Kim Lisa TaylorSecurities Attorney, Founder, Syndication Attorneys, PLLC · Corporate Securities Attorney, 2x Best-Selling Author, Nationwide Speaker | Private Placement

1981 Real Estate Hacks: Surviving 17% Interest Rates with Don Konipol

19 Feb 2025 · 1 min

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In this brief excerpt, Don Konipol recounts his experience buying a single‑family home in 1981 when mortgage rates peaked around 17%. Traditional bank financing was essentially unavailable, so the transaction was structured as seller‑financing. Konipol negotiated a 6% interest rate on a wrapped note, rented out the property, and collected the mortgage payments himself. Through this arrangement he observed firsthand how compound interest operates on the cash flow from the rental, highlighting a practical hack for navigating extreme interest‑rate environments.

Chapters

During the time I had purchased, and, you know, 1981, people don't believe that now, but mortgage interest rates were about 17%. And so there was no, there was virtually no third-party mortgage financing. Everything was seller-financed. And I had purchased a single-family home, rented it. We agreed on a price. And, uh, I wrapped the note. It was a 6% mortgage. I wrapped it into a mortgage and collected the payments. And at that point, I realized that, uh, you know, compound interest works.