A Detailed DiversyFund Review: Become a Real Estate Investor from as Low as $ 500
Diversyfund is a crowdfunding platform, public and non-listed REIT investment in the real estate. It gives the investors non-traded REIT (Real Estate Investment Trust). The platform is open to both non-accredited and accredited investors at lower investment rates.
Diversyfund focuses on multi-family investment trust in real estate with more than 100 units across the US. The goal is to increase cash flow and the resale value by targeting units that can generate about 10% to 20% internal rate of return (IRRs) after a five-year period.
The Diversyfund has the markets lowest direct investor fee and it does not have brokers or management. It allows you access to multi-million assets in real estate.
So, if you are interested in the real estate investment, let’s find out what it has to offer in this DiversyFund review:
What is Diversyfund?
Today, anyone can invest in any sector of the economy they wish to, including the real estate. The Diversyfund allows investors an opportunity to invest in the value-added real estate properties. In addition, it gives the investors alternative appreciation to the invested capital through the multi-family properties.
If you are a non-accredited investor who want to diversify to different types of investments, Diversyfund is giving you that option. With over 20 years’ experience in real estate, stocks, and real estate law, it understands all the ins and outs of the industry which makes it an ideal real estate investment partner.
Types of investments offered by Diversyfund
Diversyfund deals with real estate investments. It acquires and develops multifamily properties in suburbs, metro areas, and central business district. It acquires already existing properties and renovates them. Also, it acquires undeveloped properties and develops them. Then it sells the properties after a, let’s say five-year period.
Is DiversyFund a Worthwhile Investment?
Diversyfund is a legitimate and a good investment option for those who are looking for alternative investment options besides, the stocks, cryptocurrencies, ETFs, among others.
The platform allows the investors with low capital to enter the real estate investment. Also, it is a great investment for the investors who are non-accredited and need to diversify their investment portfolio.
In terms of the safety of your investment, generally, crowdfunded real estate investments are safe. However, like any other businesses, there are risks involved. For instance, one entity handling most aspects in the real estate such as managing assets for the investors, developing properties, and the sales can get risky when things don’t go as planned. So, if you intend to invest in platforms such as Diversyfund, you should weigh the risks versus the benefits involved to see if it is a worthwhile investment.
What Fees Are Charged in Diversyfund?
Diversyfund does not charge upfront fees at the fund level. However, according to SEC, the platform as both the sponsor and the developer, it will charge REIT a list of fees. Although the fees charged are within the industry’s standard, they are slightly higher compared to normal real estate deals. Here is a breakdown of the fees charged by the Diversyfund:
1. Developer Fee
Diversyfund charges a fee of 6%-8% for both hard and soft costs, for instance, real estate, renovation, construction, and professional fees.
2. Construction Management-the fees are not disclosed. However, the range is consistent with that of the industry which is determined by the sponsor.
3.Dispostion of property-the fees that applies is 1% of the total cost of sale.
Features of Diversyfund
1. It does not have the management fee
Most crowdfunding real estate platforms charge a fee of 1% for the management and to cover the costs of platform. The DiversyFund does not charge the annual management fee. However, the platform charges the developer fee for each project at 2%-8% for finding, acquiring, and for the management of each project.
2. A low minimum investment
The Diversyfund has a low investment minimum of $500 down from $2500 in 2019. The minimum fee allows new and low income investors to have a pie of the real estate.
3. Investment is available to non-accredited investors
Most real estate investment platforms are only available to accredited investors. The SEC values the accredited investors have a net worth of $1,000,000. Individuals should at least have an annual income of $200,000 and $300,000 for couples for the last two years. The DiversyFund is open to both the accredited and non-accredited investors.
4. Finds, acquires, and manages investment property
Diversyfund is unique to other real estate investment platforms. It owns and manages all its investments in real estate. Its investments include apartments and luxury homes in various cities in the US. Diversyfund buys, renovates, and develops properties with the hope of selling after appreciation in five years. However, investors do not have control over the investment properties their money goes to.
How to Get Started with DiversyFund
In this Diversyfund review, you will learn how you can start investing in REIT. Here are the steps you need to follow to start your investment:
1.Create an Account
To create a Diversyfund account, first you need to fill in your first and name, phone number, email address, and your password online. Once you have registered your account, you will be able to access the current eligible investment options immediately. Now, you can start exploring the investment options that will help you achieve your investment goals.
2.Select Your Ideal Investment
There are two investment options, the Diversyfund investment and Growth REIT. Click on each option and select invest now to start your investment journey. If you need any sort of assistance in regard to any investment option, you can reach out to the customer care via live chat or a quick call.
3. How Much Do You Want To Invest?
Check the dashboard of the platform and check how much you would like to contribute. The minimum initial investment is $2500 and an increment of $500. The maximum you can invest on the platform is $1,000,000.
4. Keep a Track of Your Investments
Review your portfolio occasionally and keep a record of the total money you have invested. Diversyfund gives you a quarterly report on your investment and annual tax.
The Diversyfund Tools
Accessing the DiversyFund account is quite easy, thanks to various social media platforms. To create an account, you can use either Facebook or LinkedIn. Fill out on the create an account tab. Fill in your name, address, phone number and email address. Create and confirm your password.
You can check all your account information as well as track the progress of your account on the Diversyfund dashboard. Also, the Diversyfund app is available for Android and iOS devices.
How Can I Sell My Diversyfund Investment?
In this Diversyfund review, you have probably noted the illiquid nature of real estate investments, unlike other volatile investments such as stocks, or forex. However, with real estate, once you have made the investment, it is hard to back out until the deal is mature.
Diversyfund does not give the investors the opportunity to sell their investments. Also, the DiversyFund Growth REIT does not distribute the dividends to the investors. It ploughs back the profits into more shares for more cash flow to keep on expanding the investments.
As you can see from this DiversyFund review, it is a good investment option for investors who are looking to enter the real estate industry without the need for large amount of capital. With a minimum investment capital of $500, anyone can become an investor in the real estate. Also, Diversyfund offers its real estate investment trusts (REITs) to investors who do not have the net worth of $1 million (the non-accredited investors). Therefore, there is no excuse for you to not invest in real estate. It is worth noting that the company only offers REIT and no other types of assets.
1. Who can invest with DiversyFund?
DiversyFund Growth REIT is open to anyone who can invest at least %500. Read the Diversyfund review from investors who have already invested on the platform and check out their experience.
2. How can I earn profits from Diversyfund investment?
According to the management, this platform earns profits in two ways: one through acquiring and renovating properties which are sold to higher value. Developing properties and selling them or renting out which in turn earns the profits which are then distributed to the investors.
3. Does Diversyfund operate on Mutual fund?
No, it operates on private funds. The minimum invested fund any individual whether accredited or not can raise into the platform is $500.
4. Which is one is better between Diversyfund and Fundrise?
It depends with the type of investment you want. If you want a one type investment Diversyfund is a better choice. However, if you are looking for invest in a wide range of real estate projects, you can opt for Fundrise platform.
5. Is REIT investment good?
Investors get a good income from REITs. However, you should invest in REITs that will yield higher profits. High performing REITs can outperform other types of investments.