Stick to Your Plan w/ Aaron Fragnito
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Episode Description
Welcome to the Freedom Point Real Estate podcast! In today's episode, Aaron Fragnito joins Jeremy Dyer to share how to invest like the wealthy.
Aaron Fragnito is the Co-founder of Peoples Capital Group. Aaron is a full time real estate investor with a primary focus on helping Accredited Investors, Family Offices and RIA's preserve their wealth in real estate. He is also the host of the New Jersey Real Estate Network (NJREN), the Passive Cash Flow Podcast and was an adjunct professor teaching Real Estate Entrepreneurship at Rowan University. Aaron has built an 8 figure Real Estate Portfolio and is a well known name throughout the New Jersey Real Estate investment industry.
CONNECT WITH AARON FRAGNITO!
Website: https://www.peoplescapitalgroup.com/
LinkedIn: https://www.linkedin.com/company/peoples-capital-group/
Facebook: https://www.facebook.com/peoplescapitalgroupnj/
Instagram: https://www.instagram.com/real_estate_investments_nj/
Podcast: https://www.youtube.com/playlist?list=PLY1bMjYoCqkSZ1VJTaaZ3QdFt6s6qDEEkPhone: 706-202-6424
CONNECT WITH JEREMY DYER!
Website: https://startingpointcapital.com/
Instagram: https://www.instagram.com/startingpointcapital/
LinkedIn: https://www.linkedin.com/in/jeremydyer
Facebook: https://www.facebook.com/startingpointcapital
Book a Call! https://calendly.com/startingpointcapital/discuss-investing-with-jeremy-dyer?month=2023-12
Summary
Tip #1: Make a Clear Plan and Stick to It
“Make a plan and stick to it. That is the best way to execute in any business, really.”
Aaron warns against constantly shifting strategies just because of hype or other people’s success. When he and his partner pivoted from multifamily to house flipping, they lost traction toward their original goal. Consistency over time builds compounding momentum. Pick your strategy, learn deeply, and stay the course unless the market demands a pivot.
Tip #2: Learn from Losses, Not Just Wins
“Man, I do not forget those losers… those lessons you learn from a loss are so much more important than what you learn from a gain.”
Success teaches, but failure engraves. Aaron recalls how bad partners and botched deals taught him lessons he still uses today. New investors should expect to fail occasionally and use those moments to refine their systems and instincts.
Tip #3: Focus on One Niche Before Expanding
“The greatest people just focus on one business plan and stick to it.”
While it’s tempting to jump into the latest trends—Airbnb, wholesaling, etc.—true growth comes from mastery. Aaron emphasizes refining your process in one area before exploring others. Avoid the shiny object syndrome and look at what the best in your space are doing—then do it better.
Tip #4: Find a Mentor—But Bring Something to the Table
“You have to be able to provide them something in return… coaching and mentorship isn’t free.”
Mentorship accelerates your learning curve and helps avoid major mistakes. But to build that relationship, you need to offer value. Whether it’s time, effort, or skills, mentorship should be a two-way street.
Tip #5: Passive Investing Isn’t Riskier—It’s Smarter
“A lot of investors say, ‘Oh, I want to avoid risk, so I’m going to keep all my money in the stock market.’”
Aaron challenges the traditional Wall Street-first mindset. Ultra-wealthy investors typically hold 60–80% of their wealth in alternative investments like real estate. Passive investing offers greater control, better returns, and massive tax advantages.
Tip #6: Don’t Overbuild Your Lifestyle
“If you make 500 grand a year, don’t build a lifestyle that costs $501,000.”
Too many high earners trap themselves with bloated expenses. Instead, Aaron suggests living well below your means and channeling the difference into passive investments. It’s not about how much you earn—it’s about how well you allocate it.
Tip #7: Underwrite Conservatively, Do Deep Due Diligence
“The word ‘no’ makes you more money than the word ‘yes’ in real estate.”
People’s Capital Group may look at 100 deals before buying one. Their underwriting process is conservative, rejecting anything that doesn’t offer strong margins or pass thorough due diligence. This protects investor capital and supports long-term portfolio growth.
Tip #8: Use Cost Segregation and Bonus Depreciation Strategically
“We frontload that tax depreciation… investors generally get about a 25% tax write-off on their investment.”
By doing cost segregation studies, Aaron’s team helps investors reduce taxable income significantly. For passive investors, this often results in a 25% paper loss in the first year—making real estate one of the most tax-advantaged asset classes available.
Tip #9: Try the “Lazy 1031” to Defer Taxes Without the Hassle
“You invest in another deal in that same calendar year… and you use the new depreciation to offset the gain from the old.”
Traditional 1031 exchanges are great—but only viable for high check sizes. The “lazy 1031” lets smaller investors defer taxes by rolling gains into another project and leveraging new depreciation. It’s a smarter way to keep more of your money compounding.
Tip #10: Passive Investing Buys Time, Freedom, and Sanity
“Being an active landlord stinks. I hate tenants, toilets, and trash.”
Aaron’s journey began with hands-on management and 3 AM maintenance calls—but he quickly realized passive investing provided the lifestyle he actually wanted. Passive investors don’t just buy real estate—they buy back their time, peace, and freedom.
