Real estate investing typically has a high barrier to entry. You need to save enough money for a down payment, but the expenses don’t end there. You also have to make monthly mortgage payments, cover property management, and pay for any incidentals along the way. Real estate requires a lot of capital, but you don’t have to do it alone. DiversyFund pools money from other investors to buy multifamily complexes. The DiversyFund Growth REIT only has a $500 initial investment requirement which makes the space more accessible for investors. Other funds have higher initial investment requirements.
What is DiversyFund?
DiversyFund is a private real estate investment firm that gives investors exposure to multifamily apartment complexes. The company’s fintech platform makes institutional properties more accessible to everyday investors.
DiversyFund has a community of over 400,000 investors that target properties with 5-7 year time horizons. Investors get to enjoy a hands-off experience as DiversyFund’s experts look for promising opportunities and manage acquired properties.
How DiversyFund Makes Real Estate Investing Easier
DiversfyFund removes the capital-intensive barrier to entry and has experienced professionals manage the investments. Real estate can get costly, especially if you are a beginner. You don’t have to read real estate books, build your network, or make expensive mistakes to profit from real estate. DiversyFund handles the complex parts of the real estate investing process.
Since DiversyFund is a REIT, it is required to distribute 90% of its taxable income to investors. You will receive cash flow while holding onto your shares. While you receive cash flow, your shares can also appreciate and yield a greater profit if you sell them in the future.
DiversyFund also makes volatility less stressful for investors. While real estate properties collect rent payments regardless of market fluctuations, they are a lot of work to manage. Real estate investment trusts on public exchanges are vulnerable to stock market price fluctuations. Since DiversyFund has less volatility, you won’t feel as stressed with your investments and may become less prone to making investment decisions based on your emotions.
How DiversyFund Works
DiversyFund has a 4-step process it uses to acquire assets and reward long-term investors.
Capital Raise
DiversyFund works behind the scenes to find compelling multifamily investment opportunities. After finding a desirable property, the firm reaches out to investors and raises capital for the investment property. DiversyFund taps into its community of over 400,000 investors to raise funds.
Acquisition and Renovation
DiversyFund conducts a rigorous process to identify and acquire compelling investment opportunities. The firm looks for properties that present promising growth opportunities. After the acquisition, a management team oversees the property. Some properties need renovations and other upgrades to increase value. DiversyFund also handles property management.
Stabilization
Stabilization is the stage that takes place after renovations are complete. At this point, the property begins to appreciate and generate cash flow. DiversyFund works to maintain the property in good condition leading up to the sale.
Liquidation and Distribution
DiversyFund typically holds onto multifamily properties for 5-7 years. The company looks for a buyer and then distributes the net proceeds to investors. Some liquidations involve the sale of a single property, while other liquidations involve selling an entire portfolio.
DiversyFund Products and Details
DiversyFund has several products that can help you earn a higher return on your money. These are the funds and opportunities you can get involved in.
The Independent
The Independent is a 61-unit mid-rise multifamily property in Sand City, California. The investment opportunity revolves around long-term growth and has a $50,000 minimum investment. The 4-floor building was recently converted from a commercial property to a residential space. The first floor still has a commercial tenant and 11,000 square feet of vacant commercial space. The rest of the floors are filled with apartment units.
The Independent has received 85% of its targeted funding and has a 5-year projected hold period. The firm has targeted an annualized return of 15% for investors. DiversyFund projects a $20 million purchase price and a $35 million exit price for this investment opportunity. The “going in” cap rate is 5.1%, and the multifamily property currently has a 95% occupancy rate.
Opportunity Fund I
The Opportunity Fund I invests in distressed or opportunistic multifamily properties throughout the United States. The firm focuses on long-term growth for this fund and requires a $25,000 minimum investment. DiversyFund looks for assets priced below the expected current market value. The fund also invests in short-term rentals from time to time if the firm believes these assets can maximize the fund’s profits.
The fund has a 7-10 year projected hold period and projected annualized return of 12%-15%. DiversyFund is targeting 5-10 investment properties with this fund and is aiming to raise $50 million.
DiversyFund Venture Investment
The DiversyFund Venture Investment fund gives investors access to DiversyFund’s portfolio as if they were venture capitalists. This fund requires a $25,000 minimum investment. The DiversyFund Venture investment fund is for accredited investors and has been around since 2015.
DiversyFund currently has $224 million in assets under management and over 28,000 total investors. The real estate firm invests in multifamily assets throughout the United States and has a community of over 400,000 people. DiversyFund’s success can become your success if you buy shares. It’s similar to buying a stock before it files for an IPO.
What are the Benefits of Investing with DiversyFund?
DiversyFund presents several benefits for investors.
- Easy access to real estate: You don’t need to invest millions of dollars to get exposure to a multifamily property. Some of DiversyFund’s REITs give you exposure for as little as $500, while others have higher minimum requirements.
- You don’t have to manage properties: Investors don’t have to worry about receiving a late-night call from a tenant to fix the toilet or navigate the challenges of being a landlord. Investing with DiversyFund can save you a lot of time.
- A professional team oversees the entire process: You won’t have to worry about the complexities of finding great real estate investment opportunities. DiversyFund has a team of professionals that look for investment opportunities and know the optimal purchase price. It can take several years, if not over a decade, to acquire the same knowledge yourself. You also won’t have to worry about making expensive mistakes in your real estate investing journey. It’s better to go into a real estate investment opportunity with a team than going solo.
- High returns: DiversyFund projects double-digit annualized returns for The Independent and Opportunity Fund I. Those returns can help investors outperform the stock market.
- Less volatility: You can buy REITs in the stock market, but those investments go through daily price fluctuations and endure volatile swings based on market conditions. DiversyFundinvestments do not go through that type of volatility and remain relatively stable.
How DiversyFund Compares
DiversyFund offers competitive REIT opportunities for investors who want exposure to multifamily properties. The minimum deposit requirements are high, but that’s normal for private real estate firms. These companies have high minimum investment requirements to raise funds quicker and acquire opportunities as they present themselves.
DiversyFund’s projected returns are also competitive. Investments that yield double-digit returns have the potential to outperform the market.
Who Is DiversyFund Best For?
DiversyFund is a private real estate firm that offers several investment opportunities. These are some of the people who can benefit the most from DiversyFund.
Aspiring Real Estate Investors
DiversyFund gives you exposure to several real estate investments. Investors who value real estate for its cash flow, tax benefits, resistance against inflation, and other perks can get started with a DiversyFund REIT.
Investors Who Want a Hands-Off Approach
DiversyFund handles everything, from finding investment opportunities and managing them to contacting potential buyers and selling at the best exit price. You don’t have to do anything once you put your money into one of the real estate firm’s funds.
Investors Who Want to Beat the Market
DiversyFund projects double-digit returns for its investment properties. Those annualized returns can exceed the market and reward long-term investors.
Individuals Who Want Less Volatility
DiversyFund assets do not fluctuate every day. You won’t have to stress over stock prices or how the market is performing. You can take a more passive approach with your DiversyFund investments and know that your capital is in good hands.
Should You Invest in DiversyFund?
Investing in DiversyFund can make sense for accredited investors who want to increase their returns and diversify their holdings without owning real estate. Multifamily properties require significant capital and can be a lot for one person to manage on their own. Having a professional team assist you along the journey can save you a lot of time while increasing the likelihood of a better outcome.
DiversyFund minimizes your risk as an investor since you don’t have to put all of your capital into a multifamily property. You can then spread your funds across several asset categories instead of tying up all of your cash into one multifamily property.
How to Get Started with DiversyFund
You can view DiversyFund’s investment opportunities on its website. However, if you want to create an account, you will have to fill out this form. The firm will ask for your email and password to create an account. You will then have to link up your payment method if you want to make the minimum investment for one of the funds. DiversyFund uses bank-level security whenever handling your data to keep it protected.
After creating an account, you can also download the DiversyFund app to monitor your investments. This app lets you track how your assets are performing over time. You can also set up auto-invest and discover new opportunities from the firm.
