DiversyFund Review 2021: Is This Real Estate Investment Site Worth Your Time?

By Katy Hebebrand

November 1, 2021

What Is DiversyFund?

Traditionally, real estate investments are limited to people with a large pool of financial resources. Even if you have the money to invest, you may not have the time to flip or build and manage properties.

With DiversyFund, many investors pool money together for a single property. Your investment goes toward an apartment building that has 100 or more units across the United States. The DiversyFund team sets an anticipated rate of return between 10-20% for each complex. You can anticipate seeing a return on your investment over the course of a five year profit cycle.

How Do DiversyFund Investments Work?

Businesses, like DiversyFund, that use the REIT model for investments must follow strict guidelines set by the Internal Revenue Service. DiversyFund must pay out 90% of its taxable income to investors annually. In order to acquire these profits, DiversyFund follows a five-step process for all of its properties:

Raising Capital

DiversyFund collects the amount of money needed for a particular property. Lesser investments may be pooled into a property of DiversyFund’s choosing. If you invest more, you may be able to choose the property for your investment.

Property Acquisition

The DiversyFund team identifies property that has the potential to turn a profit. Investment properties must meet certain outlined criteria that indicate the potential for an increase in value.

Renovating the Property

DiversyFund pays for upgrades and repairs that improve the property. The goal is to offer enough value to increase the cost of rent for each unit.

Increase in Value

It may take time for the overall property value to go up after completing the renovation process. DiversyFund investors earn dividends each month. However, the money is automatically reinvested back into the property until the end of the five-year investment period.

Turning a Profit

DiversyFund sells the property and distributes profits to the original investors. At that point, you can withdraw your funds or allow your investment to stay with DiversyFund for another property.

Best for Seasoned Investors

Investing in real estate through a REIT may not be for you if:

• You’re new to investing
• You’re looking to make money fast
• You can’t commit long term

As an investor, you understand that you are taking a risk with your money. Experts believe that REITs can be less stable than more traditional stock market investing. While REITs are a great way to diversify your investment portfolio, don’t put all of your money in real estate, as the market is prone to volatility and diversifying your portfolio is the only way to protect against that volatility.

DiversyFund Features

When you’re ready to invest, the DiversyFund site walks you through a questionnaire that helps recommend the best investment options for your particular situation.

Investing Goals

First, the site asks about your reason for investing. Answers include:

• Desire to invest in real estate
• Wanting to diversify your portfolio
• Saving for retirement
• Not sure

After selecting your choice, you provide your email address and create a password to create an account.

Learning Center

DiversyFund offers a blog microsite with topics from investment basics for beginners to more advanced topics for seasoned investors.

Transparency

It’s important to invest in a REIT that is registered with the U.S. Securities and Exchanges Commission, or SEC. Since DiversyFund is registered with the SEC, you can access annual audits and all of DiversyFund’s filings with the SEC any time.

Alternative Real Estate Investment Options

If you’re interested in comparing real estate investment options, take a look at DiversyFund’s top three competitors to see how they stack up:

Is DiversyFund Right for You?

If you’re interested in a passive investment option, DiversyFund may be right for you. However, you have to be open to accepting some risk since your investment return is tied to the overall performance of the real estate market.

About the Author

Katy Hebebrand

Katy Hebebrand is a freelance writer with eight years of experience in the financial industry. She earned her BA from the University of West Florida and her MA from Full Sail University. Since beginning to work full-time as a freelance writer three years ago, she has written on topics spanning many fields, including home building, families and parenting, legal and professional/corporate communications.