So thats what I did! He was born and raised in the United States by his parents. The College Investor does not offer investment advisor or brokerage services, nor does it recommend buying or selling particular stocks, securities, or other investments. And if people want to find you, wheres best to find you online, just go to Bigger Pockets? But two, youre decreasing the amount of money that you need to produce financial runway. Scotts wifes identity is unknown to the general public. I know a lot of people that would be happy with a raise of that level. But thats a huge improvement from paying hundreds or thousands of dollars in rent per month. So, you might need $25,000 in total cash, liquidity, to finance your $2000 a month lifestyle. And I encourage people to go out and think about adding side hustles one at a time as theyre going down this path. Click here to listen on iTunes. So, those are two approaches for investing. Together, they reside in Denver, Colorado. Probably worth a listen. Mad Fientist: Thats cool! At the time that were recording this, Im finding it very difficult to find properties. But then we go into house hacking. Scott Trench: And particularly in terms of appreciation and real estate and stock markets. Another approach that I also use is real estate investing. Scott Trench is the CEO and President of BiggerPockets. Scott Trench: Yes. We go into just incredible personal stories. This is a business that requires, literally, hundreds of hours of self-education from the investor prior to getting started. Scott Trench: So, after the other expenses that went into maintaining the property and fixing some things up myself, I was probably breaking even or maybe paying a little bit out of pocket to live on a monthly basis. I interviewed her and her husband in episode #14. Kin Shriner is an actor from the United States. In addition to his career, Scott is the author of Set for Life which was published in 2017. And yeah, back in my poker-watching days, I remember Annie Duke very well. 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. Who Gets Institutional Merit Grants At Private Colleges? Greg Palkot is known for his work on Shepard Smith Reporting, America's Newsr, Who is Kin Shriner? So it gets harder to save, and you need way more the more your average monthly spending increases. And I do she does a lot of private lending and other various kind of creative ways to invest and maybe get a diversified or different or higher returns than she can with just stocks. 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. Scott Trench: Well, I think we both share a lot of interest in personal finance. So yeah, the Bigger Pockets Money Podcast, how has it been going? And I wanted it as soon as possible. So, thats one plan. Scott Trenchis the epitome of the "grind until you shine" real estate investor. After high school, Scott enrolled at Vanderbilt University where he earned a Bachelor of Arts in Economics and History in 2013. I managed to lose money because I knew better than the market about this couple of Chinese stocks that had more cash than market cap and I dont know. I think that investors should avoid investments that are time bound. And Ill see you next time. For example, if I were single, I could rent out my spare bedroom in my house. 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. Its about a little over 10% of your savingsthat means you spend around $4000 a month. Scott Trench is a perpetual student of personal finance, real estate investing, sales, business, and personal management. He earns his wealth from his career, therefore, he has amassed a fortune over the years. And once I heard that, everything clicked for me, and I was like, This is it. His parents brought him up in the United States. Kin Shriner is best known for his role as Scott Baldwin on ABC's General Hospital and its spin-off, Port Charles. I put down $12,000. And their market cap is $50 million. 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. So the best place to find me is actually on Bigger Pockets. When I started on the road to financial dependence, thankfully, I was already in stage three. 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. So, if I kind of maintain my system of dollar cost averaging through real estate, I believe that Ill have a good result at the end. Scott Trench: Sure! Mad Fientist: Very cool. Scott Trench: Well, thank you for having me, Brandon. Have you bought any other property since then? 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. I think that, sadly, those at the highest risk are middle-class American homeowners. Its putting money in your pocket every month. real estate business from buying two houses per year to But that was not going to get me expediently towards my goal of a several hundred thousand to a million dollar net worth and several thousand dollars a month in passive cashflow. And I still have a little bit to go to completely pay it off. One, go find a new job. Mad Fientist: And I really think you make your own luck too to an extent as well. Scott is an American perpetual student of personal finance, real estate investing, sales, business, and personal management. Any investing information provided on this page is for educational purposes only. The next phase is getting that first $100,000. 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 . Well, my goal was financial freedom. Mad Fientist: Hey, I hope you enjoyed that interview with Scott. Scott Trench: Yeah. And yeah, hopefully, Ill speak to you soon. Theres a lot more factors. Alright, man, thanks a lot. This is a conventional mortgage brokernot a friend, not a family member. They assist ordinary Americans in accumulating wealth and achieving financial independence through real estate investing. I love helping spread the message of financial independence to as many places as I can. And thats kind of where we start getting into part two there which is $25,000 to $100,000. Mad Fientist: Yeah, absolutely. If so I was hoping to get some advice on a few questions I have in regards to it: - When he talks about real assets what all applies in this model? $305 at Sezane. Mad Fientist: Yeah, yeah. And I think for that median income earner starting with zero, its with that savings position. I was listening to your podcast (which well obviously talk about here soon as well). He has some family things that are going on. That's $1 MILLION. These offers do not represent all deposit accounts available. 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. 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. 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. Id recommend people start from the source. He was episode #23. Great episode Brandon and Scott!. So hes stepped aside. 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. And theyve got a hundred million dollars in cash and no debts. 'A lot of people are angry at me today but I haven't yet heard anyone disagree,' he told his 867,000 followers. I was able to reduce my monthly payments. 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 your boss was on the show, Josh Durkin. 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. 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. Congratulations to you! They help ordinary Americans build wealth and achieve financial freedom through real estate investing. 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. This is what I want to do with money. The identity of Scotts wife is not known to the public. 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. You can click on the 'unsubscribe' link in the email at anytime. Scott Trench: So, I got interested in real estate as a byproduct of being interested in financial independence in the first place. And shes a poker player. There needs to be more FI conversation for those with children. 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. Scott Trench: Well, thank you, Brandon. So you have no financial runway. 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