WS648: Investor Onboarding Process To Raise Over $21 Million with John Rubino

Finding and bringing on new investors, managing the process of accreditation, and building on those relationships to help scale your business can become a challenging topic, for new careers and old. Joining us today is return guest, John Rubino. John is the COO, founder, and co-managing partner of JID Investments LLC. In today’s episode, we’ll discuss the investor onboarding process and tips for success in this critical stage.

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JID Investments is a real estate private money and equity investment firm, which seeks to secure high yield returns with medium risk by providing investment capital, the individuals, and businesses with viable residential, commercial, and mixed-use real estate business and investment opportunities. In today’s episode, we hear some great advice on the investor onboarding process, how to get investors to make referrals, the concept of preferred equity providers, opportunity zone investments, and more from a true syndication business expert. Stay tuned as we dive into a great conversation with John Rubino.

Key Points From This Episode:

  • John gives us an update of what’s happened since being on the show previously.
  • How John met some of his key relationships that helped scale his business.
  • John shares more about JID’s investors and what investing entails.
  • The process to become an accredited investor for JID Investments.
  • The majority of their investments are 506(b) offerings and why.
  • John talks more about their initial investor questionnaire form and process.
  • The process behind John’s investors making referrals.
  • John explains the meaning behind a preferred equity provider.
  • John elaborates on the investor onboarding process
  • We learn more about what an opportunity zone investment is.
  • The importance of having a cautious eye on the market.
  • A way John has recently improved his business that you can apply to yours.
  • John shares his current best source of meeting new investors.
  • The number one thing that has contributed to John’s success.
  • How John likes to give back.

[bctt tweet=”Being a business person in general. I think you always have to look at your relationship with what value do I bring, how can I help the person, the group, the business, the people, whoever I’m trying to work with, I know our network with. That’s the first thing is the value I bring. — @jid_investments” username=”whitney_sewell”]

Links Mentioned in Today’s Episode:

John Rubino on LinkedIn

John Rubino on Twitter

John Rubino on Instagram

John Rubino on Youtube

JID Investments

John Rubino on E-mail

About John Rubino

As COO, Founder & Co-Managing Partner, John’s primary responsibilities include executing daily operations, including marketing and advertisement, website and social media design, investor and client relationship, extensive due diligence, review of all prospective investor and business clients, financial and revenue analysis and securing of investment source for project funding resulting in investments of over 21 and a quarter-million dollars plus revenue.

In 1997, John graduated from SUNY Maritime College with a Bachelor of Science degree in Business Administration, a 3rd-Mates License in the U.S. Merchant Marine, and received a commission as a U.S. naval officer. He served honorably as a Lieutenant Commander and Naval Aviator for 20 years. In 2008 he received his Master of Science from Embry-Riddle Aeronautical University. In addition to his career as a Navy Pilot, John has had significant experience and success as real estate investor and consultant. John has also participated as a panelist and/or keynote speaker at several real estate investment conferences, workshops and events and has also been interviewed by over dozens of Real Estate Podcasts. John is a dedicated member of his community serving as a Knight of Columbus, and as a youth baseball and football coach. John is married (Stacie) and has four children.

Full Transcript

Explore tips on the investor onboarding process, how to get investors to make referrals, preferred equity providers, opportunity zone investments, and more.

[INTRODUCTION]

[00:00:00] ANNOUNCER: Welcome to The Real Estate Syndication Show. Whether you are a seasoned investor or building a new real estate business, this is the show for you. Whitney Sewell talks to top experts in the business. Our goal is to help you master real estate syndication.

And now your host, Whitney Sewell.

[INTERVIEW]

[0:00:24.4] WS: This is y our daily Real Estate Syndication Show. I’m your host Whitney Sewell. Today, our guest is John Rubino, thanks for being on the show again John.

[0:00:33.2] JR: Thanks Whitney, great to be back.

[0:00:34.9] WS: Glad to have you back on the show. John is a returning guest, I would encourage you to look his previous episode up and you’re going to learn a lot about him. He’s had some great success in this business, he’s been doing some big things so I encourage you just to reach out to him which I’m sure he’ll tell you how to do that a little bit but a little more about him in case you haven’t heard of him before. He’s the COO and founder and co-managing partner of JID Investments LLC. JIDI , a real estate private money and equity investment firm which seeks to secure high yield returns with medium risk by providing investment capital, the individuals and businesses with viable residential, commercial and mixed use real estate business and investment opportunities.

John’s primary responsibilities include executing daily operations, including marketing and advertisement, website and social media design, investor and client relationship, extensive due diligence, review of all perspective investor and business clients, financial and revenue analysis and securing of investment source for project funding resulting in investments of over 21 and a quarter million dollars plus revenue of growth exceeding 15.9 million for the company, congratulations John.

JIDI investments has over 14 and a half million invested and/or committed on six current projects, three in Washington DC, combined in North Carolina, South Carolina, hold opportunity and two in Atlanta. John is doing big things and so I hope you are listening closely because I’m looking forward to learning more about how he has done this, how he’s grown this business to this scale. Just managing that many investments, that many investors, you don’t do that by sitting on your hands or not being professional or not doing this quality work. John, welcome back to the show, looking ford to getting into this, any updates you want to provide us?

I know lots happened probably since the last time you were on the show, it’s been a good while but congratulations again. Why don’t you give us some updates on what’s happening and let’s jump into some specific things you’ve done to grow like this and how you scaled your business, what 22 projects and 21 plus million invested or over a hundred active investors, I mean, that’s where a lot of the listeners are trying to get to, right? Give us an update though before we get there.

[0:02:41.9] JR: Yeah, it’s been a great ride, thanks again for having me back, it’s an honor to be here, I enjoyed our first time together and I think I went into more detail from my background and how I got started on the navy, being a 20 year navy veteran as a pilot and transitioning over to the business full time in 2017, after starting it part time in 2013.

A lot of that was great information and I share in the first episode. I think we need to get into what’s happened since then and we’ve had a lot that’s happened since then. We’ve really grown the business, we’ve gone out and been more active in our community, been more active in the investment worlds for both funding partners that want to work with us and people that need capital and equity on their projects.

As well as bringing on new investors that are passive in nature, that want to participate and work with us and partner with us as part of our projects and are available anytime to come in and see the great deals that we bring forward, that we approve for finance. We brought on some consultants, we have a due diligence consultant now that works with us who does a lot of our due diligence and analysis, demographics reviews —

Looking at one of the performance and the offering memorandum, that’s a huge asset to have for our team. And we’re starting to bring on people now that can help us with introductions to new investors, people that are in their network, people that they know would be benefited by just knowing us and sharing and seeing what we do. So, a lot’s been happening and the projects really have grown in scale as well where we’re doing well over millions of dollars worth of project investments, we were finishing up some very large scale projects that have been four, five, six years in the making.

But COVID has definitely made things a little challenging, extending timelines a bit but at the same time, we’re navigating the seas and we’re working hard to get to the finish line on a lot of these active deals and we’re still growing the business. Again, it goes back to managing what’s on your plate, making sure things finish as best as can, to your projections and the returns and the timelines.

Making sure that the overall project is a success for our sponsors, for company, and for investors. And then, looking at new business, what’s coming in and keeping a cautious eye given the environment right now which I’m sure we’ll talk a little bit more about but we have not had any problems with new projects. People that are looking for funding, new partners that want to join us, giving the value we can add to them and their companies.

We’re doing a lot of reviews of these new companies which is just exciting and these aren’t companies I’m going out and looking for. They’re coming to us. That speaks to the success we’ve had, the performance we’ve had, the proof of concept we’ve had, and on the investment side, our investors who have been with us since day one are introducing us to new investors. So, organically, we’re growing inside the business where we’re getting a new investor base, we’re 140 investors right now, I think the last time I spoke to you, we were just over a hundred, and growing real well and comfortably and not at a pace that makes us kind of get anxious or concerned or nervous. But doing it at a really nice pace.

That’s big picture and it’s been an exciting ride.

[0:05:52.4] WS: Nice, well, I appreciate that update. There’s numerous things there I just want to discuss a little as we go along. But I think it’s going to fit well into just what we’re talking about today. You know, I know you contribute a large part of your growth and the way you’ve scaled too, just to the power of relationships. Can you elaborate on that and maybe discuss a few of those, maybe key relationships, you don’t have to name anybody by name obviously but let’s talk about, well, how did you meet that individual or did you seek them out and what was their role or how did they help you to scale your business and what did that relationship look like a little bit?

[0:06:22.5] JR: Well, just being a business person in general. I think you always have to look at our relationship with what value do I bring, how can I help the person, the group, the business, the people, whoever I’m trying to work with, I know our network with. That’s the first thing is the value I bring. The second thing is, is there a direct or indirect connection?

Direct being hey, we could do business together. Actively, directly to our wants of efforts, our lines of business and that’s a person that obviously, there’s a lot of work we can do together, from what I bring to the table and with that individual or business brings to the table. Or is it an indirect where I mean, I may not be able to help that partner soon or they may not be able to help me but they have three to five other people in their network they can introduce me to and/or, I can do the same. My philosophy is, I want to do two times more from what I can give than what I can get.

And the reason why is that’s just who I am. I like to be able to help people, I’m a good connector, I enjoy putting people together and I’ve seen things come to fruition, and a lot of times I look at that and hey, that’s great for those two people and if it works out well and they can do business together then maybe they can open a door for me or maybe they can recognize the value I’m brought to that interaction, that introduction.

Those are two key things and I’d also say that I’m very transparent with my business. I am willing to share all the secrets of what we do which really is just really straight forward and it’s open to the public. They can see what we do, they can review our documents, they can go through our business perspectives, they can look at our newsletters, our pitch decks, this is all available to the general public and then on the investor side, we want to make sure that our investors are comfortable with us, our process, how we’ve done, how we performed, before they even sign up to join us as investors and by doing that, it shows them that I am dedicated and I am willing to do whatever it takes to win over their trust.

Win over their desire to be part of what we do and at the same time, when they join us as an investor, there’s never a dollar that they have to give to us to be an investor. They’re just onboard to see what we’re doing and they have to sign some nondisclosure agreements because, as you know, there’s very sensitive information in the projects that we fund and we want to make sure that there’s a level of disclosure between our sponsors and our investors.

That’s really the major reason why we want folks to sign up with us to be able to see what we do but at the same time, transparency is very important, the more you’re willing to share with folks, the more you’re willing to take time to spend with them. I’ve had meetings maybe 10 meetings with investors that have joined me to make them feel comfortable,  to take them out to project sites, to make them feel like we really are concerned with their interests and to make sure that they’re covered and that they have everything they need to start with us.

And then, when the projects come to fruition and we start bringing them forward for investment, we’re always available. We always answer our phones, we go through that, we provide the details and we make ourselves always available to our investors to answer this question.

[0:09:29.6] WS: Nice, you mentioned around 140 investors. How do you I guess, have that numbers, are those active investors, are those people who have worked with you on some project?

[0:09:40.2] JR: Those are investors that have signed up to become JID investment investors who see our information on our website at jidinvestments.com, they go to our overview page of the website, they have the five key documents, they’ve reviewed those, they’ve contacted me, we’ve done some meetings and/or they’ve gone right to our investment services pages under our services tab and they signed up via our credited investor questionnaire. At that point, we verify, we do some, — they do some self verification of their creditor investor status.

They sign a disclosure, they go through all the information and once I approved that, they are now on our investor database lists. At that point, I have their contact information and I can share with them all incoming projects that we review that are in our pipeline for funding.

[0:10:26.9] WS: Talk about that just a little bit or about when they can go on the website, they fill  out the self-accreditation document, is that something that you’ll do then and then you don’t have to do in the future or let’s say, as you have a specific deal, do they have to do it again or does that take care of it?

[0:10:42.5] JR: That’s a great question. Our process has changed a bit since the last time you and I spoke, our creditor investor questionnaire allows an individual self-accrediting. They can go in and they could fill out the paperwork and say, I am an accredited investor as an individual through net worth as you know, or, income, or an entity, I’m a self-directed IRA and a corporation of partnership.

However, they qualify as an accredited investor and once they fill out that paperwork, that gets them on our list and we have a specific deal that they want to invest in, then we will have them actually provide the verification and that can be done through a third party verification company, their CPA, their attorney, their broker or they can send us over their financials, we’ll review that and make sure that everything is aligned well and then that will allow them to then invest on a specific opportunity.

So, we allow them to do that once they want to come in and actually invest money with us on a specific project. As you know, each of our projects are setup as separate entities, we’re not a fund. So, anytime we have a project, that goes out as a specific individual project that the investors will invest on. They’re all treated separately, which is great.

[0:11:52.6] WS: Are all  your investments or your projects 506(c)’s offerings?

[0:11:56.0] JR: The majority actually are 506(b). That’s another great reason why we want to bring people onboard first so that they’re onboard with us, they’ve been brought on board and now they are part of our network of investors, our investors. So that we can then share project information and again, verify that AI status. Now, the SCC gives you very broad guidance here on that and they say that you know, you can’t generally solicit to a pool of non-accredited investors. However, those people will not be generally solicited as the open public.

They are JID investors. They have a connection to us, there I s engagement, there is a relationship. We can then share this 506(b)’s. Again, there is processes on our creditor investor questionnaire that they can review. I didn’t know this. A net worth individual who is accredited has to accredit every three months in order to get that accredited investor status whereas if they’re doing it for income, it’s every 12 months. I don’t know if your listeners knew that but every three months, if you’re verifying your accreditor investor status to participate in a B or C, it has to be done every three months whereas for income, it’s every 12 months.

[0:13:08.2] WS: I did not know that.

[0:13:09.3] JR: Yeah, you learn something new every day.

[0:13:11.2] WS: Wow, I’m glad you brought that up. I’m sure –

[0:13:13.8] JR: That’s in our paperwork too.

[0:13:15.2] WS: Interesting. So, that means, if they do fill out that initial one, there’s a chance that numerous, they’re going to fill that out again if they do the investments say six months later with you, that’s when –

[0:13:24.8] JR: If it’s net worth.

[0:13:25.6] WS: Right, are you working with accredited investors only?

[0:13:29.4] JR: No, we do have a pool of qualified investors that are non-accredited, those are close friends and family those are people we had engagement with, we have a relationship with. Someone from California who calls me up and says hey, I saw your website, I love what you do, I’d like to invest but I’m not an accredited investor, we can’t invest with that individual, or that business. But if it’s someone local to my area, someone that comes in, I get to meet, I grow great relationship with.

I understand that they’re not investing their mortgage through their kid’s college funds. That they’re investing capital that’s available and they’re sophisticated, and they have an understanding of the risk, then those individuals can fill our qualified investor disclosure and as long as you know probably this, on a 506(b), you don’t have more than 35 non-accredited investors, you’re okay to have them participate in a B.

[0:14:17.0] WS: Right, that initial form, I wanted to ask you about that again. Is that mostly just for like documenting your relationship then? I don’t think it’s required to have that upfront, especially you’re going to do that during a deal. Is that mostly just a document, the relationship and that you knew that from the beginning and you know, they engaged with you, things like that?

[0:14:34.7] JR: Thad’s correct. I want to be able to go to people that are already onboard with us as investors when it’s time for an investment that they have everything they need upfront, all the prerequisites upfront, we share all the information they want to see upfront, we take them on to projects upfront.

They’re going to beat me up to make sure they know everything about me upfront so that when I bring them on as investors and it’s time to look at projects, they’ve already seen a private placement memorandum, they’ve already seen one of my deals, they’ve gone to everything with me. They’re in a position to see projects and that’s how we do it on the funny side too, Whitney.

We spend time upfront doing our due diligence on these companies that we fund, and that takes time and we make sure that we are comfortable with them, they’re comfortable with us, the worst thing on the world is when you get a deal from a new company and they say right away, these are the returns and this is the structure and everything is out of whack, right? It’s worth spending the time upfront to get all that laid out and make sure we’re all in the same page so that when the project comes, there’s no miscommunication, there’s no misidentification of how things are going to be done because you’ve done that upfront.

You’ve spent it three two, five, 10 months, whatever you feel comfortable with, and got all of your questions answered. You’ve spoken to the bank, you looked at their contractors, you saw the market they’re in, you’ve got proof of concept, you went through a full cycle deal. And you feel good about that business and they also see the value you bring to the table as a business like us.

[0:15:59.3] WS: You mentioned investors are now making referrals and that’s a great thing, right? I see some emails like this, sometimes people make introductions and this person would love to know more or invest with you, all is well and it’s a great feeling, right? You know, everybody wants that to happen right away and I feel like it takes a little time, right? It takes a few deals and we wanted to happen right away like everything but can you elaborate on that a little bit?

How did those start happening? Did you encourage that or is that something that they started doing on their own?

[0:16:28.2] JR: Well you know, we started our company unofficially in 2012. We took a full year to get it up and running, get the documents in place and then we went out to some very trusted people within our network, my business partner David, who is down in Hiltonhead is in a world agent, as I mentioned last time in accounting. I was in accounting firm and that’s a really great network of people, friends down in Hiltonhead and I’m up here in DC, but I also have a great network of friends to the navy, come from a pretty big family.

So, when we started the business, we went out to friends and family first, we went out to those that we trusted the most, and who trusted us the most because of the relationship, because they were family and friends, and those are the people that we pitch you first — because those are the ones that really we felt most comfortable with and they felt most comfortable with us so that they could ask us the tough questions and they made it better. They made us a better business and once they were able to get to a position where they felt comfortable, they said:

“Hey, we helped you with all of these stuff. We don’t want to be compensated, but bring us on board as your first investors.” And that was our first 10 to 20 investors in the company, which was great, and so those were the folks that were our core foundational investors that worked with us on our first five projects or six projects and then as proof of concept started to happen and we saw success then we started going out to other friends and family and then we started to network more.

And then I started going out to local area real estate groups and then I started talking to public people that I connected with on LinkedIn or referrals or going to real estate investment events like IMM or IMF, Opal Group, these different organizations that host investors that come out and now I’m networking with public investors. And then you start reaching out to businesses that do this for a living who can connect you with people.

Family offices, registered investment boxers, brokers who are private placement brokers. These are big boys and girls that go out and talk to some really wealthy individuals that, may have an interest on what I do. So that is the exciting part, and then I started partnering with preferred equity lenders, other people that did stuff that is similar to me. So you know the movie Godfather, Marlon Brando says, “Keep your friends close but your enemies closer,” but I don’t even consider them my enemies.

They are just good friends and we have three business relationships and so I could now help a sponsor maybe with the full equity deck or stack with $10 million of preferred equity and $2 million of limited partner or general equity for my company to help that sponsor get that full equity stack.

[0:18:57.9] WS: When you say the preferred equity provider, what does that mean exactly? You know somebody just listening like, “Okay now, who in the world is that?”

[0:19:06.0] JR: So in a capital stack you typically have three layers of funding. You have a debt lender who is your bank or your capital fund or debt pension group that comes in and funds anywhere from 50 to 75% of your deal and then you typically can come in with about five to 15% preferred equity lender, who is usually a private equity group or fund or pension fund or someone that can cut a check anywhere starting from $10 million and above.

And those folks get a lower return than the general equity, which is the third group in that list but a higher return than the bank guys and for that return that they get, usually I would say 10 to 12 to 13% a year on their money, they’re batting second in the batting order. So after the bank gets paid back, the preferred equity piece gets paid back next, but these are larger groups. They’re making a little bit less, or less than what the private equity groups make.

And then the third person batting is me, a general equity or limited partner group, that can bring in a 100,000 to $5 million a project will bat third in the batting order behind the debt lender and the preferred equity and we can write a smaller check but get the sponsor over the hump to fund the last 10 or 5% of the deal and so that is where we come in.

[0:20:24.1] WS: Great explanation and I just want to say to the risk level also corresponds to the way you laid that out there and then the order in which the distribution or capitals refunded, you know things like that are also in that same order. We just have a few more minutes but I thought you know just your process of on-boarding investors, if you could elaborate on that a little bit. You know it sounds like you have some documents that they need to see and deals that they need to look at.

And they go to your website, you are making them sign some stuff and I feel like you are creating that feeling of “I belong,” right? Or you know I feel honored to be your ideal investor, right? You know I am on his list, that is a great feeling to be able to create that for your investors. Could you elaborate on that a little bit maybe your on-boarding process and how you build that?

[0:21:05.5] JR: Yes, so if you go to our website, I’m a pictorial guy as a Navy pilot. I have to see it visually. We have a pretty nice schematic of process to probably bring people onboard. The introduction, the comfort of just meeting us and learning more about us all of that upfront stuff that we want to deal with a new perspective investor, and then it is really going through the documentation. Both our company documentation — we have five key documents on our view page on the website — and we go through that.

We let them read it, we let them do it on their own time, and then whenever they want to go through any specific document or information that we’ve shared we can, and it is really at their comfort level of when they say, “Okay, now I am ready to take a step forward. Now I am ready to fill out the accredited investor questionnaire,” and we walk through that with them as well and we always emphasize that there is never an obligation or a requirement to invest with us by becoming an investor.

It just puts them in a position to be ready to look at our project documentation and when we have a project then we start with the project level information, which is usually a project announcement. I put together an eight to 12 page project summary of investments, which comes from my company and then at the same time I am on the phone with my corporate securities attorney in New York to put our private placement memorandum together.

So investors are getting a step by step breakdown of documentation and information on each specific project and throughout that whole process they are asking us some questions. They are going through all of the information and at that point, we’re working together as a team to make sure we answer what they need answered, and if they have some good questions that we have to go back to our sponsor to ask and or ask for more further information it is all part of that process.

That is the exciting part, and just so you know, our asset classes really vary. We are not a one trick pony where we are only doing ground up new construction development. I mean we do single family renovation. We do ground up development new construction. We do multi-family value add. We’re getting ready to start our first opportunity zone investment in Washington DC. We do senior assisted, we do student housing, we do storage.

So we are doing a very broad spectrum. It is not necessarily asset class that meets that bell. It is really the sponsor, what they do, the market they’re in, how comfortable we are with them and whether or not they are willing to work with us to get us to where we need to be on structured returns and then when they bring it to us on those specific deals then we look at the asset classes. So that is really how we deal.

[0:23:31.1] WS: You mentioned a new upcoming opportunity and you mentioned it was an opportunity zone investment now outgoing but now it is 506(c) offering meaning we can discuss it but you know opportunity zone investment, it’s been a little while since anyone has brought that up on the show and what that means. Could you just tell us briefly what is an opportunity zone investment?

[0:23:49.6] JR: For 30 seconds on the opportunity zone investment is in 2017, Senator Tim Scott and Senator Cory Booker up in New Jersey came together. It was a bipartisan piece of the 2017 Jobs Act, and it basically empowered investors to come in and invest in areas that were identified by governors by each of the 50 States and in DC to identify locations — typically urban revitalized, rejectified, and affordable areas to invest. The incentivized piece there was that individuals could take tax deferred gains and roll them into these investments over a 10 year period or more.

Any of the profits that were earned on those tax deferred gains would be tax free. So if you brought in a $100,000 of tax deferred gain after 10 years if you earned another 100 on the 100,000 you brought it, the 100,000 you earned would be tax free and so that was the incentive — and they also had an incentive of treating that tax deferred investment where over certain periods within the timeline, you would get a reduction in basis on the tax you have to pay.

And it would push out the date on when you would have to pay that gain throughout that timeline of the actual opportunity zone investment. So in the past, if you liquidated this year let’s say on a property, you’d have to pay your capital gains stacks for 2020 either quarterly or in 2021. So this opportunity you get up to six years, the first six years of the investment in the opportunity zone it is deferred. So you are not paying any taxes in that gain until year six for tax year six.

And you are getting 10% of your basis knocked off at year five. So you are actually now only paying in that example I gave you, taxes on 90,000 for the year six and year seven. So it is a reduction in 10% basis. So that is pretty nice. There is other things in there like you get to write off double depreciation. There is so many great incentives in there and so we’re getting ready to raise $10 million for two projects that are wrapped in potentially four in Washington DC.

And it is with a sponsor we’re actually investing with right now and the tax-free returns probably a range between 12 to 13% a year return on investment. It is a great opportunity because you don’t have to pay taxes on that once we exit the project in year 10 or 11.

[0:26:09.3] WS: You are talking about this deal and then earlier you had mentioned like having a cautious eye due to the current market. Could you elaborate a little bit on how you are having a cautious eye on the market right now? You could talk about that current deal or not, either way give us an example.

[0:26:23.5] JR: So big picture, we all know when COVID is done, we know that there is still a lot of uncertainty out there. I listen to people like Sam Zell, and I have listened to people like Warren Buffett and no matter what I see, it is on both opposite ends of the spectrum. It is a V recovery, it’s a U recovery, it’s an L recovery, nobody knows. Nobody knows. The good position we’re in is that we’re getting through our projects.

We are still going to hit our projections within one to two percent of our returns but we are very cautious in where we want to invest and when we feel DC is a great location because it is one of those markets that has well-absorbed through population, jobs, Amazon, HQ2 is coming, the government let’s hear I should say that the government is only growing. So we really look at those markets that are showing great ability to absorb the risk as well as be on the the cusp of the return when the market does rebound and we see growth.

The markets are number two in my list is I always look at that market with a keen eye. Number one is my sponsors. So the sponsors in the market are hand in hand. So we’d love markets like Washington DC, Atlanta, Georgia, North Carolina and South. We like that east coast because it brings a quality of life, a lower cost of living, it brings higher populations and we like those markets. We’ve invested in those markets. Now there is some speculation that people may be going more out to the suburbs in the future.

But at the same time, we still believe in those markets we’re in, and that’s the mindset we’re going to take when we look at those markets when we kind of have that cautious eye of how they perform.

[0:27:58.2] WS: John, what is a way that you have recently improved your business that we could apply to our business?

[0:28:03.7] JR: Yeah, just going back and seeing what’s worked and growing that. You know whether it’s, “Hey, I have done really well finding investors through this but not so much through this. So how do I either improve that, or take it off of my way of finding investors and focusing more on ways of doing it like this?” So just going back and doing some housekeeping and making sure that the things were doing are working well. We focus on and take those things that maybe aren’t performing as well — bring in someone that could help us optimize and make it more ideal or just take it off and say, “You know what? That is probably not something that’s going to work for us in the future.”

[0:28:42.7] WS: Well speaking of that, what’s been your current best source of meeting new investors?

[0:28:47.5] JR: Going back to my current list of investors and then I have started a list of people that can introduce me to people that I want to bring on as investors. So it is kind of like I have my little army now of people that are wonderful people that can go out and help us meet new investors, bring on new investors. We help them with referrals to help their business or we find ways to make it mutually beneficial for them that it makes sense.

And so that’s ways we can do business together where they are incentivized to go out and introduce us to new people. LinkedIn is still a great source but really, following up on the leads you get and making them feel like, “Hey, I’d love to have you onboard” if you don’t hear from them for a week or two, you know what can I do to make it more comfortable for you and if they say, “Hey, we’re not interested,” no problem. I say, “I wish you all the best. I am here if you want to talk more.” And if there is anybody in mind that they can help you with your business again, going back to that indirect connection on the networking and the relationship that is how we do it.

[0:29:48.2] WS: Number one thing that’s contributed to your success?

[0:29:50.6] JR: My personality and just the way that I treat people. We said this before, I think you ask me on the last episode what was my favorite book, one of my top three is just How to Win Friends and Influence People by Dale Carnegie and just showing a genuine care for other people, seeing them succeed and feeling good about it. Being a Christian and saying that I love to see other people succeed and I think when you show that and you care about people in that way —

Whether it is a JID investor or a mortgage broker I work with or a realtor I work with and if they are succeeding, you’re succeeding because in the grand scheme of things they’re making our business better and at the same time, they see who I am. So they see that I am a genuine person that really cares about them.

[0:30:33.6] WS: How do you like to give back?

[0:30:35.0] JR: Balancing my life with my family but at the same time, really doing what it is all about and it is just taking care of my community, helping people that are less fortunate, people who are getting started in our business who needs some coaching or mentoring, you know —free of charge. I am happy to talk to people anytime when I can help shape and get them on their path. I think that it is so important to help people that are genuine and that you can help. They don’t see dollar signs or you don’t see dollar signs in their eyes. You see a person that has great potential.

[0:31:05.2] WS: Great. Well John, great show. I appreciate you just coming on and providing so much value every time and just going through your process. Most of the listeners I know are dreaming about being in your shoes and having the level of success that you’ve had. Tell them how they can get in touch with you and learn more about you?

[0:31:20.7] JR: I love to talk to people, if anybody wants to learn more about this I talk about it. I go to the groups and I provide presentations on how to raise capital and how I talk to people and how to get yourself set up for success in this business of syndication. The best way to get a hold of me is on my website. It is just www.jidinvestments.com. I am on LinkedIn, John Rubino or email me anytime at my first initial [email protected].

We have a YouTube channel as well, where I put some of my greatest podcasts with people like Whitney Sewell on there. I’ve got nothing but compliments from the one we’ve done so I am excited about this one because I have gotten so many hits and people complimented me on how you run the show and the information and the questions you ask are fantastic. So I appreciate that but that’s probably the best way to get in touch with us.

[0:32:13.8] WS: Great show John that’s a wrap. Thank you very much.

[0:32:16.4] JR: Thank you. Thank you so much, I appreciate it Whitney that was awesome.

[END OF INTERVIEW]

[0:32:19.9] WS: Don’t go yet, thank you for listening to today’s episode. I would love it if you would go to iTunes right now and leave a rating and written review. I want to hear your feedback. It makes a big difference in getting the podcast out there. You can also go to the Real Estate Syndication Show on Facebook so you can connect with me and we can also receive feedback and your questions there that you want me to answer on the show.

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[OUTRO]

[0:33:00.5] ANNOUNCER: Thank you for listening to The Real Estate Syndication Show, brought to you by Life Bridge Capital. Life Bridge Capital works with investors nationwide to invest in real estate while also donating 50% of its profits to assist parents who are committing to adoption. Life Bridge Capital, making a difference one investor and one child at a time. Connect online at www.lifebridgecapital.com for free material and videos to further your success.

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