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April 10, 2020

The Crisis Code

By Craig X. Cecilio

If you are like most Americans, you probably feel that the world is way off balance. While doctors race for a cure and politicians jockey for position, you’re trapped helpless at home. What does that mean for our future? Like all seasons of life, this pandemic recession will pass. We will adapt and evolve.

Until then, we are learning great lessons about ourselves. We are witnessing how we cope with adversity, how others around us cope, and how our communities and country will lead us out of this.

In times like this, I look back at other significant historical events to see what I can learn from them. I use them as a guide or as a frame of reference to help me think clearly and plan my next steps.

Let’s go back and look how we emerged after the Spanish Flu of 1918. A few years later we entered the roaring twenties! Fast forward to 9/11/01. The skies fell silent and the world stood still on that fateful day. Eventually, however, we bounced back.

Look at what caused past recessions and the effects they had on people, families, and businesses. The vast majority of them weathered the storm. Communities and humanity at large are a strong bunch collectively. People have come out of trying times, stronger and more caring.

Businesses are much the same way. You’ll find companies that not only survived but came out skyrocketing because they met a new demand and attained a huge market share. This is Amazon’s story, right after the dotcom crash in 2001.

I call this the Crisis Code. When trouble finds us, and it will, we must flip the script. We must write our own ending. What will your story be? Will you curl up into the fetal position? I encourage you to take this opportunity to shine.

Let me tell you a dirty little secret. What most Americans don’t know is that the wealthiest 1% grow even richer during economic downtimes. Why? They buy at discounts. You see, recessions give them the opportunity to buy alternative investments at temporarily reduced prices. These alternative investments include cashflow positive, tangible assets such as multifamily properties (like apartment complexes). While most Americans are panicking, the wealthy swoop in and buy up even more at even cheaper prices.

Alternative investments can be very lucrative and offer returns significantly higher than stocks or bonds. Average 20-year REIT returns are at 9.9% while the S&P 500 sits at 5.6%.

Historically, this kind of investing was only available to ultra-high net worth individuals. Until the JOBS Act was passed eight years ago, investing in alternative investments was reserved for Venture Capitalists, Hedge Funds, and Accredited Investors. The JumpStart Our Business Startups, or JOBS Act, reduced those limitations, opening them up to the everyday investor.

This is precisely why I cofounded DiversyFund in 2016 and created The DiversyFund Growth REIT. We are making formerly off-limit investments available to everyday investors just like you. You can get started today using our convenient, easy-to-use investment platform for as little as $500. Take it one step further, investing $500 per month, you will build wealth on an exponential level.

So, don’t panic. Don’t live in fear. Rather, take control of your financial future. Your future self will thank you. And remember, this too shall pass.

Craig X. Cecilio is the co-founder and CEO of DiversyFund

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