How will interest rates affect DLP Capital and our returns?
If 2008 happens again, how will that affect DLP Capital and will our principle be at risk?
Two key factors that led to the 2008 real estate collapse were loose lending practices that failed to verify the income of Borrowers, and high LTV terms which allowed Borrowers to purchase real estate without contributing much equity into the acquisition. DLP Capital and Direct Lending Partners follow a strict underwriting process that evaluates the cash flow and repayment capacity of all Borrowers and restricts lending amounts to 65% of ARV of the real estate. The low LTV nature of DLP Capital loans allows an additional level of security in the event that the real estate market is too slow/decline. In addition, DLP Capital Partners focuses on owning cash flow positive assets. So if there was a market collapse, and property values saw a steep decline, DLP would not be “under the gun” to sell its assets at lower prices, as the assets will produce strong cash flow which will be for the most part unaffected by the decrease in property values that a “2008” collapse would bring. Also, a collapse like 2008 would create tremendous investment opportunities for DLP to capitalize on.
Can interest be compounded?
Are there any hidden fees in your stated return rates?
Do I need $50,000 or $100,000 of additional capital to add to my investment?
If I invest in more than one Fund, does the minimum investment apply to each account?
Investments are considered collectively so that 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.)