I mean, if you think about that, how on earth is their market cap less than that? Mad Fientist: Perfect! Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. So, once you have a hundred thousand dollars in investable liquidity, if youre spending less than $25,000 or $30,000 a year, by definition, that means you have years of financial runway, years of the ability to go and take advantage of opportunities, or just simply the cash to make a meaningful investment, at least relative to your spending. And everybody knew this except for me. 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. So, my question was, Has she rapped yet? because she is actually a really good rapper. Mad Fientist: Hey, I hope you enjoyed that interview with Scott. Its not like I bought an [00:29:20]. Mad Fientist: Absolutely! You can change your choices at any time by visiting your privacy controls. I cant really see a political advantage for him in doing that. Scotts wifes identity is unknown to the general public. So, that was your first $100,000. Who cares if its underwater in terms of you owe more than its worth as long as its cash flowing? Scott was born in September 1990, in the United States. He is 31 years old. Are there any links in particular youd recommend? Yeah, Ill put a link to the first episode in the show notes. But what youre talking about is turning that into an income-producing asset instead. Scott Trench: Yeah, sure. And in a good market, thats not so important. I appreciate it. Starting with little-to-no savings, he was able to work his way up to his first rental, his second, and now his thirteenth. I was just curious if anyone has calculated there Real Net Worth as he describes it in the book. So if youre following that, I was collecting $1700 in rent on $1550 mortgage. I just mention I have the three properties. And my rents were $1150 from the other side and $550 for my side. Mad Fientist: There was! This is a conventional mortgage brokernot a friend, not a family member. And if you can house hacklike me, I house hacked close to work, so I could bike to workyoure able to eliminate basically 50%, lop off half of your expenses, in one single investment. 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. And that the step after financial analyst two of course is financial analyst 3, then senior financial analyst, then finance manager, senior finance manager, director of finance, senior director and so on, all the way up to CFO of a Fortune 500 company. 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. Also, you have nothing to invest, so you cant get a higher return on your invested dollars if you have nothing to invest. 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. But you wrote a great book called Set for Life. So you were my gym companion for a good week or two. And then, two, house hack. And Im going to hopefully get it out of the library as soon as I can because that sounds really good. Mad Fientist: Very cool. 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. Scott Trench: Yes. Congratulations! The thing I liked most about the book was that he broke the journey to financial independence down into three distinct stages, each with their own focus. Scott Trench: Yeah, I think thats huge. I bought my last property in June 2017. In addition to his career, Scott is the author of Set for Life which was published in 2017. marion dupont scott net worth Tatko na pesmaricu. I bought it in northeast Denver, and things worked out. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. $2,650 at NET-A-PORTER. 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. . By clicking Accept all you agree that Yahoo and our partners will process your personal information, and use technologies such as cookies, to display personalised ads and content, for ad and content measurement, audience insights, and product development. And once you get to $100,000 in investible liquidity, now how you invest that money begins to become really important. Thats MadFientist.com/advice. It wasnt in the nicest area. I could continue living in that property happily forever, I could sell it at a gain alongside all the other homeowners in the area, or I could rent it out. And I have a couple of other expenses there as well. 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. So thats not scalable. So, as part of my effort actually to become a better financial analyst at my job, I started listening to and reading all these content on finance and kind of discovered the concept of personal finance at some point. Scott Trenchis the epitome of the "grind until you shine" real estate investor. 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. I was just working towards that financial freedom. $305 at Sezane. Scott is a lifelong learner of personal finance, real estate investing, sales, business, and personal management in the United States. Thats awesome. I definitely still have some work to do to get to there. And theyre fine with that. Together, they reside in Denver, Colorado. Youre also not likely to get a big raise at your job at work within the next year. 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. Read this book now. And how does the duplex compare to the quadplex? Mad Fientist do you agree, that in UK its harder to make this work? And both Mindy and I are a little bit morehow do I describe it? One, youre accumulating that all in savings which is 100% gain because its after tax savings that youre accumulating. The rents there are $800 per month on each of the units. He hosts a podcast called "BiggerPockets Money." Education: He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. Im going to bet on that and go with that. And thats the correct decision to make in that game. Scott Trenchreal estate investor, . And he wrote How to Hack Your Housing and Get Paid to Live For Free. We both have kind of a similar approach to money in general. BiggerPockets role is to help them increase the odds of success in their investing careers and help them build wealth faster and with less risk by giving them access to great content about nearly every aspect of real estate investing imaginable. His net worth is estimated to be $1.5 million. You made the right choice. 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. 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. Scott is of white ethnicity and has American citizenship. And then, I actually stumbled upon your podcast, the very first episode, and Mr. Money Mustache. She and her husband interviewed me in #26. But when youre putting yourself into a position to take advantage of opportunities, and you do have options, and you do have that buffer (like that first $25,000 that we talked about), and youre able to take advantage of things that other people cant, and then yeah it may look lucky after the fact. Thanks for the podcast! 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. So were wishing him the best with those. So it gets harder to save, and you need way more the more your average monthly spending increases. Its like a 1% interest rate. And so, its all about increasing your odds of success I guess at this point. Im easily a 2% or 3% safe withdrawal rate, which is much more conservative than the 4% safe withdrawal rate, which means they have much more assets than they need to produce the level of income that they desire. One of my favorites which will be coming out soon is with David Greene whos a real estate investor. And. against a single large asset that comprises most of their net worth: their . This is what I want to do with money. that is a huge expense. But its very exciting, and its like the perfect world for me because I just love Bigger Pockets. 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. 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. Scott Trench: Yeah, Josh has definitely kind of achieved the dream here. Mad Fientist: Yeah, yeah. I believe I currently was able to getI remodeled and got one of the units up to $925. Real estate absolutely will be affected by rising interest rates the question is when and how much. He is also a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. Scott Trench: Yeah, you know, I had the good privilegeand this is not like an intelligence thing. Mad Fientist: Yeah, exactly. Any investing information provided on this page is for educational purposes only. 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. 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. Thats very cool. So without further delay, Scott, thanks very much for being here. This doesnt influence our evaluations or reviews. And hopefully, Ill make it out to Denver one of these days and say hello. So theyre not even recognizable by name, the companies? So you have no financial runway. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). I just finished up @Scott Trench book Set For Life. But thats awesome. And Erin Chase is an expert grocery shopper. Scott Trench: Well, thank you, Brandon. So was that your first property then, the duplex in Denver? At the time that were recording this, Im finding it very difficult to find properties. He's the VP of Operations at BiggerPockets and loving life. 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 youre kind enough to send it to me. Kin Shriner is an actor from the United States. I dont remember. Hes this young guy thats doing all these crazy things. So youre in your mid-twenties, right? Mad Fientist: Cool! Rising interest rates are likely to impact cap rates on properties, which will compress values and limit exit and/or refinance options. If I ever make it out to Scotland, Ill have to come and check it out. Your email address will not be published. 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. Mad Fientist: Nice! So, I think thats where our friendship kind of kicked off, a pretty similar mindset on life and finance and real estate in general. But thats a huge improvement from paying hundreds or thousands of dollars in rent per month. Now to strategize on which to sell and when to acquire my forever home. Thats true for the average and the median American, but not popular to point out. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. Scott is married to his beautiful unidentified wife. The couple posts a lot of their pictures together on their social media account. Earning an $8000 raise after a year is great. And yeah, your last name is Trench, and you want how many trenchlings? And thats the best case scenario, is that you go through all of those rungs of the ladder in 20 years. Melissa joined CNBC in 2004 where she serves as a reporter and an anchor. However, like Scott said, it is absolutely critical to keep positive cash-flows (rents must cover mortgage payments + HOA + property tax, with backup plans, like moving in to the property yourself), weve seen people end up having to sell in down market when losing the job or can no longer subsidize the negative cash flow, therefore cannot reap the long term appreciation or refinance to lower rate, etc.. Invest in real estate and never run out of money! http://traffic.libsyn.com/madfientist/scott-trench-interview.mp3, My Interview on the BiggerPockets Money Show, House Hacking 101: How to Hack Your Housing and Get Paid to Live for Free, Leave a review for the Financial Independence Podcast on iTunes, The three stages of wealth creation on the path to financial freedom, Why it doesnt make sense to worry about investing right away, How to create a financial runway and use it to your advantage, Why you should try to find a scalable career, How to turn your biggest expense into an income-producing asset, The one question to ask before buying your first house hack, The multiple benefits of adding side hustles along your journey. A lot of their net worth as he describes it in the United.! Need way more the more your average monthly spending increases 800 per month all crazy... Website receives compensation for being here properties, which will be affected by interest. 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