Real Estate Side Hustle with Bigger Pockets CEO Scott Trench
Welcome to another exciting episode of Dave Debeau's show with Bigger Pockets CEO Scott Trench. Today, we're delving into real estate side hustles - an attractive venture many of you might be considering. From the background of this savvy real estate expert to some insightful tips on getting started, this episode has it all covered. So, let's jump right in.
Scott Trench is undoubtedly a name to reckon with when discussing real estate investing and building wealth. His journey doesn't just inspire; it educates and equips us with practical knowledge. There's much we can learn from his experiences.
A real estate side hustle opens up opportunities for financial robustness. Scott reveals some incredible insights into how a real estate side hustle can be lucrative. Embark on a journey that might change your economic outlook and liberate your lifestyle.
Real estate is a valuable wealth-building avenue. Scott's journey offers invaluable insights into the process, and there's much to learn from his experience, persistence, and strategy. It's not about rapid collections of properties but about strategic choices and intelligent investments.
Like any other venture, real estate investing has its fair share of challenges. Find out how Scott navigated the mire and overcame these obstacles with tenacity and determination. It's all about perspective and resilience.
If you're new to real estate investing, Scott leaves us with valuable advice to set you on the right path. His insights give you a good foundation and prepare you for the adventure ahead. It's a rewarding journey if you're ready to embrace it.
The journey to success in real estate is a strategic, persistent and hard-earned affair. Based on Scott's insights, it's clear that success depends on consistent learning, strategic planning, and proactive execution. Now, it's time for you to take action.
But first, if you want financing for your next investment and want to know what type of collateral may be involved, click the link below for a free strategy call with our mortgage team at LendCity to discuss your specific situation.
Background of Bigger Pockets CEO Scott Trench
Scott Trench is not just the CEO of Bigger Pockets; he has an impressive journey in the real estate sector. After landing his first job, Trench made wise financial decisions to secure his future goals, including investing in real estate.
He didn't just wake up one day as the CEO of a successful real estate investing community. Starting as a financial analyst, Trench gradually built his expertise in the field. He has been a real estate broker, a personal finance author, and, ultimately, the CEO of Bigger Pockets. All these roles have shaped his understanding of real estate investing and wealth creation.
Trench decided to dip his toes into real estate after realizing its tremendous potential for building wealth. He bought his first property very young and has never looked back since. His experience from this investment motivated him to learn more about the sector. He started educating himself, reading books, attending seminars, and networking with real estate professionals.
His dedication and continuous efforts landed him a job at Bigger Pockets, starting as a financial analyst. This allowed Trench to blend his financial expertise and passion for real estate. Eventually, his hard work and determination paved the way for him to become the company's CEO. Today, Trench manages operations at Bigger Pockets and continues his daily real estate investments, learning and growing.
The Real Estate Side Hustle: A Lucrative Opportunity
In his discussion with Dave Debeau, Scott Trench allowed us a glimpse into how he viewed real estate as an attractive side hustle. According to Trench, real estate investing is a foolproof opportunity you can embrace regardless of employment status. Whether you're self-employed, working part-time, or working full-time, this opportunity can provide you an avenue for creating an additional income stream.
As Trench explained, the real estate market scene has abundant opportunities. It is essential to realize that every piece of real estate - whether residential, commercial or even a piece of land - carries potential on its own. The secret shines in discovering and leveraging that potential to generate profits. One might venture into real estate through rental properties, house flipping, or through real estate investment trusts (REITs). The choice depends on your individual financial capacity, time, and expertise.
"The real essence of investing in real estate lies in the potential for consistent and significant returns," said Scott Trench. This can be through diverse outcomes like capital appreciation, where a property's value increases over time, or rental income if you lease your property to tenants. Besides, there's the advantage of leverage, where you can increase your property's buying power.
Furthermore, real estate investing is considered a hedge against inflation because property values and rental rates generally increase. Hence, while inflation erodes the value of paper money, real estate investors tend to maintain their purchasing power through the realized growth in their investments.
One key aspect that Trench emphasized is the independence and control that comes with real estate investing. Unlike other investment avenues, where fund managers often make decisions, you make your own decisions in real estate. You can choose the property to invest in, decide the price you will pay, and negotiate the terms. If done correctly, this control can increase productivity and higher returns, making real estate investing a valid side hustle.
Scott Trench sees the real estate as a field ripe with money-making opportunities for those willing to delve in and get their hands dirty. It offers a degree of control and consistent returns, making it a lucrative side hustle. Investing in real estate is a significant first step, but it's only the beginning. The subsequent steps involve learning, planning, and executing your investment strategies, which Trench and Dave Debeau delved into in the following sections.
Critical Insights on Building Wealth Through Real Estate
Building wealth in real estate is not a linear journey, and Scott Trench has some insightful tips to share from his experiences. The CEO of Bigger Pockets lays out some cornerstones to having a successful side hustle in this sector.
Firstly, Scott believes in harnessing the power of capitalism. He suggests building massive, long-term wealth rather than securing a steady income. He emphasizes the advantage of owning assets that appreciate over time. This, he claims, is where your wealth is built.
Understanding the market is another pivotal point Scott touches on. He urges potential investors to spend a reasonable amount of time comprehending the trends and fluctuations of the real estate market before plunging in. This includes learning about different neighbourhoods, knowing why property prices vary, and being in tune with socioeconomic developments – this background knowledge is invaluable to potential investors.
Lastly, consistency in investing is critical. Real estate is a long-term game, and it's only by consistently investing that you can bolster your wealth. Scott advises that patience and consistency are essential, and while there may be times when the market is not as favourable, staying rigid and not pulling out at the first sign of trouble can potentially lead to more significant gains in the future.
So, to build wealth with your real estate side hustle, according to Scott Trench, be strategic, be patient, and always keep learning and adjusting your strategy as necessary.
Finding the Right Property: Tips from Scott Trench
In this segment, Scott Trench, CEO of Bigger Pockets, brings knowledge on what makes a good real estate investment. With his years of experience, he shines a light on how you can identify the right property to diversify your income stream.
Key Points from Scott Trench
- Research: One of Scott's first pieces of advice to Dave was the importance of homework. Understand the local market where you wish to invest, do your due diligence on the property, and analyze if the numbers make financial sense.
- Location: The mantra of 'Location, Location, Location' is still relevant, according to Scott. The value of a property is often associated with its geographical location and the prospects of growth in the surrounding area. So, you must focus on identifying areas with potential.
- Value-Add: Scott spoke proficiently about the appeal of 'value-add' properties. These properties need a certain amount of work or renovation, which could significantly increase their value. This could help you accelerate your equity gain.
Scott also strongly emphasized to Dave and the listeners the need to understand the property you're planning to invest in. Whether it's about fixing a leaking roof or tenant laws, you need a decent grasp on these matters. Scott says, "If you don't understand it, don't invest in it."
Patience stood out as a recurring theme in Scott's advice. He mentioned how investors often feel compelled to jump on the first deal that comes their way. He cautioned against this, suggesting that taking a patient approach and not settling until you find the right property is often more valuable.
Overcoming Challenges in Real Estate Investing
In their chat on this episode, Dave Debeau and Scott Trench highlight that significant challenges in real estate investing are inevitable. However, overcoming them is more accessible with correct strategies and a growth mindset.
Scott points out that significant hurdles usually originate from one's mindset. Owning a property can be very challenging, requiring courage and determination. Viewing potential challenges as opportunities for gaining knowledge and enhancing decision-making capabilities is crucial.
Aside from mindset, Scott also addresses common financial roadblocks. He emphasizes the importance of investing in financial education to understand one's financial situation and setting aside a percentage of income for property investment.
According to Scott, understanding and navigating market trends and fluctuations is vital. He highlights that understanding real estate market dynamics is a potential game-changer in a volatile market environment.
Dealing with unforeseen risks, like unexpected property damage or vacancies, is another reality of real estate investing. Scott underlines the importance of maintaining a solid buffer or emergency fund to mitigate these situations.
Scott reminds aspiring investors that time is a significant factor in real estate investing. Property management can be time-consuming, alongside regular full-time jobs. Therefore, time management and efficiency become very crucial.
As they finish the discussion on overcoming challenges, Dave and Scott endorse embracing them as opportunities to advance in the real estate journey. They leave you with a parable: 'Amid every difficulty lies an opportunity.'
Advice for Beginners: Getting Started in Real Estate
Starting in real estate can seem intimidating, but with advice from Scott Trench, the task becomes more manageable—trench shares essential nuggets of knowledge that can guide beginners into real estate investment.
As Scott Trench explains, real estate isn't a quick and easy path to wealth. Instead, it requires diligence, patience, and a solid market understanding. The CEO strongly encourages beginners to take the time to educate themselves about the property market in their region. They should understand the dynamics of demand and supply, the value of properties, and growth potential.
Next, Trench emphasizes understanding the different financing options available. Real estate investment involves a considerable sum of money, and having explicit knowledge of the financing options helps beginners prepare a realistic plan. These could include bank loans, private lenders, or even crowdfunding.
Once you understand the market and financing options, Trench advises drafting a detailed, realistic plan. This entails identifying the type of properties you're interested in, the areas you are targeting, and the expected return on investment. This plan serves as a roadmap, guiding you through this exciting journey.
Finally, nothing beats experience. Trench suggests beginners consult with experienced investors, seek guidance, and learn from their mistakes. This not only shortens the learning curve but also helps avoid costly errors.
In closing, Scott Trench encourages beginners to start small. This could mean purchasing a single property, learning from it, and slowly scaling up as confidence and expertise grow. Scott says, "Don't be in a hurry to make millions overnight. Real estate is a long game; start small and grow steadily."
Conclusion: Taking Action and Achieving Success
After the insightful session between Dave Debeau and Scott Trench, it becomes evident that action and a strong success mindset are indispensable in real estate investment. Scott has shared experience-rich advice and industry tips that prospective real estate investors can use.
Key Takeaways from the Episode
- Education and Mindset: Grounding yourself in real estate knowledge is very important. Understand the market and the right investment tactics, and most importantly, believe in your ability to venture into and prosper in real estate.
- Start small and grow: You don't need massive financial backing. Scott believes in the power of creating small and gradually increasing your portfolio. This strategy helps mitigate potential risks.
- Don't fear the challenges: Real estate investment has its fair share of obstacles. Some properties might not bring the expected returns, while some markets might not be as promising as they seem. However, it's essential not to be discouraged but to see these challenges as learning opportunities.
As Dave wraps up the podcast episode, he thanks Scott Trench for the time and the immense wisdom he shared. "The journey to real estate investment is not always straightforward," Dave notes. "However, with the right mindset, education, and persistent effort, it's a journey worth taking."
No matter the stage in your real estate investment journey, the key lies in continually learning and taking actionable steps toward your goals.
If you are ready to start investing today and want more information about how your mortgage may be secured – or are looking to apply for a mortgage today – click the link below for a free strategy call with our mortgage team at LendCity today.