This year alone, over $30 billion in capital was raised by real estate investors in order to purchase B-class properties. There’s no denying that Class B and C properties can easily be recognized as the most desired asset-class in real estate. At DLP Capital Partners, we focus on real estate investments within these types of assets, and put a focus on a conversative investment strategy to mitigate investment risks.
One way we mitigate risks is by making very conservative assumptions. For example, we make convservative revenue assumptions on market rent and rent increases, only anticipating a 2% increase in rents each year. We also presume that when it comes time to sell these investment properties, CAP rates are going to be much higher, assuming the value of the properties will decrease.
In this webinar, our CEO Don Wenner, explains how DLP Capital Partners further mitigates risks on our real estate investments.
Check out the webinar here:
If you can’t tune into the entire webinar, here are some key moments worth checking out:
- Intro to DLP: (0:01) Introduction of our CEO Don Wenner, our team, and the three rules that drive our investments
- Our Portfolio: (5:57) A brief overview of our multi-family apartment portfolio
- How We Mitigate Risk on Acquisitions: (6:46) We explain ways we mitigate risks on our properties. This includes averaging at over an 8.5% cap rate with our properties by our second year of ownership.
- Underwriting: (10:49) This section provides the audience with a comprehensive analysis of how we at DLP underwrite our real estate investment deals.
- Risk Comparison: (21:08) A comparison of a community we purchased, Laurenz Place, and how we underwrote the deal in comparison to how another operator
- DLP Preferred Returns Equity Fund: (25:23) Information about the DLP Preferred Returns Equity Fund, which has a target annual return net to investors of 12% and gets paid on a preferred basis with the common equity being subordinate to the fund.
- Q&A: (26:58) Don opens the floor to take questions from the audience, with a detailed look at the type of markets we invest in and the supply of homes in the “Class-B space.”
At DLP Capital Partners, we’ve been able to generate great returns across our various investment strategies, while continuing to mitigate risks.
To learn more information about how you can schedule a one-on-one or follow up with us to learn more about our investment funds, head over to DLPCrowd.com