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 […]

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 […]

Aug
04

The Reason Why Debt-Based Only Real Estate Crowdfunding Platforms May Become Obsolete

Although it has been a few short years since the birth of real estate crowdfunding, it’s aggressive growth shows us that these debt-based only real estate crowdfunding platforms may need to depend on equity-based crowdfunding platforms sooner than later. The reason lies in the supply and demand of the industry. DiveryFund’s Approach Versus Debt-Based Real Estate Crowdfunding Platforms At DiversyFund, we are already seeing institutional investors compete with retail investors for debt-based real estate crowdfunding investments that we’re originating. As a result, the competition has actually driven down our debt-based interest rates significantly. Our robust pipeline allows us to create different products to produce 12-20% returns to our retail investors. This is all done through mezzanine and equity-based investments. In some cases, DiversyFund will do capital stacks for Operators. Capital stacks include a combination of debt, mezzanine, and/or equity. Not only are institutional investors receiving their preferred yield, retail investors are […]

Jul
27

Mavrix Group Partners with Karim Rashid and DiversyFund

DiversyFund joins forces with Karim Rashid and Mavrix Group to finance and develop a stunning home in the desirable community of La Jolla, California. Karim Rashid, an established designer with over 32 years of experience, will take an existing home that was under partial construction and redesign the home’s interior structure. Karim plans to incorporate California’s natural surroundings to evoke fluidity of the neighborhoods contemporary design. One of the main reasons Erin Wicomb, Founder of Mavrix Group, brought Karim on was to have the designer incorporate his own personal flare to make the property truly one of a kind. Located at 7930 Costebelle Way, La Jolla, CA 92037, the home’s structural shell has about 6,000 SF of living space alone and that might seem secondary to the spectacular 180 degree ocean views. DiversyFund’s platform raised $1 million dollars to crowdfund the property’s construction. Craig Cecilio, Founder and CEO of DiversyFund, and […]

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. […]

Mar
24

What are the different types of CrowdFunding?

What are the different types of CrowdFunding? In order to start investing through Crowdfunding platforms, let us go over the four different types of CrowdFunding: Donation CrowdFunding Giving, for nothing in return. This is exactly what it sounds like. A donor’s contributions go towards some type of charitable cause that they would like to support. There are no monetary returns in this type of CrowdFunding. Hence, a donor’s reward is the feeling you get from doing something good and maybe a tax write-off. Donation CrowdFunding is popular for social causes, charities, individuals, non-profits, and political campaigns. Rewards CrowdFunding A donation gets you something promised in advance. Contributions to a Rewards-based CrowdFunding campaign get something tangible in return. Reward CrowdFunding is similar to Donation CrowdFunding, however, people receive a reward in return for their contribution. The rewards investors receive are non-monetary and usually include an opportunity to pre-order the product that’s being […]

Mar
17

Title III of the JOBS Act Creates Freedom for the Average Investor

There are many ways in which Title III of the JOBS Act creates freedom for investors. Through changes in the market, added liquidity, and behavioral transformations, the average investor has the opportunity to invest in any real estate investment. A firm’s involvement can also provide a new level of flexibility and liquidity. This will have a major impact in the market. Thus, creating an opportunity for an entirely new market of buying and selling partial ownership of real estate. Market Shift: Cause & Effect Crowdfunding has established itself and many argue it will further establish itself as the new standard. This is especially true for early startups and financing for businesses. Some estimates give Crowdfunding a potential valuation of $300 Billion of market capital. This capital influx could create major implications for the real estate industry. It will create a new investor class (unaccredited investors will begin to shift away from […]

Mar
10

DiversyFund’s Real Estate Investment Criteria

What Criteria Does DiversyFund Look For When Posting Real Estate Investment Projects? Although learning about crowdfunding investments in real estate is our main goal, we don’t choose every project. We have very specific criteria on how we pick our investment properties. DiversyFund evaluates deals on a case-by-case basis. In addition, depending on the frequency of repeat business, terms are in most cases negotiable. There are four initial factors that we address when reviewing purchase and refinance real estate investment projects: Volume & Recency Their track record of how much volume and how recent the investments they’ve managed helps to understand their deal flow and market knowledge. Time & Quality Effectiveness Turnaround time is imperative to return on investment. The longer the investment is held, the higher the holding costs. However, if there is too much of a rush to flip the project, quality suffers. Financing History Prior financing history will […]

Mar
03

Is Compliance Irrelevant if the Real Estate Deal Isn’t Good?

So, you’re wondering if compliance is totally irrelevant if the real estate deal is no good. Well, it long story short, not necessarily. For investment firms, this can only be true if there’s an assumption that regulatory paperwork, processing, and reporting is compliant. That being said, compliance is what makes a company sustainably viable as well as trust worthy. There is no discounting it. However, compliance can help protect the investor, to a certain degree, if a deal goes sour. How do you know if the Real Estate Deal is good? Product and Market Knowledge can, naturally, give you the confidence and understanding of where to look. Even more so, it can show you what key factors make a good investment from any real estate deal you vet. As long as you know where to look, you can make informed decisions based on whether the investment aligns with your portfolio and […]

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. […]