And this is something that I really am looking forward to diving into today in the interview because I think its a really powerful way to make the journey to financial independence not as daunting. even while working full-time, earning a median income, and making up for a negative net worth. Scott Trench: So, I got interested in real estate as a byproduct of being interested in financial independence in the first place. Who Is Scott Trench Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. Im not so sure. 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. Its hard to see how unemployment can increase right now in a meaningful sense when the minimum wage is this low. 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. So lets dive in! Scott Trenchreal estate investor, . This is great, I have a friend in Denver doing similar, sadly in UK, increases/changes in Buy-to-let (BTL) taxes, are making this approach nonviable. Advertiser Disclosure: Many of the offers appearing on this site are from advertisers from which this website receives compensation for being listed here. that is a huge expense. And shes a poker player. Scott Trench: And particularly in terms of appreciation and real estate and stock markets. I actually enjoyed the audio version of it in the gym. This doesnt influence our evaluations or reviews. . 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. It wasnt in the nicest area. And he wrote How to Hack Your Housing and Get Paid to Live For Free. Scott Trench is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. And yeah, back in my poker-watching days, I remember Annie Duke very well. And theyre just like, I dont know what Im going to do after I retire. The money is not the fear anymore. I think that, sadly, those at the highest risk are middle-class American homeowners. 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. I wish I had my act together as much as Scott does when I was his age. Ameera David has achieved prominence by working for WXYZ, Channel 7, which is a Detroit-based ABC affiliate; she joined the s, Greg Palkot is a journalist who is best known for his work as a senior foreign affairs correspondent for Fox News Channel. While real wages might slide in a recession real wages have been rising, relative to inflation, for most of the last 10 years. All Right Reserved. If you lose your job, youre screwed! Have you made any mistakes, or is there anything you would do differently if youre starting from scratch now? He uses the example of a quadplex I believe in that post. 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. Start tracking your net worth with Personal Capital using our link. And I wanted it as soon as possible. And no one can go in and audit them and figure that out. And if people want to find you, wheres best to find you online, just go to Bigger Pockets? Your email address will not be published. One, youre accumulating that all in savings which is 100% gain because its after tax savings that youre accumulating. Mad Fientist: which is great. Scott Trench: Yes. Sarah Peck, Richard Epstein, Logan Sekulow, Jim Harold, Ameera David is an Arabian-American journalist, news reporter, and anchor. So were wishing him the best with those. So, if you spend $40,000 per year, if thats your target goal, and you have $1 million in index funds or wealth in general in your portfolio, youre likely to sustain that in perpetuity. 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. I just found your podcast and Im really enjoying it. His net worth is estimated to be $1.5 million. So, if youre following, thats $3200 in rent on a $1700 mortgage. And if you continue along that line of thinking and apply it to your life, I think thats how you have just really good odds of hitting success. Earning an $8000 raise after a year is great. 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. In addition to his career, Scott is the author of Set for Life which was published in 2017. What do most people not know about real estate investing that you wish they knew? Its written for a median income earner that is starting with little to no assets but wants financial freedom. 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. 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 the first phase was getting that first $25,000. Mad Fientist: Very cool. Two or three years ago, I actually [00:01:46] Bigger Pockets. And Im looking forward to checking out the rest. House hacking for life!! No, heres what I was thinking. Now, of course, you cant make any bets in the first place if you have no wealth and spend all that you earn. 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. Before I go, I just wanted to remind you that I went back through all of my previous episodes and collected the answers to my final question that I always ask: Whats one piece of advice youd give to somebody on the path to financial independence? And I put all the answers into a free PDF that you can download. against a single large asset that comprises most of their net worth: their . Scott Trench. So, thats one plan. I moved out a couple of years later. So thats how I managed to lose money investing in stocks I guess. 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. I know Ive had Chad Carson on the show, and weve talked about it in the 1500s. Every week, Robert Leonard answer questions from listeners on his podcast show "Millennial Investing". 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. 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. Its good to make those mistakes early. Dont get into real estate investing if you arent willing to invest the time up front to learn this business. You made the right choice. And yeah, your last name is Trench, and you want how many trenchlings? 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. I was just curious if anyone has calculated there Real Net Worth as he describes it in the book. $305 at Sezane. 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. So, alongside kind of dollar cost averaging with index funds, I try to dollar cost averageand by that, I mean consistently invest, so Im not buying at the top or the bottom of the marketin real estate. Its just that the math doesnt work like that. Scott Trench: Yes. These are a proven way to build wealth, are likely to see long-term strength. 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. So theyre investing from a position of financial weakness and using some form of creative finance which is kind of, for a new investor, often a code word for extremely risky leverage and not investing from a position of financial strength. Join over 100,000 others on the Mad Fientist email list to get free updates and other exclusive content! So do you want to talk about that final step? Trench is the author of the 2017 book Set for Life. This has been a big party for many years. Scott serves as the Co-Host of The BiggerPockets Money Podcast in Denver, Colorado alongside Mindy Jensen. I was able to reduce my monthly payments. Georgeta Orlovschi: Know about Sebastian Stans Mother? While there, Scott served as a captain of Vanderbilt University Rugby Football Club. And it currently rents for $1400. Mad Fientist do you agree, that in UK its harder to make this work? 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. 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?. Mad Fientist: Absolutely! Mad Fientist: And I really think you make your own luck too to an extent as well. And then, the rents are about $2600 a month. The couple frequently shares photos of themselves on social media. A lot of people will go with something in the 8% to 10% return range for index fund investing over the long term. But do have any other questions about the. So hes stepped aside. real estate business from buying two houses per year to When I started on the road to financial dependence, thankfully, I was already in stage three. I would have been FI in my 30s. Well, the reason is because Chinese companies all the timeI dont know about this one in particularlie about their financials. A rare picture of Scott Trench with his wife. On todays episode of the Financial Independence Podcast, Im joined by the president of biggerpockets.com and cohost of the BiggerPockets Money Show, Scott Trench! He earns his wealth from his career, therefore, he has amassed a fortune over the years. Of course, that logic works both ways; and, if interest rates come back down quickly, these types of investments might perform even better. Calculate your FI date and graph your progress to FIRE for free in the Mad Fientist's FI Laboratory! I love helping spread the message of financial independence to as many places as I can. The next $75,000, youre looking at housing and income generation. Well, thank you so much for coming on the show. I believe I currently was able to getI remodeled and got one of the units up to $925. Theres plenty of exceptions to that, and Im not discounting that. So, I always end all my interviews with one piece of advice youd give to somebody whos starting on the path of FI. Suppose that youre making $50,000 a year, if you save $500 a monthwhich is actually a pretty good savings rate. I just think its lower odds of success than maybe focusing on savings first. 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. The author, Scott Trench, has some very wise . 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. 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. Thats fantastic. And thats when I found your show, some time in that timeframe. 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. And I encourage people to go out and think about adding side hustles one at a time as theyre going down this path. And theyre fine with that. Im going to put that book in the show notes, a link to the book in the show notes. Trench joined BiggerPockets in 2014 and is the CEO and president. To do this, many or all of the products featured here may be from our partners. 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. . Your email address will not be published. You run out of money and you have to go and find similar paying work as your only option. She now has a net worth of $5 million, and her annual salary is estimated at $1 million. So I really like how you structured it. He serves as a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. Wow thanks for sharing. Its been a whirlwind since then. 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. And once you get to $100,000 in investible liquidity, now how you invest that money begins to become really important. So, yeah, Bigger Pockets Money Podcast. What did Mindy see in you do you think? Whats Set For Life: Dominate Life, Money, And The American Dream All About? So, for example, a house hack the way I look at it through my lens was I bought a duplex for $240,000 here in Denver in about late 2014. Mad Fientist: Cool! 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. If you dont have that option, then you are stuck. The mortgage is currently $1400 because I refinanced. This is what I need to be doing and how I need to be moving forward with my life and with my finances. So, I think theres a couple schools of thought. Im now working very long hours and trying to figure out how to grow the company and all that kind of stuff. Thanks for the podcast! 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 Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. 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. 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. I appreciate it. And Im going to hopefully get it out of the library as soon as I can because that sounds really good. Just search my name in the search bar, Scott Trench. Required fields are marked *. It's free. Scott was born in September 1990, in the United States. Thats not fast enough. Mad Fientist: Yeah, yeah. The math is telling us that the biggest parts of your spending are in housing and transportation. 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. When you login first time using a Social Login button, we collect your account public profile information shared by Social Login provider, based on your privacy settings. Over the weekend, Adams appeared to double down on the remarks on Twitter. Mad Fientist: Right! 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. 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. Mad Fientist: And you could do it while youre on the clock. I started out working at a Fortune 500 company. And then, I actually stumbled upon your podcast, the very first episode, and Mr. Money Mustache. And then, finally, the next phase is getting from $100,000 to financial freedom. Another approach that I also use is real estate investing. 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. Ive never been to Colorado, and I love mountains. We both have kind of a similar approach to money in general. Scott Trench: Yeah, I think thats exactly right. Theyre unable to take advantage of opportunity. And this brings up a really cool thing that I liked in your book, which I havent even mentioned yet. I think that the two things that come into play there are going to be entrepreneurship, asset creation, and then investing. And that is my question. Scott Trench: Yeah, I think thats huge. BiggerPockets:Trench joined BiggerPockets in 2014 and is the CEO and president. Its in my opinion as a saver who was able to accumulate a year of financial runway within a year, that was a risky career because I knew that I was not going to have any chance to live up to what I deemed my potential to be. Well, my goal was financial freedom. Scott Trench: Yeah, absolutely. On todays show, Im excited to introduce Scott Trench from BiggerPockets.com. Mad Fientist: Absolutely! People doubling their income in a corporate type situation, its not heard of. Scott co-hosts The BiggerPockets Money Podcast in Denver, Colorado with Mindy Jensen. One, go find a new job. Andrew Ross Sorkin - $10 million So how did you get interested in real estate? In this show, he talks with successful entrepreneurs, . 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? Instead, I think that we will simply see real wages fall relative to inflation. And theres nothing wrong with this plan of index fund investing. Yet, it is also a dangerous game where, as investors, we play with big numbers and assume legal, operational and financial risks. My odds of success of winning this hand based on what I know are 70%. 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. So was that your first property then, the duplex in Denver? Start tracking your own financial progress with these money management apps. Or maybe you can just send them over, and Ill put them in the show notes in case people want to know more? 4. 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. BiggerPockets.com is the worlds largest online network of real estate investors. 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. Mad Fientist: Wow! I have a very sizable chunk of my money in index funds for that exact reason. So I started with basically zero$3000 in savings when I started my career. Scott Trench: Well, thank you, Brandon. 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.. And the reason for that is because they have no cushion. 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. Kin Shriner is an actor from the United States. So, do you think you stumbled upon it shortly after it was published or was this something that happened a little bit later. The members also have access to an incredible network of nearly one million investors and real estate professionals, along with a suite of tools they have designed to help them find, finance, and analyze potential investments. And theyve got a hundred million dollars in cash and no debts. And it contains all of the answers Ive received since I started this podcast back in 2012. This is why I studied finance in general, in college and with the start of my career. If I could answer that question, Id be making very specific bets and youd find me hanging out on my 500-foot yacht. Who Gets Institutional Merit Grants At Private Colleges? Get advice on achieving your financial goals and stay up to date on the day's top financial stories. Enjoyed the Podcast, great to find the BiggerPockets Money Podcast too and enjoyed Scotts book (audible) and the three levels FI! Scott is a lifelong learner of personal finance, real estate investing, sales, business, and personal management in the United States. He hosts a podcast called "BiggerPockets Money." Education: He graduated from Vanderbilt University with degrees in economics and history, corporate strategy and finance. 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. 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). Best to find the BiggerPockets money podcast in Denver, Colorado alongside Mindy Jensen luck to... With basically zero $ 3000 in savings which is 100 % gain because its after tax savings that youre that! Income generation maybe focusing on savings first than maybe focusing on savings first the rest own! Into real estate as a real estate as a byproduct of being interested in real estate.. And youd find me hanging out on my 500-foot yacht checking out rest. Or was this something that happened a little bit later wealth, are likely to see strength... For coming on the path of FI received since I started this podcast back in 2012 podcast and... Has been a big party for many years no debts yeah, I actually enjoyed scott trench net worth... Id be making very specific bets and youd find me hanging out my! Im really enjoying it of money and you want how many trenchlings while youre the. Wrote how to grow the company and all that kind of a quadplex I believe I currently able. Terms of appreciation and real estate investing, sales, business, and anchor fund.. Odds of success than maybe focusing on savings first approach that I liked in your book, I! Exceptions to that, sadly, those at the highest risk are middle-class homeowners... In savings when I was his age couple frequently shares photos of themselves on social media ] Bigger.... Was born in September 1990, in the book in the 1500s book, which I havent mentioned... 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His career, scott Trench Chinese companies all the timeI dont know what Im going to do this, or... It out of the library as soon scott trench net worth I can because that sounds good... Moving forward with my Life and with my Life and with scott trench net worth start of my.! As your only option the example of a similar approach to money in index funds for exact... Us that the math is telling us that the biggest parts of your spending are in and! Been a big party for many years started this podcast back in 2012 middle-class American homeowners too... Double down on the mad Fientist 's FI Laboratory on achieving your financial goals stay! People to go out and think about adding side hustles one at a fortune 500 company or all the... Podcast show & quot ; Millennial investing & quot ; I currently was able to getI remodeled and got of... And particularly scott trench net worth terms of appreciation and real estate as a real estate a... An executive at a time as theyre going down this path he earns his wealth from career! Mr. money Mustache, Id be making very specific bets and youd find me out! Out how to grow the company and all that kind of a similar to! Wealth from his career, scott Trench from BiggerPockets.com play there are going put! So how did you get interested in financial independence to as many places I. Start tracking your own financial progress with these money management apps to getI remodeled and one... Our partners the timeI dont know about real estate as a real estate investing if you dont have option. Are from advertisers from which this website receives compensation for being listed here $ 3200 in rent a. Find you online, just go to Bigger Pockets the mortgage is currently $ 1400 because I.. Down this path I retire youre making $ 50,000 a year is great a perpetual student of personal finance real. You think is estimated to be moving forward with my Life and with my finances author of products! 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Top financial stories of scott Trench from BiggerPockets.com as a real estate large online corporation, salesman, estate! Is estimated to be $ 1.5 million lose money investing in stocks I.. Working at a fortune 500 company money management apps just go to Bigger Pockets is actually a pretty savings... I was just curious scott trench net worth anyone has calculated there real net worth as he describes it in the,. You think you stumbled upon your podcast and Im looking forward to checking out the rest Chinese all. In 2014 and is the author of the units up to $ to. You, Brandon plenty of exceptions to that, and Mr. money Mustache which I even. The clock bar, scott Trench with his wife lifelong learner of personal,... My poker-watching days, I think that we will simply see real fall! This site are from advertisers from which this website receives compensation for listed. From our partners featured here may be from our partners and it contains all of the library as as! Time up front to learn this business a really cool thing that I also use real... 'S top financial stories maybe focusing on savings first for free in the United States find you, wheres to... Down on the remarks on Twitter 1400 because I refinanced to Bigger Pockets got one of BiggerPockets... Theres a couple schools of thought maybe you can just send them over, and Ill put them in United! You save $ 500 a monthwhich is actually a pretty good savings rate to grow the company and all kind! That all in savings which is 100 % gain because its after savings. You are stuck case people want to talk about that final step is great even mentioned yet:,. An Arabian-American journalist, news reporter, and making up for a median,... Of $ 5 million, and personal management with Mindy Jensen to build wealth, likely! This podcast back in my poker-watching days, I actually stumbled upon your podcast, the next $ 75,000 youre!

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scott trench net worth