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Month: October 2026

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  2. Archives: October 2026

Jewels of Wisdom Newsletter – How I’m Dealing with Record High Interest Rates

How I’m Dealing with Record Interest Rates

When interest rates rise, there is lower buyer activity in the market.  Supply & demand shifts slightly as the monthly payment for a certain price point increases slightly.  For example:

  • $300,000 mortgage at 6.5% payment is $1,896.20
  • $300,000 mortgage at 7.5% payment is $2,097.64

As you can see, it now costs the buyer more money to buy that same $300,000 house. This reduces the number of buyers able to qualify for that home, even if only by a small amount.

Add in the coming Winter market and we are looking at short term risk here of slowdown. Buyer activity drops each Winter AND Buyer activity drops as interest rates rise.

While I believe this is temporary (I predict that we are likely to have one more .25% rise to allow a few rate reductions early next year), I am still adjusting my strategy slightly.

  1. Do MORE Due Diligence – before accepting any “Pre-Approved” mortgage buyers. Buyers may have old approvals and might be reaching to buy my listing/property. I’d rather discover that on day 1, than day 35 when they cancel and I have to start over with a new buyer.
  2. Price Drops Right Now – Since it is Winter & higher interest rates, I am more aggressively dropping the asking price on our finished flips which are currently on the market.

The way I view price drops-I am paying for the privilege of more buyer interest through a price drop. Right now, this weekend, I’m willing to pay MORE (by dropping the price further than I would if rates were flat) to attract the smaller number of buyers currently in the market to buy my house.

If you have any retail listings currently on the market which aren’t getting interest, it might be time to revisit the price more aggressively than you might have before the rates increased.

Jewels of Wisdom Newsletter – Today, I will multiply my value 100 fold

Today I will multiply my value a hundredfold.

I will commit not the terrible crime of aiming too low.

I will do the work that a failure will not do.

I will always let my reach exceed my grasp.

I will never be content with my performance in the market.

I will always raise my goals as soon as they are attained.

I will always strive to make the next hour better than this one.

I will always announce my goals to the world.

-Og Mandino “The Greatest Salesman in the World”

I am now on Scroll VIII of The Greatest Salesman in the World. (regular readers remember I started back in April) This 100 fold increase has already happened for me-more than once-since I first did the 10 scrolls as prescribed back in 2003. I look forward to this happening again in the future – which for me includes doubling the revenue of Diamond Equity in 2027.

Are you also working through the scrolls in The Greatest Salesman in the World? Reply and let me know which scroll you’re currently reading.

Here, you can: 

  • Buy Deals Here (49 Avail around the US)
  • Loan Money to Fund our Fix & Flip Deals

Featured Deal: paying 3% Buyer Broker Commission. $1M NNN Leased 35K Sq. Ft. Warehouse 9.9% Cap Rate  (Call Sasha 312-566-7274)

We have offers in hand and are close to accepting on this featured deal. If you have any interest in this one, I suggest calling Sasha right now to get the ball rolling.

How to Time the Real Estate Market

As we head into the Winter market, available inventory dwindles slightly along with Buyer activity. Use this to your advantage and buy when everyone else is on the sidelines.

Specifically, you’re buying houses you can flip-so that you buy now, renovate through maybe Dec/Jan, then list & sell into the vibrant Spring Market. We notice 10% higher pricing from Retail Buyers in the Spring Market than we do the Fall or Winter. Every year, every market we operate.

But Dan, do you see the Interest Rates? 

7.57% for the 30 year Mortgage!

Yes, and the higher rates are creating fear in the market. Many buyers are nervous and for that reason will also sit out on the sideline.

“When People are Fearful, BE GREEDY” – Warren Buffett investing rule

I believe we are in a short window of higher interest rates (defined as 7%+). As buyers are sidelined from fear, those willing to take the risk can get a better deal right now than they could 2 months ago.  Just make the offer that makes sense to you-no matter what the asking price is.

My prediction: the Fed raised rates mostly because the inflation numbers were high on account of oil & gas prices skyrocketing due to the conflict in Iran. Oil produces now have a large incentive to produce and sell as much oil as possible, often activating discovery and production that doesn’t work at lower prices. They want to capture the record pricing for those gallons available in today’s market price.

That increase in production will eventually lower the prices and inflation will fall. I believe this happens by March, the inflation figures that the Fed watches will fall, and rates in the bond market will decline – along with the 30 year mortgage going back under 7%.

Should this occur, and you buy your flip now while the market is scared, you end up selling into a favorable Spring Market AND favorable interest rate environment. When rates go down there is normally an increase in buyer actiivty.

Your action item: go find flips & MAKE OFFERS!!

Here are 49 potential deals for you to buy

Now let’s multiply our value 100 fold!!

R.E.I. Jewels of Wisdom 
High Volume House Flipping & Commercial Real Estate

Join 25,000+ readers and get instant access to “7 Sources of Off Market Deals” for free.

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Real Estate Investing Podcast designed to help experienced real estate investors make & keep more money. The REI Diamonds Show is a loose discussion between Dan & expert guests focused on strategies for avoiding risk & generating profits. Many of the guests generate more than $1 Million in profit per year-investing in real estate.

Large Group Short Term Rental Investment With Andrew Llewellyn
byREI Diamonds

Host Dan Breslin and Andrew Llewellyn discuss the unique and profitable real estate strategy of converting distressed, non-liquid commercial office buildings into highly liquid, cash-flowing residential-style boutique hotels designed for large group short term rentals. Llewellyn’s model works by acquiring property for the value of the “dirt” and transforming the asset. He capitalizes on Louisville’s favorable zoning and consistent demand, ensuring his properties are premium experiences rather than commodity rentals. Llewellyn views the operation as a “cash manufacturing machine,” optimizing efficiency and turnover using operational principles from books like Traction and The Goal.

For Access to Real Estate Deals You can Buy & Sell for Profit:

https://AccessOffMarketDeals.com/podcast/

Visit the Episode Description & Transcript Here:

Large Group Short Term Rental Investment With Andrew Llewellyn

Andrew Llewellyn & I Discuss Large Group Short Term Rental Investment:

  • The Strategic Advantage of Office- to Apartments Conversion  (00:26:50-00:28:37)
  • Acquisition and Build Out Costs for the A12 Project (00:28:58-00:30:12)
  • Key Market Factors for the Duplicating the Strategy (00:31:16-00:37:09)
  • Future Pivot to Flex Space and Operational Strategy (00:40:04-00:46:26)

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Social Media Links:

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Jewels of Wisdom Newsletter

R.E.I. Jewels of Wisdom 
High Volume House Flipping & Commercial Real Estate

Join 25,000+ readers and get instant access to “7 Sources of Off Market Deals” for free.