Dorado Financial is managed to preserve investor capital and generate a high-yield monthly income return.
a liquidity and return profile that meets your needs
in preferred equity or debt in a residential construction debt fund
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.
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?
By investing in a pooled fund, investors receive diversification across builders, submarkets, and regions.
Strict draw management procedures including monthly inspections and sub-contractor lien releases.
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
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.
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%
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.