DDB Capital on Interest Rates: Lower Borrowing Costs Don't Justify Overpaying for Land

ALPHARETTA, Ga., Nov. 6, 2026 — DDB Capital Fund LLC is outlining its approach to interest-rate risk in residential land investing. The firm evaluates acquisition prices against supportable builder lot pricing, infrastructure costs, and financing expenses, without relying on future rate cuts to make a project viable.

"Lower interest rates can improve a project's economics, but they don't fix an excessive land price," said Derek Distenfield, Managing Director of DDB Capital. "We want investments that make sense under realistic financing assumptions. Any benefit from lower rates should strengthen the margin of safety rather than become the reason we buy."

DDB Capital also evaluates how slower lot sales and longer approval timelines could affect carrying costs and the timing of investor proceeds.

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SOURCE DDB Capital