DLP’s Preferred Credit Fund: 10-11% Target Returns, Loan Tape, and Risk Questions
Episode #281
See what others have to say about the deal and join the conversation:
https://passivepockets.com/forums-listing/discussion/new-deal-dlp-capital-preferred-credit-fund/
Check out the DLP Preferred Credit Fund for yourself:
https://passivepockets.com/directory/deals/dlp-preferred-credit-fund/
This Episode
In this special LP Deal Review episode, Chris Lopez is joined by Adam Cranmer and Pascal Wagner to evaluate DLP Capital’s Preferred Credit Fund with Don Wenner, founder and CEO of DLP Capital. Don walks through the fund’s strategy, target return profile, underwriting process, borrower standards, and how DLP approaches development, construction, bridge, mezzanine, and preferred equity lending in today’s market.
The discussion digs into why DLP focuses on housing that is affordable for working families, how the firm thinks about lending in high-growth Sunbelt markets, and what separates its Preferred Credit Fund from a senior secured lending fund. Don also addresses several of the key diligence questions LPs should be asking right now, including geographic concentration risk in Florida and Texas, loan-to-value and loan-to-cost metrics, borrower concentration, third-party validation, fund administration, internal controls, and how rising interest rates could affect the fund’s risk profile.
After Don leaves the conversation, Chris, Adam, and Pascal break down the fund from an LP perspective. They discuss what they like about DLP’s track record, reporting, borrower quality, and institutional infrastructure, while also highlighting the risks they are watching closely, including mezzanine exposure, state concentration, self-dealing concerns, fees, macro uncertainty, and whether the return spread is attractive enough compared to risk-free alternatives. The episode closes with a broader conversation about how LPs should think about risk, liquidity, debt versus equity, and portfolio construction in an uncertain investing environment.
Key takeaways:
How DLP’s Preferred Credit Fund targets monthly income through private real estate credit
Why DLP focuses on housing affordability, experienced borrowers, and Sunbelt growth markets
How Don compares mezzanine and preferred equity risk to senior secured lending fund risk
What LPs should ask about loan-to-value, loan-to-cost, borrower concentration, and fund-level controls
Why third-party audits, appraisals, loan tapes, and investor reporting matter in debt fund diligence
How experienced LPs think about DLP’s strengths, yellow flags, fees, concentration risk, and macro exposure
Why each investor needs a clear portfolio thesis before choosing between cash, Treasuries, debt funds, or equity deals
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Disclaimer
The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast.
See what others have to say about the deal and join the conversation:
https://passivepockets.com/forums-listing/discussion/new-deal-dlp-capital-preferred-credit-fund/
Check out the DLP Preferred Credit Fund for yourself:
https://passivepockets.com/directory/deals/dlp-preferred-credit-fund/
This Episode
In this special LP Deal Review episode, Chris Lopez is joined by Adam Cranmer and Pascal Wagner to evaluate DLP Capital’s Preferred Credit Fund with Don Wenner, founder and CEO of DLP Capital. Don walks through the fund’s strategy, target return profile, underwriting process, borrower standards, and how DLP approaches development, construction, bridge, mezzanine, and preferred equity lending in today’s market.
The discussion digs into why DLP focuses on housing that is affordable for working families, how the firm thinks about lending in high-growth Sunbelt markets, and what separates its Preferred Credit Fund from a senior secured lending fund. Don also addresses several of the key diligence questions LPs should be asking right now, including geographic concentration risk in Florida and Texas, loan-to-value and loan-to-cost metrics, borrower concentration, third-party validation, fund administration, internal controls, and how rising interest rates could affect the fund’s risk profile.
After Don leaves the conversation, Chris, Adam, and Pascal break down the fund from an LP perspective. They discuss what they like about DLP’s track record, reporting, borrower quality, and institutional infrastructure, while also highlighting the risks they are watching closely, including mezzanine exposure, state concentration, self-dealing concerns, fees, macro uncertainty, and whether the return spread is attractive enough compared to risk-free alternatives. The episode closes with a broader conversation about how LPs should think about risk, liquidity, debt versus equity, and portfolio construction in an uncertain investing environment.
Key takeaways:
How DLP’s Preferred Credit Fund targets monthly income through private real estate credit
Why DLP focuses on housing affordability, experienced borrowers, and Sunbelt growth markets
How Don compares mezzanine and preferred equity risk to senior secured lending fund risk
What LPs should ask about loan-to-value, loan-to-cost, borrower concentration, and fund-level controls
Why third-party audits, appraisals, loan tapes, and investor reporting matter in debt fund diligence
How experienced LPs think about DLP’s strengths, yellow flags, fees, concentration risk, and macro exposure
Why each investor needs a clear portfolio thesis before choosing between cash, Treasuries, debt funds, or equity deals
Join a community of passive investors. Start your FREE 7-day trial: https://passivepockets.com/?utm_source=youtube&utm_medium=description&utm_campaign=none
Listen to the PassivePockets Podcast Anywhere: https://lnk.to/passivepockets
Subscribe to the Passive Investing Newsletter: https://www.biggerpockets.com/email-subscribe?utm_source=youtube&utm_medium=description&utm_campaign=none
Join BiggerPockets for free: https://www.biggerpockets.com/signup?utm_source=owned_media
Disclaimer
The content of this podcast is for informational purposes only. All host and participant opinions are their own. Investment in any asset, real estate included, involves risk, so use your best judgment and consult with qualified advisors before investing. You should only risk capital you can afford to lose. Past performance is not indicative of future results. This podcast may contain paid advertisements or other promotional materials for real estate investment advisers, investment funds, and investment opportunities, which should not be interpreted as a recommendation, endorsement, or testimonial by PassivePockets, LLC or any of its affiliates. Viewers must conduct their own due diligence and consider their own financial situations before engaging with any advertised offerings, products, or services. PassivePockets, LLC disclaims all liability for direct, indirect, consequential, or other damages arising out of reliance on information and advertisements presented in this podcast.
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Matterfact has every podcast on Apple Podcasts and Spotify: 700K+ channels, 120M+ episodes.
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