In an interview with Benzinga, Craig Cecilio, co-founder at the real estate investment platform DiversyFund, discussed the firm's mission of unlocking wealth-building opportunities for experts and novices alike.
About DiversyFund
Started in August 2016 by Cecilio and Alan Lewis, DiversyFund is a wealth creation tool that offers multimillion-dollar crowdfunding investment opportunities to everyday Americans.
The venture was born out of a realization, according to the company: traditional ways of raising money are dated, and new technology reduces risk and increases opportunity.
The firm's core area is building wealth through the ownership, funding and sale of properties over the long-term for a profit.
How The Platform Works
The firm is not the average crowdfunding platform that matches investors to real estate projects. Instead, DiversyFund is both the developer and sponsor, helping hedge risk through improved vetting.
“We are vertically integrated. That means we own the properties; we are not lending to other people,” Cecilio told Benzinga.
DiversyFund's offerings include a multifamily real estate investment trust, the DiversyFund Growth REIT.
The REIT gives investors the opportunity to invest in value-add real estate projects: the focus is to appreciate invested capital through the repositioning and renovation of multifamily properties.
Multifamily developments yield the safest returns in DiversyFund's view, Cecilio said.
Future Plans
DiversyFund aims to expand its enterprise, the CEO said.
“In three to four years, I’d like to get to 100,000 customers," he said.
"Once we get to 100,000 customers, I’d like to introduce other projects [such as] a blended fund and other alternative investments."
In June, DiversyFund received a qualification from the SEC to lower the minimum investment requirement for its non-traded REIT to $500.
This development plays into the firm's efforts to unlock real-estate funding opportunities for underserved investment communities, Cecilio said.
The Takeaway
In an effort to enrich investors, DiversyFund employs tech and vertical integration to sell funded properties for a profit.
“It is for all types of investors," Cecilio said of the fund.
"It's great for anyone. No matter where you are on the socioeconomic ladder, you are able to do this."
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