Why Invest with DOIF
Investing in a distressed debt fund (NPL) is a great opportunity for many passive investors who are seeking above-average returns with reduced risk. And, while being hands-off as an investor, receiving an above-average rate of return is great, isn't it? We know you have a lot of questions about the security of your investment. The business of dispositioning NPLs can be complex and investing in any note fund requires that you both believe in and understand several key components of the fund.
Let’s take a look at each of these key components as they relate to DOIF.
Fund Management Team
The Principals at DOIF have over a decade of combined NPL purchasing and disposition experience. In total, our management team brings a combined 20+ years of experience in note origination, disposition, process engineering and analytics development. Leveraging this experience has allowed our principals to pay significantly above market preferred returns for over a decade.
Asset Backed Investment
Our entire fund is secured by real estate collateral protecting our investors capital. Paired with our funds average Purchase-to-Value of 68% means our fund’s collateral values would have to drop by over 20% to reduce our returns to break even! Finally, unlike many funds that are simply ordering a BPO to determine collateral values; DOIF utilizes a proprietary collateral valuation tool that provides for significantly increased valuation accuracy. We then compare our internal valuations to values provided using industry-standard techniques to arrive at a significantly more informed final valuation of each collateral.
Enterprise Level Technology
Most investors would be shocked to find out how low of a bar is set for technology in the overall note industry and especially in the distressed debt space. If you look at the origination space, you can find lots of industry names using ever-advancing technology to benefit their bottom line. Unfortunately, our experience is that many post-origination funds are significantly behind in this area using outdated processing resources such as Microsoft Excel to manage their portfolios.
At DOIF technology is one of the keys to our success. We started by working with one of the industry’s top note servicing software platforms. We then worked hand in hand with their developers to create a solution specifically built to service non-performing loans. Next, we built an advanced CRM and last but certainly not least is our proprietary enterprise-level Business Process Management system ("The ONE")!
Business Process Management
Why don’t you hear more funds talking about this?! They don’t have it! Yet it is the keystone to providing consistent outcomes for our investors. Every business process is mapped utilizing advanced Business Process Modeling and Notation (BPMN) protocols using international BPMN standards. Once a process is modeled and every outcome has been thought through we add automation to reduce human error. Finally, all processes are executed by our team in a proprietary software platform we call "The ONE". This means every task we perform is mapped, regulated, input, and reviewed to provide consistent outcomes.
Participation in our note fund requires absolutely zero work from our investors. Most of our investors have accumulated significant wealth and have no interest in managing another investment. Unfortunately, you typically have to choose between the amount of work you want to put in and the return you receive on your investments. With DO Income Fund you can have your cake and eat it too!
Return on Investment
Due to our fund structure, we are unable to openly advertise our exact preferred returns here. However, we can tell you that our investors enjoy a preferred return that is typically 50-100% higher than many other funds in our industry. In fact, there are very few funds that provide the preferred return offered by DO Income Fund.