The Fighter Pilot Real Estate Investor w/John Rubino
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Episode Description
Welcome to the Freedom Point Real Estate podcast! Today's guest John Rubino shares his story of going from Navy pilot to real estate investor and about his company, past investments, and current work.
John, a 20-year Navy pilot who started investing in real estate in early 2000s, started JID Investments in 2013 as a passive, private equity real estate investment company. Since 2013, they have invested in 30 development projects, with 18 going full-cycle and 12 still active - approximately $40M total invested.
CONNECT WITH JOHN RUBINO!
Website: https://jidinvestments.com/
LinkedIn: https://www.linkedin.com/in/johnarubino1975/
JID Investments LinkedIn: https://www.linkedin.com/company/jid-investments-llc/?viewAsMember=true
Youtube: https://www.youtube.com/@johnrubino2681/videos
Facebook: https://www.facebook.com/JidInvestmentsLlc/
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: Understanding Passive Real Estate Deals
"Many of our investors enjoy the long-term capital gains benefit...willing to wait to get that 12 to 18 or 20% return year every year in the form of a three-year kind of progression." John emphasizes the appeal of passive real estate deals, highlighting the benefits of long-term capital gains. Investors can enjoy steady returns while allowing their investments to grow over time.
Tip #2: Anticipating Recapture Challenges
"You've got to anticipate that coming back...Uncle Sam's going to come back once that recapture event happens." The discussion underscores the importance of anticipating recapture challenges in real estate investments. Investors need to be aware of potential tax implications when exiting or refinancing a deal to avoid unexpected financial burdens.
Tip #3: Diversifying Investment Strategies
"Putting the right people around you...educating yourself...there's so much information right now...pick something you like and go with that." John stresses the significance of diversifying investment strategies and building a strong support network. By educating oneself and exploring various investment avenues, investors can mitigate risks and maximize opportunities in the real estate market.
Tip #4: Building a Knowledgeable Team
"You've got to find your team...putting the right people around you...making sure that you've got what you need." The importance of assembling a knowledgeable team is highlighted, including professionals like accountants and business attorneys. Having the right support network enables investors to make informed decisions and navigate complex real estate transactions effectively.
Tip #5: Conducting Thorough Due Diligence
"Make sure you crush your teas and dot your eyes because they come back to bite you." John emphasizes the necessity of thorough due diligence in real estate investments. Investors should meticulously review property details, market data, and financial projections to mitigate risks and ensure successful outcomes.
Tip #6: Learning from Investment Experiences
"The good news is we made money on it even though we had all those challenges...make sure you crush your teas and dot your eyes because they come back to bite you." John shares valuable lessons learned from investment experiences, including overcoming challenges and maintaining diligence. Learning from both successes and setbacks helps investors refine their strategies and make informed decisions in future investments.
Tip #7: Evaluating Market Trends
"It's been a challenge over the last three to four years with COVID and the impacts from COVID and then inflation and now the rates." The discussion highlights the importance of evaluating market trends and economic factors influencing real estate investments. Investors need to stay informed about changes in interest rates, inflation, and market dynamics to make strategic investment decisions.
Tip #8: Assessing Exit Strategies
"We always have it as an option...we're never going to say to our investors...that now we're going to stay in long." John discusses the importance of assessing various exit strategies in real estate investments. Investors should consider factors like market conditions, project performance, and investor preferences to determine the most suitable exit strategy for each deal.
Tip #9: Leveraging Educational Resources
"There's so much information right now...pick something you like and go with that." The significance of leveraging educational resources, such as books, podcasts, and investment clubs, is emphasized. Continuous learning enables investors to stay updated on industry trends, refine their strategies, and expand their investment knowledge.
Tip #10: Establishing Investment Goals
"We're going to manage our active deals...look at anything...second quarter this year." John discusses the importance of establishing clear investment goals and timelines. By setting specific objectives and timelines, investors can focus their efforts, track progress, and make informed decisions aligned with their financial objectives.
