Category: Jewels of Wisdom Newsletter

How is the Iran War is Affecting Real Estate

The following are my 3 observations from the 181 transactions I’m currently in the middle of closing. 

1. Investor activity is increasing
2. Interest rates are trending higher, again.
3. Business as usual

Investor activity is increasing – Anytime the stock market drops in value 10% or more, we see many investors who haven’t bought in a while back in the market. There is something wonderful about the slower, yet more predictable and often much larger paydays we enjoy in real estate when compared to the stock market.

While activity is up, I don’t see this being a level of activity that is pushing prices up the way we saw in Covid.

Interest rates are trending higher, again. War usually causes inflation as demand for oil to fuel a war causes prices to rise. This war is actually damaging many of the oil producing infrastructure which will take years to rebuild-once the conflict ceases. Additionally, the Strait of Hormuz being choked by Iran is driving up the price of oil

When oil costs more, that cost is passed along to the consumer. You’ve probably noticed the higher gas prices already. Higher prices make it difficult, if not impossible for the Fed to lower rates.

The Silver Lining – Since rates are not dropping, and might even increase, we are seeing buyer activity in a bit of a rush to lock in their deals under current rates-hoping to refi after things settle down.

Business as Usual – Rates skyrocketed back in 2022 and it seemed like the end of the world. Transaction volume has dramatically slowed, but most have found a way to continue operating their business under the new conditions.

This feels like business as usual. For us, here at Diamond Equity, business as usually has meant figuring out how to make deals happen no matter what conditions exist. We will not “sit out the market” and wait for lower rates, better deals, or the end of the war.

Every morning in Africa both a gazelle & lion will awake. Each has the challenge to outrun each other. The lion must win, or it will starve to death. The gazelle must win, or it will be eaten. The lesson? Wake & up run as though your life depends on it. This is business as usual no matter what geopolitical or economic conditions may exist.

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Currently Owned, and Buying throughout the US:

• Value Add Deals, Ideally occupied with below market rents
• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR

If you’re selling a property that could use some “value add”, reply to this email with details including the address, size, price, & photos, if available, and we can get the ball rolling.

Real Estate is a HASSLE

1. Owning real estate is a hassle.
2. Selling real estate is a hassle.
3. Buying real estate is a hassle too.

That said, we all know & agree there are fortunes to be had buying, owning, & selling real estate!!

Owning real estate for rental income is a hassle because it’s actually NOT PASSIVE INCOME. In order to reap the benefit of rental real estate, whether commercial or residential, you MUST manage the deal closely.

Even when you have professional property management, you still must monitor their decisions & actions for effectiveness. When vacancy comes, especially in larger commercial & industrial property, the cost to bring in new tenants often runs multiple six figures not including the 1-2 year (or much more) carrying cost while the property is on the market for that lease.

Selling real estate is a hassle too. Many brokers read this email-and they’re handsomely compensated for each transaction because of their skill in navigating the market and getting the deal to closing. If it was as easy as selling a stock (click of a button), the brokerage business wouldn’t exist.

The difficulty in selling may also be the feature that saves you from panic selling on bad news-as so many stock investors are doing as you read this because of the war in Iran. The difficulty in selling builds a safetly into accidentally selling the real estate you wished you could keep.

That said, if you choose to sell me a property, I strive to make every aspect of our transaction much more like selling a stock. 

After closing, I want you to say, “Wow, I never knew selling that property would be so easy & I cannot believe how fast we got to closing!” (We have closed some residential deals same day, most commercial/industrial deals close in 75 days or less-usually environmental is the hold up)

Buying real estate is a hassle too. First you make the offer, then it’s accepted. Often you run around like a headless chicken to obtain a loan. Doesn’t matter if it’s a hard money or conventional lender-it’s a hassle. Then the insurance…

On distressed property, like vacant houses, or much more challenging, vacant commercial & industrial property, obtaining ANY insurance can be difficult. Many insurers simply will not insure a high vacancy commercial property. Again, when we are buying, we are already aware of this challenge and have the resources to get the deal to closing anyway.

Why Am I Complaining About the Hassle of Real Estate today?

I’m in the middle of closing out a small residential 6 flat I own personally in Chicago. I renovated the entire building, owned it for 5 years, and am earning about a 2% profit on the deal.

The buyer is getting a great deal and is a much better person to own & operate this deal. He and his wife will be a much better manager than me & my property managment company because he manages himself.

Even though I’m basically breaking even on the deal, I am happy with the transaction. The price is fair and I am being released from the burden of owning & managing that property. The scale of Diamond Equity is dramatically larger than it was 5 years ago and the deal is a distraction.

Additionally, the new owner will find better tenants than I could. Those tenants will be happier with that personal managment structure than I could provide there. I feel like I’m leaving the neighborhood & building in a better position than I found it and am giving a solid foundation for the new owner to prosper there over the next few years. Grateful to be part of this deal.

Do you (or any clients) own any property that’s become a hassle?  Here’s what I’m buying:

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Currently Owned, and Buying throughout the US:

• Value Add Deals, Ideally occupied with below market rents
• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR

If you’re selling a property that could use some “value add”, reply to this email with details including the address, size, price, & photos, if available, and we can get the ball rolling.

My dad has been here in Florida with me often this Winter. He just headed back home yesterday. Of course we were reminiscing about the early days of Diamond Equity and the birth of the name popped into my mind.

“Diamond Equity Investments”

I remember handing my first business card back in 2006 to Craig Marvel, (a volume flipper, landlord, & private lender) ,a few weeks after we met and he said, “I like that name!” Those words of approval seemed to ring out in my ears as he said them. Those exact words I still remember nearly 20 years later.

(At the time I was broke, had bad credit, and not even a car. How dare I declare myself a real estate investor…)

That was summer 2006, just a month or two before my first fix & flip deal. Since then I’ve been a part of more than 3,000 myself, and well over 1,000 of those with Craig, who eventually joined Diamond Equity as a partner.

So How did I Come up with Diamond Equity Investments?

I remember the name coming in a flash. Like the future suddenly became visible in that moment.

I liked the Diamond for the reason that when you find a diamond, it is rough and requires an artistic investment of time & money to become something beautiful and more valuable than it was when you found it.

This is just like profitable real estate deals. You must artfully improve a property within the constraints of the budget to create something more beautiful & move valuable than it was when you found it.

You can listen to this past podcast my dad & I recorded about the early days of Diamond Equity and his career as a Private Money Lender.

Here’s What Diamond Equity Investments Does

Remember, Diamond Equity is a MARKET MAKER. We will make an offer an nearly any property anywhere in the country. We provide liquidity. When you want out quickly, without the repairs, lease up, inspections, time on market, etc, you call Diamond Equity & just sell it as is!

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Currently Owned, and Buying throughout the US:

• Value Add Deals, Ideally occupied with below market rents
• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR

If you’re selling a property that could use some “value add”, reply to this email with details including the address, size, price, & photos, if available, and we can get the ball rolling.

Diamond Equity is a MARKET MAKER. We Buy & Sell Real Estate of all asset classes throughout the U.S. from our office locations in each Atlanta, GA, Philadelphia, PA, & Chicago, IL.

We don’t focus on one asset class, we focus on providing liquidity, a quick, private, direct sale for properties that usually have some type of problem: vacancy, needs work, under market rents, etc. We’ll buy it as is, in it’s current condition.

Here are a few examples of current deals:

(We occasionally offer Limited Partner participation on deals like this)

1. $20M Small Bay Industrial, Washington, DC– This is 90% occupied & under contract at an 8.5% cap rate. There are good tenants, including the US gov’t. This is a fair deal with upside in leasing the other 10%. There may be a small space remaining in the capital raise once we clear due diligence in the next 3 weeks.
2. 63 Unit Apartment Development, Edgewood, WA– We are currently working on an entitlement deal in Edgewood Washington which targets a $48K per unit exit ($3.024M) after getting plans approved (shovel ready). Based on past deals, the soft cost is estimated at $250K-$400K and likely to take 12 months or more. We would consider selling this parcel now for $1.217M in the event you’d like to work on this $1M profit deal.
3. 87,000 Sq. Ft. Self Storage Development, Lawrenceville, GA- 3rd floor is going up as we speak. We are shooting for a 5/15 certificate of occupancy date. This project will be rented & stabilized by the end of next year. Grateful to those readers who are my partner in this project.

Here are a few examples of recently closed deals:

1. 60,000 Sq. Ft. Shopping Center, Las Vegas, NV – Bought at 65% occupancy and sold at 95% occupancy 3 years later. We invested about $4.075M in capex, including tenant improvements. It sold for $16.75M.
2. 30,000 Sq. Ft. Warehouse, Memphis, TN – We sold this property on a rent to own contract with a 5 year lease and a 3 year option term. The price increased at the end of each year before expiring at the end of year 3. This incentivized the tenant to become the owner quickly, which they did in December 2025.
3. 37 Miscellaneous Residential Deals, throughout the U.S. – We have been aggressively scaling our residential flipping business throughout the entire US – even Alaska!! (a surprisingly vibrant & expensive market)

Here’s What Diamond Equity Does

Remember, Diamond Equity is a MARKET MAKER. We will make an offer an nearly any property anywhere in the country. We provide liquidity. When you want out quickly, without the repairs, lease up, inspections, time on market, etc, you call Diamond Equity & just sell it as is!

If you’re selling a property that could use some “value add”, reply to this email with details including the address, size, price, & photos, if available, and we can get the ball rolling.

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Currently Owned, and Still Buying anywhere in the US:

• Value Add Deals, Ideally occupied with below market rents
• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR

Let’s talk about MAKING deals today. This is different than “presenting” offers. Making Deals implies ACTION. Presenting offers is passive. Deal Maker’s show 3 qualities which make most people uncomfortable.

A Deal Maker is:

1. Decisive – They can decide quickly what they’ll offer. Deals don’t wait. They move quickly.
2. Bold – They take on more risk when buying “as-Is.” That’s how they win better deals.
3. Annoying – Offer “presenters” email the offer and never sent a follow up email, let alone a phone call. (think, weak, newer agent who hasn’t learned the game & has zero confidence in their offer). Deal Makers FOLLOW UP after the offer is made. They are borderline annoying, but, you remember they made that offer, you remember the exact purchase price they offered, and, of course, you know their name because they just keep showing up. This annoying persistence MAKES deals.

A lesson on Deal Making from the Bible, Luke 11:5

5. Then Jesus said to them, “Suppose you have a friend, and you go to him at midnight and say, ‘Friend, lend me three loaves of bread; 6 a friend of mine on a journey has come to me, and I have no food to offer him.’ 7 And suppose the one inside answers, ‘Don’t bother me. The door is already locked, and my children and I are in bed. I can’t get up and give you anything.’ 8 I tell you, even though he will not get up and give you the bread because of friendship, yet because of your shameless audacity he will surely get up and give you as much as you need.

9 “So I say to you: Ask and it will be given to you; seek and you will find; knock and the door will be opened to you.”

In those days, when a traveler arrived at your home from afar, it was the custom to feed them immediately. Imagine, it’s like 3:00 am, and you have to go knock on your neighbor’s house to ask for bread.  Sounds annoying, right? Yet, you knock, they say no. You knock again, they still say no. You knock a 3rd time, they say “Yes”.

The Greatest Deal Makers live this Biblical principle. “Ask and it will be given to you; seek and you will find; knock and the door will be opened to you.”

Here are 31 Pre-Made Deals For Sale

Worth noting, we routinely accept Offers that are NOT the highest dollar amount. The strength of these deals is certainty. Buyers who place large, non-refundable earnest money deposits, waive inspections, and close quickly win those deals over slow closing, due diligence heavy offers which are expected to die, or at minimum, renegotiate the price prior to close. I’d accept the offer from the known Deal Maker at a lower price over a “presented” higher offer any day of the week.

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Currently Owned, and Will Buy More anywhere in the US:

• Value Add Deals, Ideally occupied with below market rents
• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR

I’m also Grateful for:

• Buyers & Brokers who’ve Worked on Our Deals
• Accredited Investors who’ve Invested in Our Deals
• Deal Makers who’ve Joined Our Team
• Deal Makers who’ve sent deals to me for review to invest or buy.
• Fellow Wisdom Seekers who continue reading these emails!!

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Currently Owned, and Will Buy More anywhere in the US:

• Value Add Deals, Ideally occupied with below market rents
• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR

Why I Chose a $55 Trillion “Pie”

We often hear about the “glamour” industries—tech, music, professional sports. But if you want to understand where the most reliable wealth is actually built, you have to look at the TAM (Total Addressable Market).

Think of TAM as the size of the pie. Before you commit your capital or your career to an opportunity, you have to ask: How big is the upside?

Let’s look at the numbers:

• The Global Music Business: ~$100 Billion TAM. It produces icons we all know—Jay-Z, Taylor Swift, Beyoncé. But there are only 5 music billionaires on the Forbes list.
• U.S. Residential Real Estate: ~$55 Trillion TAM.

In Real Estate, there are 25 billionaires on the Forbes 400. You likely haven’t heard of Donald Bren (who tops that list at $19B), and that’s the point. Real estate creates massive, “quiet” wealth because the market is so vast and the demand is permanent.

When I looked at the sheer scale, the constant demand, and the ticket size of every deal, I realized this wasn’t just a business—it was the safest, most proven path to long-term wealth.

That’s why I buy where the pie is biggest.

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Have some Pie I can Buy?? (must be value add)

• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR
• Ideally long term rented asset with below market rents

Real Estate Prices Often go DOWN (by 87%!!)

Last week a 1.4M sq. ft. office building at 175 W. Jackson Blvd, in downtown Chicago sold for approx $41M ($29/ft). This is down 87% from Brookfield Asset Management’s original purchase price of $306M in 2018 (source  Bisnow)

What Causes Such a Dramatic Drop in Value?

Leases. In commercial real estate 90% of the value of a property is created by the lease. Jackson Blvd had a 56% occupancy rate in June of last year. Lenders will typically avoiding lending on unstable buildings like this, because the cost to backfill that 44% vacancy is tens of millions of dollars.

Why not just sign new leases?

Every new lease in most commercial real estate asset classes requires TI (tenant improvement $). Office requires new layout, reconfiguring fire sprinklers, new carpet, etc. Industrial often requires electrical & lighting upgrades as well as new roofing & sprinkler system repair. Retail requires cash payment to offset the cost for the tenant to build out their space. And of course, even apartments need to be painted & functional to lease. Not to mention leasing commissions for every asset class mentioned here.

For Sale at 50% Off!!

• Dark Rite Aid locations, sold 3 years ago $3.5M. Value is $1M or less with no lease.
• Dark Dollar General locations, sold 5 years ago $1M. Value is $200K, maybe.
• Dark Burger King, Chicago suburb. Sold 4 years ago $2.8M. Value is $500K, maybe.

In any of the 3 examples above, I’d reluctantly buy. I would feel like I’m overpaying because I know I’m going to bleed money for years until they gain a new tenant. These aren’t great deals, they’re barely acceptable deals.

The lesson here is understanding the risk of tenants moving out or going bankrupt. No more lease, no more retail value. Most owners of vacant property like this didn’t think the tenant would move or fail. They learned the hard way.

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We Own, Operate, & Buy (Vacant OR Leased)

• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR
• Ideally long term rented asset with below market rents

One Secret to Scaling a Real Estate Investment Business

First, remember that a real estate investment business is better thought of as a “market trading” system. Successful market trading systems require a set of principles, or rules to guide effective decisions based on data & intuition, NOT emotion or ego. Many bad deals are made because of emotion & ego. (Read “Alpha Trader” to understand the Market Trader’s mindset)

We have a set of 9 Operating Principles at Diamond Equity

Our 9 Operating Principles have become the guiding rules-helping most in situations where emotions become charged-which could result in poor outcomes. Instead, by framing our thoughts and decisions within those operating principles-by putting those principles before personalities- we create better outcomes.

How to Form Superior Partnerships:
Operating Principle #4: Be the Best Partner Possible –  Team First and Exceed Expectations

If I’m your partner, I am doing my best to deliver 100-fold the value that you’re expecting. I hope to exceed your expectations. If you’re doing your best to deliver 100-fold the value that I’m expecting we create exponential results. This is how 1 plus 1 equals 7.

Being the Best Partner in a Real Estate Transaction

As a BUYER – Here at Diamond Equity, as we sell property, we routinely accept offers which are NOT the highest price & not the highest net. We often judge the offer on whether we expect the BUYER to be the Best PARTNER throughout the transaction, not necessarily the best bottom line

The Best Partner (buyer) goes to closing as agreed, on time, or ahead of schedule with no renegotiation attempts. While this partner doesn’t always present the highest price, the certainty of closing wins them the deal.

As a BROKER – Brokers earn the reputation of being the best partner possible by making sure the offers they present on behalf of buyers will close as mentioned above.

The Best Brokers have a bulletproof reputation-being unwilling to work with buyers who will not perform as agreed. These brokers, as the buyers mentioned above, often win deals because of their reputation for being the best partner possible.

How to Apply the Principle When Deciding Whether to Make a Deal

The buyer & seller in a transaction engage in a sort of partnership, a short term marriage, to consummate at the closing table. The buyer will risk money conducting due diligence. The seller will lose the opportunity to remain on market by choosing to deal with that buyer.

When you are deciding whether to make a deal at a verbally agreed upon price, ask yourself, “Will this Buyer/Seller be the Best Partner Possible?”

If the Answer is Yes, you do the deal. Sometimes you do the deal at a slightly higher purchase price (when you are the buyer) accepting a little less profit to win the deal and go to closing. Or, you sell the deal at a slightly lower price (when you are the seller) because you know there is no renegotiation coming. I prefer being that latter type of buyer-my offer is probably not the highest, but is the most certain to close.

If the Answer is No, you still might do the deal, but price in the risk. You limit your purchase price to increase your expected profit to account for that added risk up front (when you are a buyer in commercial property, you routinely invest $25K-$30K in environmental & property inspections, only to watch the deal die). If selling to a less than ideal buyer, a higher price must be sought to account for that renegotiation likely to occur late in the deal, maybe even at the settlement table (when you are the seller).

The bottom line is this: Real estate investing is a high stakes game where thousands & millions can be gained or lost. The partners you select with whom to do deals will be a major factor in which outcome you experience. Be the Best Partner Possible & choose Partners who would agree in word & ACTION.

Perhaps this principle belongs on your own list of Operating Principles by which you run your investment business?

Perhaps this principle becomes your 1st Operating Principle on a list which you develop over time to amplify your own results?

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We Own, Operate, & Buy:

• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR
• Ideally long term rented asset with below market rents

2026 is the Best Market You’ve Experienced Since 2021

2021 was a true Black Swan event (read Talib’s Black Swan). Once in a lifetime circumstance caused by the perfect storm of millenials realizing they want home ownership (& could afford it!), airbnb bubble, hedge fund cash buyers (remember Zillow was buying houses), covid craziness, and of course, and probably most impactful, near-zero interest rates. There was A LOT OF LUCK in the market, and it took only a moderate level of skill to succeed

However, I Declare 2026 will be BETTER than 2021!!

This time, now, you have 5 more years of life experience. 5 more years of understanding values, sales & follow up skills, and valuable wisdom. If you’re like me, you probably didn’t quite see 2021 coming. Now it’s different because it is plain to see that the market is poised to provide your best year ever.  Here’s why:

Here’s Why the 2026 Market Conditions are PERFECT for Investors & Brokers 

We have been STARVED of transaction volume since 2022. It is been tough, watching the number of closed deals (in the entire US) decline over the past 4 years. This was caused by 3 things which are disappearing:

1. 7% interest rates – Rates will be 6% or lower this year.
2. Low Inventory – Inventory is up 20% across the US. I predict this trend will continue.
3. Unaffordable houses – Houses have been becoming more affordable as the market demands price drops & seller concessions. Lower interest rates help with affordability. Finally, income has been rising over the past 4 years. Houses are trending back toward affordability and the Trump administration is working to keep the trend moving favorably.

Now, Here how YOU Make 2026 Your Best Year Ever

Today. January 25, 2026, you commit to building your momentum for the year NOW. This is an urgent call to action: Get as many deals going in the next 6-8 weeks as you possibly can. Buy now, before the Spring Market creates higher prices. Buy now to own the inventory to sell into that Spring Market-when higher prices can be had.

Time the market by MAKING OFFERS. Sunday afternoon, after church time, is a GREAT time to make deals. Much of the real estate business occurs on the weekend. Even better if there is snow on the ground-because folks answer their phones since they’re stuck inside. Build your momentum now, in January, then stay strong for the rest of the year. You can thank me in December when you look back and realize that yes, in 2026 you had your best year ever!!

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We Own, Operate, & Buy:

• Industrial & Commercial Property, 10K sq. ft. – 250K sq. ft.
• Mobile Home Communities (50 pad minimum)
• Well located Retail Development Sites
• Residential MFR & SFR
• Ideally long term rented asset with below market rents