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BiggerPockets Money Podcast

336: Finance Friday: Six-Figure Passive Income in Just 4 Years!

BiggerPockets Money Podcast

BiggerPockets

Investing, Education, Business

4.62.9K Ratings

🗓️ 16 September 2022

⏱️ 56 minutes

🧾️ Download transcript

Summary

Becoming a millionaire by 30 is almost every 20-or-something-year-old’s dream. But what if you want to go even further? Instead of seven-figure net worth, what about an eight-figure net worth? Would this be enough to make your wildest dreams come true, or is planning for ultra-wealthy status a wasted pursuit, as most people could easily retire earlywith just a few million? The question we’re trying to ask is, how much is enough?

It’s not Scott and Mindy asking this question, it’s today’s guest, Travis. You could call Travis an overachiever, although he doesn’t have the ego to fit that title. Travis has built close to a million dollars in net worth, with $10,000 of monthly passive income in just four years. He’s done this while working a full-time job and spending just $2,000 a month. If we could give a “You Did It, You Won the Money Show!” award, Travis would be first in line.

But Travis is struggling to get his goals aligned with his portfolio. He set a lofty eight-figure goal for retirement, but with his rock-bottom spending rate, is this dollar figure even worth the work? Travis also wants to pose the stocks vs. real estate question, as he’s almost entirely invested in rental properties with very little left in retirement accounts or any stock accounts in general. So what is Travis’ next move? Quit the job, load up on stocks, or keep doing what he’s been doing?


In This Episode We Cover

Using the BRRRR strategy to grow a large rental portfolio in very little time 

Hitting millionaire status by your thirties through smart spending and consistent investing

When to quit your W2 and pursue entrepreneurial pursuits full-time

Stocks vs. real estate and loading up your Roth, 401K, and other retirement accounts

Goal setting and when to take a step back from building wealth 

CapEx calculations, cash reserves, and prepaying your mortgage 

And So Much More!


Links from the Show

BiggerPockets Money Facebook Group

BiggerPockets Forums

Finance Review Guest Onboarding

Mindy's Twitter

Scott's Instagram

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Apply to Be a Guest on The Money Show

Podcast Talent Search!

Subscribe to The “On The Market” YouTube Channel

Listen to The “On The Market” Podcast: SpotifyApple PodcastsBiggerPockets

Check Out Mindy’s 2022 Live Spending Tracker and Budget

BiggerPockets FIRE Planning Worksheet

Ready to Retire: The Ultimate Pre-Retirement Checklist

Coast FI: The Calculated Way to Retire Early WITHOUT Giving Up What You Love w/Jessica from The Fioneers

Episode 200 Special: A Personal Finance Masterclass with Kyle Mast


Click here to check the full show notes: https://www.biggerpockets.com/blog/money-336


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Transcript

Click on a timestamp to play from that location

0:00.0

Welcome to the Bigger Pockets Money Pied Cash Show, number 336, Finance Friday edition,

0:05.6

where we interview Travis and talk about conservatively investing in cash flowing real estate.

0:11.2

There's nothing wrong with the $10 million network, but those numbers do seem like you just grab them out of thin air.

0:18.6

So I would encourage you to look into the reasoning behind those numbers or create some reasoning behind the numbers

0:25.8

and maybe those numbers would change because if you wait 10 years to get your $10 million portfolio

0:33.3

and then you're like, oh, I could have retired five years ago with a $5 million portfolio or a $2 million portfolio

0:38.3

and I would have been just as happy, then you've spent a lot of extra time working with me too.

0:44.2

Hello, hello, hello, my name is Mindy Jensen and with me as always is my money savvy co-host, Scott Trent.

0:49.6

And with me as always is my minty as in minting new introductions about money. Scott and I are here to make financial independence less scary, less just for somebody else

1:05.8

to introduce you to every money story because we truly believe the financial freedom is attainable for everyone, no matter when or where you're starting.

1:14.4

That's right. Whether you want to retire early and travel the world, go on to make big time investments and assets like real estate,

1:19.2

start your own business or figure out what to do once you've won with money. We'll help you reach your financial goals and get money out of the way

1:25.6

so you can watch yourself towards those dreams. Scott, I think that this is my favorite episode that we have ever done that didn't feature Kyle

1:34.0

Mask as a host or as a guest. He is so good. Travis has a fabulous portfolio. He's a little light on his Roth IRA contributions. I will say that, but he is in such a fabulous

1:49.1

financial position. I love him so much. This was a fantastic episode. And I think anybody listening, anybody who is interested in investing in real estate, the right way needs to listen to this episode.

2:01.5

Yeah, I think that this guy is just fantastic. He 30 years old. He's done. He's financially independent way overshot financial independence at this point in time.

2:11.7

He's so humble and so kind of hardworking and down to earth about his position. He didn't even realize it. Really until we talked about it today.

2:21.7

I guess I am financially dependent by a lot. That was the revelation that's still happening.

2:29.7

Three times over.

2:31.7

It's just fun because he's got all the fundamentals so perfectly dialed in with such low expenses, such low cost living, such high work ethic. That after this kind of five year grind that he's executed, he can look up now and be like, whoa, I have incredible options here.

2:47.7

One of the biggest callouts I'll have from this episode is the job is irrelevant. This is going to be a rare outcome. Not many people are going to experience this.

2:55.7

But it's just interesting in his position. His real estate portfolio generates so much more income than his job does today that it makes his job very low relevancy to his position.

...

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