🎙 Passive Cash Flow Podcast EP.183 | Beyond the Flip: The ‘Three Payday’ Creative Financing Model
Chris Prefontaine, Chairman and Founder of **Smart Real Estate Coach**® and a **4x best-selling author**, reveals his trademarked system for generating massive profit in real estate without bank loans or personal guarantees!
In this episode, Chris shares his strategies for thriving in any market, including:
🔑 **The Three Payday System:** How to structure deals that generate upfront cash, monthly cash flow, and a big back-end payday on every property exit.
🏡 **Acquire Property Creatively:** Learn to use strategies like **Subject To (Sub2)** and **owner financing** to buy properties without signing on a single new loan.
🤝 **Ethical Investing:** Implement his successful model for rent-to-own deals that set the buyer up for success.
Chris is an investor who is *in the business* doing exactly what he teaches—learn his secrets for closing deals no matter what the market is doing!
—
**RESOURCES & LINKS**
👉 **FREE Books from Chris Prefontaine:** Wickedsmartbooks.com/aaron
👉 **FREE Masterclass/Workshop:** Smartrealestatecoach.com/mastersclass
🧠 Topics Covered:
00:00 Intro & Market View
01:23 Real Estate is on Sale? 🤑
02:03 Chris’s Journey & 3 Paydays
04:10 The Rent-to-Own Model
05:06 Ethical vs. Unethical Rent-to-Own
06:28 Rent-to-Own vs. Traditional Sale
08:36 How to Get Payday One
11:11 **Creative Acquisitions** (Sub2)
14:45 Legal Strategy: Using a Trust
17:50 Market Analysis & Outlook
20:05 Buy More Real Estate! 📈
21:39 Any Asset Class Works
23:48 Coaching & Contact Info
📚 Enhance Your Investing Knowledge:
Learn more at https://www.peoplescapitalgroup.com/
🔗 Follow Us:
📘 Facebook: https://www.facebook.com/profile.php?id=100093318587146
📸 Instagram: https://www.instagram.com/real_estate_investments_nj/?hl=en
🐦 X: https://x.com/PCGrealestate
💼 LinkedIn: https://www.linkedin.com/company/peoples-capital-group
⚠️ Disclaimer:
This is not a solicitation for funds, tax advice, or legal advice. This is not intended to be, and must not be construed to be in any form or manner a solicitation of investment funds or a securities offering. Peoples Capital Group LLC is NOT a United States Securities Dealer or Broker nor U. S. Investment Adviser is a Consultant/service provider and makes no warranties or representations as to the listener or viewer. All due diligence is the responsibility of the investor.
Transcript:
00:00:28:23 – 00:00:42:21
Aaron Fragnito
All right, ladies and gentlemen, welcome back to the Passive Cash Flow podcast. I’m your host, Aaron Frank Nieto, and I have an exciting guest with us here today. We have Chris Prefontaine. How are we doing today, Chris?
00:00:42:24 – 00:00:46:12
Chris Prefontaine
I’m doing awesome, man. Thanks for having me back. Good to hang out again.
00:00:46:14 – 00:01:05:07
Aaron Fragnito
Absolutely. Now, Chris, I always like having you on the show here. I know we, did a podcast and a webinar together years ago. You know, your real estate coach, your real estate investor, you’re actually in the business doing what you preach as well. You have a large following, in the northeast here and really all around the country.
00:01:05:07 – 00:01:09:14
Aaron Fragnito
So, glad to connect with you again. How’s, business going on your end?
00:01:09:16 – 00:01:23:15
Chris Prefontaine
Business is good. Whenever there’s, as you know, we talk a little bit offline and whenever there’s uncertainty, whenever the media is screaming anything that’s not the norm, then it kind of drives the creative, niche for us. So it’s it’s been awesome. Awesome. Few years. Yeah.
00:01:23:15 – 00:01:38:24
Aaron Fragnito
Well, as Warren Buffett says, right. Or I maybe it’s Warren Buffett. I guess he kind of made it famous. The line, right, when others are fearful will be greedy and others are greedy, be fearful. And it does seem people are fearful right now. There’s a lot of money sitting on the sidelines, which makes no sense to me because real estate’s on sale.
00:01:38:24 – 00:01:55:21
Aaron Fragnito
Commercial real estate. At least we’re finding great deals. Yeah, properties. We used to be buying it four and a half caps or sell them for six caps now, and they’re the same property and rents still going up. So people still need a place to live. So, you know, I, I just think that it’s a great time to be buying, buying real estate.
00:01:55:21 – 00:02:03:19
Aaron Fragnito
But, before we get into all that, Chris, maybe just talk a little bit about yourself, your story here briefly, and then kind of what you focus on in the market.
00:02:03:21 – 00:02:21:04
Chris Prefontaine
Sure. I’ve been at this 34 years this fall. So I’ll give you a 10,000ft view as always. And you can pull me back to any piece. It’s. I’ve been at this since early 90s, participated in, building what we call spot building and single lots. All those years on terms, we would we would have the owners and the subcontractors wait for us to the end.
00:02:21:04 – 00:02:41:02
Chris Prefontaine
I was in my 20s, so we naively asked for that and got it in that market. We then opened up and successfully built and sold to Coal Banker, a, franchise. You know, conventional. I put my broker hat on. Never did that. And then running up to the crash, as you may recall, we had I had, 20 plus properties, all different stages of development.
00:02:41:04 – 00:03:01:20
Chris Prefontaine
Raise the roof projects, condominium, projects, conversion projects, and then commercial mixed use. And all of those went south. With the crash. So that was the impetus. And the reason I share that is that was the impetus to do what we do today. So since 2012 till now, so whatever that is, 13 or so years, we’ve been buying creatively.
00:03:01:22 – 00:03:24:18
Chris Prefontaine
We refuse. I rewrote kind of my own personal rules, but we refuse as now a community to, sign personally on any bank loans to use gobs of cash. And the other thing we put into play, and I don’t know if we talked about the last time, is there was a when I started making a list of things I wanted to do differently right after I get my head kicked in financially, mentally, I said, all right, I don’t want to be on the treadmill anymore.
00:03:24:18 – 00:03:40:12
Chris Prefontaine
Like I had been a broker. I’ve been a build. I’ve done all these things and I’m like, okay, those were good money, good experiences, but they were never anything that would pay me past that one deal. So I do a deal, get paid. Oh man, I got to go spin plates again, generate hits, and I’m going, I gotta do all this again this year to hit my goals.
00:03:40:14 – 00:03:55:14
Chris Prefontaine
So we trademarked the three day system, which is how we exit properties. But but the long and the short of it is, it’s upfront money. What you get when you do a deal normally in real estate, great. Then once you do that, you launch a cash flow stream every single property for 2 or 3 or 4 or 5, sometimes ten years.
00:03:55:14 – 00:04:10:13
Chris Prefontaine
And then of course you have the long term cash out, which is kind of the wealth building side. So those three paid is really a cool business model for you not to go do anything. I can open a restaurant. That’s cool. Cash flow. Right. So that’s kind of like the 10,000ft view. And go back to any piece of that if you want.
00:04:10:15 – 00:04:28:01
Aaron Fragnito
Yeah, absolutely. And I know you’ve taught probably thousands of people around the country your three payday system there, which is kind of like, a leaseback strategy, a bit of seller financing there. So why don’t you just dig into that for a second and give us the highlighted kind of what you preach that what you teach there?
00:04:28:06 – 00:04:47:20
Chris Prefontaine
Yeah. And I always got to give it a closure with this because we exit mostly for the sake of this show not getting too advanced. We do exit mostly, primarily, at least a first look at a rent zone and I can tell you guys, the listeners, that, even more so than over a decade ago when I started doing it aggressively and laser focus, that there are a lot of people trying to do it.
00:04:47:22 – 00:05:06:18
Chris Prefontaine
And I say try because you can go on a podcast after podcasts or radio, show up the radio show and you can hear people on Myspace getting interviewed, and you will hear them publicly say, yes, I do rent to own, and I don’t care if my buyers ever make it to the finish line because they get to install another buyer and collect another check assumption and I go, okay, that’s good.
00:05:06:18 – 00:05:21:03
Chris Prefontaine
Maybe they got that covered legally, but morally and ethically it stinks. So I’m a model of rent to own is that we want to set the buyer up to win. We have stringent underwriting criteria to do that. And now despite that, do we still have some buyers that can’t get to the finish line? Yeah, they have life events.
00:05:21:03 – 00:05:45:01
Chris Prefontaine
2 to 10% is our default at the marketplace. You probably know this number roughly. Others are getting about 20% to the finish line, like 80% people. That’s awful. So right all right. This a disclosure this so so how it works is we’re dealing with two types of people typically and the buyer. And we’re dealing with people that just left a high paying 5 or 6 figure multiple six figure jobs that go okay I started my own business.
00:05:45:01 – 00:06:02:05
Chris Prefontaine
Good for you. I’m an entrepreneur now. I’m not bankable for like two years seasoning the banks. Oh, two years of the time. I was on a, the call last week, we actually do a webinar together with a no buyer guy does a lot of notes in United States. And he said, Chris, I heard that’s getting worse for the seasoning, and I didn’t know that.
00:06:02:05 – 00:06:16:08
Chris Prefontaine
So so I guess that pushing that past two years now for seasoning, I was a great buyers for rental and they have a down payment is you pay that one. Right. I have a monthly strong income. There’s your payday two because you’re going to get their money. You’re going to pay out less to a property owner or property, right?
00:06:16:10 – 00:06:28:16
Chris Prefontaine
Yeah. And third payday is when you cash that property out and all that principal pay down accumulates on your side of the ledger. So to speak. So that’s what we do. Yes. On the rent own. That’s a long answer to your short question, but I hope that nailed it.
00:06:28:18 – 00:06:44:15
Aaron Fragnito
Yeah. And I like the rent to own you know because I buy renovate and refinance and sell apartment buildings. And the sale process is a pain in the neck. You know, we always hire a broker. They get their piece. I mean, I’ve bought and sold apartment buildings where I think the broker makes the most money, you know, compared to us.
00:06:44:15 – 00:07:10:12
Aaron Fragnito
I mean, the investors make good money, and, but they kind of get paid first, the broker gets paid, and then, like, you know, my company’s like, picks up whatever’s left over. But we’ve also had, huge wins there also. But, yeah, I mean, you know, it’s a process. We just listed two properties, and, you know, there’s a marketing, timeline, and there’s a negotiation of contracts, and then there’s due diligence, and then they got to get their mortgage, and it’s like a 6 to 8 month process to exit, you know, an apartment building.
00:07:10:14 – 00:07:30:06
Aaron Fragnito
And, so it is a pain in the neck. So having your buyer lined up, not having to pay a broker, you know, that really does, make your business run smoother. And, you know, that’s an interesting strategy. I mean, you have there. So it’s. And then they what? They usually maybe get an FHA loan or a conventional loan to buy it or.
00:07:30:06 – 00:07:31:09
Aaron Fragnito
It depends.
00:07:31:11 – 00:07:47:14
Chris Prefontaine
Yeah, both. Regardless of what they’re going to go get, we want to set them up to win. And we do that by what if they need seasoning? It’s easy, but they need credit repair. That’s the other piece of the equation. We help them. We put them through that. And there’s a mortgage ready plan and they might go out and get some good VA.
00:07:47:14 – 00:08:03:14
Chris Prefontaine
But regardless of what they’re going to get in regards to being told they have to put down, we’re looking for that 3 to 10% range, bare minimum if everything else lines up perfectly, and if it’s going to be a jumbo loan, eventually we want to go have a plan with us to get up to 20% before they go for their mortgage.
00:08:03:20 – 00:08:07:06
Chris Prefontaine
Again, you set them up to win ideally, right? And let’s say what for that?
00:08:07:08 – 00:08:25:18
Aaron Fragnito
Yeah. It’s incredible. I mean, then that person can then start building wealth by owning real estate, you know, down the line. So that’s a really nice strategy. So I understand how you get paid on the back end when the tenant, buys the property from you with the rent to own. I understand how you get paid the cash flow, or the tenant pays you rent and you pay the debt service and other costs.
00:08:25:18 – 00:08:36:07
Aaron Fragnito
And ideally, there’s, some cash left over every month. And that, of course, same idea with owning apartment buildings and any type of real estate. But how do you get paid upfront? How how does that first pay to happen?
00:08:36:09 – 00:08:52:19
Chris Prefontaine
Yeah. So picture that class of because there’s a boom in this right now. People leave in the W-2, right? Yeah. You know, I mean, since Covid, I think they been going up, up, up, up, up the starting your own businesses. Well they have cash, lots of them coming to us and they go, I didn’t even know I went to the bank, I got all this money in the bank.
00:08:52:19 – 00:09:07:18
Chris Prefontaine
I used to have this great income. I’m not bankable. It’s like a big surprise there. So that down payment they bring in that’s nonrefundable. So if it’s a $500,000 house and they’re putting down 50 grand that you pay a one. Now, we got a student, Rick. He’s now in is like I think he’s well over a million in his pay days.
00:09:07:18 – 00:09:22:12
Chris Prefontaine
But he his first deal with us. Now there’s some luck involved. Right. His very first deal he put a buyer in there. They were 18 years old. They started a paving company. The bank went financing. They have tons of cash coming in, but they didn’t have long enough in the biz. But their parents had been in the biz, so they knew the biz.
00:09:22:14 – 00:09:40:12
Chris Prefontaine
They put down 90,000 for the payday one. So this guy was working for the government 30 years. Rick was my student, my community member. He gets this payday one. He’s like, oh, okay. So now we structured three more deals like that for strong family ones and left his job. This dirty is with the government. How many ones can be a game changer.
00:09:40:12 – 00:09:46:11
Chris Prefontaine
As like you and I are always used to getting that one check and then the rest of and play for future, that’s pretty cool.
00:09:46:13 – 00:09:52:07
Aaron Fragnito
So that’s more than a security deposit. That’s a down payment on the purchase of the home. Oh yeah. Go to buy.
00:09:52:07 – 00:10:09:16
Chris Prefontaine
Actually related to the purchase. Like if you and I bought a home today and we put down a hundred grand and closed next month, say with us that person put 90 down and they’ve cash that out, that deal cashed out for them. So probably 26 to 28 months later they had a 36 month term. They cashed it out for Rick, and Rick got it right.
00:10:09:18 – 00:10:18:18
Aaron Fragnito
Now, do you, like, take part of the rent and put it in escrow and then like apply towards their closing costs or like, how creative do you get with that whole side of the rent to own?
00:10:18:21 – 00:10:35:04
Chris Prefontaine
You haven’t had to. Does that mean somebody couldn’t? It’s a great question. No. I mean, you want to get creative to help someone get their financing. You can, but we’ve never had to do that. Right. We do have what we have a little equity bill. We call it equity enhancement program. Yep. What that means is if you’re a buyer, we don’t give you credit for principal.
00:10:35:04 – 00:10:58:01
Chris Prefontaine
However, if you can see your way to coming up with extra money any one of the month. So hey, I might do this monthly. It might do it once a quarter and you put it out up to $500 a month. We will. And investors do what they want. And our family team, we match that off the price. So if we pick up an extra 500 from you this month because you want to pay down more on your deposit, we will credit the price 500 bucks.
00:10:58:03 – 00:11:11:15
Chris Prefontaine
So we can’t give you double credit on the deposit. The bank will allow you to we can give you credit deposit and then part of the price $5. It’s incentive for them to put more down, gets them more invested, gets in better shape for the bank. And what does it do for us? More cash flow.
00:11:11:20 – 00:11:32:05
Aaron Fragnito
Yeah. More money upfront. Yeah. Got it. That’s interesting. And then, so so as far as owning these properties, how do you usually own them? Because you’re, you have a lender then normally on the assets as well. Right. So your let’s say is like a single family home, you renovate it. And what do you like try to refinance out or how do you hold on to them long term?
00:11:32:10 – 00:11:49:03
Chris Prefontaine
Okay. So a couple things here. First, if it needs renovation, I was going over one with my community member, Judy. We don’t do the renovation as long as it’s habitable, we’re going to come back on as a rent to own. And that rock is huge. Builders and handymen that don’t get financing, you know, because they hide a lot.
00:11:49:05 – 00:12:08:18
Chris Prefontaine
Right? That market is enormous for us. So we don’t do the rehab we pass along to the buyer. As far as financing, we never get a loan. So if I buy your house on a financing, I’m making payments to you. If I buy your house subject to the existing financing, the loan you have in place stays in your name even though I buy it, and I’m making payments on your behalf to the bank.
00:12:08:18 – 00:12:15:00
Chris Prefontaine
So I never sign on a new loan or refinance. Now I just wait for the buyer to cash us out. Wow.
00:12:15:06 – 00:12:34:24
Aaron Fragnito
So the magic is or the the strategy is really finding someone who’s willing to work with you, a seller who’s willing to work with you, and holding that note, doing a subject to they really have to trust you that you’re going to execute on your business model, you’re going to keep paying that mortgage. And also it’s a good tax strategy for them.
00:12:34:24 – 00:12:36:13
Aaron Fragnito
They save on taxes at the time.
00:12:36:13 – 00:12:50:08
Chris Prefontaine
Being nailed it. You nailed all the benefits like yeah. And so on. The you get two different avatars here right. The free and clear seller. They’re not in financial straits. They just want the most money estate planning and tax planning and building that way. Probably after I was on your show, I bought my, commercial building that way.
00:12:50:10 – 00:13:08:01
Chris Prefontaine
Very savvy real estate investor said I want owner financing. Chris. The realtors don’t get it. They’re bringing me offers. I don’t want a full price offer in cash. I want two terms. Now. The other side avatar is sub tos that we did. You just hit? Are they usually stressed out? Yeah, they’re usually completely different. They like need closure now.
00:13:08:02 – 00:13:13:15
Chris Prefontaine
So yes they have to trust you. But they also need a solution like yesterday. A lot of them. So you talk about two different ends of the spectrum.
00:13:13:15 – 00:13:26:13
Aaron Fragnito
That right. They might have trouble paying their mortgage you know. Now they see. So you’re, you’re almost are you kind of like a, you’re like leasing the property, then subleasing it, or you’re, you know, how does that subject I’m not that familiar with.
00:13:26:14 – 00:13:36:08
Chris Prefontaine
Yeah. Go through three different answers to that on the on the financing. We literally buy it. Right. And the owners, the banks and we buy it. Then we go ahead and do the Daily Star with the buyer.
00:13:36:10 – 00:13:36:17
Aaron Fragnito
Yeah.
00:13:36:18 – 00:13:53:18
Chris Prefontaine
On the Sub2 we buy it, it’s in our name also to buy ways. And then we do the rent on the buyer. The only time we don’t buy it is lease purchase. So we do sandwiched just between the seller. We do a lease purchase with. And then we turn around and rent to own it to the buyer. That’s the only one.
00:13:53:18 – 00:14:12:00
Chris Prefontaine
We don’t own it. We control it. I’ll title with a notice of option to protect us, but we only control that property now for tax reasons. I said at third for a reason. I’d rather own it with all the benefits of depreciation. Everything. Yeah. When I was newer, you know, over a decade ago in this space, there were a lot of sandwich leases versus owning.
00:14:12:00 – 00:14:20:24
Chris Prefontaine
And then I learned the hard way. 2 or 3 years later, wow, I’m getting whacked pretty good on taxes. We twisted that up a little bit, but they’re all great as long as you plan accordingly.
00:14:21:01 – 00:14:45:10
Aaron Fragnito
Yeah. Yeah, absolutely. And, you know, I’ve learned, a number of times, don’t let the tax tail wag the dog, you know, right. So the benefit of the sandwich strategy, you know, where you’re kind of doing a master lease on and controlling the asset, you really are limiting your risk. Time for. You know, the most part, you know, because we sell our financing, you are still signing a note, but ideally, you don’t personally guarantee it, you know, or you can and you’re not going to the bank, you know.
00:14:45:10 – 00:14:56:22
Aaron Fragnito
So, and then with the, with the other strategy of kind of, you know, also the lenders, I guess you also have to work with the lenders for them, allowing you to pay the note right.
00:14:56:22 – 00:15:13:17
Chris Prefontaine
And and take a good question. The lenders, there’s a do on sale clause on almost every loan right to the loan is it’s not. So you going to call and get permission quote unquote. You just have to. And we’ve learned over the years to do this more efficiently and legally protected better. You have to structure the deal. I call it papering the deal.
00:15:13:19 – 00:15:35:20
Chris Prefontaine
An attorney that does subject to deals, who understands the laws around Guide and Saint Germain Act, which was in 1982, is goes way back and it allows them to transfer property without triggering the do on sale clause. So you have to pay for rights and interest the owner’s part of it, the seller proud of it. And that has been, once one case, and it was only a few years ago, was tried by one of our attorneys.
00:15:35:22 – 00:15:50:18
Chris Prefontaine
He, one of his investor clients had a do on sale come out them, and he took it to court and won. Why? Because he structured around the guy in Saint Germain act. So people always go, well what about the do on sale? Do it right and pay the bill to right. Pay the the mortgage every month and you won’t have that issue.
00:15:50:20 – 00:16:03:12
Aaron Fragnito
Yeah, yeah that’s interesting. So the seller moves into a trust and you all become part of that trust. And now essentially you’re really not transferring title. You’re just being added to a trust that you will. And then you’re the managing member of the trust. So you get to control the asset.
00:16:03:12 – 00:16:23:13
Chris Prefontaine
That’s Yeah. Now disclosure and I for gosh, since 2013 till about 4 or 5 years ago, we weren’t that sophisticated with them. We were just putting them in our LLC. Then we said, well, wait a minute. An attorney said to us, why don’t you put them in a trust, not the protected trust we have now. Why don’t you put them in a trust that’s labeled the street address in the seller’s name?
00:16:23:13 – 00:16:38:04
Chris Prefontaine
So be, you know, one, two, three Jump Street for Magneto Family trust. Provide a lot of all of oh they must be doing that within the family. So now instead of just labeling it like that we actually do it with the family. So now you’re protecting it right.
00:16:38:04 – 00:17:03:15
Aaron Fragnito
Right right. And that probably is less likely to trigger any issues of the bank you know time. Yeah. Right. Right. Exactly. At People’s Capital Group we help you invest in real estate, build your wealth by owning professionally managed apartment buildings in the northern new Jersey market. We want to show you how owning real estate is attainable, even for the busy professionals that don’t have the time or experience investing in real estate.
00:17:03:17 – 00:17:24:02
Aaron Fragnito
Now, we only work with select people who are serious about building wealth, so find out if you qualify at People’s Capital group.com. That’s interesting. That’s interesting. All right Chris. Wow. So you really learned a lot from your successes and mistakes. Over the last two decades here in real estate. Even longer than that, really 30 years or so.
00:17:24:02 – 00:17:30:00
Aaron Fragnito
Right. So, and, you know, you still have a lot of your hair for, me going through, so it’s not.
00:17:30:00 – 00:17:30:20
Chris Prefontaine
The same color.
00:17:30:22 – 00:18:03:22
Aaron Fragnito
Yeah. Yeah. Definitely not. Definitely not. So that’s good to eat, right? Exercise is important. That’s exciting. So, what what are you seeing in the market? You know, a lot of people these days is. Oh, I can’t find a deal. Residential real estate is priced too high or. Yeah. Oh, I’m not going to invest my money. I’m going to wait for prices to come down, which is the one that gets me laughing because I’m like, if you understand supply and demand, then you’re going to be waiting forever because prices are just going to keep going up because, supply is going to be, shortening actually limiting, because the building frenzy of
00:18:03:22 – 00:18:22:18
Aaron Fragnito
low interest rates is coming to an end. And, we haven’t been building for the last two years. And what you’re seeing now is inventory coming on market from, the Covid days. And, you know, it takes a while to build. It takes a while to get at least up. But in the 2026 year, we’re going to see less and less inventory here in the market, which means prices goes up.
00:18:22:23 – 00:18:38:16
Aaron Fragnito
Inflation seems to have been tamed for the most part. I don’t see any huge interest rate bumps in the future by the fed. Probably more the contrary. So, I think, you know, prices are going to keep ticking up here, but, what what are you seeing in the market?
00:18:38:22 – 00:18:56:13
Chris Prefontaine
However, I agree I put a big stamp on what you just said. And for all of the above reasons, I love I love what we’re doing in the creative world and what you’re doing. Because all you have to okay, a couple things. You have to be aware of what you just said, right? Like, do the masses do whatever it takes every day, no matter how hard it is to accomplish all their goals?
00:18:56:13 – 00:19:14:05
Chris Prefontaine
No. So unfortunately, they follow media and it’s like, I call it cheap, right? I just kind of fall. Well, if you know, the masses don’t do that, do you follow the masses for them? It’s just you. You’re heading down the wrong path. So having said that, how do you equip yourself? Well, and I’m biased, but in my opinion, you learn the creative real estate niche.
00:19:14:05 – 00:19:31:08
Chris Prefontaine
It’s not new. It pre-dated mean you would pre-dated banking, right? So learn that so that when the market pivots, you’re comfortable. Not only are you comfortable, you’re excited. My wife always says, Aaron, I’ve been married 39 years. She’s she’ll say she’ll see some of the news or the interest rates change or something changes in mortgage. So how does that affect you or how is that going to affect the students?
00:19:31:14 – 00:19:45:19
Chris Prefontaine
Like, oh, it’s great. As long as they know how to pivot. Right. So as long as you understand creative and you know what pawns to fish in, as the market shifts, you’re going to clock deals no matter what. It doesn’t matter. It really, truly doesn’t matter. And remember, you’re never sounding it alone. So don’t stress out about it.
00:19:45:19 – 00:19:59:05
Chris Prefontaine
And to your point, does the market in general, if you historically go back every year and do a ten year look back, does the market typically go up over ten years? Everybody would agree with that. Then what are you getting kind of in the weeds by then. Just letting create real estate and go after it.
00:19:59:07 – 00:20:05:01
Aaron Fragnito
Yeah. Markets go up. Markets go down. I mean the one thing I wish I did was buy more real estate when I started in this everyone.
00:20:05:01 – 00:20:05:07
Chris Prefontaine
Says.
00:20:05:07 – 00:20:25:16
Aaron Fragnito
It 2010 to 2015 Mandy I mean I remember I used to go to sheriff sale auctions like 2014, 2015. First of all, no one was there. It was me. And like three other investors and we all knew each other. So yeah, that was that was nice. I won’t go into detail there, but basically it was it was a great opportunity to buy great deals for great prices.
00:20:25:16 – 00:20:48:02
Aaron Fragnito
And, so we were we were going scoop up deals for like 40,000, 60,000 a pop. These are like three family properties in Newark, new Jersey, that are now selling for, 700, $800,000, renovated. So, you know, we would scoop them up, and then we’d go and flip the contract, you know, sign the contract, would wholesale the bid out to.
00:20:48:04 – 00:20:49:10
Chris Prefontaine
Get you going. Oh, man.
00:20:49:12 – 00:21:08:24
Aaron Fragnito
I man to sign the bid out for like, 100,000, you know, make $50,000 on a Tuesday and then do it again the next week, you know, and and it was just like and I think we made over $1 million wholesaling deals, you know, like 2015 or something. So great opportunity made. Hey, while the sun shined, but yeah, all those properties are so cheap back then.
00:21:08:24 – 00:21:27:01
Aaron Fragnito
They’re going for so much right now. If I had the resources I have now and the relationships I had bought, I would have just bought a lot more real estate. And if I knew then what I know now, of course, but it’s, You’re absolutely right. You know, buying good markets near population centers, own them. Be a good landlord, take care of them.
00:21:27:03 – 00:21:39:04
Aaron Fragnito
And, in time, you know, rents go up, property values go up. You know, real estate’s an incredible asset class to own long term. Do you invest in any, multifamily or are you more so in the single family space?
00:21:39:06 – 00:21:54:17
Chris Prefontaine
Yeah, no, I do, I’ll give you a couple of those to that. I, I teach one thing and then I broadly do similar things. Why? Because if I teach anything but stock here, I’m a new person. What do they do? You know this now they’ll go what I call drilling wells. Shiny object. They jump from thing, that thing to thing.
00:21:54:17 – 00:22:11:00
Chris Prefontaine
The thing, the thing. And they. They never hit water. Right? It’s. I call it drilling wells. Yeah. So I teach that. But in their journey will they, through our coaching and or an accent. Will they run into Maltese. Will they run to mix you. Sure. So on our end, we have bought anywhere between 4 and 15 million buildings on our financing.
00:22:11:00 – 00:22:29:16
Chris Prefontaine
No money down. We bought. I told you my office building that way, because it fit to his goal. Like you can buy any asset class. You can buy boats and and cars and planes and they do. I don’t have financing. So yeah, any, any asset class whatsoever. And to your point with the markets, Aaron, I didn’t tell you this story.
00:22:29:16 – 00:22:50:09
Chris Prefontaine
So back in man, this sort of a 95 ish way back we were at there’s a nice little niche around colleges. I still to this day love it. If someone wants to get into it and the college niche you’re renting to kids who the parents sine cosine and they prepay. And my partner who I had about 13 of those with buy all across college, said to me about a month ago, we out to dinner.
00:22:50:15 – 00:23:07:21
Chris Prefontaine
He said, can you imagine if we kept them there going for like a million bucks? Now these three families, we have like 13, 14, whatever we had out of those running a nice little business and we bought them like in the twos and threes, because we are the fat happy thing in the 4 or 5 but million bucks now, so you’re not going anywhere if you do the right thing in real estate.
00:23:07:21 – 00:23:08:06
Chris Prefontaine
Yeah.
00:23:08:08 – 00:23:27:24
Aaron Fragnito
Yeah yeah. And as I work with family offices and ultra high net worth individuals, you know, that’s really you know, most of their wealth is in real estate. And they look for cash flow. They look for long term investments. They look for tax strategy. And that’s how you truly build wealth. Holding on to assets long term. You know, utilizing a 1031 strategy, utilizing the cost segregation strategy.
00:23:28:05 – 00:23:48:03
Aaron Fragnito
And, creating, you know, revenue streams through that real estate, and that that’s what we focus on, you know, with our investors. So it is certainly a, a great strategy, you know, and, are you still actively doing a lot of the coaching and the, different like, events and seminars and things like that for your real estate on your terms?
00:23:48:06 – 00:23:49:09
Aaron Fragnito
Education there.
00:23:49:11 – 00:24:07:01
Chris Prefontaine
Yeah. So I personally that’s your asking still, coach, a little bit of, we have four levels. I coach the third level a little bit, and the coaches handle them. Now we have three amazing coaches, plus my son and my my son in law. And then I coach, I will launch a private club every couple of years. So I have what’s called the president’s call right now.
00:24:07:01 – 00:24:22:07
Chris Prefontaine
And I coach them. There’s only six of them. We are on nonstop because I love doing deals like I saw the company doing deals. And then my son in law was more, hey, let’s scale this. So I love doing deals. It’s where my love with the businesses and yeah, we I love coaching them because why the committed, the six committed people.
00:24:22:07 – 00:24:29:12
Chris Prefontaine
You get on the call and they’re doing deals. So I love that love and I’ll do that every now and then when I get bored, I’ll launch another private level. And that’s what I’m doing now.
00:24:29:16 – 00:24:48:01
Aaron Fragnito
Yeah, yeah. So kind of like quality over quantity. Good guys are actually doing deals because I noticed I feel like sometimes the coaching model is to just, you know, charge like kind of a small upfront fee and then like just, you know, a lot of the people don’t end up not doing deals. But I feel like with you, you actually really try to get your students to actually do deals.
00:24:48:03 – 00:24:49:03
Aaron Fragnito
And that’s important to you.
00:24:49:08 – 00:25:08:19
Chris Prefontaine
You hit a big one there because when I started, there was like 4 or 5 of us in the creative world, and I and I could name them and I knew what they were doing. Yeah. Now there are there’s just a plethora of people out there. But here’s a challenge. You and I see it on social now. They’re getting bombarded by the get rich quick tomorrow that rented Lamborghini and helicopter.
00:25:08:19 – 00:25:25:02
Chris Prefontaine
And it’s just a bunch of craziness. So when I went looking after I was broke after the crash, I couldn’t find anything back then that said, hey, here’s what you can learn, but I’ll also come with you and do deals are also come behind and support it. That’s what we do. And frankly, no one’s doing it. And that’s impulsive.
00:25:25:02 – 00:25:35:17
Chris Prefontaine
Nobody’s doing the model we’re doing to get in the trenches, lock arms and actually do the deals, because that’s where the headaches come out, right? You know, you’re doing it a little different than being in a seminar. You need it. You need help. You need someone locking arms with you.
00:25:35:22 – 00:25:58:04
Aaron Fragnito
Yeah. Yeah. Exactly. And that that’s it. You know, because just the books in the CDs don’t only get you so far, you know, deals are intricate, little like, you know, they’re almost like a live little beings. They. Everything changes this little detail that you’re dealing with human beings who have life events, you know, so it can be very detail oriented and a coach to kind of get you through that process is, is very important.
00:25:58:06 – 00:26:10:01
Aaron Fragnito
That’s great. Chris. No, I’m I’m glad to hear you’re doing well. I’ve always loved your model, you know, and I’ve always been curious to learn more about it since we connected. Boy, I think it was, kind of 20, 21 or so was like, right, right. During the pandemic.
00:26:10:01 – 00:26:11:24
Chris Prefontaine
Actually, I think it was right during or after Covid. Yeah.
00:26:12:00 – 00:26:17:09
Aaron Fragnito
Yeah. Yeah, exactly. And, so, how can people, reach out to and learn more?
00:26:17:13 – 00:26:37:20
Chris Prefontaine
I want to get everybody a, I’m big on free. I want on there. I want to give everybody some free stuff because I just because of the frustration in the market, then I’m getting bombarded to really give them some free stuff. So go to Wicked smart books.com/aaron wicked smart books.com/aaron. You’ll get a free couple of our free bestsellers instead of going to Amazon.
00:26:37:20 – 00:26:51:18
Chris Prefontaine
We’ll ship them out right from the office. And it’s not one of those offers. It says, hey, free ebook and you get to put in eight bucks for shipping. It’s free. You won’t pay $0.10. Secondly, you could go to, if you don’t mind listening to to me from New England for another 30 minutes. Go to my free workshop.
00:26:51:24 – 00:27:03:03
Chris Prefontaine
That’s been it’s been filmed, so you can just watch it your own leisure smart real estate coach.com/masters with an S class. Masters class. That should get you go into free stuff.
00:27:03:05 – 00:27:17:16
Aaron Fragnito
That’s amazing. Yeah. And send me those links. We’ll be sure to put those in the show notes for everyone as well. If you’re watching us on YouTube or, a podcast platform that you can click on there and, that’s amazing. Chris, I love the fact giving away free books, free classes here, two websites.
00:27:17:18 – 00:27:19:15
Chris Prefontaine
You blocked out a little bit. Sorry about that.
00:27:19:17 – 00:27:22:05
Aaron Fragnito
Yeah. One more time. One of those two websites.
00:27:22:07 – 00:27:32:04
Chris Prefontaine
Sorry. Wicked smart books.com/aaron. And that’ll get you the free books. And then for the workshop smart real estate coach.com/masters class.
00:27:32:06 – 00:27:50:02
Aaron Fragnito
Awesome. All right. Thank you Chris. Awesome. Thanks for coming on here. And yeah. To our listeners, Chris is the real deal. My friends. You know, no money, town, real estate acquisitions, crazy types of, acquisitions. He is. He’s got lots of great ideas. And he’s actually implementing it. And, so that’s what I like about what you have going on.
00:27:50:04 – 00:28:12:08
Aaron Fragnito
Chris. And, to our listeners, if you’re enjoying this content, you know, we come out with a new episode every two weeks. We have, different guests on here, from professional athletes to tax. We try to bring you, listeners the best of the best here so you can build your business, build your brand, and most importantly, build your wealth so you can preserve your time and do the things you love, spend it with loved ones, and, enjoy life to the fullest.
00:28:12:13 – 00:28:31:05
Aaron Fragnito
So, we’re all about preserving building your wealth here. A lot of our topics are real estate focused, but some are just in general, our business focused and well focused as well. So, please share this episode if you’re enjoying it, if you feel like there’s someone in your network that would gain value from it and, give us a like if you’re on, one of our major podcast platforms or even YouTube, we are also on YouTube.
00:28:31:05 – 00:28:49:07
Aaron Fragnito
You can Google, People’s Capital Group or, you can put in there, passive cash flow podcast and check out all of our different content on YouTube. We also have like additional videos on YouTube. Also, you can check out that we don’t put on the, podcast platforms here. So I’m Erin Frank, you know, co-founder of Peoples Capital Group.
00:28:49:07 – 00:29:11:07
Aaron Fragnito
We’ve been helping people build and preserve their wealth in new Jersey real estate for over the last decade. So if you want to learn more about what we’re acquiring right now, we’re buying a building in Hackensack, new Jersey, very excited to get this thing closed and get it moving forward. We have a few spots left, although we’re about 90%, over 90% filled on our recent, offering, our private offering out to private investors.
00:29:11:07 – 00:29:24:05
Aaron Fragnito
But if you want to learn more about that, you go to People’s Capital group.com and set up an appointment with a member of our team. We can see if you qualify for one of our investments here in new Jersey. I thank you so much, Chris, for coming on the show. Well, my friends, you too.
