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Case Studies

DLP Capital Partners 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.

DLP Capital Partners Loan Investment Case Study:

Loan Amount:  $315,000

Value:  $825,000

Loan to Value:  38.18%

Loan to Cost:  68%

Borrower Credit Score:  787

Borrower Experience Level:  The Borrower is a full service real estate company in the Philadelphia area. The Borrower specializes in assisting customers with buying, selling, and renting investment real estate.

Borrower Net Worth:  $3,762,000

Interest Rate: 14.99%

Length of Loan:  6 months

Result of Loan:  The property was successfully renovated and listed for sale.  Upon listing, the property was quickly sold at a sales price of $875,000 (a $50,000 increase over the appraised ARV).  The loan was then paid off, before the maturity date of the 6 month term.

DLP Capital Partners 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:

 Unit Breakdown

Financial Overview:

Kensington Financials

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

Five Year Project Return:  29.93%, net to investors

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