Episode #434

As an investor, it’s easy to become fixated on cash flow, much like today’s guest at the start of his real estate journey. After realizing he was “house poor” with a mortgage payment larger than he could afford, Eric Garber stumbled upon house hacking. He rented out his basement and used the extra money to pay off his house early. With proof of concept for his newfound house hacking strategy and income from a stable W2 job, everything was going great.

Then Eric’s world came crashing down when his marriage ended and his employer froze his pension plan. Without a prenuptial agreement, his financial fate was left to the state court system. Losing more than half of the assets he had worked tirelessly to grow, Eric found himself back at square one. This time, he was going to do things differently. Rather than pouring his time, energy, and money into paying off his real estate and living off the cash flow, Eric realized the opportunity that could be had by accessing his equity and putting it to work—a revelation that will allow him to retire early, despite the curveballs life has thrown his way.

If you think getting a prenup is “planning for divorce,” you’ll want to hear what Eric has to share in this episode of the “BiggerPockets Money” podcast. Beyond offering practical financial tips you can put into practice before getting married, he talks about the paradigm shift that allowed him to unlock wealth. He also discusses the investing strategy that allows him to earn truly “passive” income—syndication deals!

Show Notes at:
https://www.biggerpockets.com/blog/money-434?utm_source=youtube&utm_medium=description&utm_campaign=none
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Books Mentioned in This Episode:
The Hands-Off Investor: https://store.biggerpockets.com/products/the-hands-off-investor?utm_source=owned_media
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Why You’re (Probably) Wrong About Prenups:
https://www.biggerpockets.com/blog/money-301?utm_source=youtube&utm_medium=description&utm_campaign=none
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ROE over ROI and Why Your “Cash Flow” Number Is Deceiving: https://www.biggerpockets.com/blog/real-estate-662?utm_source=youtube&utm_medium=description&utm_campaign=none
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Syndications: Everything You Need to Know BEFORE You Invest: https://www.biggerpockets.com/blog/biggerpockets-money-podcast-219-j-scott?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Eric:
BiggerPockets: https://www.biggerpockets.com/users/ericjgarber?utm_source=youtube&utm_medium=description&utm_campaign=none
LinkedIn: https://www.linkedin.com/in/eric-garber
Email: eric@regencyinvestmentgroup.com
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Connect with Scott and Mindy on BiggerPockets:
Scott: https://www.biggerpockets.com/users/scotttrench?utm_source=youtube&utm_medium=description&utm_campaign=none
Mindy: https://www.biggerpockets.com/users/mindyjensen?utm_source=youtube&utm_medium=description&utm_campaign=none


00:00 Intro

01:32 Money Moment

02:05 The “Accidental” House Hack

09:48 HUGE Life Changes

12:32 The Financial Fallout of Divorce

20:46 Freezing the Pension Plan!?

28:17 ROE Over ROI

35:31 Eric’s Diversified Portfolio

39:01 Connect with Eric!

39:25 Get a Prenup!