Q2DLPCapitalAdvisorsRecap

Q22017Recap

Q2wasthebestQuartertodateforDLPCapitalAdvisorsintermsofourcompanygrowth,beatingourpreviousrecordinQ12017bymorethan$1.5M.Someofthekeyhighlightsinclude:

· Anotherrecord-breakingquarterforDLPCapitalAdvisorswithover$14.5Minvestedfromexistingandnewinvestorsincluding34newinvestors.

· ThefirstacquisitionfortheEquityFundIIwascompletedinTitusville,Florida· Record-breakingloanfundingQuarterwith81loansFundedfortotalloanfundingsover

$10.99MillioninQ2.· SuccessfulAcquisitionofnearly500apartmentsacross3states&4markets.· KeyHires:JamesShearer,VPofMulti-Family;CarlosChirino,SeniorAcquisition,Renovation,

andMaintenanceProjectLeader;andMattJohnControllerQ2FundPerformance

• 13.95%annualizednetreturntoinvestorsintheDLPFixedFund • 13.09%annualizednetreturntoinvestorsintheDLPLendingFund • 12.56%annualizednetreturntoinvestorsintheDLPIncome&GrowthFund • 9%AnnualizedPreferredReturnfor2016achieved&distributedtoinvestorsintheDLPEquity

FundI,LP • FixedReturnspaidtoallinvestorsrangingfrom6.5%-12%

Q22017MarketReview

Q2of2017wasastrongmarketonmanyfronts.Therealestatemarketcontinuestobedrivenbysupply&demand,withsupplyinQ2atabout3monthsofhomesonthemarket.Thisismorethana30%declinethan1yearago;whichwasatthetime,analltimelow.Despitethelackofsupply,salesvolumestillmanagedtoincreaseby5.4%,slightlyexceedingtheexpectationwesetof3-5%.Homepricesgrewsignificantly–up5.7%fromQ2of2016,nearlyexactlythesamepricegrowthaQ1,withanannualyearoveryearsalespricegrowthof5.7%,onpacetobethelargesthomepricegrowthyearoveryearsince2005whichisrightinlinewithour4-7%projection.Homessoldata15%fasterrateinQ22017vs2016,withanaveragetimetosellofjust47days,andevenmoreimpressive–amediantimeonmarketof18days!

InLehighValley: 2017Q2 %Change YTD %Change Numberofhomesales 2341 +5.4% 3,800 +.4.36% Averagehomesaleprice $185,000 +5.7% $209,329 +5.7%Averagepersq.ft. $104.73 -4.12% $103.18 -.04%

Q2RehabFundingMarketRecap

Therehabmarketremainsverystrong.Renovatedhomesaresellingveryquicklyinmostmarkets,ofteninunder3weeks.Thevolumeofinvestorscontinuestogrowaswell,whichistypicalinastrongmarketliketoday.Theprimarychallengeofmostinvestorsisfindingopportunitiesordeals.Wecontinuetobuildmorestrongrelationshipswithborrowers;growingourpoolforpotentialloans.Ourprimarychallengeinourbusinessdevelopment&growtheffortsisthatmoreandmorelendersareenteringthebusiness&continuingtogetmoreaggressiveintermsofpricing,butevenmorecriticalintermsoftheirguidelines.Weareseeinglendersoffer100%ofpurchase&renovationcosts;loosencreditguidelinesorinsomecasesnearlyremovethem;removepersonalguaranteerequirementsetc.DLPisnotwillingtochasebusiness&lowerthequalityofourloansdespitethesemarketconditions;andwillcontinuetofocusit’seffortsonexperienced&liquidcashstronginvestors.

Q32017RealEstateMarketOutlook WeexpecttoseeacontinuedrecordlowinventoryavailablehomesintheLehighValley,aswellasmostmarketstheDLPInvestorsand/orlendsinthroughouttherestofthisyear.Wealsoexpecttoseesalesvolumecontinuetogrowbetween3-5%alongwithhomepricegrowthof4-7%Q3overQ3.Asfortherentalmarketweexpectrentstoincrease3-5%Q32017overQ32016.,alongwithcontinuedstrongoccupancylevels&rentaldemand.Lastly,weexpectinterestratestocontinuetocreepupslightly;betweena¼&½percentincreasefromtheendofQ2.Weareinaverystrongmarketonboththehomesaleaswellasrentalmarkets.Supplyanddemandisverymuchworkingininvestorsfavoronboththesales&rentalfronts.

OverallMarketExpectationsComparedtoQ1

Sale

Volume Supply Prices Interest

Rates RentalOccupancy Rent

Price

Q3DLPCapitalAdvisorsOutlook

Q2issettobeanotherrecord-breakingquarterforDLPCapitalAdvisors.

DLPCapitalAdvisorsisraisingcapitalandgrowingtheDLPLendingFund;theDLPIncome&GrowthFund;andthenewDLPEquityFundII,LLC.Inaddition,theDLPIncome&GrowthFundNoteinvestmentwillprovideinvestorswithadditionalopportunitiesforfixedreturnsbetween6.5and10%.

DLPCapitalexpectstoachieveourtargetedreturnsinallfiveofourFundsinQ2:

• LendingFund(11+%) • FixedFund(11+%) • Income&GrowthFund(11+%) • EquityFundI(22-25%annualaverageoverthe5-7yearFund) • EquityFundII(17%annualaverageoverthe8-10yearFundw/8-9%distributedannually,paid

quarterly)

DLPCapitalexpectstoraiseatleast$15,000,000innewcapital,including$5,000,000intotheDLPEquityFundII.

DLPexpectstoacquireover500apartmentunitsandhomesinQ1aswellasoriginatemorethan$50,000,000innewLinesofCreditand90Loanstorealestateinvestors.Thisisexpectedtobethebiggestquartertodateforbothacquisitionsandlending.

Lastly,DLPCapitalwillberollinganewinvestorportalcalledDLPCrowd.comwithdrasticallyimprovedinvestorreporting;portfolioanalysis;andtheabilitytoseeallofyourDLPInvestmentsinonelogin.Thiswillbeincrediblypowerful,andwillalsoallowforanewautomatedinvestmentprocess,wereinvestorscaninvestthroughthesystematanytimeontheirown.

CommonlyAskedQuestions

WhydopeoplecometoDLPCapitalAdvisorsforloansinsteadofbanks?Manyreasons,threeofthebiggestreasonsare:First,banksarelimitedonlendingon“speculative”realestateIE.realestatenotleased..Second,regulationsmaketheprocessofborrowingthroughabankextremelyslow,itcancommonlytake12-15weekstocloseacommercialloan..Third,webringagreatdealofvaluetoborrowersthroughourextensiveexperience,knowledge;andresources.Weteachthem,guidethem,andprovideresourcesthatabanksimplycan’toffer

Youcharge12-15%interestrates.Doesthatmeantheloansyoufundarehighrisk?

Weunderwriteourborrowerssimilarlytothatofmostbanks,butwithevendeeperanalysisontheasset&theabilitytonothavetogetdistracted&worryabout“redtape”orsillyregulations.Inunderwritingourborrowers,weusebackgroundchecks,creditchecks,bankstatements,taxreturnscashflowanalysis,andwhatwebelievetobe“commonsense.”Inadditionweinspecteveryproperty;hire3rdpartyappraisers;doourowninternalevaluationonthevalue;evaluatethescopeofwork;thebudget;etc.Ouraverageborrowerhasanetworthofmorethan$1million,over$100,000inthebank,andovera650creditscore.

WhatarethetaxbenefitsofEquityFundII?

DLPEquityFundIIhassomegreattaxshelters.Forexample,ifyouinvested$250,000intheFundandreceivedan8%annualreturnof$20,000,muchofthat$20,000wouldbeshelteredfromtax.AttheendoftheFundwhenwesellofftheproperties,you’llbetaxedatlong-termcapitalgains,whichiscurrentlyroughlyhalfofwhatmarginaltaxbrackets,areformostinvestors.Plus,youwereearningreturnsforeachofthoseyearsonthefundsthatyouwouldnormallypayintaxeseachyear.

DoestheminimuminvestmentamounthavetobewithinasingleFund?

InvestmentsacrossmultipleFundsand/ormultipleaccounts(forspouses,familymembers,etc.)arecountedcollectivelytowardtheminimuminvestment.

Howdoyouverifythatyouareanaccreditedinvestor?

Fourways:1)aletterfromanadvisor(attorney;Accountant;FinancialAdvisor)statingthatyouareaccredited;2)acopyofyourtaxreturnshowingtherequiredAdjustedGrossIncome(AGI)of$200,000foranindividualor$300,000foramarriedcouple;3)Brokerage/Accountantstatementsshowingtherequiredassets;or4)filloutapersonalfinancialstatement.

DLPCapitalAdvisorsEquityInvestmentCaseStudy:

Property:VillagesatRankin,aDreamLiveProsperCommunity

Location:Greensboro,NC

Units:128Units

InvestmentDescription:VillagesatRankinis128-unitCardinalcommunityof1storyapartmenthomes.Thepropertywascapitalstarved&poorlymanagedoverthepastnumberofyears.TheoperatingpartnerpassedawayleavingaCaliforniacapitalpartnerlefttomanagethepropertyfromafar.DLPnegotiatedgreattermsonthepurchase&hasexpectationsofmaximizingtheinvestment&drasticallyimprovingcashflow&creatingsignificantequityinthepropertyviastrongleasing&effectivemanagementalongwithcapitalimprovementsincludingrenovatingasignificantnumberoftheunitsinadditiontoexteriorrepairs&cleanup.ThepropertyislocatedthecityofGreensboro,NorthCarolina.Greensboroisagrowingareathatisreinventingitselffromthetextileandfurnituremanufacturingdaysofthepast.Newcompaniesaremovingintothearea,suchasRalphLauren,HondaAircraft,TIMCO,andmanyothertransportation,logistic,aviation,andhightechcompanies.

PurchasePrice:$5,050,000

TotalCosts:$6,050,000

CapitalInvestment:$2,767,500

UnitBreakdown:

FinancialOverview:

CashonCashReturn(Year1):10.38%,nettoinvestors

TotalSevenYearProjectReturn:40.20%AnnualizedIRR

*Thesenumbersareestimatedandsimplifiedforexamplepurposes.

DLPCapitalAdvisorsLoanInvestmentCaseStudy:

LoanAmount:$900,000

Value:$1,780,000

LoantoValue:50.56%

LoantoCost:79.07%

BorrowerCreditScore:719/738

BorrowerExperienceLevel:TheBorrowerisanexperiencedrealestateinvestorandlineofcreditBorrowerthathascompletedmultiplesuccessfulflipswithDLPinthepast2years

BorrowerNetWorth:$1,620,000

InterestRate:11.99%

LengthofLoan:6months

ResultofLoan:TheBorrowerwasabletosuccessfullycompletetherenovationstothepropertyandlistitforsale.Theloanhasbeenpaidoffinfull,andthepropertyiscurrentlyonthemarketforsale.

BEFORE

AFTER

AFTER

CurrentOfferings:

DLPCapitalAdvisorsiscurrentlyacceptinginvestorsintotheDLPLendingFund,LLC,DLPIncome&GrowthFundI,LLC,andDLPEquityFundIILLCaswellasNoteHolders.

ThetargetedreturnsforequityinvestorsintheDLPLendingFund&DLPIncome&GrowthFundare11+%.

ThetargetedoverallreturnintheDLPEquityFundII,LLCis17%,with8-9%annualreturngeneratedduringoperationsfromrent;andtheremainingprofitsdistributeduponthesaleoftheproperties.

TheFIXEDreturnstonoteholdersare6.5-10%.

DLPEquityFundII,LLC

ThisisforAccreditedInvestorsonly*.

DLPEquityFundIIisdesignedtoprovideinvestorswithapassive,limitedpartnershipinthecoreofDLPCapitalAdvisors’directinvestmentactivities.TheFundfocusesoninvestingprimarilyintostabilizedandvalueaddmulti-familyproperties,primarily50-300unitapartmentcommunities.Inaddition,theFundinvestsintosingle-familyrentalsandotherincomeproducingrealestate.TheFundleveragesDLP’sinhousepropertymanagementandconstruction/maintenancedivisionstomaximizethevalueandcashflowoftheassetsundermanagement.TheFundhasa10-yearinvestingperspective,focusedongeneratingdouble-digitassetlevelcashflow,increasingassetvalueandprovidingataxsheltertoinvestors.

DLPLendingFund,LLCEquityOffering

ThisisforAccreditedInvestorsonly*.TheDLPLendingFundlendsshort-term,highyieldcapitaltorealestateinvestors,thusprovidingstrong,consistent,andpredictablereturns.Thefunddoesnotownrealestatedirectly,butinsteadlendscapitaltorealestateinvestors.ThisFundisahybridfund,havingbothEquityandDebtinvestmentoptions.Theunderwriting,funding,andloanmanagementisperformedandmanagedthroughDirectLendingPartnerLLC.DirectLendingPartnerhasathoroughunderwritingprocesstomakesureloansareonlymadetoborrowersthathaveahighprobabilityofsuccesswiththeproject/propertyandtheabilitytorefinancethepropertyifneeded.LoanservicingisperformedbyFCILoanServicing.

DLPIncome&GrowthFundI,LLC

ThisisforAccreditedInvestorsonly*.

TheDLPIncome&GrowthFundI,LLCisanOpportunityFundthatinvestsintoarangeofrealestatebackedinvestmentopportunitiesincludingrehab/privateloanstorealestateinvestors;loanstoaffiliatesofDLPCapitalAdvisors;investmentsintotheDLPFixedandLendingFunds;preferredequityinvestmentsandpartnerships;nonperformingnotes;andinvestmentsintootherrealestatebackedinvestmentfundsandopportunities.ThefocusoftheFundistoproducesuperiorreturnsbyhavingtheflexibilitytocapitalizeonmarketopportunitiesandinefficiencies,whilemitigatingriskthroughdiversificationandstrongassetandborrowerunderwriting.

DLPNoteOfferings

DLPoffersnote(debt)investmentoptionswithineachoftheDLPFundsinadditionaltoonaseparatelymanagedaccountbasis.Thesenotesoffer7-10%fixedreturnsw/alowLTV.Primarily,thefund’sassetsarefirstpositionrealestateloans.Thenoteinvestorsareinthe“firsttobepaid”position&ineffectareinthelowestriskpositionofalltheDLPinvestmentofferings.

Past performance is not a guarantee of future performance.

* Accredited Investor Definition: For an individual to be considered an accredited investor, he or she must have a net worth of at least one million 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.

DreamLiveProsperNews

DLPRealtyonTargetforRecordSettingYear!

Settingouttohave1,250salesattheconclusionof2017,DLPRealtyisontracktohitthatgoalwithalreadyexecuting600saleshalfwaythroughtheyear.

"Q3ispoisedtobeourbiggestquartereverwithafocusongeneratingtoplinerevenueandprovidingcustomerswithWOWexperiences.Wewerealsorecognizedasbeingthe#9RealEstateteaminthecountrybytheWallStreetJournal."

-JonathanCampbellSalesManager,DLPRealtyDLPCapitalAdvisorsopensSt.AugustineBeachOffice

DLPCapitalopensanewofficejustoffthebeachlocatedonSA1AinSt.Augustine,Florida.

DLPCapitalWelcomesNewInvestors!

DLPwelcomed34newinvestorsinQ1.Over$14.5MMwasinvestedfromnewandexistinginvestors.

DLPBuildersSurpassestheirMid-YearGoal!

LarryGreenberg,VPofDLPBuildersreportshisteamhassurpassedtheirmidyeargoalof$7Mby$2M.Theyalsohitarecordvolumeofunitsrenovated,breaking200unitstotal.

DLPPropertyManagementHittingContinuedHeights

OurpropertymanagementdivisioncontinuestogrowasDLPacquiresmoreapartmentcommunitiesincludinggrowthintoGreenwood,SC,Brunswick,GA,Columbus,GA,Titusville,FL,andGreensboro,SC.Inaddition,DLPPMachievedthehighesteffectiveoccupancyeveracrosstheportfolio!DLPInteractiveMediaSigns1/2Million-DollarDeal!

Becomingathoughtandstrategyleaderintheprivatecapitalraisingspace,DLPInteractivesignedadealthispastJunewithaprivateinvestmentcompany.

Withproveninboundleadgenerationcompletedintargetedmarketing,DLPwillbeactivelydrivinggeneratedleadstothisprivatecompany'supcomingseminarsandevents.

New&ImprovedDLPCapitalInvestorPortalNowLive!

Atlonglast!DLPCapitalhasfinelytunedandtestedamuchimprovedandadvancedplatformfornotonlyourexistinginvestorstologinatanytimetoviewtheirinvestmentaccountactivity,butforourprospectiveinvestorstonavigatethrough&exploreinvestmentopportunitieswithDLP.

Viewallofouravailablefunddetails,previousquarter'sreporting,auditreports,investortestimonialsandmoreatinvest.dlpcapitaladvisors.comtoday!

DirectLendingPartnerContinuesRecordGrowth

DirectLendingPartnercontinueditstrendofrecordgrowth.TheLendingFundclosed75loansinQ2comparedto61loansclosedinQ1.The75loansclosedinQ2marksanewall-timerecordfortheLendingFund!

DLPRunNews

Markyourcalendars!OurannualDLPRunwillbeonSunday,November12th,2017.AllproceedsgototheValleyYouthHouseorganization.

Visitwww.DLPRace.comtoday!

TeamMemberSpotlight

Barry DeGroot General Counsel and Partner at DLP Capital Advisors

WhendidyoustartworkingatDLP?About31/2yearsagoWhatdoyoufindmostchallengingatDLP?Themostchallengingaspectformeisthefastpacedenvironment,whichisanintegralpartofthecompany'scontinuedgrowthandsuccess.Althoughitcanbechallenging,itisequallyrewarding.WhatisyourfavoritepartaboutworkingatDLP?MyfavoritepartofworkingatDLPisthecompanyculture.Everyoneinthecompanyisextremelysupportiveofoneanotherandsharethecompany'scorevaluesandgoals.It'sanenvironmentwhereeveryoneissuccessorientedandthrivestohelponeanotherandthecompanysucceed.WhatadvicedoyouhaveforfutureDLPemployeecandidates?Ifyouaretrulysuccessoriented,sharethecompany'scorevaluesandvisionandarewillingtoinvesttimeinyourpersonalandprofessionaldevelopment,acareerwithDLPwillofferincrediblerewards.

--OnamorePersonalNote--

Whatisyourfavoritequotethatyouliveby?"Youcan'tbuildareputationonwhatyouaregoingtodo."-HenryFordWhatarethe3topitemsonyour"BucketList"?AfamilyvacationinAmsterdamandtheNetherlands|Spendaweekwithoutmycellphoneorinternet|ProduceaCDofmymusiccompositionWhathobbiesand/orsportsareyouinvolvedin?Ienjoycomposingandplayingmusic(pianoandkeyboards)inmysparetime.Whathavebeenthetop(3)highlightsofyourlife?Thebirthofmyson,Blake|Myweddingdayandmarriagetomywife,Liz|JoiningDLP(andI'mnotjustsayingthisbecausethebossmightreadit)Tellus(1)randomfactaboutyourself.I'manightowl(butworkingonchangingthat)

InvestorSpotlight

Neal & Karen Nicholas Inthetimeyouhavebeenwithus,tellushowDLPhasimpactedyou?Mr.Nicholas:"Well,certainlytheinvestmentportionwasabigconcernforusandwatchingthedistributionscomebackwewereobviouslyveryconcernedwiththekindofreturnsweweregoingtoget,andweareverypleasedwiththewaythingshavepannedout.TheabilitytodiversifywithdifferentfundsthatareavailablethroughDLP,wehavebeenveryhappywithit." Inyourexperience,howdoesDLPdifferfromotherinvestmentopportunities?

Mr.Nicholas:"ThewholeDLPFamily,Don,hasbeenveryaccommodatingandhaveexplainedeverything,anyquestionswe’vehad.Ithasbeenverythorough.So,we’vebeenverypleasedwiththewaythingshaveprogressed.Ascomparedtoourinvolvementwithpastfinancialadvisors,wewereneverpleasedwiththeperformances(ofpastadvisors)andallthehiddenfeesthatcometothesurfacewhenyougetyourstatementsatyearend,attheendofthequarter,ormonthly.WehavebeenveryhappywiththewaythingshavebeenhandledatDLP."Mrs.Nicholas:"Forme,integrity,knowledge-base,trust...areallveryimportantandIfoundallthosethreethingswithallthepeoplethatwehavedealtwithatDLPandthathasmadeatremendousdifferenceforme." Thankyouforyourtime,doyouhaveonefinalthoughtyoumightsharewithusinregardstoyourexperiencewithDLP?

Mr.Nicholas:"Iwouldsay,tothosepeoplethatarethinkingaboutit,tohaveameetingwithLarryHickernellorDonWennerorsomeoneelseinvolvedwithDLPandjustsitdownandlistentothem,andseewhattheyhavetosay.Then,makeupyourmindforyourselfifitissomethingthatwouldworkforyou.Forus,wearenearingretirementandwewerelookingforsomethingthat’sgoingtohelpsupplementourretirementandthatiswhywebecameinvolvedwithDLP.Iwoulddefinitelyrecommendittootherpeople!"

Management

DLPCapitalAdvisors,LLC701W.BroadSt.,Suite203

Bethlehem,PA18018www.dlpcapitaladvisors.com

ContactInfo

DonWenner,CEOOffice:(610)488-2375Direct:(484)542-2868

don@dlpcapitaladvisors.com

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