I’m sorry, did you say Sunset Avenue or Gun-set Avenue? Aaron Fragnito, founder of Peoples Capital Group and successful real estate investor, gives us the nitty-gritty truth about being a landlord. Tune in as he shares about his greatest challenges, biggest shocks, and most valuable lessons that have shaped the way he runs his business today.
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Time Stamped Show Notes:
- 00:45 – Introducing Aaron, a real estate investor
- 01:30 – On being a landlord
- 01:45 – It’s not as easy as you’d think; Section 8 annual inspections, the neighborhood, and difficult tenants can make it hard to get an income from the property
- 03:15 – You need to pick and choose your tenants to fit what you want
- 03:45 – What he looks for in a tenant and why
- 04:00 – Credit checks and checks on evictions are a good place to start; interview them, see how they speak, and notice how they take care of their car
- 05:22 – He had a bad experience with a tenant who didn’t take care of the property; he visited and it looked like a third-world country, they were living so poorly
- 06:50 – His property manager walks through each unit every 6-8 months now
- 07:47 – They ended up selling the building; they were unable to evict the tenants
- 12:20 – On vetting your tenants and using property managers
- 12:42 – If you interview your tenants well, you’ll profit more and have a better experience as a landlord
- 13:25 – His partner does a 30-second walk-through of their current home as part of the interview process
- 14:00 – Aaron’s piece of advice: Diversify
- 14:38 – They buy an apartment building every quarter and have tons of syndications; they’ve cracked the code to profit in their area
- 15:20 – Get out there, meet people, ask questions, and connect
- 16:45 – How to contact Aaron: peoplescapitalgroup.com
3 Key Points
- Being a landlord isn’t always as easy as it seems.
- Vet your tenants!
- Connect with others to learn, partner, and connect.