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DiversyFund is a real estate investment option that gives everyday investors access to multi-million dollar real estate assets starting at just $500. DiversyFund is a good option if you’re a non-accredited investor looking to diversify your portfolio beyond stocks and bonds.
Other real estate investing options you may like:
|Investment Offerings||Growth REIT, IPO|
|Investment Accounts||Individual & joint, trusts, retirement (self-directed IRA), certain entity accounts|
|Investment Amounts||$500 – $1,000,000|
|Accredited Investor Status||Not required|
|Availability||All 50 states|
- Invest with just $500
- Higher historical returns than stocks
- No accredited investor requirement
- Available for self-directed IRA accounts
- Available in all 50 states
- No expensive broker fees
- Private REIT (not tradeable)
- “Blind pool” investments
- Long-term investment (5 years)
DiversyFund Investment Offerings
DiversyFund offers two investment opportunities: DiversyFund Growth REIT and Diversyfund Series A Round. For reasons that will become clear below, the bulk of this article will focus on the DiversfyFund Growth REIT.
The DiversyFund Growth REIT gives you an opportunity to invest in a portfolio of properties, without having to get involved with managing them. It’s as simple and easy as typical paper investments.
The DiversyFund Growth REIT:
- Focuses on apartment buildings
- Requires zero management fees
- Is SEC-qualified
- Is a private REIT
Shares are $10 each. So with a $500 minimum investment, you’ll be able to purchase 50 shares.
A $500 minimum investment is relatively low, making it a viable option for most people.
Your investment is considered preferred equity. This mean you’ll get both dividend distributions as well as capital appreciation on the sale of the properties in the fund.
The DiversyFund Series A Round is a direct investment in the company itself. It’s an initial public offering (IPO) with the opportunity to become co-owner of the DiversyFund Real Estate FinTech Platform. The company’s mission is to become the go-to alternative-investment platform for everyday investors.
However, the Series A Round investment is not for the everyday investor. It requires accredited investor status and a minimum investment of $25,000. The IPO timeline is two to four years, seeking a 10x return on a minimum two-year investment. Of course, these numbers are highly speculative which is why it warrants accredited investor status.
How DiversyFund Works
DiversyFund invests in apartment buildings as an investment partner, rather than as a broker. That means no investment fees, and it also means the fund doesn’t make any money unless you do.
Here’s how it works:
- Acquisition. The fund buys multi-family apartment buildings with rented units, so it’s already generating revenue. However, these properties are purchased at a low cost because they are in need of improvements.
- Renovations. To increase cash flow, each building will complete renovations within one year of purchase. These renovations allow the fund to increase rent and raise the value of the property.
- Holding period. Each investment is held for five years, allowing it to appreciate in value.
- Distributions. Cash flow distributions (rent income, etc.) are reinvested monthly for investors until the property is sold and the final return is distributed.
Here’s how DiversyFund returns work:
- Investors are protected by a 7% preferred return before DiversyFund receives any profit split.
- After the preferred return, there’s a 35/65 profit share between DiversyFund and the investors.
- Once the investors have made 12% per year, the profit split changes to 50/50.
- After five years, the property will be sold and the profits split.
To start, there’s no accredited investor requirement, and you can invest with as little as $500. That makes the DiversyFund Growth REIT open to all investors, including the average Joe.
Another compelling reason? The average annual return is over 17%. That’s much higher than what you can historically get on stocks and just about any other type of traditional investment.
DiversyFund invests in primarily multi-family apartment buildings. This is important because apartment complexes are one of the best-performing and most reliable sectors of the real estate market. Think about it: everyone needs a place to live. Even during recessions, the apartment market often strengthens. That’s because less people can’t afford homeownership and turn to renting instead.
DiversyFund owns and manages all of its assets. This removes the need for third-party involvement along with their fees. Hence, you won’t have to pay management or platform fees.
And finally, by investing with DiversyFund, you’ll spread your risk across several properties. So the loss from one, single property is minimized.
There are no fees for investors, and DiversyFund does not charge a sales commission.
If you want to invest outside of traditional stocks and bonds, you can do so with DiversyFund with just $500. The Growth REIT is an excellent way to diversify in one of the most stable and lucrative sectors of the real estate market.
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