Grow Your Cashflow Podcast

Are you an investor scratching your head over which deal to pick to earn more monthly passive, burdened by analysis paralysis or untimely jumps on investment opportunities?

You're not alone. Even the savviest investors can struggle with choosing the right fund for their portfolio. The key to breaking free from this cycle is understanding what a high-quality, recession-safe fund looks like.

That's precisely why I invited Bo Parfet, the Managing Principal and Head of Growth at DLP Capital, to the latest episode of the Grow Your Cashflow Podcast. We deep-dived into the world of workforce housing and how DLP Capital excels in generating monthly passive income in this recession-resistant sector.

🎯 In This Episode, You Will Learn:

The Power of Workforce Housing: Why this is an under-the-radar but potent area of investment that combines both social impact and robust ROI.
Monthly Passive Income: How DLP Capital structures its deals to provide consistent cash flow every month. This is a game-changer for anyone eyeing a worry-free retirement.
Key Due Diligence Factors: Bo outlines their rigorous screening criteria, which includes partnering with a Top 10 auditor and a strong track record, offering a layer of safety to your investment.
Exemplary Investor Relations: An inside look at DLP Capital's commitment to high-quality investor communication and comprehensive fund documentation.
Managing Risks: The protective power of diversification, especially in uncertain economic times.

🔗 Action Steps:

Deep Dive into the Episode: For a detailed understanding, listen to the full episode here: https://youtu.be/nR0XIds3Dtc
Explore Investment Opportunities: To explore the unique investment opportunities join our email list at: https://hubs.ly/Q023z8mg0

#lp #gp #shorts #investments #passiveincome #wealthbuilding #financialfreedom #personalfinancce #growyourcashflow #privateplacements

// About The Show:

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Welcome to Grow Your Cashflow Podcast where we help accredited investors learn how to earn consistent monthly passive income from private placements.

If you're uncertain about where to invest for dependable returns, have limited access to exclusive opportunities like private placements, or are looking for expert insights and guidance on generating consistent income across various asset classes, then this show is tailored just for you.

By listening to this show, you'll achieve your passive income goals faster by learning:

🚀 Proven strategies to secure monthly passive income.

💡 Expert insights from successful fund managers and investors.

🌐 How to access exclusive opportunities in private placements.

📈 Techniques to diversify across multiple asset classes for a robust portfolio.

💰 The well-guarded secrets of wealth accumulation used by the world's elite.

Try listening to our most popular episodes on your favorite podcasting platform or on youtube. We look forward to you joining our community of investors. You’ll be one step closer to growing your cashflow!

// About The Guests:

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Bo Parfet serves as the Managing Principal at DLP Capital, a St. Augustine, FL-based wealth management firm focusing on Real Estate Private Debt and Real Estate Private Equity. The firm aims to mitigate the Workforce Housing Crisis in the U.S., concentrating its rental units primarily in the Sunbelt region. With a robust track record of managing over $5 billion across 10 different funds, DLP Capital requires a minimum investment of $200,000 and has successfully taken at least one syndication/fund full circle.

Pascal Wagner is the founder of Grow Your Cashflow which was formed to help accredited investors learn how to earn consistent passive income from private placements. Previously, he was a Fund & Portfolio Manager at Techstars, making over 300 follow-on investments for the Techstars Ventures ‘17 and ‘21 Funds, he founded Walkthrough, which was acquired by PlanOmatic in 2019, he founded Online Ad Labs which was acquired by PosterBrain in 2016, and he has owned a growing portfolio of real estate properties across the United States since 2013.

// Links Related To This Episode:

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- Learn how to earn monthly passive income from private placements at: https://hubs.ly/Q023z93L0

- Get passive income opportunities delivered to your inbox every week by joining our subscriber list at: https://hubs.ly/Q023z8mg0

- Follow Pascal Wagner on your favorite social media channel: https://www.investwithpascal.com

- Watch the show on YouTube: https://youtu.be/nR0XIds3Dtc

- Subscribe to the Grow Your Cashflow Podcast on your favorite platform: https://growyourcashflow.transistor.fm/

- Reach out to Bo Parfet on Linkedin: https://www.linkedin.com/in/boparfet/

- Learn more about DLP Capital: http://www.dlpcapital.com/

// Key Time Stamps & Topics

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Timestamps:

00:00 - Introduction of the Podcast.

01:27 - About Bo Parfet and gives an overview of DLP Capital and Bo's background.

02:32 - Bo shares his personal career journey, from undergraduate to JP Morgan and finally to DLP Capital.

06:22 - Bo discusses the effort required to maintain and manage wealth based on his personal experience.

07:01 - Pascal asks Bo about his previous student housing portfolio and its current status.

08:35 - Family office background and investment diversity

08:57 - Types of assets: Private equity, venture capital, crypto, debt, bonds

11:00 - Key screening criteria: Top 10 auditor, billion-dollar AUM, strong track record

11:45 - Importance of top 10 auditor

12:15 - Preferred size of AUM and track record

12:45 - Desire for high-quality investor communication and fund documentation

13:00 - DLP's strength in these areas

13:30 - DLP as an impact company focused on solving the workforce housing crisis

14:00 - DLP's unique position in the current market

15:52 - Shift from making a living to making a life through passive income and real estate investment.

16:15 - Importance of cash flow as a low-risk indicator.

16:45 - Money management as the modern-day survival skill.

18:00 - Top 10 auditors not being a bulletproof measure for safe investment.

18:45 - Role of diversification as the greatest defense in investment.

20:00 - Contributions of investors in DLP toward societal good.

20:45 - Case of an investor using distributions to finance grandchildren's education.

21:15 - Investors using income for charitable contributions.

23:00 - Overview of the Senior Secured Lending Fund.

26:55 - The subject of real estate investment lending.

27:00 - Bo describes the unique advantage of DLP as both a lender and real estate developer.

28:15 - Bo outlines loan-to-value and loan-to-cost ratios.

28:45 - Types of projects DLP is involved in: multi-family, single-family rental communities.

29:15 - Financing the preferred return during the construction period.

30:00 - The challenge of acquiring equity in the current market.

30:45 - Market selection for real estate investment.

31:15 - Project-specific risk factors.

32:30 - Bo talks about self-directed retirement accounts as a source of investment capital.

33:15 - Exploring alternative investment options besides traditional stock market channels.

34:09 - Discusses the concept of the "Lost Decade" in the stock market between 2000-2010.

34:43 -Talks about the asset allocation of knowledgeable investors, 75% private and 25% public markets.

36:41 - The importance of discipline in financial decisions.

39:26 - Bo about his own experience with failed investments and the need for caution.

40:14 - Suggests that investors come up with a checklist or 'buy box' of essential criteria for their investments.

41:21 - Emphasizes the importance of managerial operating systems in scaling businesses

41:48 - Explains how DLP outperforms most companies due to their effective managerial operating system

42:18 - Talks about the "why" behind sharing their managerial strategies

43:00 - Discusses alternative managerial operating systems

43:17 - Highlights the necessity of using a managerial system for scaling and running a business

43:37 - Advocates for having multiple owners in a company

43:55 - Explains why it’s important for one person to have ultimate decision-making authority

44:38 - Discusses the concept of evaluating risks in the investment landscape

45:18 - Advises against investing blindly based on a friend's recommendation

47:14 - Presents a spectrum of due diligence, from zero to comprehensive

47:45 - Warns against the pitfalls of uninformed investing

48:12 - Emphasizes the permanent consequences of poor investment choices

54:30 - Discusses objectives of investments and how they align with syndications or funds.

54:42 - Bo Parfet's perspective on syndications vs. funds.

55:15 - Personal investment strategy in private equity.

56:00 - Discusses risk involved in various investment approaches.

57:15- Explains why he personally prefers funds to mitigate risk.

58:00 - Bo's top three tips for managing wealth.

01:00:00 - Outro & Invitation to join the investment club at Grow Your Cashflow

Creators & Guests

Host

Pascal Wagner

I help accredited entrepreneurs & executives in the US replace their primary income through private investments.

Guest

Bo Parfet

What is Grow Your Cashflow Podcast?

Welcome to Grow Your Cashflow Podcast where we help accredited investors learn how to earn consistent monthly passive income from private placements.

By listening to this show, you'll achieve your passive income goals faster by learning:
🚀 Proven strategies to secure monthly passive income.
💡 Expert insights from successful fund managers and investors.
🌐 How to access exclusive opportunities in private placements.
📈 Techniques to diversify across multiple asset classes for a robust portfolio.
💰 The well-guarded secrets of wealth accumulation used by the world's elite.

Try listening to our most popular episodes on your favorite podcasting platform or on YouTube. We look forward to you joining our community of investors. You’ll be one step closer to growing your cashflow!

[00:00:00] Pascal Wagner: Look, I think most of the people looking to figure out how to diversify some of their investment portfolio, they're looking at deals that they probably already invested in one or two. How can DLP capital help someone like
[00:00:11] Bo Parfet: that? So a DLP, we have basically four funds, [00:00:15] two debt funds, and two equity funds.
[00:00:18] Bo Parfet: Yeah, but equity is so hard to get right now. Everybody in the market we're in, there were at a high level, there are three things when you think about risk. Number one is this is the sponsor. Number two is the market. Number [00:00:30] three is, is, is the project itself. I would say learn as if you were to live forever and live as if you were to die tomorrow.
[00:00:38] Bo Parfet: Modern day survival skill is learning how to manage your wealth.[00:00:45]
[00:00:51] Pascal Wagner: Hey there, and welcome to another episode. My name is Pascal Wagner, the host of the grow your cashflow podcast. If you're new here, we help accredited [00:01:00] investors grow and diversify their monthly cash flow through low risk private placements. To be clear, we are not financial advisors providing you advice on your specific situation, but our email list, our social content, and even [00:01:15] this podcast are all designed to help you learn how to find and vet passive income opportunities so that someday, When you're looking to grow your cashflow that you'll consider, uh, any one of our funds and working with us.
[00:01:27] Pascal Wagner: So, uh, even at the very least, [00:01:30] we wanted to accelerate your ability to gain financial freedom. And today I have on the show, Beau Parfait from DLP capital. So. Let's dive in. Okay. So welcome to the show. Bo, today we have a very special guest who will be helping [00:01:45] our listeners on their path to achieving financial freedom through passive income investments.
[00:01:50] Pascal Wagner: Bo Parfait is the managing principal and head of growth at DLP capital. And he is here. To share his expertise and insights and just kind of [00:02:00] share how DLP can help you achieve your passive income goals. So to give a little intro to Bo, Bo is the managing principal at DLP Capital, which is known for its impact investing.
[00:02:14] Pascal Wagner: And with a [00:02:15] background in economics and a career that includes investment banking at JP Morgan, I think he's an expert here. So For Bo, uh, for those that don't know you, can you share a little bit more about yourself, your background, and how you ended up [00:02:30] at DLP Capital?
[00:02:32] Bo Parfet: Yeah, you bet. Pascal, thank you for having me.
[00:02:34] Bo Parfet: Um, thank you to you and your great community. It's an honor and privilege to be here, so thank you. So, happy to provide a little nickel tour of my background. I'm, you know, from the Midwest. [00:02:45] And went to came out to Colorado for undergrad. I worked at a restaurant 50 hours a week, put myself through college.
[00:02:53] Bo Parfet: I absolutely loved it. Um, and I had a friend at the time, and, um, he kind of taught me how to flip [00:03:00] some lots. So I started flipping lots in college and I kind of thought I was. You know, big stuff. And boy, was I about to be humbled. So then I tried to go to J. P. R. Sorry. Then I tried to go to New York City and learn investment banking and they said to me, [00:03:15] um, solace at Barney.
[00:03:16] Bo Parfet: They were like, the guy said to me, he goes, he goes, you're not getting a job here. Bow. I go, well, why not? He goes because you didn't go to a feeder school. I'm like, what's a feeder school? I don't even know what that was. This guy happened to go to Penn. He's like, well, it's the Ivy [00:03:30] League and he goes and then it's some good state schools like Michigan or Virginia.
[00:03:35] Bo Parfet: So, I'm, you know, I was like, hey, Michigan, I've always wanted to go there. And so anyway, that weekend, I was so fired up that weekend. I went and applied to get a master's and applied economics. I [00:03:45] started the process that weekend. And, uh, the funny story just to close the loop on this is that a year and a half later, right?
[00:03:52] Bo Parfet: So now I'm at, I'm at university of Michigan. I'm in the, the master's program. I go back to New York city. I interviewed with Solomon Smith [00:04:00] Barney, the same guy. It's the same. Yeah. Right. And, um, I was, I was knew that I was going to see him and I'm like, gosh, it's been a year and a half. And, um, and he was right by the way, I did not get the job, but I was, you know, hoping to, [00:04:15] um, and I started to get a lot of offers.
[00:04:17] Bo Parfet: So anyway, the guy said to me, um, he started, he looked at my resume and he's like, he pulls it up. Oh my God. He goes, wow, you went to Colorado for Colorado state for undergrad. I love Colorado. I used [00:04:30] to ski there. And oh my gosh, you worked at a restaurant 50 hours a week. That's so cool. Great. Worth that ethic.
[00:04:35] Bo Parfet: Oh, university of Michigan. Oh, great school, great sports. And I realized he doesn't know who I am, Pascal. You didn't know who I am. And then, so I, I kind of reminded [00:04:45] him and he goes, oh yeah. And I said, listen, I, I've been waiting for this for about a year and a half. I want to thank you. Because you changed the trajectory of my life.
[00:04:54] Bo Parfet: It was your advice. I had no idea kind of how that part of the world worked and thank you. And he jumped up [00:05:00] behind his desk, walked around, gave me a big hug. And he goes, you know how many times I've told that to people? No one's ever listened. So, um, that was kind of one of the many defining moments. I ended up doing a merchant acquisitions at JP Morgan.
[00:05:12] Bo Parfet: I was a fellow at FASB. And then [00:05:15] realized, Hey, I, maybe there's something else besides, you know, wall street banking, you know, working a hundred hours a week. I gained 40, 50 pounds. Okay. It wasn't, it wasn't a pillar of health. Then I got my MBA at Northwestern, uh, in Chicago. And then [00:05:30] after that, I, I scratched an itch.
[00:05:32] Bo Parfet: I always wanted to be a professional mountain climber. So I got to do that for about nine months. And that was tons of fun, but realized that I still want to climb, but not full time. I still climbed it today. And then I started my own business, everybody, and I, [00:05:45] I started a student housing business. Um, we grew that business pretty successfully and.
[00:05:51] Bo Parfet: You know, we employed, um, at 1 point about 200 people, um, you know, we had roughly. You know, we had more than 3000 [00:06:00] units, um, you know, in four or five states a long time ago, but, um, it was an impactful part of my life cause we, I got to start a business, we had a nice exit and then I, um, had a little dry powder and the, [00:06:15] and I, what I tell people is the good news is I had a little dry powder and I made a lot of investments and then the bad news is I made a lot of investments.
[00:06:22] Bo Parfet: Um, and for those that are listening, I think there's a great quote that someone told me they said, Beau, it takes a tremendous amount of [00:06:30] effort to make a fortune or an estate, but it takes 10 times more effort and I sure learned that the hard way. So I've got a lot of good lessons learned to share. I got a lot of good lessons to share lessons learned.
[00:06:44] Bo Parfet: And then, [00:06:45] um, I heard Don Wenner speak, who's the founder and CEO of DLP about 5 or 6 years ago at this kind of family office conference. I said, that guy has the eye of the tiger. I really like what they're doing. And I ended up joining DLP about three and a half years ago or so. [00:07:00] So,
[00:07:01] Pascal Wagner: so what happened then to your, you know, student housing portfolio?
[00:07:05] Pascal Wagner: Did, is that just like something you still kind of manage on the side? Did you merge that in? Did like, what, what happened
[00:07:10] Bo Parfet: there? So we, we sold, we sold, we had a successful exit. Um, [00:07:15] and actually Dan Gilbert, who owns the Cleveland Cavaliers, uh, he bought a big chunk of our portfolio, uh, which was pretty darn cool.
[00:07:23] Bo Parfet: Uh, we kind of thought Dan would be on the last call, um, but he never was. And, and I, and I asked, I said, is Dan going to be [00:07:30] on this call? And I think it was like four levels below Dan, uh, who worked for Dan's family office and he said, Beau, let me be very clear. He goes, Dan, he doesn't even know he's buying this.
[00:07:41] Bo Parfet: I'm like, it's like almost 3000 units. What do you mean? He doesn't know. [00:07:45] So, um, anyway, kind of a, kind of a fun story there. Very humbling. So end up selling that and then try to do kind of my own investments and, uh, did pretty well in real estate. It pretty well in private equity and stocks. And then when I got outside of my [00:08:00] comfort zone, um, you know, it was really, some went well, some went horribly wrong.
[00:08:04] Bo Parfet: And then I, and I did that for a while. And then I found DLP and. And I'm very happy that I've, I found DLP and Donna winner.
[00:08:13] Pascal Wagner: I love that. So, so [00:08:15] give us kind of just a little bit of, uh, an additional background of maybe how much you've invested in other LP deals. So, and, and, and the range of deals, like it sounds like PE sounds like a bunch of real estate, student housing, what are, what are other asset classes?
[00:08:29] Pascal Wagner: And, [00:08:30] you know, is it like you've done 10 LP investments? You've done 30 LP investments.
[00:08:35] Bo Parfet: Um, well, I also, I also worked for another fan, kind of another family office. Um, you know, it's hard to break down the entire background in a, in a, in a short, [00:08:45] totally. Yeah. So between working for a couple other family offices, um, and doing my investments, I mean, it's hundreds and hundreds of, of investments and hundreds and hundreds of K ones and 10 99.
[00:08:57] Bo Parfet: Yeah. So private equity, real [00:09:00] estate, private equity, kind of operating business, private equity. Um, venture capital largely unsuccessfully some crypto stocks, uh, private debt, uh, distressed consumer debt, um, [00:09:15] bonds, you know, you know, munis muni bonds. Uh, corporate bonds. Yeah. And
[00:09:21] Pascal Wagner: so, so what I want the audience to take away from this is like, you know, Bo here.
[00:09:25] Pascal Wagner: I know Bo personally through this man's mastermind group called to go abundance that we've both [00:09:30] been a part of. That's how we kind of got introduced to each other. And, uh, why I kind of feel more comfortable asking these kind of questions to Bo, but. Uh, you know, what I want you to take away here is that he's also in the field investing on his own.
[00:09:43] Pascal Wagner: You know, he, we're going to [00:09:45] talk today about DLP and how DLP can, um, you know, help towards that passive income journey and generating that monthly income towards financial freedom. But he's been on the front lines. He's done these types of deals. go sideways and. And, [00:10:00] uh, he, he he'll bring that perspective here.
[00:10:02] Pascal Wagner: Yeah. Well said. So, so look like great background, you know, and now we know who we're talking to, let's dive into the next section here when, when we're talking about just passive income in general. So [00:10:15] when I look at, at DLP, I think of. Uh, it d l P capital is known for its ability to provide consistent monthly passive income.
[00:10:24] Pascal Wagner: I'm an investor. I have over $700,000 invested, uh, with D L P Capital. I've been been in the [00:10:30] fund for at least five months now. Uh, I'm launching a, a Fear Fund into to D L P. I'm a huge, I'm just a huge advocate, which is what I wanted to have you on today. Give us thank you. You know, an overview of why, uh, investors maybe choose [00:10:45] D L P Capital.
[00:10:46] Pascal Wagner: Uh, As one of the funds they invest in to generate monthly.
[00:10:51] Bo Parfet: Sure. So let, I'm going to unpack that in a couple of ways. So I, I think first and foremost, you know, if I'm in the audience, I'm in your, you know, if I'm in your [00:11:00] shoes, you know, what are some of the key things that family offices or institutions or very knowledgeable investors are doing to decrease risk?
[00:11:10] Bo Parfet: Okay. So just some showstoppers for [00:11:15] millions of people that are in that category. If you don't have a top 10 auditor, right, then just in my mind, and I'm not, you know, institutions, family offices, you know, high net worth individuals, like, just delete the email. It's okay. You know, we get so [00:11:30] many deals a day.
[00:11:30] Bo Parfet: The goal is to delete the email as fast as you can. So, we're looking for some things to do quick screens on, right? So, a top 10 auditor is huge. If they don't have one, delete. And, and if I, if I go back in my career and every deal [00:11:45] that went wrong. You know, if I would have just instead of taking, you know, if they're a smaller operator, oh, but they're hardworking and they, right?
[00:11:54] Bo Parfet: If I didn't, if I just stuck to that gun, I would have, I would have had a lot of investments, [00:12:00] um, not go south because I wouldn't have invested in them. I've never had an investment go south that had a top 10 auditor. Knock on wood, Pascal. Yeah. So a top 10 auditors key, you know, I like to have at least a billion dollars.
[00:12:12] Bo Parfet: Many people do have at least a billion dollars of [00:12:15] AUM, right? Cause they, they've grown, they've gone through, you know, they're not learning on your dime. Um, I like a three to five year track record, right? I think, I don't know what the stat is, but 90 something percent of all businesses don't make it past the three or five year [00:12:30] mark, you know, I want a top tier, uh, law firm to do their fund docs.
[00:12:35] Bo Parfet: Right, not not kind of Uncle Joe. I want a great data room. I want a good investor portal. I want a great communication cadence. You know, I want I want [00:12:45] thought leadership coming out of the managers that I allocate with, you know, I want I want pretty good returns. I don't want. I don't want, you know, I don't want really volatile returns because in my mind, they're taking on too much risk.
[00:12:56] Bo Parfet: So, so those are, those are kind of the broad stroke characteristics of, [00:13:00] you know, DLP checking, checking the boxes. Um, and to be clear, like, I'm a big fan of diversification and then, and, and a lot of fund managers do meet those and a lot don't, but I, but DLP kind of checks those boxes. For [00:13:15] many, many people, uh, we have about 2, 400 families that invest with us.
[00:13:20] Bo Parfet: Um, but then the other key piece is, I think you want to double click on this, is we're an impact company. And what an impact company means, everybody, is [00:13:30] you can solve a problem in the world and you can make a financial return at the same time. That's pretty darn cool. That, I mean, that's having your, your, your, your cake and eating it too, right?
[00:13:40] Bo Parfet: I mean, that's pretty darn cool. So at DLP, we are, it's our mission while we jump [00:13:45] out of bed every morning is we're trying to solve the market rate, workforce, housing crisis in America, and that's, that's pretty cool. And the beauty of it is there's a shortage of, of these, of these units [00:14:00] in America, about 7 to 10 million are the, are kind of the, the range of estimates, but it's millions and millions.
[00:14:07] Bo Parfet: Of these units need to be to be built or converted to workforce. So the moment we deliver these products, you know, [00:14:15] to the marketplace, boom. I mean, they just lease very quickly. So it's a, it's a fun spot to be in. We are in a bull market. I know the market's a little bit in a turmoil now. So with humble confidence, um, we're in a bull market and [00:14:30] our deal flow has never been higher.
[00:14:31] Bo Parfet: And, um, it's really exciting to be a part of it.
[00:14:35] Pascal Wagner: Yeah, I mean, I think also just 1 of the things strategically that I think about with with investing in this space. Not only you mentioned impact, but, uh, [00:14:45] you know, when when you're going through economic turmoil or you're preparing for a recession or a down market, you know, I think 1 of the last things that you want to be doing is investing in things that are.
[00:14:58] Pascal Wagner: Luxury class [00:15:00] a top of the line things, right? Like if in a recession or depression or a down market, people are not, you know, things aren't blowing up and people want to, you know, have the shiniest car and no, they're all [00:15:15] downsizing. They're like, how do I pay less than rent? Oh, I need to move. I need to and, and yeah.
[00:15:20] Pascal Wagner: Then things compress down to these smaller asset classes, uh, or, or not even smaller, just lower in the rump where it's like, [00:15:30] okay, can the people, the, the, um, units that are most affordable become more in demand. And to me, that is one of the most. Exciting things as an investor, trying to [00:15:45] lower my risk and protect for the downside is exactly investing in, in asset classes like this one.
[00:15:52] Bo Parfet: Well said, and yeah, you know, I'll, I'll, I'll never forget this. But, um, when I joined DLP, you know, [00:16:00] I went from making a living to making a life and it's just, it's so fun for me to tell my kids. Hey, we're going to, we're going to, our goal is, and you too, because we're doing it together, you're an investor.
[00:16:11] Bo Parfet: Our goal is to have a million people have a safe place to [00:16:15] live. That's affordable. That's, that's pretty darn cool. So, so I love that. And for those that are, that are very, shouldn't passive investing. I love the cashflow piece, right? Because if it's cash flowing, it's already working, right? They have customers, whatever they're [00:16:30] making is working.
[00:16:31] Bo Parfet: So the risk goes way down. And, you know, the modern day, the survivor skill of the modern time, of modern time is learning how to manage your money. Period. That's the modern day survivor skill. It's not back in the day where you had to learn how to [00:16:45] fight off a saber toothed tiger. Learning how to manage your money is the modern day survivor skill.
[00:16:52] Bo Parfet: You know, one of the,
[00:16:54] Pascal Wagner: I've heard this objection before, and I'd love to kind of just pass it on to you, which is [00:17:00] Uh, so, you know, I'm all on board for this, uh, top 10 auditor idea. You know, I think you, you do take on a lot more risk, uh, and, uh, if they're not audited and, uh, you know, I think a lot of these deals are coming to [00:17:15] light where, you know, These, uh, what I call them like indie syndicators or new ones, and there's nothing wrong with it.
[00:17:22] Pascal Wagner: Uh, but there are a lot more deals that go sideways with that. The, the argument I've heard here is like, [00:17:30] okay, well, Enron was, uh, you know, financially audited on the public markets and they, and there was still, you know, um, let's say fishy stuff going on. And so how would you handle that [00:17:45] objection? It's like.
[00:17:47] Bo Parfet: So very good point. Um, you know, and Ron was, you know, there was fraud behind there and things went down and there's other public companies have gone down and, [00:18:00] uh, you know, for similar similar types of reasons. So, I don't thank you for saying that. I don't want to make it sound like a top 10 auditor means that it's bulletproof.
[00:18:09] Bo Parfet: Um, things can still go wrong. It's just the risk of something going wrong, um, goes down. [00:18:15] Right? Um, and I have, you and I have the same, we still have friends who like the smaller, um, you know, you know, house flipper apartment flipper and, you know, they're small and they do a couple of deals a year. You know, they don't even know how to do an audit.
[00:18:29] Bo Parfet: So they [00:18:30] don't do 1 and that's okay, but you trust them and they're pretty good communicators. Yeah, there's a case for that. I mean, if. The biggest, um, you know, the greatest defense, I think, is just diversification, right? So if you just take your, you know, be [00:18:45] very, very mindful of that, but you're right. Um, I would, I would say this, though, I would say all things being equal if, if investment A had a top 10 auditor and investment B didn't.
[00:18:58] Bo Parfet: You know, I'd choose that, right? [00:19:00] But it doesn't mean it's bulletproof, so that's a good point.
[00:19:03] Pascal Wagner: Totally. So, uh, you know, I'm asking you these questions off the cuff here, but do you have any kind of success stories or case studies of families or individuals who've achieved [00:19:15] financial freedom through investing or maybe partially investing through anyone or multiple of your funds?
[00:19:22] Bo Parfet: Absolutely. There's a lot of them. And we, we tend to attract people, [00:19:30] um, that are, that are wanting to give back to their community or their world. Right? And you're a great example of one. We're doing this podcast, right? You don't have to pour value back into your community, right? You don't have to do it.
[00:19:42] Bo Parfet: You could just receive your monthly [00:19:45] distributions and, and, you know, do whatever you do. So many people that invest with us, um, you know, have donations. You know, have figured this out. And what we say a lot of times is the 2 most important moments of your life or [00:20:00] the moment you're born and the moment, you know, why, and a lot of people that invest with us have figured out their why and those that haven't are trying to figure out along the way.
[00:20:09] Bo Parfet: And that's okay. We can, and we can help them with that with our, you know, some of the education that we do, the personal compass [00:20:15] and the family company. So there are, we have, you know, 1 investor that takes the distributions and they have a nonprofit in Africa. Yeah. And they're saving lives every day.
[00:20:27] Bo Parfet: That's pretty darn cool. [00:20:30] Um, we have another, another investor that they're it's grandma and grandpa. And they, you know, their kids have kind of struggled a little bit with life a little bit, but they have grandkids. So they use the distributions to pay for their grandkids [00:20:45] college. Okay. I mean, that's what a gift.
[00:20:48] Bo Parfet: I mean, no one can ever take your education from you. One thing you can't take, you can't tax it away. You know, you can't take it away. So, um, you know, there's a lot of people that take half of their [00:21:00] income or 25 percent of their income that they get from DLP and others, and they give it to their charity or their church.
[00:21:06] Bo Parfet: Um, so a lot of people are pouring, pouring value back to their community or they go start another business. Right. And we kind of help them start their [00:21:15] business and float and kind of float their, uh, their P and L along the way. So there's just so many, um, great success stories. So thank you for asking.
[00:21:23] Bo Parfet: Yeah, different,
[00:21:24] Pascal Wagner: different ways you can use it, whether, yeah, just like you said, I'm using it to, to kind of like cover all my, [00:21:30] my basic expenses, have this, uh, become 100 percent or as well, we call it and go abundance where your expenses are covered by, by passive income. That this is one of the passive income sources that I use.
[00:21:41] Pascal Wagner: Kind of help reach that, that 100 percent [00:21:45] freedom goal. Uh, so look, I think most of the people who are listening here are looking to figure out how to diversify some of their investment portfolio. They're looking at deals that they probably already invested in one or two. Uh, and [00:22:00] you know, how does, how can DLP capital help someone like that?
[00:22:04] Pascal Wagner: You know, just. grow their cash flow, increase that consistent monthly passive income. What are the different types of vehicles you guys offer that, that helps someone towards
[00:22:13] Bo Parfet: that goal? [00:22:15] So at DLP, we have basically four funds, two debt funds and two equity funds. And that's important because when you look at your portfolio, you know, we, we actually, you know, we should be in, I [00:22:30] would argue that we should be in someone's fixed income or debt allocation.
[00:22:34] Bo Parfet: But we should also be in your private kind of your private equity allocation. That would be in the real estate bucket, private equity real estate. So we kind of hit 2 buckets if you will. [00:22:45] So, you know, there's our, I'll just highlight 2 of them, 1 of each for time sake. So our senior secured lending fund has a 9, 9 ish year track record, a billion dollar [00:23:00] fund, um, has always pay as has returned 10 percent plus net.
[00:23:06] Bo Parfet: Uh, every year, and, um, it's. It's a great, uh, it's, oh, it has an 8 percent preferred [00:23:15] return. Um, one cool thing about DLP is our management fee is subordinate to the PREF, which is very unusual. I don't think I've ever seen another fund do that. So the investor, walk through what that means. Yeah, sure. So the investor gets their 8%.
[00:23:29] Bo Parfet: So just to [00:23:30] take simple math, say someone invested a million bucks. Okay. You're going to get your 8%. So 80, 000 bucks first, that'll be paid monthly. And then DLP takes the 2 percent management fee. Okay. Normally it's the reverse [00:23:45] for those of you listening. This is very unusual by the way. So investor gets their 8 percent first, then DLP takes their management fee.
[00:23:52] Bo Parfet: And then you split 80, 20, 80 percent of the profits go to the investor. 20 percent of profits go to DLP, which [00:24:00] is very favorable by the way. Um, another thing to be mindful of that I don't do is, is some people out there don't do an 80, 20 split. They get, they're like, Oh, let's split 50, 50. And that's just more of a focused on a retail, um, you [00:24:15] know, kind of customer or client, nothing wrong with that.
[00:24:17] Bo Parfet: But, but there's just so many deals out there and managers that we can, you can actually get 80 percent of the profits as the investor. So more of it comes to you, which is something to take note of. So that's kind of our debt fund. We're [00:24:30] making senior secured loans. Uh, to real estate operators that have the same mission we do to a DLP.
[00:24:36] Bo Parfet: We can be the operator ourselves, or we can back another real estate operator again that has the same mission we do. And when you're trying [00:24:45] to solve this workforce housing crisis, you have to work together. So we put purpose ahead of pride. So that's why we work with many other. And then on the equity side, we have a, um, our deal, [00:25:00] or we have a building communities fund.
[00:25:02] Bo Parfet: Uh, which we're building about 10, 000 units right now. This fund actually just won a huge award in New York city. I actually got to go to the red. Yeah. You saw that it was on the red carpet and, Hey, [00:25:15] so what's cool. Um, so for those in the audience, we do a ground up deal. Um, usually you're, usually you're hoping for kind of a nice return because, you know, there's pretty good margins we build generally, but the problem is it takes them a while to build the [00:25:30] 300 apartment units, for example, so for two or three years, you don't get any cashflow.
[00:25:35] Bo Parfet: So, what DLP did is and why they won the award is they just remodeled it and they had the sponsor put up more equity [00:25:45] and actually budget for current income. So, you're getting an 8 percent preferred return in this building communities fund. That's in the process of building 10, 000 workforce housing, and you can get paid along the way why they're building.
[00:25:59] Bo Parfet: [00:26:00] Um, so it was really and that's why we won the award. Um, and I think also, because it's solving the workforce housing crisis. So. Those are, those are two funds that, um. I think are worth taking a look at. How about that? So, so
[00:26:12] Pascal Wagner: go, let's let's dive into that last [00:26:15] thing that you just mentioned to clear it up a little bit.
[00:26:17] Pascal Wagner: So, so meaning when you say the sponsor, so the sponsor is DLP capital in this case, and DLP capital is putting up, they have an additional million dollars or, you [00:26:30] know, I guess it's proportional to how big the fund is billion dollar funded. A lot more than that, but they you are putting capital from your own balance sheet and paying investors and 8 percent press on, uh, [00:26:45] in that fund so that investors can start getting some of those returns to maybe even out a lot of the volatility and maybe, uh, it's able to do that.
[00:26:55] Pascal Wagner: Yeah, walk
[00:26:55] Bo Parfet: through that a little bit more. So, and you're, you're, you're close, [00:27:00] you're close to, so, and it's important for people to know, because one of the, one of the big differentiators for DLP, um, like, if we, if we compete against another lender, for example, right? So we're going to give someone a construction.
[00:27:14] Bo Parfet: Well, we [00:27:15] build ourselves. Most lenders don't aren't real estate developers also, so they don't quite have the expertise that we have. Like, we can actually look at a budget and go, you know, you're low here. You're high here because we're doing it every day, right? And [00:27:30] then the, the, the borrowers lowers the risk.
[00:27:33] Bo Parfet: Yes. 100%. Um, so, and then. You know, another risk if you're a lender is, oh, my gosh, what happens if they're 80 percent through the project and the [00:27:45] borrower can't, you know, they get in trouble or something. They can't finish it. Well, if you think about it, you know, if it's 80 percent finished, that's the least risky that loan has ever been in the history of the loan.
[00:27:55] Bo Parfet: It's not just a piece of dirt. It's 80 percent done. It's almost done. [00:28:00] So our team can go in and finish it pretty quickly. So that's another scary thing when you're a bank or a pri

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