The Brandon Green Report: Playing the Long Game
I’ve become intensely focused on the long game this year.
That certainly hasn’t always been my orientation, though the longer I live, the more clearly I see how much upside is created over time if we only have the patience and persistence to stick with it. For example, I was struck by this statistic: Warren Buffett has made 99.7% of his wealth after the age of 52.
Speaking of the long game, in this issue I’m excited to present to you an interview and music by singer-songwriter and former real estate client Laura Tsaggaris. I recently listened to her new song, “Lead Me,” and was incredibly moved. Not having heard anything from her in a number of years, I was curious to learn more about what she’s been up to and what led her to write “Lead Me” now.
Creativity doesn’t come in a consistent line, and how she’s handled some of the ups and downs of the creative process over the years is fascinating and relatable to all of us. Laura’s playing the long game.
In this issue, I also speak to some real estate stats I’m watching carefully, highlight a recent podcast appearance on Power Athlete Radio, recommend a couple of books for your holiday reading list, and make some predictions for 2021.
Let’s dive in.
— Small Business & Entrepreneurial Insights —
Chart courtesy of Calculated Risk
In the last recession, I shifted a large percentage of my real estate practice to managing and selling foreclosures for financial institutions. It was the market of the moment—approximately 40% of the entire market was a distressed asset sale. It was difficult to move from consumer-focused to corporate-focused clients, but I learned a lot about cash and risk management, scalable systems, and how quickly markets can change. Those lessons would go on to serve me very well as my real estate business grew in the following years.
It’s because of what I learned during that experience that I’m keeping a very close eye on mortgage delinquency rates to understand where we might be headed in 2021. As reported by data and analytics firm Black Knight, the mortgage delinquency rate moved from 6.66% in September of 2020 to 6.44% in October 2020, the lowest level since March. For perspective, that number was 3.39% in October 2019 and approached 10% during the height of the financial crisis in 2008-2009. What’s different this time is, by and large, homeowners have equity, and if homeowners in financial distress act quickly, most should be able to sell and reposition themselves to get back in the real estate game later. The market is desperately lacking inventory and would easily absorb these additional listings.
While there is plenty to be concerned about in 2021, I’m not worried about the real estate market.
Real estate ownership will, however, be increasingly out of reach for too many if we don’t aggressively address the economic impact of Covid and other areas that drag down first-time homebuyers, including student debt.
— Featured podcast —
I’ve been burned out many times, and what I’ve learned over the years is that it’s usually the result of losing sight of WHY I’m doing something. When I’ve gotten really focused on what I’m doing and how I’m doing it, but I no longer know why, I lose motivation. Sound familiar?
I recently had the pleasure of joining Luke Summers, Tex McQuilkin, and John Welbourn on the Power Athlete podcast to talk about burnout, creating possibilities for yourself, how to have a successful business during Covid, and one that thrives long after. It was a dynamic conversation you don’t want to miss!
— entrepreneur spotlight / LAURA TSAGGARIS —
I recently sat down with Laura to discuss just that—her journey, the business side of being a musician, and what led to her new song. Check out the full interview and transcript below.
— Green Speculations / december 2020 —
Sometimes I think about my December 2019 self—planning for 2020, imagining how the year would pan out, and working my plans accordingly. Ha, so innocent! Given that we’ve all had a healthy dose of you-never-really-know-what’s-coming this year, I hesitate to make any predictions for 2021.
Though I’ll make just one: 2021 will be the best and worst of times.
What I mean by that is, some people have positioned themselves very well to take advantage of the accelerated trends in technology and consumer behavior of late and will do very well as a result. For them, 2020 was an exciting, clarifying, foundation-laying year.
The entrepreneur who quickly accepted the reality we all found ourselves in and worked hard in the context of that new reality with an eye toward the future will reap the benefits in 2021 and beyond. We are going to see all kinds of new business ventures, trend-setters, and policy leaders come out of nowhere. The truth is, they’ve had their heads down all 2020, quietly and consistently building.
But for those who played defense in 2020—and perhaps refused to accept the reality of things—debt and other tax obligations pushed back by the government will come due, and it won’t be pretty.
My conclusion: 2021 will be a particularly important year to understand the full range of possibilities for the period ahead and draw on lessons from our past in order to create a better future for us all.
— reading list —
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