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Bottom line: DLP Capital Investment Funds – Editorial Name Only is a private financial services and real estate investment firm. Their funds are best for investors who want to make an impact in the US housing crisis while earning passive income through monthly, quarterly, or annual distributions. DLP Capital offers evergreen, open-ended investment funds, including private equity and debt funds, some of which are REITs. It also offers short-term loans.
DLP Capital is not ideal for active investors wanting to pick and choose their own investments, since it only has four fund choices. It’s also only available to accredited investors.
About DLP Capital
DLP Capital Investment Funds – Editorial Name Only is a real estate investment and private financial services firm focused on building, improving, and maintaining safe and clean rental housing that is affordable for working families across the US. To combat the US housing crisis, DLP Capital offers various funds centered around managing and improving income-producing rental communities.
DLP Capital offers tax-advantaged, evergreen, private REITs through various investment funds. Evergreen funds are open-ended investment vehicles with no termination date. Unlike most real estate investing platforms that are designed for long-term investing, DLP Capital’s REITs are risk-adjusted to be short-term investments, usually around six to 24 months.
Investors are paid in monthly, quarterly, or annual distributions, and the target annual net returns fall between 9% and 13%. But you’ll have to pay a high minimum of DLP Capital Investment Funds – Account Minimum to start investing.
The site provides a decent selection of educational tools including a blog, an informational podcast, instructional videos, webinars, seasonal reports, and more.
Both accredited and nonaccredited investors can diversify their investment portfolios by investing in real estate with the best real estate investing platforms, such as Fundrise, Roofstock, and CrowdStreet.
Is DLP Capital Right for You?
Only accredited investors can invest in a DLP Capital fund. Accredited investors are individuals who have a minimum net worth of $1 million or have a $200,000 salary ($300,000 for couples).
DLP Capital is unique in that its evergreen REITs are designed for short-term investing, and are more liquid compared to most other real estate investments. It’s not suitable for long-term investing.
DLP Capital’s real estate investments are best for accredited investors interested in earning passive income through monthly, quarterly, or annual distributions. When investing in a fund with DLP Capital, you won’t pick and choose which properties to invest in. Instead, you pick fromwhich fund to invest in which will be tailored towards different investment criteria. This may be appealing to those new to real estate investing.
DLP Capital: Overall Rating
FeatureInsider rating (out of 5)Fees 3.00Investment selection 3.75Access4.80Customer support4.00Ethics 3.65Liquidity4.75Overall score4.05
DLP Capital Pros and Cons
ProsConsVarious tax-advantaged investment fund optionsLong-term and short-term loan optionsOne-on-one investor success manager accessIRA investment optionsTransparent fee structureHigh $200,000 minimumMust be an accredited investorCan’t pick and choose specific dealsNo long-term investment options
Is DLP Capital Trustworthy?
DLP Capital Investment Funds – Editorial Name Only currently has a C+ rating with the Better Business Bureau. BBB ratings range from A+ to F and reflect the bureau’s opinion of how well a company interacts with its customers. Therefore, a C+ is an ok rating of customer trustworthiness.
The BBB states that the reason for the C+ rating is due to a failure to respond to one complaint against the business.
Before issuing ratings, the bureau also considers a company’s time in business (including its business type), customer complaint history, licensing and government actions, and advertising issues. But its ratings don’t absolutely ensure a company will be reliable or perform well. This is why it’s important to also do your own homework before setting up an account. For better insight, talk with friends and family that have used DLP Capital and read customer reviews.
In 2022, Anthony Ruben, a previous DLP Capital senior managing director of investments, filed a lawsuit against DLP Capital Partners, LLC for allegedly promising Ruben shares of DLP’s profits, but instead terminating his employment. DLP has neither confirmed nor denied these allegations. Ruben is seeking $21.7 million in damages, and the case is currently pending.
Ways to Invest With DLP Capital
DLP Capital offers individual investment accounts for accredited investors. Investors also have the option to invest in DLP Capital investment funds through an existing IRA or 401(k) through a separate brokerage account.
A standard DLP Capital individual investor account allows you to invest in private real estate investment funds designed to make a positive impact on American communities by investing in evergreen, private REITs, and fixed notes through various investment funds. This includes funding and preserving rental housing, building communities, providing lending opportunities to sponsoring businesses, and lending capital to real estate operators.
DLP Capital Investment Funds – Editorial Name Only real estate funds have between a 9% to 13% targeted annual return. You’ll receive either monthly, quarterly, or annual distributions (depending on the fund(s) you invest in). All of DLP Capital funds, such as the DLP Preferred Credit Fund, are evergreen, open-ended funds and typically short-term, often ranging from six to 24 months.
These funds are also tax-advantaged by offsetting taxable income or offering a 20% tax rate deduction depending on the state of the investor.
DLP Prosperity Membership
If you’re interested in leaving a legacy through long-lasting wealth, then the DLP Prosperity Membership may be right for you. This membership plan, which comes complementary to all DLP Capital investors at no additional cost, is dedicated to helping families increase wealth through multiple generations. Investors participate in portfolio defense strategies, estate planning, one-on-ones with DLP Capital team members, and financial planning for expert guidance on long-term and short-term goals.
Prosperity Members are encouraged to attend at least one of the Prosperity Workshop events/retreats per year. There are also educational webinars to providing first access to DLP investment opportunities.
Investment options at DLP Capital include:
Housing fund (REIT): Invests in equity in multi-family rental communities (including single-family communities, mobile home and camp communities, and self-storage) in order to provide affordable and safe workforce housing units. It’s focused on the Sunbelt region in the secondary and tertiary markets, and aims to improve income-producing rental communities. This tax-advantaged evergreen private REIT pays investors in monthly distribution and has targeted annual returns between 10% and 12%. Lending fund (REIT): Provides senior, secured, first-position loans to professional real estate operators for short-term risk-adjusted returns. Money pooled from this fund helps builders develop and improve affordable workforce housing. Short-term timeline increase liquidity and helps combat inflation. Investors are paid in monthly distributions. The target annual return is 9%.Building communities fund: This tax-sheltered evergreen fund invests in real estate debt and equity in the hope of developing and improving the acquisition and management of residential real estate areas, including single-family and multi-family communities, mobile home and camp communities, and self-storage. This fund mainly focuses on equity with strong growth potential, and limited volatility. Investors get annual distributions with a targeted annual return of 13%.Preferred credit fund: Investors lend money to US real estate operators, builders, and developers. This fund does not invest in real estate directly. Instead, short-term loans allow investment managers to make debt investments for the purpose of reposition, acquisition, and construction of primary workforce housing. It has high liquidity and protection against inflation. Investors are paid in monthly distributions with a targeted annual return of 10%.
DLP Capital Fees
Investment Fund Fees
All investment funds charge a 2.0% management fee
Investment Fund Rebates
There is a 0.50% annual investment rebate for investments of more than $1 million (per account, per fund based on minimum annual investment balance for the calendar year 2023 as of April 1, 2023; per calendar year thereafter), and a 1.0% yearly investment rebate for investments of $10 million. There is a minimum investment of DLP Capital Investment Funds – Account Minimum for each fund.
DLP Capital — Frequently Asked Questions (FAQs)
Is DLP Capital legit?
Yes. DLP Capital is a legitimate private financial services and real estate investment firm that has been in business since 2006.
Is DLP Capital a REIT?
DLP Capital offers tax-advantaged, evergreen, open-ended funds focused on combating the US housing crisis. This includes five investment funds consisting of private equity and debt funds, which encompass REITs and fixed notes. DLP Capital’s REITs are short-term investments with high liquidity and low volatility.
What is the minimum investment for DLP Capital?
The minimum investment for DLP Capital is DLP Capital Investment Funds – Account Minimum. The minimum for fixed notes is $100,000
Who owns DLP Capital?
Don Wenner is the founder and CEO of DLP Capital.
How DLP Capital Compares
DLP Capital vs. Groundfloor
DLP Capital Investment Funds – Editorial Name Only and Groundfloor – Editorial Name Only are both real estate investing platforms that offer short-term investment options for passive income. But the platforms differ when it comes to investment options, fees, and access.
DLP Capital offers investment funds that then invest in tax-advantaged, evergreen, private REITs. Investors earn money through routine distributions. But you must be an accredited investor to join. DLP Capital also has a very high minimum of DLP Capital Investment Funds – Account Minimum.
Groundfloor, on the other hand, is a cheaper option that is available to both accredited and nonaccredited investors with a Groundfloor – Account Minimum minimum. You can invest in short-term, high-yield, private fractional real estate debt investments through notes and SEC-qualified Limited Recourse Obligations (LROs). Accredited investors also get access to auto-investing.
You may prefer to invest with DLP Capital if your value aligns with DLP Capital’s mission to build, develop, and manage rental housing built to be affordable for America’s working families.
Read our Groundfloor review.
DLP Capital vs. Fundrise
Fundrise – Product Name Only offers electronic REITs, real estate funds, venture funds, and Fundrise IPOs. It’s available for accredited and nonaccredited investors and only requires a Fundrise – Account Minimum minimum. Fundrise offers both automated investing features and the ability to customize your own investment plans.
Compared to DLP Capital, Fundrise offers more investment options for a low account minimum — but it only offers long-term investment options. That said, DLP Capital is the better choice for accredited investors.
Read our Fundrise review.
DLP Capital: Related Terms
REITs: Companies that own various income-producing real estate investments and pool investor money to fund real estate projects. Investors are paid in dividends. Illiquid: Liquid is a term used to describe how easily an asset can be converted to cash. When an asset is illiquid, it can not be easily converted to cash. Accredited investor: An investor with a net worth of at least $1 million, or has earned at least $200,000 in the current year and the last two years.
Why You Should Trust Us: How We Reviewed DLP Capital
We examined DLP Capital Investment Funds – Editorial Name Only real-estate investing using Personal Finance Insider’s rating methodology for investing platforms to compare and examine account options, pricing, investment options, and overall customer experience. Platforms are given a rating between 0 to 5.
Real-estate investing platforms generally offer multiple assets, trading tools, fees, and other resources. Some investing platforms are better for more advanced investors or active investors, while others may better suit beginner investors and passive investors. DLP Capital was evaluated with a focus on how it performed in each category.