Contributor, Benzinga
September 12, 2023
Diversyfund
Overall Rating:
securely through Diversyfund's website

-NOTICE- Benzinga has been alerted that Diversyfund has suspended its monthly dividend. This review will be updated once we investigate these changes to the platform’s dividend payments.

DiversyFund isn’t your average crowdfunding platform. You’ll find that the company puts a twist on the traditional everyday crowdfunding platform, beyond anything you can find online with a simple Google search. You only have to look under DiversyFund’s skin one layer to surmise that DiversyFund is a conscientious developer and sponsor and helps hedge risk through improved vetting.

DiversyFund offers a multifamily real estate investment trust, the DiversyFund Growth REIT, and its main goals are to increase cash flow and resale value. It’ll automatically give you access to multi-million dollar real estate assets.

Best For
  • Those looking for an alternative investment beyond stocks and bonds
  • Individuals who aren’t sure they want to be landlords in the traditional sense
  • Investors who aren’t accredited
Pros
  • Only need to pony up $500 to get started
  • Open to investors all over the world
  • No expensive broker fees
Cons
  • You’ll only be able to access “blind pool” investments, which means that you can’t opt out of specific properties
  • There’s only one real investment option, the DiversyFund Growth REIT

Diversyfund Ratings at a Glance

DiversyFund Platform and Tools
DiversyFund Research Offerings
DiversyFund Fees
DiversyFund Customer Support
DiversyFund's Ease of Use
DiversyFund Overall

Anyone interested in investing outside of stocks and bonds can burst onto the real estate investment trust (REIT) scene. REITs are companies that own and often operate income-producing real estate. DiversyFund is open to US real estate investors (not just those who are accredited) for only $500. Much different than a real estate crowdfunding site, DiversyFund is a financial tech company that helps everyday people invest by giving them access to alternative investments.

The DiversyFund Growth REIT is a SEC-regulated REIT that builds wealth by investing in cash-flowing apartment buildings. The company’s focus is on long-term capital appreciation from the renovation and repositioning of these multi-family properties.

Who’s DiversyFund For?

Only wealthy people used to be able to invest in alternative investments. A new amendment to the JOBS Act in 2015 made it possible to invest in REITs even if you weren’t a wealthy, accredited investor. 

The DiversyFund Growth REIT gives investors the opportunity to invest in value-add real estate projects and can offer an alternative to appreciate invested capital through multifamily properties. DiversyFund is for you if you’re a non-accredited, mainstream investor who wants to diversify your investments beyond stocks and bonds and open your worldview toward alternative investments.  

DiversyFund’s experts have over 20 years of experience in stock trading, real estate law and real estate development and know the ins and outs of that particular investment location.

DiversyFund Platform and Tools

Think you might be ready to dive into the DiversyFund Growth REIT?

You can use Facebook or LinkedIn to create an account or fill out the Create Account tab on the website with your first name, last name, phone number, zip code and email address. Then, you’ll create a password, confirm that same password and include a referral code. (You can find step-by-step instructions in the next section.)

You have full visibility into the performance of your investment via the DiversyFund Dashboard. Track your total current invested value and review your portfolio. You’ll receive quarterly investment reports and annual tax documents.

DiversyFund Research Offerings

DiversyFund has a robust collection of investing articles that can help you make the right decisions about investing in general. For example, you’ll see interactive articles for beginners titled: 

  • Saving is Good, Investing is Better: When to Know You’re Ready
  • Always Start With a Plan: Your Personalized Roadmap
  • Work Smarter, Not Harder!
  • How Much Should I Invest?

Once you’ve accomplished the tasks set forth in the first series, you can go through a series of articles under “The Basics are Covered, on to Alternative Investments.” This section covers 

  • Alternatives for All
  • Defensive Investments Can Protect Your Portfolio

Finally, the third series of articles specifically covers real estate investing and includes the following: 

  • Real Estate Can be the Perfect Way to Diversify
  • Diversify and Minimize Volatility
  • Multifamily Real Estate is Secure and In-Demand

The information can be difficult to comb through, particularly because there are a lot of basic investing articles, which may not be necessary. There are some common investment questions on the website that explain the Growth REIT, who can invest and whether international investors can invest. 

There’s also a series of FAQs on the website that can connect you to general questions related to DiversyFund.

DiversyFund Fees

DiversyFund’s Growth REIT minimum investment requirement is only $500. There are no fees for investors, according to DiversyFund’s website, but you might notice that DiversyFund waived a 2% annual management fee.

The company doesn’t charge a sales commission, so how does DiversyFund make money? Check out DiversyFund’s Series A presentation, charted for prospective investors, so you can get a more clear-cut understanding of the underlying ways the company makes money. The Series A presentation is an in-depth explanation of how the company could potentially raise up to 100 times more revenue per dollar compared with other real estate platforms. 

DiversyFund expects to invest a total of $225,000 as equity in its Series A but might collect an estimated $1.2M in developer fees. Do your homework so you’ll know whether you’re charting the right path for your long-term investments. It’s worth understanding how the company makes money to know how it’ll impact your investment and whether that investment is right for you. 

DiversyFund Customer Support

You can contact DiversyFund’s Investor Relations team experts by emailing invest@diversyfund.com, through DiversyFund’s live chat option, or you can schedule a call using Calendly to set up a 10- or 20-minute meeting. There’s no research-based indication of how responsive DiversyFund is to its clients.

DiversyFund's Ease of Use

Getting started with DiversyFund is as easy as adding a photo to Instagram. You’ll follow 4 simple steps: 

Step 1: Create an Account

First, you’ll create an account online at DiversyFund by filling in your first and last name, email address, phone number and password. You’ll immediately have access to current eligible investments as soon as you register and can start to explore the opportunities that fit your investment goals. 

Step 2: Choose Your Investment

Choose between the Growth REIT or invest in DiversyFund through its Series A Round. You can view details for each or click on “Invest Now” to officially get started. Reach out using the DiversyFund live chat or schedule a call to get quick answers to questions you have.

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Step 3: Decide How Much You’d Like to Invest

View the DiversyFund dashboard and select the amount you’d like to contribute. The minimum investment amount is $2,500 in $500 increments, and the max amount is $1,000,000.

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Step 4: Track Your Investments

Track your total current invested value and review your portfolio. You’ll receive quarterly investment reports and annual tax documents.

When you register as an investor, you’ll receive emails that confirm the specific actions you requested. These will include emails to complete your registration and notifications confirming your registration. After setup, expect to get emails when a new investment opportunity is offered, as well as progress updates and other relevant information. If you make an investment through the site, DiversyFund will also send you status updates about timing and distribution information about of that investment.

DiversyFund Overall

If you live in the United States you can start investing with DiversyFund. However, be aware that you’ll be required to provide completed U.S. tax forms, including a W-9. You’ll also need to file a U.S. tax return with the Schedule K-1 that DiversyFund disperses annually.

If you’re ready to invest outside of humdrum stocks and bonds, you can invest with DiversyFund with a meager $500, a 11.4% return makes that small investment worthwhile.

Frequently Asked Questions

Q

What is the return rate for DiversyFund?

A

DiversyFund aims to achieve a return rate of 10% to 20% on the initial $500 minimum investment after five years.

Q

What is the difference between Fundrise and DiversyFund?

A

The main difference between Fundrise and DiversyFund lies in their investment strategies and target investors.

Fundrise is a real estate crowdfunding platform that allows individual investors to invest in a diversified portfolio of real estate assets. They primarily focus on commercial real estate projects and offer both eREITs (Real Estate Investment Trusts) and individual property investments. Fundrise is open to both accredited and non-accredited investors.

On the other hand, DiversyFund is an alternative investment platform that specializes in real estate investments. They focus on providing investment opportunities in residential real estate projects, specifically single-family homes and multi-family apartments. DiversyFund primarily caters to accredited investors.

While both platforms offer opportunities to invest in real estate, their specific investment strategies and target investor profiles differ. It’s important for potential investors to carefully consider their investment goals and risk tolerance before choosing between Fundrise and DiversyFund.

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