Steven Sanders of The Collective Investment Group: How We Are Helping To Make Housing More Affordable
An Interview With Jason Hartman
Patience is more than a virtue; it is a major determinant of one’s success or failure in business. Why? Because the new business development cycle is always longer than expected and it very seldom unfolds as planned.
In many large cities in the US, there is a crisis caused by a shortage of affordable housing options. This has led to a host of social challenges. In this series called “How We Are Helping To Make Housing More Affordable” we are talking to successful business leaders, real estate leaders, and builders, who share the initiatives they are undertaking to create more affordable housing options in the US.
As a part of this series, we had the pleasure of interviewing Steven Sanders.
Over the last 30 years, Steven Sanders has fine-tuned his leadership, investment, and entrepreneurial skills in the dynamically changing investment industry. Enlightened by his experiences, Mr. Sanders and several prominent entrepreneurs formed Beltraith Capital in 2008 to execute on his vision to provide innovative, solution-driven portfolio strategies to investors by acquiring, launching, and growing investment management firms.
Through these acquisitions and organic growth, Beltraith’s holding companies’ total assets under management has grown to $1.7 billion as of 3/31/21. Steve was named Chairman of The Collective Investment Group in 2021.
Thank you so much for doing this with us! Before we dig in, our readers would like to get to know you a bit more. Can you tell us a bit about your “backstory”? What led you to this particular career path?
My journey as an entrepreneur began as a teenager when I took on the challenge of growing and managing a paper route. As a student at Howard University, I began to acquire leadership skills and develop organizational management strategies. Through several summer internships, I was introduced to the financial services industry, which ignited an intense interest in investment management.
Can you share the most interesting story that happened to you since you began your career?
Like many startup firms, my first venture was undercapitalized. We lacked adequate capital to effectively promote and advertise our services. Despite the circumstances, we were determined to advance our mission of helping people understand the markets, invest wisely, and grow their assets. So, we developed and began delivering to audiences from New York to Washington D.C. a series of free investor seminars that focused on demystifying the world of investing and economics. Shortly after we launched our investment management firm in 1986, the stock market nosedived in October 1987. Panic and fear shattered the confidence of many first timers as well as seasoned investors who had, for many years, painlessly rode a raging bull market to prosperity. That was a watershed moment for our fledgling business. Attitudes about investing shifted from, “I can do it all by myself,” to, “I better seek sage counsel.” Our non-threatening and encouraging risk management message about investing was a hit. Thus, in the winter of 1987, demand for our seminars exploded and our business grew exponentially.
Are you able to identify a “tipping point” in your career when you started to see success? Did you start doing anything different? Are there takeaways or lessons that others can learn from that?
During my career, I have experienced multiple “tipping points.” I have recognized a recurring pattern in these “seminal moments.” Thematically, they are introduced at the crossroads of problems and solutions. The desire to meet specific marketplace needs through a solution-oriented approach has allowed me to turn “tipping points” into “turning points.”
The takeaway is that planted in problems and obstacles are landmark opportunities. Thus, the lessons are:
- Get excited when faced with challenges; the seeds of success are planted within the struggle to address difficulties.
- Be solution-oriented instead of problem-focused. Constantly direct your resources, energy, time, and brain power towards approaches that can solve the problem.
- Believe that within you are the recipe and ingredients to move mountains. Faith, the size of a mustard seed.
None of us are able to achieve success without some help along the way. Is there a particular person to whom you are grateful who helped get you to where you are? Can you share a story about that?
I have received help from far too many people along my journey to list them.
Do you have a book, podcast, or talk that’s had a deep impact on your thinking? Can you share a story with us? Can you explain why it was so resonant with you?
There are two books that continue to have a deep impact on my thinking, actions, and my approach to business and leadership:
- The Bible
- “The Greatest Secret in the World” by Og Mandino
Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?
Giving equals receiving to the 10th power. The more one gives unselfishly to others, the more God gives to you.
Ok super. Let’s now shift to the main part of our discussion about the shortage of affordable housing. Lack of affordable housing has been a problem for a long time in the United States. But it seems that it has gotten a lot worse over the past five years, particularly in the large cities. I know this is a huge topic, but for the benefit of our readers can you briefly explain to our readers what brought us to this place? Where did this crisis come from?
In the United States, since 1960, median home prices have increased by 121% and median gross rents have increased by 72%, yet median household incomes have increased by only 29%. Thus, for many Americans, the ability to buy a house or rent an apartment has become increasingly challenging.
Can you describe to our readers how your work is making an impact to address this crisis? Can you share some of the initiatives you are leading to help correct this issue?
At The Collective, our focus is asset value creation through active, long-term, and responsible ownership, diversity and inclusion, and equitable development planning in marginalized Philadelphian communities. Through the creation of The Collective Investment Group, we are aggregating $100 million in capital to invest in the projects of African American real estate developers.
Can you share something about your work that makes you most proud? Is there a particular story or incident that you found most uplifting?
Throughout my career, I have consistently been rewarded through and uplifted by comments from persons who have benefited from investment advice I’ve rendered or motivated by a message I’ve delivered. Specifically, twenty years ago, I was given the privilege to serve as a national spokesperson for a large U.S. bank to teach the ABCs of economics and personal finance to inner city high school students. Through this program, I was able to share with thousands of young adults across the country the principles of managing money and investing. On many occasions, I have received a word of appreciation from an adult who heard my presentation when they were a teenager. They have expressed that the concepts and tips they learned through the presentation continue to help them manage their finances wisely.
In your opinion, what should other home builders do to further address these problems?
To effectively address the challenges facing inequality in housing, equitable deployment of capital, and inclusion in the real estate industry, home builders need to aggressively seek strategic partnerships with African American real estate developers and contractors.
Can you share three things that the community and society can do to help you address the root of this crisis? Can you give some examples?
1) It is imperative that public and private allocators of capital seek out and support African American real estate investment firms and professionals.
2) Capital Markets and lending institutions need to seek opportunities to collaborate with African American real estate developers, contractors, and other professionals to design innovative financial products that can address the needs of each stage of a project.
3) Elected officials can be helpful by supporting the identification, research of, and implementation of strategies that directly, effectively, and expeditiously address issues that communities deem important.
If you had the power to influence legislation, are there laws which you would like to see introduced that might help you in your work?
Yes, continue to provide tax incentives for investment in inner-city real estate development projects.
What are your “5 things I wish someone told me when I first started leading my company” and why? Please share a story or example for each.
- How to embrace and implement the principles of organizational dynamics into the DNA of the business. Why? Because leading and managing a diverse group of individuals to accomplish a common goal is a critical and challenging task, paramount to boosting productivity, eliminating inefficiencies, effectively solving problems, reaching profitability, and running a harmonious organization.
- Patience is more than a virtue; it is a major determinant of one’s success or failure in business. Why? Because the new business development cycle is always longer than expected and it very seldom unfolds as planned.
- Relationship building is a daily function for business leaders. Why? Because people tend to do business with folks that they know, like, and trust.
- It takes more than just a good idea and research to succeed in business. Why? Because success in business demands leaps of faith combined with what we know.
- Do not measure your success only in dollars and profits. Why? You will only reach true fulfillment and happiness when your business endeavors positively impact the lives of others and create a powerful legacy.
You are a person of enormous influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
I believe everyone possesses the potential to have enormous influence on the lives of others and the world at large. If I could inspire a movement, it would be to unleash the immense potential stored in the hearts and minds of mankind.
Is there a person in the world, or in the US whom you would love to have a private breakfast or lunch with, and why? He or she might just see this, especially if we tag them. 🙂
Yes, David L. Steward. He is chairman and founder of World Wide Technology.
How can our readers further follow your work online?
https://www.linkedin.com/in/steven-sanders-8771ab90/
This was very meaningful, thank you so much, and we wish you only continued success.
Steven Sanders of The Collective Investment Group: How We Are Helping To Make Housing More… was originally published in Authority Magazine on Medium, where people are continuing the conversation by highlighting and responding to this story.