I definitely still have some work to do to get to there. He was born and raised in the United States by his parents. Building wealth is always possible, even while working full-time, earning a median income, and making up for a negative net worth. He serves as a real estate investor, an executive at a large online corporation, salesman, real estate broker, and author. Now to strategize on which to sell and when to acquire my forever home. I was like, Oh, Im a smarter guy than the market. This company in China is a Chinese fruit juice company. Invest in real estate and never run out of money! So I was still drinking way too much better and trying to have too much fun when you published that. But if your house hacking correctly, you have three options. Its a powerful way to build wealth over the long term and accessible to most Americans earning a median or higher income. This is what I want to do with money. 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. Im not sure how long youve known Mindy Jensen, but I think ever since she got introduced to you, shes been like, Brandon, you have to get him on the show. BiggerPockets is a complete resource for anyone looking to succeed in the world of real estate investing. And I have a couple of other expenses there as well. And thats why I really like how you laid out the book, is because its like, Okay, you may not have that much money to invest and you may feel like its a long way out. You made the right choice. Early life and C. Amanda Moye Brown: Do you want to know about Wes Browns Wife? Thats another good thing. 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. So, I think theres a couple schools of thought. Yeah, Ill put a link to the first episode in the show notes. 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 . Scott Trench: Well, thank you for having me, Brandon. His net worth is estimated to be $1.5 million. Hes this young guy thats doing all these crazy things. So youre in your mid-twenties, right? Scott Trench's net worth is estimated to be $1.5 million. 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. It has really motivated my fiance and I to take the next steps towards financial freedom. So hes stepped aside. Turning Your Largest Expense Into An Income Producing Asset, The Financial Impact Of Housing Decisions, An Introduction To Investing For Early Financial Freedom, Habits And Their Impact On Financial Freedom. 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. Mad Fientist: Very cool! So, I always end all my interviews with one piece of advice youd give to somebody whos starting on the path of FI. 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. I wasnt really interested in that line of work. Alright, man, thanks a lot. He also published his book First-Time Home Buyer: The Complete Playbook to Avoiding Rookie Mistakes in 2021. I am a massive fan of multiple streams of income, so have been pursuing side hustles for a while now. And so, I put down 5% with an FHA loan. Trench is the author of the 2017 book Set for Life. Scott Trench: Yeah. I invest in index funds. 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. Scott is of white ethnicity and has American citizenship. And I knew that my salary at financial analyst 2 would be about $56,000 to $58,000 (again depending on performance). 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. He's the VP of Operations at BiggerPockets and loving life. In 2021, he also released his book First-Time Home Buyer: The Complete Playbook to Avoiding Rookie Mistakes. Scott Trench: Well, thank you, Brandon. 'A lot of people are angry at me today but I haven't yet heard anyone disagree,' he told his 867,000 followers. Scott Trench: Yeah, I think thats exactly right. 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. . Click Manage settings for more information and to manage your choices. Information about his parents and/or siblings is not available at the moment. These offers do not represent all deposit accounts available. Its like a 1% interest rate. And so, if you cant sell, then your only option as a homeowner or a house hacker that hasnt bought a property that would make sense as a rental is to continue living on the property and paying it. Mad Fientist: which is great. And I think for that median income earner starting with zero, its with that savings position. I really appreciate it. I was just curious if anyone has calculated there Real Net Worth as he describes it in the book. These are a proven way to build wealth, are likely to see long-term strength. I think that investors should avoid investments that are time bound. 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. And thats kind of where we start getting into part two there which is $25,000 to $100,000. Scott Trench: Yeah, sure. So I started with basically zero$3000 in savings when I started my career. They have nothing to fall back on. Mad Fientist: Wow! Im very excited to be here. Mad Fientist: Yeah, exactly. And then, they both were co-hosts on my show with me on episode #38. Congratulations again on the promotion and the book. Just search my name in the search bar, Scott Trench. This has been a big party for many years. 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. Scott Trench: Get to a 50% savings rate. Thanks for the podcast! 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. You run out of money and you have to go and find similar paying work as your only option. Id recommend people start from the source. So, yeah, Bigger Pockets Money Podcast. The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. 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. Scotts wifes identity is unknown to the general public. So youre not going to be able to even last one month without your job if youre starting from scratch until eight months have passed and really six weeks timeframe by the end of the year. Georgeta Orlovschi: Know about Sebastian Stans Mother? We both have kind of a similar approach to money in general. What Are Qualified Expenses For A 529 Plan (And What Doesnt Count)? If you lose your job, youre screwed! And this is the real power of it in a non-financial sense. I know Ive had Chad Carson on the show, and weve talked about it in the 1500s. Mad Fientist: Nice! Im going to bet on that and go with that. And thats the correct decision to make in that game. Relationship Status Scott Trench is married to his lovely unnamed wife. 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). I published that episode way back in May of 2012. Joshua Dorkin, founder and CEO of BiggerPockets.com, joins me on the Financial Independence Podcast to talk real estate and entrepreneurship! Any investing information provided on this page is for educational purposes only. Mad Fientist: Yeah, absolutely. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); Chart Your Progress to Financial Independence! So yeah, the Bigger Pockets Money Podcast, how has it been going? 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. Probably worth a listen. But one of the things I loved most about it was how you broke it down to three phases. Well, the reason is because Chinese companies all the timeI dont know about this one in particularlie about their financials. You may not be able to change your lease, you may not be able to start biking to work tomorrow. He is the founder and CEO of BiggerPockets.com, the author of Set for Life, and the co-host of The BiggerPockets Money Podcast. Its not like I bought an [00:29:20]. And yeah, your last name is Trench, and you want how many trenchlings? And theyve got a hundred million dollars in cash and no debts. That's $1 MILLION. 2. Subscribe to our YouTube Channel and get one extra LIVE episode from us per week. Mad Fientist: Perfect! Scott Trench is the CEO and President of BiggerPockets. But two, youre decreasing the amount of money that you need to produce financial runway. Scott breaks down the journey to financial independence into three stages and explains what you need to focus on at each step (and why)! Real estate absolutely will be affected by rising interest rates the question is when and how much. And I encourage people to go out and think about adding side hustles one at a time as theyre going down this path. Read this book now. Trench has focused his career on. Who Gets Institutional Merit Grants At Private Colleges? Your email address will not be published. So one of the problems that a lot of people have I think when it comes to finance is theyre unable to take any risk whatsoever. Our opinions are our own. These offers do not represent all available deposit, investment, loan or credit products. On todays show, Im excited to introduce Scott Trench from BiggerPockets.com. I would have been FI in my 30s. Thats great. And what caused her to come to me and say, Hey, you needed to talk to this guy? What do most people not know about real estate investing that you wish they knew? I just found your podcast and Im really enjoying it. Scott Trenchreal estate investor, co-host of the BiggerPockets Money Podcast, and CEO of BiggerPocketsdemonstrates how to accumulate a lifetime of wealth over a short period of time. 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! 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. Scott Trench: Yeah, sure. What did Mindy see in you do you think? So it gets harder to save, and you need way more the more your average monthly spending increases. Scott Trench: Yeah, that was my first property. Scott Trench: And particularly in terms of appreciation and real estate and stock markets. Kin Shriner is an actor from the United States. And youre kind enough to send it to me. They both live in Denver, Colorado. And theyre just like, I dont know what Im going to do after I retire. The money is not the fear anymore. And I also have a quadplex now that I bought as a regular investment property. So the only criteria that I have that I think that you should really kind of strictly enforce is: Will this property make sense right now?, the day you buy it as an investment property if you dont live there. I was interested in that line of work, but I didnt want to be tied to it for 40 years.