Dorado Financial is managed to preserve investor capital and generate a high-yield monthly income return.

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CHOOSE

a liquidity and return profile that meets your needs

INVEST

in preferred equity or debt in a residential construction debt fund

RECEIVE

a reliable high-yield income: 4-6.5% debt and 9-13% equity


Why Invest in construction loans?

  • SECURED BY REAL ESTATE
    All loans are secured by a lien on the underlying real property with conservative loan to value ratios.

 

  • DRIVEN BY LONG-TERM DEMOGRAPHICS
    The economic driver of construction loan returns are housing starts. Housing starts are driven by long-term demographics.
  • HIGH-YIELD
    Residential construction loans generate a reliable high-yield income return for investors.

 

  • LIMITED EXPOSURE
    Construction loans are short term, 6-9 months, limiting exposure to market cycles and interest rates.

Why invest with Dorado Financial?

DIVERSIFICATION

By investing in a pooled fund, investors receive diversification across builders, submarkets, and regions.

RISK MANAGEMENT

Strict draw management procedures including monthly inspections and sub-contractor lien releases.

CONSISTENT STANDARDS

DORADO CAPITAL maintains professional and consistent underwriting standards, this offers enhanced risk management over investing in individual projects.

CONSISTENT TRACK RECORD

Originating and servicing a portfolio of construction loans requires experience. Dorado Financial’s operating team has a consistent track record across market cycles.

  • 14 YEARS EXPERIENCE in residential real estate construction finance

  • $300 MILLION in construction loan origination; as much as $60 million annually in the ’04-’07 expansion

  • EXPERIENCE MANAGING THROUGH MARKET CYCLES including 2008 downturn, successfully performed on $45 million in debt obligations


How We Pick Projects

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BUILDER-LEVEL UNDERWRITING

DORADO FINANCIAL begins underwriting by assessing a homebuilder’s track record. This includes their experience managing projects on time and on budget, and their experience with the proposed product type.

PROJECT-LEVEL UNDERWRITING

DORADO FINANCIAL underwrites based on quantitative and qualitative factors including: product relevance in the market, price point, design, lot location, sale-ability, quality of materials.

Strict loan-to-value (LTV) standards are maintained with values being based on a fully built certified appraisal:
LTV maximum for spec: 65%
LTV maximum for custom: 75%

SUBMARKET-LEVEL UNDERWRITING

DORADO FINANCIAL reviews several criteria in the subject property’s sub-market including: standing inventory for sale within subject property’s price point, absorption rate, permit volume, and additional relevant data indicators.

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