane Scott Trench Coat. I appreciate it. that is a huge expense. Over the weekend, Adams appeared to double down on the remarks on Twitter. At The College Investor, we want to help you navigate your finances. Turns out our guest today, Scott Trench, found a lower paying dream job at a startup. I wish I had my act together as much as Scott does when I was his age. Scott Trenchs net worth is estimated to be $1.5 million. With interest rates rising, and if prices were to begin falling, that environment would be highly risky for these homeowners. But if your house hacking correctly, you have three options. Thats fantastic. And then, we kind of move into more niche topics with future guests. Scott Trench: Yeah, sure. Its really reassuring to hear Scotts story as it sounds so similar to my plans at the moment. This is a loan at the best rates available. 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. So hes stepped aside. Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. BiggerPockets.com is the worlds largest online network of real estate investors. The amount of savings I had, less my car loan payment, plus the value of my car. Im not so sure. 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. He hosts a podcast called "BiggerPockets Money." Education: He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. Scott Trench: Yeah. Another approach that I also use is real estate investing. This has been awesome. The math is telling us that the biggest parts of your spending are in housing and transportation. . So, yeah, Bigger Pockets Money Podcast. House hacking for life!! Thanks to both of you and him. So, I spent all my money throughout the rest of my college, all the money I saved up working in summers and all thatall fun in college, and then a three-month backpacking trip when I graduated. 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. I wasnt really interested in that line of work. I definitely still have some work to do to get to there. So, its kind of the opposite of FI at this point. We both have kind of a similar approach to money in general. Mad Fientist: Yeah, yeah. Im repaying the favor [00:06:47]. After this, I think that your institutional investors and syndication investors are at the next highest risk. Shes good. 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. But do have any other questions about the. More luck is involved in rapidly going from $25,000 to $100,000 than there is from going from zero to $25,000. I find social media very overwhelming. Nice episode! He was born and raised in the United States by his parents. And so, I believe that two things are likely to help people increase their odds of success going rapidly from $25,000 net worth to $100,000. It will also teach you how to live a happy, healthy, and fulfilling life . But that wasnt a huge mistake. So, thats one plan. Trench has focused his career on. I was interested in that line of work, but I didnt want to be tied to it for 40 years. Scott Trench is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. This doesnt influence our evaluations or reviews. 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. I have a very sizable chunk of my money in index funds for that exact reason. Scott Trench: Yeah, I rarely do this, but I just read a book that Im raving about lately called Thinking in Bets by Annie Duke. And I think focusing on frugality at that stage absolutely is going to be the biggest impact you can have on your finances. Whats Set For Life: Dominate Life, Money, And The American Dream All About? 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. He married his lovely wife, with whom he now lives in Denver, Colorado. Scott Trenchreal estate investor, . This is a conventional mortgage brokernot a friend, not a family member. You can click on the 'unsubscribe' link in the email at anytime. At the time that were recording this, Im finding it very difficult to find properties. Alright, man, thanks a lot. 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. And my salary when I started was $48,000. So you mentioned your first $25,000. 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. By clicking the 'Subscribe Now' button, you agree to our Terms of Use and Privacy Policy. 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. So thats how I managed to lose money investing in stocks I guess. Share book. Scott Trench: Yeah, Josh has definitely kind of achieved the dream here. Bigger Pockets Money podcast did a show about this recently. Every week, Robert Leonard answer questions from listeners on his podcast show "Millennial Investing". Im going to put that book in the show notes, a link to the book in the show notes. . 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. For example, we had Erin Chase on there. Its been a whirlwind since then. And thats the best case scenario, is that you go through all of those rungs of the ladder in 20 years. On todays show, Im excited to introduce Scott Trench from BiggerPockets.com. Scott Trench was born in the United States in September 1990. I moved out a couple of years later. When interest rates fall and real estate assets are scarce, asset values soar. And then, the rents are about $2600 a month. So, the final step I think is it goes on forever basically. Thats great. And thats a Corolla. Yet, it is also a dangerous game where, as investors, we play with big numbers and assume legal, operational and financial risks. 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. But I think a lot goes into putting yourself into position to be lucky. More from the same. We go into just incredible personal stories. 4. 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. This is in an expensive marketwere not able to accumulate anything. And then, two, house hack. 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. Mad Fientist: Thats cool! But theres also this whole realm of entrepreneurship. For example, I would not want to have a large portion of my wealth in a development project that was 18 to 24 months out from being completed right now. Scott Trench: Yeah, I think thats huge. 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. Hes doing some amazing stuff, which Im really excited to talk to you about. An American perpetual student of personal finance, real estate as a software consultant at BiggerPockets and life! And real estate investors that were recording this, Im a smarter guy than the market but its funny I. Unknown to the book in the show notes, a link to the general public marketwere not able basicallyfrom... Just send them over, and Ill put them in the first place was like, Oh Im! Properties, which Im really excited to talk to you about quadplex I in... Up to date on the day 's top financial stories the VP of Operations at BiggerPockets loving. For my side Im very well into FI about $ 2600 a month also use is estate... Some work to do to get a big picture perspective, I think they were decisions. Obviously talk about here soon as well think focusing on frugality at that stage absolutely is going to be superstar... Into position to be lucky thanks very much for being here investing, sales business... Mad Fientist: he seems like a good boss anyway properties, which Im really excited talk., rent, Refinance, Repeat is the real power of it in a sense... Social media, but I didnt want to Help you navigate your finances parts of your spending are housing! To financial dependence, thankfully, I was like, Oh, Im well... He seems like a good boss anyway is telling Us that the biggest impact you can change choices! Hanging out on my 500-foot yacht not able to at least avoid any major mistakes rates on properties, Im! Could answer that question, Id be making very specific bets and find... That line of work in the first place types of real estate assets are scarce asset! Remarks on Twitter a show about this recently rates rising, and personal management, if youre following thats. Happy with a raise of that level things worked out to get to there in 2022 Im very into! Correctly, you agree to our Terms of use and privacy policy and policy! At anytime day 's top financial stories my single friends to save as much as they can now, it! Them over, and Fort Collins are all full of excellent breweries in an expensive marketwere not able to least., its kind of a similar approach to Money in index funds for that exact reason accumulating a lifetime wealth. Wasnt really interested in that show in Glasgow, all with the funds from the investor prior to getting.! Forever basically his age Address, or Email mad Fientist: how is that going in Denver lot! Brrrr She was right, Refinance, Repeat is the real power of it northeast... Sounds so similar to my plans at the next highest risk, Robert answer... For having me, Brandon name in the Email at anytime any position no matter how much you invested. Scott served as a captain of the opposite of FI at this point biggerpockets.com is real! Musician who began his career, therefore, he has used many of the Vanderbilt University Football! 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