Diversyfund is a new name in the world of investment companies to join Red A+ REIT platforms’ ranks. It was founded in 2016 and headquartered in San Diego. It is a real estate investing platform specialized in only one asset class: multi-family properties. Restriction to take part in this company is low: the minimum investment is just $500, and there is no need to be an accredited investor while investing in this platform.
- Has access to some commercial real estate deals
- $500 minimum investment
- No management fees
- Accepts non-accredited investors
- Highly illiquid investments
- Has limited investment choices
- Unable to choose between commercial projects
- What is Diversyfund?
- Diversyfund video explanation
- How does Diversyfund work?
- Features of Diversyfund:
- Diversyfund is best for:
- Novice real estate investors
- Risk-averse investors
- Experienced investors who are unfamiliar with real estate
- Diversyfund fees:
- Diversyfund VS competitors:
- Potential returns and cashflow
- Is Diveryfund legit?
- How does DiversyFund make money?
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What is Diversyfund?
Diversyfund is a crowdfunding platform . The company acquires multi-family properties in some major metro areas and close-by suburbs in two states: California and Texas.
Instead of buying land and developing new multi-family properties, Diversyfund changes existing multi-family properties to raise the net rental income that property produces.
Unlike Real estate investment trust (REITs) that allows you to sell and buy shares on the public market exchanges, Diversyfund is a private funding company. Both accredited and non-accredited investors can invest in Diversyfund with just a $500 starting investment.
It diversifies your portfolio outside of bonds and stock markets with alternative assets. It will also protect you from market volatility.
Moreover, Diversyfund makes the investing strategies accessible to everyone that are used by high net-worth individuals. It gives access to a money-making scheme and information available.
Diversyfund video explanation
How does Diversyfund work?
After signing up for an account in Diversyfund, you need to select how much investment you wish to do.
At their site, you can see a chart that shows their best plan that starts at $15000 or more, but you can make your investment with as little as $500 by choosing their starter investor plan or auto investor plan.
With their starter plan, you can choose any amount between $500 to $5000 for investment. You can control money transfers with the STARTER plan. With their auto plan, you hand over investing responsibility to the platform by agreeing to transfer $500 first and then auto money transfer monthly. The auto plan is a faster path to achieve investment goals.
Fulfill the required information on the form given:
Moving on, you will be asked what type of ownership do you want from the following options:
If you select individual ownership and choose the auto plan at the signup, the next step will be to decide how much you want to invest both initially and monthly. For an investment of $500, you can get a 12% initial return.
You can even increase the initial investment to a maximum of $1 million.
After signing up, Diversyfund will take you to the dashboard to monitor your investment.
Features of Diversyfund:
It has the following features:
No experience required
Diversyfund doesn’t require any real estate experience and income minimums to make investments, unlike other companies. Anyone who has $500 can participate.
Diversyfund holds a background of experts. Craig Cecilio had experience as an investor for 2 decades, and his co-founder, Alan Lewis, was a wall street investment banker and a corporate lawyer. So, together they bring expertise to the company.
It gives earning opportunities for its investors by offering 17 % annual returns for each investor.
Diversyfund is best for:
Novice real estate investors
Diversyfund can make you get started by handing over your money to experts if you have never invested in real estate. You can monitor the earnings that would help you gain confidence.
It offers you risk-free investment as it sends your money to multiple properties. That means if you get a loss from one side, other properties will help you offset the loss.
Experienced investors who are unfamiliar with real estate
Experienced investors can start in real estate investment by putting a small amount from their monthly income to cause an increase in their portfolio or generate some money.
According to the website of Diversyfund, it doesn’t have any management fee, but other fees may apply, such as developer fee, etc.
Diversyfund VS competitors:
Diversyfund is a multi-family property with a minimum investment of $500 and fee-free. In contrast, Fundrise charges up to a 2% fee with an initial $500 investment and is primarily a real estate loan type of investment. Incase of Realty Mogul, investment starts at a minimum of $1000 with a fee of 0.30%-0.50% per year. The type of investment is multi-family and commercial properties. Now you can choose which one better suits you.
Potential returns and cashflow
Unlike other A+ REITs, diversyfund is not currently any regular cash dividend. You can get a 7% preferred return, but it will be reinvested into the REIT. You might wait for five years or more to see liquidity in your investment. Annually, you get a 17% return based on the individual project.
You will not have to pay any income taxes as long as you distribute 90% of your annual income back to the shareholder.
Is Diveryfund legit?
Diversyfund is a low-cost entry into the world of real estate investing. But doing business with Diversyfund, you should have a long-term view as all the returns and distributions are reinvested back to the properties until it is sold.
How does DiversyFund make money?
Although Diversyfund doesn’t charge any annual management fee for each project, it charges a 2 to 8% developer fee to find, manage, and acquire each holding.
Once a property is sold, the investor gets 7% returns before the company receives any profit. If the property receives some profit above 7%, it is shared as 65% to the investor and 35% to the company until the investor gets 12% returns per year. The remaining profit is also distributed as 50/50 between investor and company.
If you are starting and have a limited budget, you can find Diversyfund as the best option. With no management fee and expert support, you can rely on this company for your investment game. You need to be patient while investing with this company because it doesn’t let you make money right away as all the returns are reinvested back.
This Diversyfund review has all the information you need to know before investing in Diversyfund.