Updated: Jul 4, 2020
Sound NJ multifamily real estate investment deals take between three and six months to structure. Peoples Capital Group evaluates ~400 apartment buildings a month. The properties with the highest rates of returns have access to NYC, and they're located in up-and-coming downtown areas, like Newark and Paterson, New Jersey.
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. -- https://www.facebook.com/peoplescapitalgroupnj/
Aaron Fragnito: All right ladies and gentlemen, welcome back to the Passive Cash Flow Podcast. This is Aaron Fragnito your hosts, co-owner of Peoples Capital Group. This is episode number six called 3 Vetted Investments For Passive Investors. We are going to break right into it here today. We're going to go over three hot new investments that Seth Martinez and I have just vetted. We'll look at 400 properties to buy one, and we're going to talk about three properties we've found recently. One we've been working on a while that is fully funded. Another two that we're just opening up to investors now, so very exciting time for Peoples Capital Group. Let's break into how we found these buildings. What type of buildings they are. How we're going to structure them with our passive investors and how we're going to reposition them and exit our investors over time for awesome returns.
We have three buildings right now. It's costs us tons and tons in direct mail marketing. It generally costs about $20,000 in direct mail marketing and advertising to find a good deal, so here we are now with three deals. We've been investing in a lot this year. One deal is closing very soon. We actually just fully funded it. When we find these good deals, we have so many investors lined up ready to go to put them right to work. We do work on a first-come-first-served basis so the investors that are longest in queue will get served first because they've been waiting the most for a deal. Sometimes it's hard to find a deal. It might take us six months to find a good deal. Although, we do try to close on a piece of real estate every three to six months, but life isn't perfect like that. Sometimes it takes you six months to find a good one and then all of a sudden, you're closing on three at one time. That's part of the syndication business, so we're constantly juggling opportunities and investors capital and relationships with high-net-worth individuals and looking to put their capital to work effectively and quickly.
We also have to really vet a ton of opportunities and really cherry-pick the best one so you have to be patient on our end. Our investors have to be patient as well. Let's explain these deals how we found them, and how we're going to structure them with investors. The first one is an 11 unit property in Paterson New Jersey. We see a lot of opportunities there. Paterson is one of the last remaining cities where you can get a great investment opportunity. You can make some really good cash on cash returns. We've done very well on Newark through the years. Newark is still a place we invest. Inner-city areas like Paterson and Newark are areas that you can commute into Manhattan in less than an hour but you can also get a one-bedroom apartment for $1,050. Where if you can go to Jersey City or Morristown which are comfortable cities that also get you into Manhattan in about an hour. The rents going to be two to three times more and the real estate will be three to four times more. You're really paying a premium to get into those areas. Now, you do have to pick and choose where you buy in inner-city areas because there's some areas that are riddled with crime. There's other areas that are very up-and-coming, very good areas. A lot of times, the downtown areas, the areas around the train station. That's where we try to focus on where there's a lot of activity going on. Positive changes happening in the community. That's where inner-city has changed the most generally is right around the downtown area. We're buying buildings right in downtown Paterson right now, two of them actually.