This past year has been a rollercoaster, especially in the real estate industry. But it was one of the best years for Bench Equity. How could that be?   Many would argue that the world still isn’t quite back to normal since 2020. We’ve faced a global pandemic, witnessed an ongoing ground war in Europe, and endured the highest inflation in 40 years.   The headlines:  “U.S. Inflation Hits New Four-Decade High of 9.1%” - Wall Street Journal - July 13, 2022”   “Mortgage Rates Hit 20-Year High as Rising Inflation Fuels Economic Woes” - Forbes - October 13, 2022   “Layoffs are crushing the real-estate industry, and Redfin and Opendoor are the latest victims. Here are 44 companies that have shed jobs due to the fast-cooling housing market” - Business Insider - November 9, 2022   The holidays are a time for reflection and understanding. Even the difficult parts of the year are important in shaping your environment moving forward. The news articles referenced above drilled deep uncertainty into the market over the course of this year, but they also gave us an opportunity to test our strategies and teams against a tough market.   It is easy to be a winner when everyone is winning, but the true test of greatness is when you can forge a path to success when times are tough. As Warren Buffet once said, “Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons.” While certainly an interesting allegory, it can be difficult to know how one prepares themselves to have a washtub handy when the skies begin to gray.   Bench Equity took some large, calculated risks this year that fortunately paid off in ways we never could have expected.   -      First, we hired a new cadre of employees to enhance our business through developing new markets, streamlining our loan servicing, and managing our ever-growing funding needs. While many large real estate companies were forced to lay off 10-30% of their workforce, we increased our total headcount 38%. What did this increase in overhead give us? 500% annual growth in our third largest market while maintaining growth in all other markets, a monumentally improved payoff and extension process, and a more streamlined funding process. -      Second, we added two new loan products that have helped our borrowers better tailor their financing to their own needs. Our new rehab and DSCR loans have allowed us to reliably provide affordable financing to any investor whether they are looking to fix and flip or buy and hold. -      Finally, we saw the benefits of maintaining our status as a “private money lender” instead of chasing after Wall Street money. Over 90% of the money we lend to support your deals comes from private individuals and families who have dedicated their wealth to helping you build your own. Our partnership with these private investors enabled us to keep our rates lower for longer as we didn’t have to worry about the Federal reserve constantly raising interest rates.   Although 2022 came with some disheartening headlines, we here at Bench Equity managed to make it our best year yet in almost every single metric. This holiday season, we are grateful for the opportunity to better the communities of Arizona, California, Colorado, Texas, and Utah through our investment in the people who are actively working to improve housing and build wealth in their communities. We are acutely aware that our success as a lender is tied to your success as an investor, so thank you all for doing such a great job!   Every advantage that we have comes from the relationships we have with our team members, investors, and borrowers like you. We would not be where we are without the many hearts and minds that make up the Bench Equity family. As we look towards 2023, we are hopeful for the continued success of both our industry and communities as we work together to buy, build, and renovate better housing for all. Whether we have had the opportunity to serve your business yet or not, we wish you a happy holiday rest. You’re going to need it for all the growth coming next year!