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.

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.


KEY FUND BENEFITS

  • Monthly Distributions
  • Evergreen fund structure offering ongoing liquidity
  • Targeted annual returns of 10%

Accredited Investors only*

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Houses Neighborhood 5

Fund Highlights

  • Open-ended, private credit real estate fund that enables the manager to make debt investments for the acquisition, repositioning, and construction of primarily workforce housing assets designed to provide consistent double-digit returns to investors.
  • Loans are typically short-term in nature, ranging from six to 24 months.The short-term duration focus of the fund provides significant liquidity to investors and should provide protection from rising rates and inflation.
  • A thorough underwriting process that makes sure loans are only made to borrowers that have a high probability of success with the project/property by primarily lending to proven successful operators with high credit scores, ample liquidity, and personal guarantees.
  • Subordinated management fees, whereby investors receive their monthly preferred return distributions before DLP receives any fees; aligns investors’ interest with DLP’s.

Fund Overview

Properties DLV 1

Fund Overview

Fund Type Preferred Real Estate Credit
Fund Investments Loans backed by real estate, primarily workforce housing communities
Direct/Indirect Security Notes Secured by Equity Pledges, Mortgages and Personal Guaranties
Inception Date October 2021
Fund Term Evergreen
Distribution Frequency Monthly (Pref); Quarterly (EDC)
Management Fee 1.0%
Targeted Current Distributions 10%
Preferred Return 9%
Targeted Annual Net to Investor 10%
Return Split 80/20 upon achieving 9% preferred return
Redemptions 90-Day Notice
Benefits of Leverage Yes
IRA Investment Option Yes
Tax Shelter through Depreciation No
Subject to UBIT Yes
Target Fund Size $250,000,000
Minimum Investment $200,000
Manager Co-investment Minimum 5% Committed Capital
Must Be Accredited Yes
Tax Reporting Method K-1
Audited Financials Yes; CohnReznick
Legal Counsel Seward & Kissel, LLP
Institutional Option Yes
Reporting Frequency Quarterly

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 U.S. 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.

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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.