All Forum Posts by: Scott Trench

@Mark S. 

I think that $20,000 in passive income over 20 years is a phenomenal goal.  Most people never get there, even though I think it is extremely doable.  

 BUT, I think that you are thinking about the path to getting there in the wrong way.  You are ignoring the power of compound interest.  In your post you state that you would like to generate an incremental $1,000 per month every year over the next 20 years.  In my opinion, this is a herculean feat.  Assuming that you average a very solid 10% return, you'd have to invest $120,000 in the first year to get $1,000 per month.

Let's look at it this way instead.  If you manage to invest $40,000 in Real Estate in the first year and achieve a 10% return on that $40,000, you've now got $4,000 or $333.33 per month.  That's not even close to the $1,000 per month that you stated in the original post, but continuing along this path will get you to your goal of $20,000 per month in 20 years, here's how:

After year 1 you have invested $40,000.  The 10% return on that $40,000 nets you $4,000 in cash, or $333 per month, which you reinvest.

Next year, you add another $40,000 to your investment for a total net worth to start the year of $84,000.  This $84,000 returns $8,400, or $700 per month.  You again reinvest.

This process, repeated over 20 years, will get you to just over $240,000 per year in passive cashflow, your stated goal, but doesn't require you to achieve the near impossible feat of generating $1,000 per month in your first year.  If you are a superstar on that kind of level, you should aim for $20,000 per month in just 11-12 years!  

Hope this helps - please do not be discouraged by the gargantuan struggle of attempting to generate that kind of cashflow in just one year!

You had me at "We will be serving drinks" @Joshua Dorkin @Brandon Turner 

Stephen,

True credit repair is done only one way - consistently paying off debts over a long time period.  While you might get a small bump by employing some of the techniques above, I think that changing your mindset to a long term approach to wealth creation and strong credit is a great way to build your score.

I formerly had a poor credit score, and one of my friends told me that credit score can be thought of sort of like your reputation.  I was angry with him at the time, but thinking this way really helped me prioritize building my score - banks and other lenders like to lend to someone with a great reputation or score, just like I might be more willing to lend my car to a friend who has never been in an accident or pulled over.  While you can get around this, having a great financial reputation or credit score just makes life easier and creates more opportunity.

So to answer your question, I think that no, you might not need a credit repair company.  It might be best to just understand what circumstances led to your current situation, and create a plan to prevent them from recurring in the future.  With a fundamentally sound and strategic plan, you might find that you can achieve a surprising improvement in your score in just a year or two.

-Scott

Hi Jeff,

I think that in answer to your question, it's all about math and growth for me.  If we accept that as human beings, we never want our personal influence and power to diminish, then we will never want to stop growing.  Investing in riskless treasury securities is a stoppage in personal growth.  That's an unacceptable position to voluntarily place ones self in, in my opinion.

On the math side of things, we can expect the stock market to appreciate at a rate of around 6.5% per year in aggregate over the long haul.  If you can claim 2-3 % per year in dividends from your investment, over the long term you are likely to have the same or greater spending power that you get from riskless treasury securities.  In this case, a very basic change of mindset that is willing to accept some short term loss results in exponentially greater wealth over the long term.

I guess it all comes down to a very basic question - why settle for less?

-Scott

Nelson,

Welcome to BiggerPockets, we're excited to have you on board - looking forward to seeing you rock the wholesaling game!  You mentioned that you are new to wholesaling, so you might want to check out The Definitive Guide to Real Estate Wholesaling.  That, and don't be afraid to ask any questions, no matter how small, in the forums! 

Don't hesitate to reach out to us if you have any questions or concerns about the site!

Thanks,

Scott

Thanks Powell!

Welcome Powell!  Great to have you on board, and its great to know that we have such awesome Podcast fans.  Best of luck in your wholesaling career!  I hope that our site helps you develop into a great business, and please don't hesitate to reach out with any questions or concerns.

One quick question if you have a second - why do you think it took 90+ Podcasts before you decided to sign up for the free membership? We want to help as many people as possible learn about REI, and part of that process is helping them network as soon as possible.

Best,

Scott

Rose,

It's great to have you on board and I look forward to seeing you around the site! Learning is the best way to get started in REI. To help you learn more about wholesaling, you should check out The Definitive Guide to Real Estate Wholesaling.  

Best of luck on your Real Estate journey, and don't hesitate to reach out to the BiggerPockets team if you have any questions!

-Scott

@Robert Cuscaden it's great to have you back.  Always nice to see the long-term impact of the site!  Since you are in Denver and have been around, I'd like to invite you to the BiggerPockets 10 year anniversary party this Wednesday!

If you want to come, just post your intention to come here:

http://www.biggerpockets.com/forums/25/topics/1525...

Hope to see you there, and once again, welcome back!

Welcome @Nigel Swadel !  It's awesome to see BiggerPockets growing all over the world.  I hope that we help you as you grow as a Real Estate Investor.  Feel free to reach out to me or anyone else on the BiggerPockets staff if you need anything or have any questions/concerns!

Scott