Feb
28

How to Take Advantage of Real Estate Crowdfunding Trends in 2017

Forbes just released the top 3 real estate crowdfunding trends in 2017. Institutional Capital Non-Accredited Investors & eREIT Consolidation According to Forbes,  “Real estate crowdfunding continues to be a dynamic and ever-evolving industry, growing to an estimated $3.5 billion in 2016. By 2025, the crowdfunding industry as a whole is anticipated to be valued at more than $300 billion and online real estate marketplaces are primed to capitalize on that explosive growth.” With massive growth projected in the next 10 years, how can you take advantage of the real estate crowdfunding trends that lie in the year ahead? Invest in real estate crowdfunding platforms before they take on institutional capital. Many veteran platforms will begin sourcing from large institutions to back up their smaller investments. This may limit the opportunity for individual investors to invest in future projects. Find platforms that still cater to individual investors to invest in projects […]

Feb
09

Fundrise IPO Over-Subscribed | Crowdfunding Real Estate Hits New Highs

Top platforms make headlines fast as crowdfunding real estate investment platforms quickly take off. From low investment fees to the new Fundrise self crowdfunding IPO, real estate crowdfunding platforms want you to know something. Investing in real estate is actually really simple. Crowdfunding real estate platforms aren’t the only ones making waves in the real estate community either. Renowned wellness guru, Deepak Chopra announced his new wellness-centric homes near Miami, Florida recently. Expected to gain popularity quickly, these homes could become available as crowdfunding investment opportunities as demand grows. Fundrise IPO Interest Continues to Grow The real estate community rapidly adapts to new trends and the needs of millennial investors as interest in real estate investing grows. Clearly shown in the recent announcement regarding Fundrise’s self-crowdfunding Reg A+ IPO becoming over-subscribed. Their Class B Common Stock originally meant for 2 million investors is now at 3 million investors. Even more so, the interest continues to grow rapidly. Fundrise sets out to raise […]

Nov
14

How to Invest in the Hottest Real Estate Markets from Your Home

Investing in the hottest real estate markets is one of the many ways to diversify your portfolio. Traditionally, you would have to find local properties to invest in. Otherwise, you needed to have connections in the real estate market, so you could expand your horizons. However, DiversyFund is disrupting the real estate investment market by making it easy for nearly anyone to invest on real estate. With our online portal, members can access the hottest real estate markets available in the country. Even if you are new to real estate investing, our crowdfunding platform makes it easy to discover, analyze and invest in the properties that interest you. Finding The Hottest Real Estate Markets Southern California continues to be one of the hottest real estate markets in the country. According to Realtor.com, San Diego is the third hottest market available. However, until recently, you needed to be living in Southern California to invest in these properties. […]

Nov
06

Investors: To Diversify or Not to Diversify?

Why is the option to diversify in Real Estate so attractive? Since the passing of JOBS (Jumpstart our Business Startups) Act in 2013, Real Estate Crowdfunding has shook-up the real estate industry. Nowadays, anyone can invest in real estate and has the ability to do so online. After we learned some of the most disrupting factors in the way people invest in real estate, a big change had to happen. Transparent ways of investing are now available to everyone. The option to diversify is becoming more attractive to all investors since it lowers the risks and increases chances of success. What is new? In an industry previously transacted entirely offline, it is expected that many investors refuse to change their ways. As the saying goes, “If it ain’t broke, don’t fix it.” Although it may not be necessarily “broken,” something needed to change. The accessibility to investments, the ability to streamline […]

Mar
16

The Advantages of Working with Accredited Investor Crowdfunding Sites

For centuries, real estate has been one of the best ways to create and preserve wealth. And before real estate crowdfunding was an option, real estate investment trusts (REITs) were the only way to enter market. But thanks to crowdfunding, what was once an exclusive club is now accessible to anyone. Requiring smaller amounts of capital, producing more options and allowing for direct access, crowdfunded real estate investment appeals to a wide audience. Still, you may wonder what the advantages are of working with accredited investor crowdfunding sites. The truth is, there are many. Crowdfunding is revolutionizing the way we can invest in real estate in very meaningful ways. Direct investment Unlike investing with REITs, crowdfunding is a direct property investment. One of the biggest advantages of crowdfunded real estate investment is that investors can directly contribute their money to the project of their choice. There’s no need to hire […]

Sep
01

Data and Technology – Drivers to Successful Real Estate Investing

Step aside retail investors, there is a new player in the real estate investing town – Big Data. Prior to the tech bubble, it was difficult to find or gain access to information regarding real estate. Unless it was a full-time gig, you needed relationships to gain access to real estate investment opportunities. Even with that information alone, you still needed to drive the property to see if an investment made sense. Completing a comparative analysis of properties a-like was the most effective way for retail investors to make a decision. Post tech bubble; however, this process became rare. During the post-tech bubble in the early 2000’s, revolutionary technologies, such as Google Maps, Redfin, Zillow, and Walk Score, appeared in the world. This became the first major step in shifting the way we invest in real estate. These technologies provided, nearly, instant gratification when seeking answers to questions involving real estate. Faster than […]

Jul
21

DiversyFund Provides Debt / Equity Financing on Point Loma Remodel

Wow! One of DiversyFund’s repeat clients recently completed a stunning Point Loma remodel in San Diego, CA. DiversyFund provided the Debt and Equity financing for the property located at 3221 Byron Street San Diego CA 92106. With the financing covering the purchase, rehabilitation, and resell. As of right now, the stunning property is currently listed at $1,379,000-$1,479,000. It is a 4 bed / 3.5 bath 2,650 SF home. Even more so, you will enjoy endless ocean views and a mid-century feel within the home. One of it’s perks is the large dual master suite downstairs. Since this suite can also be used as a 2nd unit, one can produce extra income. Not only did the Operator do a spectacular job on the renovation, their turn around time was actually 2 months faster than expected. DiversyFund and the investors yielded 12% on the Debt Product and upwards of 40% on the Equity product when the property sold. […]

Apr
29

Institutional Investors are Driving Down Rates in the Real Estate Industry

Colony Capital, BlackRock, Fortress, Apollo are just a few of the many institutional investors that are capitalizing on today’s real estate investment opportunities. As a result, these large corporations have driven down industry rates. Thus, making the real estate space even more competitive. As Craig Cecilio, Founder of DiversyFund says, “It’s was inevitable that this was going to happen during a great market.” And, goes on to say, “I predicted this was going to happen back in 2011 as the market started to heat up again. In coming years, we will continue to see the cost of capital become more and more competitive.” The Institutional Investor Shift If we are comparing 2007-2008 to today, the market is quite different, in a good way. There’s not one singular way to structure a real estate debt and equity investment anymore. “We are continuing to create new equity products every day,” mentioned Craig Cecilio. “Creativity is […]

Jan
20

Compounding Returns Lead to an Earlier Retirement

If you start early enough, compounding returns can lead to a significantly earlier retirement. How It Works For example, assume that you put $5,000 aside in a note that’s 12 months gaining a 12% return. At the end of that 12 month period, you will make $600. Instead of paying out that dividend, now invests $5,600 aside in another note yielding 12%. Now you’ve made $672 in addition to the $600 you made just a year ago.   Savings: $5,000 Interest Rate: 12.00%     Year 1   Year 5  Year 10  Year 15   Year 20 Capital Gains (Yr 20) COMPOUNDED $ 5,600.00 $ 8,811.71 $ 15,529.24 $ 27,367.83 $ 48,231.47 $43,231.47 PAID OUT DIVIDENDS $5,600.00 $5,600.00 $5,600.00 $5,600.00 $5,600.00 $12,000.00   Benefits of Compounded Interest It’s powerful seeing the difference of compounded interest versus re-investing your initial investment. Moreover, the two options illustrated above are small samples of what you can accomplish. […]

Jan
13

How to Take a Good Portfolio and Make it Great

It is common knowledge that one’s diversification strategy is essential in order to manage risk while still yielding a high return on investment. Therefore, if you have too many, or too much allocated to a certain asset class within your portfolio, you’ve most likely already heard or considered that it may be time to expand your investment scope. So, how do you take a good portfolio and make it a great portfolio? Diversification. Let’s assume you are a sophisticated investor, and trading stocks, bonds, and commodities is your niche. Depending on the size of your current portfolio, adding a relative amount of illiquid investments can spread risk and leverage your portfolio. Diversifying your portfolio by adding illiquid assets provide multiple proven benefits to keep hungry investors coming back. Strategically allocating through liquidity Those who seek long-term investment goals, through the use of illiquid assets, will not be subject to potential short-term market volatility. […]