In this episode, Aaron explains 5 new ways to do business since COVID-19. This is not a podcast about zoom or social distancing, this is 5 solid ways business owners and investors should be changing the way they fundamentally operate and invest. Times have changed and we will need to either change with them or be left behind. This podcast covers this and more.
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Peoples Capital Group has been helping passive investors build wealth in NJ real estate for 10 years. Visit www.PeoplesCapitalGroup.com to find out if you qualify to start earning passive income and pay less taxes via investing in real estate. IRA’s and 401K’s are accepted.
Aaron Fragnito: Okay, ladies and gentlemen, welcome back to another episode of the Passive Cashflow podcast. I’m your host Aaron Fragnito, and today we’re going to talk about the new way to do business with the coronavirus going on right now here. We’re going to talk about how this virus scare has completely changed the way we do business. Even if you’re not a business owner, if you work for a business, this will apply to you. We’re going to go over five ways businesses change in the new way to do business.
Aaron: Okay, rule number one, volatile market. The market is so volatile right now, we’ve seen this in the past but now once again, we’ve been reminded that the market is volatile. It goes up and down, and it usually drops a lot faster than it grows. Investors and anyone coming out of this is going to be looking for safe investments, long-term investments, so if you’re in the investment business, this is going to be a very hot topic, a very popular topic.
Whatever your safer or longer term investments that offer consistency, growth and more projectable growth are going to be more popular amongst your client base. We work in long-term investments here, we try to find safe investments in high demand markets in real estate, multifamily real estate here in North Jersey. You want to have a strong strategy that has a long-term track record with lots of transparency, because in a volatile market, investors are going to be very, very suspicious of anything that’s get rich quick, or anything that is not going to show long-term consistent growth through transparency.
Number two, be ready for a huge spike in demand. When everything comes back to normal, people are going to pent up demand. It’s supply and demand. It’s economics. We all want to still have these goods and services we need. When things are back to normal, and they will be back to normal, hopefully sooner than later, we are going to have a huge demand, so you’ve got to be ready for that. Only the best businesses will survive.
You can also go out of business if you can’t service your customers. Here at PCG, we have a good infrastructure in place. You want to know your investor, you want to know your customer, who they are, what their needs are, so when they come back, you want to be able to service your best customers first, and then work your way down to make sure that the general public can also enjoy your services and goods. We offer a PCG ski house here, where you can come stay out in Vermont.
That’s a nice perk we like to offer to our investors, our good investors. Know who your good investors are, know who your best clients are and treat them well, and also get ready for a big spike from the general public. On number three, don’t lose your infrastructure. If you have employees that you don’t need right now, or independent contractors, put them on ice. At this time you want to keep your infrastructure in place. You want to get ready for that big rush coming back.
Also, if you’re negotiating transactions as we were, maybe let it set for a little bit. Put the transaction on ice for 30 to 60 days, maybe 90 days, come back to it. If you were the buyer trying to buy a property, well guess what? It just went from a seller’s market to a buyer’s market. That means you’re probably going to get a better deal. If you’re a seller trying to sell a property as we were, we’re selling real estate, we’re buying real estate, well, again, we’re going to let the dust settle.
That might give our buyer more confidence to get back into the transaction, and close quickly once things are back to normal. Rule number four, be ready to strike on an opportunity. Have some dry powder, have some cash ready to go for an opportunity. Maybe this is buying a piece of real estate, or buying a good investment, or buying another business, perhaps.
If you are ready to strike on a good opportunity when people are ready to move out on a business, or move out on an investment and are motivated, you can take advantage of that situation if you’re ready to strike, but you have to be ready for opportunity to take advantage of it. We’re trying to build our relationships with our investors right now, we put out two videos a week. We put out multiple webinars a week, so we’re ready to strike when the next opportunity comes, because we’re continuing to build our investor base.
We’re continuing to raise capital through these difficult times and build our relationships with those new investors, so that when prices start to really drop on apartment buildings here in North Jersey, we will be ready to strike.
Number five, give back. Being a business owner, we have the ability to give back, so our investors make good returns, we make good returns here at PCG, we want to give back. We like to give to World Vision, Compassion International, MissionCleanWater, our local Rotary Club. Check out your local Rotary Club. It’s a great way to give back to your local community. The nonprofits I just mentioned are nonprofits I personally love. I think World Vision and Compassion International are amazing ways to give back. Just in general, whether the market’s up, the market’s down, there’s a virus scare, you should always be trying to put part of your income– I know they say 10% may be hard, but we try to put 10% of our income back to nonprofits that we believe in, and World Vision and Compassion International are great places for that, or whatever your needs are, whatever your beliefs are, make sure you’re giving back.
Guys, this is Aaron Fragnito with Peoples Capital Group here. This is the Passive Cashflow podcast. If you want to learn more about how we’re surviving, how we’re building, how we’re thriving right now, as a small business in Northern Jersey, go to peoplescapitalgroup.com and you can apply to become a passive investor if you qualify, or even just watch our podcasts and learn about real estate investment. We try to put out a lot of information.
We have two videos every week on our YouTube channel, Peoples Capital Group on YouTube. Of course, we come out with a new podcast every Friday, that’s also on YouTube, but you can listen on all platforms here, so please subscribe to our YouTube channel, our podcast and listen back for more every week. Good luck out there. Let’s flatten that curve. Enjoy your day.