🎙 Passive Cash Flow Podcast | From Zero to Wealth Jeremy Dyer’s Real Estate Secrets
Jeremy Dyer is a successful real estate investor, author, and podcast host who transitioned from a career in tech sales to passive real estate investing. He began his real estate journey in 2012 by fixing and flipping houses with his wife and father. After having twins in 2015, he shifted his focus to passive investing as a limited partner, ultimately investing in over 40 deals. Jeremy has experienced both highly successful “grand slam” deals and significant losses, including some where he lost 100% of his money, particularly from deals he invested in at the market peak in 2021. Now, as the VP of Capital Formation at Rise48 Equity and the Founder of Starting Point Capital, he helps connect professionals with passive real estate investment opportunities and is actively acquiring new assets, believing it is a great time to buy.
📌 Don’t miss the walkthrough of an actual laundromat deal example—and how YOU can do the same.
🧠 Topics Covered:
00:00 – Wins & Losses Best and worst LP deals.
03:34 – Starting Out From sales to syndications.
07:20 – 2021 Peak Risks hidden in the hype.
11:02 – Capital Calls How good operators handle them.
15:35 – Buying Now Why today’s market is a deal.
19:40 – Adapting When to renovate or hold.
23:45 – 2015 Advice Top tips for new LPs.
27:26 – Take Action Beat analysis paralysis.
📘 About Jeremy Dyer
Jeremy Dyer is the VP of Capital Formation at Rise48 Equity and the Founder and Managing Partner of Starting Point Capital. He has experience as both an active and passive real estate investor, currently holding passive equity in over $750 million across 5,000 multifamily doors and 31 real estate deals. Jeremy helps to connect professionals with passive real estate investment opportunities through syndications and multifamily investment properties. Jeremy lives in Lake Elmo, MN, with his wife Marlene, their four children, and their dog. He enjoys coaching sports, traveling, and engaging in thought-provoking conversations.
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💼 LinkedIn/ Jeremy Dyer
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⚠️ Disclaimer:
This is not a solicitation for funds, tax advice, or legal advice. This is not intended to be, and must not be construed to be in any form or manner a solicitation of investment funds or a securities offering. Peoples Capital Group LLC is NOT a United States Securities Dealer or Broker nor U. S. Investment Adviser is a Consultant/service provider and makes no warranties or representations as to the listener or viewer. All due diligence is the responsibility of the investor.
Transcript:
00:00:00:00 – 00:00:18:22
Aaron Fragnito
As a limited partner passive investor. I’ve invested with a dozen different operators, a half a dozen different asset classes. And like you said at the beginning of the podcast episode, I’ve had deals that have been grand Slams and I’ve had deals that I’ve lost 100% of my money.
00:00:18:24 – 00:00:34:21
Jeremy Dyer
All right, ladies and gentlemen, this is Aaron Frank Nieto with the Passive Cash Flow podcast here today with an excellent host, a man that’s raised over $50 million invested in his own deals as well, one of the leaders in the space. Jeremy Dyer. How are we doing today, Jeremy?
00:00:34:24 – 00:00:38:16
Aaron Fragnito
I’m doing well. Thanks for having me on the show, Aaron. Really excited to chop it up with you.
00:00:38:21 – 00:00:58:19
Jeremy Dyer
Absolutely, my friend, I want to have you on here because, not only are you a master GP in the space, but you also have a lot of experience in the LPI space as a limited partner, investing passively, making money, losing money and everything in between. And, I think that’s a really incredible story. And I wanted to hear more about that today.
00:00:58:19 – 00:01:03:06
Jeremy Dyer
So before we get started, I wanted to just give you a little background on yourself for our listeners here.
00:01:03:07 – 00:01:30:24
Aaron Fragnito
Yeah. Of course. Happy to to do it. And thanks for that opportunity. So I spent the last two and a half decades of my life and in the tech sales space, and I was very blessed, to be cranking out those commission checks and those bonus checks to the point in which I was fortunate enough by the time I was 24 years of age, to be completely debt free, living in my dream home, you know, had the 40ft RV sitting in the driveway, had a couple of young kids, happily married.
00:01:30:24 – 00:01:56:16
Aaron Fragnito
Life was going great, right? The challenge was, is that I was maxing out my 401 K after the first quarter of every year, and then wondering what to do with the rest of the cash. Right. And of course, the financial advisor, you know, was very in tune with, well, you know, dropped some cash into this index fund. That index fund, you know, obviously I wanted to try to, you know, try my hand at finding the next Tesla, Facebook, Amazon stock and riding it to the moon type of a thing.
00:01:56:16 – 00:02:17:04
Aaron Fragnito
Right. So at that same time, my wife and I decided, you know what? Let’s diversify into real estate. I had a passion for real estate. You know, since I was younger, my wife had a knack for interior design work. My dad was a general contractor in the construction space, so we really had this team already put together. We had the GC license.
00:02:17:07 – 00:02:35:16
Aaron Fragnito
We had the, you know, the knack for interior design work. And I had the dry powder sitting on the sidelines ready to go. So we decided to start fixing and flipping houses back in in 2012. And things were going really well at that time. We have some horror stories. We have some stories where we, you know, did really well into that space.
00:02:35:16 – 00:02:54:11
Aaron Fragnito
I, I do talk about a lot of those stories, you know, in the active single family homeownership space in my book called The Fundamental Investor. For those that want to check that out, the challenge for us, however, Erin, is we rolled into 2015 and my wife and I decided to double down on kids. Okay, so if you’re reading between the lines.
00:02:54:11 – 00:03:14:11
Aaron Fragnito
Yeah, so we went from 2 to 4 reading between the lines. Numbers three and four were twins. Okay. Right. So it just got to this point in our kind of, life journey where I had to step off of one of the horses that I was writing. Okay, at that time, I was working 50 to 60 hours a week crushing that commission checks.
00:03:14:13 – 00:03:33:24
Aaron Fragnito
I was also building up a growing and scaling single family homeownership portfolio, and I was trying to be a good husband, good father. At the same time, my older boys wanted me to coach their hockey teams. You know, that’s every weekend and every, evening up here in Minnesota. It’s a Year-Round sport. So it just got to the point where, honestly, I ran out of bandwidth.
00:03:33:24 – 00:04:05:21
Aaron Fragnito
Okay, 2015 rolls around. We decided to get out of the active side. We go passive. Okay. Truth be told, I got into the passive side of a limited partner investing in real estate syndications through the shotgun approach. Okay, I held my breath. I plugged my nose. Okay, I knew I liked and I trusted the main operator. But the truth is, is that I didn’t even really know what the word syndication meant back then, other than I knew that the green Bay Packers were a syndicated football team.
00:04:05:21 – 00:04:29:02
Aaron Fragnito
That was the extent of my knowledge, right? So I got my teeth cut in the game back in 2015. That first deal did great. It was a home run deal, right? Since then. Okay. Since I got bit by the bug, I’ve now invested in over 40 different investments. As a limited partner passive investor. I’ve invested with a dozen different operators, a half a dozen different asset classes.
00:04:29:04 – 00:04:38:02
Aaron Fragnito
And like you said at the beginning of the podcast episode, I’ve had deals that have been grand Slams and I’ve had deals that I’ve lost 100% of my money.
00:04:38:04 – 00:04:59:13
Jeremy Dyer
Wow. Wow. We oh my gosh. So you just, kind of jumped in there head first. You found a good operator you like, didn’t really understand necessarily the structure of the deal or making your money work for you there, but, were those the deals that didn’t necessarily work out, or were those pretty good? And it was later in your LP investment career that you ran into some challenges?
00:04:59:19 – 00:05:24:23
Aaron Fragnito
Yeah. The challenges that I ran into were really the deals that I invested my capital into in 2021. Okay, that was the peak of the last real estate market. That was a time where everybody was making money. Everybody was speculating. Right. Back in those days. And operator could buy a deal with a value add plan, never implement any part of the value add plan and just watch cap rates compress.
00:05:25:00 – 00:05:44:10
Aaron Fragnito
And they looked like heroes, even though they didn’t actually force NOI growth through any type of renovation plan. Okay, the deals that I got into previous to that were virtually all home run deals. Okay, we’re talking about deals that I invested my capital into back in 2016 and 17, where the industry was screaming or recessions coming or recessions coming.
00:05:44:15 – 00:06:10:05
Aaron Fragnito
Well, guess what never happened? A recession. Okay, so for those investors that sat on the sidelines between 2016 and 2021, you missed out on a five year bull run. Okay. Specifically in the multifamily space. Well, now we fast forward to 2021. Everybody’s making money. Everybody’s partying in the streets. Right? That was actually the time that people should have been more disciplined and sat on the sidelines when everybody was getting greedy.
00:06:10:05 – 00:06:33:05
Aaron Fragnito
That’s the time to get fearful. We take that out of Warren Buffett’s playbook, right? So the bottom got the rug got pulled out okay. And operators that that bought deals in 2021 when the basis were significantly higher then than they are today. Right. Second to that, the operators that really struggled are the ones that purchased those deals with floating rate bridge loans.
00:06:33:05 – 00:06:58:10
Aaron Fragnito
Right. Maybe they didn’t manufacture going in interest rate cap on those deals. And we get to 2023, 2024 and those loans start to become, due. And you’ve got deals now that if they were to refinance, they refinancing at 92%, 94%. Well, you and I both know the banks aren’t going to do those deals right, right. So they’re looking for additional liquidity deals are distressed.
00:06:58:12 – 00:07:19:24
Aaron Fragnito
You know, the sponsors are trying to raise additional funds to keep the deals afloat. And a lot of operators are forced to sell. Okay. And I invested in deals like that back in 2021 that have been subject to capital calls, where the operator needs an additional 20 to 30% of additional liquidity pumped in from the existing limited partner investors to keep those deals afloat.
00:07:20:01 – 00:07:49:24
Aaron Fragnito
I choose to participate in most not all. Okay, the reason why not all is because some deals. I don’t trust that the operators going to be able to rightsize the ship, the playbook, right? I don’t feel confident that amidst the headwinds, amidst the remaining execution risk, amidst the operational risks that may exist, to exist with that sponsor, I’m not confident in their ability, okay, to get the wheels back on the tracks, okay.
00:07:50:03 – 00:08:16:15
Aaron Fragnito
And for your listeners, they fully understand this. The importance of aligning with a best in class operator like Aaron and your team, for example, versus just chasing after the flashiest pitch deck when really the operator behind the pitch deck might be two guys and a truck, right? With really no vision or playbook or experience or track record to to account for, if that makes sense.
00:08:16:17 – 00:08:37:10
Jeremy Dyer
Yeah. Yeah. Exactly. That comes down like the financials. Just like beautiful, high def, professionally done pictures. And you know, you’re like, this is just like, basically, real estate fluff. Like there’s no real essence behind this opportunity. And those guys are raising like a ton of cash though. So I, you know, it’s amazing what people look for.
00:08:37:10 – 00:08:57:03
Jeremy Dyer
And then in my pitch decks, I try to have like all these in-depth numbers, you know, maybe I overcomplicated me about over detail. It but I feel like we want to disclose, disclose, disclose. And then my pictures are like me with my cell phone at the property on a rainy day. And that’s not the way I live.
00:08:57:05 – 00:09:10:09
Jeremy Dyer
It’s not always the best way to raise capital. You got to get professional photos on a sunny day. But that’s why they make, Photoshop. You can take the clouds out and you can put a nice sun in place. That’s a good trick of the trade. But now you’re absolutely right, Jeremy. We’ve never done a cash call here.
00:09:10:09 – 00:09:30:06
Jeremy Dyer
Capital call. We’ve always tried. You know, I thought it back when rates were very historically low. You’re like, yeah, rates are going to increase. You know that’s definitely going to happen. So we assumed rates would be higher. And that of course causes prices to to lower as well. But we also invest in a very strong market here and have an in-house property management company.
00:09:30:06 – 00:09:49:02
Jeremy Dyer
So we keep tight control over assets. But, all right. So then you invest in some deals, kind of the height of the market there. You were doing really well. You were on fire with the returns. And, and that’s tough. So you have some cash, capital calls there that you did participate and others that you didn’t participate in.
00:09:49:07 – 00:10:07:22
Jeremy Dyer
And what do you see? Owners and operators often do in those scenarios? Are they selling sometimes at a total or almost, majority loss to their LP investors, or do they just hold onto it and hope for better days? What are operators doing in those situations?
00:10:07:22 – 00:10:33:15
Aaron Fragnito
Yeah, obviously there’s a lot of different, you know, levers that the operator can pull. There’s a lot of different potential outcomes in these types of scenarios. Right? I mean, I’ve invested into right deals where there’s been a total wipe out of all common equity in those deals. Right? We’re buying those deals at a 30, 30 to sometimes 40% discount from what they would have sold, you know, for just four years ago.
00:10:33:15 – 00:11:02:24
Aaron Fragnito
Right. Real estate is cyclical. Okay. We’re in a down market right now. Right? I’m a buyer. Right? I also understand the value and the importance of dollar cost averaging. Just ask your financial advisor. You know about that strategy as it relates to Wall Street investing. So there’s a lot of different outcomes that can occur. Right. But there’s also operators out there that are willing to do something in exchange for an investor participating in a cash call, right?
00:11:02:24 – 00:11:29:06
Aaron Fragnito
Or in the unlikely case that the investor loses a portion or all of the original invested capital is the operator willing to do something in exchange for that loss? Right. And there’s a number of different operators out there that, in fact, will do that to save face. Right? Because they know that how important brand equity is. So there are operators in the space that won’t just issue a cash call, okay.
00:11:29:10 – 00:11:57:07
Aaron Fragnito
It’ll be a cash call. But new invested dollars into the deal get a high return or a high yield, a current pay new invested capital is promoted to the preferred layer of the capital stack. New investor dollars comes with a corporate guarantee, right? And in some cases, some operators will say, listen, you know, we are very apologetic for what happened, which was largely, you know, in our control, out of our control, right?
00:11:57:07 – 00:12:18:12
Aaron Fragnito
As it relates to the Federal Reserve Bank aggressively increasing interest rates from early June of 21 through July of 22. Right. It caught the industry off guard. Nobody really predicted that would occur. People certainly predicted, you know, higher interest rates. But did we know that they were going to go up 550 basis points over 14 month period? Right.
00:12:18:16 – 00:12:37:22
Aaron Fragnito
So some operators will also say, listen, you know, we want to continue to grow. We want to continue to transact volume. Now’s a good time to buy. It’s not a good time to sell in terms of where we are at in the economic cycle. So in exchange for the fact that we may be, you know, had a cash call or we lost a portion of your original capital in a prior deal.
00:12:37:22 – 00:12:56:07
Aaron Fragnito
In exchange for that, we’re going to give you a better split on profits, you know, on future deals that you choose to partner with us on. And in full disclosure, I’ve been in deals like that where I’ve lost 100% of my original invested capital with an operator, but yet since then, I’ve invested in six more of the six more of their deals.
00:12:56:07 – 00:13:16:23
Aaron Fragnito
Right? Because I understand they’re a good operator. Okay. They didn’t anticipate what would happen in the debt markets, right? Just like a lot of other operators didn’t predict that. Right? And they just got caught off guard. That doesn’t make them necessarily a bad operator. They just they speculated wrong, right. But so did a lot of other people in the space today as well.
00:13:17:01 – 00:13:46:22
Aaron Fragnito
So I think it’s it’s really important for investors to understand that. Again, to your point, you’re not investing in the pitch deck. You’re not investing in the projected IRR because that’s just a projection, right? That’s not a guarantee okay. There’s going to be headwinds right. There’s going to be future black swan events. And it’s important for investors to really make sure that they’re doing the necessary and proper due diligence, you know, on the operator themselves, because it’s really the operator that you’re investing into more so than it is.
00:13:46:22 – 00:13:50:13
Aaron Fragnito
Of course, the flashy pitch deck and the business plan itself.
00:13:50:15 – 00:14:13:13
Jeremy Dyer
At People’s Capital Group, we help you invest in real estate, build your wealth by owning professionally managed apartment buildings in the northern new Jersey market. We want to show you how owning real estate is attainable, even for the busy professionals that don’t have the time or experience investing in real estate. Now, we only work with select people who are serious about building wealth.
00:14:13:17 – 00:14:43:13
Jeremy Dyer
So find out if you qualify at People’s Capital group.com. That’s great. That’s really interesting. So you had a situation with an operator where you knew he was a good operator, but didn’t really project the future properly, which none of us can do. And then you will invest in six more deals after that, which is incredible. And those deals, I assume he kind of gave you a better, position on or maybe a better share class for, you know, but not investing the larger amount necessarily, or something like that.
00:14:43:13 – 00:15:01:17
Jeremy Dyer
Right. Because I have the same thing. I have a share class for like family offices where you minimum half 1 million or $1 million investment with a higher preferred rate of return. And then I have the more retail investor share class, with generally a $50,000 minimum that has lower preferred rate of return. But I guess he could let you into the better share class for still 50 or 100,000 or something like that.
00:15:01:19 – 00:15:22:14
Jeremy Dyer
That’s really incredible. So and that’s a testament to this operator’s ability to manage your relations. Ship. Probably communicate, communicate, explain what happened, why it happened, what’s the solution? And still maintain that relationship with you where a lot of people would assume, man, you lose someone’s money in this business, you’re out of business, your reputation is shot.
00:15:22:14 – 00:15:35:00
Jeremy Dyer
But, you know, savvy investors like yourself here can say, actually, the sky knows what he’s doing. But it’s just we had a we had a bad egg here. We had a, you know, a little tough high to the market. And knowing so far that you’ve gone into.
00:15:35:01 – 00:16:14:00
Aaron Fragnito
Yeah. No you’re exactly right. And it’s important that we highlight these types of things because there’s no such thing as a completely risk free investment. You know, none of this is of course, guaranteed. But this same operator, to my money, two other deals leading up to that, right. In less than a five year hold period to the tune of a 30%, you know, IRR on those deals, the same operator by the way, has also had a few different cash out refinances on other deals that I’m in this year, because it just made sense to pull some of the equity out, you know, de-risk the deal for investors, give them a portion of their
00:16:14:00 – 00:16:39:08
Aaron Fragnito
original invested capital back, allow them to stay in the deal at the same equity level ownership as when they originally invested. Right? So I mean, again, it’s one of those things where the unfortunate sad truth to this is there are investors that ran into the fire back in 2021 when everybody was making money, they got burned and they may never come back again.
00:16:39:10 – 00:17:03:08
Aaron Fragnito
But what they don’t realize is that again, dollar cost average. Okay, I’m a big fan of diversification. I’m in 40 deals as a limited partner investor, multiple different asset classes, different geographical locations, different operators, different business plans, different debt structures. Right. I’ve invested at deals in deals at the bottom of the market cycle and the top of the market cycle.
00:17:03:12 – 00:17:26:19
Aaron Fragnito
The truth is, is that we don’t oftentimes know where we’re at in the cycle. Okay, 2016 was supposed to be the top of the market cycle, but it wasn’t. Right 2021. We were supposed to continue to see real estate values go up and to the right, but they didn’t. Right. So the question is, is, well, where are we?
00:17:26:22 – 00:17:48:02
Aaron Fragnito
Where are we right now and what do we do right now in the economic cycle? And I can tell you right now I am doubling down. Okay. I am I am, in an acquisition mode. Okay. I’m going to attack mode right now because I know if you if you zoom the lens out far enough, okay, we will go up and to the right.
00:17:48:02 – 00:18:17:20
Aaron Fragnito
And right now is a tremendous opportunity to get good cash flowing hard assets in the real estate space, with or without a value add business plan at a significantly lower basis price per door than what what people were able to get these types of assets for, you know, just four years ago. And when you have new supply falling off a cliff, okay, in certain markets in the country, that just creates more demand, more absorption.
00:18:17:22 – 00:18:36:21
Aaron Fragnito
And when you have interest rates that have largely stabilized, I don’t think anybody’s predicting that interest rates are going to increase. I think they may be at this current level for longer. Right. But we’re also not underwriting lower interest rates. You know, going forward at this time right now. And I don’t think anybody should write.
00:18:36:23 – 00:18:54:12
Jeremy Dyer
Right, exactly. Yeah, I underwrite assuming rates are going to be where they are when we go to refinance in 3 to 4 years. And I also underwrite and assuming cap rates are where they are today in 3 or 4 years, and both cap rates go down and rates go down. And we’ll be, in a really good spot on the deals were buying right now.
00:18:54:12 – 00:19:22:01
Jeremy Dyer
But I agree, real estate is on sale. You know, interest rates have remained, not historically high, but higher than they have been in the last 5 to 10 years. And, because of that, prices have, decreased, cap rates have increased. And we’re just seeing, some really great deals out there. I mean, right now I can buy brand new Class-A real estate fully leased up for, you know, 300,000 a door in Newark, new Jersey.
00:19:22:01 – 00:19:40:16
Jeremy Dyer
And I get a deal like that every couple of weeks or so, you know, and like that, if you think about it, you know, in a high demand area here in Newark, new Jersey, 30 minute commute in to Manhattan. You know, if we wanted to go build an apartment building there, it would cost about $300,000 a door to build it.
00:19:40:20 – 00:20:03:18
Jeremy Dyer
You know, and maybe even more really like 350 or so with the land and everything. So we’re pretty much buying them at the cost, the, it cost the builders to make these things. So it’s like, hey, you’re getting for a great price. Sometimes below replacement cost. I’m buying, 70, 80 units in Hackensack for $191,000 next to the, number one hospital in new Jersey.
00:20:03:20 – 00:20:19:23
Jeremy Dyer
You know, and I if I want to rebuild that, it would be like, 350 a door, you know? So you just getting out is an older class C building. But we’re going to reposition it and make it into a nice class B and, still be and do it for maybe an hour or two, 25 a door. So, so just, you know, really great opportunities out there.
00:20:20:00 – 00:20:40:01
Jeremy Dyer
Rents continue to stay strong. So it’s just like the perfect time to buy a real perfect storm. Like when I talk to investors and they say, well, I’m waiting on the sidelines. I’m waiting for interest rates to go lower and cap rates to compress. It’s like the opposite of the wise way to invest. That’s like saying, well, I’m waiting for the stock market to go sky high to buy stocks.
00:20:40:01 – 00:21:02:16
Jeremy Dyer
You know, it’s like, well, wait a minute, you’re supposed to buy low, sell high, not buy high, sell low. But so many investors have that mindset. And it’s really a shame because the savvy investors, the family offices, the ultra high net worth individuals, those are the people writing the checks today where a lot of the retail investors writing a 50,000 hundred thousand dollars check are much more cautious.
00:21:02:16 – 00:21:22:05
Jeremy Dyer
And what that tells me is now is a great time to invest, because chances are, if you have $250 million net worth and you’re willing to plunk down 5 million right now, but if you’re $1 million net worth and you’re, you know, not willing to put down 50,000, well, I’m usually follow the investment strategy of the people with the $250 million net worth.
00:21:22:05 – 00:21:40:08
Jeremy Dyer
So that’s who I’m seeing is is actively investing now. And we are out there talking to large fund to fund, you know, equity groups, family offices and larger scale investors that are eager to get on and on these discounted buildings. They used to be gone for four and a half caps. Now we’re buying them at six caps.
00:21:40:10 – 00:21:46:24
Jeremy Dyer
So it’s a no brainer to me. And you’re seeing thing in the markets that you primarily that’s like the Carolinas and Texas. Is that right.
00:21:46:24 – 00:22:21:15
Aaron Fragnito
Yeah, that’s exactly right. I mean we’re you know, predominantly you know, in Dallas and North Carolina, you know, markets like Charlotte, Greensboro, the Triangle Park area, you know, Raleigh, Durham, Chapel Hill. And I mean, in those markets, we’re still seeing, high absorption rates, right? We’re still seeing organic rent growth in those markets. And, you know, we’re we’re still, believe it or not, there’s some deals that I’ve invested into, a year ago, with 100 doors, and we’ve only renovated 1 or 2 units.
00:22:21:15 – 00:22:44:10
Aaron Fragnito
Well, why haven’t we renovated the rest of them? Well, predominantly because we’re achieving, you know, at or close to pro forma rent increases on those non renovated units. Right, right. You’re listening. Audience knows a little bit about you know, yield on cost. Right. It doesn’t make sense for us to renovate a unit that demands $150 per month, you know, rent.
00:22:44:10 – 00:23:22:02
Aaron Fragnito
Bob if in exchange for that, we’re going to have to provide tenants with concessions if they’re already willing to pay our proforma rent, rent increases in those market. So there’s a time for operators to put their foot on the gas, and there’s time for operators to pump the brakes. But that’s why it’s important to be aligned with the best in class operator that has you know, an asset management team that looks at their, you know, KPIs on a monthly basis to determine, you know, where we’re at right now in terms of where we can push, you know, NOI growth, you know, relative to the types of concessions that we may or may not have to
00:23:22:02 – 00:23:45:12
Aaron Fragnito
provide, you know, relative to, you know, where we’re at from an economic occupancy perspective or a physical occupancy perspective. So just a whole lot of different factors that go into it. And, not every operator, unfortunately, is is in tune. You know, what the types of strategies or capable, I should say, of pivoting the strategy, you know, multiple times over the course of the investment hold, period.
00:23:45:14 – 00:24:02:20
Jeremy Dyer
Right, Jeremy? So one last question for you. What would you advise to your LP investor self from 2015? Right. In that first check to where you are now over 40 LP investments later, what would your main piece of advice be to that person?
00:24:02:22 – 00:24:19:08
Aaron Fragnito
Yeah, you know, I’ve got a bunch of them, right. But I’m going to just highlight two of them, maybe three if I think of a third one, that the first one is before you ever make an investment into anything. I don’t care if that’s Wall Street or Main Street. Okay. The first investment you need to make is in yourself.
00:24:19:14 – 00:24:41:16
Aaron Fragnito
Okay. Yeah, you need to go buy a book or two on the topic. I authored a book called The Fundamental Investor. You’re welcome to check that out on Amazon. It’s a great book for people to learn about passive investing in real estate. Syndications as a limited partner investor. Okay, so educate yourself, consume podcast content, listen to Aaron’s podcast.
00:24:41:16 – 00:25:21:22
Aaron Fragnito
Great place to start, right? The Passive Cash Flow podcast, all right. So great tool here. The next thing is, once you’ve done once you’ve gotten educated okay, you gotta get over analysis paralysis or paralysis by analysis. The best way to learn about passive real estate investing is by doing it. Okay, I tell LP investors all the time, okay, you’re never going to know everything you need to know about this type of investment until you actually get started and you start to learn your way through that process.
00:25:21:24 – 00:25:46:22
Aaron Fragnito
And the truth is, is that and you’ll this will resonate with you as well. Aaron, are real estate acquisitions okay that we’re acquiring today? They are worth what somebody is willing to pay for them at the time that we sell. Do we really know what somebody is willing to pay for a property? We’re acquiring today in five years from now?
00:25:47:03 – 00:26:13:02
Aaron Fragnito
Okay. If you’ve got that crystal ball, I love it. Okay, I don’t know. You don’t know, but but we have a fiduciary responsibility to protect and preserve investor capital. We also have a tremendous amount of alignment of interest with our investors. Right. And in cases with you, you probably have a profit return. So you give those cash flows, those first cash flows to your investors before you start taking a profit.
00:26:13:04 – 00:26:34:05
Aaron Fragnito
You know, all those things are really important for people to understand that if if your investors aren’t making money, you’re not either. Right? Sure. And so it’s really important that we buy it a good basis, that we execute our business plan, that we have solid operations, that we’ve reduced execution risk as much as possible. And so those are just a couple of things that I think people should know.
00:26:34:11 – 00:26:39:13
Jeremy Dyer
I love it I love this great Jeremy. So how can people, get in touch with you and learn more about you there?
00:26:39:15 – 00:27:03:03
Aaron Fragnito
Yeah, I’m pretty active on LinkedIn, so you can go jump out to, LinkedIn under Jeremy Dyer, D.R. you’re also welcome to, check out my book, The Fundamental Investor. And again, you can find that out on Amazon. I also, host my own podcast called The Freedom Point. And Aaron was, blessed to have been a guest on my podcast a few weeks ago.
00:27:03:03 – 00:27:05:15
Aaron Fragnito
So you’re welcome to check out that episode as well.
00:27:05:17 – 00:27:26:01
Jeremy Dyer
Thank you so much, Jeremy. You’re awesome, my friends. And to our listeners, if you’re enjoying this content, Jeremy, here is a wealth of information. So Jeff, definitely check out his book and his content out there. And, but share this episode with someone who you think might gain value. Maybe, a friend or a colleague, or family member that’s thinking about getting into real estate investing.
00:27:26:01 – 00:27:57:09
Jeremy Dyer
They’re kind of on the fence. They don’t have any experience. But that’s the whole idea. As an LP investor, you don’t have to know everything. You don’t have to know exactly how the whole market works and the repositioning and what the operators strategy is. Just understanding the basics of it, building rapport with the operator, having that trust there, and understanding that the general key KPIs of the investment, and then having a plan and sticking to that plan, is important is, as Jeremy said, paralysis, by analysis is a common issue with investors.
00:27:57:09 – 00:28:16:17
Jeremy Dyer
So know what you’re investing in, know the risks and rewards. But at the end of the day, once you’re done doing your due diligence, pull the trigger, invest in real estate. It’s been great for Jeremy and I, both as LP and GP investors, and I see so many investors miss out on deals. And then, you know, years or months later they regret it.
00:28:16:17 – 00:28:32:22
Jeremy Dyer
And then they kind of over invest in the wrong deals with the wrong operators. The shiny objects. So, you know, picking a good operator stick to, maybe you have a few that you like to invest with, diversify over a number of deals and build your wealth in real estate. And of course, share this episode. Like this episode of here on YouTube.
00:28:32:22 – 00:28:50:21
Jeremy Dyer
If you’re enjoying our content, please subscribe to our podcast, The Passive Cash Flow Podcast. We come out with a new episode every two weeks here, and I’m the, co-founder of People’s Capital Group. I focus on helping people build and preserve their wealth. The new Jersey real estate here, with our own head and house property management company.
00:28:50:21 – 00:29:03:06
Jeremy Dyer
We actually have a new offering coming out. We got up to 90% subscribed already from our whisper campaign. So we’re on fire over here. So check this out. People’s capital group.com. Thank you so much, Jeremy, for coming on the show, my friend.
00:29:03:08 – 00:43:28:02
Aaron Fragnito
Yeah, thanks for having me. I really appreciate it. Aaron.
00:43:28:04 – 00:43:51:02
Jeremy Dyer
At People’s Capital Group, we help you invest in real estate. Build your wealth by owning professionally managed apartment buildings in the northern new Jersey market. We want to show you how owning real estate is attainable. Even for the busy professionals that don’t have the time or experience investing in real estate. Now, we only work with select people who are serious about building wealth.
00:43:51:06 – 00:45:21:00
Jeremy Dyer
So find out if you qualify at People’s Capital group.com.
00:45:21:02 – 00:45:44:00
Jeremy Dyer
At People’s Capital Group, we help you invest in real estate. Build your wealth by owning professionally managed apartment buildings in the northern new Jersey market. We want to show you how owning real estate is attainable. Even for the busy professionals that don’t have the time or experience investing in real estate. Now, we only work with select people who are serious about building wealth.
00:45:44:04 – 00:45:48:03
Jeremy Dyer
So find out if you qualify at People’s Capital group.com.
