5 Impact Strategies for Private Real Estate Investors
As private real estate investors, you’re constantly seeking ways to generate solid returns while making a measurable difference in communities. Impact investing in housing isn’t just a trend—it’s a strategic approach that aligns financial goals with social good. By following proven strategies and partnering with a leader like DLP Capital, you can achieve attractive risk-adjusted returns while addressing America’s affordable housing crisis.
1. Focus on Affordable Housing Opportunities
Investing in affordable rental housing allows you to capture stable cash flow from working families who need safe, attainable homes. DLP Capital has financed and developed over 40,000 residences, demonstrating how scale and specialization can drive consistent occupancy and rent growth even in fluctuating markets.
- High-demand asset class with lower competition from institutional capital.
- Long-term leases and government subsidy programs enhance stability.
- Positive social impact: providing housing for essential workers and families.
2. Align Impact with Market-Rate Returns
An effective impact strategy doesn’t mean sacrificing profitability. DLP Capital’s sponsored funds target both long-term appreciation and current income through carefully structured debt and equity investments. By blending private credit and equity, you can tailor your risk profile without giving up upside potential.
- Private credit funds offer predictable cash distributions.
- Equity vehicles capture value appreciation as communities stabilize.
- Diversification across geographic regions and property types.
3. Partner with Experienced Sponsors
Experience matters in impact real estate. DLP Capital, led by Founder & CEO Don Wenner, has completed more than 20,000 transactions totaling over $6 billion since 2006. Their vertically integrated model—from acquisition and development to property management—ensures alignment of interests and operational excellence.
- Proven track record through multiple market cycles.
- Dedicated on-the-ground teams for construction oversight and leasing.
- Strong relationships with municipalities and affordable housing agencies.
4. Leverage Tax-Advantaged Structures
Impact investments in housing often come with valuable tax benefits. DLP Capital’s funds are designed for accredited investors to maximize tax-advantaged wealth accumulation through strategies like cost segregation, bonus depreciation, and tax-credit partnerships. Properly structured, these advantages can significantly enhance after-tax returns.
- Depreciation schedules accelerate expense recognition.
- Opportunity to invest alongside Low-Income Housing Tax Credit (LIHTC) programs.
- Potential deferral of capital gains via 1031 exchanges.
5. Monitor ESG Metrics and Community Outcomes
Impact isn’t measured solely by dollars. Tracking environmental, social, and governance (ESG) metrics ensures your capital drives real change. DLP Capital reports on key performance indicators such as resident satisfaction, energy efficiency improvements, and community engagement initiatives. Transparent reporting keeps you informed and demonstrates accountability.
- Resident retention rates and affordability metrics.
- Energy usage reductions through green building practices.
- Local job creation and partnerships with service providers.
Putting It All Together
By focusing on affordable housing, structuring your investments for both impact and returns, partnering with an experienced sponsor, optimizing tax advantages, and measuring outcomes, you can build a diversified, resilient portfolio. With over $5.25 billion in assets under management and 3,000+ current investors, DLP Capital is uniquely positioned to help private real estate investors succeed in this specialized market.
Get Started with DLP Capital Today and discover how impact strategies can elevate your portfolio while transforming lives through thriving communities.