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Why should you invest in Paterson NJ?

Updated: Jul 4, 2020


Paterson NJ is a prime spot for a real estate investment, find out why on the Passive Cash Flow Podcast. The owners of PCG have built a $10M portfolio by investing in inner city NJ markets. Learn how in this episode. The Passive Cash Flow Podcast is for beginner or experienced investors. Learn how you can diversify out of the stock market, own a part of an apartment building & start earning Passive Cash Flow! 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/

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Aaron Fragnito: All right, ladies and gentlemen. Welcome back to the Passive Cashflow Podcast, episode number 12. Today, we're going to talk about why invest in Paterson, New Jersey. Mr. Martinez, my business partner and I, have been very ambitious on Paterson, New Jersey. We've invested there now for years. We're really putting a lot more capital in that city. We see a lot more momentum and the numbers speak for themselves. We're going to go over that today. For about 15 minutes, we're going to talk about the market there, some cool developments that are coming in, some really interesting changes in the Paterson market, specifically here in Paterson, New Jersey. We're located in Berkeley Heights, New Jersey, of course. If you want to learn more about how to get invested passively in New Jersey apartment buildings, go to peoplescapitalgroup.com where you can input your information. Maybe come to one of our seminars, our webinars. Of course, just set up a time. You can learn more about our upcoming opportunities here at Peoples Capital Group, but let's jump into it here with Paterson, New Jersey. Simple numbers here on zillow.com, which is wealth of information. These days, the internet, you could really just find out so much about a property from the comfort of your home. About 6.8% is the estimated groawth for the upcoming year here on zillow.com, so that's a good sign. In the last year, there's an 11.3% increase in home values in Paterson, New Jersey. The property values are increasing last year by 11.3%, which is phenomenal. Much higher than the industry average, the country average. Also, the projections for next year are good as well. Now, we do buy apartment buildings in Paterson, New Jersey. Home values are not a direct reflection of apartment building values, but they really, really do impact because, of course, the more expensive it is to live in an area, [clears throat] the more expensive it is to rent in an area generally, right? As home values increase, as does rent. Those numbers also speak for themselves. Some of the general numbers are in the New York City metropolitan area, which Paterson is in. All the cities right around New York City that get you into Manhattan where a lot of people live because most people who work at Manhattan don't live there. They actually commute there. These areas, a huge demand. Paterson is really one of the cheapest, most affordable places to live if you're commuting into Manhattan. Forget about the boroughs, Bronx, Brooklyn. Those are so expensive right now. You get such a small space for your money. Even in Hoboken and Jersey City, those are cities that have really flourished. At this point, those values are so much higher than Paterson. It's so much more expensive to rent there or buy there or live there that people are moving into Newark. Newark had a boom. Newark, New Jersey, yes, there's a lot of crime there and the schools have challenges. The famous Mark Zuckerberg put $100 million into the Newark schools. Unfortunately, about 75% of it was sucked up by bureaucrats and fees and it really didn't have the impact we all hoped it would, but we do think philanthropists like that. Unfortunately, I think a lot of the gridlock in Newark with the government officials caused those schools to not improve enough, but Newark has seen a boom. We've invested in Newark for years. We really have done very well in downtown Newark. Rutgers area, that's been a great place to park our capital and just watch our investments grow over time. The demand in Newark and around the universities in Newark is great. That change is really taking place there. The next thing to change in our opinion is Paterson. You can already see it happening. The numbers speak for themselves. Home values are really growing very quickly there. Listen, there's certain statistics. The schools aren't great, right? There's high crime. I get that. It's in an inner-city area. There's areas of Paterson that are dangerous. You don't want to invest there and you have to understand that about every city. You want to recognize there's areas where there's a lot of redevelopment. The city's very bullish on redevelopment. Generally, the downtown areas near the parks. Same thing is going on in Paterson that you saw in Newark over the last 10 years. There's a lot of investment coming into the downtown area. There's nicer housing coming in. There's fancy condos and apartments coming in with swimming pools. Right now in downtown Paterson, they are developing a 10-story, 206-unit apartment building here with swimming pools. This is going to be right in downtown Paterson. Awesome location. We're actually looking at a property around the corner on Straight Street. We are really bullish on this area. There's a lot of developers putting a ton of money into the area as well. The old armory in Paterson. Paterson really has a lot of history. It's a very interesting little city with the Great Falls there and everything. Very beautiful city with a ton of potential. It's really being tapped into right now. With that armory, you have an old armory right near around downtown Paterson. We're buying an 11-unit right around the corner from this building. There's been a proposal. It looks like it's going to be approved here for a number of apartments right at the old armory. Unfortunately, the building has to be knocked down. It's an old beat-up building there, so it's not safe to be used to transform into apartments. A new building will be built there and the condos will be higher-level earning higher rents than what we're charging. What we do is we buy buildings around these big fancy developments because we know that these developers put a ton of money into research. So do we, but they put even more the amount of research and due diligence that development companies go into to research an area before they put all that capital into it. Because a lot of these big developments, it's institutionalized the money. These are hedge funds. These are family offices. These are savvy investors that are putting their capital into safe markets where they see growth. They see this as a more affordable option, a cheaper place. It's a cheaper thing on the shelf, right? If you're a real estate investor and you're looking at New Jersey here, you're looking at the New York City metropolitan market, you're looking at the boroughs, you're looking at Long Island, you're looking at Newark, you're looking at Hoboken. At the end of the day, Newark's a great investment and Paterson's a great investment right now for cash flow and for growth. Hoboken is very saturated. Jersey City has a ton of activity. Still very bullish on Jersey City, but you kind of missed the boat on Jersey City. At this point, it's such a high-priced ci