DLP Preferred Credit Fund, LLC

The Preferred Credit Fund is lending capital focused on operators, builders and developers in the country. These top-tier operators and builders share our mission to create, improve, and preserve affordable workforce housing. Through our strategy, we help these sponsors scale their businesses and make an impact.

Accredited Investors only.*

The Fund will invest in opportunities such as, the origination and acquisition of mortgage loans. These loans are against non-owner occupied single family and multifamily assets. The loans are always in a Preferred Credit position, typically with a personal guarantor and significant equity invested behind the Fund’s loan. The fund does not own real estate directly, but instead lends capital to real estate operators.

Fund TypePreferred Real Estate Credit
Fund InvestmentsLoans backed by real estate, primarily workforce housing communities
Direct/Indirect SecurityNotes Secured by Equity Pledges, Mortgages and Personal Guaranties
Inception DateOctober 2021
Fund TermEvergreen
Distribution FrequencyMonthly (Pref); Quarterly (EDC)
Management Fee1.0%
Targeted Current Distributions10%
Preferred Return9%
Targeted Annual Net to Investor10%
Return Split80/20 upon achieving 9% preferred return
Redemptions90-Day Notice
Benefits of LeverageYes
IRA Investment OptionYes
Tax Shelter through DepreciationNo
Subject to UBITYes
Target Fund Size$250,000,000
Minimum Investment$500,000
Manager Co-investmentMinimum 5% Committed Capital
Must Be AccreditedYes
Tax Reporting MethodK-1
Audited FinancialsYes; CohnReznick
Legal Counsel
Seward & Kissel, LLP
Institutional OptionYes
Reporting FrequencyQuarterly

Past performance is not a guarantee of future performance.

* Accredited Investor Definition: For an individual to be considered an accredited investor, he or she must have a net worth of at least one million US dollars, not including the value of one’s primary residence or have income at least $200,000 each year for the last two years (or $300,000 together with his or her spouse if married) and have the expectation to make the same amount this year.

Risk Disclaimer: Investing in private real estate funds and notes secured by real estate has certain inherent risks, which could result in the loss of some or all of your principal investment. Your decision to purchase and invest should be based on your own particular financial circumstances and investment objectives. DLP Capital Partners, LLC (formerly known as DLP Capital Advisors, LLC), its officers, and representatives can in no way guarantee or warrant your success. Consult your tax advisor or financial advisor before investing. Past performance does not guarantee future performance. Please see fund offering documents for full details & disclosure.  

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