Real estate is more than just property, it affects the entire economy. Not only can responsible land lords have a positive impact on their community, but the fruits of our labor can be used for incredible good!
Find out how today on the Passive Cash Flow Podcast. 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!
Aaron Fragnito: All right ladies and gentlemen, welcome back to the Passive Cash Flow Podcast episode number 11 here. We’re going to talk about the social impact of real estate investing. It’s very important these days for companies to be socially aware, environmentally aware. The corporate America is changing its way. It’s not just about how much money you make for your shareholders and your investors anymore, that’s obviously very important to us operators and entrepreneurs.
But what’s even more important today do a lot of investors, well, besides making a good return of course, is making sure you have a positive social impact on the world around you, on your local neighborhood, on your country, on your world, on your environment. Here at PCG we try to work that into our day to day model and we’re going to break into how we have a positive social impact on our neighborhood and our country and our world. We’re going to see how real estate investing does that, how important it is. Actually real estate is such a big asset class, it’s the biggest thing we spend our money on, it’s the biggest asset class around us.
It’s so important that real estate operators are socially and environmentally aware. We’re going to talk about how we could do that. Guys, you want to learn more how you can participate in an upcoming investment with People’s Capital Group, go to peoplescapitalgroup.com to learn more. We buy a new apartment building almost every three to four months with passive investors here all over the country, but we focus on New Jersey apartment buildings.
Let’s talk about some of the things we do. We buy a building, we’re often buying buildings that are mismanaged. These buildings for whatever reason they become managed by slumlords really and the landlords are not taking care of the buildings the right way, they’re not responding to the tenants calls, they’re not keeping the area clean and safe. Because of that you have all different types of people moving in, some people selling drugs, causing problems, cops called to the area, and this causes a rough environment where families don’t want to live and families don’t feel safe.
Then more bad apples move in and before you know it, the neighborhood has lots of drug dealers and lots of issues. Now, we try to buy buildings that are mismanaged, not so much that they’re destroyed but they are little mismanaged and we could take them and improve the management, make them safe environments, clean environment, smell nice, be happy living there, be proud to live there and bring back a pride of ownership to these tenants. I know they’re renting but you want a pride of ownership when you live in your apartment building when you bring your friends over, when you show your building.
That’s important when you’re living in a building, to be proud of that building even as a renter. We make sure that people are happy and safe in their homes their, in their apartments that we buy. Because of that we improve the values, we improve the neighborhood, we improve the crime there, there’s less people selling drugs, there’s less crime, there’s less theft, there’s less even murder.
If you improve neighborhoods, you can start to change the amount of crime that’s in the neighborhood just by making it a more desirable place to live, and that includes better management and improvements physical, improvements in the building, financial investment in the building to make that a better building. As you’re building improves, buildings around you ideally improve as well. Not only do we improve neighborhoods and make them safer to live in but we also try to create jobs while doing this.
I’ve been told for every house you sell, you create half a job, I think it is. Every two houses you create a job or and maybe it’s even more than that but we work with mortgage brokers and realtors and home inspectors and we have contractors, we have guys that clean the buildings. We have everyone from A to Z that we work with and we spend a lot of money on all these services, we buy tons of products and wood and doorknobs and toilets and we’re always investing in local harbor stores, we try to work with local contractors as well.
As well a lot of our contractors actually live in those cities, they hire day laborers in those cities, they hire people looking for work in those cities. People that when you go to Home Depot that need work. Sometimes we can help those people out and give them work for the day and give them fair pay. That’s something, that’s a benefit to treat those day laborers in the right way, treat people looking for work, getting started in this country.
Just trying to make some money, help them with the American dream, help them make some money every day with their hard work, feel good about themselves by the end of the day, get a nice decent pay, know they’re working for a company that’s going to pay them okay. We have subcontractors that may hire a day laborer. It’s important that we everyone all up and down the spectrum. We also work with very established development companies and builders who have of course large payrolls as well.
Here we have Lena doing the property management, we have Seth also, we have tons of independent contractors we work with. We really do hire a lot of people, we create jobs, we move money through the market, we buy products and tons of services to run our business and manage our buildings. Because of that we help move the world’s economy. Real estate is a huge asset class, it is a huge part of our economy. You saw in 2008 when real estate dropped out, it sparked a recession that’s because real estate is extremely important to our economy and it creates a ton of jobs.
As we buy apartment buildings here every three to four months, and if you want to learn how you can get invest into that go to peoplescapitalgroup.com. As we buy apartment buildings, we create jobs every single time as we improve them and invest capital into them. Also let’s talk about some of the things we do with that capital we make here at People’s Capital Group. When we are successful in buying buildings and making cash flow on them for our investors, we make cash flow as well.
When we refinance the buildings and make a big lump sum of cash, we make cash as well. When our investors make money, we make money, our investors give back to the economy around them and so do we here at People’s Capital Group. We also flip houses and wholesale houses, which is very lucrative also. We’re a member of three different Rotary clubs here, we participate with the Westfield Rotary Club, the summit Rotary Club and the Scotch Plains Fanwood Rotary Club.
We invest in tons of different things they’re doing here locally just to help out the schools and YMCA and different companies and groups and different ways to help improve your local neighborhood. There’s so many different little things the Rotary Club does and we like to participate with a lot of them. Some examples are mission clean water.
We’ve sponsored and donated to Mission Clean Water to help bring water to impoverished areas of Africa where they don’t have clean water and they have to travel miles and miles through dangerous areas where there’s rape two women and there’s terrible things that happen to people going to get the water, that’s dirty water, they get sick. Clean water is so, so, so important to these impoverished areas of Africa and we help by donating to Mission Clean Water. If you want to learn more about how you can participate in these nonprofits, contact us.
Go to our website peoplescapitalgroup.com or go to Google Mission Clean Water, you should be able to find them there as well. We really like to participate with that, that’s a great nonprofit and there’s other nonprofits that also bring clean water to Africa, so we like getting behind that cause. I personally donate to World Vision, which is very active with that and Compassion International also.
We also like to participate with pedals for progress, that’s a nonprofit that brings bicycles to impoverished areas of Africa and other third-world countries as well and it helps people that can’t go more than five miles. If they don’t have a bike, there are limits for where they can work, how many job opportunities they can find. By having a bicycle, it opens up a ton of job opportunities by being able to ride 15 miles to work or so each day, I know it’s crazy.
Imagine bicycling 15 miles to work but in impoverished areas, that’s a great opportunity to then have a bicycle or a sewing machine. It’s called pedals to progress. We donate to that, we help to facilitate that event recently here in Westfield where we moved over a hundred bicycles to impoverished areas of the world and we help people that do not have bicycles or sewing machines, now they have bicycles which open up opportunities for them to work all over neighboring villages. Also sewing machines open opportunities for them to start their own business as well and be entrepreneurs themselves.
Not only do we try to improve our buildings and improve our neighborhoods, we also try to use those earnings and give back through Rotary clubs and different nonprofits. World Vision, Compassion International, those are great sites and nonprofits as well there to help sponsor children in third-world countries. Really awesome opportunities there to give as successful capitalists you want to take. I personally take 10% of what I earn, I try to give it back and donate some of that to my church, some of that to World Vision, some of that to Compassion International.
Then PCG, People’s Capital Group also donates to those nonprofits I just mentioned there. It’s good to give back and is important to get back and we encourage our investors to do the same thing. The third thing we do is we try to be aware of our environment. We do try to buy energy-efficient appliances. Part of our value add strategy is to put solar panels on the roofs and in a number years as we execute our first level value-add, our second level of value-add, our five to 10 years strategy, often include solar panels or at least seriously looking into that opportunity there.
By having energy efficient appliances, energy efficient real estate and putting solar panels on your roofs and things like that, one of the biggest energy drains is housing, heating and cooling and everything, the power at your home. We can create more energy-efficient real estate, utilize more energy-efficient appliances, that really helps keep our costs low on energy but also save the world, save the environment, less greenhouse gases and also burn less energy.
With the solar panels, we can become our own solar company and start taking all that free energy we have everyday as the sun rises and utilize that to run our building and even give energy back to the power grid if you have enough solar panels going. If you have land you can install solar panels that way as well, it’s a whole different project. We try to be very energy efficient, energy-minded even down from not printing emails and things like that.
No matter what you think, you always want to limit the pollution and try to have a good green building that doesn’t use a lot of energy. That’s stuff definitely something to help you save money as a landlord, help saves your tenants’ money because your tenants are often paying the energy bill, the gas, and electric bills, so by getting them energy-efficient appliances, they’re happy as well. It’s really a great strategy to try to enforce a green mindset when buying buildings and renovating buildings and managing buildings.
Not only will it help our environment, which we’ll have to share, but it’ll keep your costs low for you and your tenants. Guys, that’s how PCG tries to give back. Again, go to peoplescapitalgroup.com if you want to learn more about how you can participate in some of these nonprofits, we just said, how you can maybe come to some of the rotary events. Rotary is a great club. Rotary is all over the world as Rotary International. Wherever you live, there’s probably a local rotary no more than 15 minutes from you. You can go to those meetings.
A lot of them meet every single week. If there’s not a rotary group in your area, look into starting one. Look into Rotary International. It’s an amazing group, nonprofit. It’s been around for over 100 years, really special stuff. Not only the people I meet there are great but the things we do with our local neighborhood throughout the world, Rotary International essentially stopped polio. It’s incredible. It cure polio. It’s really, really impressive stuff. Check out rotary. Check out these nonprofits. Have a green mindset when you’re doing your buildings.
No matter that you’re left or right, it doesn’t matter. We try to keep our pollution low. We try to be energy-efficient here at Peoples Capital Group. At the end of the day, giving back and taking care of your community, taking care of your neighborhood, being a good mindful landlord, treating your investors right, treating your tenants right, you’re going to have a better building, and a better building means more income. If you make more income, you can give back more to those nonprofits and people all over the world that need it more than me and you.
This is Peoples Capital Group here. This is podcast number 11. This is the Passive Cash Flow Podcast. We buy apartment buildings every three or four months. We work with tons of passive investors. Those investors get cash flow. They get tax benefits. They don’t have to do anything. They get a big lump sum of cash at the refinance table every four to five years. It’s a great way to get passively invested in apartment buildings, start making some really solid returns every single quarter, pay less taxes to the taxman, and make more money.
If you want to learn about how you can get participate in one of our buildings coming up, go to peoplescapitalgroup.com. You can check it out, put your information, and maybe come to one of our seminars. We have four seminars a month here in Berkeley Heights. We have webinars as well. Check out our meetup group, New Jersey Real Estate Network and go to peoplescapitalgroup.com. See if you qualify for one of our upcoming investments. Have a good day.