Updated: Nov 20, 2020
In this episode, Aaron Fragnito and his partner Diana Brown visit a current Peoples Capital Group short term rental property located in Vermont that is currently being renovated. Aaron and Diana explain how the property was structured with passive investors, the plan for the next round of purchases and how the market is reacting to rural short term rentals. Listen in to learn how passive investors earn strong cash flow, equity growth and a free vacation week by investing in short term rental properties with Peoples Capital Group.
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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.
Diana Fragnito: When you're going on vacation, what do you want different? You don't want more of the same. I think that you made a good point about if you're going through Massachusetts, you're going through New York, whichever way you go, you can tell. The trees are different. You can tell the roads are different. It's different. How far will you go for something fresh?
Aaron Fragnito: Ladies and gentlemen. We are here at 391 Heald. There's construction going on in the basement. We're building a bathroom in the bedroom, and welcome to the Passive Cash Flow podcast. We have our favorite guest, Diana Brown. Say hi, Diana.
Diana: Hi. Hi, Diana. Hi, Aaron.
Aaron: All right. As you know, I'm Aaron Fragnito, your host of the Passive Cash Flow podcast. This is sponsored by Peoples Capital Group. You can learn more at peoplescapitalgroup.com, how passive investors are participating in this beautiful property right here and how they're earning nice passive cash flow on their investment here once we're finished with construction, which is going on right around us. Hopefully, you can hear us well. Diana, I'm going to let you steal the show. Why don't you ask me a few questions about what's going on here, and I'll ask you some as well.
Diana: Yes. Well, Aaron, this is super exciting. I think one of the first things that was super exciting about this property was how quickly it was funded. How quickly was that exactly? I know you've mentioned a few times, but-- How quickly was it? [chuckles]
Aaron: Well, we got this deal funded in 72 hours, and you get consistent equity gains. It's a nice investment here, and also a free vacation week doesn't hurt.
Diana: All the investors get a free vacation week here?
Aaron: That's right. [chuckles]
Diana: Wow, exciting. I'm looking forward to giving them my world-class hospitality.
Aaron: Yes. No, it's a pretty cool system we have set up here. They get to make a passive investment, where they get the benefits of owning the real estate, but then they also get a free vacation week through the year. It's a fun little thing we offer now. If they're investing with their IRA, there's a different way we have to do it. That's the fine print.
Diana: Sure. We don't have time for fine print here. This is for fun. If someone did have intentions of wanting to invest, we're adding four more properties, I think, right?
Diana: We're finding them so quickly. If someone did have those intentions and they did want to go into that fine print, what do they need to do, contact you?
Aaron: Sure. Well, they can learn more at peoplescapitalgroup.com. They have to fill out a qualification form. Not everyone qualifies, but we do work with small and large investors, so sophisticated and accredited investors. We also try to really teach people what we're doing, how we source these opportunities, how we leverage the capital that we work with the investors on. That's all at our website, peoplescapitalgroup.com. In fact, there's a webinar coming up Tuesday. I'm not sure exactly when this is airing, but, hopefully, that we can get that webinar out, that'd be great.
Diana: Well, you have regular webinars all the time, so as long as they go ahead and get in there, get on your list, they're going to get all the information.
Aaron: You sign up on our website. You'll get information about our upcoming webinar about this investment. That's Tuesday night, but it depends on when this podcast airs, of course.
Diana: We have other properties like this.
Aaron: Yes, absolutely. We're closing on two more properties right now. They offer similar returns, similar structure, free vacation week. They're in the same town, in fact. One's the town over, even closer to our world-class ski resort that we work off of, so really awesome opportunities. We're actually doing a webinar about those opportunities on Tuesday. This property is already purchased. Of course, the investors are already secured here in this investment. It's beautiful-
Diana: It's gorgeous, absolutely gorgeous.
Aaron: -we got a trickling river here. We have the leaves falling.
Diana: I just want to sit here-- Sometimes, I do. Yesterday, I was just staring out the window for a few minutes, because I was just like, "I can't believe I'm working here. This is my work now." I used to work on Fifth Ave just surrounded by concrete and steel and stuff-- and people, and just shoulder to shoulder with people. Look at all the space we have here now. I was blogging my commute here and how different it is for my commute when I used to work in the city or in Hoboken. This is just a change of pace. I think that's why people are really drawn to vacationing here.
Aaron: Yes. Well, also corona-based, Vermont is the least exposed state for corona. If you're worried about that, people come here to get away from the corona. It's just beautiful. It's open outdoors. There's no billboards allowed in Vermont. Even though I don't like too much government regulation, I do like the fact that billboards aren't allowed in Vermont, which is a complete complex in my mind I can't get over, but that's okay. I like the fact that billboards are not allowed in Vermont, and it's beautiful out here.
It's different than New Hampshire and Upstate New York, in my opinion. It has a charm, a small town, cozy little country store, brewery type of feel. A lot of the restaurants are breweries. [chuckles] It's just fun up here, the wine and cheese, the antiques, the hiking. We're talking about even down the road creating our vision. We'll have to do another podcast. That's a whole other podcast.
Diana: We have a lot of stuff,-
Aaron: Oh, my gosh.
Diana: -lots of stuff on the whiteboard.
Aaron: ATV rentals. [chuckles]
Diana: All right, stop. You can't promise those things. Like you, I was surprised, because I'm such a marketing person. You're a marketing person. I was surprised when we first came here, which was a long time. The first time we actually vacationed here was in 2016, I think, the winter after we first started dating or living together, I think.
Besides the point, I think that, as a marketer, I felt as though the scenery was the billboard, and I found myself seeking out establishments to eat and such and such. They do have those signs on the road, but at the same time, I really did feel like the scenery was the billboard and really was doing the sales for them. Actually, when I went back to New Jersey, it made me feel like, "Oh, these billboards are like litter."
Aaron: Yes, right, I know, billboards are really litter. The natural beauty of the world is so much better than a billboard.
Diana: I know you love trains, and you made me live next to a train-
Aaron: Yes, we live next to a train.
Diana: -the whole entire time we've been together.
Aaron: It's a scenic train line.
Diana: The thing about the train is that there are some great graffiti artists. I know this sounds crazy, but that train has got my eyeballs every time it goes by. I say to myself, "Wait a second, marketing, eyeballs. There's a missed opportunity here."
Aaron: We need to get on that train.
Diana: Yes, get on this train.
Aaron: It needs to say peoplescapitalgroup.com. The whole train should say that.
Diana: The train itself is very pretty, the parts of it that aren't dirty. The graffiti is actually very nice and pretty. Then, when the scenic train goes by, that's another experience you just don't get in non-destination places.
Aaron: The scenic railroad is lovely. It's this old scenic railroad that goes through [crosstalk].
Diana: We took it one time. It was so good.
Aaron: Oh, my gosh. So much fun. We live right next to it.
Diana: I have some footage. I'll [unintelligible 00:07:50].
Aaron: Absolutely-- abeautiful place to live. It reminds me of a [unintelligible 00:07:58] train village, those--
Diana: Living in it?
Aaron: Right, living in a miniature [unintelligible 00:08:02] train village is basically what we're doing here. The vacation spots, the properties we own have that feel to them that you're in a miniature village, like a Gilmore Girls type of village.
Diana: Wow, good remembering, Aaron.
Aaron: If you're a Gilmore Girls fan,-
Diana: Gilmore Girls.
Aaron: -you'll like Vermont.
Diana: Like you said, we have more properties like this. We're not slowing down. I hope you're not slowing down, because I'm dragging you out to properties just as much as you're dragging me out to properties.
Diana: I think sometimes, it's really fun that we do it together, because it's kind of fun. I probably have some footage of that. You love going out, too.
Aaron: My favorite thing about this business is looking at real estate. Unfortunately, most of the time, actually, to be successful in real estate and raise capital is behind a computer, but I love looking at real estate. I do it all, so I can go out and look at the properties and experience the properties like this and hire people and improve them. I love it. It creates jobs. We're moving materials. It's a nice feeling to be renovating homes, to be buying homes, and meeting good realtors out here and really developing our systems, so that it's fine-tuned out here. It's my favorite part of the business, yes.
Diana: Yes. It's a lot of imagination, really.
Diana: Like I always say, reimagine.
Aaron: Yes. Well, we walk through every home. We come up with a brand for it, a vision, rooms we can change, garages we can make into hangout areas.
Diana: Yes, a lot of reimagine.
Aaron: We just found something that used to hold lumber and firewood for this house. We flipped it around. Well, Diana told me to flip it around. Now, boom, it's a tiki bar. We know a guy who owns a lumber mill and he can give us--
Diana: Who already showed us the piece of wood. He's like, "Well, if this guy doesn't come pick it up, there's still three more where that came from."
Aaron: Yes, they just have huge wood slabs laying around, perfect for countertops. You go in there with a $100 bill, you get whatever you want.
Diana: Pretty much, yes. That’s what I love about the country. It’s different from the city, it’s just different. It not better or worse, but that’s when you’re going on vacation, what do you want? Different. You don’t want more of the same, and I think that you made a good point about, when you’re driving here through-- If you’re going through Massachusetts, you’re going through New York, whichever way you go, you can tell. The trees are different.
You can tell the roads are different. It’s different. It’s how far will you go for something fresh, something new. I’m a theater person growing up, as you know. The reason why people go to the theater-- This is not something that anyone consciously knows, but the reason why you go to the theatre is to be changed. It’s the same vacations. That’s what I’m always making sure of when we are putting together a new property, when I’m doing [unintelligible 00:11:01] hospitality and stuff, people should come here and leave a different person.
That’s when we started coming here, I always would be like, "Oh, my gosh, I thought of a new idea. I feel so revived, so rejuvenated".
Aaron: Yes, we love it up here, and our guests say all the time, they do get changed from being up here, which is really incredible. It's four hours from New York. Its's two hours from Boston. You don’t have to get on a plane. It's near a bunch of populated areas, Connecticut, New Jersey, Massachusetts. It’s just a really great spot to get away for the weekend or a week or work here.
Diana: Yes, it’s something different. It's fresh air. I just heard on the radio someone say, and I’m going to go ahead and steal it, "Fresh air, room to breathe, reconnect."
Aaron: Reconnect, there you go.
Aaron: The trickle of the water-- We like to buy homes near water features, like a nice little stream, a river, the zen feeling. There’s something about the trickling of the water that makes you feel zen. It relaxes you.
Diana: I have no intentions of slowing down, obviously, and I’m constantly bringing more properties to Aaron. If you’re interested, or anyone-- Because probably a lot of your listeners--
Aaron: Sure, it’s crazy how much interest we have in these properties.
Diana: You really need to get on the list, because things move pretty quickly, like Aaron said. This house got funded in 72 hours. There were certain situations with another investment as well that it was funded so quickly that some people who were interested actually got pushed on to the waiting list. I’m just doing like, "Oh, we will get you on the next one, I promise you there will be a next time".
Aaron: First come, first serve.
Diana: Yes, first come, first serve. You definitely want to be on that list. You definitely want to get your call in to Aaron.
Aaron: Go to peoplescapitalgroup.com. You can fill out an application to apply, and then we can set up a call once we received your application. We will review that, see if you are qualified to invest as a sophisticated or a credit investor. You could join our list here and review the private offering of randoms we have coming up for these properties and other properties in New Jersey as well. That’s all at peoplescapitalgroup.com, where you can learn more.