NJ Passive Real Estate Investing FAQ

What is a passive real estate investment?


A passive investor sits back and collects a quarterly check while the real estate investment firm secures the bank loan, assumes the mortgage risk, renovates the property, and keeps the tenants comfortable.




Why do people like passive real estate investments?


People like owning a piece of property that improves a neighborhood. People like legal tax shelters and predictable investment returns to confidently fund important occasions in life. 401Ks and IRA's aren't enough. People like low-risk investments. By spreading rental income amongst many apartment units, a few vacancies don't hinder the strategy. People like to invest in ideal NJ properties with easy NYC commutes that meet NJ's housing demand.




Why do people like investing in NJ apartment buildings?


NJ rents are below the national average which indicates high earnings in the labor force with room to increase rents. Wages rose 3.9% in 2019, and rents rose 6.95% and 17.95% in Newark and Berkeley Heights, respectively. NJ has a highly-skilled workforce and ranks #1 in education and #3 in median HHI, nationally. The state is home to 20 Fortune 500 companies and is #1 in drugs and pharmaceuticals jobs. And, NJ is #2 in direct foreign investments. People want legal tax shelters and predictable investment returns to confidently fund important occasions in life. 401Ks and IRA's aren't enough. People want low-risk investments. By spreading rental income amongst many apartment units, a few vacancies don't hinder the strategy. People want to invest in ideal NJ properties with easy NYC commutes that meet NJ's housing demand.




How many years will an investor's money be committed?


A PCG real estate investment has an exit strategy of 3-5 years. The investor can get a lump sum payout and settle up the taxes or reinvest and continue getting tax and equity depreciation and quarterly checks.




Why do people self-direct their IRA into real estate investments?


Real estate investments perform better than most IRAs, and people like the satisfaction of seeing their money make a difference in a community. They connect with an IRA custodian to get started. The investor takes a passive role in property and collects a quarterly check.




Am I qualified to invest in real estate with PCG?


Accredited Investor:
An individual with either a net worth of at least $1,000,000, excluding the value of one's primary residence, or annual income of at least $200,000 each year for the last two years (or a $300,000 combined income if married) and have the expectation to make the same amount this year. Sophisticated Investor:
A sophisticated investor is a classification of investor indicating someone who has sufficient capital, experience and net worth to engage in more advanced types of investment opportunities. Self Directed IRA Investor:
Most IRA's only allow approved stocks, bonds, mutual funds. A Self-Directed IRA allows investments in Real Estate with the same Tax Benefits.




What are 30+ investors getting in the property deals?


100% passive investment opportunities in local real estate Transparent management process Quarterly balance sheet and profit & loss sent directly to investors Quarterly net cash flow checks mailed directly to investors 100% of tax filings for company Investors do not have to personally guarantee the bank loan Exclusive off-market local investment opportunities every quarter Option to invest through investor’s IRA Low minimum investment amount $30,00 or more Ability to invest over $1M into local real estate quarterly Quarterly public meetup at the office to educate investors




How are PCG Investors protected?


PCG Investors are protected by a number of ways. Firstly, the operating agreement for the LLC created to purchase the building has protections for the passive investors so if there is gross neglegence, theft or foreclosure proceedings, the management control is immediately given to the passive investors and relinquished from the operators. Also the Seth and Aaron (the operators) have life insurance and disablity insurance. The real estate is insured with the proper type and amount of property insurance and title insurance. The management company is also insured to protect against suit from tenants.





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©2020 Peoples Capital Group LLC

261 Springfield Avenue, Suite 103

Berkeley Heights, NJ 07922