The Importance of Understanding Your State's Laws

If you don't have a human sign when you still have one, it's the laws of a state that you are married. That's your prenup. If they'd had a longer marriage, then there would be even more complicating factors in there,. And payments, alimony, that would be paid usually from the higher income earner to the lower income earner during the courses of those marriage.

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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 strategythat allows him to earn truly “passive” income—syndication deals!

In This Episode We Cover

Why you NEED a prenuptial agreement to protect your financial future

One of the most “passive” ways to invest in real estate

Weathering economic downturns by diversifying your investment portfolio

How to do your homework when analyzing a syndication deal

Key financial tips to consider before you get married

And So Much More!

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