DLP Capital Dinner - Building Wealth With Purpose | Live from Ponte Vedra, FL

Summary

Highlights

• Don Wer's journey from real estate agent to CEO of DLP Capital highlights the impact of purposeful business growth. 🚀
• Attendees learned about DLP's dedication to investing in attainable housing for working families. 🏠
• DLP partners with organizations like Way Forward to integrate faith and community in their housing projects. 🙏
• Stories of community transformation and personal testimonials highlighted the event. 🗣️
• Guests were invited to join upcoming vision trips and family events to further engage with DLP's mission. ✈️

Key Takeaways

• DLP Capital focuses on sustainable real estate investments that promote community thriving and impact. 🏡
• CEO Don Wer highlights the importance of living purpose-driven lives and investing on purpose. 🌟
• The event emphasized that investing in affordable housing can lead to both financial gain and societal impact. 💼
• DLP aims to transform lives by building communities where people feel connected and secure. 🤝
• Upcoming events, including the Extraordinary Family Event, encourage family involvement and learning about investments. 👨‍👩‍👧‍👦

Overview

Chapters

• 00:30 - 01:00: Introduction and Welcome An introduction to the session with background music playing. The chapter sets the tone and welcomes the audience, although the actual spoken content is not provided beyond the mention of music.
• 01:00 - 01:30: Overview of DLP Capital The chapter titled 'Overview of DLP Capital' begins with a welcoming note to both in-person and online attendees. Before dinner is served, existing DLP investors present in the room are acknowledged and asked to stand, receiving a round of applause. This sets a positive tone as the presenter prepares to share insights about DLP Capital.
• 01:30 - 02:00: Mission and Vision The chapter titled 'Mission and Vision' covers an event where the speaker, presumably from DLP Capital, outlines the purpose and recent activities of their organization. The speaker expresses gratitude towards the attendees, emphasizing that the focus of the event is not on the organization or the speaker, but on the attendees themselves. The event serves as an opportunity to celebrate the attendees and to express gratefulness for the trust placed in DLP Capital to manage resources on their behalf.
• 02:00 - 02:30: DLP Capital's Achievements and Growth This chapter discusses DLP Capital's achievements and growth. It focuses on how the company aims to make a meaningful impact on communities and build a legacy through stable and consistent returns for investors. Existing investors are encouraged to share their experiences with new investors. The chapter begins with a legal disclaimer urging due diligence.
• 02:30 - 03:30: Personal Story: Don's Journey in Real Estate The chapter titled 'Personal Story: Don's Journey in Real Estate' details the success and growth of OP Capital, a company located in St. Augustine, Florida. The transcript reveals that OP Capital is headquartered near the International Golf Boulevard and is recognized for its substantial revenue generation, achieving $566 million last year. It's highlighted as one of the fastest growing companies in America, maintaining this status consecutively for twelve years. The narrative presumably explores Don's personal experiences and journey within the real estate sector, potentially focusing on his contributions to the company's success and growth.
• 03:30 - 04:30: DLP Capital's Impact and Purpose DLP Capital manages under $5.5 billion in assets and serves around 3500 families. Last year, 496 new families joined, and this year 650 are expected to join. The company employs over 500 team members and provides housing for 100,000 residents across its invested properties. This marks the first eight years of their operations.
• 04:30 - 06:00: Challenges in the Housing Market The chapter titled "Challenges in the Housing Market" discusses DLP's history, focusing on the company's consistent growth since its inception in 2006. The chapter illustrates the company's revenue growth over the first eight years and continues to highlight the steady increase in opportunities and the scale of operations up to 2014, emphasizing larger numbers and expanded prospects for stewardship.
• 06:00 - 07:30: DLP's Investment Strategy and Funds The chapter discusses DLP's long-term investment strategy and vision, projecting its growth over the next 10 and 50 years. It highlights that even with a significantly reduced growth rate, DLP aims to become the sixth largest company globally based on current revenue estimates. The chapter emphasizes the importance of consistent delivery and performance to achieve these ambitious goals.
• 07:30 - 09:00: Building Thriving Communities The chapter introduces Don Wer, the founder and CEO of DLP Capital, who shares his personal background, mentioning his wife Carly and their three sons: Donnie, Alex, and Jacob. Don explains the activities of his kids and shares a greeting to his youngest, Jacob. The chapter sets the stage for inviting investors to join their mission, reflecting on the goals they've achieved since starting in 2006.
• 09:00 - 10:30: WayForward Partnership In the chapter titled 'WayForward Partnership,' the text highlights the organization's substantial financial investments towards building thriving communities. They have allocated over $11 billion in total, with $6 billion lent to other developers, builders, and operators of housing communities, and $5 billion directly invested as a developer and builder. Furthermore, the speaker, who is a published author on related topics, hints at elaborating more on certain aspects later in the discussion.
• 10:30 - 12:00: DLP Gives and Transforming Futures The chapter titled 'DLP Gives and Transforming Futures' begins with a presentation discussing the key factors behind consistent growth, emphasizing a personal philosophy of responsibility associated with receiving much. The presenter highlights a life verse, 'To whom much is given, much will be required,' illustrating a commitment to giving back and fostering growth. The narrative includes a personal anecdote involving the presenter's father, emphasizing the influential role he has played. The father is present at the event, and the presenter encourages the audience to acknowledge him, adding a personal touch to the presentation by noting how people often confuse conversations with his father for ones with himself.
• 12:00 - 13:00: Invitation to Future Events The speaker reflects on the significant influence their father has had both in a professional capacity at DLP for 16 years and personally for 40 years. They acknowledge the shared challenges and struggles in their upbringing but emphasize the blessings they have received, such as being raised in faith, a loving family, and being born in the United States. The individual started their professional journey in 2006 and expresses gratitude for the opportunity to serve others thanks to the skills and opportunities provided to them.
• 13:00 - 17:00: Q&A Session The chapter titled 'Q&A Session' begins with the speaker recounting their unexpected entry into the real estate industry. They reveal their origins in Bethlehem, Pennsylvania, and their academic journey at Drexel University. Despite having no prior intentions of entering real estate, a pivotal career suggestion in October 2006 from an acquaintance inspired them to pursue this path. The narrative captures the spontaneous nature of the speaker's career decision-making process.

DLP Capital Dinner - Building Wealth With Purpose | Live from Ponte Vedra, FL Transcription

• 00:00 - 00:30 [Music] [Music] [Music]
• 00:30 - 01:00 and we have a lot of people online as well so welcome everybody join us online and then I'm going to before your I know people are eating salads but before your dinners come out can I ask uh existing DLP investors to stand so quite a few in the room awesome well thank you for coming and joining us let's give them a round of applause please all right well I'm going to get the the joy here um to share a bit about what we
• 01:00 - 01:30 do what we're what we're up to what's been happening of recent i'll have the opportunity to answer any questions you may have and do so as you enjoy a great dinner and and I'm going to kick off and I'm going to be talking a bit about DLP Capital and what we do i'm going to even be talking a little bit about uh myself but this night isn't really about DLP Capital or about um myself it's it's about you we do these events to celebrate you we are so grateful to be able to steward resources for you to be
• 01:30 - 02:00 a small part in the lives that you guys are focused on impacting the communities you're a part of um be a small part in building your legacy uh and provide you a safe consistent stable returns and hopefully more than that as well um in your investments with us and those of you are new as you just saw there's lots of existing uh investors here around almost every table uh so chat with them hear directly from them on their experience i'll kick off with my uh legal disclaimer that says don't believe anything I say um uh but do your do your
• 02:00 - 02:30 due diligence um so a quick bit about the OP Capital we're located just down the road from here in uh St augustine uh Florida that's our headquarters on uh best known right near BIES um it's probably where people best know we're located right on International Golf Boulevard uh last year we did uh $566 million of revenue um we've been growing uh pretty quickly uh 12 years in a row we've been one of the fastest growing companies in America u we have just
• 02:30 - 03:00 under $5.5 billion of assets that's that's the assets of the people in this room those online that we get to serve 3500 families invested with us last year we welcomed 496 new families this year we're expecting 650 um we over 500 team members that uh work at DLP um and a 100,000 residents that live across the properties were invested in which is pretty awesome this is the first 8 years of
• 03:00 - 03:30 DLP's history so we got started in 2006 which I'll tell you a little bit more about this is what our revenue looked like our first uh 8 years in business you'll notice some pretty good consistent growth and then this is what we've looked like since and and so this is how it's continued and really the the growth percentage hasn't changed um but on this last slide it went up to 2014 now 2014 you can barely uh see on that map the pace hasn't changed but the numbers have gotten uh bigger and the opportunity of what we get to steward has has grown these are our goals where
• 03:30 - 04:00 we're going to be 10 years from now and this is if we cut our growth rate in half where we'll be 10 years from now you can barely see 2024 it's down there before the first uh line um and then we've got long-term vision to what's ahead that's our 50-year vision based on today's revenue we'd be the sixth largest company in the world um and that's with us slowing that growth to about a quarter of today's pace we know that will only happen if we consistently deliver and perform um and that's why we're here today why we're still
• 04:00 - 04:30 inviting investors to come join us we've got some big goals yet ahead so as I said my name is Don Wer i'm the founder and CEO DLP Capital that's my my wife and and three boys there uh my wife Carly we've married 14 years and our three boys Donnie who's 13 he's the one closest to me alex who's 11 and Jacob who is three my two older kids are at a ghost tour right now in downtown St augustine with their uh grandma uh so my wife's at home with Jacob they are probably watching so hi Jacob um uh since we started in 2006 um we've
• 04:30 - 05:00 invested more than 11 billion into the building of thriving communities which is what we do here and I'll explain more what that means in a moment um we've invested over $6 billion of that capital lending money to other developers builders operators of housing communities and we've invested over $5 billion directly as a developer builder operator of housing communities we do both uh here today uh been a part of uh written a couple books on on some things I'll touch on a little bit later in the
• 05:00 - 05:30 presentation that have helped with a lot of that consistent growth kind of the story of how we've grown so consistently um and uh verse of my life is to whom much is uh given much will be required and um I like many of you in this room and my dad is somewhere in the room where's my dad all the way in the back there so you can ask yeah give him a round of applause u many of you have spoken to my dad a few of you already today have told me you recently spoke to my dad and thought you were talking to me um my
• 05:30 - 06:00 dad's uh been a very important part of DLP for about 16 years now obviously an important part of my life now for 40 years um and uh uh he he can tell you about it we certainly grew up and struggled and and had challenges like many of you um uh have as well but but been incredibly blessed right i've been raised in in faith and a family who loves me and born in the United States and given great blessings and skills and opportunities and have the great you know opportunity to to serve uh so many of you today i started in 2006 as I said and I
• 06:00 - 06:30 started as a real estate agent and I grew up in a Bethlehem Pennsylvania area Lehigh Valley Pennsylvania area and I got started as a real estate agent never for a moment prior to basically the day I got into real estate had I ever once thought about going into real estate i was a college student at Drexler University at the time and uh knew what I was going to do and somebody convinced me a gentleman I was working for to give real estate a try and so in October 2006
• 06:30 - 07:00 which that month marked the peak of the real estate market that month that was the highest home prices got to that's when home uh markets stopped and homes stopped selling and and we all know what happened after that but I got started October 2006 that was also the time part of of course the crisis that came after those were the days of 100% financing so people were buying homes with no money down and so I got my real estate license and so I started marketing that you could buy a home with no money down and uh a lady called me her name was Cynthia
• 07:00 - 07:30 responded to an ad that said no money down financing call this number to learn more kind of thing i think it was even in a newspaper um and uh so she called me and and told me she had been living in her her the same apartment for 22 years and her rent for many many years was $425 per month and all of a sudden her landlord decided to double her rent which she could not afford um so that's why she responded to this ad never
• 07:30 - 08:00 bought a home before had never really thought about buying a home so I told her I could help her buy a home with no money down calculated what the mortgage payment would be which you know we were in the price range of $100,000 homes and I took her out first client I took out looking at homes and we went out and we looked at a home similar to the one in that picture i'll get to that one in a moment and when I took her to the home she had told me she needed a singlestory home and so that's what I took her to and but when I got to the home it had a couple stairs to get into the home and so she said she couldn't do those steps
• 08:00 - 08:30 and I found out when I met her she was you know very overweight and she couldn't even do a single step so I apologized i told her you know next time now I know and I'll make sure to take her to the right home next time so we go to walk back to our cars we drove separate and there was a we were at a curb similar to what you can kind of see in that bottom of that picture it was a little you know whatever they are 4-in curb and uh as she was uh going to her car and stepping off that curb she fell um landed landed on her her kind of side and and I didn't know what to do i
• 08:30 - 09:00 didn't didn't get her up and so I called 911 uh fire department came police department came they got her up she wasn't injured um got her in her car but she was as you would imagine incredibly embarrassed um so she wouldn't return she wouldn't you know go back out and look at home she wouldn't answer my calls if I did get her on the phone she she was not interested finally I convinced her to go back out and look at homes i knew she was going to get evicted soon and so I took her out i took her to this home um she saw it she wanted to buy it um so we negotiated the
• 09:00 - 09:30 deal worked through all the hard work going through the market change to get her financing day of closing finally comes you know this is now a couple months later and it's snowing outside this is Bethlehem Pennsylvania it's snowing outside and she calls me and says "I can't get my car out of the driveway." I said "No problem." I had an SUV which I knew she wouldn't be able to get into i had to trade cars with somebody hey just like um I went and picked her up um took her to closing we close on the house i drive her back home i give her a big hug
• 09:30 - 10:00 hug and I say "Cynthia it's so awesome when are you moving?" She says "This weekend." I said "Awesome who's helping you move?" And she looked at me um so so I helped her move into this home and she's been living there for 17 years now 18 years now um I get Christmas cards from her thanks me every every couple years I get a call from her and that was my first sale i made about $500 for that whole process um no exaggeration um and but I was hooked and and for the next many years what we did was helped person
• 10:00 - 10:30 by person solve their housing needs sometimes that was helping people buy homes rent homes sell homes we had a large um short sale negotiation company where through the downturn we're helping people negotiate short sales um and uh actually uh my uh partner uh in that short sale negotiation company uh his name's uh Joe Ronda was Joe Ronda and he's actually uh in hospice uh right now and um I'm working on trip up to go see him um which is quite sad so Joe Rondley
• 10:30 - 11:00 anybody knows him or if you don't please put that name in your in your prayers um and uh did that for many years and and thousands and thousands of of transactions bought thousands of homes and it took all the way to 2014 before I got clear on what I've been called to do until I got clear on on my purpose and what is the purpose of DLP to transform lives through the building of thriving communities and that really reframed a lot of how we thought about what we do and and how we do it and how do we invest in a whole
• 11:00 - 11:30 community instead of house by house um and that really became the first time that I wasn't running and growing the business just out of fear right fear of failure um fear of running out of money fear of of of of not succeeding and and started operating the business on purpose and and that's when we soon after moved here to St augustine we started buying apartment communities in Jacksonville Florida when it was arguably the most undervalued market in America that's also the time we started lending capital to other sponsors other developers builders and operators and
• 11:30 - 12:00 really has uh what we've been doing now for the past 11 years so what do we do in one simple sentence we finance the building of thriving communities so we do that on our own projects as a developer as an operator and for lots of other operators as well at DLP Capital we are impact investors so if you're invested with us you are an impact investor you're investing in impact investment funds funds that invest in housing that is uh affordable for working families so we use the term
• 12:00 - 12:30 attainable housing some people use a term workforce housing or essential housing but what it just means is housing that working families can afford and exactly what that cost is changes from market to market um but it's housing that working families can afford where the their rent is less than 30% of their income in simple terms and that's not an easy task in today's market this chart here which you might not be able to read says housing has become a luxury good and that orange
• 12:30 - 13:00 or yellowish line if you can kind of see that it says today you need to earn $120,000 a year to qualify for the average home in America that blue line that's way lower is how much the average family actually earns um so you'll notice back in the downturn those numbers were pretty close um when interest rates were 3% those numbers were pretty close um but these past couple years both with interest rate uh growth and home prices soaring
• 13:00 - 13:30 the gap is huge um right now only about 14% of families in America can afford the average home in America um and why do we have this problem why is housing so expensive well the simplest challenge is we don't have enough housing and that's been the case for for much of the last 100 plus years we haven't had enough housing and that issue is only going to get more challenging as construction is slowing so really across the whole country for those of you who live here locally it
• 13:30 - 14:00 might not feel that much because St john County is the fastest growing county in America um so we have a lot of construction going on here compared to the rest of the country but overall here as as well construction is dramatically slowing the other challenge that we face for people looking to to own a home or rent a home is that a lot of people and you've probably heard a lot about this in the news uh who have say a 3% mortgage on their home or a 4% mortgage on their home they don't want to sell that home because they don't want to give up that low interest rate mortgage
• 14:00 - 14:30 so there's very little homes coming on the market um so very little existing homes coming on the market uh newer homes uh construction is slowing so more and more people are being uh forced um to rent or that's that's the the most uh viable option financially um right now we have the biggest gap between how much the average mortgage payment is if you went and bought the average home today and took out a mortgage payment versus how much rent is we have the biggest gap we've ever had it's about 12 $1,250 a month more to own than to rent even
• 14:30 - 15:00 though rent has soared as well in fact more than half of Americans today in very simple terms cannot afford the rent they spend more than 30% of their gross income on rent and again these ch these issues are only going to get more challenging as construction slows and doesn't keep up with demand um so occupancy across rental housing today nationally is 94.8% even though some markets like right here we had some record breaking supply
• 15:00 - 15:30 deliveries of apartments but they're being quickly absorbed especially in places like here where lots of people are moving um and very little new units going into construction new homes going into construction and the biggest reason why construction is slowing there's a lot of reasons the the biggest reason why we have a housing shortage in my opinion the biggest reason why there isn't enough housing being constructed is because there's a lack of financing available to build housing so it was always the job of the
• 15:30 - 16:00 community bank the regional bank to finance the building of communities that that in my view that is the job of the bank but since 2008 really the banks have been forced out of financing the development of land the construction of housing for a lot of regul regulatory reasons um and that's only become uh harder over the last couple of years um in the banking sector so banks are very very few banks are in the business today of doing construction financing um and it's going to be quite a while I I
• 16:00 - 16:30 suspect before that changes um so there's an estimated $45 billion gap between how much need there is for just multifamily construction financing and how much capital is available and in very simple terms that's what we do at DP Capital that's our business we provide capital to build housing um we do that across four investment funds so we have a fund called the DLP lending fund uh that invest as a senior lender think of it similar to that of a bank
• 16:30 - 17:00 making first position mortgages largely to build brand new housing communities then we have the DLP preferred credit fund which primarily does mezzanine loans sort of second position loans predominantly to build housing and then we have two funds that invest equity into into housing one is the DLP housing fund which owns existing housing communities over 13,000 units today and then the DLP building community fund invests equity into building brand new housing communities that's what we do across our funds all of them are
• 17:00 - 17:30 involved in building housing that's affordable for working families uh that our rents are less than 30% of area median income 30% of the income in the area meaning people can afford the housing that's the the impact that's where our impact begins and we're able to do that while also generating we believe to be great returns for our investors is anybody in this room surprised to hear that the best employees like to work for companies with clear purpose purpose- driven organizations anybody surprised to hear that we all know that
• 17:30 - 18:00 right especially you could say the younger generation they want to work for purpose- driven organizations right organizations that that have vision that are that are making a difference in people's lives right we we we all know that that's become sort of pretty common these last um couple decades that that's that that a lot of people are driven to work for an organization doing something uh special something they feel bigger than than themselves that they're part of but I don't think enough investors correlate that to their investments and what I mean by that is
• 18:00 - 18:30 you can choose to invest on purpose as well and even if you say well I'm not focused on or don't care as much about the purposedriven in nature or the impact of my investments i just want to focus on the returns well think about this if you know which all of you nobody put their hand up and and disagreed that the best people want to work for purpose- driven organizations that means the best people work for purpose- driven organizations and which types of organizations generate the best performance the ones
• 18:30 - 19:00 with the best people right so you can choose to invest on purpose and it's good for your investments all right all right so let me talk a little bit about I've said a few times that we build thriving communities that's what we do let me explain a little bit about what that means and I'm going to welcome a couple friends to come up in a in a minute or two uh to put to give you some examples of this so right now more than 130 million Americans live in rental communities across this country
• 19:00 - 19:30 we want those residents in our communities to live a part of a thriving community a place where they can what we call at DLP live fully where they have feel safe connected and loved a place where they have access to resources um and relationships a place where we can transform lives and again you might think if you're new to us well what does that have to do with generating great returns stay with me um so the average American renter I said this earlier today in America today more than half of
• 19:30 - 20:00 them spend more than 30% of their gross income on rent and that's thought to be the threshold so think about that if you make you know $60,000 a year and over 30% of the gross income not the net the gross income just goes to pay for your rent you're going to struggle with the basics of health care food education there's just not enough money to meet uh to meet our needs about three quarters
• 20:00 - 20:30 twothirds threequarters depending on whose data you look at uh percentage of Americans live paycheck to paycheck with no savings right think about that um we we were in uh New Zealand a couple weeks ago and uh my wife and my two older boys did some volunteer work at a at a local church it you know kind of soup kitchen type of type of setup and um there was a a lady there a young lady there uh who was doing volunteer work alongside my
• 20:30 - 21:00 wife and kids and and as she was finishing up and was about to leave um she mentioned something to my wife of the fact that she had just uh spent her last four dollars and she literally had not a dollar to her name right not a dollar to name she was walking out of the church where she was there volunteering which is pretty amazing but she literally said "I just spent my last $4 i have no money." She had been out of work for a few months because she was a tour guide doing hikes and had uh broken
• 21:00 - 21:30 her ankle uh she hadn't been able to work in a few months and even though I see this all day every day and my my wife's aware when you come face to face with and think about that of talking with somebody who literally doesn't have a dollar to their name right um and that's how here in the US obviously we have credit cards and such but but could you imagine that where there's not any any backup not a dollar in the bank um uh and that's how so many Americans live can you imagine why it's so hard to focus on on other things uh that we're
• 21:30 - 22:00 going to talk about here when you have not a dollar uh to your name when you're you're literally just fighting to make ends meet uh month in and month out so in addition to the financial challenges that residents face uh 77% of all Americans so business owners if you're not aware of this uh pay attention uh 77% of all Americans not just renters are disengaged in their at their jobs disengaged at their jobs
• 22:00 - 22:30 they're not connected to their work large percentage of Americans and we have stats all over the place you but a large percentage of Americans are not connected to the local community they live in uh estimated 84% of renters in America are not connected to the local community they live in meaning they don't have friendships relationships there the average American renter moves about every 15 months so they're moving almost every year the lack of connection and trust and safety and relationships is a big part of that the financial
• 22:30 - 23:00 challenge is another huge part of that as well this is a scary stat and my u u marketing team just updated the stats first time I'm seeing this stat stat um but uh previous slide I stat said 65% of children uh going into the fourth grade are reading below grade level so they have some updated data so it hasn't gotten better since the last time we had the data now it's 69% of fourth graders are reading below grade level and then 70% of eighth graders so we're not doing
• 23:00 - 23:30 a great job in the middle school ages of of uh of getting kids on track um as you can see and you could argue and there's uh uh many uh who would argue many economists many educators who would argue that the biggest stat to pay attention to in terms of social mobility is this stat that if children fall below reading level going into the fourth grade um they tend to fall behind then in life and the probability of ending up
• 23:30 - 24:00 in prison ending up in in really uh bad outcomes versus the probability of ending up with a life of prosperity is is is dramatic if you fall below reading grade level going to fourth grade and the simple statement that always sticks with me is that from kindergarten to third grade you learn to read from fourth grade on you read to learn so if you can't read going into fourth grade you start falling behind and I've never found data exactly on this but I can guarantee you without any hard data that these stats are worse for renters than
• 24:00 - 24:30 they are for homeowners and I don't think any of us that's a big stretch to believe that that this is even worse for those in rental communities people moving every year without stability um than the average family one of the reasons why this is such a great place to live this is the number seven school district in America 92% of the children in St john County read at grade level going into the fourth grade take a guess at what the next best county in Florida is no percent take a guess at what the percentages of second best out of 53
• 24:30 - 25:00 counties 50% somebody said 57 i think they guys are pretty close it's last time I looked at it was 54% is the second best county out of 53 in the state of Florida right um it's a big problem and then the scariest stat to me out of any of these that I'm covering is that 94 to 95% of renters are unchurched they're not part of a church community so you think about that if
• 25:00 - 25:30 you're somebody who attends church on on your way to church on Sunday morning you are driving right past mission fields and you don't even think about it don't even realize it 95% not connected to a church not connected to a church not connected to a local community not connected to their work right they say today we we have the most connected society in human history but also the most disconnected right it's a loneliness crisis in this country and again it's worse for renters so we've
• 25:30 - 26:00 been working on these 10 elements these 10 ingredients of a thriving community we're still very much working on it um but for us it starts with attainable housing so again that's safe housing affordable housing that people housing that people can afford and then bringing access to banking and and lending and education around banking and lending and we actually had a fun conversation on this earlier today with a couple of our leaders in our bank on the importance of financial literacy um is even more important the financial literacy often and access to a bank account than it is
• 26:00 - 26:30 even giving uh families loans um we need companies that create jobs any deep connections and relationships is really at the center of a of a thriving community that's where safety comes from safety comes from knowing your neighbors uh we need education we need a focus on on the family a stat that if you take one thing from this presentation tonight is that 99% of husband and wives who pray together stay together um yeah that's Thank you that's
• 26:30 - 27:00 a that's a big deal um uh healthcare nutrition impact again residents serving residents and then for us for me um we we know a thriving community a place where transformation happens is a place where Jesus is and we're but we welcome all people and to be clear the majority of our residents are not believers in Jesus um we welcome residents of of all backgrounds all beliefs and we want them all to feel loved so our goal is to build thriving
• 27:00 - 27:30 communities where our residents can live fully where they can achieve success you know prosperity in their personal life but they also will have can have significance alongside them and significance in simple terms is helping other people they can feel they're connected to a community a place where they're helping other people and we can do that while generating great returns so I'm going to just explain this in a little bit and then I'm going to ask uh my two friends here Dominic and Robbie to come up here in a moment and give you a little bit of examples here um so but I'm going to make break this down to to
• 27:30 - 28:00 to make it really clear and obvious to how this works so our focus is is to have residents live in our communities for eight years on average a reminder I said the average is 15 months so if residents live in their communities much much longer say 8 years instead of 15 months if occupancies would be higher right and that means we would generate more revenue right pretty obvious right if
• 28:00 - 28:30 people can afford the rent guess what they do they stay they pay the rent right if they can afford the rent they pay the rent and if they pay their rent they stay in the community right that means we have lower delinquencies which means we collect more rent which again means we have more income and if alongside of that we're providing literacy and education and bank accounts they're going to be able to build up some savings and and not be
• 28:30 - 29:00 in this uh month-to-month situation so many people are in if people are staying in the community if they're feeling loved and appreciated and have friends and relationships they write good reviews they refer other people to come live there all of these things lead to more people wanting to live there and higher occupancies when people aren't leaving all the time and they're happy and they feel connected and they feel they're in a home they take better care of the apartment you have lower turnover costs lower maintenance costs meaning
• 29:00 - 29:30 lower expenses which means more profits so by loving on our residents keeping them in the communities having our residents be able to afford their rents it increases our profits uh within our communities while at the same time we can impact the lives of a lot of people so financially our goal is to have 100% of our residents being able to afford their rent um are you guys trying to send me a signal here i got a light blinking at me no all right i don't know
• 29:30 - 30:00 if I'm being getting a bat signal here or what uh what uh we want at least 70% of our residents to have uh three 3 months of savings we want 8year average occupancies which in simple terms we do mostly two-year leases instead of one year and we want 80% of the time they renew their lease they stay not everybody's going to stay doesn't make sense for everybody to stay people get jobs and move somewhere else people get to a position where they're ready to buy a home um but if we don't want them leaving to go to another apartment
• 30:00 - 30:30 community we have residents serving residents we have 84% of our community our residents saying they're connected to the local community 80 plus% of our residents who say they're happy by their own survey 80% of residents who are living fully 80% of our residents who say they have at least two close friends who live in the community they live in do you know the average American only has one and a half close friends and usually they don't even live in the same city you live in let alone the same community um 50% of residents are part of a small group or a club that could be
• 30:30 - 31:00 a disciplehip group that could be yoga class um but they're a part of a group a community we want 80 plus% of our children reading at third grade reading at grade level coming out of the third grade we want 80% of our residents adults uh attending at least an hour of training education that could be on financial literacy again could be a Bible study that could be on parenting um but attending regular education be on fitness um etc and then we want uh 80 plus% of our residents a part of a uh a church
• 31:00 - 31:30 community whether that's a church community we're running at the physical rental community or that's connecting them to a church uh outside of the community and then for me personally I want millions of people to come to know and love God to have a relationship with the Lord and um I'm going to bring up my two friends uh Dominic and Robbie to talk a little bit about how they do this um they've been a partner of ours uh in a number of our communities today uh rolling their ministry services out to many others as we speak uh so let's give
• 31:30 - 32:00 them a warm DLP welcome all right my name is Dominic Rosado this is Robbie Solomon we runway forward um and one I wanted to kind of just piggyback off what Danny said starting off is that we are blessed to be a blessing and so DLP has been a huge blessing to us uh just this year actually just January so just a couple months in uh and has really prepped us and positioned us to be a blessing to the the residents that we serve and so
• 32:00 - 32:30 way forward is a national nonprofit uh we're based in Austin Texas uh and we are laser focused in the multi-ousing um industry uh placing people right boots on the ground to live on site to kind of enact our program and initiatives and the impact but being a Christian is just good for business and that's not just you any business but specifically in multi-ousing real estate being a Christian is good for business but all because all the stats we just looked at a second ago um and so we work with
• 32:30 - 33:00 several other Christian real estate owners and operators um mostly around the Sunb Belt area kind of here between here and Texas uh and then we recruit and train and vet believers from local churches yes but other nonprofits and other groups um in the area to come in and live at our properties that we are partnering with um to initiate and be kind of a spearhead of community and care uh and celebration through events and amenities and those kind of things
• 33:00 - 33:30 um and we do believe I think this is how I would say it is that we do believe in uh market rate returns and impact both social impact and kingdom impact right um that we can see people building um uh thriving communities at the property level uh and so we are already operating a number of DLP properties right now uh and we're hoping to scale with them um putting more of our team members on site uh to lead out events which I'll have a a quick picture of in a second and
• 33:30 - 34:00 stories um but these teams are facilitators of engagement they're facilitators of connection uh they're facilitators of just community uh and they're facilitators of empowerment so yes we're a nonprofit we're a 51c3 a way forward uh but we're not trying to create any dependency on us right we're trying to empower individuals and empower communities to to actually meet one another's needs um to empower them to live fully uh to be a community that actually um meets the needs you know
• 34:00 - 34:30 down the street or across the city as well and so just last year just a quick few numbers at way forward um was 411 so on average per property just last year real quick and we'll get to some stories but on average we saw four people per property last year come to faith for the first time and started following Jesus um thank you thank you is all the Lord not us um but our people are are living those numbers right our people are on site so
• 34:30 - 35:00 they're they've signed leases they live on site um and they're getting a lot of support of course from the DLP team um um so really help uh thankful for that so four is number of professions per property last year number one uh the next number is on average one ongoing what we call discovery Bible group that's happening at the property um we have some with staff sometimes but mostly with the residents those are ongoing some properties have two to four um and then it just depends on kind of the engagement level um but there's like
• 35:00 - 35:30 some fun little like lines at the bottom but all are welcome if you see that on those slides and so we're not doing anything that's like pushy or bait and switch there's nothing that's you know there's no smoking mirrors we're our teams are just genuinely trying to care and love on the people that live there uh and then um the last number is also one 411 uh and we saw roughly one baptism per property as well and so um I'm going to have Robbie just share a few stories and so we're we're grateful to be here um we're excited to grow with
• 35:30 - 36:00 DLP um in the building of thriving communities and having residents like empowered residents actually seeing other residents um you know cared for and equipped uh to off always you know pay rent and always um man build these communities but we do believe that being a Christian is just good for business so I'm going to prep uh prep up Robbie here share a few stories uh I'm going to give this to you there you go absolutely thank you Dom uh we are people that
• 36:00 - 36:30 value numbers we are people that value statistics but we believe that stories go a longer way and I just want to acknowledge even the first story that Don opened with that is our DNA i truly believe Don wasn't just doing good business with that lady with selling the first home that was his DNA and that was maybe him being one of her only friends after all those years of living uh in multousing renting and maybe having Don
• 36:30 - 37:00 as the only person who would move her into her new home that is our DNA a way forward and these are the stories that we want to share uh here uh earlier this year we kicked off one of our programs at one of the DLP properties in Florida we had the beautiful event that we launched and even today I was with them uh going around performing new resident movein welcomes we have gift bags we visited them at their door uh there was
• 37:00 - 37:30 this couple just moved from Arizona to work at uh NASA and they were so surprised that someone within their two weeks of moving in was at their door not just as a outsourced program but someone that lived on site that was their neighbors that introduced themselves gave them a warm welcome gave them a gift bag and they were so surprised that our invite was not anything that we had to sell them we were not salesmen at the door we literally just said "Hey do you
• 37:30 - 38:00 have any friends here are you're moving from Arizona do you know anyone?" And their answer was "No we're starting from scratch." And our pitch was "Can we be your friends can we hang out with you?" It is not rocket science he worked at NASA but no pun intended there it is just teaching people how to hang out again it's that simple and here we have some stories uh this is literally from this year earlier this year uh the lady on the left we can see her being
• 38:00 - 38:30 baptized uh at our one of our properties in Texas in Dallas uh she was met around the neighborhood around the community uh one of our team simply invited her to a movie night we had a movie night at the clubhouse was definitely a movie with purpose uh and after the movie we prompted some reflections and she we could see that she had a desire to improve her life holistically and to know more about God and after a couple of discovery Bible groups that are very organic very informal she decided to
• 38:30 - 39:00 follow Jesus and not only follow Jesus but after more disciplehip get baptized and this all happened this year beginning of this year and so let's give it up to God he's such a faithful God and the other three pictures we apologize there for the uh for the almost naked picture guys but uh it gets messy multi-ousing uh ministry gets messy but that story hits close to home
• 39:00 - 39:30 because both Dom and I we live in Austin Texas one of those guys his name is Mike same thing uh we were with our team met him at the door and he said "Hey I moved from uh Laredo don't have many friends here." All we asked was "Hey do you want to join a cookout?" He started hanging out with us started joining a discovery Bible group and the next uh invitation we offer to those people was Dom's bachelor party that's how we do it at way forward we invite our neighbors to
• 39:30 - 40:00 bachelor parties and guess what there they got baptized now I don't know the last time you went to a bachelor party and saw people coming to faith and getting baptized but that's how we do it we truly befriend people we're genuine we let them into our lives they're not a number they're not a project we truly care we don't care if we're in the executive um area or if there are teams on site we truly love these people and not only Mike got baptized but the
• 40:00 - 40:30 friends he brought with him were able to see a family a group of people that had a cookout at the pool and loved each other and decided to follow this God and this community and to this day they're part of our small group they're part of our community in Austin and this is what we're all about so we're super thankful for Don their DNA they exemplify this first and they want to be a blessing to others and thank you all for being a part of
• 40:30 - 41:00 [Applause] this all right thank you gentlemen and so I they've they knew they were doing this about 2 hours ago so they weren't they weren't here for to present and uh and I and I we asked them to step up and share a little bit so I'll actually tell you why they were in town in a in a moment um all right thank you so uh DLP invests in building thriving communities directly as an owner and operator of
• 41:00 - 41:30 housing communities as well as as a lender we invest in building brand new communities as well as investing in existing communities we do some of our communities are single family multifamily manufactured housing the largest sector is multif family but we ac invest across housing classes construction types that allow us to provide housing that's affordable places where residents can dream live and prosper and that's what DLP stands for if you weren't aware um and we do all that while seeking to generate regular
• 41:30 - 42:00 distributions and doubledigit returns while providing liquidity and tax efficiency while as Dom said making a social and kingdom impact our purpose again is to transform lives to the building of thriving communities and in one simple sentence we finance the building of thriving communities in addition to just providing capital to housing operators builders developers we also bring them community and systems so Dom and and Robbie were in town because we just got done down at the uh Panavra
• 42:00 - 42:30 Lodge hosting a two-day event called building an extraordinary organization as an event with about a 100 developers builders operators from all over the country but also we brought some of our ministry partners and also brought some of our investors who run companies who wanted to come and focus on building a great business um and that's this community we've built the people we know really really well the people we deploy our capital with are sponsors who want to build great organizations um as I mentioned on the onset I wrote a couple books building an elite organization
• 42:30 - 43:00 building an elite career writing a new book right now called building extraordinary organization which are to help organizations do do the hard work necessary put in the discipline and rigor around setting goals achieving those goals solving problems uh and communicating as you go through tremendous growth as your businesses get more complicated and uh we have a an organization filled um with great sponsors who want to do just that for us extraordinary organizations are organizations who understand that business is ministry not just nonprofits for-profit businesses and accept the
• 43:00 - 43:30 great responsibility do the hard work to build a great business that creates jobs and that makes a difference this is our team our extraordinary team at DLP Capital this was down the street here at the yards pickle ball courts um back in January at our annual vision day um these are our uh business lines our brands across DLP Capital today along with our our bank platform um we have different types of housing communities brands that we run and operate based on
• 43:30 - 44:00 the different types of product types so to bring you guys involved in this here as I wrap up here in a few minutes and bring one more friend up who would like to be a part of building thriving communities where people can afford their rent and live fully anybody that sound good to you all right i got some hands up for that all right uh who'd like to be a part of transforming lives and building your legacy i'm going to come to that in a minute and this is the one I know I'll get the most hands for for who wants to earn double digit returns and regular distribution all right good good you're in the right place um so this is a great
• 44:00 - 44:30 time to invest if you're investing in the right assets in the right place in the capital stack across our investment funds I've talked a lot about what we invest in i showed you this chart earlier of where we invest in the capital stack so one thing I didn't highlight is that all of our investments there's always equity subordinate to the fund we're always in a position of equity subordinate to us we have a track record now 13 plus years we've run 10 funds we've generated great consistent
• 44:30 - 45:00 returns exceeded return targets in every fund hit every preferred return target um uh in every fund in our entire history have never lost a dollar for any investor in any investment vehicle uh all of our funds are evergreen which is pretty cool what that means is each of those investment vehicles I talked about we expect to be running them three years from now 5 years from now 10 years from now but you're not locked in to be with us three years from now 5 years from now 10 years you have liquidity um these are our return history across these four
• 45:00 - 45:30 funds the DP lending fund is the easiest fund maybe to understand 10-year history of generating uh double-digit returns net to investors with 90-day liquidity quite unique we actually pay out two distributions a month we pay out the preferred return the first of every month and then all the additional income the middle of each month um what we do is make first position loans here to real estate developers builders operators mid50s loan to value historically 54 55% loan to value and
• 45:30 - 46:00 mid70s loan to cost these are the professional real estate operators um that we're making these loans to we've made over 4,000 loans in this fund we haven't written off a dollar of principle or interest on a single loan to date um so I talked a lot about what we invest in these are borrowers with on average almost $5 million liquidity 740 credit score lots of experience lots of experience with us usually we do most of our lending to repeat clients this is a groundup development in Ocala Florida
• 46:00 - 46:30 $24 million loan to build 1,250 building lots that will become uh housing both for rent and for sale in Ocala Florida uh this is a loan for a groundup apartment community near Pinehurst uh golf course we got involved in this project they had already bought the land got it approved uh cleared the land uh ready to go vertical construction already had their contract with their GC locked in and we gave them a loan to build this community this sponsor actually uh owns Reed's Jewelry Store if
• 46:30 - 47:00 you ever heard of that they've done about 75 projects like this including one down the street and we gave him a first position loan at a 12.5% interest rate um to build this community it's under construction right now um this is a project in uh Bethleam Pennsylvania uh where I grew up uh this was for many years a movie theater uh for many year the last number of years the movie theater went into disrepair that's what it looked like when we did our loan um it had had water come in and the place
• 47:00 - 47:30 was uh filled with all kinds of things um and this was the the plan of the developer to turn it into that apartment community at the top he had to buy that building knock it down he had to buy the properties on the left and the right um and uh this was the groundbreaking we were out at when uh he had cleared everything and was ready to go vertical and then this was the ribbon cutting um about four or five months ago uh out at the property that's the sponsor Rocco and his son there cutting the ribbon um
• 47:30 - 48:00 and this is what the property looks like today um really beautiful uh property that's providing housing that's affordable in that marketplace a property that was previously a blight uh on basically Main Street uh in town so that's what we do in the lending fund 100% income distributed monthly 90-day liquidity we've hit double digit yields 1099 tax reporting and all of our funds have unlimited qualified business income deduction which means you're taxed at a 20% lower tax bracket than your ordinary
• 48:00 - 48:30 income all right then our preferred credit fund basically does everything I just talked about but often invests as a second position loan i could easily argue that it's even lower risk than our senior position lending here we generate uh 1% higher preferred returns 1% higher target return same 90-day liquidity we only do these loans to our highest quality sponsors always a lot of equity behind us this is a project we did a $19 million loan on in So Texas um and uh
• 48:30 - 49:00 that's what the project looks like today this is the little town uh this is what it looked like when we got involved we actually got involved mid construction it's a It's a a really cool story but I'll keep it short right now and now this is what it looks like today it's being leased up uh as we speak we also don't just build new construction one of our sponsors who's who's been in town I don't think they're still here tonight but they've been in town over these last couple days called Sage they buy old hotels motel and they convert them into affordable housing units they've done 27 of these so far um and have a really
• 49:00 - 49:30 great business model um to do so all right then we have the DP Housing Fund we invest equity in existing housing communities we own 13,241 units today um we've generated uh high teen yields net to investors with a 6% preferred return paid monthly double digit targets annual liquidity and to date we've been able to shelter all of the income that's been distributed from tax while you've been invested with us so very very very tax efficient uh and that's one of the big
• 49:30 - 50:00 drivers uh to invest in this fund and then finally we have the building community fund this is our fund that invests equity in building brand new housing communities has our highest return target we're building brand new communities multif family single family uh predominantly uh 8% preferred return uh same annual liquidity um as the housing fund as well and this is an example of a project in construction right now did anybody join us in Dollywood this past summer at our big
• 50:00 - 50:30 family event all right some hands here so uh you guys may have remember seeing this when you went out there in June it was land um this is what it looks like as of a few weeks ago um uh units are under construction lease up starts soon um but it'll be 312 units that are affordable uh in Pigeon Forge which is a big tourist area so really providing jobs to the tourist industry and then finally you can as a fixed note holder get a fixed return 9% fixed notes we offer take distributions every month let it compound and grow your choice and get
• 50:30 - 51:00 a 9% fixed return and before I wrap up with the last thing I'm going to talk about um I want to talk about DLP gives and I'm going to invite a friend up here and then again we will take take questions in a moment so DLP gives is something we launched last year and it's a way for you to uh give uh alongside us just like you invest alongside us right so if you're investors with us you're trusting your capital for us to steward it generate great returns for you well we have a a foundation that Danny who
• 51:00 - 51:30 started us off talked about called the DLP Positive Returns Foundation where we do a ton of work to to vet out and and and co- lababor alongside great organizations and we've created a way for you to give alongside us where 100% of the proceeds go to those great organizations and what we recommend or what we'd love for you to consider doing is having 1% of your investment go into the LP gives put generosity on autopilot our returns have been over 10% across our funds so that's less than 10 percent
• 51:30 - 52:00 tithing um and and let us do the hard work and see what we're doing and vet out great organizations like Tim Tios like uh Pablo who you'll hear from in a minute uh so we just encourage you to think about that and evaluate if you didn't trust us uh to uh to guide some of your generosity um all right um and uh no heavy lifting we do all the work we give you all the reporting but also opportunities to see in touch come join us on vision trips uh come join us to things like we did with Tim Tibo recently meet some of the leaders like
• 52:00 - 52:30 you're about to do at events like this and the big event where you have coming up here soon um so with that said I'm going to invite Pablo to come up here um some of you have met Pablo who's met Pablo before few of you okay so Pablo runs a great uh ministry called Transforming Futures in Guatemala he also found out two hours ago uh he's coming up here u so let's give him a warm DLP welcome please well thank you very much i'm Pablo i'm Guatemala born and raised there and I'm
• 52:30 - 53:00 here um as a partner of DLP uh you know Don's DNA and Carla um they visit us about a year and a half ago and we became partners and so um just super glad to have the opportunity to present to you that you know success it there's also significance in that and and I think this is a significant part of it and so uh just to to give you a quick one minute uh you know summary of what we do uh we support orphans that live in
• 53:00 - 53:30 institutional care and we help them become independent adults so we give them tools life skills scholarships and residential opportunities so they can become everything that God wanted them to be and so to illustrate what we do um I wanted to introduce you to little Astrid um this is one of our girls she's a third-year student uh little Astred when she was a little girl um she was unfortunately abandoned and abused by her parents and her seven siblings um no
• 53:30 - 54:00 protection no food no care older brother starts stealing in the streets of Guatemala and they are teaching Astrid how to steal and so she follows she doesn't know what what to do she's just trying to survive and so her early life it's about stealing from the streets so they can eat um but she makes a very hard decision to leave her siblings and she actually goes to the police and give herself in and that's how she ends up in
• 54:00 - 54:30 an orphanage and she lives her whole childhood in an orphanage but she carry all the wounds with her so in the second picture is one of the first pictures we take at the training center she's now 17 years old and she's just starting with us we have a three-year program um and she's full of anger she's defensive she doesn't want to talk to us much um she really feels like our group therapies are for crazy people and so she's not
• 54:30 - 55:00 really taking anything from us um but slowly and steady we provide what we our program is called thinking outside the box because we allow them to think outside their box outside the institutional care and the training starts with her and little by little I start noticing that there's hope in her and slowly she starts healing from all the stuff that she lived but more importantly I think she healed when she realized that healing comes not from
• 55:00 - 55:30 pretending that everything is okay But healing comes really when you surround it to Jesus and so that's when the real healing started in her life and so she started letting go of all the insecurities of all the uh anger all the stuff that she carried with her so in the third picture that was taken a few weeks ago I can report to you that now she's a sophomore in college she's going and she she's going to be a psych psychologist now um after thinking that
• 55:30 - 56:00 only crazy people go to therapy um and she's a great student but more than her grades she's a great leader and now she's mentoring younger teens as well and teaching them if God changed me he can change you as well and so we uh have seen her grown and I am so proud of her i actually just text her before I got into stage and I said I'm going to share your story and and she's like "What are you going to share like what what is it and she allowed me to share her story with you guys um but there's
• 56:00 - 56:30 so many astrids in Guatemala that I still need to reach out at the moment we're supporting 116 orphans and in a trajectory that we have of course Don has helped me to set that trajectory we're going to reach out all orphans in Guatemala and our our purpose is to give that platform of opportunities so for us it's very important um to share this platform because we don't have access to the platform like this but Don allows us to share this story with you guys and so
• 56:30 - 57:00 continue to partner with DLP dlp gives they support us and we continue to change the world so thank you [Applause] guys all right so so to wrap up to that so if you want to check out WAB yes it' be great to to be generous and support them but but one of the coolest thing you can do is is go see it and so I've I've been to Guatemala I think four or five times in the past year and a half and my kids have been on these vision trips multiple times it's it's it's it's life-changing um so you can see there
• 57:00 - 57:30 July 31st to August 3rd um we have a trip there uh December 3rd to the 6th um I'm I'm on that trip for sure um September 4th to the 7th and then we also have a couple other great ministries that we're involved in uh one in Bise uh called Pathflight um where we'll be there September 7th and 11th and then in February um and October with Hope International and I'm actually flying out tomorrow morning to go to Hope International event um as
• 57:30 - 58:00 well um um but those are some opportunities talk with us a lot of our investor relations team leaders and and Larry as an example and Bo and many have Nick have all have been on these trips and can share some of their experience um as well all right so closer to home want to invite you to join us for an impactful event um you've hopefully seen these emails from us we have an event called our extraordinary family event in Asheville North Carolina which is where I live in the summertime uh June 25th to 28 the beautiful Omni Grove Park in um
• 58:00 - 58:30 and this event for family so if you're at the stage where you have grandchildren great bring your kids and grandchildren we literally have content educational tracks for elementary school kids teenage kids young adults um we have John C maxwell as one of our speakers we have Nick Voyichek one of the best speakers you'll ever see has no arms no legs unbelievable story um we have the winner of America's Got Talent Dustin Devela who's one of the best entertainers you'll ever see we have child care for infants um pickle ball fun activities is three days everything
• 58:30 - 59:00 handled of of just incredible fun it'll be hundreds of kids uh there uh it'll be a blast so come join us hundreds of of our investors already are um talk with us anything I talked about tonight you want to talk about with us our team's available to you you're probably working with one of these colleagues already but if not we're available to you love the opportunity to serve you this is our investor relations uh team and uh this is the team that supports them many of them are here today and you've talked to many of them um probably to come here uh today as well i'm going to wrap up there
• 59:00 - 59:30 i know we've covered a lot of ground um but I will go ahead take questions if you need to grab a drink or hit the bathroom or whatnot please uh don't hesitate but we will we do have mics so if you have a question raise your hand we'll answer a few questions and then uh we'll be around as well for oneonone um so any questions anybody has thank you kurt all right right here um just a thought there's a difference between
• 59:30 - 60:00 seven years ago and today in in something that you said but I think we're still going to be on the same page when you were talking about the lending fund for instance you said you you pay this and then you pay the preferred second you did it easy for me when we first met you okay the first 10% is for the investor the next 2 and 12% is for DLP and after that if there was anything left it went to the investor i don't know if that's still true yeah but it sounds a whole lot easier than you get this and then you get the preferred yeah
• 60:00 - 60:30 so that's a good point and I didn't even mention it so thank you for that i I I'll uh I'll give you your tip uh afterwards so all of our funds uh pay a preferred return that I quickly showed but what's unique about us and if you invest in any other uh investments this is probably not the case we pay our preferred return out to you before we earn anything so preferred return gets paid first then we get our management fee so most every other fund manager is the other way around we get paid
• 60:30 - 61:00 regardless of the performance our funds you get the preferred return first so in the lending fund that's 8% then we get our management fee and then the profits are split 8020 beyond that so that 8% preferred return gets paid on the first of the month and then all the rest of the profits get split the middle of the month um as example so yes thank you for that hey um one question I've always had with affordable housing is how do
• 61:00 - 61:30 you protect yourself from the undesirable people that would be Thank you John so his question was in in affordable housing how do we protect ourselves from you know undesirable uh renters yeah so there's a lot that goes into and and today one of the biggest challenges you face is fraud um very easy uh to fra to create fraudulent payubs as an example now um so we do a full screening
• 61:30 - 62:00 we use two or three different services that are involved in screening background checks employment verification financial verification etc and then depending on those situ verifying you know no no eviction history and then based on if there's any issue reference checks and and we've had many cases of you go one of the best ways you can check on a resident is go stop at where they live today and see how the apartment looks if I were to make a bet that would I would have made
• 62:00 - 62:30 thank you yes okay a question which to me is a little bit of the elephant in the room but with yesterday's um announcements of tariffs and the current administration how's that going to affect your returns on investment um thank you um so um so in terms of tariffs um what I would just summarize I'm going to give you a first at least a semi-indirect answer but but I'll get there you know
• 62:30 - 63:00 tariffs interest rates um inflation political any policy change tax change right these are all the things that people of course worry about um as as we should things that affect uh the economy um and they're all different forms of volatility and change and and but what there is no volatility about is that we have a shortage of housing and incredible demand and a lot of these things that you talk about uh only add to the challenges with building
• 63:00 - 63:30 more housing only add to the challenges with people needing a safe affordable place to live um so we pay attention to them all um we try not to overreact um to any one thing that's going on especially before you even know what's happening right because you know that that talk while we've been sitting here the what what might happen might have changed right and what the rules are going to be and how that affects us um but we know is we've got endless demand for uh affordable places to live and so
• 63:30 - 64:00 there's a lot of things that that may change and that will change i promise you there'll be changes yet this year that none of us are thinking about um that we'll deal with and we'll have to work through and what we always try to do in in events like this is important part of it is is communicate and um so when COVID hit that was one of the biggest you know challenges you know we faced and all of a sudden all everybody heard on the news is nobody's going to make their mortgage payments loans are going to go into default and renters aren't going to pay their rent because the government told them they don't need to right and so everybody was worried and we started doing two webinars every
• 64:00 - 64:30 week and communicate here here's what's going on with rent collections here's what's going on with our our loan payments here's how we're handling it here's what we're doing and check in again with us in a few days right and and in the beginning we broke Zoom a few times because everybody wanted to hear those answers and then a few weeks people stopped showing up because it was pretty boring because because we were working through it right um so there's going to be volatility changes but um so I I can't tell you exactly how tariffs are going to affect things um affects a
• 64:30 - 65:00 lot of different elements especially across the spectrum of what we do in a lot of ways but but fear and lack of capital to go into investing tends to be good for us because that means there's less competition for the best borrowers that means there's less housing being built etc yeah thank you is it real okay uh thank you um so my question is related to um the assumption is that home ownership is better than renting um and how do you think about
• 65:00 - 65:30 from a metrics perspective maturing people into from renting into home ownership and how does DLP think about that yeah uh so you know we are moving more and more for some of the reasons I talked about earlier moving more and more into a renter nation less and less percentage of Americans are homeowners that's the financial realities that I talked about but it's also the change in um lifestyle um as well people don't stay at their jobs as long people move
• 65:30 - 66:00 around the country more often so we don't have and you think about many of the people today starting families um they you know were they were becoming adults during the great financial recession and so the biggest housing crash and they don't have the same uh belief that previous generations do that you know white picket fence and owning your own home is is the path not to mention one of the unique things that has changed is that it used to be you rent an apartment so you have a family then you go buy a home right that's the
• 66:00 - 66:30 kind of the American dream well now you can rent a home right and and live in the same neighborhood and be in the school district and not be a homeowner so all that to say I think home ownership is great and I'm a big fan of home ownership and and we want people to become homeowners it's one of the reasons why you'll see if you if you're with us for the years ahead I expect you're going to see us more and more involved in manufactured housing communities where people own their home but they rent the lot and that's still the most cost-effective way for people
• 66:30 - 67:00 to to really for of cost of living as a whole but for home ownership and uh we're big advocates and believers in people becoming homeowners um so big fan of it but for a lot of people right now it's not a reality um and and for those who want to become home owners we've done all kinds of different programs to help people become homeowners that's one of the most common uh dreams we grant um for employees and residents is pay giving them first time you know first of home buyer down payments letting people out of their leases without you know penalties if they're buying a home
• 67:00 - 67:30 things like that so big fan of it but um but some of those elements I think the demand for renters is going to stay very very high not to mention older Americans saying hey I don't want to own anymore i want less headache and they're going into the rental pool that's actually the sector of rent renters that's growing the most is 55 up uh uh people going back to renting but great question anybody else take going once twice all right
• 67:30 - 68:00 thank you everybody appreciate it [Music] [Music]