Mar
09

Investment Project Update: Coronado, CA – March 2017

The following is an Investment Project Update for all current and future investors of our Balboa Avenue, Coronado, California property. March 2017 Diversyfund knows how important it is to have the perfect location for your real estate investment. The Coronado property is no exception to this rule. Being walking distance from the beach and only a few steps away from the amazing Sea ‘N Air Golf club, this is an opportunity you can’t miss. Clearing As you can see, we cleared away the trees from our building site. We are doing the necessary rough grading, and we are staking the house location in preparation for installation of the footings, foundation, and pipes. Excavation Moreover, we started the excavation process to install all the proper equipment underground. Erosion control Finally, we are taking all the proper precautions to prevent the runoff from your cleared land from carrying mud to adjacent roads and property. […]

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 […]

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 […]

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 […]

Feb
24

Visionaries in Real Estate Crowdfunding

Fueled by cutting-edge innovation, Real Estate Crowdfunding continues to solidify its presence in the Financial Sector. What’s demonstrated, across leading crowdfunding platforms in just over a year, shows that current thought leaders are beginning to pave way for a cultural shift in the way we invest. The current happenings of the industry are somewhat comparable to what happened when society transformed in how we deliver messages and packages. More specifically, how the Pony Express become today’s FedEx/UPS. At one point in time the Pony Express was considered cutting-edge. And, as such, business owners utilized the Pony Express to save money and improve their bottom line. Similarly, crowdfunding is no different. Business owners are leveraging this platform to cut expenses. Due to this, crowdfunding is working towards creating a better process in operations and is a way expand your customer base. Existing investors are being used for market research. Remain the […]

Apr
07

An Interesting Acknowledgement By Federal Reserve Governor, Jeremy C. Stein

The fact of the matter is that the fundamentals of “crowdfunding” are not new. In fact, the practice has been around for decades. That said, the recent rise of real estate crowdfunding platforms has generated equally strong opinions by supporters and critics. Jeremy C. Stein, the Federal Reserve Governor recently addressed the topic during a speech in Washington, D.C. We find Mr. Stein’s thoughts to be interesting and worthy of sharing with our community. Here’s the speech in its entirety: Acknowledged by Governor Jeremy C. Stein At the Crowdfunding for Community Development Finance Conference, Washington, D.C. Good morning. Let me start by welcoming everyone to the Federal Reserve. Today’s topic of crowdfunding for community development finance is an important and topical one. And, I want to thank you all for helping us think through the challenges and opportunities presented by this new technology. Especially, as it relates to raising funds for […]