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 […]

Dec
23

Due Diligence, Your Best Frenemy

Due diligence is the defining factor that could make or break your credibility as an investment firm; and yet it’s one of the hardest aspects of real estate investing. “Out of 100 deals that come in the door, the underwriting team approves less than 5%,” states Craig Cecilio, Founder of DiversyFund.  “Although our jobs as asset managers is to ensure investors yield compounded returns by getting their money working all the time, our number one priority is to conduct a rigorous process and in some ways marry the deal to really understand it’s true purpose.” The Catch 22 For investors, the due diligence process is incredibly timely; so much so, that there’s a chance that they can miss a potentially great deal all together. In most cases, investors who need about a week to do their own due diligence will not be able to invest by the close date. For those looking […]