DiversyFund
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Author: Kaitlyn Short
DiversyFund was built around the desire to help the majority population access investment opportunities typically only available to the wealthiest population. In 2014, Craig Cecilio and Alan Lewis (a corporate lawyer and investment banker on Wall Street) founded DiversyFund with the ultimate goal to close the wealth gap. It does this by lowering investment minimums and providing customers with transparent information about its processes and structure.
In the past five years, investors have seen a return of about 18 percent. DiversyFund has an A+ rating on the Better Business Bureau and is SEC-certified, meaning it undergoes strict auditing and review each year in order to maintain business transparency and quality.
Top Ranked Companies
The Good
- Public Non-Traded REIT
- Low Investment Minimums
- Simplified Fees
Public Non-Traded REIT
Specializing in public, non-traded REITs is what DiversyFund does best. Further specializing in multi-family real estate, the company allows customers to invest in large apartment or multi-family housing units with a five-year target return. DiversyFund developed the DiversyFund Growth REIT, which has a five-step success pattern for giving the customer the best return.
These steps are outlined below:
- Capital Raise — Typical in investment companies, customers will see funds being raised for a particular building or apartment complex. You can see property details in this stage and choose to invest with as little as $500.
- Acquisition — Once the required money is raised, DiversyFund purchases the real estate. DiversyFund strives to select real estate with high cash flow and potential for increased value over time.
- Renovation — Once acquired, in order to increase the property value, DiversyFund updates, rennovates, or remodels the property. This helps to increase rent, for example, which increases the overall cash flow.
- Appreciation — Before distributing a profit to investors, time passes to allow the property to increase in value.
- Disposition — In this stage, the acquired property with accrued value is now sold. The profits are divided among the shareholders who invested in the real estate.
Low Investment Minimums
DiversyFund is unique as one of the lowest minimum investment real estate companies in the industry. With as little as $500, customers can invest in a variety of multi-family real estate. This makes DiversyFund a great option for those who can’t meet the typical $10,000 or more threshold for minimum investments in other companies, but who still want to diversify their investment portfolio with quality real estate.
Simplified Fees
DiversyFund uses an all in-house approach to real estate investing. This means that the company’s staff handles all property acquisition, development, and management, eliminating the need (and charge) of third parties who traditionally do this work. This means that a typical fee from DiversyFund for a project is 2–8 percent development fee with zero management or broker fee, much less than other real estate investing companies.
The Bad
- Only 1 Investment Option
Only 1 Investment Option
DiversyFund specializes solely in the DiversyFund Growth REIT, as outlined above. Because of this, it limits other REIT or property investment options that investors could be interested in. With this limitation, however, also comes extreme specialization in Growth REITs.
The Bottom Line
For investors who want to invest in real estate but don’t have thousands of dollars to do so, DiversyFund is one of the best options on the market. Starting at merely $500, investors can invest in a variety of mult-famiy housing units like apartments and condos that pass strict quality and growth-potential checks. You can expect a healthy return on your investment within about five years, making it a great option for relatively quick returns. DiversyFund’s five-step quality process helps ensure that properties increase in value over time.
Additionally, DiversyFund’s fees are one of the lowest on the market, entirely skipping management or broker charges. For the beginner or advanced investor, DiversyFund is a great option for real estate investing.
