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Invest in Real Estate with No Fees: Diversyfund Review

 

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Have you ever wanted to get a piece of the real estate market? Maybe you’ve considered getting in on the action, but you’re still saving up a down payment on a real estate investment property?

 

Well, if you’d rather skip the 5 figure down payment and get a piece of the action right now for just $500, I will highly recommend you to check out DiversyFund.

 

What is DiversyFund?

 

DiversyFund is a crowdfunding platform made for those who want to invest in real estate. This company isn’t your everyday crowdfunding platform though.

The company offers a simple investment: a multifamily real estate investment trust called the DiversyFund Growth REIT.

The purpose of the fund is to increase cash flow generated by properties the managers invest in, while also increasing real estate value by upgrading the properties.

 

The gist of it is this: You can invest in multi-million dollar real estate assets through a REIT that has generated average returns of 17.6%, and you only need a minimum of $500 to invest.

 

DiversyFund offers eager investors an alternative to the common investment route of stocks and bonds by allowing easy entry into the real estate investment trust (REIT) sector.

 

REITs are companies that have ownership over (and often operate) a number of income-producing real estate assets. DiversyFund is simply a financial tech company helping everyday investors access the world of real estate investing on a simple, user-friendly platform.

 

The DiversyFund Growth REIT is an SEC-regulated REIT whose main goal is to build portfolio wealth by investing in cash-flowing real estate, with a focus on apartment buildings.

The goal is to offer investors a long-term capital appreciation strategy by renovated and repositioning multi-family properties.

 

PROS & CONS

 

PROS

  • Low minimum investment of $500
  • No management fees
  • Average return rates of 17.6%
  • Don’t need to be an accredited investor
  • Invest in minutes
  • Easy to use platform
  • Track your investment on the platform

 

CONS

  • Can’t opt-out of specific property investments
  • The limited research available on the platform
  • Only available to US citizens

 

Who is DiversyFund For?

DiversyFund is for the everyday American investor:

  • Individuals looking for an alternative to stocks and bonds
  • Investors who want to invest in real estate, but don’t necessarily want to be landlords
  • Investors who aren’t yet accredited or experienced

 

It’s important to note that DiversyFund is only available to US Citizens.

 

It used to be that only the wealthy were able to put their money into alternative investments. But, because of a new amendment to the JOBS Act in 2015, alternative investments, such as REITs were finally options for the average investor, even without being wealthy or having a strong investment portfolio.

Essentially, DiversyFund is for you if you’re a newer investor, who is not yet accredited but you still want to diversify your investments beyond stocks and bonds.

 

The experts at DiversyFund have over 20 years of experience in real estate law, stock trading, and real estate development, and are right in the thick of it with each individual investment – managing it.

 

How is the DiversyFund Platform?

If you meet the above criteria and are still interested in DiversyFund’s REIT investment, let’s take a look at the platform and tools they offer investors.

 

Platform

You can easily set up an account on their platform by entering your Facebook or LinkedIn credentials. Or, you can simply enter your details under the “Create Account” tab on their website, here.

All you need to sign up is your first and last name, phone number, zip code, and email address. Then you’ll create your password, confirm your password, and include a referral code.

Then, you’ll follow a few step-by-step instructions to complete your profile, and you’re ready to dive in.

Once you’re in the platform, you’ll have full access to view the performance of your investment through the DiversyFund Dashboard. You can track your current total investment amount and review your entire portfolio.

Plus, you’ll also receive quarterly investment reports and tax documents annually.

 

Research Tools

DiversyFund also includes a vast number of investing articles so you can learn the ins and outs of the investment world. You’ll find a series of articles for new investors, titled:

 

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

 

You can track your progress and complete tasks as you go through the beginner series. Once you’ve finished it, there will be a new section of articles available titled, “The Basics are Covered, on to Alternative Investments.” Here are the titles in this section:

 

  • Defensive Investments Can Protect Your Portfolio
  • Alternatives for All

 

Once you’ve completed the second section, there is a final section that covers investing in real estate. Here are the titles in this section:

 

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

 

The research that is provided is pretty basic, which can be helpful for beginner investors, but it’s hard to navigate. Because you have to complete one section to get to the next, it makes it difficult to skip ahead and learn what you want.

 

There are a ton of basic investing articles which aren’t necessary for every investor who uses the platform.

 

The website also includes a number of questions on investments, how the Growth REIT works, who can invest in the REIT, and if international investors can invest. There is also an FAQ on the site that answers the most common questions asked by investors on the platform.

Overall, it’s nice that some research is provided for newbie investors, but for those who are a bit more experienced, for me, the articles are quite elementary.

It would be better if they had advanced research articles as well. Plus, if there were simply more articles it would be much better.

For new investors looking to really get their feet wet and learn how to invest, this isn’t the site. You can grow your money, but you’ll have to go to another platform to continue your financial education.

 

How Much Are DiversyFund’s Fees?

Beyond a simple, user-friendly platform, the one thing that stands alone about DiversyFund is the fee structure. To start investing in the Growth REIT, you only need to contribute $500.

It’s the unique selling proposition that DiversyFund offers to allow just about anyone to be able to invest.

But, that’s not all. The second major factor that sets DiversyFund apart is its fee structure. Most REITs or mutual funds will charge a management fee. DiversyFund doesn’t. They waive their 2% annual management fee.

Let me repeat that.

DiversyFund doesn’t charge any fees.

 

It’s the kicker that really sets them apart from the competition. Not only do they make it easy for a newbie to investing, but they don’t stack on any unnecessary fees.

This is huge.

Most other managed funds charge a 2-4% fee which can work out to be hundreds of thousands of dollars over a lifetime.

But with DiversyFund, if the REIT makes 17.6% (which is its average return rate), you keep the entire 17.6% return on your investment.

 

It may seem too good to be true, but it’s legitimate. You may beg the question…

 

Well, how do they make money then?

 

In short, they make money in acquisition and development fees (which don’t come out of your pocket).

 

DiversyFund handles the acquisition and development side of the real estate deals, unlike most REITs. They make money in those areas.

They get paid when the properties in the REIT rise in value and they sell them. In other words, they only make money if the properties make money.

But before they take their share, they first pour the capital gains into the REIT. This means they only get paid when you get paid.

 

How is DiversyFund’s Customer Support?

 

DiversyFund has a few different options for reaching out to their customer support team:

  • Email them at invest@diversyfund.com
  • Open a new chat with them through their live chat option
  • Schedule a call using Calendly to arrange a 10-20 minute meeting

 

Their corporate office is located in San Diego, California and their office hours are 8 AM – 6 PM, Monday to Friday. While it wasn’t listed on their website, their phone number showed up on Google: 1-858-430-8528.

 

Is DiversyFund Easy to Use?

 

As for me, yes, it’s very simple.

 

There are 4 easy steps to start investing with DiversyFund:

 

1. Create Your Account

 

The first thing is, of course, to set up an account on DiversyFund’s website. Complete all your contact details, and fill in your profile, and you’re all ready to go. Once your profile is complete, you’ll be registered and able to access their investment opportunities. You can just click here.

 

2. Pick Your Investment

 

DiversyFund actually offers 2 investments:

 

You can choose between investing in their Growth REIT or in their Series A Round. The Series A Round does require you to be an accredited investor, however.

 

You can see more details between the two investments by clicking “Invest Now” on the main page. If you want more information you can contact DiversyFund’s customer support through the live chat or by scheduling a call.

 

3. Choose How Much You Want to Invest

 

Once you’ve picked your investment, you will select how much you would like to invest. You will also see your expected return on investment based on the REIT’s past performance which is encouraging.

The minimum investment for the Growth REIT is $500. However, if you want to invest in their Series A Round investment, the minimum is $25,000.

 

The maximum amount you can invest is $1,000,000.

 

4. Track Your Investment Growth

 

Once you’ve invested, your money will be working in the REIT. From here, you can track your investment in the platform. You can see your total amount invested.

You can also review your portfolio and receive tax documents once a year and receive quarterly investment reports.

As soon as you are registered as an investor, you will receive email confirmations to complete your registration.

DiversyFund will also send out regular emails for investment opportunities, any updates with your investment, or any other information and updates about DiversyFund.

 

DiversyFund Recap: Is it Right for You?

 

If you live in the United States and you’re a new investor, then DiversyFund might be right for you. If you’re looking to expand your investment portfolio beyond stock and bonds, then DiversyFund could be the best way to begin.

 

It’s important to note that as an American investing in DiversyFund, you will be required to complete U.S. tax forms (plus a W-9) for your investments.

You will also need to submit a U.S. tax return with the Schedule K-1 that DiversyFund sends annually to its investors.

 

If you’re ready to dive into the world of real estate investing, but don’t want to be a landlord, manage a property, and put $10,000+ into a down payment, then DiversyFund is a great alternative.

You only need $500 to start investing, and from there, you can expect returns upwards of 17.6% (their average return rates) with no fees.

Bonus: You also get a $20 gift card when you make your first investment, so that’s a nice little bonus.

 

Want to invest in commercial real estate? You can become part-owner in apartment complexes for as little as $500. Invest today!

Also, read our post on How to start investing in Real Estate and Real Investment Guide: When to or not to buy.

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  1. Pingback: REITS: A Cheap Way to Buy a Million-Dollar Property - Two Cents Read

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