Risk Disclaimer: This investment opportunity has certain inherent risk factors. These investments are not backed by the FDIC.
The DLP Capital Partners Business Strategy is to profit from current market conditions and the respective opportunities created. Our two-part business strategy enables both passive (DLP Capital Partners) and active approaches (Direct Lending Partners):
Passive option: There are few options available today to achieve high yields and low-risk. Given the low-interest rate environment, market instability and uncertainty, a desire for high-yield, fixed and preferred returns, for those passive accredited investors who do not want to actively acquire, improve and profit from real estate transactions, we provide various fund options. Additional benefits include a very low risk of daily principal investment loss and consistent distribution or compounding interest options.
Active option: Utilizing Direct Lending Partners’ loans, we provide real estate investors capital to purchase and renovate distressed and value-add real estate residential properties. The current economic environment and government regulations have made it very difficult for banks to participate in the distressed real estate space. Direct Lending Partners is filling this void.
DLP Capital Partners focuses on investing both equity and debt, in undervalued distressed real estate assets, with opportunities to add value. These assets are primarily single family homes and apartments — assets that provide the opportunity for consistent, solid income as a primary or secondary investment approach. Our strategy has been tested, proven, and tweaked over the past decade and has been utilized to complete more than 1,000 real estate acquisitions. This strategy can be broken out further into 3 main concentrations.
Private Lending to Real Estate Investors: Through DLP Capital Partners’ sister company, Direct Lending Partner, DLP provides real estate investors with capital, knowledge, and resources to assist them with purchasing and renovating distressed properties, and then either selling or refinancing DLP Capital Partners out of the property, with a permanent source of financing. The majority of these loans are on single family homes, typically 6 months in duration, and provide capital for the purchase and renovation. They are first position loans and typically range between 50 and 65% of the repaired value (and 70-80% of the total cost), which means the borrower is investing significant capital into the property.
Multi-Family Acquisition and Stabilization: DLP Capital Partners is actively acquiring distressed and undervalued multi-family apartment communities. The focus is on 60-300 unit apartment communities, but we also acquire smaller properties in the 15-100 unit size in select markets. DLP’s strategy is to add value through better management, physical improvements, or both. Typically, the objective is to stabilize the property within 3-15 months and then hold the asset for the subsequent 5+ years.
Single Family Acquisition and Renovation: DLP’s first investment strategy, and one that has been executed on hundreds of times — purchasing distressed single-family homes, renovating and then either selling or leasing them. Currently, DLP purchases 5-7 homes on average each month, with the primary goal to “flip or wholesale” them quickly.