JF 3859: Protecting LPs, Building Trust, and Growing Through Mentorship Ft. Christion Sadler
Mar 29, 2025
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Christion Sadler, CEO of PreIShare, discusses how his platform is transforming liquidity for LP investors in real estate syndications. He shares insights on the evolving needs of LPs, the importance of mentorship, and the intricacies of investment buyouts. Christion highlights the critical nature of trust in investor-sponsor relationships and explores strategies for navigating capital gains taxes. He also announces an upcoming Capital Raise Forum event, bringing together real estate enthusiasts to foster community and connections.
PreIShare's platform offers liquidity options for LP investors in real estate by allowing them to sell positions through a secondary market.
The evolving needs of LPs emphasize the importance of succession planning and transparency in investment structures to foster trust and security.
Deep dives
Pre-iShare's Vision and Growth
Pre-iShare, founded by Michael Anderson, aims to enhance liquidity for passive investors in the real estate sector. Unlike other investment classes that have a secondary market, real estate has historically lacked such options, leading to illiquidity concerns. The company focuses on developing a platform that connects accredited investors and syndicators, striving to bridge this gap. Since its inception, particularly in the last year, the platform has evolved to include marketing initiatives that help pair syndicators with potential investors effectively.
Navigating Investment Liquidity
Investors are increasingly concerned about liquidity, especially when dealing with long-term investments. Pre-iShare addresses this by allowing limited partners (LPs) to create listings on the platform if they need to exit an investment early due to unforeseen circumstances. The process is streamlined, requiring only a listing with the ability to connect with private buyers interested in late-stage assets for a fair price. Approval from the lead sponsor is needed to ensure the transaction complies with investment rules, providing a structured exit strategy for investors.
Market Dynamics and Investor Trust
The current market has shifted investor behaviors, with many looking beyond traditional multifamily investments for diversification. Investors are now focusing more on how their capital is protected and the security measures in place rather than solely on potential returns. With a growing emphasis on succession planning and transparency, investors are asking about the protocols in place should anything happen to the lead sponsor. This shift highlights the necessity for syndicators to demonstrate not just trustworthiness, but also the stability of their investment structures.
Upcoming Events and Community Engagement
Pre-iShare is set to host its inaugural in-person event, the Capital Raise Forum, aimed at connecting industry players and educating LPs on investment risks and opportunities. The forum will feature seasoned investors sharing insights that may align with the current market trends. By fostering a community and facilitating deeper relationships, Pre-iShare hopes to enhance its network of accredited investors and sponsors. This kind of direct engagement is crucial for leveraging knowledge and fostering discussions about investment strategies.
On this episode of Best Ever CRE, Joe Cornwell interviews Christion Sadler, CEO of PreIShare, a platform revolutionizing liquidity for LP investors in real estate syndications. Christion explains how PreIShare allows passive investors to list and sell their positions through a secondary market, providing a critical option for accessing capital mid-hold. They also discuss the evolving needs and expectations of LPs, including succession planning, post-tax yield, and geographic investment preferences. Finally, Christion shares insights from his personal journey in real estate and announces PreIShare’s upcoming Capital Raise Forum event in Utah.