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DiversyFund review: Invest in real estate with as little as $500

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DiversyFund offers automated real estate investing for those with at least $500.

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Table of Contents: Masthead Sticky

Overall rating

Feature Insider rating (out of 5)
Fees 5.00
Investment selection 3.00
Platform navigability 5.00
Customer service 4.00
Trustworthiness 5.00
Educational resources/research 3.75
Overall score 4.29

Is DiversyFund right for you?

DiversyFund Logo
Editor’s rating 4.29 out of 5
Fees 0%
Account minimum $500
Promotion None at this time.
DiversyFund

Launched in 2014, DiversyFund is an online real estate investing platform offering private commercial real estate investments to nonaccredited investors (or people with less than $1 million to invest). While some platforms let you trade on your own, DiversyFund is completely automated.

The company says it aims to serve everyday investors who don’t have millions of dollars to invest but want to build wealth in meaningful ways.

DiversyFund also strives to maximize investment returns by requiring each investor to stick to a minimum term of five-years. Once you set up your account, you won’t be able to make early withdrawals, so be prepared to let your money sit for at least five years.

DiversyFund is available on iOS and Android devices.

DiversyFund pros DiversyFund cons
  • $500 minimum investment
  • No management fees
  • Automated real-estate investment management
  • Available to non-accredited investors
  • Limited investment selection; only offers one REITs with assets in three states
  • Must hold investments for at least five years
  • No IRAs
  • Can’t withdraw your investments’ earnings until the real estate assets, or properties, are sold

Not sure if DiversyFund is right for you? Keep reading to see how it stacks up against similar investment platforms.

How does DiversyFund compare?

DiversyFund Logo

Fundrise

YSLogo

Min. Investment

$500

Min. Investment

$500

Min. Investment

$5,000 – $10,000

Fees

0%

Fees

1% (additional $125 for IRAs)

Fees

1% to 2% for Prism Fund; other investments start at 0%

Investment choices

Real estate investment trusts (REITs)

Investment choices

Electronic real estate investment trusts (REITs), electronic real estate funds, and Fundrise IPOs

Investment choices

Multi-asset class funds, alternative investments, and short-term notes

DiversyFund Fundrise Yieldstreet

Like DiversyFund, Fundrise offers real estate investments both for accredited and non-accredited investors. While both real estate platforms have $500 minimums, they differ when it comes to fees and investment options.

You can only invest in REITs with DiversyFund, but Fundrise’s investment options also include electronic real estate funds, Fundrise IPOs, and self-directed IRAs. Yieldstreet, on the other hand, offers mult-asset class funds, alternative investments, and short-term notes.

If you’re set on REIT-focused automated investment management, though, keep reading to see if DiversyFund is right for you.

Ways to invest with DiversyFund

Automated investment accounts

DiversyFund is best for passive investors looking to get into the private commercial real estate market without paying high account minimums or management fees. The company primarily offers its own real estate investment trust (REIT), and it makes these available to everyone, not just accredited investors (individuals who have a net worth of at least $1 million or annual income of $200,000).

A REIT is a company that owns and manages income-generating real estate assets. In other words, when you invest in REITs, you’re investing in multiple real estate projects.

In some cases, REITs own different types of real estate assets like hotels, rental units, or retail centers. However, DiversyFund’s Growth REIT mainly owns multifamily properties. This means that your $500 deposit grants you access to all of the real estate projects, or multifamily properties, that DiversyFund currently owns.

Since it owns all of the real estate assets it offers, DiversyFund manages each real estate project from start to finish and profits off of those projects alongside you. Plus, it says it offers each investor 7% preferred return. This means that the company doesn’t profit off of real estate projects until investors receive 100% of returns up to the first 7%.

And although you’ll need $500 to get started, DiversyFund’s investment minimum is relatively low compared to other real estate apps like CrowdStreet ($25,000) and Yieldstreet ($1,000 to $10,000).

Keep in mind, though, that since DiversyFund’s Growth REIT is a public, non-traded real estate investment, you won’t be able to withdraw your investments’ earnings until the real estate assets, or properties, are sold. This is because the company reinvests dividends and earnings until it sells the real estate assets.

DiversyFund currently owns properties in California, North Carolina, and Texas.

Educational resources

DiversyFund also offers a learning center that contains a variety of educational blogs on investing, business, news, personal finance topics, and more. The platform currently provides posts on the following:

You can also sign up to receive investment updates and articles by email.

Is DiversyFund trustworthy?

DiversyFund currently has an A+ rating with the Better Business Bureau. This is the highest rating a company can receive, and it generally suggests that it excels in its business practices and customer interaction.

The BBB considers several factors when assigning ratings to companies. These include the company’s complaint history, type of business, time in business, licensing and government actions, advertising issues, and more.

DiversyFund’s record is clean of any major lawsuits. The company has closed seven complaints in the last three years.

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