q3 dlp capital advisors recap dlp capital expects to raise about $6,000,000 of new capital,...

Download Q3 DLP Capital Advisors Recap DLP Capital expects to raise about $6,000,000 of new capital, primarily

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  • DLP Capital Advisors | 701 W. Broad St., Suite 200, Bethlehem, PA 18018 | dlpcapitaladvisors.com

    Q3 DLP Capital Advisors Recap

    Q3 was an excellent quarter for DLP Capital Advisors.

    Some of the highlights of the quarter:

     Investor Informational Dinner was held on July 28th at Blue Grill house

     Quarterly Investor Dinner was held July 30th at the Saucon Valley Country Club

     First Florida Investment dinner was held on September 22nd at the Palencia Country Club

     Originated 29 private loans to investors

     Acquired 17 properties for just over $10,000,000.

     Investor Logins rolled out to all investors in July

     New website launched! DLPCapitaladvisors.com

     Investor Information Portal Set up: http://dlpcapitaladvisors.com/portal/


     Audited Financials Complete for the DLP Lending Fund

     Over $8,000,000 of new capital invested with DLP Capital Advisors

     15 New Investors made investments

     19 existing investors made additional investments

    Q3 Fund Performance

     14.17% annualized net return to investors in the DLP Fixed Fund

     14.87% annualized net return to investors in the DLP Lending Fund

     13.02% annualized net return to investors in the DLP Income & Growth Fund

     10.1% annualized net return to all FIXED return investors

  • DLP Capital Advisors | 701 W. Broad St., Suite 200, Bethlehem, PA 18018 | dlpcapitaladvisors.com

    Q3 2016 Market Review

    Within the Lehigh Valley, the center of the “DLP investment world,” the market was overall very strong.

    There was a 3.5% decrease in sales volume, but homes are sold 12.7% faster year over year. In addition,

    the List to Sale ratio increased from 97.16% to 97.62%. We believe the only reason sales were down in

    Q3 year over year, was the incredibly low inventory. The Lehigh Valley has the lowest number of homes

    on the market, again, in over a decade with less than 3.5 months of inventory. Most exciting of all,

    home prices were up nearly 5% year over year, bringing prices from being flat for the year compared to

    2015, to now being up nearly 2%.

    In Lehigh Valley: 2016 Q3 % Change YTD % Change

    Number of home sales 2,113 -3.5% 5,750 +6.68%

    Average home sale price $216,584 +4.95% $199,625 +1.93%

    Average per sq. ft. $112.98 +4.2% $109.24 +1.53%

    Q3 Rehab Funding Market Recap

    The rehab market during the 3rd quarter had a solid quarter once again. The volume of on market

    distress deals continue to decrease, but the opportunities are still available, although a great percentage

    of deals are off market. Despite deals being harder to find, the positive news is that homes are selling

    much faster and easier decreasing risk for the borrower and the lender, as well as increasing profits for

    the borrower.

    Q4 2016 Real Estate Market Outlook

    We expect the low inventory levels of the real estate market to continue to slow sales growth over the

    course of the 4th quarter. We expect flat sales in Q4 compared to Q4 2015 due to the low inventory. We

    do expect to see continued price growth in Q4, with an expectation of 4-6% increase year over year.

    Although the low inventory levels will hamper home sales, it will conversely help the residential

    investment market as the previously distressed properties are being brought on the market. Also aiding

    the investment market has been the consistently low vacancy rates in the area, which are expected to

    continue through the quarter. As renovation of the distressed properties is completed, investors are

    able to successfully lease/stabilize the property in a shortened amount of time.

    Overall Market Expectations Compared to Q3:

    Sale Volume

    Supply Prices Interest Rates

    Rental Occupancy

    Rent Price

  • DLP Capital Advisors | 701 W. Broad St., Suite 200, Bethlehem, PA 18018 | dlpcapitaladvisors.com

    Q4 DLP Capital Advisors Outlook

    Q4 is set to be a very strong quarter for DLP Capital Advisors.

    DLP Capital Advisors is raising capital and growing the DLP Lending Fund and the DLP Income & Growth

    Fund; and is in the process of either launching the DLP Equity Fund II, LLC or re-opening DLP Equity Fund

    in Q4.

    DLP Capital expects to achieve our targeted returns in all four of our Funds in Q4:

     Lending Fund (11-16%)

     Fixed Fund (11-14%)

     Income & Growth Fund (11-18%)

     Equity Fund (22-25% annual average over the 5-7 year Fund)

    DLP Capital expects to raise about $6,000,000 of new capital, primarily into the DLP Lending Fund; DLP

    Income & Growth Fund; and the New DLP Equity Fund II, LLC/DLP Equity Fund I, LP in Q4.

    DLP expects to acquire over 400 apartments and houses in Q4 as well as originate more than 40 loans to

    real estate investors. This is expected to be the biggest quarter to date for both acquisitions and


    Commonly Asked Questions

    Q: Why do flippers borrow from you if rates at banks are lower?

    A: Securing funding through banks is often a challenge for flippers since banks typically only fund 75% of

    the purchase price of a property, while the borrower needs money to cover the purchase AND rehab.

    Direct Lending Partner uses a common sense approach in addition to the same underwriting standards

    banks follow to grant loans based on the speculative value of the property after repairs. Also, the typical

    loan duration for Direct Lending Partner is only 6 months, so higher interest rates aren’t a big factor for


    Q: Can interest be compounded?

    A: Investors have the option of taking monthly distributions or letting interest compound and grow. You

    can switch at any time and/or do a combination (e.g, take a $1000 distribution each month and allow

    the remainder of your returns to compound).

    Q: Are there any hidden fees in your stated return rates?

    A: Our return rates indicate exactly what you will earn, with no hidden costs. DLP Capital Advisors takes

    care of any fees.

    Q: If I invest in more than one Fund, does the minimum investment apply to each account?

    A: Investments are considered collectively, so you can split your minimum investments between

    accounts (e.g., $100,000 in a Note Fund and $150, 000 in an Equity Fund to satisfy a $250,000 minimum

  • DLP Capital Advisors | 701 W. Broad St., Suite 200, Bethlehem, PA 18018 | dlpcapitaladvisors.com

    investment requirement in the Equity Fund). Combined investments also count toward investment

    thresholds for Return Rates.

    DLP Capital Advisors Equity Investment Case Study:

    Property: Kensington Cottages

    Location: Orlando, Florida

    Units: 170 Units

    Description: Located within 9 miles of Downtown Orlando, which is home to Universal Studios, Amway Center, and many government offices. Orlando is one of the top performing apartment markets in the country. For Q3 2015, Orlando recorded average occupancy of 95.7% and average rents of $1,070, which represents a 5.1% increase in rents year over year. According to MPF Research, Central Florida is projected to experience as much as 5% growth in rent each year for the next 3 years.

    Purchase Price: $7,345,000

    Equity Investment: $2,000,000

    Unit Breakdown:

    Financial Overview:

    Cash on Cash Return (Year 1): 12.48%, net to investors

    Five Year Project Return: 29.93%, net to investors

  • DLP Capital Advisors | 701 W. Broad St., Suite 200, Bethlehem, PA 18018 | dlpcapitaladvisors.com

    DLP Capital Advisors Loan Investment Case Study:

    Loan Amount: $115,000

    Value: $205,000

    Loan to Value: 56.10%

    Loan to Cost: 72.76%

    Borrower Credit Score: 800

    Borrower Experience Level: The Borrower is an experienced real estate investor that completed three real estate flips so far in 2016. The average profit per flip was $38k.

    Borrower Net Worth: $1,874,000 (including $427,000 in liquid securities)

    Interest Rate: 13.20%

    Length of Loan: 6 months

    Result of Loan: The property was successfully renovated and is listed for sale. Only three and a half

    months have passed from the time the loan was approved to the property being fully renovated a listed

    for re-sale. The property is listed for sale at a $15k premium to the appraised value, which coincides

    with the current market comps.

    Current Offerings:

    DLP Capital Advisors is currently accepting Equity investors into the DLP Lending Fund, LLC; DLP Income

    & Growth Fund I, LLC; and the DLP Equity Fund II, LLC, as well as Note Holders.

    The targeted returns for equity investors are 11-20%.

    The FIXED returns to note holders are 7-10%.

  • DLP Capital Advisors | 701 W. Broad St., Suite 200, Bethlehem, PA 18018 | dlpcapitaladvisors.com

    DLP Lending Fund, LLC Equity Offering

    This is for Accredited Investors only*. The DLP Lending Fund lends short-term, high yield capital to real estate investors, thus providing strong, consistent, and predictable returns. The fund does not own real estate di