Summary
Highlights
Sanjie went from owning no real estate to a $1.5 billion portfolio in 10 years, starting as a broker, falling into $15 million debt, and then building his way back up using a specific real estate strategy.
Sanjie initially planned to be a lawyer but transitioned to real estate, opening a brokerage in Modesto. He sold his first building for $60,000 and began working with retail tenants like Jack in the Box and AutoZone. He leveraged his broker role into development by finding properties and tenants for other developers.
A Jack in the Box operator failed to pay payroll taxes, leaving Sanjie with $15 million in debt from properties bought on spec. He faced potential bankruptcy but decided to pay it back. He pawned his wife's wedding ring to come up with the downpayment of a gym.
Sanjie bought a gym with the agreement to pay the previous owner over time. He discovered the gym was losing money, not making $30,000 a month as he was told. He and his wife lived frugally, shared meals, and worked tirelessly at the gym, with his wife even teaching Zumba classes. He ultimately focused on growing the gym business to pay off debt.
Sanjie opted to pay back his debts instead of filing for bankruptcy. He created a unique business model by learning from Golds Gym and Planet Fitness, combining those concepts to create what would become one of the largest private gym chains in Northern California, growing his business to 82 stores and employing 2,000 people.
After selling his house and cars and focusing only on his gyms, Sanjie decided to get back into real estate. He used the option on his second gym in Oakdale to buy the center and sell it at a significant profit, earning enough capital to get started in real estate once more.
Sanjie describes the double escrow technique. This strategy allowed him to enter deals without risking his own capital and to realize substantial profits, a technique he still uses with his businesses.
Sanjie realized he wanted to transition to real estate. Building upon relationships with tenants such as Harbor Freight Tools, he started building shopping centers. By 2017, he had decided to spend more time with his family. This led him to focus on retail shopping centers as his primary real estate focus.
Sanjie shares insights into current retail trends, including the rise of experiential retail (pickleball, trampoline parks), the success of discount retailers (Ross, TJ Maxx), and the importance of combining physical stores with e-commerce and distribution. He emphasizes that location is still paramount and that the best success is found when “making money on the buy.”
Drawing an analogy from Kobe Bryant, Sanjie describes the importance of stacking days and working hard. He states its vital to be “where you are” and be that 100%. He gives the advice of always having a game plan and reminding yourself “why you are doing this.”
Sanjie states one of his core philosophies is to “compete with yourself.” He goes on to state the importance of acting well in difficult situations by not burning bridges and focusing on the long game.