I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.
DiversyFund is a good option for those with long-term financial goals who do not have a large amount of start-up capital.
- Invest with just $500
- Available to all investors
- Apple and Google mobile app
- Institutional quality assets
- Taxed on dividend income
- Highly illiquid investments
- Yearly management fees
Do you feel like you don’t have the assets, time or accreditation required to invest in real estate? If so, real estate investment trusts (REITs) offer most investors the opportunity to include real estate in their portfolios.
While even REITs can have sizeable initial investment requirements, DiversyFund has one of the lowest initial investment requirements of all REITs.
On the other hand, DiversyFund does not allow you to claim your dividends as cash — you must reinvest them.
Here is a complete overview of DiversyFund and how you can decide if it’s the right investment for you.
What is DiversyFund?
DiversyFund, based in San Diego, California, is an online, crowdfunded real estate investment platform allowing regular, non-accredited investors to invest money into real estate.
CEO Craig Cecilio and CIO Alan Lewis founded DiversyFund in 2014. They wanted to create a way for everyday investors to make money in one of the largest and fastest-growing industries.
Real estate investment is typically reserved for accredited investors with large bank accounts and net worth. For this reason, the creators of DiversyFund wanted to ensure that everyone — no matter their wealth — could become real estate investors.
How DiversyFund Works
DiversyFund works similarly to most REITs, but differs in several important ways. REITs are a type of mutual fund — a kind of crowdfunding for investors that can turn non-stock options into tradable options available for more investors.
Mutual funds collect money from many investors and make investments on behalf of the whole base.
Most REITs collect money from many investors and then offer loans to real estate owners or businesses that want to improve, build or hold commercial real estate.
Like other REITs, DiversyFund collects money from its investors, but instead of loaning that money to companies that want to improve, build or hold real estate, they buy it themselves.
DiversyFund differs from typical REITs in another critical way: it does not pay cash dividends. Most REITs pay their investors the amount a property has increased in value at the end of the year.
So, for example, if you invested $100 into a property through a REIT and the property value went up five percent, you would earn $5 at the end of the year.
In this example, DiversyFund will not give you the $5 but will keep it and then reinvest it into the property on your behalf, adding it to your initial investment.
This reinvestment will increase your investment to $105, but you cannot pull out and invest elsewhere if you change your mind.
DiversyFund also charges users a two percent annual management fee. This may not seem like a hefty fee, but considering that growth could be as low as five to seven percent for many private REITs, this is a significant amount.
There may also be additional asset management fees or developer fees, although DiversyFund advertises that they do not charge platform fees.
DiversyFund Investment Options
DiversyFund only has one investment option available for users — its Growth REIT.
DiversyFund Groth REIT
The Growth REIT from DiversyFund has a minimum investment of $500, and it does not invest in all types of properties — only multifamily properties.
If you want a more diverse set of investment properties, DiversyFund is likely not your best choice. The Growth REIT will invest your money into multifamily properties. As your money grows, DiversyFund will continue to reinvest the profits.
Then, after a certain agreed amount of time, DiversyFund will sell a property within the REIT, hopefully at a profit. Once the property sells, you will get back the money you put in and accrued value.
DiversyFund Fees & Investment Minimum
Who Should Use DiversyFund?
Whether you invest in DiversyFund largely depends on your investment goals. REITs, especially private REITs, are highly illiquid investments.
If you are looking for an option that provides cash flow or short-term profit or you need your money back within five years, DiversyFund is not for you.
However, if you are looking for real estate investment options to add to your retirement investment portfolio, DiversyFund may be a good option.
It offers a very low minimum investment compared to other REITs, which makes it accessible for beginners.
How Does DiversyFund Compare?
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.85% to 1%
None for investors
Getting Started with DiversyFund
To get started with DiversyFund, you can sign up on their website. They will ask for your name, social security number, identification and initial investment money.
You should note that you must be a United States resident and over the age of 18 to invest in DiversyFund.
Diversyfund is a great platform to use if you want to invest in a real estate investment trust. All you need is $500 to get started. It’s a really good long-term investment for people who want to diversify their portfolio.Taylor W., Verified Trustpilot user
The concepts of stability and growth, understood as the opposite of volatile investment products, appeal to people of a particular investment philosophy. Diversyfund deserves a five star rating because not only has it developed a solid foundation for that philosophy, but it has also found ways of building on it and it is delivering. Kudos!Shawn O., Verified Trustpilot user
Is DiversyFund a Good Investment?
If you are looking for real estate investment opportunities and only have a small amount of money to invest, DiversyFund is a good investment.
However, if you have the funding to make a larger initial deposit, other real estate crowdfunding platforms have lower fees and pay distributions instead of requiring reinvestment.
Here are the most commonly asked questions about DiversyFund.
Is DiversyFund trustworthy?
Yes, DiversyFund is trustworthy. The company owns several multifamily properties, and your money will go toward increasing the value of those properties.
What is the minimum investment on DiversyFund?
The minimum investment on DiversyFund is $500.
Can you really make money with DiversyFund?
Yes, you can really make money with DiversyFund in the long term. However, you will not increase your cash flow or make money in the short term with DiversyFund.
Can you withdraw money from DiversyFund?
You cannot make withdrawals from DiversyFund before properties have appreciated and DiversyFund has sold them.
Does DiversyFund pay dividends?
DiversyFund does not pay dividends. You will earn on your investment once DiversyFund has sold the property you invested in.
What is the average return on DiversyFund?
DiversyFund estimates a 17 percent average annual return for investors.
Does DiversyFund have a mobile app?
Yes, DiversyFund has an app on both Google Play and Apple stores.
Welcome to the future of real estate investing. For a limited time, invest and get $10 in shares*. It only takes a few minutes to get started.
DiversyFund is an alternative investment platform with zero management fees. It allows you to invest in REIT's in order to help you diversify your investment portfolio.
Product Brand: DiversyFund
I'm Donny. I'm a world traveler, investor, entrepreneur, and online marketing aficionado who has a big appetite to compete and disrupt big markets. I thrive on being able to create things that impact change, difficult challenges, and being able to add value in negative situations.More Posts