Q3 DLP Capital Advisors RecapDLP Capital expects to raise about $6,000,000 of new capital, primarily into the DLP Lending Fund; DLP Income & Growth Fund; and the New DLP Equity Fund

DLP Capital Advisors | 701 W. Broad St., Suite 200, Bethlehem, PA 18018 | dlpcapitaladvisors.com

Q3 DLP Capital Advisors Recap

Q3 was an excellent quarter for DLP Capital Advisors.

Some of the highlights of the quarter:

Investor Informational Dinner was held on July 28th at Blue Grill house

Quarterly Investor Dinner was held July 30th at the Saucon Valley Country Club

First Florida Investment dinner was held on September 22nd at the Palencia Country Club

Originated 29 private loans to investors

Acquired 17 properties for just over $10,000,000.

Investor Logins rolled out to all investors in July

New website launched! DLPCapitaladvisors.com

Investor Information Portal Set up: http://dlpcapitaladvisors.com/portal/

Enter:DreamLiveProsper

Audited Financials Complete for the DLP Lending Fund

Over $8,000,000 of new capital invested with DLP Capital Advisors

15 New Investors made investments

19 existing investors made additional investments

Q3 Fund Performance

14.17% annualized net return to investors in the DLP Fixed Fund

14.87% annualized net return to investors in the DLP Lending Fund

13.02% annualized net return to investors in the DLP Income & Growth Fund

10.1% annualized net return to all FIXED return investors


Q3 2016 Market Review

Within the Lehigh Valley, the center of the “DLP investment world,” the market was overall very strong.

There was a 3.5% decrease in sales volume, but homes are sold 12.7% faster year over year. In addition,

the List to Sale ratio increased from 97.16% to 97.62%. We believe the only reason sales were down in

Q3 year over year, was the incredibly low inventory. The Lehigh Valley has the lowest number of homes

on the market, again, in over a decade with less than 3.5 months of inventory. Most exciting of all,

home prices were up nearly 5% year over year, bringing prices from being flat for the year compared to

2015, to now being up nearly 2%.

In Lehigh Valley: 2016 Q3 % Change YTD % Change

Number of home sales 2,113 -3.5% 5,750 +6.68%

Average home sale price $216,584 +4.95% $199,625 +1.93%

Average per sq. ft. $112.98 +4.2% $109.24 +1.53%

Q3 Rehab Funding Market Recap

The rehab market during the 3rd quarter had a solid quarter once again. The volume of on market

distress deals continue to decrease, but the opportunities are still available, although a great percentage

of deals are off market. Despite deals being harder to find, the positive news is that homes are selling

much faster and easier decreasing risk for the borrower and the lender, as well as increasing profits for

the borrower.

Q4 2016 Real Estate Market Outlook

We expect the low inventory levels of the real estate market to continue to slow sales growth over the

course of the 4th quarter. We expect flat sales in Q4 compared to Q4 2015 due to the low inventory. We

do expect to see continued price growth in Q4, with an expectation of 4-6% increase year over year.

Although the low inventory levels will hamper home sales, it will conversely help the residential

investment market as the previously distressed properties are being brought on the market. Also aiding

the investment market has been the consistently low vacancy rates in the area, which are expected to

continue through the quarter. As renovation of the distressed properties is completed, investors are

able to successfully lease/stabilize the property in a shortened amount of time.

Overall Market Expectations Compared to Q3:

Sale Volume

Supply Prices Interest Rates

Rental Occupancy

Rent Price


Q4 DLP Capital Advisors Outlook

Q4 is set to be a very strong quarter for DLP Capital Advisors.

DLP Capital Advisors is raising capital and growing the DLP Lending Fund and the DLP Income & Growth

Fund; and is in the process of either launching the DLP Equity Fund II, LLC or re-opening DLP Equity Fund

in Q4.

DLP Capital expects to achieve our targeted returns in all four of our Funds in Q4:

Lending Fund (11-16%)

Fixed Fund (11-14%)

Income & Growth Fund (11-18%)

Equity Fund (22-25% annual average over the 5-7 year Fund)

DLP Capital expects to raise about $6,000,000 of new capital, primarily into the DLP Lending Fund; DLP

Income & Growth Fund; and the New DLP Equity Fund II, LLC/DLP Equity Fund I, LP in Q4.

DLP expects to acquire over 400 apartments and houses in Q4 as well as originate more than 40 loans to

real estate investors. This is expected to be the biggest quarter to date for both acquisitions and

lending.

Commonly Asked Questions

Q: Why do flippers borrow from you if rates at banks are lower?

A: Securing funding through banks is often a challenge for flippers since banks typically only fund 75% of

the purchase price of a property, while the borrower needs money to cover the purchase AND rehab.

Direct Lending Partner uses a common sense approach in addition to the same underwriting standards

banks follow to grant loans based on the speculative value of the property after repairs. Also, the typical

loan duration for Direct Lending Partner is only 6 months, so higher interest rates aren’t a big factor for

borrowers.

Q: Can interest be compounded?

A: Investors have the option of taking monthly distributions or letting interest compound and grow. You

can switch at any time and/or do a combination (e.g, take a $1000 distribution each month and allow

the remainder of your returns to compound).

Q: Are there any hidden fees in your stated return rates?

A: Our return rates indicate exactly what you will earn, with no hidden costs. DLP Capital Advisors takes

care of any fees.

Q: If I invest in more than one Fund, does the minimum investment apply to each account?

A: Investments are considered collectively, so 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


investment requirement in the Equity Fund). Combined investments also count toward investment

thresholds for Return Rates.

DLP Capital Advisors Equity Investment Case Study:

Property: Kensington Cottages

Location: Orlando, Florida

Units: 170 Units

Description: Located within 9 miles of Downtown Orlando, which is home to Universal Studios, Amway Center, and many government offices. Orlando is one of the top performing apartment markets in the country. For Q3 2015, Orlando recorded average occupancy of 95.7% and average rents of $1,070, which represents a 5.1% increase in rents year over year. According to MPF Research, Central Florida is projected to experience as much as 5% growth in rent each year for the next 3 years.

Purchase Price: $7,345,000

Equity Investment: $2,000,000

Unit Breakdown:

Financial Overview:

Cash on Cash Return (Year 1): 12.48%, net to investors

Five Year Project Return: 29.93%, net to investors


DLP Capital Advisors Loan Investment Case Study:

Loan Amount: $115,000

Value: $205,000

Loan to Value: 56.10%

Loan to Cost: 72.76%

Borrower Credit Score: 800

Borrower Experience Level: The Borrower is an experienced real estate investor that completed three real estate flips so far in 2016. The average profit per flip was $38k.

Borrower Net Worth: $1,874,000 (including $427,000 in liquid securities)

Interest Rate: 13.20%

Length of Loan: 6 months

Result of Loan: The property was successfully renovated and is listed for sale. Only three and a half

months have passed from the time the loan was approved to the property being fully renovated a listed

for re-sale. The property is listed for sale at a $15k premium to the appraised value, which coincides

with the current market comps.

Current Offerings:

DLP Capital Advisors is currently accepting Equity investors into the DLP Lending Fund, LLC; DLP Income

& Growth Fund I, LLC; and the DLP Equity Fund II, LLC, as well as Note Holders.

The targeted returns for equity investors are 11-20%.

The FIXED returns to note holders are 7-10%.


DLP Lending Fund, LLC Equity Offering

This is for Accredited Investors only*. The DLP Lending Fund lends short-term, high yield capital to real estate investors, thus providing strong, consistent, and predictable returns. The fund does not own real estate directly, but instead lends capital to real estate investors. This Fund is a hybrid fund, having both Equity and Debt investment options. The underwriting, funding, and loan management is performed and managed through Direct Lending Partner LLC. Direct Lending Partner has a thorough underwriting process to make sure loans are only made to borrowers that have a high probability of success with the project/property and the ability to refinance the property if needed. Loan servicing is performed by FCI Loan Servicing.

DLP Income & Growth Fund I, LLC

This is for Accredited Investors only*. The DLP Income & Growth Fund I, LLC is an Opportunity Fund that invests into a range of real estate backed investment opportunities including rehab/private loans to real estate investors; loans to affiliates of DLP Capital Advisors; investments into the DLP Fixed and Lending Funds; preferred equity investments and partnerships; non performing notes; and investments into other real estate backed investment funds and opportunities. The focus of the Fund is to produce superior returns by having the flexibility to capitalize on market opportunities and inefficiencies, while mitigating risk through diversification and strong asset and borrower underwriting.


DLP Note Offerings

Accredited investors only* DLP offers note (debt) investment options within each of the DLP Funds in additional to on a separately managed account basis. These notes offer 7-10% fixed returns w/ a low LTV. Primarily, the fund’s assets are first position real estate loans. The note investors are in the “first to be paid” position & in effect are in the lowest risk position of all the DLP investment offerings.

* 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.


News DLP Acquires Kensington

Cottages

DLP successfully completed the

acquisition of the 170 unit multi-

family property known as

Kensington Cottages in Orlando,

FL.

DLP Capital Advisors completes

DLP Lending Fund Audits

We now have the ability to work

with Registered Investment

Advisors (RIAs) to further expand

our investor network!

DLP Capital Welcomes New

Investors!

DLP welcomed 19 new investors in

Q3. Over $8,300,000 was invested

from new and existing investors.

Great Turnout at Investor

Information Dinners in PA & FL

More than 100 people attended our

Investor Information Dinner at Blue

Grillhouse on July 28. We hope

you’ll be joining us for our next

dinner!

We overbooked our first ever

Information Dinner that took place

in St. Augustine, FL at the Palencia

Club and have already started

receiving early registrations for the

next Florida dinner scheduled for

November 10th.

DLP Capital Advisors Welcomes

New Partner/Owner!

Bob Peterson, CFO of DLP Family

Companies has become a Principle

in DLP Capital Advisors as an

owner/partner.

DLP Named Fastest Growing

Companies

DLP is named as one of the Inc.

5000 Fastest Growing companies in

the US for the 4th straight year, #840

in the US & #42 In PA.

DLP Capital Expands Footprint

into Florida

DLP continues to expand its Florida

presence with the purchase of an

office in St. Augustine, just a block

away from the beautiful Palencia

Club.

DLP Acquires 190 units for over

$10,000,000

In the 3rd Quarter, DLP completed

acquisitions totaling 190 units for

over $10,000,000. This was

highlighted by our acquisition of

Kensington Cottages.

Direct Lending Partner has Best

Quarter in History

Direct Lending partner closed 29

loans during the 3rd quarter, marking

its best quarter ever.

Mountain Hollow Estates in Full

Swing

These 139 units of luxury

townhouse apartments is one of

DLP's biggest acquisition to date.

Nestled in Stroud Township, these

units range from 1500 sq. ft. to 2200

sq. ft. and range anywhere from

$1,450/mo to $2,000/mo. 10 units

were complete in Q3 & 35 units

were under construction.

Online Investor Logins for All

Investors

Our investors can now view their

account statements anytime,

24/7/365!

Biggest Acquisition Under

Agreement

DLP is under agreement to purchase

the Styles Portfolio, a 223 unit

portfolio of three communities in

Jacksonville and Tampa. This

would mark DLP’s biggest

acquisition to date!

New Websites

DLP continues to progress in

keeping all Dream Live Prosper

websites fresh and has recently

completed the new branding of

some of our websites including

DLPCapitalAdvisors.com and

DirectLendingPartner.com.


DLP Realty Welcomes New Team

Members

Richard Hauler

Coreen Lynch

John Patrick Sullivan

Alex Lopez

Vicky Kemmerer

DLP Property Management

Welcomes New Team Members

Alberto Ortiz

Meghan Jervi

Silvio Maria

DLP Builders Welcomes New

Team Members

John Miller


Team Member Spotlight

Bob Peterson Chief Financial Officer

When did you start working at DLP?

Early 2015

What do you find most challenging at DLP?

Keeping pace with our energetic leader.

What is your favorite part about working at DLP?

The positive spirit and like mindedness of the team here at DLP.

What advice do you have for future DLP employee candidates?

Ask for advice if you are unsure. Communicate with others and ask questions if you need to know how something

should be done. Take advantage of the trainings & learning opportunities; and engulf yourself into the culture. Expect

to work hard & be rewarded for doing so. We look for & reward people with drive; positive attitudes; and Grit.

- - On a more Personal Note - -

What is your favorite quote that you live by?

"Do unto others as you would have them do unto you."

What are the 3 top items on your "Bucket List"?

Visit the Holy Lands in Israel - Scuba diving on the Great Barrier Reef - Catching a 200+lb tuna

What hobbies and/or sports are you involved in?

Reining Horse & Reined Cow horse competition.

What have been the top (3) highlights of your life?

Marriage to my wife of 33 years, the births of my 3 children and the births of my 2 grandchildren.

Tell us (1) random fact about yourself.

I have 4 brothers and 4 sisters.


Investor Spotlight

Meet John & Mary Ellen Mirro

What factor helped you most in deciding to invest with us?

"I think the frustration of the market was #1, and looking for something different. When Don came to the

house and we heard about the investment opportunities, it was like it was almost too good to be true; how can we do

that and get that kind of return?? But after the way he explained it and had all the numbers, introduced and told us

about his other investors that basically carry to him to the "enth" decimal point to make sure he's right on. That gave

us the confidence and it didn't take us much longer after that meeting for us to decide that this was the place to do it."

How has investing with DLP changed your overall portfolio?

The change is dramatic. It's not like we were not previously knowledgeable about investing, we were quite

knowledgeable. But the marketplace of traditional investments, whether it be stocks, bonds or cd's or those sorts of

investment vehicles, they never fail to disappoint because they are subject to the varying market conditions and

fluctuations and all the fluidity. So we were looking for something that needed to be different than traditional

opportunities. The other thing is, I was always intrigued by the concept of real estate and never had a real way into it.

All my life I've been intrigued; real estate is a great investment. You have to know how they work and work really hard

and to do a flip you have to work really hard with your hands. Well, you don't have to do that with DLP. It's a passive

type of investment and you don't have to do the hard physical labor yourself.

What would you say to someone considering investing but is still on the fence?

"Do a lot of homework first. Check all the opportunities you can find and then do background checks. Talk to

investors like we did, at the dinners and I don't think you'll be on the fence too long. Between all the people that work

for Don and all investors that are with him and have been with him, you get a sense of confidence in what's going to

be the best thing that ever happened, as far as your investment, and what you've worked so far for." - Mary Ellen

"I would add to that, the way we like to look at it is that it is certainly true, in having been investing with Don,

it truly has changed our lives and changed how we approach every day. Life wasn't that bad before, but the

investment aspect of our life was nothing but endless frustration and a feeling of being exposed to risk. Investing now

is very productive, very profitable and it's very enjoyable. There is no stress. Our level of confidence of Don and DLP

couldn't be higher. We've done all the researching, fact checking and due diligence and we know Don and know the

company. You're not just investing in a great business, but you're investing in an individual in Don who has

tremendous integrity, he's a good family man, a local man. We know Don and have become good friends and

become part of the investment family. There is no transparency. Every quarter there are reports laid out and

produced where you see the fund financial performance. We get the opportunity to see properties ourselves if we'd

like which, sometimes we do. It's all very positive and leaves no doubt whatsoever. We don't have the stress anymore

that we once had. We have a chance to diversify our portfolio because we take advantage of the different kinds of

investments.

We feel totally secure with what we're doing...Don Wenner will never let us down." - John

View the Mirro's testimonial in its entirety by visiting www.DLPCapitalAdvisors.com by

clicking on "Testimonials"


Management

DLP Capital Advisors, LLC

701 W. Broad St., Suite 200

Bethlehem, PA 18018

www.dlpcapitaladvisors.com

Contact Info

Don Wenner, CEO

Office: (610) 488-2375

Direct: (484) 542-2868

[email protected]

Upcoming Events

Investor Information Dinner

The Palencia Club

St. Augustine, FL

Thursday, November 10th at 6:30pm

Register online at www.DLPCapitalEvent.com

or call

(610) 488-2310

http://www.dlpcapitaladvisors.com/

mailto:[email protected]

Documents

Q3 DLP Capital Advisors RecapDLP Capital expects to raise about $6,000,000 of new capital, primarily into the DLP Lending Fund; DLP Income & Growth Fund; and the New DLP Equity Fund