Christion Sadler- genius investor, recovering house flipper, and real estate guru. He’s been on MANY stages spilling the secrets of how and why he does what he does, plus how you can do it too!
Christion has been in the real estate business for 20+ YEARS and has been a full-time investor for 20 years. He’s been in this space for a WHILE. Which means he knows how you can actually profit off of what’s going on in the marketplace instead of just tolerating it.
Trying to get into the real estate space?
Start investing right here, right NOW by listening to this episode which will cover how real estate has changed, if it’s even still a good option or not, and why he quit flipping properties to transition into earning actual passive income.
Christion’s Links:
Instagram: https://www.instagram.com/christionsadler/?hl=en
Website: https://preishare.com/
LinkedIn: https://www.linkedin.com/in/christionsadler/
TRANSCRIPTS
Speaker 1 (00:00):
There’s one thing I’ve been telling a lot of our listeners and especially our clients in the last two years is, hey, it’s still good to invest.
Speaker 2 (00:05):
And it’s not like real estate has taken any dramatic downturn in value overall unless you get into a situation where you,
Speaker 1 (00:31):
Hello, my fellow Ripples, this is Chris Miles, your cashflow expert in anti Financianal advisor. This show is for those of you that work so hard for your money and you’re now ready for your money to start working harder for you today. You want to become work optional where you work because you want to, not because you have to, but not just about getting rich, but you want to live a rich life because as you’re blessed financially, you now have a greater ripple effect, a greater capacity to bless the lives of those around you. Guys, that’s exactly what I’m here to do today. Thank you for tuning in. I appreciate you guys binging and sharing and of course following us, not just here, but also follow us on social media. If you haven’t followed us on Instagram at Money Ripples, you can check out our stuff there as well.
(01:09)
Okay guys, so I’m bringing on an old friend of mine, and I’m not saying he’s old, that’s not the case here, but someone I’ve actually known for 15 years actually going on about actually 17 years, I guess we just found out. So going on nearly two decades is Christian Sadler here now Christian Sadler has pre iShare, which is a company we’re going to talk about here today. But one of the cool things about C is that he’s been in the real estate business for 20 plus years now. He’s been full-time investor for about 20 years and become one of the biggest authorities in the space. Obviously he’s focused on not just here locally, where we’ve been here in Utah, but also nationwide has been on many stages speaking about this various topic of real estate investing. And so I know that one of the big questions is going to be is one, is real estate still good right now? And then two, the big question is how do you actually profit off of what’s going on in the marketplace? And he’s actually got a solution for that. So Christian, welcome to our show today.
Speaker 2 (02:09):
Hey Chris, thanks for having me on. It has been great as we’ve continued to cross paths in business throughout the years and I’ve been able to see what you’re doing. I love the mission that you have because there’s this lost segment of the population that starts raising up their income and then they almost get disregarded as the wealthy when they’re still trying to figure out how to get that passive lifestyle. And I’ve learned a lot about that over the years and I really advocate for those folks.
Speaker 1 (02:36):
Yeah, for sure. Yeah, that’s what we were talking about before we went on the air. We’ll save a little bit of that for later for people. They got to have a reason to keep watching this episode. Well, tell us more about your background. Obviously, I know you’ve been full-time investors since 2005, but tell us a little bit more about that.
Speaker 2 (02:50):
Yeah, so my story starts when I was in my teens actually, and I just paid attention to the families that had more in life and I noticed that the parents had something to do with real estate. Usually they owned rental properties of some sort, or they were building properties on the side and turning around and selling those spec homes or whatever it was. So 17, 18 years old, I decided I wanted to be a real estate investor and I started going to those seminars way back then. It took me until my early twenties before I was able to go full-time as a real estate investor. And in the meantime I was just working as a grunt in a steel fabrication shop, swinging a four pound hammer and living a pretty rough lifestyle. And I look at real estate and entrepreneurship is what really saved my life because there’s a lot of directions I could have went if I didn’t get into business. And when I got into business, of course I got into personal development and I developed myself into the man that I wanted to be.
Speaker 1 (03:46):
I love it, man. Yeah, that’s fascinating. I mean, you were in high school when you started to notice those differences. I know I share my story. It was about college for me when I realized the professors that were teaching, obviously they’re good teachers, but they weren’t necessarily always the doers, but the few that were usually were saying, no, no, the way they go is not the traditional nine to five path. You need to be your own business owner. And that’s what kind of got my start. But I noticed you noticed that just in high school. So was it just the people you saw in real estate or was it just something different that you saw with these people that grabbed you?
Speaker 2 (04:21):
Well, so it was the lifestyle first of all, right? When you’re a kid, it’s like the families that have the four wheelers for every single family member and boats and the vacations. I mean, I was raised by a single mom of four since the time that my dad passed away, which was when I was 10 years old. And so we didn’t have much, I mean, my mom was amazing. She’s my hero and I shout that from the rooftop. She always made sure we had food in our bellies, clothes on our backs. It is not like we were living in poverty by any means, and I still don’t know how she did it looking backwards, but I just noticed that there were families that had a lot different lifestyle and those parents always had something to do with real estate. And then of course that sparked my interest. So I started reading and I started researching how people created wealth and it was owning a business and investing in real estate.
Speaker 1 (05:10):
And you’ve invested in a lot of different types of real estate, I imagine. What kind of real estate experience have you had?
Speaker 2 (05:16):
Yeah, I mean I’ve done everything from single family, multifamily, commercial land. I mean just about every asset type I’ve done a little bit or a tremendous amount. The majority of my career was flipping properties, whether I liked it or not, sometimes it was the only way to access the equity. So I now call myself a recovering flipper because I am moving towards where I want to truly invest. When I look back at when I was flipping properties, I called myself a real estate investor, but was I really investing or had I bought myself a different job? So yeah, now moving much more towards the passive income side of things.
Speaker 1 (05:57):
Yeah, we’ve actually talked about that on the show a few times because get a lot of different wholesalers or flippers, they’ll come on the show and every time if you get them to be truly honest, they’ll say, nah, it’s a job. It’s a hard business. You can make a lot of money, there’s no doubt. But it’s transactional. It’s not passive by any way, shape or form. So it sounds like you’re kind of transitioning a little bit that way.
Speaker 2 (06:19):
I think if you get anybody that’s been in the business long enough and has had a level of success flipping properties, we all have that moment where it’s almost like a slap in the face. And we just think back of all the properties, maybe we bought the same property that we bought 10 years ago, and we look at the value of it now, and we just think to ourselves, man, if I would’ve bought or if I would’ve held onto even half of even a quarter of those properties, I mean my net worth and my cashflow would be just through the roof.
Speaker 1 (06:48):
And you don’t hear that in the seminars too often. I mean, most of the time people in the seminar is like, oh yeah, you can make $300 a door per month. It’s like, no, I did this flip. I made 50 grand. I made a hundred grand on this flip. And that’s what usually sells the tickets, doesn’t it?
Speaker 2 (07:02):
Yeah, yeah. It’s sexy in theory, and don’t get me wrong, it provided an amazing lifestyle for me. I’ve been able to travel the world and have some really cool experiences along the way, but I just think there wasn’t enough emphasis for me in my own life of that long-term, slow wealth that turns into the lifestyle that is what I originally got into real estate for in the first place.
Speaker 1 (07:26):
Yeah, good point. And we’re going to go more into that, especially that passive lifestyle and things that we were talking about here today before we do. Obviously there’s a lot of people, and I’m sure there’s some first time listeners that might even be listening to your episode right now, and they might be going down this rabbit hole and maybe real estate investing comes up and there’s naturally a lot of skepticism, especially right now I’m shocked how much more skepticism there is about real estate than there is about the stock market, which has been going gangbusters. Ridiculous. People expect that to happen, supposed to happen, but real estate, they’re expecting a crash anytime. I know I knew you when even before the real estate market started crashing the last time, and now we’re in the market where we’ve been in the last two years. For some of my friends, especially in wholesaling and especially flipping, they’re saying this is the worst years that they’ve had, especially they were multifamily syndicators. They really say, man, the last two years were worse than 2007 and 2008. What’s your perspective right now, what you’re seeing in the real estate market? How do you see it today?
Speaker 2 (08:24):
Yeah, I mean, there was a very sharp change in the market. We all understand that the capital markets shifted so fast that many people weren’t prepared for it. And even if they spent a lot of time preparing for it, it still shifted their overall business model. It shifted the amount of returns that they were able to offer and everything else. And so I think there’s this shell shock, and some of it comes from people that did go through the great recession. That was such a traumatic event for so many people. I mean, literally, it’s like there’s second and third generation to those folks who are investing and they’ve taught their kids who are teaching their kids about being careful about real estate. But when you really step back from it, it’s still a supply and demand situation. And it’s not like real estate has taken any dramatic downturn in value overall unless you get into a situation where you had to sell in the wrong time, in the wrong market.
Speaker 1 (09:25):
Yeah, right. Exactly. Where do you see opportunity now?
Speaker 2 (09:29):
There’s a tremendous amount of opportunity, and it just depends on what segment of the market that you’re in. So I’m not sure what your listener base is looking at if they’re looking at single family homes. I’m still seeing people have success in turning around single family homes. And in that market I see a lot of folks where they’re having success is buying things on seller financing or subject to, and I guess that’s kind of across the board. It’s not limited to single family real estate. It’s just you see it so common where somebody that bought their house maybe five years ago and has a two and a half, 3% mortgage and is in a situation now where they want to sell, quite frankly, if they can turn around and transition that mortgage over to the new buyer, sometimes there’s more value in that financing almost than the piece of property itself if done properly.
(10:19)
And so you can arbitrage your situation there and earn money in multiple different ways. And we are seeing that even in the multifamily syndication space now as well, where there’s these assumable loans or there’s the ability for people to step in and cog with somebody who maybe didn’t have the strongest financial position but still has really great loans, and obviously it has to be with a property where they’re still upside. You can’t save some of these deals that were just bad deals from the first place and people overpaid for, but there’s many of ’em that are still in a potentially great situation that just needs the value add to be finished and the lease up to happen so that they can continue to produce profit.
Speaker 1 (11:01):
Well, and that kind of leads to what you’re doing with pre iShare. Correct. Tell us more about that and how you’re stepping in because you’re doing something very unique that I don’t know if I’ve really seen anybody do, even though we have all kinds of people from syndicators to fund managers and whatever you might name, what you’re doing seems pretty unique. Tell us more about that.
Speaker 2 (11:21):
And it still blows my mind every time I think about it that it hasn’t been created yet, Chris, because it seems like such an obvious solution to have in the market. I think what you had was you had the syndicators thinking about their own needs and trying to go out there and scale their businesses, and you had the passive investors thinking about their own needs, and there was just never really somebody that was in the middle of that. And I have to give credit to our founder and CEO, Michael Anderson, who was a real estate syndicator for over 40 years, did over 7 billion in transactions. And it wasn’t until he retired from the game, so to speak, where he sold his company and stepped back from it and said, here’s the things that I would like to fix about the industry. And then he started searching to figure out is there a secondary marketplace?
(12:07)
Is there a way for people to get liquidity? Because he thought about all of the passive investors that came to him over the years needing that liquidity, asking for that liquidity, and usually it fell on his shoulders to figure out how to solve that problem. And that can be constraining when you’re trying to build with him a billion dollar organization. You don’t want to be constantly raising money to backfill previous transactions. And so when he didn’t find it, he decided to assemble a team of us to build it, and that’s what we’ve been doing with pre iShare.
Speaker 1 (12:39):
Yeah, when you mentioned it, it kind of seemed like a no brainer, didn’t it? I think of even some of our own clients, some of ’em have been in deals that really went south, not with us, but with other syndicators that they found previously. And the hard thing is if they have money in a good syndication, they’re like, yeah, but I just lost money over here. I need to get that cash out, but I’m supposed to be locked into this for five, six years in this apartment or self storage unit or whatever syndication they were in. And so like you said, it’s not like, or it could be a life emergency too, or something happens in their practice if they’re a doctor or dentist or whatever it might be. They’re like, I got to get that cash out, but obviously I’m supposed to be locked into this for five or six years. So for you to step in and say, tell you what, I’ll buy your position. I’ll buy you out. I’ll basically step into something that probably might become more profitable down the road. I can see it. It’s like, well, that’s a great way because the more stress there’s been in other syndications and things like that, the more people are like, maybe I need to liquidate everything. Right. There’s definitely a need for that right now.
Speaker 2 (13:43):
Sure. Yeah. Let alone, I mean, like you said, people just have those life situations that come up, and in the past they’ve had to just disregard the money that they had tied in real estate. And quite frankly, that’s why there was a lot of people who didn’t invest in real estate, even though they knew it was a better asset class than the other places they were putting their money. They just didn’t know that they could commit to a three year or five year or even 10 year deal. And so they would rather hold their money out and put it into something that earns less money and sometimes is even more risky just for the simple fact that they needed to have the comfort of feeling like they had access to it.
Speaker 1 (14:23):
So tell us, how does it work exactly? If somebody came to you saying, Hey, I want to be able to liquidate my position, how do you work out that arrangement?
Speaker 2 (14:31):
Yeah, so first thing is we suggest they put it on our listing hub, and the Listing Hub is truly an open market platform where you can list your shares and anybody can come on there and look at those, make you an offer. And with that, because we see the opportunity here and we want to create some of that instant in the marketplace as well, we do have the pre iShare liquidity fund. And so as you put your position onto the listing hub, we’re going to see that and we’re going to run some basic analysis on it, and if it looks like it could fit with our fund, then we will essentially reach out to you and start doing some due diligence because there is a lot of due diligence that goes into a secondary position. And so we’re going to start looking into those things.
(15:16)
The other thing that’s going to have to happen, because you do have a sponsor that is kind of at the forefront of this deal, they’re going to have to sign off on your ability to sell it. And so we can negotiate, we can figure out essentially where it makes sense to us, and if that is also a place where it makes sense to you, then we’re going to reach out to your sponsor and find out what their provisions are, whether they allow it. Now, the interesting thing, Chris, is we’ve had so far a hundred percent adoption rate from the gps, those that are creating the deals, if they have the ability to get an investor who right now needs their money out and then get a brand new accredited investor into their deal that they didn’t have to go put any advertising out for, they didn’t have to go to any events to meet them. They just simply founded on our platform. Most of ’em are pretty excited about that situation.
Speaker 1 (16:09):
I can imagine. And you just said something that was interesting, it sounded like, is there a marketplace that you have as well?
Speaker 2 (16:15):
Yes. Yeah, that’s the first thing that we created actually was the listing hub. So I mean, literally if you go to listing hub dot pre iha.com, you can go on there. We have somewhere over 40 listings, I can’t remember the exact number now, but over 40 listings on there right now, and we only allow passive positions in real estate. So you’ll find LP positions that are existing. So those are the secondaries. You’ll find first position lien debt that people are selling out of their position there. And in some cases, you’ll also find new raises from folks that have been through our sponsor approval process, so deals that they’ve put together that they’re raising capital for.
Speaker 1 (16:55):
Gotcha. So not only could I go on there and say, I want to sell my position or offer my position to somebody, it could be you, but it could go to somebody else individually. But if I were a passive investor, I could kind of cherry pick, couldn’t I? There’s one thing I’ve been telling a lot of our listeners and especially our clients in the last two years is, Hey, it’s still good to invest, but build more cash too. Because when everybody was saying, don’t hold cash in 2022, that’s when I knew the time to hold cash was right then. Because when everybody says, don’t hold cash, that’s when everybody deploys all their cash and then they’re not liquid anymore. So I know there’s a lot of people sitting on the sidelines with extra cash saying, now what? I could literally just say, I got cash. Let me go on here and see if I could find a good LP position. Like you’re saying, some position that somebody has in an investment that’s already been paying and doing what they’re supposed to be doing, and I could step in as an investor,
Speaker 2 (17:44):
And now your horizon is a lot sooner to see a capital event. So you might buy into a five-year position two years in, so now you only have three years before you see a capital event. Now you’re putting yourself in a position for potentially better profit as far as overall, because if you can buy at the right price and that equity multiple comes sooner overall, IRR becomes much larger,
Speaker 1 (18:10):
Goes through the roof. Yeah. Well, especially because a lot of times these syndication have been set up where you got paid maybe a little cashflow along the way, but most of it’s on the backend when they sell or refinance, if they refinance, that is, that’s a whole nother conversation right there,
Speaker 2 (18:24):
And that’s majority of real estate, right? There’s the saying that you make your money when you buy real estate, but you don’t get paid usually until you sell, or in some cases refinance. And so that’s why, again, that whole scenario of why I look backwards and think, man, if I would’ve just held onto those properties, those big paydays come from holding onto property for at least a period of time. And if you can reap the rewards as if you were holding the property for the full duration, even though you’re buying into it late stage, that’s where we see a lot of opportunity.
Speaker 1 (18:57):
And I’ll say this a disclaimer, we’re not giving investment advice. We’re not saying we’re promoting Christian or taking any fees or anything like that or anything of that nature. Obviously we tell people to do their due diligence, but that’s pretty awesome. That’s a pretty cool little platform you’ve got there with multiple options, whether you’re the investor that’s trying to sell out or somebody who wants to get in. I think that’s a really cool, really niche that you have there.
Speaker 2 (19:22):
Yeah, I appreciate that. We’re excited about what it’s going to do for the marketplace. I mean, there’s a lot of big picture things that we could talk about maybe on future episodes of the way that this could shift and change the market. The nice thing about it is the secondaries market is starting to be talked about really heavily and not so much in real estate yet, but that’s what we’re pushing for and that’s what we’re really pioneering is having a secondaries marketplace in the world of real estate syndication because again, it’s an asset class that has outperformed almost everything else around it.
Speaker 1 (19:54):
That’s right. That’s awesome. Well, Christian, I know people are already asking, how do I find you? They probably, someone have already Googled you by this point. What’s the best way you to have ’em follow you? Do you want them to follow you on social media, Christian sadr, or do you want them to check out pre iShare? I mean, what’s the best way for them to follow you?
Speaker 2 (20:12):
Yeah, I think both. Now, if they are Googling me, spelling my name correctly is the real easy way to find me. So as long as you’re spelling Christian with an ION and Sadr with 1D, you’ll find me there. But pre iShare, again, we put out a lot of content. We’re bringing in some amazing minds to what it is that we’re doing. I mean, I’ve been able to sit down with hundreds of different syndicators now and talk to them about what they’re doing, and I’ve talked to over a thousand passive investors. I mean, we’re really getting a gauge for this market, and we are trying to be the bridge. We are the bridge. We’re not trying anymore. We really are the bridge between these two factions of people who have interests that are aligned, but could be more aligned in a lot of ways. And so that’s what we’re striving for.
Speaker 1 (20:58):
I love it. Awesome. Well, Christian, we’ll put that in the show notes for everybody that they could check out, especially if they’re driving. We don’t want them crashing, trying to try to Google you or try to look you up right there. But we’ll definitely have that in show notes for everybody there.
Speaker 2 (21:11):
I appreciate you having me on. Again, I really respect what you’re doing and the information that you put out there to help people get to that next level in their life financially.
Speaker 1 (21:21):
Absolutely, man. Well, thanks for joining us today. And everybody, definitely check out pre iShare, check out Christians if you want to check out, follow him on social media. He’s got lots of content he puts out there. I know. I see his stuff too, so definitely feel free to follow him as well. But guys, here’s the thing is that everything’s about timing, isn’t it? Right? It’s about timing. Now, the right time is always now, and the right place is always right here. However, there are times that you might find that there’s opportunities. You could be leading edge, and I definitely see this as some of the leading edge, that worst case, check it out to at least research it for yourself to see what it looks like. Pretty interesting stuff, for sure. I know I’m pretty fascinated by it. So guys, be sure to do so. Make sure that you don’t just listen to what you hear on these podcasts, but find ways to take action. Do the things that actually help move your life forward in an abundant and positive way. Make it a wonderful and prosperous week. We’ll see you later. It’s one thing I’ve been telling a lot of our listeners, and especially our clients in the last two years.
Speaker 3 (22:20):
Thank you. Yes. Hey,
Speaker 4 (22:29):
Visit us online@moneyripples.com for more resources to help you fix money leaks and get your money working harder for you. Now.